(a) Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention In accordance with the generally accepted accounting principles In India and the provisions of the Companies
Act, 2013.
(b) Revenue recognition:
Revenue from project income and trading activity is recognised when the substantial risks and rewards of ownership are transferred to the buyer under the terms of the contract and a
reasonable expectation of collection of the sale consideration from the customer exists.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend income is recognised when right to receive is established.
(c) Use of estimates:
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are
known/ materialised.
(d) Property, plant and equipment:
Property, plant and equipment are stated at cost net of recoverable taxes, trade discount and rebates, less accumulated depreciation and impairment losses, if any. Cost comprises the
purchase price, including duties and other non-refundable taxes or levies and directly attributable cost of bringing the asset to its working condition and indirect costs specifically
attrbutable to construction of a project or to the acquisition of fixed asset. Subsequent expenditure related to an item of tangible asset are added to its book value only if they increase the
future benefits from the existing asset beyond its previously assessed standard of performance. Assets retired from active use are carried at lower of book value and estimated net
realisable value.
(e) Depreciation and amortisation:
i) The Company provides for depreciation on tangible assets to the extent of depreciable amount on written down value method. Depreciation is provided based on useful life and residual
value of the assets as prescribed in Schedule II to the Companies Act, 2013.
ii) The Company depreciates its fixed assets over the useful life and adopting the residual value in the manner prescribed in Schedule II to the Companies Act, 2013
ii) Depreciation on additions to assets or on sale/discardment of assets is provided on pro rata basis from the month in which assets have been put to use, up to the month prior to the
month in which assets have been disposed off. Depreciation on additions to assets is provided over the residual life of the respective asset.
(f) Impairment of assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impared. The impairment loss recognised in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.
(g) Investments:
Investments (If any) are classified Into current and long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A
provision for diminution Is made to recognise a decline, other than temporary, In the value of long-term investments.
(h) Inventories:
The Inventories are valued at lower of cost or net realisable value, using first In first out formula. Cost of Inventories comprises of cost of purchase and development costs Incurred In
bringing them to their respective present location and condition. Work-in-progress and finished units are valued after considering direct overheads.
The inventories are valued at lower of cost or net realisable value, using first In first out formula. Work-in-progress Is valued after considering all the overheads.
(i) Foreign currency transactions:
I) No Foreign currency transactions took place during the year. There are not foreign exchange earnings and outgo during the year.
(j) Employee benefits:
Wages, salaries, paid annual leave, sick leave and bonuses are accrued In the year In which the services are rendered by the employees. The company does not permit accumulating of
unused leaves. The company does not provide any long-term employee benefits except gratuity.
The contributions to defined contribution plans are charged to the statement of profit and loss.
Graturity provision has been made as per gratuity act as on financial statement date
(k) Borrowing cost:
Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset Is one that necessarily takes
substantial period of time to get ready for Its Intended use. All other borrowing costs are charged to revenue.
(l) Taxation:
Provision for current tax Is made after taking Into consideration benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from timing difference between taxable Income and accounting Income Is accounted for using the tax rates and laws that have been enacted or substantially
enacted as on the balance sheet date. The deferred tax asset Is recognised and carried forward only to the extent that there Is a reasonable certainty that the assets will be realised In
future., Deferred tax has been calculated on the basis of timing difference of Depreciation, Preliminary Expenss and Gratuity Provisions.- Detailed Nobs Attached as annexure.
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