a. Basis & Method of Accounting:
These financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis
except for certain financial instruments which are measured at fair values. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 (‘the Act’), read with Rule 7 of the Companies (Accounts) Rules,
2014. 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.
b. Use of Estimates:
The preparation of financial statements is conformity with generally accepted accounting
principles requires the management to make estimates and assumptions that affects the
reported balances of assets and liabilities as of the date of financial statement and
reported amount of income and expenses during the year.
Accounting estimates could change from period to period. Actual results could differ
from those estimates. Appropriate changes in estimates are made as the Management
becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are
made and, if material, their effects are disclosed in the notes to the financial statements.
c. Revenue recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will
flow to the company and revenue can be reliably measured.
Income from operations which comprises revenue from operation and other income are
all accounted for on accrual basis.
d. Expenses:
The Company provides for all expenses comprising of Salary to Employees, Financial
Expenses and Administrative Expenses on accrual basis.
e. Fixed Assets & Depreciation:
Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for
bringing the assets to its working condition for its intended use. They are stated at
historical cost less accumulated depreciation.
Depreciation on assets is provided on written down value basis (WDV) on the basis of
useful lives of assets as specified in schedule II of the Companies Act, 2013.
Depreciation on fix assets purchased/acquired during the year is provided on pro-rata
basis according to the period each asset was put to use during the year.
f. Retirement Benefits:
Retirement benefits are given as per term & condition of contract with employee. Short
term employee’s benefits are recognized at the undiscounted amount in the profit and loss
account.
g. Impairment of Assets:
The Carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of Impairment based on internal/external factors. An impairment loss is
recognized whenever the carrying amount of assets exceeds its recoverable amount. After
impairment depreciation is provided on the revised carrying amount of the assets over its
remaining useful life.
During the year there was no impairment of assets of the company.
h. 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. All other investments are classified as non-current investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees and duties etc.
Non-Current investments are carried at cost. However, provision for diminution, if any,
in value is made to recognize a decline other than temporary in the value of the
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.
i. Taxation:
Income-tax expenses comprise current tax and deferred tax charge or credit. The
Deferred tax asset and deferred tax liability is calculated by applying tax rate and Tax
laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred
tax Assets arising mainly on account of brought forward losses and unabsorbed
depreciation under tax laws, are recognized, only if there is a Virtual certainty of its
realization, supported by convincing evidence. Deferred tax Liability on account of other
timing differences is recognized only to the extent there is a reasonable certainty of its
realization. At each Balance Sheet date, the Carrying amount of deferred tax assets is
reviewed to reassure realization.
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