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.

11.1 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, whereverapplicable,
are based on normal operating cycles of
business activities of the Company, which is
twelve months.

11.2 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.