NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under
the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied
by the Company.
(b) The financial statements are prepared to comply in all material respects with the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Companies Act, 2013.
(c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of
assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Differences between the actual results and estimates are recognized in the period in which the results are
known / materialize.
1.2 Revenue Recognition
(a) The company generally follows the mercantile system of accounting and recognizes Income & Expenditure on accrual basis.
(b) Sales are recognized on accrual basis, and only after transfer of goods or services to the customer, Sales are recognized at the
time of passage of the title that generally coincides with their delivery. Sales are net of GST and Trade discounts.
(c) Dividend on Investments are recognized on receipt basis.
(d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
1.3 Property, Plant & Equipment and Intangible Assets & Depreciation
(a) Fixed Assets are stated at Cost less accumulated depreciation. The Company has capitalized all cost relating to the acquisition
and installation of Fixed Assets.
(b) Depreciation is provided on Fixed Assets on Written down value Method on the basis of Useful Life as prescribed under Part
C of Schedule - II of the Companies Act, 2013.
(c) Cost of the fixed assets not ready for their intended use at the Balance Sheet date together with all related expenses are shown
as Capital Work-in-Progress.
1.4 Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the higher of the asset's net selling price and value in use, which is determined by the present
value of the estimated future cash flows.
1.5 Investments
Investments classified as long-term investments are stated at cost. Provision is made to recognize any diminution other than
temporary in the value of such investments. Current investments are carried at lower of cost and fair value.
1.6 Inventories
Inventories consisting of Traded goods and are valued at lower of cost and net realizable value in accordance with Accounting
_Standard- 2._
1.7 Employee Benefits
(a) Defined Contribution Plan:
Provision for leave encashment is made on cash basis.
1.8 Borrowing Costs
(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset
is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its
intended use.
(b) Other Borrowing costs are recognized as expense in the period in which they are incurred.
1.9 Taxes on Income
Tax expense comprises of current tax and deferred tax.
Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the
applicable tax rates and tax laws.
Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is
recognized, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the
extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.
1.10 Earnings per Share (EPS)
(a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
(b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.
1.11 Prior Period Items
Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the financial affairs of the
Company are disclosed in financial statements.
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