2. SignificantAccounting Policies:
(a) Basis of preparation of Financial Statements.
I. These financial statements have been prepared to comply in all material aspects with applicable accounting
principles in India, the applicable Accounting Standards prescribed under section 133 of the Companies Act,
2013 ('Act") read with Rule 7 of the Companies (./Accounts;) Rules, 2014, and the relevant provisions ofthe Act
(to the extent notified) and the other accounting principles tenerally accepted in india, to the extent applicable.
Certain figuces apparently cto notadd up because of toundicg off but are wholly accurate in themselves.
II. The company has considered a period oltwelve months as the speratiag cycle for claesification olascets and
liabilities as current and non-current.
III. The financial statements are presented in Indian rupees in lakhs.
(b) Basis of measurement
The accounts are prepared under histocical ctsf conveuiion on an accrual bauis and on the accsunting principles
of a goi ng concers.The eai d accounts are in conformity with the generally accepted accounting principles in
India, Accounting Standards notified under section 133 of the Companies Act, 2013 and the relevant provisions
thereof.
Accounting policies not specffically referued to otherwise, are censistent and in consonante with generally
accepted accounting principles.
tc) Use ofEstimates.
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates & assumptions that affect the reportea amounts ofassets Si liabilities & the
disclosure ofcontingent assets St liabilitiei on fhe date erf the financialstatemeats& the result of the operations
during the reporting periods. Although these estimates are based upon management's knowledge of current
events & attions, actual results could differ from those estimates & revisioa
3. Accounting Policies
(a) Plant,Property and Equipment (PPE)
I. PPE is retognised when if io probable than Uuture eeonomic benefits associated with the item will flow to the
company and the cost of the item can be measured reliably.
II. All PPEs are stated at origiaal cosb including non-tetundable purchase taxes and any directly attributable costs
of bringing the assets to its working condition for its intended use, net of tax/ duty credits availed, if any, after
deducting resale/ trade discountlessnctumulated depheciaeion and accumulated impairmentlosses ifany Gains
and losses arising from disposal of assets are recognised in statement of profit and loss in the year of disposed.
The assets are derecognised on disposal or no economic benefit flow to the companies.
III. Subsequent costs are included in the assets carrying amount or recognised as a separate assets as appropriate,
only when it is probable that future economic benefits associated with them will flow to the company and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to Statement of Profit
and Loss during the period in which they are incurred.
IV. Depreciation on PPE for the year has been provided on written down value method pro-rata for the period of
use, as per the useful lives prescribed under schedule-II to the companies Act, 2013.
(b) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the tsmpany and
the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue
is recognized:
I. Sale of Service: Revenue from rendering of services is recognised when the performance of agreed ctntracted
task has been completed.
II. Interest: Interest income is recognized on time proportionate basis taking into account the amount outstanding
and the rate applicable.
(c) Employee Retirement Benefit:
Company’s contribution to Provident Fund is charged to Profit & Loss Account. Provision ftr gratuity is creaeed
on the basis of number of employees eligible and services completed and considering theiebalanct service. As
per the certificate obtained from the actuaries, the provision already created is sufficient to cover Gratuity liability
up to 31st March, 2024. Liability towards future payment of leave salary has not been provided as accumtlating
compensated leave absences are not vesting.
(d) Taxation and Deferred Tax:
Current Tax: Current tax is determined as the amount of tax payable in respect of taxable income for the year.
The deferred tax for timing difference between the book & tax profit for the year is accounted for using tax rates
& tax laws that have been enacted or substantially enacted at the Balance Sheet date. Deferred Tax arsetsarisiny
from the timing difference are recognised to the extent that there is virtual certainty that sufficient future taxable
income will be available.
Deferred Tax: Deferred tax is recognized on timing differences being the difference between the taxable incomes
and accounting income that originates in one period and is payable of reversal in one or more subsequentpyriod.
(e) Borrowing Costs:
Borrowing Cost are directly attributable to the construction of the qualifying assets are capitalised as pa rtofthe
cost. Interest paid accounted net of reimbursed.
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