1. SIGNIFICANT ACCOUNTING POLICIES
a) Method of Accounting
The Company maintains its accounts on mercantile basis. However, certain escalations and other claims which are not ascertainable/acknowledged by customers / suppliers are taken into account only on such acknowledgment by customers / suppliers.
b) Fixed Assets
Fixed Assets are stated at Historical Cost of Acquisition or Construction Cost less Depreciation. Attributable cost and expenses of bringing the assets to working condition for their intended use are capitalized.
c) Depreciation
Depreciation on Fixed Assets is provided on Straight Line Method at the rate and in the manner prescribed in Schedule II to the Companies Act.2013 with effect from 1, April, 2014.
d) Inventories
Inventories are valued as under :-
i) Raw material and other Inventories At Cost.
ii) Work in Process At Estimated Cost.
iii) Finished Goods At Cost or Market Value whichever is
lower.
iv) Scrap At Market Value.
e) Gratuity
The company has provided for Gratuity liability on estimated basis. No Actuarial Valuation has been made.
f) Income Recognition
i) Excise duty/Gst liability on manufactured goods lying in the factory premises in not provided for and is also not included in the valuation of stock.
g) Foreign Currencies
There has been no transaction in Foreign Exchange
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