| 19.1 Basis of Preparation of standalone financial statements.
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principles ["GAAP"] in India. GAAP comprises mandatory
accounting standards as prescribed under section 133 of Companies Act,
2013 (the Act) read with Rule 7 of Companies (Accounts) Rules,2014, the
provisions of the Act (to the extent notified). Accounting policies
have been consistently applied except where a newly-issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
19.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
19.3 Revenue Recognitions
Revenue in respect of finished goods is recognised on delivery during
the accounting year.
19.4 Employee Benefits:
All Employees benefits falling due wholly within twelve month of
rendering the services are classified as short term employee benefits
which include benefits like salary, wages, short term compensated,
absences and performance incentives and are recognised as expense in
the period in which the employee renders the related services.
19.5 Material events after balance sheet date.
Events which are of material nature after the balance sheet date are
accounted for in the accounts.
19.6 Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
The Company creates a provision when there is a present obligation as a
result of past event that probably requires and outflows of resources
and a reliable estimate can be made of the amount of obligation. A
disclosure of contigent liability is made when there is possible
obligation or a present obligation that will probably not require
outflow of resources or where a reliable estimate of obligation cannot
be made.
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