Note: 2. Significant Accounting Policy
2.1 Basis of preparation of financial information
a) The accounts have been prepared in accordance with Indian Accounting Standards (“Ind AS") and disclosures thereon comply with the
requirements of IND-As, stipulations contained in Schedule-Ill (revised) as applicable under Section 133 of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts) Rules 2014, Companies (Indian Accounting Standards) Rules 2015 as amended form time to time, other
pronouncement of ICAI, provisions of the Companies Act and Rules and guidelines issued by SEBI as applicable.
b) The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. The
presentation of financial statement is based on Ind AS Schedule III of the Companies Act, 2013.
c) The financial statements have been prepared under the historical cost convention on accrual basis.
2.2 Historical Cost Convention
The financial statements are prepared on accrual basis of accounting under historical cost convention in accordance with generally accepted
accounting principles in India and the relevant provisions of the Companies Act, 2013 including Indian Accounting Standards notified there under,
except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting
policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
i. Defined benefit plan-plan assets measured at fair value.
ii. Certain financial assets and liabilities.
2.3 Use of Estimates
The preparation of financial statements is in conformity with generally accepted accounting principles which require the management of the
Company to make judgements, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and
disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based upon the management’s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the
carrying amounts of assets or liabilities in future period. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates.
2.4 Current versus non-current classification
The entity presents assets and liabilities in the balance sheet based on current/ non-current classification:
An asset is classified as current, when:
a) It is expected to be realised or intended to be sold or consumed in normal operating cycle, b) It is held primarily for the purpose of trading, c) It
is expected to be realised within twelve months after the reporting period, or d) It is 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 classified as current, when:
a) It is expected to be settled in normal operating cycle, b) It is held primarily for the purpose of trading, c) It is due to be settled within twelve
months after the reporting period, or d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period. The entity classifies all other liabilities as non-current. Deferred tax assets and liabilities are always classified as noncurrent
assets and liabilities
2.5 Summary of Significant Accounting Policies
a) Valuation of Inventories
Consumables etc. are valued at lower of the cost or net realizable value applying the First in First out Method (FIFO).
b) Depreciation
Depreciation on Tangible fixed assets other than land is charged on straight line method so as to write off the cost/carrying amount of assets.
The useful life of assets as prescribed under Part C of Schedule II of the Companies Act 2013 and depreciation is charged on that are on the
following basis:
1. Depreciation on All Assets is charged at Straight Line Method basis in the manner as prescribed in Companies Act 2013 and rate as per
prescribed useful life
2. Intangible assets are amortized over a period of 5 year on a straight-line basis.
2.6 Recognition of Income & Expenses
All items of Incomes and expenses have been accounted for on accrual basis.
Borrowing Cost
Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date
when such assets is ready for its intended use.
Other borrowing costs are charged to the Profit & Loss Account.
Revenue Recognition
The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant
uncertainties and in accordance with accounting standards applicable.
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