| Basis of preparation of Financial Statement
The Financial Statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these Financial Statements to
comply in all material respect with the accounting standards notified
under the Companies ( Accounting standards) Rule, 2006, ( as amended)
and the relevant provision of the companies Act, 2013.
The Financial Statements have been prepared on the accrual basis and
under the historical cost convention.
Summary of significant accounting policies :
a. 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 event 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 period.
b. Tangible fixed assets
Fixed assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes
non-refundable taxes, duties, freight and other incidental expenses
related to the acquisition and installation of the respective assets.
c. Depreciation on tangible fixed assets
Depreciation on fixed asset is provided 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.
d. Revenue recognition
Having regards to the size, nature and level of operation of the
business, the company is applying accrual basis of accounting for
recognition of income earned and expenses incurred in the normal
course of business.
e. Inventories
Inventories include investments in shares of other companies. The
company classified such investments as inventory and valuation of them
has been made at cost.
f. Income taxes
Tax expense comprises current tax and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities
in accordance with the income tax Act, 1961 enacted in India and tax
law prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at the reporting date.
Deferred income taxes reflect the impact of timing difference between
taxable income and accounting income originating during the current
year and reversal of timing difference for the earlier year. Deferred
tax is measured using the tax rate and tax laws enacted at the
reporting date. During the year DTA has been created on timing
difference between depreciation.
Deferred tax liabilities are recognized for all taxable timing
difference. Deferred tax assets are recognized for deductible timing
difference only to the extent that is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situation where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future
taxable profits.
g. Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resource
embodying economic benefits will be require to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are
determined based on the best estimate required to settle the
obligation at the reporting date. These estimates are review at the
end of each reporting date and adjusted to reflect the current best
estimates.
h. Earning Per Share
Basic earnings per share has been calculated by dividing the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period. Diluted earning per share has been computed by dividing the
net profit after tax by the weighted average no. of equity shares
considered for deriving basic earning per share and also the weighted
average no. of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
i. Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash at bank and
short term investments with the original maturity of three months or
less.
j. Previous year figures
The company has reclassified previous year figures to conform to
current year's classification.
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