| a) Basis of Preparation of Financial Statement
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the Companies (Accounts) Rules,
2014 and the relevant provision of Companies Act, 2013. The financial
statements have been prepared on an accrual basis and under the
historical cost convention. The accounting policies adopted in the
preparation of financial statement are consistent with those of
previous year.
b) Inventories
Inventories are valued at lower of cost or Net Realizable Value.
c) Revenue Recognition
Domestic sales are accounted for on dispatch of goods to customers.
Sales are accounted for net of sales return.
d) Taxation
i. Provision for current Tax is made with reference to taxable income
computed for the accounting period, for which the financial statements
are prepared by the tax rates as applicable.
ii. Deferred Tax is recognized on timing differences between the
accounting income & the taxable income for the year, and quantified
using the tax rates and laws enacted or substantively enacted as on the
Balance Sheet date.
Deferred Tax assets are recognized and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
e) Provisions , contingent liabilities and contingent assets
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognized
in the financial statements. A contingent asset is neither recognized
nor disclosed in the financial statements.
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