2. SIGNIFICANT ACCOUNTING POLICIES:
A. Basis of Preparation
Standalone financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015 (as amended from time to time).
The standalone financial statements are presented in Hundreds (').
B. Use of estimates, assumptions and judgements
The preparation of the standalone financial statements in conformity with Ind AS requires the management
to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities on the date of the standalone financial statements and the
reported amounts of revenues and expenses for the year reported.
C. 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, regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, considering contractually defined
terms of payment.
Revenues from sale is recognized on transfer of significant risks and rewards where it is probable that
economic benefits will flow to the Company and there is neither continuing managerial involvement nor
effective control over the goods sold.
Interest income is recognized as it accrues in the statement of profit and loss using effective interest rate
method.
D. Borrowing Costs
Borrowing costs Borrowing cost includes interest, amortization of ancillary costs incurred in connection
with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
E. Retirement and other employee benefits
Short term employee’s benefits are recognized as an expense at the undiscounted amount in the Profit and
Loss account for the year in which related services rendered by the employees to the company.
The company has long term defined benefit plans of which the company has not been obtained the actuarial
valuation. However, these benefits are provided in financial statement on payment basis.
Contributions payable to recognized provident funds, which are defined contribution schemes, are charged
to the statement of profit and loss.
F. Income Taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability
during the year. Current and deferred tax are recognised in the statement of profit and loss, except when
they relate to items that are recognised in other comprehensive income or directly in equity, in which case,
the current and deferred tax are also recognised in other comprehensive income or directly in equity,
respectively.
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