BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Preparation, Measurement:
These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 (‘the Act’) and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented.
The financial statements are presented in Indian Rupees which is also the functional currency of the Company.
All assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:
a. Basis of Accounting:
These financial statements have been prepared under the historical cost convention on the accrual basis. The financial statements are presented in Indian Rupees which is the Company’s functional and presentation currency.
b. Revenue Recognition:
Revenue is measured at the fair value of the consideration received or receivable. The Company recognizes revenues on sale of products, net of discounts, rebates granted, returns, GST and duties when the prodwtej^&Alshvered to customer or when delivered to a carrier, which is when significant risks
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and rewards of ownership pass to the customer. Revenue from sale of by-products are included in revenue.
c. Property, Plant & Equipment:
On transition to Ind AS, the Company has adopted optional exception under Ind AS 101 to measure Property, Plant and Equipment at carrying value under previous GAAP. Consequently the carrying value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition.
Subsequently Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. Costs include costs of acquisitions or constructions including incidental expenses thereto, borrowing costs, and other attributable costs of bringing the asset to its working condition for its intended use and are net of available duty/tax credits.
Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively.
d. Capital work-in-progress:
Expenditure related to and incurred on implementation of new/expansion-cum-modemisation and up gradation of projects is included under capital work-in-progress until the relevant assets are ready for its intended use.
e. Intangible Assets:
Intangible assets as defined IND AS 38, are initially measured at cost. Intangible assets acquired in a business combination are recognised at fair value at the acquisition date. Subsequently, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. The useful lives of intangible assets are assessed as either finite or indefinite.
f. Depreciation:
Depreciation is systematically allocated over the useful life of an asset as specified in Part C of Schedule II of Companies Act, 2013.
g. Financial Assets & Financial Liabilities:
Financial assets are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument
h. Inventories:
Inventories are stated at the lower of cost and net realisable value.
Cost of raw materials include cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost of finished goods include cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity. Costs of inventories-a^ifetimnined on weighted average basis.
Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
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