Note No. 1 : SIGNIFICANT ACCOUNTING POLICIES
A. Basis Of Preparation Of Standalone financial statements
The Standalone financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, accounting standards notified under section 133 of companies act, 2013 and the relevant provision of the companies act, 2013.
B. The preparation of the standalone financial statement in conformity with GAAP requires that the management of the company ("Management") make estimates and assumptions that affect the reported amounts of revenue and expenses of the year, reported balances of assets and liabilities, and disclosures relating to contingent assets and liabilities as of the date of the Standalone financial statements. Actual results could differ from those estimates.
C. Use of Estimates
The preparation of Standalone financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the Standalone financial statements and the reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in accordance with the requirements of respective accounting standard.
D. Property Plant & Equipment
Property Plant & Equipment are recorded at historic cost value. The company capitalizes all costs relating to acquisition and installation of Property Plant & Equipment.
E. Revenue Recognition
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the Interest Rate Applicable.
F. Employee Benefits
1. Defined Contribution Plan
The company has contributed on a defined contribution basis to employee’s provident fund and employee’s family pension fund towards post employment benefits.
2. Defined Benefit Plan
The gratuity act is applicable to the company during the year. The company has not created the trust for gratuity payment.
3. Other long-term employee benefits
The employees of the company are entitled to leave as per rules and regulations. However, there is no un-utilized leave and hence no actual actuarial valuation is carried out.
4. Company recognizes the undiscounted amount of short-term employee benefits during the accounting period based on service rendered by employee on cash basis.
G. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the income tax act, 1961. Deferred tax is recognized for all timing differences being the differences between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax liabilities are recognized and will be paid in upcoming years.
H. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources.
Contingent Liabilities are recognized when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources.
I. Depreciation
Depreciation on property, plant and equipment has been provided to the extent of depreciable amount on the Written Down Value Method (WDV).
Depreciation has been provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 on pro rata basis. Depreciation on addition to property, plant and equipment has been provided on pro-rata basis.
Restated depreciation has been provided for during the year considering restatement in depreciation right from the incorporation of company till current financial year. The Restated depreciation has been adjusted against General Reserve & Surplus.
J. Foreign Currency Transaction
The company does not have assets/liabilities at the year end denominated in foreign currency which requires translation at the rates of exchange prevailing on the Balance Sheet date in accordance with Accounting Standard 11 - "The Effects of Changes in Foreign Exchange ”
K. Other Accounting Policy
These are consistent with the generally accepted accounting principles. Note No.2
Based on guiding principles in the AS 17 - “Segment Reporting,” the primary business segment of the Company is developing and maintaining infrastructure projects and solar projects Service. Company operates in a single primary business segment, therefore disclosure requirements are not applicable. There is no reportable secondary segment.
Note No.3
Earning per Share has been calculated in accordance with Accounting Standard (AS) 20 “Earnings per Share” issued by the Institute of Chartered Accountants of India.
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