SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
The accompanying Standalone Financial Statements are prepared and presented in accordance
with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention,
on the accrual basis of accounting, unless otherwise stated. These financial statements have been
prepared as going concern and comply, in all material respects, with the Accounting Standards as
prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts)
Rules, 2014.
b) Use of Estimates
The presentation of Standalone Financial Statements requires certain estimates and assumptions.
These estimates and assumptions affect the reported amount of assets and liabilities on the date
of the Standalone Financial Statements and the reported amount of revenues and expenses during
the reporting period. Difference between the actual result and estimates are recognized in the
period in which the results are known / materialized.
c) Property, Plant & Equipment and Depreciation
All Property, Plant & Equipment are accounted for at cost less depreciation.
Depreciation on Property, Plant & Equipment is provided on straight line basis over the useful lives
of assets specified in Part C of Schedule II to the Companies Act 2013 read with the relevant
notifications issued by the Department of Company affairs.
Depreciation on assets acquired / disposed of during the year is provided on pro-rata basis with
reference to the date of addition / disposal.
In accordance with the provisions contained in Schedule II to the Companies Act, 2013 components
of an asset, which have significant cost to total cost of assets and its own useful life, are required to
be depreciated separately over its useful life. Any such component, if identified by the management
based on technical evaluation, is depreciated separately over its own useful life.
d) Intangible Assets and Amortization
Intangible assets purchased are initially measured at cost. The cost of an intangible asset comprises
its purchase price including any costs directly attributable to making the asset ready for their
intended use.
Intangible assets internally developed are measured at direct cost such as salary, materials and
overheads and costs incurred to develop asset including software development cost and
recognized when technical feasibility can be demonstrated, the company has intent to use or sell
the asset, the company has ability to measure the asset's cost reliably and it is probable that the
asset will generate future economic benefits.
Intangible assets are amortized over management estimate of its useful life of 3 years on straight
line basis.
e) 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 Standalone Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable amount.
f) Investments
Long term investments are carried at cost less provision, if any, for permanent diminution in value of
such investments.
Current investments are carried at lower of cost or market value. Diminution in value is charged in
the standalone statement of profit and loss account.
g) Revenue Recognition
Revenue on sales of product is recognized when risk and reward are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange
for those products.
Revenue from contracts priced on time basis are recognized when services are rendered. Revenue
from fixed fee contracts is recognized when milestones are achieved and no reasonable uncertainty
as to its realization exists.
Interest income is recognized on time proportionate basis.
Dividend income is accounted for as and when the right to receive is established.
h) Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the
date of the transaction or at rates that closely approximate the rate at the date of the transaction.
Monetary items denominated in foreign currencies outstanding at the year-end are translated at
the exchange rate prevailing on that date, and exchange gain or losses arising have been
transferred to the standalone statement of profit and loss.
Non-monetary items denominated in foreign currencies are valued at the exchange rates
prevailing on the date of transaction. Any gains or losses arising due to exchange difference on long
term foreign currency monetary items are accounted for in the standalone statement of profit and
loss.
Any gains or losses arising due to exchange differences at the time of settlement of payables are
accounted for in the standalone statement of profit and loss.
i) Employee Benefits
• Post-Employment Benefit:
Employee benefits include Provident Fund, Employee State Insurance and Labour Welfare Fund
as applicable to the company and are accounted for on accrual basis.
• Defined Benefit Plans:
Liability towards gratuity is accrued based on actuarial valuation using the projected Unit
Credit Method at the balance sheet date. Actuarial Gains and Losses are recognized
immediately in the standalone statement of profit and loss in the period in which they occur.
j) Taxation
Provision for income-tax is based on the taxable income computed in accordance with the provision
of the Income-tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being
the difference between taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent period.
Deferred tax assets are recognized on unabsorbed depreciation and carry forward of losses based
on virtual certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized.
k) Earnings Per Share
The Company reports basic and diluted earnings per share in accordance with Accounting Standard
20 - Earnings Per Share prescribed by the Companies (Accounting Standards) Rules, 2006. Basic
earnings per share is computed by dividing the net profit after tax attributable to the equity
shareholders by the weighted average number of equities shares outstanding for the year.
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