A. Basis of Preparation of financial statements
The Company maintains its accounts on accrual basis following the historical cost convention in
accordance with generally accepted accounting principles ["GAAP"] in India. GAAP comprises
mandatory accounting standards as prescribed under section 133 of Companies Act, 2013 (the Act)
read with Rule 7 of Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent
notified). Accounting policies have been consistently applied except where a newly-issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
B. Use of estimates
The preparation of the financial statements in conformity with Indian GAAP requires the Management
to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which the results are known /
materialize.
C. Revenue Recognitions
• Income from sales is recognized as and when sales are complete during the accounting year.
• Revenue in respect of all other income is recognized when a reasonable certainty as to its
realization exists.
D. Employee Benefits
All Employees benefits falling due wholly within twelve month of rendering the services are classified
as short term employee benefits which include benefits like salary, wages, short term compensated,
absences and performance incentives and are recognized as expense in the period in which the
employee renders the related services.
E. Material events after balance sheet date
Events which are of material nature after the balance sheet date are accounted for in the accounts.
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