2. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied by the Company in the
preparation of its financial statements are listed below. Such accounting
policies have been applied consistently to all the periods presented in
these financial statements, unless otherwise indicated.
a) Statement of compliances
The financial statements have been prepared in accordance with the
Indian Accounting Standards (referred to as “Ind AS”)prescribed under
section 133 of the Companies Act, 2013 read with Companies (Indian
Accounting Standards) Rules 2015, as amended from time to time and
other relevant provisons of the Act.
b) Basis of preparation
The financial statements have been prepared under the historical cost
convention on the basis of going concern and in accordance with generally
accepted accounting principles and Ind AS of ICAI as per provisions of the
Companies Act 2013 read with notes appearing in financial statements.
c) USE OF ESTIMATES AND ACCOUNTING JUDGEMENTS
Use of estimates
(i) The preparation of the financial statements require the Management to
make estimates and assumptions considered in the reported amounts of
assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. The Management believes that the
estimates used in preparation of the financial statements are prudent and
reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates, are recognised
in the periods in which the results are known / materialised.
(ii) Impairment (IND. AS 36)
Impairment of assets has been recognized and losses, where ever
applicable; has been charged to Profit & Loss account.
As of each balance sheet date, the carrying amount of assets is tested for
impairment so as to determine :-
I. the provision for impairment loss, if any, required or
ii. the reversal, if any, required or impairment has been recognized in
previous year.
(iii) Useful life of property, plant and equipment and intangible assets
:- (IND. AS 16)
The Company reviews the useful life of property, plant and equipment
and intangible assets at the end of each balance sheet date. The re¬
assessment may result in change in depreciation and amortization
expense in future periods.
(iv) Taxes on Income and evaluation of Deferred Tax Assets :-
(IND AS 12)
Current tax is determined as the amount of tax payable in respect of
taxable income for the year, as per applicable tax rates and laws.
Deferred tax is recognized, subject to the consideration of prudence in
respect of deferred tax assets on timing differences, being the difference
between taxable income and accounting income that originates in one
period and capable of reversal in one or more subsequent periods as
described in relevant Note to financial statements
|