Significant Accounting Policies
This note provides a list of the significant accounting policies adopted in the preparation of these
financial statements. These policies have been consistently applied to all the years presented, unless
otherwise stated.
(A) Basis Of Preparation of Financial Statement
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013 (the "Act") [Companies (Indian Accounting
Standards) Rules, 2015] and other relevant provisions of the Act.
The financial statements of the Company for the year ended 31st March, 2025 were approved for
issue in accordance with the resolution of the Board of Directors on 30th May, 2025
These financial statements are presented in Indian Rupees (INR), which is also the functional
currency. All the amounts have been rounded off to the nearest lakhs, unless otherwise indicated.
The financial statements have been prepared on accrual and going concern basis.
The Company follows the mercantile system of accounting and recognizes income and expenditure
on an accrual basis. The financial statements are prepared under the historical cost convention,
except in case of significant uncertainties and except for the following:
Investments are measured at fair value.
(B) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed
as revenue are net of returns, trade discount taxes and amounts collected on behalf of third parties.
The Company recognizes revenue when the amount of revenue can be reliably measured and it is
probable that future economic benefits will flow to the company.
(I) Sales
Domestic sales are recognised when significant risks and rewards are transferred to the buyer as
per the contractual terms or on dispatch where such dispatch coincides with transfer of
significant risks and rewards to the buyer.
(C) Property, plant and equipment
On transition to Ind AS, The Company has elected to continue with the carrying value of all of
its property, plant and equipment recognised as at 1 April, 2016 measured as per the previous
GAAP and used those carrying value as the deemed cost of the property, plant and equipment.
(a) Freehold land is carried at historical cost including expenditure that is directly attributable to
the acquisition of the land.
(i) All items of property, plant and equipment are stated at historical cost less accumulated
depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items.
N. Depreciation
(a) Fixed assets are stated at cost less accumulated depreciation.
(b) The 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.
(D) Inventories Valuation
(i) Raw materials, components, stores & spares, packing material, semi-finished goods & finished
goods are valued at lower of cost and net realizable value.
(ii) Cost of Raw Materials, components, stores & spares and packing material is arrived at Weighted
Average Cost and Cost of semi-finished good and finished good is arrived at estimated cost.
(iii) Scrap is valued at net realisable value.
(E) Cash And Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include
cash on hand, other short-term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
(F) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment.
(G) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end
of financial year which are unpaid. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
(H) Borrowing Cost
(i) Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized
as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
(ii) Borrowings are classified as current financial liabilities unless the group has an unconditional
right to defer settlement of the liability for at least 12 months after the reporting period. Where there
is a breach of a material provision of a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes payable on demand on the reporting date,
the entity does not classify the liability as current, if the lender agreed, after the reporting period and
before the approval of the financial statements for issue, not to demand payment as a consequence of
the breach.
(I) Investments
All Unquoted equity investments are measured at carrying value.
(J) Employee Benefit
(i) Short term employee benefits are recognised as an expense at the undiscounted amounts in the
Statement of Profit & Loss for the year in which the related service is rendered.
(L) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equities shares outstanding during the
period. Earnings considered in ascertaining the Company's earnings per share is the net profit for
the period. The weighted average number equity shares outstanding during the period and all
periods presented is adjusted for events, such as bonus shares, other than the conversion of
potential equity shares, that have changed the number of equity shares outstanding, without a
corresponding change in resources.
(M) Taxation
(i) The income tax expense or credit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for the jurisdiction adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences, to unused tax losses and
unabsorbed depreciation.
Current and deferred tax is recognized in the Statement of Profit and Loss except to the extent it
relates to items recognized directly in equity or other comprehensive income, in which case it is
recognized in equity or other comprehensive income.
(ii) Provision for Income tax is made on the basis of the estimated taxable income for the current
accounting period in accordance with the Income- tax Act, 1961 and Revised Income
Computation and Disclosure Standards (ICDS) of the Income-tax Act, 1961.
O. Deferred tax is provided using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled. The
carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to reflect
changes in probability that sufficient taxable profits will be available to allow all or part of the
asset to be recovered. Deferred tax assets are recognised for all deductible temporary differences
and unused tax losses only if it is probable that future taxable amounts will be available to utilise
those temporary differences and losses. Deferred tax assets and liabilities are offset when there is
a legally enforceable right to offset current tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority.
P. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the no tax has been
recognised in the books of Accounts.
(O) Impairment of Assets
The Company assesses at each balance sheet date whether there is any indication that an asset
may be impaired. If any such indication exists, the management estimates the recoverable
amount of the asset. If such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the assets belong is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss. If at the balance sheet date there is an indication
that if a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed, and the asset is reflected at the recoverable amount subject to a maximum of
depreciated historical cost.
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