1 Basis of Preparation:
The Financial Statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (IGAAP) under historical cost
convention on the accrual basis. GAAP comprises mandatory accounting standards prescribed by the Companies (Accounting Standards) Rules,
2021.
2 Use of Estimates:
The preparation of the financial statements in conformity with Generally Accepted Accounting Principles requires the Management to make estimates
and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of
the financial statements and the reported amounts of income and expenses during the year. Examples of such estimates include provisions for
doubtful debts, income taxes, and the useful lives of Property Plant and Equipments and intangible assets.
3 Revenue Recognition:
Revenue in respect of the Manpower supply, recruitment and related service provided is accounted on accrual basis except where the receipt of
income is uncertain.
Interest income is recognized on accrual basis, adopting a time proportion method, taking into account the amount outstanding and the rate
applicable. Dividend income on investments is accounted for when the right to receive the income is established. Export incentives are recognised on
accrual basis to the extent the management is certain of the income.
Other Income : Other items of income and expenditure are recognized on accrual basis and as a going concern basis, and the accounting policies are
consistent with the generally accepted accounting policies.
Dividend Income : Dividend Income is recognised when the owners right to receive payment is established.
4 Property, Plant and Equipment including Intangible Assets:
Property Plant and Equipments are stated at cost, less accumulated depreciation. Cost includes cost of acquisition including material cost, freight,
installation cost, duties and taxes, and other incidental expenses, incurred up to the installation stage, related to such acquisition.
Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less
any accumulated amortisation and any accumulated impairment loss.
Depreciation is provided under the 'Written Down Value' method as per the useful life specified in Schedule II to the Companies Act, 2013. Residual
values of assets are measured at not more than 5% of their original cost. For assets added or disposed during the year, depreciation is charged on pro¬
rata basis from the date of addition or till the date of disposal.
5 Depreciation & Amortisation:
The Company has applied the estimated useful lives as specified in Schedule II of the Companies Act 2013 and calculated the depreciation based on
useful life of assets. Depreciation on new assets acquired during the year is provided from the date of acquisition to the end of the financial year. In
respect of the assets sold during the year, depreciation is provided from the beginning of the year till the date of its disposal.
6 Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An
impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the
asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. Net selling price is the amount
obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.
7 Foreign Currency Transactions:
Domestic Operation:
I. Initial Recognition :
A foreign currency transactions are recorded, on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange
rate between the reporting currency and the foreign currency at the date of the transaction.
II. Measurement:
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of
the transaction
Non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates
that existed when the values were determined.
III. Treatment of Foreign Exchange :
Exchange differences arising on settlement/restatement of foreign currency monetary assets and liabilities of the Company are recognised as income
or expenses in the Statement of Profit and Loss
8 Employee Benefits:
Post-Employment Benefits:
Defined Benefit Plan:
Short-term employee Benefits
Benefits such as salaries, wages and performance incentives are charged to the statement of profit and loss at the actual amounts due in the period in
which the employee renders the related service.
Defined Contribution Plans
Payments made to defined contribution plans such as provident and pension fund are charged as an expense based on the amount of contribution
required to be made as and when services are rendered by the employees.
Defined Benefit Plans
All defined benefit plans obligations are determined based on valuations, as at the Balance Sheet date, made by independent actuary using the
projected unit credit method. Actuarial gains and losses are recognised immediately in the statement of profit and loss. The fair value of the plan
assets is reduced from the gross obligation under the defined benefit plan, to recognise the obligation on net basis.
Other Long-term Employee Benefits
Other long-term employee benefits include leave encashment. Leave encashment is recognised as an expense in the statement of profit and loss as
and when it accrues on actuarial basis.
9 Taxes on Income:
Income Tax expense is accounted for in accordance with AS-22 "Accounting for Taxes on Income" for both Current Tax and Deferred Tax stated
below:
A. Current Tax:
Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.
B. Deferred Tax:
Deferred tax is recognised, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting
income computed for the current accounting year using the tax rates and tax laws that have been enacted or substantially enacted by the balance sheet
date.
Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation
and carried forward losses, that sufficient future taxable income will be available against which such deferred tax assets can be realised.
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