A. Basis of Preparation of Financial Statements
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.
The accounting policies have been applied consistently to all periods presented in these
financial statements.
B. Basis of Measurement
These financial statements have been prepared on a historical cost convention and on an
accrual basis, except for certain assets and liabilities which have been measured at fair value as
per Ind AS.
The financial statements are presented in Indian Rupees (INR) and all values are rounded to
the nearest Lakhs.
C. Use of Estimates
The preparation of financial statements in conformity with Ind AS requires management to
make estimates, judgments' and assumptions (including revisions, if any). These estimates,
judgments and assumptions affect the application of accounting policies and reported amounts
of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial
statements and the reported amounts of revenue and expenses during the period.
Appropriate changes in the estimates are made as management becomes aware of changes in
circumstances. Changes in the estimates are reflected in the financial statements in the period
in which changes are made.
D. Revenue Recognition
Revenue is recognized by the company when the company satisfies a performance obligation
by transferring a promised good or service to its customers. Asset/goods/services are
considered to be transferred when the customer obtains control of those asset/goods/services.
Revenue comprises the fair value of the consideration received or receivable for the sale of
goods and services in the ordinary course of the Company's activities. Revenue is shown net of
GST, returns, rebates and discounts.
Revenue is recognized when the significant risks and rewards of ownership of the products
have passed to the buyer, which is considered to be upon delivery under the contractual terms,
and when the amount of revenue can be measured reliably.
E. Property, Plant and Equipment
Property, Plant and Equipment are stated at cost net of GST, if any and subsequently at cost less
depreciation and impairment losses if any.
Depreciation on all assets is provided on the “Written Down Value Method” at the rates and in
the manner prescribed under Schedule II to the Companies Act, 2013. The residual values,
useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate. Gains or losses arising from de¬
recognition of a property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Statement of
Profit and Loss when the asset is de-recognized.
Individual low-cost assets (acquired for Rs. 5,000/- or less) are depreciated at 100 % in the
year of acquisition/ purchase.
The residual values are not more than 5% of the original cost of the asset.
The Management estimates the useful lives for fixed assets as follows:
i) Computer - 3 Years
ii) Furnitures & Fixtures - 10 Years
iii) Vehicle - 10 Years
F. Impairment
As at the end of each Balance Sheet date, the carrying amount of assets is assessed as to whether
there is any indication of impairment. If the estimated recoverable amount is found less than
its carrying amount, the impairment loss is recognized and assets are written down to their
recoverable amount.
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