A. Basis of Compliance
The financial statements comply, in all material aspects, with Indian Accounting Standards
(‘Ind AS’) notified under Section 133 of the Companies Act, 2013 (‘the 2013 Act’) read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant
provisions of the Act.
B. Basis of Preparation:-
The financial statement has been prepared under the historical cost conventional accrual basis
of accounting. Historical cost is generally based on the fair value of the consideration given
in exchange for goods and services. 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.
These financial statements are prepared in accordance with Indian Accounting Standards (Ind
AS), the provisions of the Companies Act, 2013 (“The Companies Act”), as applicable and
guidelines issued by the Securities and Exchange Board of India (“SEBI”). The Ind AS are
prescribed under section 133 of the Act read with rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016.
C. USE OF ESTIMATES
The preparation of financial statements are in conformity with the recognition and
measurement principles of Ind AS requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
on the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates. Any revision to
accounting estimates is recognized prospectively in current and future periods. Examples of
such estimates include provisions for doubtful debts, provision for income taxes and the
useful lives of property, plant and equipment.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and
future periods are affected.
Key source of estimation at the date of the financial statements, which may cause a material
adjustment to the carrying amounts of assets and liabilities, within the next financial year, is
in respect of percentage of completion of contracts and recognition of probable loss, useful
lives of property, plant and equipment, provision for income tax and valuation of deferred tax
assets, and other provisions and contingent liabilities.
1. PROPERTY, PLANT AND EQUIPMENT
a. Property, plant and Equipment are stated at costs less accumulated depreciation and
impairment loss, if any.
b. Directly identified expenses are being capitalized. All other allocable expenses during the
period of construction for the project are being capitalized proportionately on the basis of the
value of assets on date of production.
2. DEPRECIATION
a. Depreciation on property, plant and equipment has been provided in the books of accounts, as
per the rates prescribed in schedule II of the companies Act, 2013 as per Straight Line
Method.
b. Depreciation on additions to and deductions from property, plant and equipment is being
provided on pro-rata basis from /to the date of acquisition/disposal.
3. RECOGNITION OF INCOME AND EXPENDITURE
a. Mercantile method of accounting is employed. However where the amount is immaterial /
negligible and / or establishment of accrual / Determination of amount is not possible, no
entries are made for the accruals.
b. Interest on allotment/call/refund money is accounted for on cash basis
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