21 Significant Accounting Poliicies & Notes on Standalone Financial Statements
(a) Basis of Accounting
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards
(hereafter referred to as the 'Ind AS') as notified by Ministry of Corporate Affairs pursuant to section 133 of the
Companies Act, 2013 ('the Act'), read with companies (Indian Accounting Standards (Ind AS)) Rules, 2015 and the
circulars and guideleines issued by the RBI from time to time to the extent they have an impact on the financial
statements and current practices prevailing in India. The financial statements have been prepared on an accrual basis and
under the historical cost convention. The financial statements are presented in Indian Rupees (INR) and all values are
recorded to the nearest ruppes (INR), except otherwise indicated.
(b) Use of Estimates
The preparation of the financial statement in comfimity with Indian AS requires the management to make judgments,
estimates and assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertaintity about these assumptions and estimates could
result in the outcomes requiring a material adjustments to the carrying amounts of assets or liabilities in future periods.
(c) Prior period Items
Previous years adjustments are on account of payment of taxes, duties, interest etc., of earlier years due to short / excess
provision thereof etc. which has been shown under the head 'Extraordinary Items.'
(d) Recognition of Income and Expenditure
All incomes and Expenditure are accounted on accrual basis. Sales, Purchases and all expenses are accounted for exclusive
of tax, duties, gst, cess, etc. collected on behalf of the government and are net of goods returned, discount, rate
difference, claim, etc. and are inclusive of other direct expenses on purchases.
(e) Government Grants
During the year under consideration the company has not received any government grants.
(f) Retirement benefits to Employees
Contribution to employee's benefit funds remitted to statutory authority, if any is charged to revenue. The Company's
liability towards gratuity to its employees is provided on the basis of an actuarial valuation basis. Actuarial gains and
losses are recognised in full in the statement of profit and loss in the year in which they occur. The company has made
provision on the basis of Gratuity Act.
(g) Borrowing Cost
The total borrowing cost on the acquisition of fixed assets if pertaining to the period up to the date on which the said fixed
assets have been put-to-use, has been capitalized in the respective fixed assets and the cost for the period after the said
fixed assets have been put-to-use has been debited to the Profit and Loss Account.
(h) Segment Reporting
The company has only one business segment and geographical segment. Therefore there is no separate reportable
segment as per AS-17.
(i) Dues to small scale and ancillary undertakings
According to the information and explanation provided to us, the Company has no amounts overdue under the Micro,
Small and Medium Enterprises Development Act, 2006 (MSMED) as at 31-03-2024 to the extent such parties have been
identified by the management.
Deferred Tax Liability/Asset is recognised as per AS-22 (Accounting for Taxes on Income) arising out of temporary timing
differences. During the year under consdieration, as per AS-22 "Accounting for Taxes on Income" issued by ICAI,
company has recognised deferred tax assets and hence, not recognised in the books of accounts .
(l) Impairment of Assets
The carrying amounts of the company's assets are reviewed at each balance sheet date. If any indication of impairment
exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated recoverable
amount.
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