The company generally follows the mercantile system of accounting and recognises revenue on accrual basis, except sale of scrap and insignificant items/amounts, which are accounted for on cash basis. The accounts are prepared and presented as a going concern concept in accordance with Generally Accepted Accounting Principles (GAAP) in India under historical cost convention and comply in all material aspects with the Accounting Standards (AS) and the relevant provisions prescribed in the Companies Act, 2013. The accounting policies not referred to otherwise are consistent with generally accepted accounting principles

(b) Use of Esti mates

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. Although these estimates are based on the management's best knowledge of current events and actions, the actual outcome may be different from the estimates. Difference between actual results and estimates are recognised in the period in which the results are known or materialise.

(c) Fixed Assets

Fixed Assets (Tangible and Intangible) are stated at cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to acquisition and installation. In respect of major projects involving construction, related pre-operative expenses, including finance cost on borrowed funds attributable to acquisition of fixed assets for the period upto the date of commencement of commercial production is capitalised. In case of revaluation, acquisition cost is replaced with revalued figures.

(d) Impairment of Assets

Loss / gain on impairment of assets is recognised in accounts after reviewing net selling price / value in use and net carrying amount of individual assets ( if independently generating cash flow) and cash generating units at each Balance Sheet date.

(e) Classification of Assets and Liabilities as Current and Non-Current

All assets and liabilities are classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, 12 months has been considered by the company for the purpose of current - non-current classification of assets and liabilities.

(f) Investments

Investments are classified as current and non-current. Current investments are those investments which are readily realisable, and are intended to be held for not more than one year from the date of investment. All other investments are classified as long-term investments.

Current investments are stated at lower of cost and fair value determined.

Long term investments are stated at cost less permanent diminution in value of such investments.

(g) Depreciation

Depreciation on fixed assets is provided under straight line method at the rates and in the manner prescribed under the Companies Act, 2013. Assets acquired / disposed off during the year are depreciated with reference to the month of addition / disposal. Assets under construction / installation are not depreciated. Assets used during construction of the project are depreciated and such depreciation forms part of the pre-operative cost. Annual depreciation on written up value due to revaluation of assets is charged to revaluation reserve account proportionately to the extent of balance held in the account.

(h) Retirement Benefits

The company is not covered by Employee's Provident Fund Act and there is no scheme of Provident fund in vogue. Liability for gratuity is provided on actual basis, computed on the tenure of the service of the eligible employees as at the end of the year, in terms of paragraph 52 of Accounting Standard - 15 ( Revised) issued by The Institute of Chartered Accountants of India, in view of few numbers of employees eligible for gratuity at present.

(i) Inventories

Raw materials are valued at lower of yearly weighted average cost (including related acquisition cost) or market prices. Cost of interdivisional transfer of goods has been taken as per policy enumerated in paragraph (l) below.

Stock of such material, and consequential finished goods at balance sheet date, are valued taking the said transfer price and any unrealised profit on such transaction is eliminated while valuing the stock.

Rejects, Middling, Slurry are valued at estimated realisable value. Other finished goods are valued at lower of weighted average cost or market / estimated realisable value. Cost includes material cost, labour and appropriate systematic allocation of fixed and variable production overheads on actual basis, based on estimated production facilities used by different divisions.

Stock in transit, spares and stores etc. are valued at actual cost of purchase including related expenses. Scrap, being not material in amount, is not accounted for.

(j) Proposed Dividend

Dividend as proposed by the directors is provided in the books of account, pending approval at the Annual General Meeting.

(k) Foreign Exchange Transactions

Foreign exchange transactions are accounted for at the exchange rates prevailing on the date of transaction. Monetary items denominated in foreign currency are restated at the exchange rate prevailing at the Balance sheet date. In case of transactions covered by forward contract, they are restated at that rate and premium, if any, is allocated over the tenure of credit.

(l) Inter-Division transfer

Inter-divisional transfer of goods as independent marketable products of separate divisions for captive consumption are assigned value at lower of cost of production (wherever feasible) and estimated net realizable value. This accounting treatment has no impact on the profit of the company. Such transactions are neither included in turnover nor in consumption of materials, except for valuation purposes.

(m) Sales

Sales are inclusive of all taxes, except VAT & CST, less returns. In respect of service tax the same is not included in turnover if collected over and above the agreed charges.

(n) Purchases

Purchases are accounted for net of MODVAT / CENVAT/VAT/ Set off of taxes as applicable.

(o) Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

(p) MODVAT / CENVAT/VAT/Set off of taxes

Any set off / credit of taxes is adjusted against purchase cost of that item / goods if relates to current year. Adjustment of prior year is accounted for in profit & loss account separately.

(q) Contingent Liabilities & Commitments

Contingent liabilities and commitments are not provided for and are disclosed in notes attached to the accounts.

(r) Taxes on Income

Current income tax is determined in accordance with the provisions of the Income Tax Act, 1961, as the amount of tax payable to the taxation authorities in respect of taxable income for the year.

Deferred tax is accounted for under the liability method, subject to the consideration of prudence for deferred tax assets, at the current rate of tax, on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are offset if they are governed by same taxing laws.