1.1 Basis of Accounting and preparation of financial statement
The financial statements are prepared in accordance with Generally
accepted accounting Principles(GAAP) under the Historical cost
convention on the accrual basis and on a going concern basis. GAAP
comprises mandatory accounting standards as prescribed by the
Companies(Accounting Standards) Rules, 2014, the provision of Companies
Act, 2013 and Guidelines issued by the Securities and Exchange Board of
India(SEBI).
1.2 Use of Estimates
The preparation of financial statements requires management to make
certain estimates and assumptions that effect the amount reported in
the financial statements and notes thereto. Differences between actual
results and estimates are recognized in the period in which they
materialize.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO / weighted average
basis) and the net realisable value. Cost includes all charges in
bringing the goods to the point of sale, Work-in-progress and finished
goods include appropriate proportion of overheads and, where
applicable, excise duty.
1.4 Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
is inclusive of freight, duties, levies and any Cost directly
attributable to bringing the assets to their present location and
working conditions for intended use.
1.5 Depreciation/Amortization
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule II to the Companies Act, 1956 .
1.6 Investments
Investments are adjusted against the dues to the parties
1.7 Revenue Recognition
Revenues/Incomes and cost/expenditure are generally accounted on
accrual basis as they are earned or incurred except in case of
significant uncertainties. Income from sale of goods is recognised at
the point of dispatch from the Factory go down. Sale value includes
Excise duty and Frieght wherever applicable.
1.8 Taxes on income
Deferred Tax is not considered as in Earlier years due to insignificant
effect on the Profit/Loss for the Year.
1.9 Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognized but are disclosed in the
notes. contingent Assets are neither recognized nor disclosed in the
financial statement.
1.10 Employee Benefits
(a) Short term employee benefit obligations are estimated and provided
for.
(b) Post employment benefits and other long term employee benefits:
Defined Contribution plans :
Company's contribution to provident fund and other funds are determined
under the relevant schemes and/or statute and charged to revenue.
Company's liability towards gratuity is determined at each balance
sheet date and provided for.
1.11 Borrowing Cost
Borrowing costs relating to acquisition or construction of fixed assets
which takes substantial period of time to get ready for its intended
use are included in the cost of fixed assets to the extent they relate
to the period till such assets are ready to be put to use. Other
Borrowing costs are recognized as an expense in the year in which they
are incurred.
|