Note 2: Significant Accounting Policies
The accounting policies set out below have been
applied consistently to the periods presented in these
financial statements,
The financial statements for the year ended 31st
March 2025 have been prepared in accordance with
Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Companies Act, 2013 read
with Companies (Indian Accounting Standards) Rule, as
amended from time to time. The Company has prepared
these financial statements to comply in all material
respects with the mandatory and relevant Accounting
Standards issued by the Institute of Chartered
Accountants of India and the relevant provisions of the
Companies Act, 2013 as mentioned above. Financial
statements have been prepared under the historical
cost convention with the exception of certain assets
and liabilities that are required to be carried at fair
value by Ind AS.
Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date.
All assets and liabilities have been classified as
current and non-current as per the Company’s normal
operating cycle and other criteria set out in the Schedule
III of the Companies Act, 2013. Based on the nature of
its business and of the services provided, the Company
has ascertained its operating cycle as 12 months for
the purpose of classification of its assets and liabilities
into current and non- current as per the requirement of
Schedule III of the Companies Act, 2013.
The Significant accounting policies followed by the
Company are stated below -
(A) DISCLOSURE AND PRESENTATION OF FINANCIAL
STATEMENTS AND USE OF ESTIMATES
Preparation of the financial statements requires
the use of estimates, judgments and assumptions that
affect the reported amount of assets and liabilities
as at the Balance Sheet date, reported amounts of
revenues and expenses during the period and disclosure
of contingent liabilities as at that date. The estimates
and assumptions used in the financial statements
are based upon the management’s evaluation of the
relevant facts and circumstances as the date of financial
statements. Although these estimates are based upon
management’s best knowledge of current events
and actions, actual results could differ from these
estimates. Any revisions to the accounting estimates
are recognized prospectively in the current and future
years. The financial statements for the year ended
31st March 2025 are prepared and presented in the
format prescribed in Schedule III of the Companies Act,
2013. Previous year’s figures has also been reclassified
in accordance with the disclosure and presentation
requirements applicable for the current year.
(B) PROPERTY, PLANT AND EQUIPMENT
Expenditure which are of a capital in nature are
capitalized at a cost, which comprises of purchase
price, import duties, levies and any directly attributable
cost of bringing the property, plant and equipment to
its working conditions for the intended use. None of
the property, plant and equipment have been revalued
during the year under consideration.
(C) DEPRECIATION
Depreciation on property, plant and equipment held for
own use of the Company is provided on written down
value method as per the useful years of life of the
assets and in the manner prescribed under Schedule II
of the Companies Act, 2013.
The Company has adopted the following as the useful
years of life to provide depreciation on its property,
plant and equipment as provided in Schedule II of the
Act.
(D) INVENTORY VALUATION
Inventories are stated at cost or net realizable value
whichever is less and are based on physical verification
conducted by the management.
(E) FINANCIAL ASSETS
Financial assets and financial liabilities are recognized
when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair
value through profit and loss) are added to or deducted
from the fair value measured on initial recognition of
financial asset or financial liability. The transaction
costs directly attributable to the acquisition of financial
assets and financial liabilities at fair value through profit
and loss are immediately recognized in the statement
of profit and loss.
(F) CASH FLOW STATEMENT
Cash and Cash Equivalents (for purposes of Cash Flow
Statement)
Comprises; cash in hand, deposits with bank and cash
equivalents with an original maturity of less than one
year held for the purpose of meeting short term cash
commitments.
Cash flows are reported using the indirect method,
whereby profit after tax is adjusted for the effects
of transactions of non-cash nature and any deferrals
or accruals of past future cash receipts or payment.
The cash flows from operating, investing and financing
activities of the Company are segregated based on the
available information.
(G) INVESTMENTS
The Company has not made any investments during the
period under review
(GA)INTER-CORPORATE DEPOSITS
The Company has made inter corporate deposits with
M/s MPG Hotels and Infrastructure Private Limited of
Rs 400 lakhs on 10th September 2020 for a period of
12 months which has been subsequently renewed for
12-month periods which carries an interest rates of 7
percent per annum, and further deposit of Rs. 100 lakhs
on 02nd April 2022 for period of 12 months on renewable
basis and which carries an interest rate of 9 percent,
out of the surplus funds. The deposits are classified
under the head “Short Term Loans and Advances” in the
Balance Sheet.
(H) FOREIGN EXCHANGE TRANSACTIONS
(i) Transactions denominated in foreign currencies are
recorded at the exchange rate prevailing on the
date of the transactions.
(ii) Monetary items denominated in foreign currencies at
the year end and not covered by forward exchange
contracts are translated at year end rates. The Gain/
loss on settlement/reinstatement are capitalized if
such liability relates to acquisition of fixed assets
and charged to revenue in other cases.
(I) PRIOR PERIOD INCOME, EXCEPTIONAL ITEMS AND
EXTRAORDINARY ITEMS
Prior period income Rs. Nil (PY Rs. Nil). Exceptional
Items(-) Rs.7331.19 (PY Rs.5337.39) (in 000’s)).
Exceptional Items represent amount of Rs. 7331.19(in
000’s) being book loss incurred on transfer of E-Locks
back to OEM upon expiry of lease contract with IOCL.
(J) REVENUE RECOGNITION
(i) Revenue on sale of goods on acceptance by the
transferee of receipt of goods and as per terms and
conditions of sale.
(ii) Service income is recognized on redressal of
customer complaint and acceptance of service
charges.
(iii) Revenue from Annual Maintenance contract are rec¬
ognized pro-rata over the period of contract and to
the extent to which it is applicable for the year un¬
der consideration.
(iv) Solar Division is based on acceptance by end user
and subsequent dispatch from the manufacturing
locations.
[K] TAXATION
Tax expense (tax saving) is the aggregate of the current
year tax and deferred tax charged (Debited) to the
statement of Profit and Loss for the year.
Current Income Tax: is measured at the amount
expected to be paid to the Income Tax authorities in
accordance with the Income Tax Act, 1961. Provision
for Income Tax for the period comes to Rs. 16,483.97
(in 000’s) (PY Rs. 13,216.71(in 000’s).
Deferred Tax: The Company provides for deferred tax
liabilities on the basis of the tax effect of the timing
differences resulting from the recognition of items in
the financial statement and in estimating its current
income tax provision. Deferred tax assets arising from
timing differences are recognized to the extent there
is reasonable certainty that the assets can be realized
in future. An amount of Rs. 2114.02 (in 000’s) has been
credited to the statement of Profit and Loss on account
of deferred tax (PY Rs 1011.13 (in 000’s) credited).
(L) EMPLOYEE RETIREMENT AND OTHER BENEFITS
(i) Retirement Benefit
In the form of Provident Fund is a defined
contribution scheme and the contributions are
charged to the statement of Profit and Loss of the
year when the contributions to the fund maintained
by the Central Government is due. There is no other
obligation other than the contribution payable to
the trust.
(ii) Gratuity
Liability for Gratuity in respect of employees of
the Company has been covered under the Group
Gratuity cum Assurance Scheme by the Life
Insurance Corporation of India and the Contribution
is recognized in the Statement of Profit and Loss.
The Company has made provision for gratuity for
a total amount of Rs. 13003.37 (in 000’s) (current
year provision Rs.20.14 in 000’s) as per actuarial
valuation made by LIC of India. An amount of Rs.
7534.85 (in 000’s) has been paid by the Company
to LIC of India Group Gratuity Fund (current year
contribution 20.14 (in 000’s)). Value of the Gratuity
Fund as on 31st March 2025 is Rs.13003.37 (000’s)
which includes interest credited to fund by LIC year
on year.
(iii) Leave Encashment Benefit
The Company has a leave encashment policy
whereby leave not availed of can be carried
forward/en-cashed for a period not exceeding sixty
days. The un-availed leave can either be utilized
by the employee or en-cashed within a period of 3
years from the date on which it has fallen due. The
liability on account of such un-availed/un-en-cashed
leave salary as on 31st March 2025 is Rs 3249.81 (in
000’s) (PY Rs 3473.03 (in 000’s)) For which provision
has been made in the accounts.
(iv) Provident Fund
Retirement benefit in the form of provident fund is
a defined contribution scheme. The Contributions
to the provident fund are charged to the Statement
of Profit and Loss for the year when the contribu¬
tions are due in accordance with the fund rules. The
Company has no obligation other that the contribu¬
tion payable to the provident fund.
(v) Other Employee Benefit Schemes
The Company also contributes to the Employees
State Insurance Corporation on behalf of its em¬
ployees.
The Company does not have any other employee re¬
tirement benefit schemes other than those listed
above.
(M) SEGMENT ACCOUNTING POLICIES
The Company had been so far operating mainly in one
single segment viz. Supply and integration of Electronic
Security Systems. In 2017, the Company diversified
into solar business. Though not strictly necessary, the
Company has, for as a measure of providing greater
understanding, divided this segment into two viz. the
“Electronic Article Surveillance Systems” (EAS) used
for providing security to the retail segment and the
“Commercial Industrial” (C/I) for providing security
solutions for industrial use. Segment accounting policies
are in line with the accounting policies of the Company.
Hence the Company is reporting business financials
under the three segments of EAS, CI and Solar.
The following specific accounting policies have been
followed for segment reporting -
(i) Segment revenue includes sales, service and other
income directly attributable to the segment. In¬
come which cannot be allocated to segments is in¬
cluded in “Un-allocated Corporate Income”.
(ii) Expenses that are directly allocable to segments
are considered for determining the segment result.
The expenses which relate to the company as a
whole and not allocable to segments are included
under “Un-allocable Expenditure”.
(iii) Segment assets and liabilities are those which are
directly identifiable with the respective segments.
Un-allocable corporate assets and liabilities are
those which relate to the company as a whole and
not allocable to any segment.
(N) IMPAIRMENT OF ASSETS
The Company has reviewed the carrying amounts
of assets at each Balance Sheet date to ascertain
impairment based on internal and external factors. An
impairment loss is recognized wherever the carrying
amount of an asset exceeds its recoverable amount. An
asset’s recoverable amount is the higher of an asset’s
net selling price and its value in use.
In the opinion of the Management, on the basis of
an assessment of the net selling price, there is no
impairment in the value of fixed assets of the Company.
(O) RELATED PARTY TRANSACTIONS
Disclosures are made as per the requirements of the Indian
Accounting Standard 24 ‘Related Party Disclosures’.
During the year, the Company has entered into certain
transactions with related parties. Those transactions
along with the related balances as at March 31st,
2025 and for the year then ended are presented in the
following table:
(P) UNCLAIMED DIVIDEND
An amount of Rs.1294.74/- (in Rs 000’s) is lying in the Unpaid
Dividend Account with State Bank of India on 31st March 2025
towards the dividend declared and paid but not claimed for the
financial years as detailed below. All dividends declared but
which remained unpaid upto and including financial year 2016-17
has been transferred to the account of Investor Education and
Protection Fund (IEPF).
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