Significant Accounting Policies
A. Basis of preparation of Financial Statements '
The Financial statements are prepared under the historical cost convention and on accrual basis in accordance with the Indian Accounting Standards (referred to as "ind AS") prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.
Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting principles
B. Revenue Recognition
Sales are recorded exclusive of Taxes.
C. Property, Plant and Equipments
Property, Plant and Equipments are stated at cost of acquisition or construction less accumulated depreciation, including financial cost till such assets are ready for its intended use.
D. Depreciation
Depreciation is charged on written down value method as per Companies Act 2013.
E. Impairment of Assets
Impairment of assets if any is ordinarily assessed by comparing recoverable value of individual assets with its carrying cost.
F. Inventories
Inventories are valued at cost or net realizable value whichever is lower. Cost in respect of inventories is ascertained on Weighted Average Method.
G. Investments
Long Term Investments are stated at cost. Provision for dimunation if any in value of assets is only made when the same is of permanent nature.
H. Retirement Benefits
i As certified by the management, the company has no liability under the Provident Fund&
Super Annuation Fund as the said acts do no apply to the company.
ii It is explained to us that the company does not provide for any leave encashment and any liability arising thereon shall be paid and dealt with in the books of accounts at the actual time of payment.
I. Borrowing Cost
Borrowing cost on working capital is charged against the profit & loss account in which it is incurred.
Borrowing costs that are attributable to the acquisition or construction or manufacture of qualifying assets are capitalized as a part of the cost of such assets till the date of acquisition or completion of such assets. In respect of suspended project for extended period, borrowing costs are not capitalized for such period.
J. Taxes on Income
Taxes on income of the current period are determined on the basis of taxable income and credits computed in accordance with the provisions of the Income tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting income 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.
Deferred tax assets are recognized and carried forward to the extent that there is a reasonable and virtual certainty as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
K. Provision, Contingent liabilities and contingent assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but the same is disclosed in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.
L. Applicability of lndAS-24
In accordance with the requirements of Indian Accounting Standered-24 (lndAS-24) "Related Party Disclosure "issued by the Institute of Chartered Accountants of India, the following transactions are considered as Related Party as define in lndAS-24:
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Sr.
No.
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Name
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Amount
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Relationship
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Nature of transaction
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| |
|
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|
|
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1
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Rakshit M. Shah - HUF
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3.60/-
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HUF of Director
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Rent
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M. Foreign Currency Transaction
There are no such foreign currency transactions during the year.
N. C/F Value of Import Raw Materials: NIL .
O. Expenditure in Foreign Currency: NIL
P. Earning per Share: The Earning Per Share as per Ind AS-33 has been computed for the current financial year is as under:
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(a)
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Profit after tax
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Rs. 340.89/-
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(b)
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Equity Share (In Number)
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1512.82
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(c)
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Nominal value of share
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Rs. 2 per share
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(d)
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EPS
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2.25/-
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