1 Significant accounting policies:
1.1 Basis of preparation of financial statements:
These Standalone Financial Statements have been
prepared in accordance with Ind AS as notified under the
Companies (Indian Accounting Standards) Rules, 2015
read with Section 133 of the Companies Act, 2013 (the
"Act”) and other relevant provisions of the act.
The Standalone Financial Statements up to and for the
year ended 31st March, 2025 were prepared in accordance
with the accounting standards notified under Companies
(Accounting Standards) Rules, 2006 (as amended)
("Previous GAAP”) and other relevant provisions of the Act.
As these are the Company's first standalone financial
statements prepared in accordance with Indian
Accounting Standards (Ind AS), Ind AS 101, First-time
adoption of Indian Accounting Standards has been
applied. An explanation of how the transition from
previous GAAP to Ind AS has affected the Company's
previously reported financial position, financial
performance and cash flows is provided in Note 43.
Historical cost convention:
The Standalone Financial Statements have been
prepared on the historical cost basis except for the
following items:
Current versus non-current classification:
All assets and liabilities have been classified as current
or non-current as per the Company's operating cycle and
other criteria set out in the Schedule III to the Companies
Act, 2013. Based on the nature of products and services
and their realisation in cash and cash equivalents,
the Company has ascertained its operating cycle as
12 months for the purpose of current non-current
classification of assets and liabilities.
1.2 Use Of Estimates:
The preparation of financial statements in conformity
with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at
the end of the reporting period. Although these estimates
are based on the management's best knowledge of
current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts
of assets or liabilities in future periods.
1.3 Fixed Assets, Intangible assets and capital work in
progress:
Fixed assets are stated at cost, after reducing
accumulated depreciation and impairment up to the
date of the Balance Sheet. Direct costs are capitalized
until the assets are ready for use and include financing
costs relating to any borrowing attributable to acquisition
of construction of those fixed assets which necessarily
take a substantial period of time to get ready for their
intended use. Capital work in progress includes the
cost of fixed assets that are not yet ready for their
intended use. Intangible assets, if any, are recorded at
the consideration paid for acquisition of such assets and
are carried at cost less accumulated amortization and
impairment.
Transition to Ind AS:
Pursuant to paragraph D7AA of Ind AS 101 - First-time
Adoption of Indian Accounting Standards, the Company
has elected to continue with the carrying values of all
its property, plant and equipment, as recognised in its
previous GAAP financial statements, as the deemed cost
at the date of transition to Ind AS.
Accordingly:
• The carrying amount of PPE under previous GAAP
as at the transition date 31.03.2025 has been
considered as the deemed cost under Ind AS.
• No adjustments have been made to the value of
PPE on account of Ind AS transition.
• The Company has not applied fair value or
revaluation as deemed cost for any of its PPE
assets.
• This policy has been applied consistently to all
items of PPE
Subsequent expenditure:
Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company.
1.4 Depreciation:
Depreciation on fixed assets is determined based on
the estimated useful life of the assets using the written
down value method as prescribed under the schedule II
to the Companies Act, 2013. Individual assets costing
less than ' 5000 or less are depreciated within a year
of acquisition. Depreciation on assets purchased/sold
during the period is proportionately charged. Leasehold
land is amortized on a straight line basis over the period
of lease. Intangible assets, if any, are amortized over their
useful life on a straight line method.
1.5 Goodwill and Other Intangible Assets:
Goodwill:
The excess of the cost of an acquisition over the
Company's share in the fair value of the acquiree's
identifiable assets, liabilities, and contingent liabilities is
recognized as goodwill. If the excess is negative, a bargain
purchase gain is recognized in other comprehensive
income and accumulated in equity as Capital reserve.
Goodwill is not amortized but it is tested for impairment
annually, or more frequently if events or change in the
circumstances indicate that it might be impaired, and is
carried at cost less accumulated impairment losses. The
excess of the cost of an acquisition over the Company's
share in the fair value of the acquiree's identifiable
assets, liabilities and contingent liabilities is recognized
as goodwill. If the excess is negative, a bargain purchase
gain is recognized in other comprehensive income and
accumulated in equity as Capital reserve. Goodwill is
not amortised but is tested for impairment annually,
or more frequently if events or circumstances indicate
that it might be impaired, and is carried at cost less
accumulated impairment losses.
Other intangible assets:
"Intangible assets acquired separately are measured
on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their
fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment
losses. Internally generated intangible asset arising
from development activity is recognised at cost on
demonstration of its technical feasibility, the intention and
ability of the Company to complete, use or sell it, only if, it
is probable that the asset would generate future economic
benefit and the expenditure attributable to the said assets
during its development can be measured reliably."
Transition to Ind AS:
Pursuant to paragraph D7AA of Ind AS 101 - First-time
Adoption of Indian Accounting Standards, the Company
has elected to continue with the carrying values of all
its property, plant and equipment, as recognised in its
previous GAAP financial statements, as the deemed cost
at the date of transition to Ind AS.
Accordingly:
• The carrying amount of PPE under previous GAAP
as at the transition date 31.03.2025 has been
considered as the deemed cost under Ind AS.
• No adjustments have been made to the value of
PPE on account of Ind AS transition.
• The Company has not applied fair value or
revaluation as deemed cost for any of its PPE
assets.
• This policy has been applied consistently to all
items of PPE
Amortisation of Intangible Assets:
Intangible assets are amortised over their useful lives on
written down value method.
Investment in Subsidiaries:
Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of
the investment is assessed and written down immediately
to its recoverable amount. On disposal of investments
in subsidiaries, the difference between net disposal
proceeds and the carrying amounts is recognized in the
Statement of Profit and Loss. The Company has acquired
susbidiary only after April 1,2024.
1.6 Employee benefits
Short Term benefits are recognized as an expense at
the undiscounted amount in the statement of Profit and
Loss of the year in which related service is rendered.
Retirement benefits in form of gratuity, leave encashment
etc. are accounted for on an accrual basis. The company
has incurred the liabilities in this respect at the end of
the year. Provisions of Employees' Provident Fund and
Miscellaneous Provisions Act and Payment of gratuity
act are applicable to the company. In compliance with AS
15 (Revised) Employee Benefits, upto current year ended
31 March 2025 company has made provision for Gratuity
at ' 122.86 Lakhs Previous year: ' 109.32 Lakhs.
1.7 Government grants
Grants and subsidies from the government are
recognized when there is reasonable assurance that (i)
the company will comply with the conditions attached
to them, and (ii) the grant/subsidy will be received.
When the grants or subsidy related to revenue, it is
recognized as income on a systematic basis in the
statement of profit and loss over the periods necessary
to match them with the related costs, which they are
intended to compensate. Where the grant relates to an
asset, it is recognized as deferred income and released
to income in equal amounts over the expected useful life
of the related asset.
Government grants of the nature of promoters'
contribution are credited to capital reserve and treated
as a part of the shareholders' fund.
1.8 Investments
Investments, which are readily realizable and intended to
be held for not more than one year from the date on which
such investments are made, are classified as current
investments. All other investments are classified as long
term investments. Current investments are carried in
the financial statements at lower of cost and fair value
determined on an individual investment basis. Long
term investments are carried at cost. However, provision
for diminution in value is made to recognize a decline
other than temporary in the value of the investments.
On disposal of an investment, the difference between its
carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
Equity investments have been measured at fair value
through Profit and Loss account (FVTPL) as per Ind AS
109, with transition adjustments accounted in retained
earnings as of transition date.
1.9 Inventories
All trading goods are valued at lower of cost and net
realizable value. Cost of inventories is determined on first
in first out basis. Scrap is valued at net realizable value
Net realizable value is the estimated selling price in the
ordinary course of business.
1.10 Revenue recognition
"Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the company and
the revenue can be reliably measured. The following
specific recognition criteria must also be met before
revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the
significant risks and rewards of ownership of the goods
have been passed to the buyer, usually on delivery of
the goods. The company collects GST on behalf of the
government and, therefore, these are not economic
benefits flowing to the company. Hence, they are
excluded from the revenue.
Income from Job work/Services
Revenue from Job work/ Services is recognized when
the contractual obligation is fulfilled and goods/services
are delivered to the contractee.
Interest
Interest income is recognized on a time proportion basis
taking into account the amount outstanding and the
applicable rate of interest. Interest income is included
under the head "Other Income” in the statement of profit
and loss.
1.11 Income Taxes
Tax expenses comprise 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. The tax rates and tax
laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing
differences between taxable income and accounting
income originating during the current year and reversal
of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws
enacted or substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable
timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent that
there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax
assets can be realized. In situations where the company
has unabsorbed depreciation or carry forward tax losses,
all deferred tax assets are recognized only if there is
virtual certainty supported by convincing evidences
that they can be realized against future taxable profits.
Deferred tax assets are reviewed at each reporting date.
Minimum Alternate Tax paid in a year is charged to the
statement of profit and loss as current tax. The company
recognizes MAT credit available as an asset only to
the extent that there is convincing evidence that the
company will pay normal income tax during the specified
period, i.e., the period for which MAT credit is allowed
to be carried forward. In the year in which the company
recognizes MAT credit as an asset in accordance with
the guidance note on accounting for credit available in
respect of minimum alternate tax under the income tax
act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit
Entitlement.” The company reviews the "MAT credit
entitlement” at each reporting date.
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