1. Significant Accounting Policies
1.1 Basis of preparation
The Company's financial statements have been prepared in accordance with the provisions of the Companies Act, 2013
and the Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules,
2015 and amendments thereof issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133
of the Companies Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered
Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations require a
different treatment.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
1.2 Use of Estimates:
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could
result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
1.3 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the
revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized.
a) Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head "Revenue from Operations" in the statement of profit and loss.
b) Dividend
Dividend income is recognized when the company's right to receive dividend is established by the reporting date.
c) Other Income
Other items of revenue are recognized in accordance with the Indian Accounting Standard (IND AS-18) "Revenue
Recongnition".
1.4 Investments:
Investments, which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. Ail other investments are classified as long term
investments.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long Term Investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments. In case of investments in mutual funds, the
net asset value of units declared by the mutual funds is considered as the fair value.
In accordance with the Revised Schedule III to the Companies Act, 2013, the portion of the Long Term Investments
classified above, and expected to be realised within 12 months of the reporting date, have been classified as current
investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
1.5 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares
outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that
they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus
element in a rights issue, share spilit, and reverse share split (consolidation of shares) that have changed the number of
equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
1.6 Income Taxes
Current Taxes
Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is
made annually based on the tax liability after taking credit for tax allowances and exemptions.
Minimum Alternative Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit
becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note
issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of
profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and
writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal income tax during the specified period.
Deferred Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that
result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets
and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the
balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets
can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date
1.7 Fixed Assets
Fixed assets are carried at the cost less accumulated depreciation and impairment losses. The cost of fixed assets
comprises its purchase price and other costs attributable to bringing such assets to its working condition for its intended
use.
1.8 Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as
a part of such assets till such time as the assets are ready for their intended use or sale. Ail other borrowing costs are
recoqnised as expense in the period in which they are incurred.
1.9 Depreciation
Depreciation on Fixed Assets has been provided at the rates and in the manner laid down in Schedule II to the
Companies Act, 2013. Individual items of assets valuing less than Rs.5000/- have been fully depreciated in the year of
acquisition. The method of depreciation is Straight Line Method (SLM).
2.0 Contingent Liabilities
A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the
occurence or non occurrence of one or more uncertain future events beyond the control of the company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence
in the financial statements.
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