| 1. Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in india
(Indian GAAP) to comply with the Accounting Standards specified under
section 133 the companies Act,2013,read with Rule 7 of the Companies
Accounting Rules ,2014 and the relevant provisions of the Companies Act
(the 2013 Act)/Companies Act ,1956(the 1956 Act)2013 as applicable .The
financial statement have been prepared on accrual basis under the
historical cost convention .The accounting policies adopted in the
preparation of the financial statement are consistent with those
followed in the previous year.
2. Fixed Assets:
Fixed assets are stated at cost less accumulated
depreciation/amortization (including other expenses related to
acquisition and installation) adjusted by revaluation of certain fixed
assets.
Depreciation / Amortization:
Depreciation is provided on a pro-rata basis on straight line method
over the estimated useful lives of the assets determined by Schedule-II
of the Companies Act,2013, accept for certain assets where lower useful
life has been used and for which technical evaluation has been made by
the Management. The useful life adopted is as under :
Depreciation ofAssets Useful life (inYears)
Factory Building 30
Plant & Machinery 15
Furniture & Fixtures 10
Office Equipments 5
Computers 6
Vehicles 10
A.C.& A.C.Equipments 15
3. Investments:
Current investments are stated at lower of cost or market value.
Long-term investments are stated at cost.
4. Inventories:
Inventories are valued at the lower of Cost or Net Realizable Value
except stores & spares which is valued at cost.
5. Revenue Recognition:
Sales are accounted for on accrual basis.
6. Retirement Benefit:
Provident fund is accounted for on accrual basis while Leave Encashment
& Gratuity is accounted for on cash basis.
7. Foreign Currency Transactions:
Transactions in Foreign currency are recorded at the exchange rate
prevailing at the date of the transaction.Year end balances are valued
at the rate prevailing on that date.
8. Provision for Current and Deferred Tax:
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per Income Tax Act, 1961. Deferred tax resulting from
"timing difference" between book and taxable profits for the year is
accounted for using the tax rates and laws that have been enacted or
substantially enacted as on the balance sheet date.The deferred tax
asset is recognized and carried forward only to the extent that there
is reasonable certainty that the assets will be adjusted in future.
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