A. Significant Accounting Policies
1. Basis of accounting:-
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on accrual basis.
2. Revenue Recognition :-
Expenses and Income considered payable and receivable respectively are accounted for on accrual basis except discount claims, rebates and retirement benefits which cannot be determined with certainty during the year.
3. Fixed Assets :-
Fixed assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.
4. Depreciation :-
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method/SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
5. Investments :-Investments are stated at cost.
6. Inventories :-
Inventories are valued as under:-
1. Inventories : Lower of cost or net realizable value
2. Scrap : At net realizable value.
7. Miscellaneous Expenditure:-
Miscellaneous Expenditure comprises of Preliminary expenses that are amortized over a period of five years.
8. Retirement Benefits:-
The retirement benefits are accounted for as and when liability becomes due for payment.
9. Taxes on Income:-
Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure realization.
10. Provisions. Contingent Liabilities and Contingent Assets:- (AS-29)
Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.
Contingent Liabilities is disclosed in Notes to the account for:-
(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or
(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.
General:
Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.
11. Notes:
1. The Company has adopted Indian Accounting Standards (IND AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued there under from April 1st, 2016. The date of transition to IND AS is from April 1st, 2015 and accordingly these financial results have been prepared in accordance with the recognition and management principle laid down, and other accounting principle laid down, and other accounting principle generally accepted in India.
2. The above standalone financial results as reviewed by the Audit Committee have been approved by the Board of Directors at its Meeting dated 29th May, 2018.
3. The figures of quarter ended March 31, 2018 and March 31, 2017 are the balancing figures in respect of the full financial year up to March 31, 2018 and March 31, 2017 respectively and the unaudited published year to date figures up to December 31, 2017 being the date of the end of the third quarter of the Financial Year. The stand alone results for the nine months ended December 31, 2017 have been subjected to the limited review by the Statutory Auditors.
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