| a) Basis of Accounting
The accounts of the Company are prepared under the historical cost
convention and are in accordance with the applicable accounting
standards and accordingly accrual basis of accounting is followed for
recognition of income and expenses except where otherwise stated and
where the exact quantum is not ascertainable. Expenditure on issue of
share capital, if any, is accounted when actually incurred.
b) Revenue Recognition
(i) Sales and Job Work are recognized at the time of invoicing thereof
upon the passage of title to the customers / clients.
(ii) Exports sales are recognised according to the date of Bill of
Lading or the Airway Bill,as the case may be, as adjusted by the actual
realization if within one year.
(iii) Local sales are recorded at the price inclusive of excise duty
and freight wherever separately not collected.
c) Fixed Assets
Fixed assets are stated at total capitalized costs relating and
attributable directly or indirectly to acquisition and installation
thereof as reduced by the accumulated depreciation thereon.
d) Depreciation/Amortization
Depreciation / Amortization on Fixed Assets, other than Freehold land
is provided on pro-rata basis on Straight Line Method at the rate
prescribed under sechdule II to the Companies Act, 2013. However no
depreciation charge during the year.
e) Inventories
Inventories are valued as follows:
(i) Raw Materials, Stores and Spares: at cost
(ii) Work in Progress: at lower of estimated cost or net realizable
value
(iii) Waste Materials, Damaged goods, Scrap: if any at net estimated
realizable value
(iv) Finished Goods: at lower of cost or market value.
f) Investments
Investments that are intended to be held for more than a year , from
the date of acquisition are classified as long term investment are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments are being current
investments are valued at cost or fair market value whichever is lower.
g) Assets & Liabilities
The Assets and Liabilities are taken at the book value certified by the
Directors.
h) Foreign Currency Transactions
Foreign Currency Transactions are normally recorded at the exchan ge
rate, prevailing on the date of transaction or conversion, as the case
may be.
i) Taxes on Income
(i) Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act, 1961.
(ii) Deferred Tax Provision: 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 on the Balance Sheet date.
Deferred Tax Assets are recognized and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such Deferred Tax Assets can
realized.
j) Miscellaneous Expenditure
Preliminary expenses / shares and deferred revenue expenses etc. if any
are amortized over a period of 5 years.
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