i. Significant Accounting Policies
(a) Property, plant and equipment
i. Recognition and Measurement
Items of property, plant and equipment are measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation and accumulated impairment losses, if any.
Cost of an item of property, plant and equipment comprises its purchase price, including
import duties and non-refundable Purchase taxes, after deducting trade discounts and rebates,
any directly attributable cost of bringing the item to its working condition for its intended use
and estimated costs of dismantling and removing the item and restoring the site on which it is
located.
The cost of a self-constructed item of Property, plant and equipment comprises the cost of
materials and direct labour, any other costs directly attributable to bringing the item to
working condition for its intended use, and estimated costs of dismantling and removing the
item and restoring the site on which it is located.
If significant parts of an item of property, Plant and equipment have different useful lives, then
they are accounted for as separate items (major components) of property, plant and
equipment.
Any gain or loss on disposal of an item of Property, plant and equipment is recognised in profit
or loss.
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ii Subsequent Expenditure:
Subsequent expenditure is capitalised only if it is probable that the future economic
benefits associated with the expenditure will flow to the Company.
iii Depreciation:
Depreciation is calculated on cost of items of Property, plant and equipment less their
estimated residual values over their estimated useful lives using the straight-line method
and is recognised in the statement of . profit and loss.
The estimated useful lives of items of property, plant and equipment for the current and
comparative periods are as follows:
Depreciation method, useful lives and residual values are reviewed at each financial year-
end and adjusted if appropriate. Based on internal assessment and consequent advice, the
management believes that its estimates of useful lives as given above best represent the
period over which management expects to use these assets.
Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (up to) the
date on which asset is ready for use (disposed off).
(b) Intangible Assets : The company does not own any intangible assets as at the Balance
Sheet date.
(d) Foreign Currency Transactions : During the year under review the company did not
have any Foreign Currency Transactions.
(e) Impairment of Non-Financial Assets:
An asset is deemed impairable when recoverable value is less than its carrying cost and the
difference between the two represents provisioning exigency. Recoverable value is the
higher of the 'Value in Use' and fair value as reduced by cost of disposal. Test of impairment
of assets are generally undertaken based on indication of impairment, if any, from external
and internal sources of information.
(f) Employee Benefits:
(a) Short Term Employee Benefits:
Short-term employee benefit obligations are measured on an undiscounted basis and
are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid e.g., under short-term cash bonus, if the Company has a present
legal or constructive obligation to pay this amount as a result of past service provided by
the employee, and the amount of obligation can be estimated reliably.
(b) Defined Contribution Plans:
A defined contribution plan is a post-employment benefit plan under which an entity
pays fixed contributions into a separate entity and will have no legal or constructive
obligation to pay further amounts, the Company makes specified monthly contributions
towards Government administered provident fund and Employee State Insurance
Scheme. Obligations for contributions to defined contribution plans are recognised as an
employee benefit expense in profit or loss in the periods during which the related
services are rendered by employees. Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in future payments is available.
(c ) Defined benefit plans:
A defined benefit plan is a post-employment benefit plan other than a defined
contribution plan. The Company's net obligation in respect of defined benefit plans is
calculated by estimating the amount of future benefit that employees have earned in
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the current and prior periods, discounting that amount and deducting the fair value of
any plan assets.
The calculation of defined benefit obligation is performed annually by a qualified
actuary using the projected unit credit method.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and
losses are recognised in OCI. The Company determines the net interest expense
(income) on the net defined benefit liability (asset) for the period by applying the
discount rate used to measure the defined benefit obligation at the beginning of the
annual period to the then-net defined benefit liability (asset)' taking into account any
charges in the net defined benefit liability (asset) during the period as a result of
contributions and benefit payments. Net interest expense and other expenses related to
defined benefit plans are recognised in Profit or loss.
When the benefits of a plan are changed or when a plan is curtailed' the resulting
change in benefit that relates to past service ('past service cost' or 'past service gain' or
the gain or loss.on curtailment is recognised immediately in Profit or loss, the Company
recognises gains and losses on the settlement of a defined benefit plan when the
settlement occurs
(d ) Other long-term employee benefits:
The Company's net obligation in respect of long term employee benefits other than
post- employment benefits is the amount of future benefit that employees have earned
in return for their service in the current and prior periods; that benefit is discounted to
determine its present value The obligation is measured on the basis of an annual
independent actuarial valuation using the Projected unit credit method.
Remeasurements gains or losses are recognised in Profit or loss in the period in which
they arise. *
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