1. Significant Accounting Policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared and presented in accordance with Indian
Accounting Standards (‘Ind AS') notified under Section 133 of the Companies Act, 2013, read
together with the Companies (Indian Accounting Standards) Rules, 2015.
These financial statements have been prepared and presented under the historical cost
convention, on the accrual basis of accounting except for certain financial assets and financial
liabilities that are measured at fair values at the end of each reporting period, as stated in the
accounting policies set out below. The accounting policies have been applied consistently over
all the periods presented in these financial statements.
1.2 Current / Non - Current Classification
All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle and other criteria as set out under Ind AS and in the Schedule III to the
Act. Based on the nature of the services and their realisation in Cash and Cash Equivalents,
the Company has ascertained its operating cycle as twelve months for the purpose of current
or non-current classification of assets and liabilities.
1.3
a) Property, Plant and Equipment
Measurement at recognition:
An item of property, plant and equipment that qualifies as an asset is measured on initial
recognition at cost. Following initial recognition, items of property, plant and equipment are
carried at its cost less accumulated depreciation and accumulated impairment losses. The
cost of an item of property, plant and equipment includes taxes, duties, freight and other
incidental expenses but net of Cenvat availed.
Depreciation:
Depreciation on each part of an item of property, plant and equipment is provided on a pro¬
rata basis using the Straight Line Method based on the useful life of the asset as estimated
by the management and is charged to the statement of Profit and Loss as per the
requirement of Schedule II of the Companies Act, 2013. The estimate of the useful life of
the assets has been assessed based on technical advice which considers the nature of the
asset, the usage of the asset, expected physical wear and tear, and maintenance support,
etc.
b) Revenue Recognition
All income and expenditure have a material bearing on the financial statements and are
recognised on accrual.
Operational income represents income earned from activities incidental to the business and
is recognised when the right to receive the income is established as per the terms of the
contract.
Interest income on deposits, securities and loans is recognised at the agreed rate on time
proportion basis.
Dividend income is recognised when the Company's right to receive payment is established.
During the earlier periods, the Company has undertaken Work Contract activities and
Its income are recognized based on actual work completion.
c) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial Assets
The Company recognizes a financial asset in its Balance Sheet when it becomes party to
the contractual provisions of the instrument. All financial assets are recognized initially at
fair value, plus in the case of financial assets not recorded at fair value through profit and
loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
Where the fair value of a financial asset at initial recognition is different from its transaction
price, the difference between the fair value and the transaction price is recognized as a gain
or loss in the Statement of Profit and Loss at initial recognition if the fair value is determined
through a quoted market price.
Financial Liabilities
The Company recognizes a financial liability in its Balance Sheet when it becomes party to
the contractual provisions of the instrument. All financial liabilities are recognized initially at
fair value minus, in the case of financial liabilities not recorded at fair value through profit
and loss (FVTPL), transaction costs that are attributable to the acquisition of the financial
liability.
Where the fair value of a financial liability at initial recognition is different from its
transaction price, the difference between the fair value and the transaction price is
recognised as a gain or loss in the Statement of Profit and Loss at initial recognition if the
fair value is determined through a quoted market price.
d) Fair Value
The Company measures financial instruments at fair value in accordance with the
accounting policies mentioned. Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. _
e) Investment
Investments that is intended to be held for more than a year from the date of acquisition are
classified as long term investment and are carried at cost less any provision for permanent
diminution in value. On disposal of investment, the difference between its carrying and net
disposal proceeds is charged or credited to the statement of profit and loss.
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