(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) Revenue is recognised to the extent that it is possible that, the
economic benefits will flow to the comp[ay and the revenue can be
reliably estimated and collectability is reasonably assured.
(c) Revenue from sale of goods and services are recognised when
control of the products being sold is transferred to our cusomer and
ehen there are no longer any unfulfilled obligations. The
performance oblogations in our contracts are fulfilled at the time of
dispatch, delivery or upon formal customer acceptance depending
on customer terms.
(d) Revenue is measured on the basis of sale pricwe, after
deduction of any trade discounts, volume rebates and any taxes or
duties collected on behalf of the Government such as goods and
service tax etc. Accumulated experience is used to estimate the
provision for such disclounts and rebates. Revenue is only
recognised to the extent that it is highly probable a significant
reversal will not occur.
(e) Interest income is recognized on a time proportion basis taking
_into account the amount outstanding and the rate applicable.
1 3 Propertv.Plant & Equipment and Intangible
" Assets & Depreciation
(a) Property, Plant and Equipment is stated at acquisition cost net
of accumulated depreciation and accumulated impairment losses, if
any. Cost of acquisition or construction of property, plant and
equipment comprises its purchase price including import duties and
non-refundable purchase taxes after deducting trade discounts,
rebates and any directly attributable cost of bringing the item to its
working condition for its intended use.
(b) Subsequent costs are included in the assets' carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the company and the cost of the item can be measured
reliably. All other repairs and maintance cost are charged to the
statement of profit and loss during the period in which they are
incurred.
(c) Gains or losses that arise on disposal or retirement of an asset
are measured as the difference between net disposal proceeds and
the carrying value of property, plant and equipment and are
recognised in the statement of profit and loss when the same is
derecognised.
(d) Depreciation on fixed assets is calculated on a Written - Down
value method using the rates arrived at based on the useful lives
estimated by the management, or those prescribed under the
Schedule II to the Companies Act, 2013. Freehold land is not
depreciated.
(e) Intangible asset purchased are initially measured at cost. The
cost of an intangible assets comprises its purchase price including
duties and taxes and any costs directly attributable to making the
assets ready for their intended use. The useful lives of intangible
assets are assessed as either finite or indefinite. Finite-life
intangible assets are amortised on a straight-line basis over the
period of their estimated useful lives.
1.4 Impairment of Assets
At each balance sheet date, the company reviews the carrying
amounts of its assets to determine whether there is any indication
that those assets suffered impairment losses 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.
The value in use, the estimated future cash flow expected from the
continuing use of the assets and from its disposal is discounted to
their present value at pre tax discount rate that reflects the current
market assessments of time value of money and the risk specific of
the assets. Reversal of impairment loss is recognized immediately as
_income in the statement of profit & Loss.
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 Raw Materials, W-I-P and Finished Goods
are valued at lower of cost and net realizable value unless otherwise
stated. Cost of inventories comprises of material cost on FIFO basis
and expenses incurred in bringing the inventories to their present
location and condition.
1.7 Employee Benefits
a)Employees of the company who are eligible to receive benefits
under the Employees Provident Fund & Miscellaneous Provisions
Act are defined contribution plan. Both the employee and the
employer make monthly contributions as per the provisions of the
act.
In accordance with the provisions of the Employees' State
Insurance Act, 1948, eligible employees of the company are
entitled to receive benefits to ESI, a defined contribution plan in
which both the company and the employee contribute monthly at a
determined rate. The Company's contribution to ESI is charged to
the Statement of Profit and Loss as and when incurred. The
company has no further obligations under these plans beyond its
monthly contribution.
Provision for Gratuity has been considered as per Acturial valuation
report.
Leave encashment to the employees are accounted for as & when
the same is claimed by eligible employees.
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 T axes on Income
T ax 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.
Earning 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.
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 if any.
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