Note 1: Significant Accounting Policies:
1. Basis of Accounting & Revenue Recognition:
The Accounts are prepared under the historical cost convention applying accrual method of
accounting and as a going concern, complying with the applicable Accounting Standards and the
generally accepted accounting principles prevailing in the country.
Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection. Revenue from Operations include sale of goods and supply of services.
Interest income, if any is recognized on time proportion basis taking into account the amount
outstanding and the rate applicable.
2. Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting
principles requires estimates and assumptions to be made that affect the reported amounts of
revenues and expenses during the reporting period. Differences between actual results and
estimates are recognized in the period in which the results are known / materialized.
3. Fixed Assets:
Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct
costs are capitalized until such assets are ready for use. Capital work in progress comprises the
cost of fixed assets that are not yet ready for their intended use at the reporting date.
4. Intangible assets:
Intangible assets acquired separately are measured on initial recognition at cost. The useful lives of
intangible assets are assessed as either finite or indefinite.
Following, initial recognition, intangible assets with finite lives are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Internally generated
intangible assets, excluding capitalized development
5. Depreciation:
Depreciation has been charged on cost of fixed assets, adopting the following methods / rates:
1. Depreciation is calculated using Straight Line Method (SLM) to allocate their cost, net
of their residual values, over their estimated useful lives prescribed in Schedule II of the
Companies Act, 2013.
2. If the cost of a part of the asset is significant to the total cost of the asset and useful life
of that part is different from the useful life of the remaining asset, useful life of that
significant part is determined separately for depreciation.
3. For other assets acquired / sold during the period pro-rata charge has been made from the
date of first use or till the date of sale.
6. Impairment:
Impairment loss from fixed assets is assessed as at the close of each financial period and
appropriate provision, if required, is considered in the accounts.
7. Segment Information:
Identification of segments:
The Company's operating businesses are organized and managed separately according to the
nature of products and services provided, with each segment representing a strategic business unit
that offers different products and serves different markets. The analysis of geographical segments
is based on the geographical location of the customers wherever required.
Segment Policies:
The company prepares its segment information in conformity with the accounting policies adopted
for preparing and presenting the financial statements of the company as a whole.
8. Borrowing Cost:
Interest and other costs in connection with the borrowing of the funds to the extent
related/attributed to the acquisition/construction of qualifying fixed assets are capitalized as a
part of the cost of such asset up-to the date when such assets are ready for its intended use and
other borrowing costs are charged to statement of Profit & Loss.
9. Inventories:
Inventories of Finished Goods & Stores and Spares are valued at cost or estimated net realizable
value whichever is lower using weighted average cost method. The cost comprises of purchase
price, freight, taxes and duties. The cost is further reduced to the extent of value of Input tax
benefits availed by the company.
10. Sales:
Revenue from sale of goods is recognized on transfer of significant risk and rewards of ownership
to buyer that coincides with the delivery of goods. The company present revenue net of sales tax,
value added tax and goods and service tax in its Statement of Profit and Loss.
Export incentives on sales under various schemes notified by the Government has been recognized
on accrual basis in the year of export. Other incentives and subsidies under various schemes
notified by the Government has been recognized on the basis of amount received.
Interest income is recognized on time proportion basis taking into account the amount outstanding
and rate applicable.
Other items of income are accounted as and when the right to receive such income arises and it is
probable that the economic benefits will flow to the company and the amount of income can be
measured reliably.
11. Employee Benefits:
a) Provident Fund:
The Company's contributions paid and payable during the year towards Provident Fund are made to
Regional Provident Fund Commissioner & are charged in Profit & Loss Statement every year.
b) Gratuity:
The Company has policy of giving gratuity to its employees who complete period of qualifying
service which is 5 years.
The employees of the company are entitled for Gratuity as per Payment of Gratuity Act, 1972.
However, the company has not provided for any liability towards the payment of gratuity towards
employees. In absence of detailed working, its impact on the financial statements is not ascertainable.
The company does not have any further information about fair value of plan assets under the plan,
accordingly disclosures related to Planned assets and underlying assumption has not been disclosed
c) Compensated Absences:
The Company extends the benefit of leave encashment to its employees on retirement I separation.
The same is accounted on the basis of actual liability on the date of balance sheet.
12. Provision for Current and Deferred Tax:
Income tax expense is accounted for in accordance with AS 22- “Accounting for Taxes on
Income” prescribed under the Companies (Accounting Standard) Rules, 2006 which includes
current tax and deferred taxes.
Current taxes reflect the impact of tax on income of the previous period as defined under the
Income Tax Act, 1961 as per applicable rates.
Deferred taxes reflect the impact of Current period timing differences between taxable income
and accounting income for the period and reversal of timing differences of earlier periods if any.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available.
13. Amount Due to Micro, Small and Medium Enterprises:
(i) Based on the information available with the Company in respect of MSME (as defined in
the Micro, Small and Medium Enterprises Development Act, 2006) there are no delays in
payment of dues to such enterprise during the period.
(ii) The identification of Micro, Small and Medium Enterprises Suppliers as defined under
“The Micro, Small and Medium Enterprises Development Act, 2006” is based on the
information available with the management. As certified by the management, the amounts
overdue as on March 31, 2024 to Micro, Small and Medium Enterprises on account of
principal amount together with interest, aggregate to Rs. Nil.
14. Cash and Cash Equivalents :
Cash and Cash equivalents includes cash and cheque on hand, demand deposits with banks, fixed
deposits and other long term and short term highly liquid investments with original maturities of
three months or less.
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