a. Statement of Compliance:
The financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS’)
notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies
(Indian Accounting Standards) (Amendment) Rules, 2016 and other relevant provisions of the Act.
For the year ended 31st March 2026, the financial statements of the Company have been prepared in
compliance with the Indian Accounting Standards (Ind AS) noticed 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.
b. Basis of Preparation of Financial Statements:
The Company has prepared the Financial Statements which comprise the Balance Sheet as at 31st March
2026, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity
for the year ended 31st March 2026, and a summary of the significant accounting policies and other
explanatory information together hereinafter referred to as “Financial Statements”.
These financial statements have been prepared and presented under the historical cost convention, on accrual
basis of accounting except for certain financial assets and financial liabilities that are measured at fair values
at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies
have been applied consistently over all the periods presented in these financial statements
The financial statements are presented in Indian Rupees (‘INR’) and all values are rounded to the nearest
INR”, except otherwise indicated.
c. Use of Estimates and Judgments:
The preparation of the financial statements requires that the Management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of
the financial statements and the reported amounts of revenue and expenses during the reporting period. The
recognition, measurement, classification or disclosure of an item or information in the financial statements is
made relying on these estimates.
The estimates and judgments used in the preparation of the financial statements are continuously evaluated
by the Company and are based on historical experience and various other assumptions and factors (including
expectations of future events) that the Company believes to be reasonable under the existing circumstances.
Actual results could differ from those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
d. Presentation of Financial Statements:
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed
in the Schedule III to the Companies Act, 2013 ("the Act"). The Statement of Cash Flows has been prepared
and presented as per the requirements of Ind AS 7 "Statement of Cash flows". The disclosure requirements
with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III
to the Act, are presented by way of notes forming part of the financial statements along with the notes required
to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (as amended).
e. Inventories:
Inventories are valued at the lower of cost and net realizable value (NRV). At cost or Net Realizable Value
whichever is lower.
f. Cash Flow Statement:
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of change in value.
For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits
and other short term highly liquid investments, net of bank overdrafts as they are considered an integral part
of the Company's cash management. Bank overdrafts are shown within short term borrowing in balance sheet.
g. Tangible fixed assets
Fixed assets are stated at cost, less depreciation and impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to
its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the
purchase price.
h. Depreciation:
Depreciation on fixed assets is provided on a straight-line basis using the rates arrived at based on the useful
lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013,
whichever is higher. However, Management has not estimated the useful lives of assets and rate is used as
per the Companies Act, 2013.
i. Borrowing:
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and
the redemption amount is recognized in profit or loss over the period of the borrowings using the effective
interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract
is discharged, cancelled or expired.
j. Retirement and Other Employee Benefits:
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no
obligation, other than the contribution payable to the provident fund. The company recognizes contribution
payable to the provident fund scheme as expenditure, when an employee renders the related service.
k. Earnings Per Share:
Basic earnings per share is computed by dividing the profit/(loss) for the year by the weighted average number
of equity shares outstanding during the year. The weighted average number of equity shares outstanding
during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of shares).
Diluted earnings per share is computed by dividing the profit/(loss) for the year as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) 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.
l. Cash Flow Statement:
Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transaction of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income and expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the company are segregated.
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