1 SIGNIFICANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENT :
A Basis of Preparation of Financial Statements
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the
provisions of the Companies Act, 2013 ('the Act') (to the extent notified). The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016.
The Company has adopted IndAS during the F. Y. 2023-24, all the Ind AS standards and the adoption was carried out in
accordance with Ind AS 101 - First-Time Adoption of Indian Accounting Standards. The transition was carried out from
Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.
Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle
and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the
time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company
ascertains its operating cycle for the purpose of current/non-current classification of assets and liabilities.
B Use of Estimates
The preparation of the Financial Statements in conformity with IndAS requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities
as at the date of the financial statements and reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees benefits, income taxes, useful lives of fixed assets
etc. Although these estimates are based upon management's best knowledge of current events and actions, actual
results could differ from these estimates. Difference between the actual results and estimates are recognised in the
period in which the results are known / materialised.
C Property, Plant & Equipment and Intangible Assets
Transition to INDAS for presentation of Financial Statements
On transition to Ind AS, the Company has elected to continue with the carrying value of all the items of property, plant
and equipment recognized as at 01 April,2022, measured as per the previous GAAP, and use that carrying value as the
deemed cost of such property, plant and equipment.
Intial Measurement & Subsequent recognition
The Property, Plant and Equipment & Intangible Assets are stated at cost, less accumulated depreciation and impairment
,if any. Direct costs are capitalised until such assets are not put to use. The cost comprises of purchase price, taxes,
duties, freight and other incidental expenses directly attributable and related to acquisition and installation of the
concerned assets and are further adjusted by the amount of input tax credit availed wherever applicable. Subsequent
costs are included in asset's carrying amount or recognised as separate assets, as appropriate, only when it is probable
that future economic benefit associated with the item will flow to the Company and the cost of item can be measured
reliably. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost
of the respective asset if the recognition criteria for a provision are met.
Derecognition
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included
in the income statement when the asset is derecognised.
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.
D Depreciation and Amortisation
Depreciation on Property, Plant and Equipment is provided on the "Straight-Line Method" over the useful life of assets
as prescribed under Schedule -II of Companies Act'2013. Depreciation for assets purchased/ sold during a period is
proportionately charged.
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.
E Investment Property
Investment property is property (land or building) held by the company to earn rentals or for capital appreciation or both,
and that is not used by the company for business purpose.
Initial Measurement:
Investment properties are measured initially at their cost of acquisition. The cost comprises purchase price, borrowing
cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use.
Subsequent Measurement:
Investment properties are subsequently measured in accordance with Cost Model as prescribed in IndAS-40 i.e. at cost
less accumulated depreciation and impairment losses (if any).
Depreciation
Depreciation is calculated on investment properties by applying the Straight Line Method to their residual values over
the useful lives as prescribed under Schedule -II of Companies Act'2013.
Derecognition:
The carrying amount of an item of property is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The gain or loss arising from the derecognition of an item of property is measured
as the difference between the net disposal proceeds and the carrying amount of the item and is recognised in the
statement of Profit and Loss when the item is derecognised .
F Cash and cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
cheques in hand, deposits held at call with financial institutions, other short term highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
G Provision For Current And Deferred Tax
Current Tax: Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with
the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
at the reporting date.
Deferred tax: is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not
recognized if they arise from the initial recognition of goodwill. Deferred tax is determined using tax rates (and laws)
that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the
related deferred income tax asset is realized or the deferred income tax liability is settled.
H Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
(I) Financial Assets:
The Company classifies its financial assets at Fair value through Other Comprehensive Income (FVOCI) or Fair
value through Profit & Loss (FVTPL).
The classification is based upon two tests namely Business Model Test (BMT) and Contractual Cash Flow Test
(CCFT).
BMT: Where entity's objective is to hold assets for collecting contractual cash flows.
CCFT: Where contractual cash flows are solely payment of principal and interest on a specified due dates.
Measurement & Recognition of Financial Assets
Investment in Equity Instrument
The company has invested in equity instruments of both listed entities and other unlisted or private companies.
These investments are carried at Fair Value Through Other Comprehensive Income (FVTOCI). As a result, any
changes in the fair value of these instruments are reflected in Other Comprehensive Income (OCI), except for
dividends. Even after the sale of an investment, there is no recycling of the amounts previously recognized in OCI.
However, the company has the option to transfer the cumulative gain or loss within the equity section.
Investment in Mutual Funds
All investments in Mutual funds instruments classified under financial assets are initially measured at fair value.
The Company opted to recognise mutual funds through OCI.
Loans & Advances
The company extended loans and advances to both related and unrelated parties. To ensure proper classification
of these financial assets, the Business Model and Contractual Cash Flow tests must be met. However, the loans
and advances did not pass the Contractual Cash Flow test (CCFT), leading the company to classify them at Fair
Value Through Profit & Loss (FVTPL).
The company has adopted IndAS with a transition date April 01, 2022 for statutory filing. According to IndAS-
101"First time Adoption of Indian Accounting Standard" the company has option to carry loans & advance at its fair
value or it may continue to carry at its historical cost which is known as 'deemed cost'. The company has opted to
carry the loans at deemed cost in pursuance of IndAS-101.
Derecognition
Financial assets are derecognized (removed from the company's statement of financial position) primarily when:
1. The rights to receive cash flows from the asset have expired, or
2. The company has transferred its rights to receive cash flows to a third party under a ""pass through""
arrangement and either:
a) The company transferred the rights to receive cash flows from the financial asset, or
b) The company retained the contractual right to receive the cash flows but assumes the obligation to pay
them to one or more recipients.
If the company has transferred substantially all the risks and rewards of ownership of the financial assets, the
asset is derecognized. If not, the asset is not derecognized. If the company neither transferred a financial asset
nor retains substantially all risks and rewards of ownership, the financial asset is derecognized if the company has
not retained control of it. If the company retains control, the asset continues to be recognized to the extent of its
continuing involvement in the financial asset.
Impairment
In compliance with Ind AS 109, the company has evaluated and measured its Expected Credit Loss for impairment
loss on financial assets. As of the review period, no such expected loss has been recognized.
(II) Financial Liabilities:
Recognition & Measurements
In accordance with the accounting standards, financial liabilities are initially recorded at their fair value and are
subsequently measured based on either the Fair Value Through Profit & Loss (FVTPL) method or at amortized cost.
The financial liabilities of the company include trade payables, short-term borrowing, and other financial liabilities.
For the purpose of the Restated Financial Statements, all these liabilities are measured at amortized cost.
Derecognition
A financial liability is derecognized from the company's statement of financial position when the obligation under
the liability is settled, cancelled, or reaches its maturity date. If an existing financial liability is replaced by another
liability from the same lender but with significantly different terms, or if the terms of the existing liability are
substantially modified, this exchange or modification is considered as the derecognition of the original liability and
the recognition of a new liability.
Any difference between the carrying amounts of the original liability and the newly recognized liability is recorded
in the statement of profit and loss.
I Current Assets, Loans & Advances
In the opinion of the Board and to the best of its knowledge and belief the value on realisation of current assets in
the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet and
repayable on demand.
J Revenue Recognition
(a) The company generally follows the mercantile system of accounting and recognizes Income & Expenditure on
accrual basis.
(b) Revenue is recognised to the extent that it is possible that, the economic benefits will flow to the company and the
revenue can be reliably estimated and collectability is reasonably assured.
(c) Revenue from sale of goods and services are recognised when control of the products being sold is transferred
to our customer and when there are no longer any unfulfilled obligations. The performance obligations in our
contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer
terms.
(d) Revenue is measured on the basis of sale price, after deduction of any trade discounts, volume rebates and any
taxes or duties collected on behalf of the Government such as goods and service tax etc. Professional experience
is used to estimate the provision for such discounts and rebates. Revenue is only recognized to the extent that it is
highly probable a significant reversal will not occur.
(e) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate
applicable."
K Foreign Exchange
In preparing the Ind As Financial Statements of the Company, transactions in currencies other than the entity's functional
currency (foreign currencies) are recognised at the rates of exchange prevailing at the date of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates
prevailing at that date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
L Related Party Transactions
According to IndAS-24 the company has presented disclosures in "Annexure-A"-RPT.
M Title deeds of immovable property not held in the name of the company:
The Title deed of all immovable properties disclosed in the financial statements included under Property, Plant and
Equipment are held in the name of the Company as at the balance sheet date.
N Revaluation of Property, Plant and Equipment:
The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible
assets during the year.
O Loans and Advances in the nature of loan repayable on demand or without specifying the terms or period of
repayment:
During the year, the company has not granted any Loans or Advances in the nature of loans to the related parties (as
defined under Companies Act, 2013), accordingly the above clause is not applicable.
P Benami Property held:
There is no proceeding have been initiated or pending against the company for holding any benami property under the
Benami Transaction ( prohibition ) Act , 1988 (45 of 1988) and the rules made thereunder.
Q Working capital limits from Banks/FIs on the basis of security of Current Assets
The Company has no borrowings from the banks or financial institutions on the basis of current assets.
R Wilful defaulter
The company is not declared wilful defaulter by any bank or financial Institution or other lender.
S Relationship with struck off Companies
The company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.
T Registration of charge or satisfaction with Registrar of Companies
The company has no charge or satisfaction yet to be registered with Registrar of Companies.
U Compliance with number of layers of Companies
The company has Subsidiary and provisions prescribed under clause (87) of section 2 of the Act read with Companies
( Restriction on numbers of Layers ) Rules , 2017 are complied.
V Compliance with Approved Scheme(s) of Arrangements
During the year under review, the company has not made any application for Scheme of Arrangement. Accordingly, no
approval from the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013 is required to be
obtained by the company.
W Undisclosed Income
The Company has no such transaction not recorded in the books of account that has been surrendered or disclosed as
income during the year in the tax assessment under the Income Tax Act 1961.
X Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Y Provision
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources.
Z Employee Benefit Expenses :
Short Term Employee Benefits : The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during the period when the employees
render the services.
Long Term Employee Benefits : Compensated absences which are not expected to occur within twelve months after the
end of the period in which the employee renders the related service are recognised as a liability as at the Balance Sheet
date on the basis of actuarial valuation as per Projected Unit Credit Method.
Post-Employment Benefits
Defined Contribution Plans A defined contribution plan is a post-employment benefit plan under which the Company
pays specified contributions towards Provident Fund, Employee State Insurance and Pension Scheme. The Company's
contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee
renders the related service.
Defined Benefit Plans :
(a) Gratuity : The Company offers gratuity plan for its qualified employees which is payable as per the requirements
of Payment of Gratuity Act, 1972. The benefit vests upon completion of five years of continuous service and once
vested it is payable to employees on retirement or on termination of employment. In case of death while in service,
the gratuity is payable irrespective of vesting.
(b) Risk exposure to defined benefit plans:
The plans typically expose the Company to actuarial risks such as: Investment risk, Liquidity risk, Market risk and
Legislative risk.
Actuarial risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into
an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed
salary growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than
the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are
vested as at the resignation dale.
Investment risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not
be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent
of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are
significant changes in the discount rate during the inter-valuation period.
Liquidity risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.
Market risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets
One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value
of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice
versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of
liability is exposed to fluctuations in the yields as at the valuation date.
Legislative risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to
Note: Out of the total defined obligation as on March 31, 2025 the company recognises 8.13 lakhs as Gratuity
payable and balance 9.88 lakhs is recognised as Provision for Gratuity.
Major Assumptions
i) Retirement Age is 60 Years, added One year to the Current Age.
ii) Discount Rate taken 6.69% (Last year- 7.18 %)
iii) Salary Growth Rate taken 8.00 %
iv) Withdrawal Rate taken 10.00%
v) Mortality Rate 100 % of IALM 2012-2014
AA Earnings Per Share
The Company reports Basic and Diluted earnings per equity share in accordance with the Indian Accounting Standard - 33
'Earning Per Share'. In determining earning per share, the Company considers the net profit after tax and includes the
post tax effect of any extraordinary/exceptional items. The number of shares used in computing basic earning per
share is the weighted average number of equity shares outstanding during the period. The number of shares used in
computing diluted earning per share comprises the weighted average number of equity shares that would have been
issued on the conversion of all potential equity shares. Dilutive potential equity shares have been deemed converted as
of the beginning of the period, unless issued at a later date.
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