1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared on accrual basis under historical cost convention as a going concern. The financial statements are
prepared in Indian rupees.
These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India including the mandatory
Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013.
Accounting policies have been consistently applied except where newly-issued accounting standards is initially adopted ora revision to an
existing accounting standard requires a change in the accounting policy hitherto in use.
2. USES OF ESTIMATES
The preparation of financial statements in conformity with Accounting Standards issued by the Institute of Chartered Accountants of India
requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of
contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting
period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.
3. FIXED ASSETS
Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and
adjushnents arising from exchange athibutable to the assets.
Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization /depletion and impairment loss,
if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition
for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to
the intangible assets.
4. DEPRECIATION, AMORTISATION AND DEPLETION
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the written Down Value (WDV) Method.
5. TAXATION
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflects the current period timing differences between taxable income and accounting
income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that
there is a reasonable certainty that sufficient future income v/ill be available except that deferred tax assets, in case there are unabsorbed
depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.
Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the
Balance sheet date.
Current tax is determined as the amount of tax payable to the taxation authorities in respect of taxable income for the period.
6. EMPLOYEE BENEFITS
In the opinion of the management the provision for retirement benefits are not applicable at present and hence no provision is made in
the accounts of the company.
7. REVENUE RECOGNITION
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and
sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts Dividend income is recognized
when the right to receive payment is established.
8.MISCELLANEOUS EXPENSES
Miscellaneous expenses are amortized over a period of Five Years.
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