B) Significant Accounting Policies:
a) Basis of preparation of financial statements:
The accompanying financial statements have been prepared in accordance with Generally
Accepted Accounting Policies in India to comply with the Accounting Standards specifie
under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules 2014 and the relevant provisions of the Companies Act 2013.
The Financial Statements have been prepared under the historical cost convention on the
accrual basis of accounting. The accounting policies have been consistently applied by the
Company unless otherwise stated.
b) Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting
principles requires estimates and assumptions to be made that affect the reported amounts
of assets and liabilities and disclosures of contingent liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the reporting
period. Actual result could differ from these estimates and the difference between actual
results and estimates are recognized in the periods in which the results are
known/materialize.
c) Fixed Assets and Depreciation:
i) Fixed Assets are recorded on cost (net of Excise, wherever availed) less accumulated
depreciation. Cost includes pre-operative expenses for the project incurred up to the date
of installation.
ii) Depreciation on Fixed Assets has been provided on Written down Value (WDV) method
and computed with reference to useful life of respective assets specified and in the
manner prescribed in Schedule II to the Companies Act, 2013 including pro rata
depreciation on addition made during the year.
d) Revenue Recognition:
Revenue is recognised upon rendering of the service, provided pervasive evidence of an
arrangement exists. All incomes are generally accounted on accrual basis except those
whirhaj-g^L insignificant value.
e) Investments:
Investments that are readily realizable and intended to be held for not more than twelve
months are classified as Current Investments. All other investments are classified as Non-
Current Investments. Non-Current Investments are stated at cost. However, provision for
diminution in value is made to recognize a decline other than temporary in the value of the
Non-Current Investments.
g) Employee Benefits:
The payment of Bonus/Leave Salary has been considered on mercantile basis.
The Company is not having any funded group gratuity scheme. During e year
24, Company has valued gratuity as per actuarial valuation certificate.
h) Provision for Current and Deferred Tax:
Provision for current tax is made after taking into consideration benefits admissible unde
tlie provisions of die Income tax Act, 1961
Deferred tax resulting from "timing difference" between book and taxable profit is
accounted for using the tax rates and laws that have been enacted or substantively enacted
as on the balance sheet date. The deferred tax asset is recognised and earned forward only
to the extent tiiat there is a reasonable certainty that the assets will be realised in future.
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