Note - 2 - Significant Accounting Policies
2.1 Basis of Preparation of financial statements
lhe financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting
and comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central
Government in consultation with the National Advisory Committee on Accounting Standards {'NACAS'), and the relevant provisions
of the Companies Act, 2013, to the extent applicable.
2.2 Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Management
believes the assumptions used in the estimates are prudent and reasonable. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
2.3 Property, Plant and Equipments and Intangible Assets and depreciation / amortisation
Property, Plant and Equipments and Intangible Assets are stated at cost of acquisition less accumulated depreciation /
amortization and impairment. Cost includes purchase price and otner cost attributable to acquisition and installation of the assets.
Intangible assets are recognised only when it is probable that the future economic benefits that are attributable to the assets will
flow to the Company and the cost of such assets can be measured reliably. Intangible assets are stated at cost less accumulated
amortisation and impairment loss, If any. All costs relating to the acquisition are capitalised. Property, Plant and Equipments
individually costing upto Rs. 5,000 are fully depreciated in the year of purchase.
2.4 Investments
Long term investments are carried at cost. Provision for diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
2.5 Inventories
Inventories are valued at lower of cost or net realizable value.
2.6 Revenue recognition
Items of income are generally follows the practice of accounting on accrual basis.
2.7 Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates prevailing on the dates of the transactions. Exchange differences
arising on foreign currency transactions settled during the period are recognized in the profit and loss account of that period.
2.8 Segment Reporting
In accordance with the Accounting Standard 17 "segment reporting” as precribed under Companies (Accounting Standard) Rules.
2006 (as amended ) applicable to the company. The reporting related to same are disclosed in the Note No. 30
2.9 Employee benefits
Provident fund and Employees State Insurance
The Company is regular in contributions to the Provident Fund and Employees State Insurance at the prescribed rates. Provident
fund and Employee State Insurance dues are recognized when the liability to contribute to the provident fund and employees state
insurance arises under the respective Acts.
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2.10 Taxation
Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law)
and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income
for the year). The current charge for income taxes is calculated n accordance with the relevant tax regulations applicable to the
Company. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax
rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the
extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or
carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred
tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/
virtually certain (as the case may be) to be realised.
2.11 Earnings per share (EPS)
Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed
using the weighted average number of equity and potential equity shares outstanding during the year except where the results
would be anti-dilutive.
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