3. 3. Summary of significant accounting policies.
A. Use of Estimates
The preparation of financial statements in conformity with the Generally Accepted Accounting Principles requires. The management
has made estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities
at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based
upon management's best knowledge of current events and actions. Therefore, the actual results could differ from these estimates.
Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.
B. Revenue Recognition
Revenue is recognized only on the basis of its certainty to received and right of its recognition
i) Income from investment is accounted when right to receive of such income is established.
ii) For other incomes, the company follows the accrual basis of accounting except:
(a) Where there is no reasonable certainty regarding the amount and / or its collectivity.
(b) Dividend Income is recognized as and when it has received
C. Inventories
Inventories are valued at lower of cost (computed on FIFO method) and Estimated Net Realizable value, after providing for cost of
obsolescence and other costs in bringing the inventories to their present location and condition.
D. Investments
Long-term investments are stated at cost. Provision for diminution in the value of long term investment is made only if, such a decline
is other than temporary in the opinion of the management. The Current investments are stated at lower of cost or quoted/fair vale
market value computed category wise.
E. Fixed ,Intangible Assets & Borrowing Cost
(i) Fixed Assets are stated at their original cost, less provision for impairment losses, if any ,depreciation , amortization and
adjustments on account of foreign exchange fluctuations in respect of changes in rupee liability of foreign currency loans used for
acquisition of fixed assets.
(ii) There is no Intangible Assets.
(iii) The borrowing cost such as interest, processing fee etc are recognized in accordance with principal laid down in the
Accounting Standard 16. Cost of borrowing related to General borrowing is charged to Profit and loss account.
F. Depreciation &Amortization
Depreciation on tangible assets is provided based on the useful lives prescribed under Part C of Schedule II of the Companies Act
2013. Accordingly the remaining life of Assets are considered after adjusting already lapsed life of assets, from the life prescribed
under the new Companies Act. Accordingly depreciation calculated as per new provision.
G. Cash & Cash equivalent
Cash and cash equivalents comprise cash and cash or deposit with banks and corporations. The company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to know amounts
of cash to be cash equivalents.
H. Employee Benefits
Company has complied with all labour laws.
I. Accounting for taxes for income
Deferred Tax :- Deferred tax is provided on timing differences between tax and accounting treatments that originate in one period and
are expected to be reversed or settled in subsequent periods. Deferred tax assets and liabilities are measured using the
enacted/substantively enacted tax rate for continuing operations .Adjustment of deferred tax liability attributable to change in tax rate is
shown in the statement of profit and loss as a part of the deferred tax adjustment for the year.
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