Basic of brparation of Financial Statements
The financial statements have been brpared under the historical cost convention, on accrual basis of accounting, in conformity with accounting principles generally accepted accounting principles in India. These financial statements have been brpared to comply in all material aspects with the accounting standards notified under the Companies Act 2013.
Use of Estimates
The brparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates & assumptions and such differences are recognized in the period in which the results are crystallized.
Income and Expenditure
Income and Expenditure are accounted for on accrual basis except in case where there is no reasonable certainty regarding the amount/or its collectibility.
Revenue Recognition
Revenue from sale of goods is recognized as and when title of goods passed on to the buyer and dispatch of goods from the factory/godown is completed.
Fixed Assets
Fixed assets are stated at cost net of Modvat/Cenvat wherever availed, less accumulated debrciation. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.
Borrowing cost relating to the qualified assets for the period up to the date of acquisition or completion and adjustments arising from exchange rate variation relating to borrowing attributable to the fixed assets are capitalized. Other borrowing costs are charged to revenue.
Debrciation
Debrciation on fixed assets is provided in the manner brscribed under Schedule-II of The Companies Act, 2013.
Inventories
Inventories of finished goods are valued at cost price or net realisable value whichever is less in accordance with AS-2 as brscribed by ICAI. Cost of inventory includes all taxes and duties excluding duties, which are refundable.
Sales
Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and are booked exclusive of sale tax.
Purchases
Purchases on account of import are inclusive of all the related expenses up to the receipt of material at godown.
Foreign Currency Transactions
Transactions denominated in foreign currencies are normally recorded at the exchange rate brvailing at the time of transaction. The difference in monetary assets and liabilities relating to foreign currencies transactions remaining unsettled at the year end are translated at year end rates and are recognized in the profit & Loss account.
Taxation
Provision for taxation is made for both current and deferred taxes. Provision for current income tax is made on current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statement and in estimating its current tax provisions. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date.
Provision for Bonus
No provision for bonus for the financial year 2015-2016 has been made in the accounts as the same is accounted on cash basis.
Retirement and Leave Encashment Benefits
No provision for gratuity has been made in view of the fact that the company does not have any employee who is eligible for gratuity during the financial year. Other retirement benefits like Provident Fund, ESIC etc are not applicable on the company during the year.
Investments
Current Investments are carried at the lower of cost and quoted / fair value. Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.
Contingent Liabilities
These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies which are likely to recognized into liabilities after the year end, but before finalization of accounts and have material effect on the position stated in the Balance Sheet.

Retirement and Leave Encashment Benefits
No provision for gratuity has been made in view of the fact that the company does not have any employee who is eligible for gratuity during the financial year. Other retirement benefits like Provident Fund, ESIC etc are not applicable on the company during the year.