1 Basis of accounting:-
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles
in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis.
2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates
are based on the management's best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future periods.
3 Revenue Recognition
Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.
4 Property, Plant & Equipment
Property, Plant & Equipment including intangible assets are stated at their original cost of acquisition including
taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less
depreciation till date. Company has adopted cost model for all class of items of Property Plant and Equipment.
5 Depreciation
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV)
Method/SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedule Il to
the Companies Act, 2013. Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis
to the statement of profit and loss till the date of acquisition/sale.
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of money and risks specific to the
asset.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful
life.
6 Foreign currency Transaction
Transactions arising in foreign currencies during the year are converted at the rates closely approximating the
rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end
exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the
statement of profit and loss.
7 Investments
Investments, which are readily realizable and intended to be held for not more than one year. From the date on
which such investments are made, are classified as current investments. All other investments are classified as
non-current investments. Current investments are carried in the financial statements at lower of cost and fair
value determined on an individual investment basis. Long-term investments are carried at cost. However,
provision for diminutions in value is made to recognize a decline other than temporary in the value of the
investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
8 Inventories
Inventories are valued as under:-
1 Inventories : Lower of cost(FIFO/specific cost/Weighted avg) or net realizable value.
2 Scrap : At net realizable value
9 Borrowing cost
Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as
part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of time to get
ready for its intended uses or sale. All other borrowing costs are charged to revenue in the year of incurrence.
10 Retirement Benefits
The retirement benefits are accounted for as and when liability becomes due for payment.
11 Taxes on Income
Provision for current tax is made on the basis of estimated taxable income for the current accounting year in
accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax
profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the
balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual
certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying
amount of deferred tax is reviewed to reassure realization.
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