4) Significant Accounting Policies:
a) Overall Considerations :-
The financial statements have been prepared using significant accounting policies and
measurement basis that are in effect at 31st March, 2024 as summarised below:-
b) Current versus non-current classification:-
The company presents assets and liabilities in the balance sheet on current and non-current
classification:-
i) The asset/liability is expected to be realised/settled in normal operating cycle;
ii) The asset is intended for sale or consumption;
iii) The asset/liability is held primarily for purpose of trading;
iv) The asset/liability is expected to be realised/settled within twelve months after reporting
period;
v) The asset is cash or cash equivalent unless it is restricted from being exchanged or used to
settle a liability for at least twelve months after reporting date;
vi) In the case of a liability, there is no unconditional right to defer settlement of the liability
for at least twelve months after reporting date;
All other assets and liabilities are classified as non-current.
c) Cash and Cash Equivalents
For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents
includes cash on hand, cash at bank, highly liquid investments with original maturities of
three months or less , which are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
d) Taxation
Tax expense recognised in the Statement of Profit or Loss comprises the sum of the current tax
and deferred tax except the ones recognised in Other Comprehensive Income or directly in
Equity.
i) Current Income Tax
Calculation of current tax is based on tax rates and tax laws that have been enacted for
the reporting period. Current Income Tax relating to items recognised outside the
profit or loss is recognised either is Comprehensive Income or in Equity.
Current Income Tax for the current and prior periods is recognised at the amounts
expected to be paid to or received from the tax authorities, using the tax rates and the
tax laws enacted or substantively enacted by the Balance Sheet date.
The Company off sets current tax assets and liabilities , where it has legally
enforceable right to set off the recognised amounts and where it intends either to settle
on a net basis , or to realise the asset and settle the liability simultaneously.
ii) Deferred Tax
Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply to the period when the asset is realized or the liability is settled based on the tax
rate (and tax laws) that have been enacted or substantively enacted at the end of the
reporting period.
Deferred tax is recognised in respect of the temporary differences between the
carrying amount of assets and liabilities for the financial reporting purposes and the
corresponding amounts used for taxation purposes (i.e. tax base).
Deferred tax assets are recognised to the extent possible that the taxable profit will be
available against which the deductible temporary differences can be utilized.
Entire deferred tax asset to be utilized. Any reduction is reversed to the extent possible
that it becomes probable that sufficient taxable profit will be available.
Deferred tax relating to the items recognised outside the Statement of Profit and Loss
is recognised either in other comprehensive income or in equity. Deferred tax assets
and liabilities are offset when there is legally enforceable right to set off the non¬
current assets against non-current liabilities and when they relate to income taxes
levied by the same taxation authority and the Company intends to settle its non¬
current assets and liabilities on a net basis.
iii) Minimum Alternate Tax
Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives
future economic benefits in the form of adjustment to future tax liability, is considered
as an asset if there is convincing evidence that the Company will pay normal income
tax .MAT Credits are in form of unused tax credits that are carried forward by the
Company for a specified period of time. Accordingly, MAT Credit Entitlement has
been grouped with deferred tax assets (net). Correspondingly, MAT Credit
Entitlement has been grouped with deferred tax in Statement of Profit and Loss.
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