2 Significant Accounting Policies
A Basic for Preparations
1 Statement of Compliance
The Financial Statements have been prepared in accordance with IND AS notified under the
Companies (Indian Accounting Standard) Rules, 2015. Accordingly, these financial statements
have been prepared on the historical cost basis and in accordance with IND AS notified by
section 133 of the Companies Act, 2013 read with relevant rules issued thereunder from time to
time, to the extent applicable to the company. The Company has prepared these financial
statements which comprise the Balance Sheet as at 31st March, 2025, tire Statement of Profit and
Loss for the year ended 31st March, 2025, the Statement of Cash Flows for the year ended 31st
March, 2025 and the Statement of Changes in Equity for the year ended as on that date, and
accounting policies and other explanatory information (together hereinafter referred to as
'financial statements').
The Financial Statements are presented in Indian Rupees which is rounded off in Thousands as
per requirement of Schedule III of the Act.
2 Use of Estimates
The preparation of the financial statements in conformity with IND AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affect
the application of accounting policies and the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the date of the financial statements and reported
amoimts of revenues and expenses during the period. Appropriate changes in estimates are made
as management becomes aware of changes in circumstances surrounding the estimates. Changes
in estimates are reflected in the financial statements in the period in winch changes are made
and, if material, their effects are disclosed in the notes to the financial statements.
Information about areas involving a higher degree of judgement or complexity or critical
judgements in applying accounting policies, as well as estimates and assumptions that have the
most significant effect to the carrying amounts of assets and liabilities, contingent assets and
liabilities, income and expenses are included in the following notes :
a. Impairment of Financial Assets such as Trade Receivable.
b. Impairment of Non-Financial Assets.
c. Estimates of Tax Expenses and liability.
d. Revenue Resognitions.
3 Current and Non-current Classification.
All assets and liabilities have been classified as current and non-current as per the Company's
normal operating cycle (twelve months) and other criteria set out in the schedule III to the Act.
The Company classifies all other liability as non-current. Deferred Tax Assets and Liabilities are
classified as Non-Current assets and liabilities.
4 Revenue Recognition
Revenues /Income and Cost/Expenditure are generally accounted on Accraal basis as they are
earned and incurred.
Dividend Income is accounted as and when the right to receive is established.
5 Property, Plant & equipment and Intangible Assets
Property, plant and equipment are stated at cost, less accumulated depreciation /amortization
and impairment, if any. Costs directly attributable to acquisition are capitalized until the property,
plant and equipment are ready for use, as intended by management. If significant parts of an item
of Property, Plant & equipment have different useful lives, then they are accounted for as
separate items (major components) of Property Plant & equipment.
6 Depreciation and Amortisation
The company depreciates property, plant and equipment over their estimated useful lives using
the written down value method at the rate in the maimer prescribed under Schedule XIV
of the Companies Act, 2013.. Depreciation on additions/deductions to property, plant and
equipment is provided on pro-rata basis from the date of actual installation or up to the date of
such sale or disposal, as the case may be. 1
8 Inventory
Inventories are measured at lower of cost and net realisable value (NRV) after providing for
obsolescence, if any. Cost of finished goods and work-in-progress (WIP) includes all costs of
purchases, conversion costs and other costs incurred in bringing the inventories to their present
location and condition. Net Realizable Value is the estimated selling price in the ordinary course
of business less any applicable selling expenses.
9 Borrowing Cost
i) The Borrowing costs winch are incurred for obtaining a assets which take substantial period to
get ready for their intended use are capitalised to tire respective assets to the extent tire cost are
directly attritutable to such assests and in any other case by Weighted average cost of borrowings
to the expenditure on such assets. After completion of asset, the borrowing cost shall be treated
as expense for the year.
ii) Other borrowing costs are treated as expense for the year.
10 Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, deposits held at call with banks, other short
term highly liquid investments which are readily1 convertible into known amoimt of cash and are
subject to insignificant tisk of change in value. Bank overdrafts are shown within borrowings in
current liabilities on the balance sheet.
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Impairment of Financial Assets
At each Balance sheet date, management reviews the Carrying amoimt of it assets included in the
Cash Generating to determine whether there is any indication that those assets were impaired. If
any such indications exists, recoverable amoimt of the assets is estimated in order to determine
the extent of impairement
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