SIGNIFICANT ACCOUNTING POLICIES Note:1 A. Basis of Preparation of Financial Statements The financial statements are brpared on historical cost method , in accordance with the generlly accepted accounting principles in India and the provisions of the Companies Act , 1956 . B. Fixed Assets (i) Tangible Assets Fixed assets are stated at cost less accumulated debrciation. (ii) Intangible Assets There is no intangible asset. C. Debrciation and Amortisation Debrciation on fixed assets is provided to the extent of debrciable amount on the basis useful life brscribe in shedule II of the company act 2013. D. Investments Long term investments are stated at cost. E. Inventories Items of inventories are measured at lower of cost and net realisable value after providing for obsolesence, if any. Cost of inventories comprises of cost of purchase , cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective brsent location and condition. Stock in process is determined at cost upto estimated stage of production and packing material at average sale prices. F. Revenue Recognition Revenue is recognized only when it can be reliably measured . Interest income is recognised on the time proportion basis taking into account the amount outstanding and rate applicable. G. Sales Tax / Value Added Tax Sales tax/Value added tax is paid on material consumed charged to Profit & Loss account. H. Provision for Current and Differed Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act , 1961 . Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are entacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future. I. Contingent Liabilities and Contingent Assets There is no contingent liability & assets. |