1. SIGNIFICANT ACCOUNTING POLICIES:
(i) Statement of Compliance:
These standalone financial statements of the Company have been prepared in accordance with
Indian Accounting Standard (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). The Ind AS are prescribed under
Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereafter.
The Company has consistently applied accounting policies to all years. Comparative Financial
information has been re-grouped, wherever necessary, to correspond to the figures of the current
year.
(ii) Basis of preparation and presentation
The standalone financial statements have been prepared on accrual basis under the historical cost
convention except for the certain financial instruments that are measured at fair values as
required by relevant Ind AS:
a) certain financial assets and liabilities (including derivative instruments)
b) defined employee benefit plans - plan assets are measured at fair value Historical cost is
generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
(iii) Use of estimates and judgement:
The preparation of standalone financial statements in conformity with Ind AS requires
management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amount of assets and liabilities, revenues and expenses and
disclosure of contingent liabilities. Such estimates and assumptions are based on management’s
evaluation of relevant facts and circumstances as on the date of standalone financial statements.
The actual outcome may diverge from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.
Useful lives of property, plant and equipment:
The Company reviews the useful life of property, plant and equipment at the end of each
reporting period. This reassessment may result in change in depreciation expense in future
periods.
Fair value of financial assets and liabilities and investments:
The Company measures certain financial assets and liabilities on a fair value basis at each
balance sheet date or at the time they are assessed for impairment. Fair value measurements that
are based on significant unobservable inputs (Level 3) requires estimates of operating margin,
discount rate, future growth rate, terminal values, etc. based on management’s best estimate about
future developments.
(iv) Functional and presentation currency:
Items included in the standalone financial statements of the Company are measured using the
currency of the primary economic environment in which the Company operates (i.e. the
“functional currency”). The standalone financial statements are presented in Indian Rupee, the
national currency of India, which is the functional currency of the Company.
(v) Revenue Recognition:
Revenue is recognized upon transfer of control of promised goods or services to customers in an
amount that reflects the consideration the Company expects to receive in exchange for those
goods or services.
Sale of goods: Revenue from the sale of products is recognized at the point in time when control
is transferred to the customer. Revenue is measured based on the transaction price, which is the
consideration, net of customer incentives, discounts, variable considerations, payments made to
customers, other similar charges, as specified in the contract with the customer. Additionally,
revenue excludes taxes collected from customers, which are subsequently remitted to
governmental authorities.
Interest Income: Interest income received on the Loans and Advances are recorded as per the
accrual Principle of Accounting.
(vi) Taxation:
Income tax expense represents the sum of the tax currently payable and deferred tax.
a) Current tax: Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the applicable tax rates and the provisions of the Income Tax Act,
1961 and other applicable tax laws.
b) Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is considered as an
asset if there is convincing evidence that the Company will pay normal income tax. Accordingly,
MAT is recognized as an asset in the Balance Sheet when it is highly probable that future
economic benefit associated with it will flow to the Company.
c) Deferred tax: Deferred tax is recognized using the balance sheet approach. Deferred tax assets
and liabilities are recognized on temporary differences between the carrying amounts of assets
and liabilities in the standalone financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.
(vii) Property, Plant and Equipment:
Property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of property, plant and equipment comprises its purchase price/ acquisition
cost, net of any trade discounts and rebates, any import duties and other taxes (other than those
subsequently recoverable from the tax authorities), any directly attributable expenditure on
making the asset ready for its intended use, other incidental expenses and interest on borrowings
attributable to acquisition of qualifying property, plant and equipment up to the date the asset is
ready for its intended use.
Depreciation on Property, plant and equipment (other than freehold land) has been provided on
the Diminishing method as per the useful life prescribed in Schedule II to the Companies Act,
2013, in whose case the life of the assets has been assessed as under based on account the nature
of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of
replacement, anticipated technological changes, manufacturers warranties and maintenance
support, etc.
The estimated useful life of the tangible assets and the useful life are reviewed at the end of each
financial year and the depreciation period is revised to reflect the changed pattern, if any. An
item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognized in the
statement of profit and loss.
(viii) Inventories: As on balance sheet date there is no inventory.
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