2 Significant Accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
i Basis of preparation of Accounts
The Financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (ind-AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards)(Amendment) Rules, 2016 (as amended) .
ii The financial statements have been prepared under the historical cost convention in accordance with
the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of
the Companies Act, 2013, as adopted consistently by the Company. All income and expenditure having
the material bearing on the financial statements are recognized on accrual basis.
iii Use of Estimates
The preparation of financial statements in confirmity with generally accepted accounting principles
requires estimates and assumptions to be made that affect, the reported amount of assets and libilities
on the date of financial statements and a reported amount of revenues and expenses during the
reporting period. Difference between the actual expenses and estimates is recognised in the period in
which the results are known/materialised.
iv Property, Plant & Equipment
Property, Plant & Equipment are stated at cost, less accumulated depreciation. Cost comprises the
purchase price, including duties, legal fees, other non-refundable taxes or levies directly attributable
cost of bringing the assets to its working condition.
v Depreciation and Amortisation
Depreciation has been provided on 'Written down value method' at the rates specified in schedule II of
the
Companies Act, 2013.
vi Investments
Investments are classified into Current and Long-term Investments. Current Investments are stated at
lower of cost and 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.
vii Revenue Recognition
a) Revenue/Incomes and Cost/Expenditure are generally accounted on accrual, as they are earned
or incurred.
b) Dividend incomes are recognised in profit or loss only when the right to receive payment is
established, it is probable that the economic benefits associated with the dividend will flow to the
Company, and the amount of the dividend can be measured reliably.
viii Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance
with the provisions of the Income Tax Act, 1961.
Deferred tax is recognised, on the timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of reversal in one or more subsequent
periods.Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are
recognised if there is virtual certainty that there will be sufficient future taxable income available to
realize such losses.
ix Earnings per Share
Basic earnings per share is computed by dividing the net profit after tax by the average number of
equity shares outstanding during the period.
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