SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1.1 Statement of Compliance
The Financial Statements have been prepared in accordance with IND AS notified under the companies
(Indian Accounting Standard) Rules, 2015. The Company has adopted Indian Accounting Standard from April
1,2016 and accordingly these standalone financial statements have been prepared with IND ASs notified
by section 133 of Companies Act, 2013 read with relevant rules issued there under from time to time, to
the extent applicable to the Company.
1.2 Basis of preparation of Financial statements
These financial statements are prepared in accordance with Indian Accounting Standards (IND AS), under
the historical cost convention on the accrual basis except for certain financial instruments which are measured
at fair values, the provisions of the Companies Act , 2013 (‘the Act’) (to the extent notified) and guidelines
issued by the Securities and Exchange Board of India (SEBI). The IND AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the
relevant amendment rules issued thereafter.
Accounting policies have been consistently applied except where a newly issued Indian accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.
1.3 Use of Estimates
The preparation of the financial statements in conformity with IND AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application
of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent
assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the period. Appropriate changes in estimates are made as management becomes aware of changes
in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements
in the period in which changes are made and, if material, their effects are disclosed in the notes to the
financial statements.
1.3.1 Useful lives of property, plant and equipment & capital work in progress
The Company reviews the useful life of property, equipment & Capital work in progress at the end of each
reporting period or more frequently. The reassessment may result in change in depreciation expenses in
future periods.
1.3.2 Provisions and contingent liabilities
A provision is recognized when the company has a present obligation as a result of past event and it is
probable than an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance
sheet date adjusted to reflect the current best estimates. Contingent liabilities are not recognized or disclosed
in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.
1.4 Impairment of Assets
1.4.1 Financial assets (other than at fair value)
The company assesses at each balance sheet date whether a financial asset or a group of financial assets
is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The
company recognizes lifetime expected losses for all contract assets and/or all trade receivables that do not
constitute a financing transaction.
1.5 Income Taxes
Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net
profit in the statement of profit and loss except to the extent that it relates to items recognized directly in
equity, in which case it is recognized in other comprehensive income.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realized.
The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right
to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset
and settle the liability simultaneously.
1.6 Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation /amortization and impairment,
if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are
ready for use, as intended by management. The cost of property, plant & equipment also includes initial
estimates of dismantling cost and restoring the site to its original position, on which the site is located.
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever
there is an indication that their carrying amounts may not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU)
to which the asset belongs. If the recoverable amount of an asset (or CGU) is estimated to be less than
its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An
impairment loss is recognized in the statement of profit or loss. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such
reversal is recognized in the statement of profit or loss.
1.7 Investment Properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated
impairment loss, if any.
1.8 Financial Instrument
The company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets (Except Net Investments) and financial liabilities (Except
Borrowings) are recognized at fair value on initial recognition, except for trade receivables and security
deposits, which are initially measured at transaction price. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or
loss are added to the fair value on initial recognition.
Financial liabilities are subsequently carried at amortized cost using the effective interest method, except
for contingent consideration recognized in a business combination, which is subsequently measured at fair
value through profit and loss.
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts
are approximately at fair value due to the short maturity of these instruments.
1.9 Borrowings
Preference Shares are separated into equity and liability components based on the terms of the issue /
contract. On issuance of the preference shares, the fair value of the liability component is determined using
a market rate for an equivalent instrument. This amount is classified as financial liability and it is measured
at amortized cost method until it is extinguished on conversion or redemption. The reminder of the proceeds
is recognized and included in equity component is not re-measured in subsequent years.
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