2. Significant accounting policies
a. Basis for preparation of Accounts:
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed under Section 133 of the
Companies Act, 2013, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"). The financial
statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in
the preparation of the financial statements are consistent with those followed in the previous year.
b. Use of Estimates
'The preparation of the financial statements in conformity with Indian GAAP requires the Management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities)
and the reported income and expenses during the year. The Management believes that the estimates used in preparation
of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognised in the periods in which the results are
known/materialise.
c. 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.
d. Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or Company are segregated based
on the available information.
e. Property, Plant and Equipment’s
Tangible assets are carried at cost less accumulated depreciation / amortization and impairment losses, if any. The cost
of property, plant and equipment’s comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings
attributable to acquisition of qualifying property, plant and equipment’s up to the date the asset is ready for its intended
use.
Depreciation
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual
value.
Depreciation on tangible assets is calculated on the straight-line basis over the estimated useful life of all assets. The
lives are in accordance with Schedule II to the Companies Act, 2013.
f. Borrowing Cost
Borrowing costs include Bank charges, Bank Guarantee Commission and Loan Processing charges.
g. Employee Benefits
Contribution to employee’s benefit funds remitted to statutory authority is charged to revenue if any. No provision has
been made for accruing liability for gratuity to employees. Gratuity payable is accounted for as and when payment are
made.
h. Revenue recognition:
Net value of sales of goods and services are considered under revenue from operation.
Income from services: Revenues from contracts priced on a time and material basis are recognized when services are
rendered and related costs are incurred.
Other income:
Interest Income is accounted on accrual basis.
i. Foreign currency transactions and translations:
The foreign exchange earnings was Rs. Nil
The foreign exchange outgo was Rs. 3420.17/- (Rs. in Lakhs) (USD $ 40,01,272.89)
j. 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.
k. Taxes on income :
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized 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 recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income
available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the
extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be
realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at
each Balance Sheet date for their reliability Current and deferred tax relating to items directly recognized in equity is
recognized in equity and not in the Statement of Profit and Loss.
m. Micro, Small and Medium Enterprises
According to the information and explanation provided to us, the Division has no amounts due to suppliers under the
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) as at 31-03-2025 to the extent such parties
have been identified by the management.
p. The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year ended 31 March
2025. Further, the Company has also not received any deposits or virtual currency.
q. The Company has not been declared willful defaulter by any bank or financial institution or other lender.
r. There are no transactions / relationship with struck off companies.
s. advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.
t. The Contingent liability in respect of bill discounted under LC as on 31st March, 2025 amounts to Rs. 553.06/- Lakhs.
u. Previous Year Figures have been regrouped re-casted wherever necessary.
This is the summary of significant accounting policies and other explanatory information referred to in our report of even
date.
For B. A. DESAI AND ASSOCIATES
Chartered Accountants Sd/- Sd/-
Firm Registration No. 113069W Nagalaxmi Balasubramanian Balasubramanian Raman
Whole time Director CFO (KMP) & Managing Director
(DIN-00410495) (DIN-00410443)
Sd/-
(CA BHARAT A DESAI)
Proprietor Sd/-
Membership N°. 046220 Silky Bhikhalal Shah
16/05/2025 Company Secretary
Vapi
|