2.1 BASIS OF PREPARATION:
The financial Statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified pursuant to section 133 of the Companies Act, 2013
('the Act'), read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015
and Companies (Indian Accounting Standards) Amendment Rules, 2016.
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 17th May, 2025.
The statements have been prepared under the historical cost convention.
2.2 CURRENT AND NON CURRENT CLASSIFICATION :
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 Act. Based on the
nature of the products and the time between acquisition of assets for processing and their
realization in cash and cash equivalents, the Company has ascertained its normal operating
cycle as twelve months for the purpose of current or non-current classification of the assets
and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.
2.3 SIGNIFICANT ACCOUNTING JUGEMENTS, ESTIMATES AND ASSUMPTIONS :
The preparation of the financial statements in conformity with Ind AS requires management
to make estimates and assumptions that affect the reported amounts of revenue, expenses,
assets and liabilities. Actual results could differ from those estimates.
Estimates and judgments are reviewed on an ongoing basis. They are based on historical
experience and other factors, including expectations of future events that may have a
financial impact on the Company and that are believed to be reasonable under the
circumstance. Revisions to accounting estimates are recognized in the period in which the
estimates are revised and future periods are affected.
The key assumptions concerning the future and other key sources of estimating uncertainty
at the reporting date, that have a significant risk of causing a material adjustments to the
carrying amounts of assets and liabilities within the next financial year, are described below
a. Impairment of Property, Plant and Equipment (PPE)
The evaluation of applicability of indicators of impairment of assets requires assessment of
external factors (significant decline in asset’s value, significant changes in the technological,
market, economic or legal environment, market interest rates etc.) and internal factors
(obsolescence or physical damage of an asset, poor economic performance the asset etc.)
which could result in significant change in recoverable amount of the PPE.
b. Determination of the estimated useful lives
Useful lives of all PPE are based on the estimation done by the Management which is in line
with the useful lives as prescribed in part 'C' of Schedule II to the Act.
c. Current and deferred taxes
Significant management judgment is required to determine the amount of current and
deferred taxes that can be recognized, based upon the likely timing and the level of future
taxable profit together with future tax planning strategies.
Deferred tax assets and liabilities not accounted in the financial statement due to the virtual
uncertainty of profit during the year.
2.4 PROPERTY, PLANT AND EQUPMET:
a. All items of property, plant and equipments are measured at cost less accumulated
depreciation and any accumulated impairment losses if any.
b. DEPRECIATION / AMORTIZATION:
Depreciation on Property, Plant and Equipment is provided on straight line method.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.
c. IMPAIRMENT:
The carrying amount of PPE are reviewed at each balance sheet date to determine if there is
any indication of impairment based on internal/external factors. Assessment of indication
of impairment of an asset is made at the year end. An impairment loss is recognized
whenever the carrying amount of as asset exceeds its recoverable amount. The recoverable
amount is the greater of the asset's net selling price and value in use. In assessing value in
use, the Company measures its 'value in use' on basis of estimated discounted cash flow of
projections based on current prices.
After the impairment, depreciation is provided on the revised carrying amount of the assets
over its remaining useful life.
2.5 INVENTORIES:
There was no stock of Inventories during the year.
2.6 FOREIGN CURRENCEY TRANSACTIONS: NA
Initial Recognition: Not applicable
Foreign currency transactions are normally translated in the functional currency, by
applying to the foreign currency amount the exchange rate between the functional currency
and the foreign currency, prevailing at the date of transaction.
Conversion: Not applicable
Foreign currency monetary items as at balance sheet date are translated using the closing
exchange rate on that date.
Exchange Difference: Not applicable
Realised gains and losses on Foreign exchange transactions pertaining to current assets and
current liabilities are recognized in the Profitand Loss Account.
2.7 CASH AND CASH EQUIVALENTS:
Cash and cash equivalent include cheques in hand, cash at bank and deposits with banks
having original maturity of not more than three months. Bank deposits with original
maturity period of more than three months but less than twelve months are classified as
other bank balances.
2.8 FINANCIAL INSTRUMENTS:
A financial instrument is any contract that gives rise to financial assets of one entity and
financial liabilities or equity instrument of another entity.
Financial Assets
Initial recognition and measurement
All financial assets are recognized initially at cost.
Subsequent measurement
All recognized financial assets are subsequently measured in their entity either amortised
cost or fair value depending on the classification of the financial assets.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at a fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables and borrowings.
Subsequent measurement
Financial liabilities at fair value through profit and loss.
Gains or losses on liabilities held for trading are recognized in the statement of profitand
loss account.
Derecognition of Financial Assets and Liabilities
The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire or when the Company transfers the contractual rights to
receive the cash flows of the financial asset in which substantially all the risks and rewards
of ownership of the financial asset and does not retain control of the financial asset.
2.9 REVENUE RECOGNITION:
Revenue is recognized to the extent it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. Revenue is measured at the fair value
of the consideration received or receivable and represents receivable for goods and services
provided in the normal course of business, net of discount and taxes:
i. Revenue from sales of goods is recognized on transfer of significant risk and rewards of
ownership of products to the customers.
ii. 1 nterest income is accounted for on a time proportion basis taking into account the amount
outstanding and the rate applicable.
2.10 EMPLOYEMENT DENEFITS:
i] Gratuity Liability a defined benefit scheme: Employees are not eligible for gratuity
benefits. Hence no provision of gratuity is made in the accounts.
ii] Provident Fund: Not applicable.
Provident Fund contributions are made to Government Provident Fund Authority are
charged to revenue.
2.11 INCOME AND DEFERRED TAXES:
TAXATION:
I] CURRENT TAX:
Provision for Current income tax liability is made on estimated taxable income under
Income Tax Act, 1961 after considering permissible tax exemption, deductions and
disallowances.
II] DEFFERED TAX: Not applicable.
Deferred tax resulting from timing difference between book and tax profits is accounted for
under the liability method, at the current rate of tax to the extent that the timing difference
are expected to crystallize.
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