B. Material Accounting Policy Information
These financial statements of the Company have been prepared in accordance with the Indian
Accounting Standards (hereinafter referred to as the 'Ind AS') as notified by Ministry of Corporate
Affairs ('MCA') under Section 133 of the Companies Act, 2013 ('the Act') read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act.
The Company has uniformly applied the accounting policies during the periods presented.
Specific disclosure of material accounting policy infomation where Ind AS permits options is made
hereunder:
The company has assessed the materiality of the accounting policy information, which involves
exercising judgement and considering both quantitative and qualitative factors by taking into
account not only the size and nature of the item or condition but also the characteristics of the
transactions, events or conditions that could make the information more likely to impact the
decisions of the users of the financial statements.
1.1 Basis for preparation
The financial statements have been prepared on going concern basis in accordance with accounting
principles generally accepted in India. The presentation of financial statement is based on Ind AS
Schedule III of the Companies Act, 2013.
The financial statements have been prepared on the historical cost basis except for the following
material items in the Balance sheet.
(i) Financial assets are measured either at fair value or at amortised cost depending on their
classification;
(ii) Employee defined benefit assets/ liabilities are recognised as the net total of fair value of
plan assets, adjusted for actuarial gains/losses and the present value of defined benefit
A obligations.
(iii) Right of use of assets are recognised at the present value of future lease payments and
depreciated on a straight line basis based on the lease term of the asset.
Historical cost is generally based on fair value of the consideration given in exchange for goods and
services.
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, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account the characteristics of the asset or liability if market
participants would take those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/or disclosure purposes in these financial
statements is determined on such a basis, except for leasing transactions that are within the scope of
Ind AS 116 and measurements that have some similarities to fair value but are not fair value, such as
net realizable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2,
or 3 based on the degree to which the inputs to the fair value measurements are observable and the
significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that
the entity can access at the measurement date.
Level 2 - inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3 - inputs are unobservable inputs for the assets or liabilities.
The Company's Financial Statements are presented in Indian Rupees, which is rounded to the nearest
lakhs except when otherwise stated.
1.2 Current and non-current classification
For the purpose of Current / Non-Current classification, the Company has reckoned its normal
operating cycle as twelve months based on the nature of products/ activities of the company and the
time between the acquisition of assets or inventories for processing and their realisation in cash and
cash equivalents.
1.3 Key Accounting estimates and judgments
(i) Use of Estimates
The preparation of financial statements in conformity with Ind AS requires management to make
judgments,estimates and assumptions that affect the application of the accounting policies and the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date
of the financial statements,and the reported amounts of revenues and expenses during the year.
Actual results could differ from those estimates.
(ii) Changes in estimates
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of change in
an accounting estimate is recognized prospectively by including it in profit or loss (a) In the period of
the change if the change affects only that period; or (b) the period of the change and future periods, if
the change affects both.
However, the change in an accounting estimate that gives rise to changes in assets and liabilities, or
relates to an item of equity, is recognized by adjusting the carrying amount of the related asset,
liability or equity item in the period of the change.
(iii) Key sources of estimation uncertainty
Key assumption concerning the future, and other key sources of estimation uncertainty at the end of
the reporting period that may have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year is as given below.
(a) Actuarial valuation
The determination of Company's liability towards defined benefit obligation to employees is made
through independent actuarial valuation including determination of amounts to be recognised in the
Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depends upon
assumptions determined after taking into account inflation, seniority, promotion and other relevant
factors such as supply and demand factors in the employment market. Information about such
valuation is provided in the Notes to the financial statements.
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