2 Significant Accounting Policies Note : 23
2.1 Corporate Information
Parshva Enterprises Limited (“the Company’’) is a company limited by shares incorporated under the Companies
Act, 2013.
The Company’s Registered Office is situated at Thane. The Company’s shares are listed on the Bombay Stock
Exchange (BSE) with the Scrip Code 542694
2.2 Basis of preparation of Financial Statements
The Financial statements are prepared under the historical cost convention and on accrual basis in accordance with
applicable Indian Accounting Standards prescribed under section 133 read with rule 7 of the Companies (Accounts)
rules, 2014.
Accounting policies not specifically referred to. otherwise are consistent and in accordance with the generally
accepted accounting principles.
2.3 Revenue Recognition
Sales are recorded exclusive of Taxes
2.4 Property, Plant and Equipments
Property, Plant and Equipments are stated at cost of acquisition or construction less accumulated depreciation,
including financial cost till such assets are ready for its intended use.
2.5 Depreciation
Depreciation is charged on written down value method as per Companies Act 2013.
2.6 Impairment of Assets
Impairment of assets if any is ordinarily assessed by comparing recoverable value of individual assets with its
carrying cost.
2.7 Inventories
Inventories are valued at cost or net realizable value whichever is lower. Cost in respect of inventories is ascertained
on Weighted Average Method.
2.8 Investments
Long Term Investments if any are stated at cost. Provision for dimunation if any in value of assets is only made
when the same is of permanent nature.
2.9 Retirement Benefits
As certified by the management, the company has no liability under the Provident Fund & Super Annuation Fund
(i) as the said acts do not apply to the company.
It is explained to us that the company does not provide for any leave encashment and any liability arising thereon
( ) shall be paid and dealt with in the books of accounts at the actual time of payment.
2.10 Borrowing Cost
Borrowing cost on working capital is charged against the profit & loss account in which it is incurred.
Borrowing costs that are attributable to the acquisition or construction or manufacture of qualifying assets are
capitalized as a part of the cost of such assets till the date of acquisition or completion of such assets. In respect of
suspended project for extended period, borrowing costs are not capitalized for such period.
2.11 Taxes on Income
Taxes on income of the current period are determined on the basis of taxable income and credits computed in
accordance with the provisions of the Income tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting income and the taxable income for the
year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
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