23 SIGNIFICANT ACCOUNTING POLICIES
1 IND AS 1 PRESENTATION OF FINANCIAL STATEMENTS : These financial statements have
been prepared under historical cost convention from books of accounts maintained on an
accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles
generally accepted in India and comply with the Accounting Standards issued by the Institute
of Chartered Accountants of India and referred to Section 133 read with Rule 7 of the
Companies (Accounts) rules, 2014 except as required by IND AS 19 - Employee benefits. The
accounting policies applied by the company are consistent with those used in previous year.
The preparation of financial statements in conformity with GAAP requires that the
management of the company makes estimates and assumptions that affect the reported
amounts of income and expenses of the period, the reported balances of assets and liabilities
and the disclosure relating to contingent liabilities as of the date of the financial statements.
All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle as arrived at by management, and other criteria set out in the revised
Schedule III Division II to the Companies Act, 2013, based on the nature of products and the
time between the acquisition of assets for processing and their realization in cash and cash
equivalents. The comparative figures in the Balance Sheet as at March 31, 2025 and March
31, 2024 and Statement of profit and loss and Cash Flow Statement for the year ended
March 31, 2025 have been restated accordingly. Accounting Policies have been
consistentlyapplied except where newly issued accounting standards is intitialy adopted or
revision to existing standards required a change in the accounting policy thereto in use.
Management evaluates all recently issued or revised accoutning standards on and on-going
basis.
IND AS 16 PROPERTY , PLANT and EQUIPMENT : Fixed Assets are stated at historical cost
less accumulated depreciation and impairment losses, such cost being exclusive of excise
duty/GST. The cost of an asset comprises its purchase price and directly attributable cost of
bringing the assets to working condition for its intended use. Expenditure for additions and
improvements are capitalized as and when incurred.
2 DEPRECIATION : Depreciation for the year on all assets is provided for on written down
value method. (i) On caryying amount of fixed Asset brought forward from earlier year, at
the rates derived from estimates of useful lives made by management as mentioned in
following table, (ii) on Fixed assets added during the year, at the rates derived from useful
lives stated in schedule II to Companies Act, 2013.During the year under reference company
has not provided depreciation on clean room plant amounting to 36,73,771 and on Effluent
treatment plant amounting to 1,32,769 considering non usage of these assets.
3 Initial Recognition and Measurement: Financial Liabilities are intially recognized at fair
value plus any transaction costs, (if any) which are attributable to acquisition of the financial
liabilities.
4 CURRENT/ NON CURRENT CLASSIFICATION :
An asset is classified as current if:
(a) It is expected to be realized or sold or consumed in the Company's normal operating
cycle;
(b) It is held primarily for the purpose of trading;
(c) It is expected to be realized within twelve months after the reporting period; or
(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period.
All other assets are classified as non current.
A liability classified as current if :
(a) It is expected to be settled in normal operating cycle;
(b) It is held primarily for the purpose of trading
(c) It is expected to be settled within twelve months after the reporting period
(d) it has no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non current.
5 SHARE CAPITAL: Ordinary Shares are classified as equity. Incremental costs directly
attributable to the issue of new Ordinary shares or share options are recognized as a
deduction from equity, net of any tax effects.
6 INVESTMENTS :
Long term Investments are stated at cost. Provision for diminution in the value if long
term investment is made only when such decline is not temporary
The Company has invested sum of Rs. 40 Lakhs during the year with Aditya Birla Sun Life Mutual
Fund. Investment is in the name of Managing Director Umang A. Gosalia which is nominated to
Namrata U. Gosalia is in contravene of section 187(1) of The Companies Act, 2013.
7 IND AS 18 REVENUE : Revenue is recognised only when it is probable that the economic
benefits associated with the transaction will flow to the entity. Sales are exclusively of
VAT, Exsice Duty and Serive Tax and GST.
8 PURCHASE : Purchase of Raw Material where Cenvat credit, VAT credit and GST Credit is
available are exclusive of Excise duty,VAT,and GST
9 IND AS 2 INVENTORIES : The cost of inventories shall comprise all costs of purchase,
costs of conversion and other costs incurred in bringing the inventories to their present
location and condition. Inventories should have been Valued as below :
10 Raw Materal & Stores : Lower of Cost or Net Realisable Value
Semi Finished Goods/WIP Stock : At RM Cost Conversion Cost
Finished Goods : Lower of Cost or Net Realisable Value
Company has maintained WIP stock records at Raw Material Cost however Conversion Cost
as per Ind AS-2 Inventories has not been maintained/made available by company to verify
and quantify VALUE OF W I P Stocks and its impact on true and correctness of Financial
Statements prepared in accordance with Indian Accounting Standards, prescribed under
Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and
other accounting principles generally accepted in India.
11 IND AS 12 INCOME TAX: Current year tax is provided based on the taxable income
computed in accordance with the Income Tax Act 1961
12 Deferred Tax is recognized, subject to consideration of prudence, on timing differences,
representing the difference between the taxable income/loss and accounting
income/loss that originated in one period and are capable of reversal in one or more
subsequent periods. Deferred Tax assets and liabilities are measured using tax rules
and tax laws that have been enacted or substantively enacted by the Balance Sheet
date. Deferred tax assets Viz. unabsorbed depreciation and carry forward losses are
recognised if there is virtual certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
In accordance with IND AS 12, " Income Tax ", issued by The Institute of Chartered
Accountants of India, the company has recognised deferred tax liabilities for the
current year. The company has started generating cash profits and based on the
future projections, the management is certain that the company shall be able to avail
setoff of the carried forward losses against taxable profits.
13 IND AS 19 EMPLOYMENT BENEFITS : Employees Benefits are accounted
on cash basis.
Though Accounting Standard IND AS 19 issued by the Institute of Chartered Accountants
of India is mandatory, the firm has not made Provision for Leave Encashment Benefit
and payment of gratuity on retirement of employee as the quantum of liability is not
ascertainable due to the availability of leave encashment benefit and availment of leave
any time during the service period.There were no share based payments made to any of
the employees.
15. IND AS 108 OPERATING SEGMENT : The company has only one principal place of business and
operates in only one type of business hence segment reporting is not made.
16 IND AS 20 ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURE OF GOVERNMENT
ASSISTANCE : The Govt. Grants subsidies or exort incentives received by the company are properly
accounted .
17 IND AS 23 BORROWING COST : Borrowing costs that are attributable to acquisition or
cunstruction of qualified as part of the cost such assets. A Qualifies asset is one that takes
substantial period of time to get ready for intended use. All other borrowing costs are charged
to revenue.
18 IND AS 17 LEASES : The company has not entered in to any lease transaction during the financial
year, hence the clause is not applicable.
19 IND AS 36 IMPAIRMENT OF ASSETS : The carrying values of assets/cash generating units at each
Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the
recoverable amount of such assets is estimated and impairment is recognised, if the carrying
amount of these assets exceeds their recoverable amount. The recoverable amount is the
greater of the net selling price and their value in use. Value in use is arrived at by discounting
the future cash flows to their present value based on an appropriate discount factor. When
there is indication that an impairment loss recognised for an asset in earlier accounting periods
no longer exists or may have decreased such reversal of impairment loss is recognised in the
Statement of Profit and Loss, except in case of revalued assets.
20 In opinion of management , there are no indication of impairment of assets as on 31.03.2025 so
no effect of impairment is required to be given in books of accounts.
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