2.1. Significant accounting policies:
a. AS - 1 Disclosure of accounting policies : -
The Financial statements are prepared under the accrual basis following the
historical cost convention in accordance with generally accepted accounting
principles (GAAP), and pursuant to section 133 of the companies act, 2013 read
with Rule 7 of the Companies (Accounts) rules,2014, till the standards of
accounting or any addendum thereto are prescribe by central government.
These financial statements have been prepared to comply in all material aspects
with the accounting standards notified under section 211(3C) [Companies
(Accounting Standards) Rules,2006 as amended] and other relevant provisions
of the companies act,2013 (the 'Act').
The presentation of financial statements requires estimates and assumption to
be made that affect the reported amount of assets & Liabilities on the date of
financial statements and the reported amount of revenue and expenses during
the reporting period. Difference between the actual result and estimates are
recognized in the period in which results are known/materialized.
b. AS - 2 Valuation of Inventory : -
Raw Material : At Lower of Cost or Net realizable value.
Semi-finished goods : At estimated cost.
Finished goods : At Lower of Cost or Net Realizable Value
c. AS - 4 Contingencies and Events Occurring After the Balance Sheet Date
Effects of, events occurred after Balance Sheet date and having material effect
on financial statements are reflected in the accounts at appropriate places.
d. AS - 5 Net Profit or loss for the period, prior period items and changes
in accounting policies : -
Material items of prior period, non-recurring and extra ordinary items are
shown separately, If any.
e. AS - 9 Revenue Recognition :-
Sale of service is recognized at the point of rendering of service to customers,
sales are exclusive of Service Tax, GST and Freight Charges if any. The revenue
and expenditure are accounted on a going concern basis.
Dividend from investments in shares / units is recognized when the company.
Other items of Income are accounted as and when the right to receive arises
f. AS - 10 Accounting for Property, Plant and Equipment :-
All items of Plant, Property and Equipment are initially recognized at cost and
subsequently carried at cost less accumulated depreciation and accumulated
impairment losses. All items are depreciated as per Written Down Value method
over the useful life as prescribed under Schedule II of Companies Act, 2013.
The cost of an item of property, plant and equipment initially recognized
includes its purchase price and any cost that is directly attributable to bringing
the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. Cost also includes borrowing
costs that are directly attributable to the acquisition, construction or production
of a qualifying asset.
Fixed assets are stated at cost less accumulated depreciation. Cost comprises
the purchase price and any other attributable cost of bringing the asset to its
working condition for its intended use less CENVAT claimed.
g. AS - 11 Accounting for effects of changes in foreign exchange rates :-
(a) . Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transactions.
(b) . Any income or expenses on account of exchange difference either on
settlement or on Balance sheet Valuation is recognized in the profit and loss
account except in cases where they relate to acquisition of fixed assets in which
case they are adjusted to the carrying cost of such assets.
(C). Foreign currency transactions accounts are given in the notes of accounts.
h. AS - 12 Accounting for Government Grants :-
Capital subsidiary receivable specific to fixed assets is treated as per accounting
standard 12 and other revenue grants is recorded as revenue items.
i. AS - 15 Employees Retirement Benefit Plan :-
a. Provident Fund :-
Provident fund is a defined contribution scheme as the company pays
fixed contribution at pre-determined rates. The obligation of the
company is limited to such fixed contribution. The contributions are
charged to Profit & Loss A/c.
j. AS - 16 Borrowing Cost :-
Borrowing costs directly attributable to the acquisition of qualifying assets are
capitalized till the same is ready for its intended use. A qualifying asset is one
that necessarily takes substantial period of time to get ready for intended use.
All other borrowing cost is charged to revenue.
k. AS - 18 Related Party Disclosure :-
The Disclosures of Transaction with the related parties as defined in the related
parties as defined in the Accounting Standard are given in notes of accounts.
l. AS - 19 Accounting for Leases :-
The Company has not entered into any lease agreements during the year.
m. AS - 20 Earnings Per Share :-
Disclosure is made in the Notes of accounts as per the requirements of the
standard.
n. AS - 22 Accounting for Taxes on Income :-
Current Tax:-
Provision for current tax is made after taken into consideration benefits
admissible under the provisions of the Income Tax Act, 1961.
Deferred Taxes:-
Deferred Income Tax is provided using the liability method on all temporary
difference at the balance sheet date between the tax basis of assets and
liabilities and their carrying amount for financial reporting purposes.
1. Deferred Tax Assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profit will be
available in the future against which this items can be utilized.
2. Deferred Tax Assets and liabilities are measured at the tax rates that
are expected to apply to the period when the assets is realized or the
liability is settled, based on tax rates ( and the tax) that have been
enacted or enacted subsequent to the balance sheet date.
o. AS - 24 Discontinuing Operations
During the year the company has not discontinued any of its operations.
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