| 1. Basis of preparation of Financial statements
The financial statements are prepared under the historical cost
conversion, except for certain fixed assets which are revalued, in
accordance with the generally accepted accounting principles in India
and the provision of the Companies Act 1956.
2. 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 revenue and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized
3. Own Fixed Assets (Tangible)
Fixed: Assets are stated at cost. Depreciation of Fixed Assets is
recognized in Accumulated Depreciation Account. All cost, includes
financing cost till commencement of commercial production.
4. Depreciation and Amortization
Depreciation on fixed Assets is determined on the straight line method
at the rate and the manner prescribed under the companies Act. 2013.
5. Foreign currency Transactions
Transactions denominated in foreign currencies are recorded dt the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
Any Income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit & Loss
Account.
6. Investment
The Company does not have any kind of Investments at the end of the
financial year as all the Investments have been sold out.
7. Inventories
The Company does not have any kind of Inventory during the current
year.
8. Benefits to Employees
Short-Term benefits to employees are recognized as an expense at the
undiscounted amount in the profit and loss account of the y, - in which
the related service is rendered.
Post employment and other long-term benefits to employees are
recognized as expenses in the profit and loss account for the year in
which the related service is rendered.
Contribution to provideni fund is accounted on accrual basis. Provision
for gratuity has been provided for on an arithmetical basis for
eligible as per payment of Gratuity Act, 1972 and Leave encashment is
accounted on the basis of actuarial valuation techniques. Actuarial
gain and loss in respect of post employment and other long-term
benefits are charged to Profit & Los Accounts.
12. Borrowing Cost
The Company did not borrow any amount during the financial year.
13. Provision For Deferred Tax
Deferred tax asset has been provided on the basis of tax computation
for the year. Depreciation is the only a component of deferred tax
assets and liabilities arising on account of timing difference.
14. Goodwill
Goodwill represents the difference between the consideration for the
business and the fair value of the net assets.
|