| a. Basis of Accounting:
Accounts have been prepared under the historical cost convention, in
accordance with applicable mandatory accounting standards issued by the
institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956.
b. Revenue Recognition:
The company follows the accrual system of accounting to recognise
income and expenditure.
c. Fixed Assets:
All fixed assets are valued at cost (net of CENVAT, wherever
applicable) less depreciation. Cost is inclusive of freight, duties,
levies and any directly attributable cost of bringing the assets to
their working condition for intended use.
d. Expenditure During Construction Period:
Expenditure incurred on projects during implementation is capitalized
and apportioned to various assets on commissioning of the project.
e. Depreciation:
Depreciation is systematically allocated over the useful life of an
asset as specified in Part C of Schedule II of Companies Act, 2013.
f. Investments:
(i) Long Term Investments are stated at cost.
(ii) Current Investments are stated at lower of cost and fair value.
g. Inventories:
Raw Material and Stores & Spares Parts are valued at cost. Finished
goods are valued at cost of production or market value, whichever is
less. Scrap is valued at net realization value.
h. Retirement and other Employee Benefits:
i) Defined Contribution Plan
The company makes defined contribution to provident fund is recognized
in the profit & loss account on accrual basis.
ii) Defined Benefit Plan
The company's liabilities under payment of Gratuity Act is determined
on the basis of actuarial valuation made at the end of each financial
year using the projected unit credit method.
i. Taxation:
i) Tax expense comprises of current and deferred tax
ii) 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.
iii) The deferred tax for timing difference between the books and tax
profits for the year is accounted for, using the tax rates and laws
have been substantively enacted as of the balance sheet date. Deferred
tax assets arising from timing difference are recognized to the extent
there is reasonable certainty that these would be realized in future.
iv) Deferred tax assets in case of unabsorbed losses and unabsorbed
depreciation are recognized only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
j. Excise Duty and Cenvat:
Liability towards excise duty on the finished goods is accounted for as
and when the goods are cleared from the factory premises and Cenvat
benefit is accounted for by reducing the purchase cost of the
materials/capital goods.
k. Revenue from Operatio
Sales/Turnover includes Sales Value of goods and Excise Duty.
l. Miscellaneous Expenditure:
The non-allocable deferred revenue expenditures are being written off
during the year.
m. Contingent Liabilities:
Contingent Liabilities are not provided for and are disclosed by way of
notes.
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