SIGNIFICANT ACCOUNTING PQI TrTFg
C1) BASIS FOR ACCOUNTING POL TCIES (AS-1 )•
The Financial statements have been prepared on historical cost convent,on on the accrual basis, except otherwise stated In ccordance with the generally accepted accounting principles in India and provisions of the Companies Act, 2013 to the extent a^plicable^
Accounting policies have been consistently applied.
ni'r^hfr and liab,ilities have been classified as current non-current as
P cr°hmSary S"orrPal operatin9 cycle and other criteria set out in the Schedule III of Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
(2) CASH FLOW STATEMENTS fAS-.^)-
The Cash Flow statement is prepared by the "Indirect method" set
hvV„" Ak3 0n CaSh Fl0W Statements" presents the cash flows y operating, (nyestmg and financing activities of the Company. Cash
SsVoanhaenTVn ent P!'e,Sented in the cash f,ow statement consists of ash on hand, Demand deposits and term deposits with banks.
C3) REVENUE RECOGNITION (AS-Q)1
Sale and other income include the sale of products, and services profit from partnership firms, and interest income. '
In6rhf'r °f f °dS, iS reco9nized/ net of returns and trade discounts buyer6 tfanSfer °f Sl9nificant risks and rewards of ownership to the
Lh,tSHle °l Services iS recognized when services are rendered and related costs are incurred.
irrnTnf t-hCOme 'S recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
(4) property, plant and equipment (AS-3 0V
Property plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any.
^nTL°r l0SS!-S ar'Sln9 °n retirement or disposal of property plant nd equipment are recognized in the Statement of Profit and Loss.
I'. iPf°Vided °n thS strai9hMine method over the Act 2013. prescribed under Schedule II to the Companies
FOREIGN currency transactions fAS -1 1 )Ý
All foreign currency transactions are recorded at the rate of exchanae prevail,ng on the date of transaction. Exchange differences calculated
at bp?1? between fore,9n currency amount of contract translated at the exchange rate at the settlement date and the corresponding foreign currency amount translated at the date of inception of the forward exchange contract. Such exchange differences are recognized m the statement of profit and loss. 9
(6) INVESTMENT fAS-n)
^vestment in Uie capital of a Limited Liability Partnership firm is Contribution" ^ CaP,tal Contribution" and "Current Capital
Fixed Capital Contribution is long-term investment and stated at cost.
Current Capital Contribution is a short-term investment and is also stated at a cost
(7) EMPLOYEE BENEFITS IAS-1S)-
IchemeT thl ^ 3 def'ned benefit 9ratuit'' plan. The gratuity nrTf , n cCOmPanV ? C°Vered under a 9rouP gratuity offered by Lie of India. Every employee who has completed a minimum of 5
yeas service is entitled to gratuity, based on 15 days last drawn salary for every completed year of service.
(8) BORROWING COSTS (AS-161:
No Borrowing costs that can be attributable to qualifying assets is incurred during the year. Borrowing costs incurred durinq the year are charged to Statement of Profit and Loss.
(10) EARNING PER SHARE fEPS) f AS-2(n :
Basic Earnings Per Share is calculated by dividing the net profit/(loss) for the period attributable to the Equity shareholders by the weighted average number of equity shares outstanding during the period.
Diluted Earnings Per Share is calculated by dividing the net profit/(loss) attributable to Equity Share Holders and the weighted average number of shares outstanding to the effect of all dilutive
iPn°fneFtia>6cUhltY S^areS', (VIZ:. Conversion of unissued share capital into Equity Share Capital etc. is also recognized.)
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(11) TAXES ON INCOME fAS-??)-
Deferred Tax according to AS 22 is the Tax effect of timino differences Timing differences are the differences between taxable income and accounting income for a period that originate in one
periodsand ^ CaPab'e °f reVerSal in °ne °r subset
Standa0rdP22n"Arrn f3Tidrd ?r Deferred Tax pursuant to Accounting Standard 22 Accounting for Tax on Income" issued by ICAI.
According to the said Standard, the Deferred Tax of the current year is debited to the Statement of Profit and Loss Account.
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