SIGNIFICANT ACCOUNTING POLICIES
A. BASIS OF ACCOUNTING:
a. The financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on accrual basis, the provisions of
the companies Act, 2013 (“the Act’) (to the extent notified) and guidelines issued by the
securities and Exchange Board of India (SEB1), The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the companies Indian Accounting Standards) Rule 2015
and relevant amendment rules issued thereafter.
b. Effective April I, 2017, the Company has adopted all the Ind AS standards and the
adoption was carried out in accordance with Ind AS 101 First time adoption of Indian
Accounting Standards, with April 1, 2016 as the transition date. The transition was carried
out from Indian Accounting Principles generally accepted in India as prescribed under
section 133 of the Act, read with Rule 7 of the Companies (AccountsO Rules, 2014
(IGAAP), which was the previous GAAP.
B. USE OF ESTIMATES:
The preparation of the Financial Statements are in conformity with Generally Accepted
Accounting Principles requires the Management to make estimates and assumptions considered in
the reported amounts of assets and liabilities (including contingent liabilities) and the reported
amounts of income and expenditure during the period. The Management believes that the estimates
used in preparation of the Financial Statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual results and the estimates are
recognized in the period in which the results are known/ materialized.
C. DIVIDEND:
The company has not declared any dividends.
D. PROPERTY, PLANT AND EQUIPMENTS:
Property, Plant and Equipments has been recorded at actual cost inclusive of duties, taxes and other
residual expenses related to acquisition, improvement and installation. The company depreciates
property, plant and equipments over their estimated useful lives using the WDV method.
The estimated useful lives of assets are as under:
For transaction to Ind AS, the Company has elected to continue with the carrying value of
all of its property, plant and equipments recognized as of April 1, 2016 (transition date)
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measured as per the previous GAAP and use that carrying value as its deemed cost as of
the transition date.
Intangible Assets:
Intangible Assets are stated at cost of acquisition or less accumulated amortization.
No depreciation on IPO expenses and goodwill.
E. IMPAIRMENT OF ASSETS :
Assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of
an asset’s net selling price and value in use.
G. BORROWING COST AND FINANCE CHARGES:
Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily
takes a substantial period of time to get ready for its intended use are capitalized as part of the cost
of the asset until such time that the assets are substantially ready for their intended use.
Capitalization of borrowing costs is suspended and charged to profit and loss during the extended
periods when the active development on the qualifying assets is interrupted. Qualifying fixed asset
is an asset that necessarily takes a substantial period of time to get ready for their intended use or
sale. All other borrowing costs are not charged to statement of Profit and Loss over the tenure of
the borrowing.
H. INVENTORIES:
Current Year inventory / WIP valued at lower of the cost and net realizable value. Quantity
records not maintain & no physical verification report.
I. REVENUE RECOGNITION:
Revenue is recognized to the extent it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duty except turn over with
related party. The Company assesses its revenue arrangements against specific criteria to determine
if it is acting as principle or agent. The company has concluded that it is acting as a principal is all
of its revenue arrangements except interest on loan and advances & investments.
J. TAXATION:
Taxes on Income are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made on the basis of estimated taxable income, in accordance
with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax
effect of timing difference The timing differences are differences between the taxable income and
accounting Income for a period that originate in one period and are capable of reversal in one or
more subsequent periods. However company has not paid income tax payable as per
provision made in profit loss account Rs. 23.501acs for FY 2023-24
MAT credit is recognized as an asset only when and to the extent there is convincing evidence that
the Comrtanv will nav normal income tax durine the specified period
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