A. Revenue recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
include sale of goods, other charges, sale of goods is recognized on
transfer of significant risks and rewards of ownership which is generally
on the dispatch of goods Net Goods and Service Tax ( GST) and other
taxes, if any.
Revenue are recorded at invoice value Net Goods and Service Tax of
returns and trade discounts. Benefits on account of entitlement of
export incentives are recognized as and when the right to receive is
established. Interest income is recognized using the time proportionate
method, based on rates implicit in the transaction.
B. Fixed Assets
Fixed assets are stated at cost/revalued less accumulated depreciation.
Depreciation on Tangible assets has been provided as per the revised
useful life of these assets as per Schedule II of the Companies Act, 2013.
C. Investments
Investments that are readily realizable and are intended to be held for
more than one year from the date on which such investments are made,
are classified as non-current investments. However, provision for
diminution is made to recognize a decline, other than temporary, in the
value of the investments, such reduction being determined and made
for each investment individually^
D. Inventories
Inventories are values and certified by the management in respect of
quality & value. Raw materials are valued at lower of cost or net
realizable value. Cost is determined on weighted average basis. Finished
goods are valued at cost or market value whichever is lower.
Stores and spares are valued at lower of cost or net realizable value.
Cost is determined on weighted average basis.
E. Foreign Currency Transactions
Transactions in foreign currencies entered into by the company are
accounted at the exchange rates prevailing on the date of the
transaction. Exchange differences arising on foreign exchange
transactions settled during the year are recognized in the statement of
Profit and Loss.
F. Employee Benefits
Short term employee benefits payable within twelve months of
rendering the service are classified as short term employee benefits and
they are recognized as an expense in the statement of Profit and Loss
account.
Post employment and other long term employee benefits are recognized
as an expense in the statement of Profit and Loss account for the year
in which the employee has rendered services. The expense is recognized
at the present value of the amounts payable as per the management
valuation. Actuarial gains and losses in respect of post employment and
other long term benefits are charged to the statement of profit and loss.
G. Deferred tax on income
Deferred tax is recognized for all timing differences being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
H. Impairment of Assets
The Company reviews the carrying value of tangible assets for any
possible impairment at each balance sheet date. An impairment loss is
recognized when the carrying amount of an asset exceeds its
recoverable amount. In assessing the recoverable amount, the
estimated future cash flows are discounted at their present value based
on appropriate discount rates.
I. Borrowing cost
All borrowing cost are charged to the Statement of Profit and Loss.
J. Cash and Cash equivalents
Cash and cash equivalents comprise cash on hand, bank balances,
demand deposits with banks and other short term highly liquid
investments where the original maturity is three months or less.
K. Trade receivable
Trade receivable are stated after writing off debts considered as bad.
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