SIGNIFICANT ACCOUNTING POLICIES :
1.1 Basis for preparation of financial statements
These Standalone Financial statements have been prepared in accordance with Accounting Standards and
Generally Accepted Accounting Principles (GAAP), under the historical cost conventions on accrual basis, the
provisions of of Companies Act, 2013 (“the Act”) (to the extent notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI). The AS are prescribed under Section 133 of the Act read with Companies
(Accounting Standard) rules.
1.2 Uses of Estimates
The preparation of the Standalone financial statements in conformity with AS requires the Management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of
accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and
liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.
Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the Standalone financial statements.
1. Revenue Recognition
Revenue from Sale of Goods:
Revenue from sale of goods is recognized when control of goods is transferred to the customers at an amount
that reflects the consideration to which the company expects to be entitled in exchange for those goods or
services. The company assesses the promises in the contract that are separate performance obligations to which
a portion of transaction price is allocated. Revenue is measured based on transaction price as specified in the
contract with the customer. It excludes taxes or other amounts collected from customers in its capacity as an
agent.
Interest Income:
Interest income is recognized as and when it is accrued or received, whichever is earlier.
Other Income
All other income is accounted on accrual basis when no significant uncertainty exists regarding the amount that
will be received.
2. Income Taxes
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting
date
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or
simultaneously.
Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is also recognized in respect of carried forward tax losses and tax credits. Deferred income tax assets and
liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax
assets and liabilities is recognized as income or expense in the period that includes the enactment or the
substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set
off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle
the liability simultaneously.
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