1 COMPANY OVERVIEW
The Company is engaged in the business of
Electrical Machinery for Indian Railways
and allied products
2 SIGNIFICANT ACCOUNTING POLICIES
a) General
The financial statements have been
prepared to comply in all material respects
with the mandatory Accounting
Standards applicable under Rule 2 of
Companies (Accounting Standards) Rules,
2021 to the extent applicable and
the relevant provisions of the Companies
Act, 2013.
The equity shares of the company listed on
SME Stock Exchange as referred in chapter
XB of the SEBI (Issue of Capital and
Disclosure requirements) Regulations,
2009 and hence exempted from
compulsory adoption of Ind AS
for preparation of financial statements
vide notification dated 16th February,
2015 issued by the Ministry of
Corporate Affairs.
The financial statements have been
prepared under the historical cost
convention on an accrual basis. The
accounting policies have been consistently
applied by the Company and except for
the changes in accounting policy
discussed more fully below, are consistent
with those used in the previous year. The
Company presents assets and liabilities in
the balance sheet based on current/non-
current classification. An
asset is treated as current when it is: -
- Expected to be realized or intended to be
sold or consumed in normal operating
cycle
- Held primarily for purpose of trading
- Expected to be realized within twelve
months after the reporting period, or
- cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve
months after the reporting period.
All other assets are classified as non¬
current.
A liability is current when:
- It is expected to be settled in normal
operating cycle
- It is held primarily for purpose of trading
- It is due to be settled within twelve
months after the reporting period, or
- There is no unconditional right to defer
the settlement of the liability for at least
twelve months after the
reporting period
All other liabilities are classified as non
current.
Deferred tax assets and deferred tax
liabilities are classified as non-current
assets and liabilities.
The operating cycle is the time between
the acquisition of assets for processing and
their realization in cash and
cash equivalents. The Company has
identified twelve months as its operating
cycle.
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