Note: 2 - Significant Accounting Policies
(i) Basis of Preparation of Financial Statements :
The financial statements are prepared under the historical cost convention, on the accrual basis of accounting to comply in all material with the appliable
accounting principles in india, the mandatory Accounting Standards ('AS') as prescribed under Section 133 of the Companies Act, 2013 ('the Act'), read with rule
7 of the Companies (Accounts) Rules, 2014, the relevant provisions of the Act, the guidelines issued by the Securities and Exchange Board of India ('SEBI') and
the Companies Act, 1956 to the extent relevant.
(ii) Use of estimates :
The preparation of the financial statements, in conformity with generally accepted accouting priciples in India, requires that the Management makes estimates and
assumptions that affected the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the
reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any revision on accounting estimates is
recognised prospectively in current and future periods.
(iii) Property, Plant & Equipment :
Tangible assets
Tangible assets are stated at their cost of acquisition or construction less accumulated depreciation. Cost includes inward freight, duties, taxes and expenses
incidental to acquisition and installation or construction, net of CENVAT,VAT and GST credit, where applicable.
The cost of the fixed assets not ready for their intended use before such date, are disclosed as capital work-in-progress.
Intangible assets
Intangible assets are stated at cost of acquisition less accumulated amortisation.
(iv) Depreciation / amortisation:
In respect of fixed assets during the year, depreciation/amortisation is charged on Written Down Method as to write off the cost of the assets over the
useful lives.
(v) Investments :
Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as
Current Investments.All other Investments are classified as Non Current Investments.Non Current Investments are stated at cost.However, provision for
diminution in value is made to recognise a decline other than temporary in the value of the investments.Current Investments are carried in the financial statements
at lower of cost and fair value determined on an individual investment basis.In case of unquoted securities, where fair market value is not available, lower of break
up value or cost is considered.On disposal of an Investment, the difference between its carrying amount and net disposal proceeds is charged to the statement of
profit and loss.
(vi) Inventories:
Inventories are stated at lower of the cost or net realizable value. Cost is determined on weighted average basis.
(vii) Recognition of Income and Expenditure :
Revenue is recognised and reported to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably
measured.Interest Income is recognised as and when the same has accrued on time proportion basis and company's right to receive interest is established.Dividend
Income is recognised when right to receive the same is estalished by the reporting date
(viii) Emloyee Retirement & Other Benefits
Short term employees benefits are recognised in the period in which employees's services are rendered.
(viii) Income Taxes
Income taxes
Income tax expense is aggregate of current tax (i.e. amount of tax for the period determined in accordance with the income tax law), deferred tax charges or credit
(reflecting the tax effects of timing differences between accounting income and taxable income for the period) borne by company.
Current tax expense is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking the tax credit for
the allowances and exemption in accordance with the Income Tax Act, 1961.
Deferred Taxation
The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future;
however, where there is unabsorbed depreciation or carried forward losses under the taxation laws, deferred tax assets are recognised only if there is virtual
certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is
reasonably/ virtually certain ( as the case may be) to be realised.
(ix) Earning Per Share :
The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earnings Per Share, as prescribed by the Rules. Basic
earning per shares is computed by dividing the net profit after tax attributable to the equity shareholders for the year by the weighted average number of equity
shares outstanding for the year.Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were
exercised or converted during the year. Diluted earning per share have been computed using the weighted number of equity shares and dilutive potential equity
shares outstanding at year end.
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