Significant accounting Policies
1:1. Basis of Preparation of Financial Statements
The accompanying financial statements have been prepared in compliance with the requirements under section 133 of
the Companies Act, 2013 (to the extent notified) (the Act) read with Rule 7 of the Companies (Accounts) Rules 2014
and other generally accepted accounting principles (GAAP) in India to the extent applicable under the historical cost
convention on the accrual basis of accounting, GAAP comprises mandatory accounting standards as specified in the
Companies (Accounting Standards)Rules 2006.
All amount are rounded off to the nearest thousands (including two decimals) unless otherwise stated.
1:2. Current/Non-Current Classification
The Schedule III to the Act required assets and liabilities to be classified as either current or non-current Assets.
An asset is classified as current when it satisfies any of the following criteria.
a. It is expected to be realised in or is intended for sales or consumption in the company's normal operating cycle.
b. It is held primarily for the purpose of being traded.
c. It is expected to be realised within 12 months after the reporting date, or
d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
12 months after the reporting date.
Current assets include the current portion of non-current assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria.
a. It is expected to be settled in the company's normal operating cycle;
b. It is held primarily for the purpose of being traded.
c. It is due to be settled within 12 months after the reporting date; or
d. the company does not have an unconditional right to defer settlement of the liability for at least 12 months
after the reporting date. Terms of a liability that could at the option of the counterparty result in its settlement by the
issue of equity instruments do not affect its classification.
Current liabilities include current portion of non-current liabilities.
All other liabilities are classified as non-current.
1:3. Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company normal operating cycle and
other criteria set out above which are in accordance with the Schedule III to the Act.
Based on the nature of services and the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents the Company has ascertained its operating cycle as 12 months for the purpose of
current/non-current classification of assets and liabilities.
1:4.Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities on the date of the financial statements are prudent and reasonable. Actual results
could differ from those estimates. Any revision to accounting estimates is recongnised prospectively in current and
future period.
1:5. Borrowing cost
Borrowing costs that are attributable to the acquisition, construction or production of qualifying asset are treated as
direct cost and are considered as part of the cost of such assets
A qualifying asset is an asset that necessary requires a substantial period of time to get ready for its intended use or
sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.
1:6 Earnings per share
The basic earnings per share is computed by dividing the net profit attributable to the equity sharesholders for the year
by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by
diving the net profit attributable to the equity shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
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