♦♦♦ Corporate Information
Ashram Online.Com Limited (CIN: L74999TN1991PLC020764), a public limited company
incorporated under the provisions of the Companies Act, 1956, has its Registered Office at Old
No.12, New No.29, Mookathal Street, Purasawalkkam, Chennai — 600 007. The Company is
primarily engaged in the business of trading and marketing Raksha Threads (sacred threads) and other
allied religious and devotional products through online and offline channels. The equity shares of the
Company are listed on the Bombay Stock Exchange Limited (BSE).
♦♦♦ Basis of Preparation of Financial Statements:
1. The financial statements have been prepared in accordance with the Indian Accounting
Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other
relevant provisions of the Companies Act, 2013. The financial statements have been prepared on
the historical cost basis except for certain financial instruments, which are measured at fair value in
accordance with the applicable Indian Accounting Standards.
2. Use of Estimates:
The preparation of the financial statements in conformity with Indian Accounting Standards (Ind
AS) requires management to make judgements, estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent liabilities as at the reporting date, and
the reported amounts of income and expenses during the reporting period. Actual results may differ
from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized prospectively in the period in which the estimates
are revised and in any future periods affected.
3. Going Concern
The financial statements have been prepared on a going-concern basis, as the Management believes
that the Company has adequate resources to continue its operations for the foreseeable future and
that no material uncertainty exists that may cast significant doubt on the Company's ability to
continue as a going concern.
4. Operating Cycle
The Company has considered its normal operating cycle as twelve months for the purpose of
classification of assets and liabilities into current and non-current in accordance with the
requirements of Schedule III to the Companies Act, 2013.
♦♦♦ Revenue Recognition
1. Sales of goods:
Revenue from the sale of goods is recognized upon delivery of goods to the customer in accordance
with the terms of the respective sales arrangements.
2. Interest income:
Interest in income on financial assets measured at amortized cost is recognized using the Effective
Interest Rate (EIR) method over the expected life of the financial asset.
3. Other Income:
Other income is recognized on an accrual basis.
♦♦♦ Valuation of Inventory
Inventories are valued at a lower cost and net realizable value. The cost of inventories is determined
using the weighted average cost method. Cost comprises the cost of purchase and other costs
incurred in bringing the inventories to their present location and condition.
♦♦♦ Property, Plant and Equipment, Depreciation & Impairment
1. Property, plant and equipment are stated at cost (net of tax/duty credits availed), excluding
the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment
losses, if any. Cost includes professional fees, charges and other expenses directly attributable
to the acquisition of property, plant and equipment. Changes in the estimated useful life of an
asset are accounted for prospectively by revising the depreciation period or method, as
appropriate, and are treated as changes in accounting estimates.
2. Capital Work-in-Progress comprises expenditure incurred on Property, Plant and Equipment
that are not yet ready for their intended use. Such expenditure is transferred to the appropriate
category of Property, Plant and Equipment upon completion and when the asset is ready for
its intended use.
3. Subsequent expenditure relating to Property, Plant and Equipment is capitalized only when it
is probable that future economic benefits associated with the expenditure will flow to the
Company and the cost of the item can be measured reliably. All other repairs and maintenance
expenses are recognized in the Statement of Profit and Loss as incurred.
4. Depreciation on Property, Plant and Equipment is provided on the Written Down Value
(WDV) method over the useful lives prescribed under Schedule II to the Companies Act,
2013.
5. The residual values, useful lives and the method of depreciation are reviewed at the end of
each reporting period and adjusted prospectively, wherever considered necessary.
6. An item of Property, Plant and Equipment is derecognized upon disposal or when no future
economic benefits are expected from its continued use or disposal. Any gain or loss arising on
derecognition is recognized in the Statement of Profit and Loss in the period in which the asset
is derecognized
7. The Company assesses at each reporting date whether there is any indication that an asset may
be impaired. If any such indication exists, the recoverable amount of the asset is estimated and
impairment losses, if any, are recognized in accordance with Ind AS 36 — Impairment of Assets.
Impairment losses are reversed in subsequent periods if there is an indication that the
impairment no longer exists or has decreased, to the extent permitted under Ind AS 36.
♦♦♦ Financial Instruments — Initial Recognition
Date of recognition
Financial assets and financial liabilities are recognized when the Company becomes a party to the
contractual provisions of the financial instrument. Financial assets and financial 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 those classified at fair value through profit or loss,
are added to or deducted from the fair value on initial recognition, as appropriate.
Initial measurement of financial instruments
The classification of financial instruments at initial recognition depends on their contractual terms
and the Company's business model for managing the financial instruments. Financial assets and
financial liabilities are initially measured at their fair value, except for financial assets and financial
liabilities measured at Fair Value Through Profit or Loss (FVTPL).
Transaction costs that are directly attributable to the acquisition or issue of financial assets or
financial liabilities are recognised immediately in the Statement of Profit and Loss for instruments
classified as FVTPL. For all other financial assets and financial liabilities, such transaction costs are
added to or deducted from the fair value on initial recognition, as appropriate.
Measurement categories of financial assets and liabilities
The Company classifies its financial assets and financial liabilities based on the business model for
managing the financial assets and the contractual cash flow characteristics of the financial assets.
Financial assets and financial liabilities are subsequently measured at one of the following categories:
♦♦♦ Amortised Cost
♦♦♦ Fair Value Through Profit or Loss (FVTPL)
♦♦♦ Fair Value Through Other Comprehensive Income (FVTOCI)
Equity instruments
Equity instruments are initially measured at fair value. The Company subsequently measures all
equity investments at Fair Value Through Profit or Loss (FVTPL), unless the Company has
irrevocably elected to classify certain equity investments as Fair Value Through Other
Comprehensive Income (FVTOCI), provided such investments meet the definition of equity under
Ind AS 32 — Financial Instruments: Presentation and are not held for trading. Such election is made on
an instrument-by-instrument basis. Gains and losses on equity instruments designated at FVTOCI
are not reclassified to the Statement of Profit and Loss. Dividends are recognized in the Statement
of Profit and Loss when the Company's right to receive payment is established, unless the dividend
clearly represents a recovery of part of the cost of the investment. Equity instruments designated at
FVTOCI are not subject to impairment assessment.
Reclassification of financial assets and liabilities
The Company reclassifies financial assets only when there is a change in its business model for
managing those financial assets. Such reclassifications are expected to be infrequent. Financial
liabilities are not reclassified after initial recognition.
♦♦♦ Retirement Benefits
Contributions towards Provident Fund, Gratuity and Leave Encashment benefits, wherever
applicable, are accounted for on the basis of actual liability incurred. During the year under review,
the Company's employee strength was below the statutory thresholds prescribed under the
Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Employees' State Insurance
Act, 1948, and the Payment of Gratuity Act, 1972. Accordingly, the provisions relating to Provident
Fund, ESI, Gratuity and Leave Encashment were not applicable to the Company, and no provision
has been recognised in the financial statements.
♦♦♦ Foreign Currency Transaction
The Company's financial statements are presented in Indian Rupees (INR), which is also the
Company's functional currency.
Transactions denominated in foreign currencies are initially recorded at the functional currency spot
exchange rate prevailing at the date when the transaction first qualifies for recognition.
Foreign currency denominated monetary assets and liabilities are translated into the functional
currency using the spot exchange rates prevailing at the reporting date. Exchange differences arising
on settlement or translation of monetary items are recognised in the Statement of Profit and Loss.
During the year under review, the Company had no reportable foreign currency transactions.
♦♦♦ Tax On Income
Current Tax
Current tax comprises the amount of tax payable in respect of taxable income or loss for the year,
determined in accordance with the provisions of the Income-tax Act, 1961, and any adjustment to
tax payable or receivable in respect of previous years.
Current tax assets and liabilities for the current and prior years are measured at the amount expected
to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted as at the reporting date in the countries
where the Company operates and generates taxable income.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the
recognised amounts and when the Company intends either to realise the assets and settle the liabilities
on a net basis or simultaneously.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or
loss (either in Other Comprehensive Income or in equity). Current tax items are recognised in
correlation with the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions, where
appropriate.
Deferred Tax
Deferred tax is provided on temporary differences at the reporting date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses
can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part
of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each
reporting date and are recognised to the extent that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised
outside profit or loss is recognised outside profit or loss (either in Other Comprehensive Income or
in equity). Deferred tax items are recognised in correlation with the underlying transaction either in
OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities, and the deferred taxes relate to the same taxable
entity and the same taxation authority. The Company intends to settle such balances on a net basis.
Income-tax Status
The Company computes income tax in accordance with the provisions of the Income-tax Act, 1961.
Management has reviewed the applicable provisions relating to the tax regime adopted by the
Company and the tax expense has been recognised accordingly.
♦♦♦ Dividend
The Board of Directors has not recommended any dividend for the financial year ended 31 March
2026.
♦♦♦ Earnings Per Share (EPS)
Basic earnings per share (EPS) is calculated by dividing the profit or loss attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during
the reporting period. The earnings considered in ascertaining the basic EPS comprise the net profit
or loss for the period attributable to equity shareholders after deducting preference dividends, if
any, and related tax effects.
The weighted average number of equity shares outstanding during the period and for all
comparative periods presented is adjusted for events such as bonus issues, share splits and other
changes in the number of equity shares, other than the conversion of potential equity shares, without
a corresponding change in resources.
Diluted earnings per share is calculated by adjusting the profit or loss attributable to equity
shareholders and the weighted average number of equity shares outstanding during the period for
the effects of all dilutive potential equity shares.
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