3. Significant Accounting Policies
i) Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent asset and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during reporting period.
Examples of such estimates include estimates of expected contract costs to be incurred to complete contracts,
provision for doubtful debts, further obligations under employee retirement benefit plans and estimated useful life
of fixed assets actual results could differ from these estimates. Any changes in estimates are adjusted prospectively.
ii) Revenue Recognition
Revenue from the sale of goods is recognized at the point of dispatch of materials to customers;income from
turnkey services and Consultancy services are accounted on the basis of receipt of the contracts.
iv) Fixed Assets
Fixed Assets of the Company are stated in the books of account and disclosed in annual accounts at Historical Cost,
which includes incidental cost related to acquisition and installation.
v) Inventories
Inventories are valued at lower of cost and net realizable value. Cost is determined on First in First out basis. Cost
includes freight, non-refundable taxes and all other incidental expenses incurred to bring the inventories up to the
Stores.
vi) Depreciation
Depreciation on Fixed Assets is provided using estimated useful life of the assets upto 95% of original cost of assets
at the rates as derived under Schedule II of the Companies Act, 2013.
vii) Taxes on Income
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in
the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted, at the reporting date.
The Accounting Standard 22”- Accounting for taxes on income, requires recognition of Defferred Tax Asset/Liability
based on management estimation of effect reversible timing difference arising out of financial books and tax
computation as per relevant Act. In the opinion of management no material reversible timing differences arise out
of company's financials and it its tax assessment and accordingly no deferred tax Asset or Liability has been
recognised in the books of accounts. The Accounting Standard 22”- Accounting for taxes on income, requires
recognition of Defferred Tax Asset/Liability based on management estimation of effect reversible timing difference
arising out of financial books and tax computation as per relevant Act. In the opinion of management no material
reversible timing differences arise out of company's financials and it its tax assessment and accordingly no deferred
tax Asset or Liability has been recognised in the books of accounts.
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.
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