A. SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF ACCOUNTING:
The Financial Statements have been prepared under the historical cost convention in accordance with
the generally accepted accounting principles and materially complies with the mandatory accounting
standards issued by the ICAI and Provision of the Companies Act'2013
2. Property, Plant & Equipments:
Property, Plant & Equipments are stated at its revalued amount or at cost of acquisition or
construction less depreciation. Cost comprises purchase price and other attribute costs/expenses
related thereto.
3. DEPRECIATION:
Depreciation on assets has been provided on written down value method on the basis of useful life
mentioned as per section 123(2) and Schedule II Companies Act 2013
4. INVENTORIES:
Stock of Raw Materials, components and other stocks are valued At Cost (FIFO Basis) (net off CENVAT
& GST wherever applicable)
Finished products including traded goods and work-in-process are valued at lower of cost or net
realizable value. Cost of finished products and work-in-process includes material cost, labour, direct
expenses, production overheads and excise duty, where applicable.
5. REVENUE RECOGNITION:
Sale of goods is recognized on dispatch to the customers. "SALES" include amount recovered towards
sales tax Excise Duty and net of sales return.
6. TAX ON INCOME:
a) Current tax is determined in accordance with the provisions of the Income Tax Act, 1961, as the
amount of tax payable to the taxation authorities in respect of taxable income for the year.
b) Deferred tax is recognized on timing difference between book profit and the taxable income for
the year and quantified using the tax rates and laws enacted or substantively enacted as on the
Balance Sheet date.
7. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit or (loss) before extraordinary
items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating, investing and
financing activities of the company are segregated based on the available information.
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