II) SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF PREPARATION:
The financial statements have been prepared in accordance with Indian Accounting
Standards (hereafter referred to as the 'Ind AS') as notified by Ministry of Corporate
Affairs pursuant to Section 133 of Companies Act, 2013 (the "Act") read with
Companies (Indian Accounting Standards (Ind AS)) Rules, 2015 and other relevant
provisions of the Act.
These financial statements are for the year ended 31st March 2024, are the
financials with comparatives prepared under Ind AS for all previous periods including
the year ended 31st March 2017, the company had prepared its financial statement
in accordance with accounting standard notified under the Companies (Accounting
Standard) Rule 2006 (as amended) and other relevant provision of the Act
(hereinafter referred to as the 'Previous GAAP') used for the statutory reporting
requirement of India.
The financial statements have been prepared on accrual and going concern basis.
The accounting polies are applied consistently to all period presented in the financial
statements, including the preparation of the opening Ind AS balance sheet as at 1st
April 2016 being the date of transition to Ind AS.
b. USE OF ESTIMATES
The preparation of the financial statements, in conformity with the recognition and
measurement principles of Ind AS, requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities as at the date
of financial statements and the results of operation during the reported period.
Although these estimates are based upon management's best knowledge of current
events and actions, actual results could differ from these estimates which are
recognized in the period in which they are determined.
c. OPERATING CYCLE FOR CURRENT AND NON-CURRENT CLASSIFICATION
The Company presents assets and liabilities in the balance sheet based on current
/non-current classification.
All the assets and liabilities have been classified as current or non-current, wherever
applicable, as per the operating cycle of the Company as per the guidance set out in
Schedule III to the Act.
The operating cycle is the time between the acquisition of assets for processing and
their realisation in cash or cash equivalents. Based on the nature of activities of the
Company and the normal time between acquisition of assets and their realization in
cash or cash equivalents, the company has determined its operating cycle as 12
months for classification of its assets and liabilities as current and non-current.
d. PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment are stated at cost of acquisition including attributable
interest and finance costs, if any, till the date of acquisition/ installation of the assets
less accumulated depreciation and accumulated impairment losses, if any.
Subsequent expenditure relating to Property, Plant and Equipment is capitalised only
when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. All other repairs
and maintenance costs are charged to the Statement of Profit and Loss as incurred.
The cost and related accumulated depreciation are eliminated from the financial
statements, either on disposal or when retired from active use and the resultant gain
or loss are recognised in the Statement of Profit and Loss.
Capital work-in-progress, representing expenditure incurred in respect of assets
under development and not ready for their intended use, are carried at cost. Cost
includes related acquisition expenses, construction cost, related borrowing cost and
other direct expenditure.
e. DEPRECIATION/AMORTISATION ON FIXED ASSETS
Depreciation on Fixed Assets is provided on straight-line method in accordance with
life of assets specified in Part C of Schedule II to the Companies Act, 2013 as per
details given below:
AMORTISATION
Expenses incurred on Computer Software are amortized on straight line basis over a
period of three years.
ASSETS ACQUIRED IN SATISFACTION OF CLAIMS
Assets acquired in satisfaction of claim has been accounted at fair value of the assets
acquired and is marked down by a subsequent reduction in the Net Realisable Value,
if any.
f. IMPAIRMENT OF NON-FINANCIAL ASSETS
Non- financial assets other than inventories and non-current assets held for sale are
reviewed at each balance sheet date to determine whether there is any indication. If
any such indication exists or when annual impairment testing for an asset required,
the company estimates the asset's recoverable amount. The recoverable amount is
higher of assets or cash generating units (CGU) fair value less cost of disposal and its
value in use. Recoverable amount is determined for an individual asset, unless the
asset does not generate cash flow that is largely independent of those from other
assets or group of assets.
When the carrying amount of an assets or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
g. STOCK IN TRADE
Stock in trade is valued at weighted average cost or net realisable value whichever is
lower.
h. CASH AND CASH EQUIVALENTS
Cash and cash equivalents for the purpose of cash flow statement comprise cash in
hand, balances in current accounts with scheduled banks and bank deposits.
i. REVENUE RECOGNITION
Revenue in respect of sale of goods is recognized when risk and reward of ownership
are transferred. The sales are accounted net of goods and service tax. Further goods
returned or rejected are accounted in the year of return/rejection.
j. TAXES ON INCOME
Current tax is determined on the basis of the amount of tax payable in respect of
taxable income for the year.
Deferred tax is calculated at tax rates that have been enacted or substantively
enacted at the Balance Sheet date and is recognized on timing differences, being the
difference between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods. Deferred tax
assets subject to the consideration of prudence, are recognized and carried forward
only to the extent that there is a reasonable/virtual certainty that sufficient future
taxable income will be available against which such deferred tax asset can be
realized.
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