Accounting Policies of Sashwat Technocrats Ltd. Company

Mar 31, 2024

B. SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under
historical cost convention on accrual basis except for certain financial instruments which are
measured at fair values , the provisions of the Companies Act , 2013 (“the Act”) (to the extent
notified). The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

From the financial year 2017-2018 company has adopted Ind AS standards and the adoption is carried
out in accordance with Ind AS 101 first time adoption of Indian Accounting Standards, with 1^st April,
2016 as the transition date. The transition was carried out from Indian Accounting Principles
generally accepted in India as prescribed under section 133 of the Companies Act, 2013.

Accounting policies have been consistently applied except where a newly issued accounting standard
is initially adopted or a revision to an existing accounting standard requires a change in the accounting
policy hitherto in use.

2. USE OF ESTIMATES :

The preparation of financial statements in conformity with Ind AS requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of financial statements and the results of operations during
the reporting period. Although these estimates are based upon management''s best knowledge of
current events and actions, actual results could differ from these estimates.

3. METHOD OF ACCOUNTING :

The company follows mercantile system of accounting and recognizes income and expenses on
accrual basis.

4. RECOGNITION OF INCOME

i) Revenue from sale of goods is recognized when the property and all significant risks and rewards of
ownership are transferred to the buyer.

ii) Income from services - Income from sale of Services is recognized on the basis of services
rendered.

iii) Dividend - Dividend income is recognized when right to received is established by the reporting
date.

Provisions are recognized when the Company has legal and constructive obligations as a result of a
past event, for which it is probable that a cash outflow will be required and a reliable estimate can be
made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present
obligation and it is probable that a cash outflow will not be required to settle the obligation.

6. TAXES ON INCOME

Tax expenses for a period comprises of current tax and deferred tax.

Current Tax is measured at the amount expected to be paid to the tax authorities, after taking into
consideration, the applicable deduction and exemption admissible under the provision of the Income
Tax Act, 1961.

Deferred tax reflects the impact of current period timing difference between taxable income and
accounting income for the period and reversal of timing difference of earlier periods. Deferred tax is
measured based on the tax rates and the tax law enacted or substantively enacted at the balance sheet
date.

7. CASH AND CASH EQUIVALENT

Cash and cash equivalent in the cash flow statement comprises cash at bank and in hand and short¬
term investment with an original maturity of three months or less.

8. EARNING PER SHARE

The earnings per share are calculated by dividing the net profit for the year attributable to the equity
shareholders by the weighted average number of equity shares outstanding during the year. The
Company has not issued any potential equity shares and hence the basic and diluted earnings per share
are the same.

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Mar 31, 2014

1. BASIS OF ACCOUNTING

The financial statements are prepared as a going concern under historical cost convention basis, except those with significant uncertainty, and in accordance with the mandatory accounting standards as specified under Section 211(3C) of the Companies Act, 1956 and other provisions of Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

2. METHOD OF ACCOUNTING

The company follows mercantile system of accounting and recognizes income and expenses on accrual basis; however long-term employee benefits are accounted on cash basis.

3. RECOGNITION OF INCOME

Revenue from sale of goods is recognized when the property and all significant risks and rewards of ownership are transferred to the buyer.

4. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction (including incidental expenses related to acquisition/construction and installation of the asset) less accumulated depreciation.

5. EMPLOYEE BENEFITS

Short-term employee benefits such as PF, Bonus, and Leave Encashment are accounted on accrual basis.

The Company has not conducted Actuarial Valuation of long-term employee benefits, hence, present liability towards long-term employee benefits as at 31st March, 2014 has not been ascertained and provided which is not in accordance with AS-15 issued by the Institute of Chartered Accountants of India.

6. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company has legal and constructive obligations as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

7. DEFERRED TAX

Deferred Tax is recognized, subject to the consideration of prudence, on 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 subsequent periods. Deferred Tax Asset is not recognized unless there are timing differences, the reversal of which will result in sufficient income or there is virtual certainty that sufficient future income will be available against which such deferred tax asset can be realized.

8. CASH AND CASH EQUIVALENT

Cash and cash equivalent in the cash flow statement comprises cash at bank and in hand and short-term investment with an original maturity of three months or less.

9. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the profit and loss account.

10. EARNING PER SHARE

The earnings per share are calculated by dividing the net profit for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and hence the basic and diluted earnings per share are the same.

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Mar 31, 2013

1. BASIS OF ACCOUNTING

The financial statements are prepared as a going concern under historical cost convention basis, except those with significant uncertainty, and in accordance with the mandatory accounting standards as specified under Section 211(3C) of the Companies Act, 1956 and other provisions of Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

2. METHOD OF ACCOUNTING

The company follows mercantile system of accounting and recognizes income and expenses on accrual basis; however long-term employee benefits are accounted on cash basis.

RECOGNITION OF INCOME

Revenue is accounted on accrual basis.

3. FIXED ASSETS

Fixed Assets are stated at cost of acquisition or construction (including incidental expenses related to acquisition/ construction and installation of the asset) less accumulated depreciation.

4. EMPLOYEE BENEFITS

Short-term employee benefits such as PF, Bonus, and Leave Encashment are accounted on accrual basis.

The Company has not conducted Actuarial Valuation of long-term employee benefits, hence, present liability towards long-term employee benefits as at 31st March, 2013 has not been ascertained and provided which is not in accordance with AS-15 issued by the Institute of Chartered Accountants of India.

5. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company has legal and constructive obligations as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

6. DEFERRED TAX

Deferred Tax is recognized, subject to the consideration of prudence, on 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 subsequent periods. Deferred Tax Asset is not recognized unless there are timing differences, the reversal of which will result in sufficient income or there is virtual certainty that sufficient future income will be available against which such deferred tax asset can be realized.

7. CASH AND CASH EQUIVALENT

Cash and cash equivalent in the cash flow statement comprises cash at bank and in hand and short-term investment with an original maturity of three months or less.

8. IMPAIRMENT OF ASSETS

The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the profit and loss account.

9. EARNING PER SHARE

The earnings per share are calculated by dividing the net profit for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and hence the basic and diluted earnings per share are the same.

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Mar 31, 2012

A) Basis of preparation of financial statements:

The financial statements are prepared under the historical cost conventions, in accordance with Indian Generally Accepted Accounting Principles (GAAP) comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. All Income & Expenditure items having a material bearing on the financial statements are recognized on accrual basis.

B) Fixed Assets and Depreciation:

Fixed Assets are valued at cost and depreciation is provided on written down Value basis in accordance with the provisions of schedule XIV to the companies act, 1956.

C) Revenue recognition:

Revenue and expenses are accounted on accrual basis.

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Mar 31, 2011

A) Basis of preparation of financial statements:

The financial statements are prepared under the historical cost conventions, in accordance with Indian Generally Accepted Accounting Principles (GAAP) comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. All Income & Expenditure items having a material bearing on the financial statements are recognized on accrual basis.

B) Fixed Assets and Depreciation:

Fixed Assets are valued at cost and depreciation is provided on written down Value basis in accordance with the provisions of schedule XIV to the companies act, 1956.

C) Revenue recognition:

Dividend, Interest and other income are recognized in accordance with AS-9.

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Mar 31, 2010

A) Basis of preparation of financial statements:

The financial statements are prepared under the historical cost conventions, in accordance with Indian Generally Accepted Accounting Principles (GAAP) comprising the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company. All Income & Expenditure items having a material bearing on the financial statements are recognized on accrual basis.

B) Fixed Assets and Depreciation:

Fixed Assets are valued at cost and depreciation is provided on written down Value basis in accordance with the provisions of schedule XIV to the companies act, 1956.

C) Revenue recognition:

Dividend, Interest and other income are recognized in accordance with AS-9.