2 Significant accounting policies
2.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the
Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical
cost convention. This is the first year of business of the company.
2.2 Depreciation and amortisation
Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956
2.3 Revenue recognition
The Company follows accrual method of accounting for all significant items of expenses and income.
2.4 Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of
fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the
date the asset is ready for its intended use and other incidental expenses incurred up to that date.
2.5 Foreign currency transactions and translations
Foreign currency translation in respect of revenue items are stated at actual rates transacted and in
respect of balance sheet items converted at relevant rates as at the end of the accounting year
followed.
2.6 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect
of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income
relating to the dilutive potential equity shares, by the weighted average number of equity shares considered
for deriving basic earnings per share.
2.7 Taxes on income
a) In the current Period, provision for Income Tax of Rs.24,668/- is made.
b) The break-up of net deferred tax asset on account of timing difference as at 31st March, 2015 is shown
in note 11
2.8 Provisions and contingencies
Provisions (excluding retirement benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are
disclosed on the basis of information available with the Company.
2.9 Insurance claims
Insurance Claims are accounted for on the basis of actual loss assessed, as and when finally settled and
received.
2.10 Balances with third parties
Balances of Sundry Debtors, Creditors, Loans, Deposits, Advances are subject to confirmation
reconciliation and adjustments, if any.
2.11 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial
statements. This has significantly impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond
with the current year's classification / disclosure.
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