Significant accounting policies
15.1 Basis of accounting and preparation of financial statements
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company
is required to prepare its Financial Statements as per the Indian Accounting Standards (‘Ind
AS’) prescribed under section 133 of Companies Act, 2013 read with rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 as amended by the Companies (Accounting
Standards) Amendment Rules, 2016 with effect from 1st April, 2017. Accordingly, the Company
has prepared these Financial Statements which comprise the Balance Sheet as at 31st March,
2025, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of
Changes in Equity for the year ended 31st March, 2025 and a summary of the significant
accounting policies and other explanatory information together hereinafter referred to as
“Financial Statements”. The figures for the previous year ended 31st March, 2024 and opening
balance sheet as on 1st April 2024 have also been reinstated by the management as per the
requirements of Ind AS.
(b) The company is not carrying on any commercial operations and incurred loss continuously
and 100% of the share capital is eroded and the financial statements continue to be are
prepared on a going concern basis on the assumption that the company will commence its
operations in near future. The appropriateness of assumption of going concern is dependent
upon the company’s ability to generate enough cash flow in future to meet its obligations.
15.2 Use of estimates
The preparation of the financial statements in conformity with Indian Accounting Standards
requires the Management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the reporting
period. Although such estimates are made on a reasonable and prudent basis taking into
account all available information, actual results could differ from those estimates.
15.3 Cash and cash equivalents
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
acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
15.4 Property Plant & Equipment
Fixed assets are stated at cost net of depreciation. The cost of an asset comprises its
purchase price and any cost directly attributable for bringing the asset to its working condition
and location for its intended use.
15.5 Depreciation and amortisation
(i) Depreciation is recognised so as to write off the cost of the asset less their residual
values over the useful life using the Schedule II of the Companies Act, 2013.
(ii) Depreciation on additions is charged proportionately from the date of acquisition/
installation.
(iii) Depreciation is provided on the pro-rata basis from the date the asset is being put to us.
15.6 Revenue recognition
Sale of Service Income is recognized based on the IND AS. Interest income is recognised
on a time proportion basis taking into account the amount outstanding and the rate
applicable. 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. The following specific
recognition criteria must also be met before revenue is recognized, Revenue from contracts
priced on a time and material basis are recognised when services are rendered and related
costs are incurred. Revenue from overseas sale of service is recognised whereas the
undisputed statutory due (GST) is not remitted to statutory authority. Hence, the exporter
of service (EPSOM properties Limited) can claim refund of IGST only after remittance to
GST Authority by filing GSTR1 (Table 6A) and GSTR 3B.
15.7 Investments
Investments will be classified into current investments and non-Current investments. Current
investments are carried at lower of cost or Market price on the relevant date. Non-Current
investments are carried individually at cost less provision for diminution, other than
temporary, in the value of such investments. Cost of investments include acquisition charges
such as brokerage, fees and duties.
15.8 Employee benefits
Short term employee benefits including salaries, social security contributions, short term
compensated absences (such as paid annual leave) where the absences are expected to
occur within twelve months after the end of the period in which the employees render the
related service, profit sharing and bonuses payable within twelve months after the end of
the period in which the employees render the related services and non-monetary benefits
for current employees are estimated and measured on an undiscounted basis.
15.9 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs incurred and exchange
differences arising from foreign currency borrowings, if applicable, to the extent they are
regarded as an adjustment to the interest cost. Costs in connection with the borrowing of
funds to the extent not directly related to the acquisition of qualifying assets are charged to
the Statement of Profit and Loss over the tenure of the loan.
15.10 Segment reporting
The Company does not have any other segments of business. Hence Segmental reporting is
not applicable to the company.
15.11 Current- Non-Current Classification
All assets and liabilities are classified into current and non-current
Assets
An asset is classified as current when it satisfies any of the following criteria:
(a) it is expected to be realized in, or is intended for sale or consumption in, the Company’s
normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within 12 months after the reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle
a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets
All other assets are classified as non-current
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in the Company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within 12 months after the reporting date or
(d) the Company does not have an unconditional right to defer settlement of the liability for at
least 12 months after the reporting date. Terms of a liability that could, at the option of the
counter party, result in its settlement by the issue of equity instruments do not affect its
classification.
Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
15.12 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post tax effect of extraordinary items, if any) by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted
for dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could
have been issued on the conversion of all dilutive potential equity shares. Potential equity
shares are deemed to be dilutive only if their conversion to equity shares would decrease
the net profit per share from continuing ordinary operations. Potential dilutive equity shares
are deemed to be converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e. average market value of
the outstanding shares). Dilutive potential equity shares are determined independently for
each period presented. The number of equity shares and potentially dilutive equity shares
are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
15.13 Taxes on income
Current tax is the amount of tax payable on the taxable income for the year after taking into
consideration the benefits /disallowances admissible under the provisions of the Income Tax
Act, 1961. Accordingly Minimum Alternate Tax which is in excess of Current Year Tax Liability is
being carried forward is being carried forward as a Current Asset in the Balance Sheet.
Minimum Alternate Tax paid in accordance with the tax laws, which gives future economic
benefits in the form of adjustment to future income tax liability, is considered as an asset if there
is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is
recognised as an asset in the Balance Sheet when it is probable that future economic benefit
associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences between the taxable
income and the accounting income that originate in one period and are capable of reversal in
one or more subsequent periods. Deferred tax is measured using the tax rates and the tax
laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are
recognised for all timing differences.
15.14 Impairment of assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed
for impairment. If any indication of impairment exists, the recoverable amount of such assets is
estimated and impairment is recognised, if the carrying amount of these assets exceeds their
recoverable amount. The recoverable amount is the greater of the net selling price and their
value in use. Value in use is arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that an impairment loss
recognised for an asset in earlier accounting periods no longer exists or may have decreased,
such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in
case of revalued assets.
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