| The Company follows the Mercantile System of Accounting and recognizes
Income and Expenditure on accrual basis except dividend which is
accounted for on cash basis. The accounts are prepared on historical
cost basis, as a going concern and are consistent with generally
accepted accounting principles.
FIXED ASSETS
Fixed Assets are stated at cost of acquisition, inclusive of inward
freight, duties & taxes and incidental expenses related to acquisition.
In respect of major projects involving construction and modification
cum expansion, related pre-operational expenses form part of the value
of the assets capitalized.
DEPRECIATION
Depreciation is calculated on fixed assets on straight-line method at
the rates and in the manner provided in Schedule of the Companies Act,
2013.
EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit/loss
for the year attributable to equity shareholders, by the weighted
average number of equity shares outstanding during the year.
Diluted earnings per share is calculated by dividing the net
profit/loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
DEFERRED TAXATION
Deferred Taxation is provided using the liability method in respect of
the taxation effect arising from all material timing differences
between the accounting and tax treatment of income and expenditure
which are expected with reasonable probability to crystallize in the
foreseeable future.
Deferred tax benefits are recognized in the financial statements only
to the extent of any deferred tax liability or when such benefits are
reasonably expected to be realizable in the near future.
CONTINGENT LIABILITIES
Unprovided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.
OTHERS:
Other Accounting Policies followed are generally accepted accounting
practices.
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