Note 2: SIGNIFICANT ACCOUNTING POLICIES:
2.1: STATEMENT OF COMPLIANCE
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting
Standards) Rules, 2015] and other relevant provisions of the Act.
2.2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost basis except for certain financial
instruments that are required to be measured at fair value by Ind AS.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date, regardless of whether that price
is directly observable or estimated using another valuation technique.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2,
or 3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Ý Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
Ý Level 2: Inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
Ý Level 3: Inputs are unobservable inputs for the asset or liability.
2.3. USE OF ESTIMATES
The preparation and presentation of financial statements requires the management to make estimates,
judgements and assumptions that affect the amounts of assets and liabilities reported as on the date
of financial statements and the reported amount of revenues and expenses during the reporting
period. Accounting estimates could change from period to period. Actual results could differ from these
estimates. Appropriate changes in estimates are made as and when the Management becomes aware
of the changes in the circumstances surrounding the estimates. Changes in estimates are reflected in
the financial statements in the period in which the changes are made and if material, their effects are
Information about significant areas of estimation, uncertainty, and critical judgements in applying
accounting policies that may have significant impact on the amounts recognized in the financial
statements are as below:
Ý Useful lives of property, plant & equipment: The Company reviews the useful life of property,
plant and equipment and intangible assets at the end of each reporting period. This
reassessment may result in change in depreciation and amortisation expense in future periods.
The details of the same has been mentioned in below notes to the standalone financial
statements.
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