1. MATERIAL ACCOUNTING POLICIES :
1.1 Basis of Accounting
The financial statements have been prepared to comply in all material aspects with the
applicable accounting principles in India, the applicable accounting standards notified under
section 133 of the Companies Act 2013 and other relevant provisions thereof. The accounts of
the company are prepared under the historical cost convention using the accrual method of
accounting. The accounting policies applied for preparing the financial statements are consistent
with those of the previous year.
Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to tim.
There are no new standards or amendments to the existing standards that are notified impacting
the financial statements of the Company.
1.2 Revenue Recognition
Sales are recognised upon raising of invoice and transfer of significant risk and rewards of the
ownership to the buyer. Interest income is accounted for on receipt basis. Dividend income on
investments is accounted for when the right to receive the payment is established.
1.3 Expenditure
Expenses are accounted for on accrual basis and provision is made on estimate for all known
liabilities and losses.
1.4 Property Plant & Equipment & Depreciation
Property Plant & Equipment are stated at cost less accumulated depreciation. The company
capitalises all direct costs relating to the acquisition and installation of Property Palnt &
Equipment. Depreciation on Property Plant & Equipment is provided on WDV method on pro
rata basis at the rates specified in the schedule II of the Companies Act 2013. At each balance
sheet date the company reviews the carrying value of its Property Plant & Equipment for any
possible impairment. No impairment was observed during the year under review.
1.4A De-recognition:
All items of Property Plant & Equipment (PPE) is de-recognised on disposal, or when no future
economic benefit or expected from use. Gain or loss arising from derecognition of PPE
measured as the difference between the net disposal proceeds and the carrying amount of the
asset are recognised in the statement of Profit and Loss where the asset is de recognized.
1.5 Inventories
Inventories are Valued at Cost or Net Realisable Value whichever is lower, on FIFO basis.
1.6 Investments
Investments are long term- non current investment. These are stated at cost of acquisition. Any
diminution in value, which is of permanent nature is recognised by charging the estimated loss
to the statement of Profit and loss. Any diminution in value of temporary nature is not
recognised.
1.7 Employee Benefits
The provisions of the PF and ESI Act are not applicable to the company as the number of
employees are below the prescribed statutory limit. Termination benefits are recognised as an
expense as and when incurred.
1.8 Taxation
Current tax is the amount of tax payable in respect of taxable income for the year as determined
in accordance with provisions of the Income tax Act 1961 as applicable for the year. Deferred
tax is recognised on timing difference, being the difference between the taxable income and the
accounting income that originate in one period and are capable of reversal in one or more
subsequent periods.
1.9 Cash and Cash Equivalents.
Cash and cash equivalents includes cash in hand, demand deposits with banks and other short
term highly liquid investments with original maturities of three months or less.
1.10 Earnings Per Share
Basic earnings per share is calculated by dividing the net profit for the period attributable to the
shareholders by weighted average number of equity shares outstanding during the period.
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