Significant Accounting Policies and practices
Basis of accounting
The financial statements are prepared and presented under the historical cost convention on accrual
of accounting in accordance with the Generally Accepted Accounting Principles in India (Indian GAA
and comply in all material aspects with the Accounting Standards (AS) specified under Section 133 c
Companies Act,2013. read with Rule 7 of the Companies (Accounts) Rulest2014.
The accounting policies adopted in the preparation of these financial statements are consistent with I
of the previous year.
Use of Estimates
The preparation of financial statements in conformity of Indian GAAP requires estimates and assumi
be made that affect the reported amounts of assets and liabilities on the date of the financial stateme
reported amounts of revenues and expenses during the reporting period and the disclosures relating
contingent liabilities as on the date of the financial statements. Although these estimates are based c
management's best knowledge of current events and actions, uncertainty about these assumptions c
estimates could result in outcomes different from the estimates. Difference between actual results ar
estimates are recognised in the period in which the results are known or materialize.
CURRENT/ NON-CURRENT CLASSIFICATION
All assets and liabilities have been classified as either Current and Non-Current as per the
company's normal operating cycle and other criteria set out in the Schedule III to Companies Act,
Assets
An asset is classified as current when it satisfies any of the following criteria:
a) It is expected to be realised in, or is intended for sale or consumption in, the Company's normal
operating cycle;
b) it is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the reporting date; or
d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are
classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a) It is expected to be settled in the Company's normal operating cycle;
b) It is held primarily for the purpose of being traded; ^ HO, \m\
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c) It is due to be settled within 12 months after the reporting date; or
d) The Company does not have an unconditional right to defer settlement of the liability for at least
12 months after the reporting date. Terms of a liability that could, at the option of the counterparty,
result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include current portion of non-current financial liabilities. All other liabilities are
classified as non-current.
Operating cycle
The company has ascertained its Operating Cycle as 12 months for the purpose of current / non
current classification of assets and liabilities. This is based on nature of products and the time
between acquisition of assets for processing and their realization in cash and cash equivalent.
PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Property, Plant and Equipment and Intangible Assets are stated at cost, net of tax/duty credit
availed, if any, after reducing accumulated depreciation till the date of the Balance Sheet. Direct
costs are capitalized till the assets are ready to use and include financial cost relating to any
Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company.
An item of property, plant and equipment and intangible assets is de-recognised upon disposal or
when no future economic benefits are expected to arise from its use. Any gain or loss arising from
its de-recognition is measured as the difference between the net disposal proceeds and the
carrying amount of the asset and is recognised in Statement of Profit and Loss when the asset is de-
Items of Property, Plant and Equipment and Intangible Assets that have been retired from active
use and are held for disposal are stated at the lower of their net book value or net realizable value.
Capital Work-in-progress includes the cost of Property, Plant and Equipment that are not yet ready
for the intended use and the cost of assets not put to use before the Balance Sheet Date.
Intangible Assets separately acquired are initially measured at Cost. Following initial recognition,
intangible assets are carried at cost less accumulated amortization and accumulated impairment
losses, if any. Intangible assets are amortized on a straight-line basis over the estimated useful
DEPRECIATION
Depreciation on Property, Plant and Equipment and Intangible Assets has been provided using the
written down value method as per useful life of assets prescribed in Schedule II to the Companies
Act, 2013 and is charged to the Statement of Profit and Loss.
In respect of additions/deletions to Property, Plant and Equipment and Intangible Assets during the
year, depreciation is provided on pro-rata basis with reference to the date of addition/put to use or
Intangible assets are amortized on a straight-line basis over their estimated useful life.
Inventories
Raw material & WIP is valued at cost or net realisable value, whichever is lower, as certified by the
Company’s management.
Stock in trade is valued at cost or net realisable value, whichever is lower, as certified by the
Company's management.
Precommencement of Business expenses
Precommencement of Business expenses / Amortisation of Exhibition expenses are amortized over
a period of 5 years.
Sales/Revenue recognition of income and expenses
a. Revenue from sales is recognised at the point of dispatch to the customers when the risk and
reward stands transferred to the customer.
b. Interest income is recognised on accrual basis.
Accounting For Taxes On Income :
a. Provision for current tax is calculated in accordance with the provisons of the Income Tax Act.
1961 and is made annually based on tax liability computed after considering
b. Deferred Tax Asset and Deferred tax liability is calculated by applying rates and tax laws that
have been enacted or substantively enacted as on balance sheet date.
c. Deferred Tax Liability are recognised & carried Forward to the extent that there is a reasonable
certainty that sufficient future taxable income will be available against which such Deferred Tax
Accounting for effects in Foreign Exchange Rates :
a. Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing
the time of the transaction.
b. Monetary items (i.e.receivables, payables, loans etc.) denominated in foreign currency are reporte
using the closing exchange rate on which these were initially recorded/reported In previous financi.
statements are recognised as income/expenses in the period in which they arise.
Earning Per Share :
The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting St
20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by wei
average number of Equity shares outstanding during the year.
Retirement Benefits
No Accounting provisions has been made for Retirement Benefits to the Employees by the Compan
as per Accounting Standard AS-15.
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