II. Material Accounting Policies:
1.1 Basis of Preparation and Presentation
a) The Balance Sheet of the Company as at 31 March 2026 and the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash flows for the year ended 31 March
2026 and summary of significant accounting policies and other financial information (together referred as ‘ Financial
Statements') have been prepared in accordance with Indian Accounting Standards (‘Ind AS') notified under section 133 of
the companies (Indian Accounting Standards) Rules, 2015 as amended, and other accounting principles generally accepted
in India.
b) The financial statements of the Company have been prepared in accordance with the Indian Generally Accepted
Accounting Principles (GAAP) on the accrual basis of accounting and historical cost convention with the exception of certain
material items that have been measured at fair value as required by the relevant Ind AS and explained in the ensuing
policies below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
c) 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 the Schedule III to the Companies Act, 2013. Based on the nature of products/activities of the
Company and the normal time between acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of classification of its assets and
liabilities as current and non current .
d) The financial statements are presented in Indian Rupees (‘INR'). All amounts disclosed in the financial statements and
notes have been rounded-off to two decimal places to the nearest thousands as per the requirement of Schedule III to the
Companies Act, 2013, unless otherwise indicated.
e) The company has Net Assets of INR 4635.47 Lakhs and also reported Profit in the current year amounting to INR 162.01
lakhs. The company has received borrowings of INR 1139.05 Lakhs in the current year and the management has projected
the company to be profitable in coming years after utilising the borrowed fund and generating positive cash flows. Based on
the management assessment, these financial statements are prepared on going concern basis.
1.2 Use of estimates and judgements
The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income,
expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported
amount of revenues and expenses for the years presented. Actual results may differ from the estimates. Estimates and
underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and future periods affected.
1.3 Fair value measurements and valuation processes
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date under current market conditions. For financial reporting purposes, fair value
measurements are categorised into Level 1,2 or 3 based on the degree to which the inputs to the fair value measurements
are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as
follows:
a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1
for the asset or liability.
c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related
1.4 Property, Plant and Equipment (P PE)
Property, Plant and Equipment are stated at cost of acquisition, construction and subsequent improvements thereto less
accumulated depreciation and impairment losses, if any. For this purpose cost include deemed cost on the date of transition
and adjustment for exchange difference wherever applicable and comprises purchase price of assets or its construction cost
including duties and taxes, inward freight and other expenses incidental to acquisition or installation and any cost directly
attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner
intended for its use. For major projects and capital installations, interest and other costs incurred on / related to borrowings
to finance such projects or fixed assets during construction period and related pre-operative expenses are capitalized.
1.5 Investments and Other financial assets
Classification
The Company classifies its financial assets in the following categories:
Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
Those measured at amortized cost. The classification depends on the entity's business model for managing the financial
assets and the contractual terms of the cash flow.
Initial recognition and measurement
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. All
Financial assets other than those measured subsequently at fair value through Profit and Loss (FVTPL), are recognized
initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through Profit and Loss are expensed in the Statement of Profit and Loss.
Subsequent measurement
After initial recognition, financial assets are measured at: fair value (either through other comprehensive income or through
Profit and Loss), or amortized cost.
Debt instruments
Debt instruments are subsequently measured at amortized cost, fair value through other comprehensive income ('FVOCI') or
fair value through Profit and Loss ('FVTPL') till de-recognition on the basis of (i) the entity's business model for managing the
financial assets and (ii) the contractual cash flow characteristics of the financial asset.
Amortised cost:
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at
amortised cost is recognised in the Statement of Profit and Loss when the asset is derecognised or impaired. Interest
income from these financial assets is included in other income using the effective interest rate method.
Fair Value Through Profit and Loss (FVTPL):
Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt
investment that is subsequently measured at FVTPL is recognised in Statement of Profit and Loss in the period in which it
arises. Interest income from these financial assets is recognised in the Statement of Profit and Loss.
Equity instruments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are
classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVOCI or
FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.If the Company decides to classify an equity instrument as at FVOCI, then all fair value
changes on the instrument, excluding dividends, are recognized in Other Comprehensive Income (OCI). There is no
recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of such investments.Equity instruments
included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and recognition
of impairment loss on the financial assets measured at amortized cost and debt instruments measured at FVOCI.
Loss allowances on trade receivables are measured following the ‘simplified approach' at an amount equal to the lifetime
ECL at each reporting date. In respect of other financial assets, the loss allowance is measured at 12 month ECL only if
there is no significant deterioration in the credit risk since initial recognition of the asset or asset is determined to have a low
credit risk at the reporting date.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset ) is primarily derecognized (i.e. removed from the
Company's balance sheet) when:
The contractual rights to receive cash flows from the financial asset have expired, or the Company has transferred its rights
to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material
delay to a third party under a ‘pass-through' arrangement; and either
(a) the Company has transferred substantially all the risks and rewards of the asset, or
(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.
On de-recognition, any gains or losses on all equity instruments (measured at FVTPL) and debt instruments (other than debt
instruments measured at FVOCI) are recognized in the Statement of Profit and Loss. Gains and losses in respect of debt
instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de-recognition.
1.6 Financial liabilities and equity instruments
Classification of debt or equity
Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its
liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
Financial liabilities are initially recognised at fair value, net of transaction cost incurred. All financial liabilities are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction cost) 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
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
De-recognition of financial liabilities
The Company de-recognises financial liabilities when, and only when, the Company's obligations specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss as other gain/(loss).
1.7 Revenue recognition
Revenue from sale of goods is recognized when control of the products being sold is transferred to customer and when there
are no longer any unfulfilled obligations
1.8 Employee benefits
All short term employee benefits are accounted on undiscounted basis during the accounting period based on services
rendered by employees. Long term employee benefits, if any, which are not expected to occur within twelve months after
the end of the period in which the employee renders the related service are recognised as a liability at the present value of
the obligation as at the Balance Sheet date.
1.9 Taxes on income
Tax expenses comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income Tax Act, 1961. Deferred taxes reflects the impact of current year timing
diffrences between taxable income and accouting income for the year and reversal of timimg diffrences of earlier year.
1.10 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 equity shares outstanding during the period. Diluted Earnings per Share is calculated by
adjustment of all the effects of dilutive potential equity shares from the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period.
1.11 Inventories
Inventories are valued at lower of cost or net realisable value. Costs for the purpose of Raw materials, stores and spares
and consumables comprise of the respective purchase costs including non-reimbursable duties and taxes. Cost for carriage,
clearing and forwarding are included in inventory proportionately.
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