| i) Basis of preparation of financial statement:
The accounts have been prepared on the basis of historical cost
convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 2013 as adopted
consistently by the company
ii) Method of accounting:
Method of accounting of accounting employed by the company is on
accural basis except in case of gratuity which is accounted on cash
basis.
iii) Use of estimates:
The preparation of financial statements in conformity with the
generally accepted accounting principles which requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period.
Differences between the actual results and estimates are recognised in
the period in which the results are known or materialized.
iv) Fixed assets and depreciation:
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Depreciation is provided on Straight Line Method at the
rates specified under Schedule II of the Companies Act, 2013, this
being the first year.
Depreciation on additions and deletions are provided on prorata basis.
v)Inventories:
Inventories are valued at cost or realizable value whichever is lower.
Projects under work in progress are carried at cost, comprising direct
cost, and related incidental expenses.
vi) Investments:
Long term investments are stated at cost unless there is any permanent
diminution in the vale of investments. Short term investment at cost/
market value whichever is less.
vii) Revenue Recognition:
Sales are recorded exclusive of Excise duty & Sales Tax and is
recognized when the risks and rewards of the ownsership is transferred
and there exists no uncertainty. Rent Income is booked on the accrual
basis as per the agreement with the lessee.
viii) Taxes On Income: Current Tax is the amount of tax payable on the
taxable income for the year as determined in accordance with the
provisions of the Income Tax Act,1961. Deferred tax is recognized for
all timing differences, subject to the consideration of prudence,
applying the tax rates that have been substantively enacted by the
Balance Sheet date.
viii) Provisions, Contingent liability and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
event and it is payable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
financial statements. Contingent assets are neither recognised nor
disclosed in the financial statements.
ix) Gratuity:
The company follows a policy of accounting for gratuity as and when it
is paid and doesn't get the actuarial valuation done.
|