1 Significant Accounting Policies
1.1 Basis of preparation of financial statements
These Financial statements have been prepared in accordance Indian Accounting Standards (Ind
As) according to the notification issued by the Ministry of Corporate Affairs under section 133 of
the Companies Act, 2013 ('the act') read with rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
1.2 Use of Accounting Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect
the reported amount of assets and liabilities on the date of financial Statements, the reported
amount of revenues and expenses during the reported period and disclosure of contingent liabilities.
Management believes that the estimates used in the preparation of financial statements are prudent
and reasonable. Actual results could differ from these estimates. Any revision to accounting
estimates is recognised prospectively in the current and future periods.
1.3 Revenue recognition
Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection.
1.4 Property, plant and equipment & Capital work-in-progress
Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.
Capital work-in-progress comprises the cost of the fixed assets that are not yet ready for their
intended use at the balance sheet date.
1.5 Depreciation and Goodwill
Depreciation is provided on the straight-line method as per the useful life prescribed in Schedule
II to the Companies Act, 2013.
The useful lives of assets are periodically reviewed and re-determined and the unamortised
depreciable amount is charged over the remaining useful life of such assets. Assets costing Rs.
5,000/-and below are depreciated over a period of one year
1.6 Foreign Currency Transactions
"The company translates all foreign currency transactions at Exchange Rates prevailing on the
date of transactions. Exchange rate differences resulting from foreign exchange transactions settled
during the year are recognized as income or expenses in the period in which they arise.“Monetary
current assets and monetary current liabilities that are denominated in foreign currency are
translated at the exchange rate prevalent at the date of the balance sheet. The resulting difference
is also recorded in the income or expenses."
1.7 Taxes on Income
"Income tax comprises current income tax and deferred tax. Income tax expense is recognized in
the statement of profit and loss except to the extent it relates to items directly recognized in equity
or in other comprehensive income.“a) Current income tax: Current income tax for the current and
prior periods are measured at the amount expected to be recovered from or paid to the taxation
authorities based on the taxable income for the period. The tax rates and tax laws used to compute
the current tax amount are those that are enacted or substantively enacted by the reporting date
and applicable for the period. The Company off sets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized amounts and where it intends
either to settle on a net basis or to realize the asset and liability simultaneously."
b) Deferred tax: Deferred tax asset and liabilities are measured at the tax rates that are expected
to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are
recognized and carried forward only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realized.
1.8 Earning Per Share (EPS)
In determining earnings per share, the company considers the net profit after tax expense. The
number of shares used in computing basic earnings per share is the weighted average shares
used in outstanding during the period.
1.9 Investments
Long term unquoted investments are stated at cost & all other investments are carried at lower of
cost or fair value.
1.10 Impairment of non-financial assets
"The Company assess at each reporting date whether there is any indication that the carrying
amount from non financial assets may not be recoverable. If any such indication exists, then the
asset's recoverable amount is estimated and an impairment loss is recognised if the carrying
amount of an asset or Cash generating unit (CGU) exceeds its estimated recoverable amount in
the statement of profit and loss.“Goodwill is tested annually for impairment. For the purpose of
impairment testing, goodwill arising from a business combination is allocated to CGUs or groups
of CGUs that are expected to benefit from the synergies of the combination."
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