2. SIGNIFICANT ACCOUNTING POLICIES
i.
Statement of compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards
(referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015. The Company has adopted Ind AS from
April 1, 2019 with effective transition date as April 1, 2018. These financial statements have been prepared in accordance with Ind AS as
notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 (the "Act").
The transition was carried out from Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014 ("IGAAP" or "previous GAAP"). An explanation of how the transition to Ind AS has
affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note no 3.
ii. Presentation of financial statements
The Balance Sheet, Statement of Profit and Loss (including other comprehensive income) and Statement of changes in Equity are
prepared and presented in the format prescribed in the Division III of Schedule III to the Companies Act, 2013 ("the Act"). The Statement
of Cash Flows has been prepared and presented as per the requirements of Ind AS. Amounts in the financial statements are presented in
Indian Rupees.
iii. Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair
value at the end of each reporting period as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services at the time of entering
into the transaction.
Measurement of fair values:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique.
Fair value for measurement and/or disclosure purposes for certain items in these financial statements is determined considering
following methods: Fair value measurements under Ind AS are categorised into Level 1, 2, or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are
described as follows:
a) Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
measurement date
b) Level 2: inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly
or indirectly; and
c) Level 3: inputs are unobservable inputs for the valuation of assets or liabilities that the Company can access at measurement date. For
details relating to valuation model and framework used for fair value measurement and disclosure of financial instrument refer to note
22.
iv. Use of estimates and judgements
The preparation of financial statements requires the management of the Company to make judgements, assumptions and estimates that
affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial
statements and reported amounts of income and expenses for the reporting period. The application of accounting policies that require
critical accounting estimates involving complex and subjective judgments and the use of assumptions in the financial statements have
been disclosed as applicable in the respective notes to accounts. Accounting estimates could change from period to period. Future results
could differ from these estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to the financial statements.
Judgements:
Information about judgements made in applying accounting policies that have a most significant effect on the amount recognised in the
financial statements is included following Notes:
-classification of financial assets: assessment of the business model within which the assets are held and assessment of whether
the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment during the
year ending March 31, 2020 is included in the following Notes: -
Note (10) - useful life of property, plant, equipment and intangibles.
Note (9) - recognition of deferred tax assets: availability of future taxable profit against which carryforward deferred tax asset can be set
off.
Note (22) - determination of the fair value of financial instruments with significant unobservable inputs.
v. Interest
Interest consists of consideration for (i) the time value of money; (ii) for the credit risk associated with the principal amount
outstanding;(iii) for other basic lending risks and costs; and (iv) profit margin.
Interest income and expense are recognised using the effective interest method. The effective interest rate (EIR) is the rate that exactly
discounts estimated future cash flows through the expected life of the financial instrument to the gross carrying amount of the financial
asset or amortised cost of the financial liability.
The calculation of the EIR includes all fees paid or received that are incremental and directly attributable to the acquisition or issue of a
financial asset or liability.
The interest income is calculated by applying the EIR to the gross carrying amount of noncredit impaired financial assets (i.e. at the
amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial assets the
interest income is calculated by applying the EIR to the amortised cost of the creditimpaired financial assets (i.e. at the amortised cost of
the financial asset after adjusting for any expected credit loss allowance (ECLs)). The Company assesses the collectability of the interest
on credit impaired assets at each reporting date. Based on the outcome of such assessment, the interest income accrued on credit
impaired financial assets are either accounted for as income or written off as per the write off policy of the Company.
The interest cost is calculated by applying the EIR to the amortised cost of the financial liability.
The 'amortised cost' of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on
initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any
difference between that initial amount and the maturity amount and, for financial assets, adjusted for any expected credit loss
allowance.
The 'gross carrying amount of a financial asset' is the amortised cost of a financial asset before adjusting for any expected credit loss
allowance.
vi. Dividend Income
Income from dividend on investment in equity and preference shares of corporate bodies and units of mutual funds are accounted when
received or on accrual basis when such dividends have been declared by the corporate bodies in their annual general meetings and the
ClC's right to receive payment is established.
vii. Financial Instruments
Financial assets and financial liabilities are recognised in the Company's balance sheet on trade date when the Company becomes a party
to the contractual provisions of the instrument. A loan is recorded upon remittance of the funds to the counterparty/obligor. Recognised
financial assets and financial liabilities are initially measured at fair value. Transaction costs and revenues that are directly attributable to
the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at Fair Value Through
Profit and Loss ("FVTPL") are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on
initial recognition. Transaction costs and revenues directly attributable to the acquisition of financial assets or financial liabilities at FVTPL
are recognised immediately in the statement of profit or loss.
If the transaction price differs from fair value at initial recognition, the Company will account for such difference as follows:
a) if fair value is evidenced by a quoted price in an active market for an identical asset or liability or based on a valuation technique that
uses only data from observable markets, then the difference is recognised in profit or loss on initial recognition (i.e. day 1 profit or loss);
b) in all other cases, the fair value will be adjusted to bring it in line with the transaction price (i.e. day 1 profit or loss will be deferred by
including it in the initial carrying amount of the asset or liability).
After initial recognition, the deferred gain or loss will be released to profit or loss on a rational basis, only to the extent that it arises from
a change in a factor (including time) that market participants would take into account when pricing the asset or liability
a) Financial assets
Classification
On initial recognition, depending on the Company's business model for managing the financial assets and its contractual cash flow
characteristics, a financial asset is classified as measured at:
1) amortised cost;
2) fair value through other comprehensive income (FVTOCI); or
3) fair value through profit and loss (FVTPL).
Initial recognition and measurement
A financial asset is recognised on trade date initially at cost of acquisition net of transaction cost and income that is attributable to the
acquisition of the financial asset. Cost equates the fair value on acquisition. A financial asset measured at amortised cost and a financial
asset measured at fair value through other comprehensive income is presented at gross carrying value in the Financial Statements.
Unamortised transaction cost and incomes and impairment allowance on financial asset is shown separately under the heading "Other
non-financial asset", "Other non-financial liability" and "Provisions" respectively.
Assessment of Business model
An assessment of the applicable business model for managing financial assets is fundamental to the classification of a financial asset. The
Company determines the business models at a level that reflects how financial assets are managed together to achieve a particular
business objective. The Company's business model does not depend on management's intentions for an individual instrument, therefore
the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis. The
Company could have more than one business model for managing its financial instruments which reflect how the Company manages its
financial assets in order to generate cash flows. The Company's business models determine whether cash flows will result from collecting
contractual cash flows, selling financial assets or both. The Company considers all relevant information available when making the
business model assessment. The Company takes into account all relevant evidence available such as:
1) how the performance of the business model and the financial assets held within that business model are evaluated and reported to the
entity's key management personnel and board of directors;
2) the risks that affect the performance of the business model (and the financial assets held within that business model) and, in
particular, the way in which those risks are managed; and
3) how managers of the business are compensated (e.g. whether the compensation is based on the fair value of the assets managed or on
the contractual cash flows collected).
4) At initial recognition of a financial asset, the Company determines whether newly recognised financial assets are part of an existing
business model or whether they reflect the commencement of a new business model. The Company reassesses its business models at
each reporting period to determine whether the business model/(s) have changed since the preceding period. For the current and prior
reporting period the Company has not identified a change in its business model.
Based on the assessment of the business models, the Company has identified the three following choices of classification of financial
assets:
a) Financial assets that are held within a business model whose objective is to collect the contractual cash flows ("Asset held to collect
contractual cash-flows"), and that have contractual cash flows that are solely payments of principal and interest on the principal amount
outstanding (SPPI), are measured at amortised cost;
b) Financial assets that are held within a business model whose objective is both to collect the contractual cash flows and to sell the
assets, ("Contractual cash flows of Asset collected through hold and sell model") and that have contractual cash flows that are SPPI, are
subsequently measured at FVTOCI.
c) All other financial assets (e.g. managed on a fair value basis, or held for sale) and equity investments are subsequently measured at
FVTPL.
Financial asset at amortised cost
Amortised cost of financial asset is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. For the purpose of testing SPPI, principal is the fair value of the financial asset at initial recognition. That principal
amount may change over the life of the financial asset (e.g. if there are repayments of principal). Contractual cash flows that do not
introduce exposure to risks or volatility in the contractual cash flows on account of changes such as equity prices or commodity prices
and are related to a basic lending arrangement, do give rise to SPPI. An originated or an acquired financial asset can be a basic lending
arrangement irrespective of whether it is a loan in its legal form.
The EIR amortisation is included in finance income in the profit and loss statement. The losses arising from impairment are recognised in
the profit and loss statement.
Financial asset at Fair Value through Other Comprehensive Income (FVTOCI)
Loans & Advances:
After initial measurement, basis assessment of the business model as "Contractual cash flows of asset collected through hold and sell
model and SPPI", & equity instruments such financial assets are classified to be measured at FVTOCI. Contractual cash flows that do
introduce exposure to risks or volatility in the contractual cash flows due to changes such as equity prices or commodity prices and are
unrelated to a basic lending arrangement, do not give rise to SPPI. The EIR amortisation is included in finance income in the profit and loss
statement. The losses arising from impairment are recognised in the profit and loss statement. The carrying value of the financial asset is
fair valued by discounting the contractual cash flows over contractual tenure basis the internal rate of return of a new similar asset
originated in the month of reporting and such unrealised gain/loss is recorded in other comprehensive income (OCI). Where such a
similar product is not originated in the month of reporting, the closest product origination is used as a proxy. Upon sale of the financial
asset, actual gain/loss realised is recorded in the profit and loss statement and the unrealised gain/ loss recorded in OCI are recycled to
the statement of profit and loss.
Investments in equity instruments:
At initial recognition an entity at its sole option may irrevocably designate an investment in an equity instrument as FVOCI, unless the
asset is:
• Held for trading, or
• Contingent consideration in a business combination.
Dividends are recognized when the entity's right to receive payment is established, it is probable the economic benefits will flow to the
entity and the amount can be measured reliably. Dividends are recognized in profit and loss unless they clearly represent recovery of a
part of the cost of the investment, in which case they are included in OCI. Changes in fair value are recognized in OCI and are never
recycled to profit and loss, even if the asset is sold or impaired.
Financial asset at fair value through profit and loss (FVTPL)
Financial asset, which does not meet the criteria for categorization at amortized cost or FVTOCI, is classified as FVTPL. In addition, the
Company may elect to classify a financial asset, which otherwise meets amortized cost or FVTOCI criteria, as FVTPL. However, such
election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as 'accounting
mismatch'). Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the statement
of profit and loss.
Investment in equity, security receipt, mutual fund, non-cumulative redeemable preference shares and cumulative compulsorily
convertible preference shares
Investment in equity, security receipt, mutual fund, non-cumulative redeemable preference shares and cumulative compulsorily
convertible preference shares are classified as FVTPL and measured at fair value with all changes recognised in the statement of profit
and loss. Upon initial recognition, the Company, on an instrument-by-instrument basis, may elect to classify equity instruments other
than held for trading either as FVTOCI or FVTPL. Such election is subsequently irrevocable. If FVTOCI is elected, all fair value changes on
the instrument, excluding dividends, are recognized in OCI. There is no recycling of the gains or losses from OCI to the statement of profit
and loss, even upon sale of investment. However, the Company may transfer the cumulative gain or loss within other equity upon
realisation.
Reclassifications within classes of financial assets
A change in the business model would lead to a prospective re-classification of the financial asset and accordingly the measurement
principles applicable to the new classification will be applied. During the current financial year and previous accounting period there was
no change in the business model under which the Company holds financial assets and therefore no reclassifications were made.
viii. Impairment of Financial Asset
The Company is required to recognise Expected Credit Losses (ECLs) based on forward looking information for all financial assets at
amortised cost, lease receivables, debt financial assets at fair value through other comprehensive income, loan commitments and
financial guarantee contracts. No impairment loss is applicable on equity investments.
At the reporting date, an allowance (or provision for loan commitments and financial guarantees) is required on stage 1 assets at 12
month ECLs. If the credit risk has significantly increased since initial recognition (Stage 1), an allowance (or provision) should be
recognised for the lifetime ECLs for financial instruments for which the credit risk has increased
significantly since initial recognition (Stage 2) or which are credit impaired (Stage 3).
The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD) and (iii)
the Exposure At Default (EAD). The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and
lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity
of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and
interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD
represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of
collateral value at the time it is expected to be realised and the time value of money.
The Company applies a three-stage approach to measure ECL on financial assets accounted for at amortised cost and FVOCI. Assets
migrate through the following three stages based on the change in credit quality since initial recognition.
Impairment of Trade receivable and Operating lease receivable
Impairment allowance on trade receivables is made on the basis of life time credit loss method, in addition to specific provision
considering the uncertainty of recoverability of certain receivables.
Modification and De-recognition of financial assets
Modification of financial assets
A modification of a financial asset occurs when the contractual terms governing the cash flows of a financial asset are renegotiated or
otherwise modified between initial recognition and maturity of the financial asset. A modification affects the amount and/or timing of
the contractual cash flows either immediately or at a future date. The Company renegotiates loans to customers in financial difficulty to
maximise collection and minimise the risk of default. A loan forbearance is granted in cases where although the borrower made all
reasonable efforts to pay under the original contractual terms, there is a high risk of default or default has already happened and the
borrower is expected to be able to meet the revised terms. The revised terms in most of the cases include an extension of the maturity of
the loan, changes to the timing of the cash flows of the loan (principal and interest repayment), reduction in the amount of cash flows
due (principal and interest forgiveness). Such accounts are classified as Stage 3 immediately upon such modification in the terms of the
contract.
Not all changes in terms of loans are considered as renegotiation and changes in terms of a class of obligors that are not overdue is not
considered as renegotiation and is not subjected to deterioration in staging.
De-recognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
1) the rights to receive cash flows from the asset have expired, or
2) the Company has transferred its rights to receive cash flows from the asset and substantially all the risks and rewards of the asset, or
the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to
recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
Write-off
Impaired loans and receivables are written off, against the related allowance for loan impairment on completion of the Company's
internal processes and when the Company concludes that there is no longer any realistic prospect of recovery of part or all of the loan.
For loans that are individually assessed for impairment, the timing of write off is determined on a case by case basis. A write-off
constitutes a de-recognition event. The Company has right to apply enforcement activities to recover such written off financial assets.
Subsequent recoveries of amounts previously written off are credited to the Statement of Profit and Loss.
IX. Financial liability and equity
Financial liabilities and equity Debt and equity instruments issued are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangement.
Financial liabilities
A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or financial
liabilities with another entity under conditions that are potentially unfavourable to the Company or a contract that will or may be settled
in the Company's own equity instruments and is a non-derivative contract for which the Company is or may be obliged to deliver a
variable number of its own equity instruments, or a derivative contract over own equity that will or may be settled other than by the
exchange of a fixed amount of cash (or another financial asset) for a fixed number of the Company's own equity instruments.
Classification
The Company classifies its financial liability as "Financial liability at amortised cost" except for financial liability at Fair Value through
Profit and Loss (FVTPL).
Initial recognition and measurement
Financial liability is recognised initially at cost of acquisition net of transaction costs and incomes that is attributable to the acquisition of
the financial liability. Cost equates the fair value on acquisition. Company may irrevocably designate a financial liability that meet the
amortised cost as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch (referred to as the fair value
option).
De-recognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have
expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is
recognised in profit or loss.
Equity
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity
instruments issued by the Company are recognised at the proceeds received, net of direct issue costs. A conversion option that will be
settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instruments
is an equity instrument.
No gain/loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
X. Cash, Cash equivalents and bank balances
Cash, Cash equivalents and bank balances including fixed deposits, margin money deposits, and earmarked balances with banks are
carried at amortised cost. Short term and liquid investments being subject to more than insignificant risk of change in value, are not
included as part of cash and cash equivalents.
XI. Property, plant and equipment
(a) Tangible
Tangible property, plant and equipment (PPE) acquired by the Company are reported at acquisition cost less accumulated depreciation
and accumulated impairment losses, if any. The acquisition cost includes any cost attributable for bringing asset to its working condition
net of tax/duty credits availed, which comprises of purchase consideration, other directly attributable costs of bringing the assets to their
working condition for their intended use. PPE is recognised when it is probable that future economic benefits associated with the item
will flow to the Company and the cost of the item can be measured reliably.
(b) Intangible
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed,
if any, less accumulated amortisation and cumulative impairment. Administrative and other general overhead expenses that are
specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
Expenses on software support and maintenance are charged to the Statement of Profit and Loss during the year in which such costs are
incurred.
(c) Depreciation and Amortisation
Depreciable amount for tangible PPE is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
Depreciation on tangible PPE deployed for own use has been provided on the straightline method as per the useful life prescribed in
Schedule II to the Companies Act, 2013 except in respect of Buildings, Computer Equipment, Vehicles, Plant and Machinery, Software,
Licenses, Furniture and Fixture and Office Equipment in whose case the life of the assets has been assessed based on the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, etc. Depreciation method is
reviewed at each financial year end to reflect expected pattern of consumption of the future economic benefits embodied in the asset.
The estimated useful life and residual values are also reviewed at each financial year end with the effect of any change in the estimation
of useful life/residual value which is accounted on prospective basis. Depreciation for additions to/deductions from, owned assets is
calculated pro rata to the remaining period of use. Depreciation charge for impaired assets is adjusted in future periods in such a manner
that the revised carrying amount of the asset is allocated over its remaining useful life.
Intangible Assets are amortised over the estimated useful life during which the benefits are expected to accrue, while Goodwill if any is
tested for impairment at each Balance Sheet date. The method of amortisation and useful life are reviewed at the end of each accounting
year with the effect of any changes in the estimate being accounted for on a prospective basis. Amortisation on impaired assets is
provided by adjusting the amortisation charge in the remaining periods so as to allocate the asset's revised carrying amount over its
remaining useful life.
(d) De-recognition of property, plant and equipment and intangible asset
An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the
asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit or Loss. An intangible asset
is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de¬
recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset,
are recognised in the Statement of Profit or Loss when the asset is derecognised.
XII Employee Benefits
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are
recognised during the year when the employees render the service. These benefits include performance incentive and compensated
absences which are expected to occur within twelve months after the end of the year in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future
compensated absences; and
(b) in case of non-accumulating compensated absences, when the absences occur.
The company does not have any Defined Benefit/Contribution Plan, neither any Long term Employee Benefit as such.
XIII Earnings per share
Basic earnings per share has been computed by dividing the profit after tax available for equity shareholders by the weighted average
number of shares outstanding during the year.Partly paid up shares are included as fully paid equivalents according to the fraction paid
up. Diluted earnings per share has been computed using the weighted average number of shares and dilutive potential shares, except
where the result would be anti-dilutive.
XIV Taxation
Income Tax
Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the Statement of Profit and Loss, Other
Comprehensive Income or directly in equity, when they relate to items that are recognised in the respective line items.
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax
payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be
paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted bythe reporting date. Current tax asset and liabilities are offset only ifthere is a legally enforceable rightto set off
the recognised amounts and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred Tax
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of
assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred
tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible
temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized
or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax
assets and liabilities on a net basis.
XV. Goods and Services Tax
The company does not deal in taxable goods and service under GST but the company pays Sitting Fees to its Directors which is liable to
GST under Reverse Charge Mechanism, hence the company is registered under Goods and Service Tax Act. Any GST input Tax credit is
expensed as per relevant accounting standard for the expenses.
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