| 1 Basis of Accounting
Financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and to comply with Accounting Standards referred to in
Section 133 of the Companies Act 2013 read with Rule 7 of Company
(Accounts) Rules, 2014 to the extent applicable.
2 Use of Estimates
The Preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amount
of revenues and expenses during the reporting period.
3 System of Accounting
The Company adopts the accrual basis in the preparation of accounts
4 Fixed Asset
(a) Fixed Asset are stated at cost less accumulated depreciation. The
cost of assets comprises of purchase price and directly attributable
cost of bringing the assets to working condition for its intended use
including borrowing cost.
(b) Expenditure on renovation/ modernization relating to existing fixed
assets is added to the cost of such assets where it increases its
performance / life significantly.
5 Investment
Investment are carried at cost. Profit or loss, if any would be
accounted for on actual realization.
6 Inventories Valuation
(a) Raw Material , Stock in- Process and stores and spares and Traded
Goods are valued at cost.
(b) Waste and Scrap & Runner / Risers are valued at realizable value.
(c) Finished Goods are valued at cost or market price whichever is
less.
The Value of finished goods is included excise duty as applicable on
the closing stock.
7 Depreciation
(a) Cost of Lease Hold Land is not amortized since Lease is for a Long
Period.
(b) Depreciation on fixed assets upto 31.03.2014, is provided for on
the straight-line method in the manner and at the rates prescribed
under Schedule XIV of the Companies Act,1956.Effective from 01.04.2014,
depreciation is charged on SLM method on the basis of useful life of
the fixed assets. The Company has adopted useful life of fixed assets
as given in Part 'C' of Schedule II of the Companies Act, 2013 in
respect of all fixed assets.
8 Sale / Revenue Recognition
(a) Sales are net of Sales tax and sales returns. Revenue from sales
is recognized when risk and reward of ownership are transferred to the
customers.
(b) Interest income is recognized on time proportion basis.
(c) Other Revenue Income are recognised as and when accured to the
Company.
9 Impairment of Assets
There are no indication of overall impairment in assets hence the need
to make an estimation of re-coverable amount does not arise.
10 Employee Retirement Benefit
(i) Company's contribution to Provident Fund and Employee State
Insurance are charged to Statement of Profit & Loss.
(ii) Liability on account of gratuity and leave encashment are provided
for on the basis of acturial valuation made at the end of each
financial year.
11 Provisions for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between book profit and
taxable profit is accounted for using the tax rates and laws that have
been enacted or substantively enacted as on the date of balance sheet.
The deferred tax assets is recognized and carried forward only to the
extent that there is a reasonable certainty that the same will be
realized in future.
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