1. CORPORATE INFORMATION
Shivalic Power Control Limited, (hereinafter referred to as “the company”) having its
registered office at Plot No. 72, Sector - 68, IMT Faridabad, Ballabgarh, Haryana, India,
121004 .
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP), including the Accounting Standards
notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on
accrual basis.
2.2 USE OF ESTIMATES
The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to
the carrying amounts of assets or liabilities in future periods.
2.3 REVENUE RECOGNITION
Expenses and Income considered payable and receivable respectively are accounted for on
accrual basis.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured.
2.4 PROPERTY, PLANT & EQUIPMENT
Property, Plant & Equipment including intangible assets are stated at their original cost of
acquisition including taxes, freight and other incidental expenses related to acquisition and
installation of the concerned assets less depreciation till date.
Company has adopted cost model for all class of items of Property Plant and Equipment.
2.5 DEPRECIATION
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method. Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
Depreciation on assets acquired/sold during the year is recognized on a pro-rata basis to the
statement of profit and loss till the date of acquisition/sale.
2.6 FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currencies during the year are converted at the rates closely
approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign
currency are restated at the year-end exchange rates. All exchange rate differences arising
from conversion in terms of the above are included in the statement of profit and loss.
2.7 INVESTMENTS
On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees and duties.
2.8 INVENTORIES
Inventories are valued as under:
• 1. Inventories : Lower of cost(FIFO) or net realizable value
• 2. Scrap : At net realizable value.
2.9 BORROWING COSTS
Borrowing costs that are attributable to the acquisition or construction of the qualifying
assets are capitalized as part of the cost of such assets. A qualifying assets is one that
necessarily takes a substantial period of time to get ready for its intended uses or sale. All
other borrowing costs are charged to revenue in the year of incurrence. No amount of
borrowing cost is capitalized during the year.
2.10 TAXES ON INCOME
Provision for current tax is made on the basis of estimated taxable income for the current
accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing
differences between the book and tax profits for the year is accounted for, using the tax rates
and laws that have been substantively enacted as of the balance sheet date.
2.11 EMPLOYEE BENEFITS
• (a) Defined contribution plans: The Company's contribution to Provident Fund and ESI is
considered as defined contribution plan and charged as an expenses based on the
amount of contribution required to be made and when service are rendered by the
employees.
• (b) Employee Benefit Plans:
o Defined contribution plans- The Company makes Provident Fund and ESI
contributions which are defined contribution plans, for qualifying employees. Under
the Schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The contributions payable to these plans by the
Company are at rates specified in the rules of the schemes.
• (c) The Company pay gratuity to the employees who have completed 5 years of service
with the company at the time when employee leaves the company.
2.12 RETIREMENT BENEFITS
Retirement benefits are accounted for as and when liability becomes due.
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