a. Basis of preparation
These standalone financial statements comply in all material aspects with Accounting Standards (AS) specified under Section 133 of the Companies Act, 2013 (the Act) read with Rule 7 of the Companies (Accounts) Rules, 2014.
Statement of accounts are prepared on historical cost basis, following accrual basis of accounting.
The Company presents assets and liabilities in the balance sheet based on current/non-current classification. Asset is classified as current when it is expected to be realised or intended to be sold or consumed in the normal operating cycle and; liability is classified as current when it is due to be settled within the operating cycle or twelve months after the reporting period. The operating cycle of the Company is considered to be period of 12 months.
During the year, the Company completed amalgamation of it’s wholly owned subsidiaries with itself, pursuant to ‘Scheme of Amalgamation’ (the “Scheme”) approved by NCLT. Refer Note 20.10 for details.
b. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured excluding taxes or duties collected on behalf of the Government.
Lease of real estate
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms.
c. Other income Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the interest rate applicable. Interest income is included in other income in the statement of profit and loss.
Dividends
Income from dividend on investments is accrued in the year in which it is declared, whereby the Company’s right to receive is established.
d. Tangible fixed assets
Tangible fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the tangible fixed assets and borrowing costs for long-term construction projects if the recognition criteria are met.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The Company, based on technical assessment made by technical expert and management estimate, depreciates all the assets over estimated useful life which is also the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
The residual values, useful lives and methods of depreciation of Tangible fixed assets are reviewed at each financial year end and adjusted prospectively, if appropriate.
e. Taxes
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss of the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rate enacted or substantially enacted at the reporting date.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. In view of prevailing circumstances, deferred tax asset has been recognised on brought forward losses and unused tax credits only to the extent of virtual certainty. Deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered and vice versa.
f. Employee benefits
Short-term employee benefit are expensed as the related service is provided. Liabilities for wages and salaries, that are expected to be settled wholly within one year after the end of the period in which the employees render the related service are the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. The Company does not have any long-term/ post-retirement employee benefit obligation.
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