I Significant accounting policies
Basis of accounting and preparation of financial statements
(i) Compliance with Ind AS-
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act.
(ii) Historical cost convention-
The financial statements have been prepared on a historical cost basis, except for:
a) Certain financial assets & liabilities (including derivative instruments) and contingent consideration that are
measured at fair value.
b) Assets held for sale have been measured at fair value less cost to sell
c) Defined benefit plans - plan assets measured at fair value.
Use of Estimates
The preparation of the financial statements is in conformity with Ind AS requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities
on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results
could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any
revision to accounting estimates is recognized prospectively in the current and future periods.
Recognition of Revenue
Revenue from services business is recognized on accrual basis.
However, during the relevant year, the Company could not commence its operations, hence no revenue has been
recognized during the period under review.
Property, Plant and Equipment
Property, plant and equipments are carried at the cost of acquisition or construction less accumulated depreciation.
The cost includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and
installation of the respective assets. Borrowing Cost directly attributable to the acquisition or construction of those
fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalised.
Depreciation on property, plant and equipments is provided at rates computed on the basis of useful life of assets as
specified in Schedule II of the Companies Act, 2013 except in case of intangible assets and leasehold improvements
(33.33% on WDV Basis). Assets costing less than Rs. 5,000 each, are depreciated in full excluding residual value as
per schedule II, in year of purchase.
The estimated useful lives, residual values and depreciation method are reviewed at each financial year end and the
effect of any change is accounted for on prospective basis.
The future economic benefits associated with the assets will flow to the entity and the gain or loss on disposal is
recognized in the statement of profit & loss.
Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing and financing activities of the Company are segregated based
on audited financial statements.
Income Taxes
Income tax expense comprises of current and deferred income tax. Current and deferred tax is recognized in profit
or loss, except to the extent that it relates to items recognized in other comprehensive income. However, there is no
other comprehensive income during the current year. 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.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting
date. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognised
only to the extent that there is reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realized. In situations where the Group 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.
Minimum Alternative Tax (MAT) if paid in accordance with the provisions of Income Tax Act 1961, which gives
rise to future economic benefits in the form of adjustment of future income tax liability, is considered as asset in the
balance sheet. Further Company is following ICDR requirement.
Events Occurring After Balance Sheet Date
Events occurring after balance sheet date which affect the financial position to a material extent are taken into
cognizance, if any.
Employee benefits
The Liability on account of other retirement benefits such as contribution to the provident fund is charged to the
revenue. Provision for gratuity have been made on accrual basis and are charged to the revenue.
|