NOTE 1A: MATERIAL ACCOUNTING POLICIES
1. Basis of Preparation of Standalone Financial Statements
The Standalone Financial Statements are prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with
[Companies (Indian Accounting Standards) Rules,] and other relevant provisions of the Act, as
amended from time to time.
The Standalone Financial Statements have been prepared on a historical cost basis except for
certain assets which are valued at Fair Value.
The standalone financial statements are presented in Indian Rupees ('INR') and all values are
rounded to the nearest Lacs rupees only, except otherwise indicated.
2. Revenue Recognition
a) Sales of Services
Revenue from sale of services is accounted on the basis of billing to customers and includes
unbilled revenue accrued up to the end of the accounting period.
b) Interest
Interest income is recognized on Effective Rate of Return (ERR) method taking into account the
amount outstanding and interest rate applicable.
3. Property, Plant & Equipment
Property, Plant & Equipment are carried at cost less depreciation / amortization and impairment
loss, if any. The cost of fixed assets includes cost of acquisition and directly attributable cost for
bringing the assets in an operational condition for their intended use.
4. Depreciation
(i) Depreciation on fixed assets has been charged on pro-rata basis using straight line method
based on useful life specified in Schedule II of the Companies Act 2013.
(ii) Fixed Assets individually costing up to Rs 5,000/- are being fully depreciated in the year of
acquisition.
5. Employee Benefits
Retirement benefit are accounted for as and when the liability becomes due for payment.
6. Taxation
a) Current Tax
Provision for taxation is ascertained on the basis of assessable profits computed in accordance
with the provisions of Income Tax Act, 1961. However, where the tax is computed in accordance
with the provisions of Section 115 JB of the Income Tax Act, 1961 as the Minimum Alternate
Tax (MAT), it is charged off to the statement of Profit and Loss of the relevant year. However,
credit of MAT would be taken within the permissible time period when the company’s profits
would be subject to normal income tax rates.
b) Deferred Tax
Deferred Income Tax (expense or credit) is recognized for the current year temporary
differences between carrying amount of an asset or liability in the balance sheet and its tax
base.
Deferred Tax Assets in respect of unabsorbed depreciation and tax losses are recognized to
the extent it is probable that future taxable profit will be available against which they can be
utilized. However, in case of other items, recognition is done on the basis of reasonable
certainty.
Deferred Tax assets and liabilities are measured using the tax rates and the tax laws that have
been enacted or substantially enacted at the balance sheet date.
7. Financial instruments
a) Financial assets: All financial assets are recognized initially at fair value and subsequently
measured at amortized cost except for Investment in equity shares are measured at fair value
through other comprehensive income. Classification is made as initial recognition/transition and
is irrecoverable.
b) Financial Liabilities: All financial liabilities are recognized initially at fair value and
subsequently measured at amortized cost.
c) De-recognition: Financial assets are derecognized when right to receive cash flow from the
assets expired or at transfer of the financial assets and transfer qualify for de-recognition.
Financial liability is derecognized when the obligation under the liability is discharged or expires.
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