1 Corporate information
NEXXUS PETRO INDUSTRIES LIMITED. Is a Limited Company Domiciled In India Having CIN: L50400GJ2021PLC126116 The Registered Office Of
The Company Is Located At B-811 Swati Trinity, Applewood Township, Sananthal Sanand, Sarkhej, Ahmedabad, Dascroi, Gujarat, India,
382210. The Company Is Engaged In The Business Of Manufacture and trading of Bitumen and other similar items.
2 Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in
India and the provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current and non-current as per the company's normal operating cycle. Based on the nature of
products and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such
goods sold, the Company has considered an operating cycle of 12 months.
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period in which the results are known / materialised.
The Company is a Small and Medium Sized Company (SMC) as defined in the Companies (Accounting Standards) Rules, 2021 notified under
the Companies Act, 2013. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized
Company.
3 Significant accounting policies
a Revenue recognition:
In appropriate circumstances, revenue (income) is recognized when earned and no significant uncertainty as to the measurability or
collectability exists.
Material known liabilities are provided for on the basis of available
Determination of revenue under the percentage of completion method necessarily involves making estimates, some of which are of a
technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or
activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect
of changes, if any, to estimates is recognised in the financial statements for the period in which such changes are determined.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend income is recognised when right to receive is established.
Rent on immovable properties is recognised on accrual basis as per the agreement with the party,
b Property, plant and equipment:
Property, plant and equipment are stated at cost net of recoverable taxes, trade discount and rebates, less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price, including duties and other non-refundable taxes or levies and directly
attributable cost of bringing the asset to its working condition and indirect costs specifically attributable to construction of a project or to the
acquisition of fixed asset. Subsequent expenditure related to an item of tangible asset are added to its book value only if they increase the
future benefits from the existing asset beyond its previously assessed standard of performance. Assets retired from active use are carried at
lower of book value and estimated net realisable value.
c Depreciation and amortisation:
i) The Company provides for depreciation on tangible assets to the extent of depreciable amount on written down value method.
Depreciation is provided based on useful life and residual value of the assets as prescribed in Schedule II to the Companies Act, 2013.
ii) Depreciation on additions to assets or on sale / discernment of assets is provided on pro rata basis from the month in which assets have
been put to use, up to the month prior to the month in which assets have been disposed off. Depreciation on additions to assets is provided
over the residual life of the respective asset.
iii) Cost of Leasehold Land is amortised over the period of lease,
d Impairment of assets:
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement
of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is
reversed, if there has been a change in the estimate of recoverable amount.
e Investments:
Investments are classified into current and long-term investments. Current investments are stated at lower of cost and fair value. Long-term
investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long-term
investments.
f Inventories:
The inventories are valued at lower of cost or net realisable value, using first in first out formula. Cost of inventories comprises of cost of
purchase and manufacturing costs incurred in bringing them to their respective present location and condition. Stock-in-process and finished
goods are valued after considering direct overheads.
g Foreign currency transactions:
i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over the life of the contract.
iii) Non-monetary foreign currency items are carried at cost.
iv) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit
and Loss except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying
cost of such assets.
h Employee benefits:
Wages, salaries, paid annual leave, sick leave and bonuses are accrued in the year in which the services are rendered by the employees. The
company does not permit accumulating of unused leaves. The company does not provide any long-term employee benefits.
The contributions to defined contribution plans are charged to the statement of profit and loss,
i Borrowing cost:
Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A
qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are
charged to revenue.
j Taxation:
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from timing difference between taxable income and accounting income is accounted for using the tax rates and laws
that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only
to the extent that there is a reasonable certainty that the assets will be realised in future.
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