NOTES FORMING PART OF FINANCIAL STATEMENTS

A. Significant Accounting Policies- (AS-1):

1. Basis of Preparation of Financial Statements:

The Financial statements have been brpared under the historical cost convention on accrual basis. The mandatory applicable accounting standards in India and the provisions of the companies Act, 2013 have been followed in brparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule III to the Companies Act, 2013.

2. Use of Estimates:

The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Interest income is recognized on time accrual basis, determined by the amount outstanding and the rate applicable.

4. Fixed Assets:

Fixed assets are recognized at cost of acquisition and installation less accumulated debrciation. The cost comprises purchase price, fright, duties, levies, borrowing cost and directly attributable cost of bringing the assets to their working condition for intended use. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its brviously assessed standard of performance or extend its estimated useful life.

5. Debrciation:

Debrciation on fixed assets is provided on Written down value method by using the lives of assets given in Schedule II of the Companies Act, 2013.

6. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value except by products which is valued at estimated realizable value. In determining the cost of raw material, stores, spares, and other material the first in first out (FIFO) method is used. Finished goods and work in progress include material cost, labor and factory overheads and excise duty, if applicable.

7. Impairment of assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount

8. Tax Expense:

Provision is made for tax on Income and as per the applicable provisions of Income Tax Act, 1961.

9. Foreign Exchange Transactions:

There are no foreign currency transactions during the period

10. Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.