18) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
i. Basis of preparation of financial statements
The standalone financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Indian Accounting Standards) notified under the Companies (Indian Accounting Standards) Rules, 2015 read
with Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company has prepared these financial
statements to comply in all material respects with the accounting standards notified under section 133 of the Companies
Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting
Standards) Amendment Rules, 2016.
The standalone financial statements have been prepared on an accrual basis.
(The accounting policies have been consistently applied by the Company during the year end and are consistent with
those used in the previous period, except where disclosed otherwise, with those of previous year.)
The accounting policies adopted in the preparation of standalone financial statements are consistent with that of [previous
year, except for the change in accounting policy explained below:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
/ In the principal market for the asset or liability, or
/ In the absence of a principal market, in the most advantageous market for the asset or liability
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy, described as follows:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable
• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
ii. Use of estimates:
The preparation of the financial statements requires the management to make judgments, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of the contingent liabilities, at
the end of the reporting period.
Although these estimates are based on the management's best knowledge of the current events and actions, uncertainty
about these assumptions and estimates could result in outcomes requiring a material adjustment to the carrying amounts
of the assets or liabilities in the future period.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized prospectively in the year in which the estimate is revised and/or in future years, as applicable.
iii. Taxes on Income:
• Provision for current taxation is made based on the liability computed in accordance with the relevant tax rates and tax
laws.
• Provision for Deferred Tax is made for timing differences arising between the taxable incomes and accounting income
computed using the tax rates and the laws that have been enacted or substantively enacted as on the balance sheet
date.
• Deferred Tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income
available to realize such assets.
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