| 1. SIGNIFICANT ACCOUNTING POLICIES:
The financial statements have been prepared under historical cost
convention, on accrual basis, in accordance with the generally
accepted accounting principles (GAAP) in India and comply with the
Accounting standards prescribed under Section 133 of the Companies Act,
2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules,
2014 (as amended). The accounting policies have been consistently
applied by the Company.
All assets and liabilities have been classified as current and non-
current as per the Company's normal operating cycle and other criteria
set out in the Schedule III of the Act. Based on the nature of business
and the time between the acquisition of assets and their realization in
cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities
2. Use of Estimate
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
liabilities on the date of the financial statements and reported
amounts of revenues and expenses for the year. Actual results could
differ from these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Any revision to accounting estimates is
recognized prospectively in the current and future periods.
Fixed assets are carried at the cost of acquisition or construction
less accumulated depreciation. The cost of fixed assets includes
non-refundable taxes, duties, freight and other incidental expenses
related to the acquisition and installation of the respective assets.
Borrowing costs directly attributable to acquisition or construction
of those fixed assets which necessarily take a substantial period of
time to get ready for their intended use are capitalized.
Depreciation/ amortization
Depreciation / amortization on fixed assets is provided pro rata to the
period of use, based on written down value method at rates specified in
Schedule II of the Companies Act, 2013 except in case of intangible
assets and leasehold improvements. In view of the management such rates
represents the useful life of such assets.
Assets costing less than Rs 5,000 each, are depreciated in full
excluding residual value as per Schedule II, in year of purchase.
Asset category Rate of depreciation/ amortization
Intangible assets 33.33% on written down value basis
Leasehold
improvements Over the lease term or useful life whichever is
lower
3. Investments
Non-current investments are carried at cost less any
other-than-temporary diminution in value, determined separately for
each individual investment.
Current investments are carried at the lower of cost and fair value.
The comparison of cost and fair value is done separately in respect of
each category of investment.
4. Inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of inventories comprises all cost of purchase, cost of conversion
and other costs incurred in bringing the inventories to their present
location and condition.
5. Service Income
Service income is recognized as per the terms of contracts with
customers when the related services are performed, or the agreed
milestones are achieved.
6. Recognition of Income and Expense:
Items of income and expenditure are recognized on accrual basis.
9. Events occurring after balance sheet date:
Events occurring after balance sheet date which affect the financial
position to a material extent are taken into cognizance, if any.
10 Contingent Liabilities:
Contingent Liabilities are generally not provided for in the accounts
are shown separately under notes to the accounts if any.
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