2) Material Accounting Policies followed by the Company are as follows:-
I) Basis of Preparation of Financial Statements:
The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies
Act, 2013 (Act) read with Rule 4A of Companies (Accounts) Second Amendment Rules, 2015, Companies (Indian Accounting Standards) Rules,
2015; and the other relevant provisions of the Act and Rules thereunder. The Financial Statements have been prepared under historical cost
convention basis except for derivative financial instruments, certain financial assets and financial liabilities which have been measured at fair
value.
The Financial Statements were authorized for issue in accordance with a resolution of the directors on 24th April 2025.
The Company's Financial Statements are presented in Indian Rupees (C), which is also its functional currency and all values are rounded to the
nearest lakh (C00,000), except when otherwise indicated.
ii) Use of Judgement, Assumptions and Estimates :
The preparation of the Company's financial statements requires management to make informed judgements, reasonable assumptions and
estimates that affect the amounts reported in the financial statements and notes thereto. Uncertainty about these could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are
reviewed periodically based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the
Statement of Profit & Loss in the period in which the estimates are revised and in any future periods affected.
In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the amounts recognized in the financial
statements relate to the following areas:
• Financial instruments;
• Useful lives of property, plant & equipment;
• Valuation of inventories;
• Measurement of recoverable amounts of assets / cash-generating units;
• Assets and obligations relating to employee benefits;
• Evaluation of recoverability of deferred tax assets; and
• Provisions and Contingencies.
iii) Property, plant & equipment
a) The cost of an item of property, plant and equipment is recognized as an asset only if it is probable that future economic benefits associated
with the item will flow to the entity and the cost of the item can be measured reliably.
b) Property, plant and equipment are stated at cost net of tax / duty credit availed, less accumulated depreciation and accumulated impairment
loss, if any.
c) The initial cost of an asset comprises its purchase price or construction cost (including import duties and non-refundable taxes), any costs
directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by
management, the initial estimate of any decommissioning obligation (if any) and the applicable borrowing cost till the asset is ready for its
intended use.
d) Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the
Company.
e) An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any
gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds if any and the carrying
amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.
f) Spare parts which meet the definition of property plant and equipment are capitalized as property, plant and equipment. In other cases, the
spare parts are inventorised on procurement and charged to Statement of Profit & Loss on issue/consumption.
g) When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognises the replaced
part and recognises the new part with its own associated useful life and it is depreciated accordingly. All other repair and maintenance cost
are recognised in the Statement of Profit and Loss as and when incurred.
h) Direct expenses incurred during construction period on capital projects are capitalised.
iv) Depreciation
Depreciation on property, plant and equipment is provided on the straight line basis, over the useful lives of assets (after retaining the
residual value of up to 5%). The useful lives determined are in line with the useful lives as prescribed in the Schedule II of the Act.
The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any, are
accounted in the period in which the estimates are revised and in any future periods affected.
The Company depreciates components of the main asset that are significant in value and have different useful lives as compared to the main
asset separately.
v) Accounting for Leases
The Company has implemented the Ind AS 116 “Leases” as notified by Ministry of Corporate Affairs on 30th March 2019 through the
Companies (Indian Accounting Standard) Amendment Rule, 2019.
A Contractor or parts of Contracts that conveys the right to control the use of an identified assets for a period of time in exchange for the
payments to be made to the owners (lessors) are accounted for as leases. Contracts are assessed to determine whether a contract is, or
contains, a lease at the inception of a contract or when the terms and conditions of a contract are significantly changed.
Where the company is a lessee in a lease arrangement at inception, the lease contracts are recognized as right of use assets and lease
liabilities are measured at present value of lease payments at initial recognition except for short term leases and leases of low value. The right of
use assets are depreciated on the straight line basis over a lease term. Lease payments are discounted using the interest rate implicit in the
lease. If the rate is not readily available, the incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow
over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right-of-use asset in a
similar economic environment. Payments associated with short term leases and leases of law value assets are recognized as an expenses in
profit & loss Accounts.
Where the company is the lessor in the lease arrangement at inception, the lease arrangement will be classified as a finance lease or an
operating lease. Classification is based on the extent to which the risks and rewards incidental to ownership of the underlying assets lie with the
lessor or the lessee. Under operating lease, where the Company is the lessor, the assets are included in the balance sheet and, where
applicable, are depreciated in accordance with the company's depreciation policies as set out in Note 1 (iii) Property, plants and equipment.
Revenue arising from assets leased out under operating leases is recognized on overtime basis.
vi) Investment Property
Industrial land taken on lease from Maharashtra Industrial Development Corporation (MIDC) is not permitted to be alienated in any manner
whatsoever, by the lessee. The lessor has given the land on sub lease to a third party and the same is treated Investment - Property and as
operating lease.
Investment property is amortised on straight line basis over the period of 95 years.
Investment properties are derecognised when either they have been surrendered to the lessor or when the investment property is permanently
withdrawn from use and no future economic benefit is expected.
The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statement of profit and loss in the
period of de-recognition.
vii) Inventories:
Raw material, Finished goods and Stock-in-Trade are valued at lower of costs or net realizable value. Cost of inventories comprises all cost of
purchase, conversions and other costs incurred in bringing the inventories to their present location and condition. Finished goods are valued at
exclusive of GST payable thereon. Provisions for obsolescence / expired goods are made, wherever necessary. Cost is determined by using
FIFO method.
viii) Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
ix) Revenue Recognition:
Sale of goods: Revenue from the sale of goods is recognised when the performance obligation is satisfied by transferring the related goods to
the customer. The performance obligation is considered to be satisfied when the customer obtains control of the goods.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration)
allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account
of various discounts and schemes offered by the Company as part of the contract.
x) Impairment of Assets:
The Company assesses at each Balance Sheet date where there is any indication that any assets may be impaired and if such indication exists,
the carrying value of such assets is reduced to its estimated recoverable amount and a provision is made for such impairment loss in the Profit
and Loss Account. If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.
xi) Foreign Currency Transactions and Translations
Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.
Translation of all foreign currency denominated monetary Assets & Liabilities as at the balance sheet dates are translated at year end exchange
rates. Exchange difference arising on restatement or settlement is charged to the Statement of Profit and Loss.
xii) Investments:
Long Term Investments are stated at cost of acquisition and related expenses. Provision is made to recognize a diminution, other than
temporary, in the value of investments. Current Investments are carried individually at lower of cost and fair value.
xiii) Employee Benefit:
A. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contribution to
provident fund etc. recognized as actual amounts due in period in which the employee renders the related services.
B. Post -employment benefits
a) Defined Contribution plan
Payment made to defined contribution plans such as Provident fund is charged as expenses as they fall due.
b) Defined Benefit Plan
The cost of providing benefits i.e. gratuity is determined using the Projected Unit Credit Method, with actuarial valuation carried out as at the
balance sheet date. Actuarial gain and losses are recognized immediately in the Statement of Profit & Loss.
xiv) Segment Reporting
The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which separate financial information is available and for which operating
profit/ loss amounts are evaluated regularly by the management.
The accounting policises adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities
of the segment.
Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have
been included under “unallocated revenue/ expenses/ assets / liabilities”.
xv) Taxation:
Income Tax expense comprises current tax (i.e. Amount of Income tax for the period determined in accordance with the Income Tax law),
deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period). The
deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted
or substantively enacted by the Balance Sheet date. Deferred Tax assets are recognized only to the extent there is reasonable certainty that
the assets can be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax
assets are recognized only if there is virtual certainty of realisation of the assets. Deferred tax assets are reviewed at each Balance Sheet date
and written down or written up to reflect the amount that is reasonable / virtual certain (as the case may be) to be realized.
xvi) Earnings per share:
Basic earnings per share are computed by dividing the net profit or loss for the year attributable to equity share holders by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity share holders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
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