| a. BASIS OF PREPARATION:
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) in compliance with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended) and
the relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention. Further in view of the revised schedule VI of the
Companies Act, the company has also reclassified the previous year
figures in accordance with the requirements applicable for the current
year
b. GENERAL:
The company follows the accrual method of accounting. The financial
statements have been prepared in accordance with the historical cost
convention and in accordance with. Expenses are accounted on their
accrual with necessary provision for all known liabilities and losses.
c. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the required amount of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Difference between the actual amounts and the estimates are recognised
in the period in which the results are known/materialised.
d. FIXED ASSETS:
Fixed assets are stated at cost including taxes, duties, freight,
insurance etc. related to acquisition and installation.
e. DEPRECIATION:
Depreciation is provided to the extent of depreciable amount on written
Down Value (WDV) at the rates and method prescribed in the Schedule II
of the Companies Act, 2013 and on pro rata basis for the additions /
deletions during the year.
f. INVENTORIES:
There are no inventories lying with the company at the end of the
period. Earlier, inventories were valued at lower of Cost or NRV.
g. REVENUE RECOGNITION:
Revenue is recognized and expenditure is accounted for on their
accrual.
h. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are disclosed when the company has possible
obligation or a present obligation and it is probable that a cash flow
will not be required to settle the obligation. Contingent Assets are
neither recognized nor disclosed in the financial statements.
i. INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than one year, are classified as current investments. All other
investments are classified as long-term investments.
Current Investments are stated at lower of cost or market rate on
individual investment basis. Long Term Investments are considered "at
cost", unless there is other than temporary decline in value thereof,
in which case, adequate provision is made against such diminution in
the value of investments.
j. EMPLOYEE BENEFITS:
(i) Gratuity:
The liability for gratuity has not been provided as per the provisions
of Payment of Gratuity Act, 1972 since no employee of the company is
eligible for such benefits during the year.
(ii) Provident Fund:
The provisions of the Employees Provident Fund are not applicable to
the company since the number of employees employed during the year were
less than the minimum prescribed for the benefits.
(iii) Leave Salary:
In respect of Leave Salary, the same is accounted as and when the
liability arises in accordance with the provision of law governing the
establishment.
k. TAXATION:
Taxes on Income are accrued in the same period as the revenue and the
expenses to which they relate. Deferred tax assets are recognized to
the extent there is a virtual certainty of its realization.
l. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for
impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Impairment Loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
m. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged off to revenue.
A qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use or sale.
n. DEFERRED REVENUE EXPENDITURE:
Miscellaneous Expenditure are written off uniformly over a period of 5
years.
o. INCOME TAX:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the prudence, of timing differences, being the difference between
taxable incomes and accounting income that originate in one period and
are capable of reversal in one or more periods.
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