a. 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
accounting standard is initially adopted or a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use.
b. Use of estimates
The preparation of the financial statements in conformity with Ind AS requires the 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. Actual results could differ from those estimates. Appropriate changes in estimates are made as the
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.
c. Revenue recognition
Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue is recognised to the extent that it is
probable that the economic benefit will flow to the company and the revenue can be reliably measured. The
Company is following IND-AS 115 for recognition of revenue.
d. Cash flow
Cash flows are reported using the indirect method, whereby profit / (loss] before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the Company
are segregated based on the available information.
e. Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Cost
directly attributable to acquisition are capitalised until the property, plant and equipment are ready for use,
as intended by the management. Depreciation has been provided on written down value method in
accordance with section 198 of the Companies Act, 2013 at the rates specified in schedule II to the Companies
Act, 2013, on pro-rata basis with reference to the period of use of such assets.
f. Inventories
Inventories are valued at cost or net realizable value whichever is lower.
g. Amortisation of intangible assets
Intangible Assets as defined in Accounting Standard 26- “Intangible Assets" are valued at cost and amortised
as per its useful life and value in use.
h. Impairment of assets
The carrying amounts of Cash Generating Units/Assets are reviewed at each Balance Sheet date to determine
whether there is any indication of impairment. If any such indication exists, the recoverable amount is
estimated at the higher of net realisable value and value in use. Impairment loss is recognised wherever
carrying amount exceeds the recoverable amount.
i. Earnings per share
Earnings per Share has been computed in accordance with IND AS 33 - "Earning Per Share" by dividing the net
profit or loss for the period attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period. The earnings considered for ascertaining the company's Earnings per
Share is the net profit after tax.
j. Income tax
Tax expense comprises of current tax and deferred tax. Provision for current tax is made for the tax liability
payable on taxable income after considering the allowances, deductions and exemptions and disallowances if
any determined in accordance with the prevailing tax laws.
Deferred income tax reflects the current period timing difference between taxable income and accounting
income for the period and reversal of timing difference of earlier years/period. Deferred tax assets are
recognised only to the extent that there is a reasonable certainty that sufficient future income will be
available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised
if there is a virtual certainty that sufficient future taxable income will be available to realise the same.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
|