| 1. Basis of Preparation of Financial Statements:
The Financial statements have been prepared under the historical cost
convention on accrual basis. The mandatory applicable accounting
standards in India and the provisions of the companies Act, 2013 have
been followed in preparation of these financial statements.
All assets and liabilities have been classified as current or
non-current as per the operating cycle criteria set out in the Revised
Schedule III to the Companies Act, 2013.
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 the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
3. Revenue Recognition:
Revenue from sale of goods is recognized when significant risks and
rewards in respect of ownership of products are transferred to
customers. Revenue from domestic sales of products is recognized on
dispatch of products. Revenue from export sales is recognized on
shipment of products. Revenue from products is stated inclusive of
duties, taxes but exclusive of returns, and applicable trade discounts
and allowances.
Interest income is recognized on time accrual basis, determined by the
amount outstanding and the rate applicable.
4. Fixed Assets:
Fixed assets are recognized at cost of acquisition and installation
less accumulated depreciation. The cost comprises purchase price,
fright, duties, levies, borrowing cost and directly attributable cost
of bringing the assets to their working condition for intended use.
Subsequent expenditure related to an item of fixed assets is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance
or extend its estimated useful life.
5. Depreciation:
Depreciation on fixed assets is provided on Written down value method
by using the lives of assets given in Schedule II of the Companies Act,
2013.
6. Valuation of Inventories:
Inventories are valued at the lower of cost and net realizable value
except by products which is valued at estimated realizable value. In
determining the cost of raw material, stores, spares, and other
material the first in first out (FIFO) method is used. Finished goods
and work in progress include material cost, labor and factory overheads
and excise duty, if applicable.
7. Impairment of assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An Impairment loss is charged to the statement
of profit & loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been change in the estimate of recoverable amount
8. Tax Expense:
Provision is made for tax on Income and as per the applicable
provisions of Income Tax Act, 1961.
9. Foreign Exchange Transactions:
There are no foreign currency transactions during the period
10. Borrowing costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
charged to revenue.
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