(I) Basis of Preparation
These financial statements are Separate Financial Statements as per Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) - Separate
Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act
read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,
2016.
These financial Statements are prepared under the historical cost convention and on the accrual basis except stated otherwise.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto in use.
(II) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and
assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and
liabilities, the disclosures of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses
during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes
in estimates are made as management becomes aware of circumstances surrounding the estimates. Changes in estimates are reflected in the
financial statement in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
(III) Summary of Significant Accounting Policies
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company
has identified twelve months as its operating cycle.
(a) Current and Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other
criteria set out in the Schedule III to the Act.
(b) Property, Plant and Equipment
(i) Capital Work In Progress represents expenditure incurred on capital assets that are under construction or are pending capitalisation and
includes Project expenses pending allocation. Project expenses pending allocation are apportioned to the property, plant and equipment of the
project proportionately on capitalisation.
(ii) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount
of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.
(iii) The residual useful life of Property is reviewed at each balance sheet date and adjusted if required in the depreciation rates.
(iv) Property, Plant and Equipment are stated at cost, less accumalated depreciation and impairment losses if any. Cost comprises purchase price
and any attributable cost of bringing the asset to its working condition for its intended use.
(v) Depreciation methods, estimated useful lives and residual value:
Depreciation on all assets of the Company is charged on straight-line method over the useful life of assets mentioned in Schedule II to the
Companies Act ,2013 or the useful life previously assessed by the management based on technical review whichever is lower for the proportionate
period of use during the year.
(c) Intangible Assets
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual
estimated useful lives on a straight-line basis, from the date that they are available for use.
The management has estimated the economic useful life for the intangible assets as follows:
Assets Estimated Useful Life (Years)
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Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the Statement of Profit or Loss when the asset is derecognised.
(d) Borrowings
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for their intended use or sale. Other Borrowing costs are expensed in the period in which
they are incurred.
(e) Impairment Loss
Assets subject to amortization/ depreciation are tested for impairment provided that an event or change in circumstances indicates that their
carrying amount might not be recoverable. An impairment loss is recognized in the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher between an asset’s fair value less sale costs and value in use.
(f) Inventories
Traded Goods are valued at lower of purchase cost and net realizable value. Cost is determined on First-in-First-out basis.
(g) Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, demand deposits in banks and other short-term highly liquid investments with original maturities
of three months or less. Bank overdrafts are shown within bank borrowings in current liabilities on the balance sheet.
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