1.01 BACKGROUND OF THE COMPANY
Anlon Technology Solutions Limited is a company incorporated on 28th July, 2015 as "Anlon Technology Solutions Private
Limited".
The corporate identification number of the company is L74900MH2015PLC295795.
The company has been converted from Private Company to Public Company on 13th June, 2022.
The Company is engaged in providing engineering services, training, consultancy, advisory, and research & development
services in the fields of engineering systems, automotive equipment, and other related areas. As part of its engineering
services, the Company also sells spare parts necessary for executing these services and facilitates connections between clients
and machinery manufacturers. The Company handles the installation and servicing of such machinery, which forms an
ancillary part of its overall engineering service offerings.
During the financial year 2024-25 and 2025-26, the Company expanded into the Manufacturing and Assembling segment by
initiating the design, engineering, and testing of fire-fighting equipment, runway rubber removal machine,rapid intervention
vehicle, sweeping machines, trackjet machine and turntable ladder, establishing a dedicated division for their manufacturing
and assembly.
1.02 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies
Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements
have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation
of the financial statements are consistent with those followed in the previous year.
Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted
accounting principles in India.
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and
other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its
operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.
1.03 USE OF ESTIMATES
The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
1.04 PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS
(i) Property, Plant & Equipment
All Property, Plant & Equipment are recorded at cost including taxes(Excluding recoverable in nature), duties, freight and
other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.
(ii) Intangible Assets
Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.
1.05 DEPRECIATION / AMORTISATION
Tangible Assets:
Depreciable amount of assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in
Schedule II to the Companies Act, 2013.
Intangible assets
Software (excluding SAP software) is amortised over a period of three years on straight line method. SAP software is
amortised over a period of six years on straight line method.
1.06 INVENTORIES
Inventories are valued at the lower of cost and net realizable value in accordance with Accounting Standard (AS) 2 -
Valuation of Inventories.
The cost of Raw materials comprises the purchase price (net of recoverable taxes), duties, freight, and other expenses
incurred in bringing the materials to their present location and condition. Cost is determined using the First-In, First-Out
(FIFO) method.
Work-in-progress and Finished goods are valued at cost, which includes the cost of raw materials, direct labor, and a
proportionate share of production overheads that are systematically allocated based on normal capacity. The cost also
includes other costs incurred in bringing the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion
and the estimated cost necessary to make the sale.
Traded Goods (Spares and Components).Inventories are measured at the lower of cost and net realisable value. The cost of
inventories is based on the first-in, first-out principle
1.07 IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the
higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the
amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs
of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate
of the recoverable value.
1.08 BORROWING COSTS
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All
other borrowing costs are charged to revenue.
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