1. Basis of preparation of Financial Statements:
These financial statements are prepared in accordance
with Indian Generally Accepted Accounting Principles
(GAAP) under the historical cost convention on the accrual
basis. GAAP comprises mandatory accounting standards
as prescribed under Section 133 of the Companies
Act, 2013 ('the Act') read with Rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act.
2. Use of Estimates:
The preparation of financial statement in conformity
with generally accepted accounting principles requires
management of the company to make estimates and
assumptions that affect the reported amount of assets
and liabilities and disclosure of contingent liabilities
at the date of financial statements and the reported
amount of revenues and expenses during the
reporting period. Difference between actual results
and estimates are recognized in the period in which
the results are known / materialized.
3. Accounting Convention:
The company follows the mercantile system of
accounting, recognizing income and expenditure on
accrual basis. The accounts are prepared on historical
cost basis and as a going concern. Accounting policies
not referred to specifically otherwise, are consistent
with the generally accepted accounting principles.
The accounting Policies adopted in the preparation
of the financial statements are consistent with those
followed in the previous year.
4. Property, Plant &Equipments :
Tangible Assets Property, Plants &Equipments are
stated at as per Cost Model. i.e., at cost less accumulated
depreciation and impairment, if any. Costs directly
attributable to acquisition are capitalized until the
property, plant and equipment are ready for use,
as intended by the management. Cost comprises
thepurchase price and any attributable cost of bringing
the asset to its working condition for its intendeduse.
Input tax credits of GST, Grants on capital goods are
accounted for by reducing the cost of CapitalGoods.
Plant and equipment are capitalized only when it is
probable that future economic benefits associatedwith
them will flow to the Company and the cost of the
expenditure can be measured reliably.Repairs and
Maintenance costs are recognized in the Statement of
Profit and Loss when they are incurred. When assets
are disposed or retired, their cost is removed from the
financial statements. The gain or loss arising on the
disposal or retirement of an asset is determined as the
difference between sales proceeds and the carrying
amount of the asset and is recognized in Statement of
Profit and Loss for the relevant financial year.
Repairs and Maintenance costs are recognised in the
Statement of Profit and Loss when they are incurred.
Intangible assets:
Intangible assets purchased are initially measured
at cost. The cost of an intangible asset compriseits
purchase price including any costs directly attributable
to making the asset ready for their intended use.
5. Depreciation :
Depreciation on property, plant and equipment,
tangible and intangible assets, has been provided
Under Written Down Value method over the useful
life of assets estimated by the management which
is inLine with the terms prescribed in Schedule II to
The Companies Act, 2013. Depreciation for assets
Purchased/sold during the period is proportionately
charged. Depreciation method, useful life &
residualValue are reviewed periodically
6. Revenue Recognition:
Revenue is recognized when it is earned and no
significant uncertainty exists as to its realization or
collection. Revenue on sale of product is recognized
on delivery of the product, when all significant
contractual obligations have been satisfied, the
property in goods is transferred for a price, significant
risk and reward of ownership have been transferred
and no effective ownership control is retained.
Interest income is recognized on time proportion
basis. Dividend Income is recognized on receipt basis.
7. Inventories:
Raw Materials have been valued at lower of cost
or net realizable value. Cost of Finished Goods and
semi-finished goods includes all Costs of Purchases,
Conversion Cost and other cost Incurred in bringing
the inventories to their present location and Condition.
The Net realizable value is estimated selling price in
theOrdinary course of business less the estimated
costs of Completion and estimated cost necessary to
make the finished goods/product ready for sale.
8. Borrowing Costs:
Borrowing costs directly attributable to the acquisition
and construction of qualifying assets are capitalized
as part of cost of such asset till such time the asset is
ready for its intended use. A qualifying asset is one
that requires substantial period of time to get ready
for its intended use. All other borrowing costs, if any,
are charged to Profit and Loss account as period cost.
9. Investments:
Non-Current Investments are stated at cost. Provision for
diminution in the value of non-current investments is
made, only if, in the opinion of the management, such a
decline is regarded as being other than temporary.
10. Retirement Benefits & Other Employee Benefits:
All short term employee benefits are accounted on
undiscounted basis during the accounting period based
on services rendered by employees. The Company's
contribution to Provident Fund is charged to the
Statement of Profit and Loss on accrual basis.
The Company's obligation is limited to the amount to
be contributed by it. The Liability in respect of gratuity is
recognized on the basis of actuarial valuation.
11. Cash and cash equivalent:
Cash and cash equivalents for the purpose of the cash
flow statements comprise cash at bank and in hand
and short term investments with an original maturity
of three month or less.
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