NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
a} Basis for preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles (GAAP). The Company has prepared these financial statements to comply in all
material respects with the Indian Accounting Standards notified under section 133 of the Companies Act
2013. The financial statements have been prepared on accrual basis and under the historical cost
convention.
b) Property, Plant & Equipment
Property, Plant & Equipment are stated at cost (Net of GST, wherever applicable) less depreciation. Cost
includes freight, duties and taxes and other expenses related to acquisition and installation.
c) impairment
Impairment losses are provided to the extent the carrying amount exceeds their recoverable amounts,
t ecoverable amount is the higher of an asset's net selling price and its value in use. Value in use is present
vu.ue or estimated future cash flows expected to arise from the continuing use of the asset and from its
isposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an
drm s len£th transaction between knowledgeable, willing parties less cost of disposal.
d) Borrowing costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized
as part or the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time
to get ready for its intended us. All other borrowing costs are charged to revenue.
e) Inventories
Mnisned Goods and Raw material are measured at lower of cost and net realisable value. Cost comprises of
purchase cost excluding taxes that are refundable.
f) Revenue Recognition
Revenue from sale of goods is recognized on despatch to customers and is recorded net of GST trade
discounts and returns. '
g) Depredation & Amortization
Depreciation is charged in the accounts as under:
.. -Buildings are depreciated using Straight Line Method.
-Computers are depreciated using Straight Line Method. The assets are depreciated to the maximum
extent. The net value corresponds to the Residual value.
-Paddle wheel is depreciated using Written Down Vaiue Method.
-Depreciation on additions/deletions is worked out on pro-rata basis
h) Taxes on income
t?xlebLlnaX liabilifS 3nd defened t3X 3SSetS are reCognized for the tax effect on the difference between
* °m® 3nd accountlne income which are not permanent in nature subject to the consideration of
prudence in the case of deferred tax assets. cons.derat.cn of
i) Earnings per Share
^TehoTrsTth'3" " r'C:lated bV dMdinS the net Pr0fit °r bSS f0r the pedod ««»>«**. to equity
weiht!d ! V T8 < aVera8e "Umber °f eqUitY Shares 0Utsta"di"S d'-"ing the period. TTte
i^sue no .6qUitV ShareS °UtStanding dUrin§ the period are adjusted for events of bonus
..sue and share spirt, if any. ror the purpose of calculating diluted earnings per share, the net profit for the
£ 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
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