Note no. 2: Significant accounting policies
2.1. Basis of preparation and Statement of Compliance
a. The financial statements of the Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting
Standards) Rules, 2015 notified under section 133 of the Companies Act,2013
(the Act1) and other relevant provisions of the Act. These financial statements for
the period ended 31st March 2026 are prepared in accordance with Ind AS.
b. The financial statements have been prepared on historical cost basis. The financial
statements are presented in Indian Rupee (INR) which is the functional and the
presentation currency of the Company and all values are rounded to the nearest
lakhs (I NR 00,000), except when otherwise indicated.
c. Preparation of the financial statements in conformity with Ind AS 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.
d. 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 the Schedule III to
the Companies Act, 2013. The Company's operating cycle is considered as twelve
months for the purpose of current / non-current classification of assets and
liabilities.
e. The Company revises its accounting policies if the change is required due to a
change in Ind AS or if the change will provide more relevant and reliable
information to the users of the financial statements. Changes in accounting
policies are applied retrospectively.
f. A change in an accounting estimate that results in changes in the carrying
amounts of recognised assets or liabilities or to profit or loss is applied
prospectively in the period(s) of change. Discovery of errors result in revisions
retrospectively by restating the comparative amounts of assets, liabilities and
equity of the earliest prior period in which the error is discovered. The opening
balances of the earliest period presented are also restated.
2.2. Summary of significant accounting policies:
A. Property, Plant & Equipment:
Property, Plant and Equipment are stated at cost, net of accumulated
depreciation and accumulated impairment losses if any. Cost includes
expenditure on acquisition of asset, present value of expected cost for the
decommissioning of an asset, cost of replacing part of Plant and Equipment and
borrowing costs.
Depreciation is calculated on a straight line basis over estimated useful lives as
prescribed in schedule II of the Companies Act 2013.
Any gain or loss arising out of derecognizing of an asset is included in statement
of Profit and Loss of the relevant period.
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