Basis of accounting and preparation of financial statements
The Company is a Small and Medium Sized Company (SMC) as defined in the general
instructions in respect of Accounting Standards notified under the Companies Act 2013. The
financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting
Standards specified under Section 133 of the Companies Act 2013, read with Rule 7 of the
Companies (Accounts) Rules. 2014. The financial statements have been prepared on accrual
basis under the historical cost convention.
Basis of preparation
These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP), including the Accounting Standards prescribed
under Section 133 of the Companies Act. 2013 (the Act) read with Rule 7 of the Companies
(Accounts) Rules. 2014 and the relevant provisions of the Act. The financial statements are
prepared on accrual basis under the historical cost convention. The accounting policies adopted
in the preparation of the financial statements are consistent with those followed in the previous
year. The financial statements are presented in Indian rupees rounded off to the nearest hundreds,
up to 2 decimal places except as otherwise indicated.
Key Accounting Estimates and Judgments
The preparation of the financial statements in conformity with Indian GAAP requires the
management to make estimates and assumptions considered in the reported amounts of assets
and liabilities as on the date of the financial statements and the reported income and expenses
during the reporting period. The management believes that the estimates made in preparation of
the financial statements are prudent and reasonable. The management does not expect a material
impact due to application of such estimates in the preparation of financial statements and actuals.
Current / Non-current classification of assets / liabilities
The Company has classified all its assets / liabilities into current / non-current portion as per the
Company's normal operating cycle and other criteria set out in the Schedule III to the Act based
on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. Accordingly, assets / liabilities expected to be
realized/settled within twelve months from the date of financial statements are classified as
current and other assets / liabilities are classified as non-current.
Property, Plant and Equipments and Intangible Assets
Property. Plant and Equipments and Intangible Assets are stated at cost. Depreciation is
provided on written down value method as per the useful life specified in Schedule II of the
Companies Act 2013. Depreciation is charged on a pro-rata basis on addition/deduction during
the year.
As on every Balance Sheet dale the Company does an evaluation of its Property., Plant and
Equipments and Intangible Assets to determine if there is any impairment on the same. Such
impairment if any, is provided for.
Revenue Recognition
Sales
Sales are recognised on raising of invoices of the work executed for the customer and
there is no significant uncertainty as to its realisation.
Service Charges
Service charges are recognised on raising of invoices of the work executed for the
customer and there is no significant uncertainty as to its realisation.
Other Income
Interest Income is generally recognised on a time proportion basis taking into account the
amount outstanding and the rate applicable, when there is reasonable certainty as to realisation.
Dividend income is recognised when the right to receive dividend is established. Insurance
claims are accounted lor on the basis of claims admitted/expected to be admitted and to the
extent that there is no uncertainty in receiving the claims. All other items are recognised on
accrual basis.
Employee Benefits
Defined contribution plans:
A defined contribution plan is a post-employment benefit plan under which the Company
pays specified monthly contributions to Provident Fund. The Company's contribution is
recognized as an expense in the Statement of Profit and Loss during the period in which
the employee renders the related service.
Defined benefit plans:
The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan) covering
eligible employees. The Company’s liability is calculated using the Projected Unit Credit
Method and spread over the period during which the benefit is expected to be derived
from employees services. Actuarial losses/ gains are recognized in the Statement of Profit
and Loss in the year in which they arise.
Foreign Currency Transactions & Translation
Initial recognition
Transactions in foreign currency are recorded at the exchange rates prevailing on the date of
the transaction or at rales that closely approximate the rate on the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet date
Monetary items denominated in foreign currency at the yearend are restated at year end
rates.
Treatment of exchange differences
Any gam or loss on account of exchange difference either on settlement or translation is
recognised in the Statement of Profit and Loss as income or expenses.
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