1. Significant Accounting Policies
1.1 Basis of Preparation
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards as prescribed under section 133 of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act 2013 (to the extent notified). The financial statements are prepared under the historical cost convention on accrual basis and on the basis of going concern.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
1.2 Presentation and disclosure of financial statements
The presentation and disclosure of financial statements are prepared in consensus with section 128 o; the Companies Act, 2013 and Schedule III prescribed under the Companies Act, 2013. The Company has reclassified/regrouped the previous year figures wherever found necessary.
1.3 Inventories
Inventories are valued at lower of cost and net realizable value.
1.4 Depreciation
Depreciation on tangible assets is provided on the straight line method over the useful lives of assets as prescribed under Part C of Schedule II of the Companies Act 2013.
1.5 Revenue Recognition
Items of Income and expenditure are recognized on accrual basis except stated otherwise. Sales are recorded on dispatch of goods to the customer. Interest income is recognized on time proportion basis.
1.6 Cash Flow Statement
Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. 1 he Cash Flows from operating, investing and financing activities of the Company are segregated
1.7 Deferred Taxes
The differences that result between the profit considered for Income Taxes and the profit as per the Financial Statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing differences.
1.8 Provisions and Contingencies
A provision is recognized for a present obligation as a result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on best estimates of the amount required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements
1.9 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the number of shares outstanding during the period are adjusted for the effects of all dilutive potential easily shares.
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