2] SIGNIFICANT ACCPUNTINfi POLICIES.

a) BASIS QF P REP A RAJIQNQF FINANCIAL STATEMENTS;

i) These financial statements have been prepared to comply with the Accounting Standards referred to In the Companies (Accounting Standards) Rules, 2006 notified by the Central Government in exercise of the power conferred under sub-section (1) (a) of section 642 and the relevant provisions of the Companies Act, 1956 read with the Rule 7 of Companies (Accounts) Rules, 2014 in tespect of section J33 of tne Companies Act, 2013 (the '^lAct”).

ii) The financial statements have been prepared on a going concern basis under the historical cost convention on accrual' basis. The accounting policies have been consistently applied by the Company unless otherwise stated.

iii) At! tne 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 Companies Act 2013.

b) U5E_QJLiSHMAX.ES:

The preparation of financial statements requires estimates and assumptions to oe made that affect the reported amount of assets and liabilities on the date of the financial statements and reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimate are recognised in tha period in which the results are known / materialised.

c) REVENUE RECOMMITJQN:

i) Revenue From the sale (Contract Receipt) is recognised in accordance wltn accounting standard-7 on percentage nf the completion method based on appraisal made by the contractees.

Ii) Revenue from the sale of goods is recognised upon passing of title to the customers, which generally coincides with their delivery.

iii) Revenue from services is recognised upon rendering of services and billed to the customers.

iv) Interest income is recognised on a time proportion ha sis taking into account the amount outstanding and tne apptieable interest rate.

d) FIXED ASSETS:

Tangible Fixed Assets are stated at cost less accumulated depreciation. The cost of assets comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Losses arising from the retirement^T^^nd^gains or losses arising from disposal of frxed

Ý—5 c v , assets which aie carried at cost a^Yecognfeck in the Statement of Profit and Loss.

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r) Depreciation on Fixed Assets is provided to tne extent of depreciable amount on the straight-tine Method. Depreciation is provided based on useful iife of the assets as prescriped in Schedufe II to the Companies Act, 2013

ii) Depreciation in respect of addition to the fixed assets is provided on Pro-rata basis in which such assets are acquired / installed.

lii) In case of assets costing less than Rs.SOOO/- deprecation® 100% is provided.

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i) Inventory of raw material arc values at cost adopting FIFO Basts.

ii) Work in progress is valued at actual raw materia! cost and estimated overheads which remained to be billed to the contractees.

g) IMPAIRMENT OF ASSETS;

At each baiance sheet date, the company review whetner tnere is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exits, an asset's recoverable amount is estimated. An Impairment toss is recognised whenever the carrying amount of assets exceeds its recoverable amount and charged to profit & loss account in the year in which assets is Identified as impaired. The recoverable is greater of the net selling price and value in use. tn assessing value in use, the estimate future cash flows are discounted to their present value based on an appropriate discount factor. The Impairment loss recognised rn prior accounting periods is reversed if there has oecn changed in the estimate of recoverable amount.

h) EMPLOYEES RETIREMENT BENEFIT:

Short term benefit payable to employees wholly within twelve months of rendering services such as salaries, wages etc. are recognised in the period in which the employee renders the related service.

Defined Contribution Plan; The Company's contribution to the state governed employees provident fund scheme is a defined contribution plan. The contribution paid/ payable under the scheme is recognized during the period in which the employee renders the related service.

Defined Benefit Pian: The Company’s employee's gratuity is accounted on accrual basis based on actuarial' valuation.

i) TAX ON INCOME:

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognised for aii the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent tnat there is a reasonable certainty that sufficient future taxable Income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax Jaws that have been enacted or substantively enacted by the Balance 5heet date. At each Balance Sheet date, the company reassesses unrecognised deterred tax assets, iF any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an .intent ion to settle the asset and the liability on a net basis. Deferred tax assets end deferred$ix. liabilities are offset when there \ V is a legally enforceable right to set off assets gainst representing current tax and

| where the deferred tax <jbi>etb and the deferred tax tiabijuAs refate to taxes on income if levied by the same governing taxation laws. t„*.\ '• '< ¹

j) CASH & CASH EQUIVALENTS f fPR PURPOSE OF CASH FLOW.STATEMENTl:

Cash comprises cash on hand and demand deposit with banks. Cash equivalent is short term deposit, highly liquid investments that are readily convertible into known amount of cash and which are subject to significant rise of change in value

kj CASH FLOW STATEMENT:

Cash flow is reported using the mmrect method, whereby profit is adjusted for effect af transactions on non-cash 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 are segregated based on the available information.