| a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
(i) The financial statements have been prepared under the historical
cost convention using the accrual basis of accounting and comply with
all the mandatory Accounting Standards as specified in the Companies
(Accounting Standard) Rules 2006, the provisions of Companies Act 2013
(to the extent notified) and relevant provisions of the Companies Act,
1956, as adopted consistently by the Company.
(ii) USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Standards requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and the disclosures of Contingent Liabilities on the date of financial
statements, and the reported amounts of revenues and expenses during
the reporting period.
b) Fixed Assets
Fixed Assets are stated at cost of acquisition including any
attributable cost for bringing the assets to its working condition for
its intended use, less accumulated depreciation.
c) Depreciation
i) Depreciation on Fixed Assets is provided on Written Down Value
method at rates specified in the Schedule- XIV of the Companies
Act,1956.
ii) Depreciation on addition to Fixed Assets is being provided on
pro-rata basis from the date of acquisition.
d) Revenue Recognition
The Sales are recorded when supply of goods take place in accordance
with the terms of sales and on change of title in the goods and is
inclusive of sales tax.
e) Borrowing Cost
The borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as a part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
f) Taxes on Income Current Tax
Provision for taxation is made in accordance with the income tax laws
prevailing for the relevant assessment year.
Deferred Tax
Deferred tax resulting from "timing difference" between books and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the balance sheet date. The
deferred tax asset is recognized and carried forward only to the extent
that there is reasonable certainty that the asset will be realized in
future.
g) Impairment
An asset is treated as impaired when the carrying cost of assets
exceeds its realizable value. An impairment loss is charged to the
profit & loss account when the asset is identified as impaired.
h) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
i) EARNING PER SHARE
The Company reports basic and diluted Earnings per share(EPS) in
accordance with Accounting Standard 20 as specified in Companies
(Accounting Standard) Rules, 2006 (as amended). Earning Per Share is
calculated using weighted average number of equity shares outstanding
during the year. Basic and Diluted Earning per share is same.
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