| I. Basis of Preparation of Financial Statements:
Financial statements have been prepared and presented under historical
cost convention in accordance with the accounting principles generally
accepted in India having due regard to fundamental accounting
assumptions of going concern, consistency and accrual and comply with
the Accounting Standards referred to in Sec.211 (3C) of the Companies
Act, 1956('the Act') which as per a clarification issued by the
Ministry of Corporate affairs continue to apply under section 133 of
the Companies Act 2013 ( which has superseded section 211(3c) of the
Companies Act 1956 w.e.f 12 September 2013) as applicable and with the
relevant provisions of the Companies Act, 1956.
II. 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.
III. 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 products is stated inclusive of
duties, taxes but exclusive of returns, and applicable trade discounts
and allowances.
Interest accrues on the time basis, determined by the amount
outstanding and the rate applicable.
IV. Fixed Assets:
Fixed assets are carried at cost of acquisition less accumulated
depreciation.
Cost includes non-refundable taxes, duties, freight, borrowing costs
and other incidental expenses related to the acquisition and
installation of the respective assets.
Fixed assets which are found to be not usable or retired from active
use or when no further benefits are expected from their use are removed
from the books of account and the difference if any, between the cost
of such assets and the accumulated depreciation thereon is charged to
Statement of Profit & Loss.
V. Depreciation:
Depreciation on fixed assets under Straight Line Method at the rates
and in the manner specified in Schedule XIV to the Companies Act, 1956
VI Valuation of Inventories:
Inventories are valued at the lower of cost (or) net realizable value.
Cost is arrived at by using weighted average method and includes all
costs of purchases, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
VII Tax Expense:
Deferred tax resulting from "Timing Difference" between book profit and
taxable profit is accounted for using the tax rates and laws that are
enacted or substantively enacted as on the Balance Sheet date. Deferred
tax asset is recognized and carried forward only to the extent that
there is a reasonable certainty that the asset will be realized in
future.
Provision is made for tax on Income is as per the applicable provisions
of Income Tax Act, 1961.
VIII Foreign Exchange Transactions:
Transactions denominated in foreign currency are accounted for
initially at the exchange rate prevailing on the date of transaction
and any gain or losses arising due to exchange differences arising on
settlement are accounted for in the statement of profit or Loss.
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