BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These financial statements are prepared in accordance with Generally Accepted Accounting
Principles in India (GAAP) under historical cost convention on the accrual basis. GAAP comprises
mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013
(‘Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, and the relevant provisions of the
Companies Act, 2013 (“the 2013 Act”) / Companies Act, 1956 (“the 1956 Act”), as applicable.
The financial statements are prepared under the historical cost convention and on the accounting
principles of going concern. The Company follows the accrual system of accounting where income
& expenditure are recognized on accrual basis.
USE OF ESTIMATES
The preparation of financial statements requires management to make estimates and
assumptions that affect amounts in the financial statements and reported notes thereto. Actual
results could differ from these estimates. Differences between the actual result and estimates are
recognized in periods in which the results are known/ materialized.
FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and
impairment loss, if any. The cost of an asset comprises of its purchase price (net of cenvat / duty
credits availed wherever applicable) and any directly attributable cost of bringing the assets to
working condition for its intended use. Expenditure on additions, improvements and renewals is
capitalized and expenditure for maintenance and repairs is charged to profit and loss account.
Fixed assets depreciation was charge as on 31-03-2025 as per WDV on Value basis on 31-03-2024.
DEPRECIATION
The Company has provided for depreciation on fixed assets using written down value (WDV) over
the useful life of the assets as prescribed in Schedule II to the companies Act, 2013. Intangible
assets are amortized over their estimated useful life on a straight line basis. Depreciation on asset
acquired / sold during the year is provided on pro-rata basis with reference to the date of
installation / put to use in the books or disposal. Effective from 1st April 2014, the company has
reassessed the useful lives of the fixed assets in line with useful lives mentioned in Schedule II to
the companies Act, 2013.
VALUATION OF INVESTMENTS
Investments that are readily realizable and intended to be held for not more than a year are
classified as current investments. All other investments are classified as long term investments.
Current Investments are carried at lower of cost and fair value determined on an individual
investment basis.
Long-term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of investments.
VALUATION OF INVENTORIES
Cost of inventory includes all costs of purchases and other costs incurred in bringing the inventories
to their present location and condition.
Closing Stock is valued as under:
• Raw Material: At cost or net realizable value whichever is less.
• Work in Progress: At cost or net realizable value whichever is less.
• Finished Goods: At cost or net realizable value whichever is less.
• Loose Tools: At cost
• Consumable Store: At cost
• Industrial Scrap (by-products): Estimated realizable value
FOREIGN CURRENCY TRANSACTIONS
Initial Recognition
Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on
the date of the transaction.
Conversion
At the year-end, monetary items denominated in foreign currencies other than those covered by
forward contracts are converted into rupee equivalents at the year-end exchange rates.
Exchange Differences
All exchange differences arising on settlement/conversion of foreign currency transactions are
recognized in the statement of profit and loss.
Forward Exchange Contracts
In respect of transactions covered by forward contracts, the difference between the forward rate and
the exchange rate at the date of the transaction is recognized as income or expense on the date of
booking of the forward contract. The gain/loss on account of foreign currency translation in respect
of foreign exchange contracts is spread over the term of the contract.
REVENUE RECOGNITION
Sale of goods is recognized on dispatches to customers, which coincide with the transfer of
significant risks and rewards associated with ownership, Inclusive of excise duty and net of VAT &
Discount.
Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable.
BORROWING COSTS:
Borrowing costs that are attributable to the acquisition/construction of qualifying assets are
capitalized as part of the cost of such fixed assets up to the date when such assets are ready for their
intended use. All other borrowing costs are recognized as an expense in the period in which they are
incurred.
EMPLOYEE BENEFITS:
• Short Term Employee Benefits: All employee benefits payable within twelve months of rendering
of services are classified as short-term benefits. Benefits include salaries, wages, awards, exgratia,
performance pay, etc. and are recognized in the period in which the employee renders the related
service. Liability on account of encashment of leave, Bonus to the employee is considered as
short-term compensated expense provided on actual.
. Post Employment Benefit:
o Defined Contribution Plan: A Provident fund is a defined contribution scheme established
under a State Plan. The contributions to the scheme are charged to the profit & loss
account in the year when the contributions to the fund are due.
o Defined Benefit Plan: The company's liability towards gratuity is determined using the
projected unit credit method which considers each period of service as giving rise to an
additional unit of benefit entitlement and measures each unit separately to build up the final
obligation. The present value of the obligation under such defined benefit plans is determined
based on the actuarial valuation at the date of the Balance Sheet.
EARNINGS PER SHARE:
Basic earnings per share is computed by dividing the net profit after tax for the year after prior
period adjustments attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year.
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