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Stayway Homes Private Limited: A. Significant Accounting Policies
Stayway Homes Private Limited: A. Significant Accounting Policies
Note: 16
Notes annexed to and forming part of the Balance Sheet as at 31st March, 2021 and Profit
and Loss Account for the year ended 31st March, 2021
i. The Company follows the accrual basis of accounting and recognizes Income &
Expenditure on accrual basis except those with significant uncertainties.
ii. The financial statements have been prepared under the historical cost convention
in accordance with the generally accepted accounting principles followed by the
Companies in India.
iii. Accounting Policies not specifically referred to otherwise are consistent and in
consonance with the generally accepted accounting principles followed by the
companies in India.
2) FIXED ASSETS:
Fixed Assets are stated at their original cost of acquisition/installation (net of cenvat
credit if availed) less depreciation. The Company capitalises all cost relating to
acquisition and installation of fixed assets including financing cost attributable to fixed
assets till assets are ready for intended use.
3) DEPRECIATION:
Depreciation is provided on Written Down Value method except for Software which is
provided on Straight Line Method at the rates and in manner specified in the Schedule II
in accordance with the provisions of section 123(2) of the Companies Act, 2013.
4) REVENEUE RECOGNITION:
Revenue from sale of goods & services is recognised when it is earned & no significant
uncertainty exists as to its ultimate collections.
5) INVENTORIES:
Inventories are valued at lower of cost and net realizable value. Cost includes direct and
indirect expenditure, which is determined based on specific identification to the business
activity.
6) BORROWING COST:
Net cost of borrowed funds for the projects are capitalised and included in the cost of
fixed assets till its completion and other borrowing costs are recognised as expenses in
the period in which they are incurred.
7) INCOME TAX:
Provisions are made for current income tax based on tax liability computed in
accordance with relevant tax rates & tax laws. Deferred tax is recognised, subject to the
consideration of prudence, on timing difference, 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.
8) PROVISION, CONTINGENT LIABILITIES AND ASSETS:
Provisions involving substantial degree of estimation in measurement are recognised
when there is a present obligation as a result of past events and it is probable that there
will be outflow of resources. Contingent liabilities are not recognised but are disclosed in
the notes. Contingent assets are neither recognised nor disclosed in the financial
statements.
9) RETIREMENT BENEFITS:
The retirement benefits to the staff shall be accounted on crystallisation of the liability.
The amount of accrued liability on account of Gratuity has not been ascertained as per
AS-15 Retirement Benefits. The details for calculation of retirement benefits not provided
hence amount of liability could not be quantified.
B. NOTES ON ACCOUNTS:
1) The information as required to be disclosed under the Micro, Small and Medium
Enterprises Development Act, 2006 has been determined to the extent such parties
have been identified on the basis of the information available with the Company and
which has been relied upon by us.
No such parties are identified.
2) In the opinion of the Board of Directors of the Company, the value of the Current
Assets, loan and advances are not less than the amount at which they are stated if
realised in the ordinary course of business.
5) Balance of GST subject confirmation of GST-1, GSTR—3B, GSTR-2A and annual return
of Goods & Service tax filling.
8) This is the first year of audit for the company as on financial year 2020-2021
Place: Nagpur
Date: 25/11/2021