Significant accounting policies
a. Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical
cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the
provisions of the Companies Act, 2013 ('the Act') (to the extent notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI). The lnd AS are prescribed under Section 133 of the Act read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and the relevant amendment rules issued thereafter. 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 the financial statements in conformity with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes n
circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period n
which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
c. Revenue recognition
Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue is recognised to the extent that it is probab e
that the economic benefit will flow to the company and the revenue can be reliably measured. The Company is following
IND-AS 115 for recognition of revenue.
d. Cash flow
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated based on
the available information.
e. Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Cost directly
attributable to acquisition are capitalised until the property, plant and equipment are ready for use, as intended by the
management. Depreciation has been provided on written down value method in accordance with section 198 of the
Companies Act, 2013 at the rates specified in schedule II to the Companies Act, 2013, on pro-rata basis with reference
to the period of use of such assets.
f. Inventories
Since the Company is dealing in providing professional services, there is no inventories policy at present.
g. Amortisation of intangible assets
Intangible Assets are valued at cost and amortised as per its useful life and value in use.
h. Impairment of assets
The carrying amounts of Cash Generating Units/Assets are reviewed at each Balance Sheet date to determine whether
there is any indication of impairment. If any such indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised wherever carrying amount exceeds the recoverable
amount.
i. Earnings per share
Earnings per Share has been computed in accordance with IND AS 33 - “Earning Per Share” by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period. The earnings considered for ascertaining the company's Earnings per Share is the net profit after tax.
j. Income tax
Tax expense comprises of current tax and deferred tax. Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and exemptions and disallowances if any determined n
accordance with the prevailing tax laws.
Deferred income tax reflects the current period timing difference between taxable income and accounting income for the
period and reversal of timing difference of earlier years/period.
Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will
be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there
is a virtual certainty that sufficient future taxable income will be available to realise the same.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantive y
enacted by the balance sheet date.
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