Note 13 SIGNIFICANT ACCOUNTING POLICIES:
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13.a. Basis of Accounting: The financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP), in order to to comply in all material respects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2021, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have
been prepared under the historical cost convention on an accrual basis and going concern basis. The accounting policies have been
consistently applied by the company are consistent with those used in the previous year
13.b. Accounting Policies: Accounting policies are the specific accounting principles and the methods of applying those principles adopted by
an enterprise in the preparation and presentation of financial statements.
13.c Use of Estimates: The preparation of the financial statements in conformity with the Indian GAAP requires the Management to make
estimates and assumptions considered in the reported amounts of income, expense and assets and liabilities ( including contingent
liabilities) at the end of the reporting period. Although these estimates are based on management's best knowledge of current events and
actions, uncertainty about the assumptions and estimates could result in the outcomes resulting a material adjustment to the carrying
amount of assets and liabilities in future periods
The Management believes that the estimates and assumptions used in the presentation of financial statements are prudent and
reasonable. Actual result could differ from these estimates.
13.d Cash & Cash Equivalents: Cash and cash equivalents include Cash in hand, balances in current account with bank which are readily
available for use by the Company. Cash Equivalents includes Term Deposits with bank which are not readily available for use of the
Company.
Cash Flow statement has been prepared by the Company under indirect method as per AS-3.
13.e. Property, Plant & Equipment
Tangible Property, Plant & Equipment's acquired during the period under reporting are stated at cost. The cost comprises purchase price
net of tax credit available under the relevant tax laws, including borrowing cost where capitalisation criteria are met as per Accounting
Standard and other cost directly attributable to bring the Property, Plant & Equipment's to its present working condition for intended use.
Any trade discounts and rebates are deducted in arriving at purchase price. None of the assets are revalued/ impaired during the year.
Subsequent to initial recognition, PPE are stated at cost less accumulated depreciation and imparement losses. When significant parts of
PPE are required to be replaced in regular intervales, the Company recognises such parts as separate component of assets. When an item
of PPE is replaced, then its carrying amount is de-recognised from the balance sheet and cost of the new item of PPE is recognised.
The expenditure that are incurred after the item of PPE are ready for its intended use, such as repairs and maintenance, are normally
charged against the revenue in the profit & loss statement in the period in which costs are incurred. However, in situations where such
expenditure incurred can be mesured reliably, and is probable that economic benifits associated with it will flow to the Company, it is
included in the assets carrying value or as a seperate asset, as appropriate.
An Intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or
services, for rental to others or for administrative purposes.
Intangibles are recognised when it probable that the future economic benefits that are attributable to the assets will flow to the enterprise
over its estimated useful life; and the cost of the assets can be measured reliably.
The cost and accumulated depreciation for PPE sold, discurded or otherwise disposed off are derecognised from balance sheet and the
resulting loss or gains are included in the statement of profit and loss within other expenses / other income.
13.f. Depreciation is provided based on Written Down value method over the useful life of respective fixed assets in accordance with Schedule-
II (Section 123) of Companies Act, 2013. The Residual value of all fixed assets has been prescribed at 5% of their original cost.
13.g. Capital Work in Progress
Capital work in progress includes cost of property, plant and equipment under installation/under development as at the balance sheet date.
13.h. Borrowing Costs:
Borrowing costs relating to acquisition of qualifying assets are capitalized untill the time of substantial activities necessary to prepare the
qualifying assets for their intended use are complete. A qualifying assets is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to revenue.
13.i. Revenue Recognition: Revenue from rendering of services is recognized on performance of the service agreement,on the basis of
completed service contract method and to the extent that it is probable that the economic benefits will flow to the company and the
revenue can be reliably measured, and no significant uncertainty exists regarding the amount of consideration that will be derived.
Revenue from interest are recognized on time proportion basis taking into account the amount outstanding and at the rate applicable.
Revenue from Dividends are recognized only when the owner's right to receive is established.
Other revenue such as gain on sale of assets or current investments are recognized when they are actually realized.
13.j. Retirement Benefits:
The Company's employee benefits mainly includes, salary, wages, bonus and incentives.The employee benefits are recognised in the year
in which the associated services are rendered by the employees of the Company.Short term employee benifits are recognised in the
statement of profit & loss at undiscounted amounts during the period in which the services have been rendered. Details of long term
employee benifits are provided below.
Defined Contribution Plan: A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to
a statutory authority and have no legal or constructive obligation to pay further amounts. The Company's contributions to defined
contribution plans are recognised as an expense in the statement of profit & loss as and when the servives are rendered by employess.
The Company has no further obligations under these palns beyond its periodic contributions.
Defined Benefit Palns: A defined benifit plan is a post-employment benefit plan other than difined contribution plan. Under defined benefit
plans the Company provides retirement obligation in the form of gratuity. Under the paln, a lum sum amount is made to eligible employees
at retirement or termination of employment based on respective employee's salary and years of services with the Company. The Company
records the liability based on actuarial valution under the projected unit credit method.
Other long term employee benefits: Other long term employee benefits such as encashment of leave balances that were earned by
employees over the past period of services are not provided to the employees.
13.k. Taxation: Tax expenses comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with The Income Tax Act, 1961 enacted in India. Deferred Income Tax reflects the impact of timing differences
between taxable income and accounting income originating during the current year and reversal of timing difference for the earlier year.
Deferred tax is measured using the tax rate and the tax law enacted or substantively enacted at the reporting date. Deferred tax liabilities
are recognized for all taxable timing difference. deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available to realize these assets.
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