SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation
(i) Compliance with Ind-AS
These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the 'Ind-AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133
of the Companies Act, 2013('Act’) read with of the Companies (Indian Accounting Standards) Rules,2015 as
amended and other relevant provisions of the Act.
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These financial statements for the year ended 31 March, 2021 are the first financials with comparatives,
prepared under IndAS. For all previous periods including the year ended 31st March, 2020, the Company had
prepared its financial statements in accordance with the accounting standards notified under companies
(Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (herein after referred
to as ‘Previous GAAP’) used for its statutory reporting requirement in India.
The accounting policies are applied consistently to all the period presented in the financial statements.
(ii) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) Certain financial assets and liabilities that are measured at fair value;
2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;
3) defined benefit plans - plan assets measured at fair value;
(iii) Current non-current classification
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating
cycle (Twelve months) and other criteria set out in the Schedule III to the Act.
(iv) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off rupees in Lacs.
B. Use of estimates and judgments
The preparation of financial statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognized in the
period in which the results are known /materialized.
C. Property, plant and equipment
The Company has applied for the one time transition exemption of considering the carrying cost on the transition
date i.e. April 1, 2016 as the deemed cost under INDAS. Hence, regarded thereafter as historical cost.
Ind AS 101 Exemption: The Company has availed the exemption available under Ind AS 101, whereas the carrying
value of property plant and equipment has been carried forward at the amount as determined under the previous
GAAP netting off IND AS adjustment such as government grants. Considering the FAQ issued by the ICAI,
regarding application of deemed cost, the Company has disclosed the cost as at 1 April, 2016 net of accumulated
depreciation.
All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation:
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The Company has adopted Straight line method rates prescribed in Schedule II of the Act for providing
depreciation.
D. Investments and other financial assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
1) Those to be measured subsequently at fair value (either through other comprehensive income, or through
the Statement of Profit and Loss), and
2) Those measured at amortized cost.
The classification depends on the Company’s business model for managing the financial assets and the
contractual terms of the cash flows.
(ii) Measurement
At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the Profit & Loss are expensed in the Statement of Profit and Loss.
E. Valuation of Inventories
There are no inventories during the current year.
F. Revenue recognition
The company recognizes revenue when the amount of revenue can be reliably measured it is possible that future
economic benefits will flow to the company.
Revenue from services:
Revenue from services is recognized in the accounting period in which the services are rendered. But there is no
Revenue from services during the current year.
Other Income:
Other income is recognised on accrual basis.
G. Foreign Exchange Transaction:
During the current year company has not done any foreign exchange transition.
H. Borrowings:
The company has obtained loan from directors for mitigation of working capital requirement. The balance
outstanding at end of the year has been confirmed.
I. Tax Expense:
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and
Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which
case, the tax is also recognized in other comprehensive income or equity.
- Current tax
Provision for current tax is not made as the company is having Loss in the current financial year.
- Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.
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