1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES :
a. BASIS OF PREPARATION
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule III of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year
b. GENERAL
The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.
c. USE OF ESTIMATES
The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognised in the period in which the results are known/materialised.
d. FIXED ASSETS
Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.
e. DEPRECIATION
Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and method prescribed in the Schedule II of the Companies Act, 2013 and on pro rata basis for the additions / deletions during the year.
f. INVENTORIES
No Inventories are available with the company , Hence valuation of Inventeries is not applicable.
g. REVENUE RECOGNITION
Revenue is recognized and expenditure is accounted for on their accrual.
h. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognised nor disclosed in the financial statements.
i. INVESTMENTS
Investments that are readily realizable and intended to be held for not more than one year, are classified as current investments. All other investments are classified as long-term investments.
Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.
j. EMPLOYEE BENEFITS
i. Gratuity:
The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.
ii. Provident Fund:
The provisions of the Employees Provident Fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.
iii. Leave Salary:
In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.
k. IMPAIRMENT OF ASSETS
As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in previous periods.
Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.
l. BORROWING COST
Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.
A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.
m. DEFERRED REVENUE EXPENDITURE
Miscellaneous Expenditure are written off uniformly over a period of 5 years.
n. INCOME TAX
Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods. Deferred tax assets is not recognized unless there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
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