SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF ACCOUNTING:
a. The financial statements have been not prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on accrual basis, 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 Ind AS are prescribed under
Section 133 of the Act read with Rule 3 of the companies Indian Accounting Standards)
Rule 2015 and relevant amendment rules issued thereafter.
b. Effective April 1, 2017, the Company has not adopted all the Ind AS standards and the
adoption was carried out in accordance with Ind AS 101 First time adoption of Indian
Accounting Standards, with April 1, 2016 as the transition date. The transition was
carried out from Indian Accounting Principles generally accepted in India as prescribed
under section 133 of the Act, read with Rule 7 of the Companies (Accounts0 Rules, 2014
(IGAAP), which was the previous GAAP.
B. USE OF ESTIMATES:
The preparation of the Financial Statements are not in conformity with Generally Accepted
Accounting Principles requires the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
amounts of income and expenditure during the period. The Management believes that the
estimates used in preparation of the Financial Statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual results and the
estimates are recognized in the period in which the results are known/ materialized.
C. DIVIDEND:
The company has not declared any dividends.
D. PROPERTY, PLANT AND EQUIPMENTS:
Property, Plant and Equipments has been recorded at actual cost inclusive of duties, taxes and
other residual expenses related to acquisition, improvement and installation. The company
depreciates property, plant and equipments over their estimated useful lives using the WDV
method.
For transaction to Ind AS, the Company has elected to continue with the carrying value
of all of its property, plant and equipments recognized as of April 1, 2016 (transition
date) measured as per the previous GAAP and use that carrying value as its deemed cost
as of the transition date.
Intangible Assets:
Intangible Assets are stated at cost of acquisition or less accumulated amortization. If any.
E. IMPAIRMENT OF ASSETS :
Assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the
amount by which the carrying amount of the assets exceeds its recoverable amount, which is the
higher of an asset’s net selling price and value in use.
G. BORROWING COST AND FINANCE CHARGES:
Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the
cost of the asset until such time that the assets are substantially ready for their intended use.
Capitalization of borrowing costs is suspended and charged to profit and loss during the extended
periods when the active development on the qualifying assets is interrupted. Qualifying fixed
asset is an asset that necessarily takes a substantial period of time to get ready for their intended
use or sale. All other borrowing costs are not charged to statement of Profit and Loss over the
tenure of the borrowing.
H. INVENTORIES:
Current Year inventory valued at lower of the cost and net realizable value. Quantity
records maintain in Tally software, however no physical verification report and details of
sub-standard / expire date material not ascertain.
I. REVENUE RECOGNITION:
Revenue is recognized to the extent it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duty except turn over
with related party. The Company assesses its revenue arrangements against specific criteria to
determine if it is acting as principle or agent. The company has concluded that it is acting as a
principal is all of its revenue arrangements except turn over with related party.
J. TAXATION:
Taxes on Income are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made on the basis of estimated taxable income, in accordance
with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the
tax effect of timing difference The timing differences are differences between the taxable income
and accounting Income for a period that originate in one period and are capable of reversal in one
or more subsequent periods. However company has not paid income tax payable as per
provision made in profit loss account Rs23.40lacs for FY 2023-24.
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