2. SIGNIFICANT ACCOUNTING POLICIES :
2.1 Basis of Preparation of Financial Statements and Presentation :
The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards
(Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the
Companies Act, 2013, (“the Act”) and other relevant provisions of the Act. .
Company’s financial statements are presented in Indian Rupees, which is also its functional currency.
The standalone financial statements have been prepared on the historical cost basis except the following items
a) Financial Assets - Current Investment in Mutual Fund - Valued at Fair Market Value.
b) Deferred Tax Liabilities - Valued at Fair Value on Balance Sheet approach.
c) Other Comprehensive Income and Exceptional Income on Unrealised Gain on Mutual Fund as Current
Investment - Valued on Fair Market Value.
d) Current Assets/Liabilities in Foreign Currencies - Valued at Fair Market Value .
e) Revenue from Operation includes Indirect Taxes collected from parties (IGST/CGST/SGST) and reflected as
Gross Revenue recognized and the payment of the same Indirect Taxes (IGST/CGST/SGST) reflected from
Statement of Profit & Loss.
Ý 2.2 Use of Estimates and Judgements :
In preparation of these Standalone Financial statements, management has made judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized prospectively.
The company has exercised due care in determining its significant accounting judgements and estimates
while preparing its financial statements including internal control over financial reporting. As per the
current assessment of the Company, there are no material impact on the carrying values of trade
receivables, inventories and other financial / non financial assets as at the reporting date. The Company
continues to closely monitor the developments in economic conditions and access their impact. However,
considering the prevailing uncertainties, the final impact may differ from current estimates made as at the
date of approval of financial statements for the year ended 31st March, 2025.
2.3 Measurement of Jb air values :
The Company has valued Financial Assets : (a) Investment in Mutual Funds, (b) Trade Receivable and
Financial Liabilities - Trade Payables at a fair value. Impact of fair value changes, if any as on the date
of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of
Profit & Loss during the period.
2.4 Cash Flow Statement and Cash and Cash Equivalents :
Cash flow statements are reported using the indirect method, where profit before extraordinary items and
tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The Cash Flows from operating, investing and financing activities of
the Company are segregated based on available information.
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisitions), highly liquid investments
that are readily convertible into known amounts of cash and which are subject to insignificant risk or
changes in value.
2.5 Property, Plant and Equipment and Depreciation :
Property, Plant and Equipment i.e. Tangible Fixed Assets are stated at cost, less allowable net recoverable
taxes like GST (IGST/CGST/SGST) Credit allowable, Import Duty Credit allowable less accumulated
depreciation and impairment losses, if any. Such costs include purchase price, overheads directly
attributable to bringing the assets to its working condition for its intended use less any recoverable tax
credit entitled. •
Depreciation on such tangible assets have been provided on the written down value method as per the
useful life prescribed in Schedule II of the Companies Act, 2013.
2.6 Impairment of assets :
The carrying amount of the Property, Plant & Equipment i.e. Fixed Assets are reviewed at each Balance
Sheet date. If any indication of impairment exists, the recoverable amount of such assets is estimated and
impairment is recognized. An impairment loss is charged to the Depreciation Schedule and Statement of
Profit and Loss in the year which the assets is identified as impaired.
2.7 Deferred Tax Assets/Liabilities and Provision for Deferred Tax :
In Earlier Previous financial year i.e. F Y 2021-22, the Company has already adopted and exercise
the Section 115BAA (Lower Tax Rate and simultaneously forgo certain tax incentives, deductions &
accumulated MAT Credit) and the same will be continuing in current year as per I. T. Act, 1961.
Deferred Tax Liabilities/Assets valued on Balance Sheet approach on availability of future taxable profit
against which tax losses and tax benefit carried forward can be used. Provision for Deferred Tax
recognized on the timing differences between the taxable income and the accounting income that originate
- in one period and are capable of the reversal in one or more subsequent period enacted as at the reporting
date.
2.8 Inventories:
Items of inventories are measured as per “Valuation of Inventories” guidelines issued by Institute of
Chartered Accountants of India and Institute of Cost Accountants of India. The details as follows
a) Stock of Raw Materials (inclusive of various components), Stock of Stores, spares & Consumables
are valued at Cost on FIFO (First in First Out) basis (excluding the amount of IGST/CGST/SGST
Credit allowable). A separate Ledger of IGST/CGST/SGST credit allowable has been maintained for
the purpose of utilization of IGST/CGST/SGST credit and the same adjusted against the payment of
Output IGST/CGST/SGST liability on account of any Sales. However the IGST/CGST/SGST
• realization from party and paid shown in a separate head in the statement of Profit & Loss as per Ind
AS format. Rebate on IGST on exported goods, if any realized or receivable has been adjusted against
such payment of IGST liability on exported goods.
b) Stock of Finished Goods are valued at lower of cost (excluding of the amount of IGST/CGST/SGST
credit allowable) or net realizable value.
c) Stock of Scrap Materials such as Brass Generated Scrap, Zinc Ash/Dross, M. S. Scrap, Aluminium
Scrap & Used Oil etc. are valued at net realizable value.
d) There is no deviation in method of valuation of stock as prescribed under section 142 A of the Income
Tax Act, 1961. Similarly there are no changes of method of accounting since previous year as per Ind
AS accounting method.
2.9 Financial Assets & Financial Liabilities :
Financial Assets & Financial Liabilities are valued at fair market value. The details as below
a) Investments in Mutual Fund are valued at fair market value as per Ind AS method of accounting. Any
differences from market value and cost treated as Unrealised Gain and their deferred tax liabilities are
provided in Statement of Profit & Loss Account as Other Comprehensive Income and/or Exceptional
Income.
b) Trade Payables and Trade receivables are valued fair Market value. Receivables and payable in
Foreign Currencies are valued at lower of the closing market rate or relatively future forward contract
rate on Balance Sheet date and any differences are recognized through Statement of Profit & Loss
Account.
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