NOTE-1 SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of Preparation
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
1.2 Presentation and Disclosure of Financial Statements
The Company has also reclassified/regrouped the previous year figures in accordance with the requirements applicable in the Current Year.
1.3 Use of estimates
The preparation of Financial Statements requires the Management to make estimates and assumptions considered in the reported amounts of Assets and Liabilities (including Contingent Liabilities) as of the date of the Financial Statements and the reported Income and Expenses during the reporting period. Management belives that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ from these estimates.
1.4 Tangible and Intangible Fixed Assets
Tangible Fixed Assets are stated at Cost of Acquisition including any cost attributable for bringing the Assets to its' working condition, less accumulated Depreciation.
1.5 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Items of Income and Expenditure are recognised on accrual basis.
1.6 Depreciation/Amortisation
Depreciation is provided on tangible assets as per the method prescribed in Schedule - II of Companies Act, 2013.
1.7 Investments
All the Investment sare in the name of the Company. The Investments has been made in the shape of Bank FDRs and Shares in Indian Companies. All the Investments are good and easily realisable in Market.
1.8 Retirement benefits
Gratuity and Leave encashment liability is not provided for, as this will be accounted for on Cash payment basis.
1.9 Income Taxes
Tax on Income for the Current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act, 1961.
Deferred Tax is recognised on timing differences between the Income accounted in Financial Statements and the Taxable Income for the year and quantified using the Tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred Tax Liability has been generated out of timing diferrence in DepffKiqfipiv fOOXou
1/0 Provisions, Contingent Liabilities and Contingent Assets /^/0ComPanyVURN010123C,/glj A provision is recognized if, as a result of a past event, the Compan^aa a present legal obligation that isy^seqably^^able and it is probable that an outflow of economic benefits will be required to kettle the /Obligation. Provisions are^^eyfflQrtj^fy the best estimate of the outflow of economic benefits required to settle jjp^-iSBligation at the reporting date. WfTSre""no reliable estimate can be made, a disclosure is made as contingent liability. X disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no
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1.11 Cash and Bank Balances
Cash and Bank Balances are included in Cash and Cash equivalents in the Balance Sheet.
1.12 Earnings per Share
Basic and Diluted Earnings per Share are computed in accordance with Accounting Standard-20.
1.13 Extraordinary and Exceptional Items
Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the Financial Statements. Similarly, any external event beyond the control of the Company, significantly impacting Income or Expense, is also treated as extraordinary item and disclosed as such.
On certain occasions, the size, type or incidence of an item of Income or Expense, pertaining to the Ordinary activities of the Company, is such that its' disclosure improves an understanding of the performance of the Company. Such Income or Expense is classified as an exceptional Item and accordingly disclosed in the notes forming part of Financial Statements.
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