II. Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.
II. 1 Basis of Preparation:
(i) Compliance with Ind AS
This financial statements comply in all material aspects with Indian Accounting Standards (Ind. AS ) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standard) Rules. 2015 and other reliant provision of the Act.
(ii) Historical cost convention
The financial statements have been prepared on an accrual basis and under the historical cost convention.
(iii) Classification of asset and liabilities
The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.
II. 2 Summary of significant Accounting Policies:
a) Property, plant and Equipment:
Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost, less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment comprises its cost of acquisition inclusive of inward freight, import duties, and other non refundable taxes or levies and any cost directly attributable to the acquisition/ construction of those items: any trade
discounts and rebates are deducted in arriving at the cost of acquisition. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measure reliably. All other repairs and maintenance are charged to statements of profit or loss during the reporting period in which they are incurred.
b) Depreciation on tangible fixed assets.
Depreciation on tangible fixed assets is provided using the Written down value Method as per rate prescribed by Companies Act.
c) Revenue Recognition:
Revenue is measured at the fair value of the consideration received or receivable. Gross Sales are Net of returns, Claims, and Discount. The Company recognises Revenue when amount of revenue can be measured reliably and it is probable that the economic benefits associated with transaction will flow to the entity.
Interest Income is accounted on accrual basis and Fixed deposit interest is accounted as per statement/documents issued by bank.
d) Inventories
Inventories are valued as follows:
a) Stock of Raw : At Purchase
Material & Stores price plus Direct
Expenses
b) Stock of work in : At Estimated cost
Progress price
c) Stock of Finished : At cost or net
Goods realisable value
whichever is less
e) Insurance and other claims
Revenue in respect of claims is recognised when no significant uncertainty exists with regard to the amount to be realised and ultimate collection thereof.
f) Tax Expenses
Current income tax is measured at the amount expected to be paid to the income tax authorities in accordance with the income-tax Act, 1961 enacted in India. Deferred Income
tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax assets is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. The Company offsets current tax assets and current tax liabilities where it has a legally enforceable right to set-off the recognised amounts and where it intends either to settle on a net basis or to realise the assets and settle the liability simultaneously.
g) Earning per Share
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue: bonus element in a rights issue to existing shareholders: share split: and reverse share split (consolidation of shares).
h) Impairment of assets
At each balance sheet date an assessment is made whether any indication exists that an assets has been impaired. If any such indication exists, an impairment loss i.e the amount by which the carrying amount of an assets exceeds its recoverable amount is provided in the books of accounts.
i) Borrowing Costs:
Borrowing cost that is attributable to acquisition or construction of a qualifying asset is capitalised as part of cost of such assets. Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost is recognised as expenses in the period in which they are incurred.
j) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flown, cash & cash equivalents includes cash in hand, cash at bank and demand deposits with banks with an original maturity of three months or less which are subject to an in significant risk of change in value.
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