2) Summary of the material accounting policies
a) Basis of Preparation for Financial Statements and Purpose
The Financial Statement is prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with
Companies (Indian Accounting Standards) Rules, 2015 as amended.
The Balance Sheet, Statement of Change in Equity and Statement of Profit & Loss are
presented in the format prescribed under Division III of Schedule III of the Act, as
amended from time to time, for Non-Banking Financial Companies ('NBFCs') that are
required to comply with Ind AS. The Statement of Cash Flows has been presented as
per the requirements of Ind AS 7 Statement of Cash Flows.
The Financial Statement have been prepared under historical cost convention basis
except the following assets and liabilities which have been measured at fair value All
amounts disclosed in the financial statements and notes have been rounded off to
the nearest lakhs in
compliance with Schedule III of the Act, unless otherwise stated.
b) Use of estimates
The preparation of this financial Statement in conformity with the recognition and
measurement principles of Ind AS requires the management of the Company to
make estimates, judgments and assumptions. This estimates, judgments and
assumptions affect
application of accounting policies and the reported amount of assets, liabilities,
disclosure of contingent assets and liabilities at the date of financial Statement and
the reported amount of income and expenses for the periods presented. Although
this estimates are based on the management's best knowledge of current events and
actions, uncertainty about this assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods. Further the estimates and underlying assumptions are
reviewed on an ongoing basis. Accounting estimates could change from period to
period. Any revision to accounting estimates is recognised prospectively. Actual
results could differ from the estimates. Any difference between the actual results and
estimates are recognised in the period in which the results are known/materialize. In
particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on
the amounts recognized in the financial Statement are as below:
Ý Valuation of Financial Instruments;
Ý Evaluation of recoverability of deferred tax assets;
Ý Useful lives of property, plant and equipment and intangible assets;
Ý Obligations relating to employee benefits;
Ý Provisions and Contingencies;
Ý Provision for income taxes, including amount expected to be paid/recovered
for uncertain tax positions;
Ý Recognition of Deferred Tax Assets.
c) Basis of Preparation for Financial Statements and Purpose
There were certain items of Property, Plant and Equipment acquired / put to use /
ready to use were included in Capital Work-in-progress in the financial statements for
the year ended 31 March, 2023 of and were capitalized on 1 April, 2024 of Rs.
9,62,98,564/- and hence amortization has been charged for the current year
An item of property, plant and equipment that qualifies for recognition as an asset
shall be measured at its cost. Cost comprises of the purchase price and any
attributable / allocable cost of bringing the asset to its working condition for its
intended use. Cost also includes direct cost and other related incidental expenses.
When significant components of property, plant and equipment are required to be
replaced at intervals, recognition is made for such replacement of components as
individual assets with specific useful life and depreciation if this components are
initially recognised as separate asset. All other repair and maintenance costs are
recognised in the statement of profit and loss as incurred.
The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.
An item of Property, Plant and Equipment is derecognised upon disposal or when no
future economic benefits are expected to arise from the continued use of the asset.
Depreciation is provided from the date the assets are ready to be put to use, as per
straight line method (SLM) method over the useful life of the assets, as prescribed
under Part C of Schedule II of the Companies Act, 2013 mentioned below.
Gains or losses arising on the disposal of property, plant and equipment are
determined as the difference between the disposal proceeds and the carrying
amount of the assets and are recognized in the statement of profit and loss within
'other income' or 'other expenses' respectively.
d) Impairment of assets
At each reporting date, The Company has not made impairment assessment and not
identified, measured, quantified and accounted / disclosed the impairment of assets
and its impact on the current financial statements. Also, no impairment assessment
was carried out by the Company in respect of Property, Plant and Equipment,
Software under development and no provision in this respect for impairment loss, if
any, has been made for the period in the financial statements.
e) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together
with other short-term, highly liquid investments maturing within 3 months from the
date of acquisition that are readily convertible into known amounts of cash and
which are subject to an insignificant risk of changes in value.
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