2 Significant Accounting Policies
2.1 Basis of preparation and Measurement of financial statements:
Statement of Standalone Financial Statements are prepared in accordance with Indian Accounting Standards
(Ind AS) notified by Ministery of Corporate affairs pursuant to section 133 of the Companies Act, 2013 read with rule
3 of the Companies(Indian Accounting Standards) Rules, 2015(as amended from time to time) and presentation and
disclosures requirement of Division II of revised schedule III of the Companies Act 2013, (Ind AS Complained Schedule
III), as applicable to Standalone financial statement. Accordingly the company has prepared these Standalone Financial
Statements which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit or Loss ,the Statement
of Cash Flow 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 "Standalone financial statements").This financial
statements were authorised for issue by the Board of Directors in their meeting on 30th May 2025.
2.2 Amendments to the existing Accounting Standards issued effective from 01.04.2023 onwards
The details of amendment to the existing standards that are relevant to the Company with effect from 01.04.2023 are
given below:
The amendment to Ind AS 1 on 'presenting of financial statements' stipulates that the entity shall disclose material
accounting policy information rather than significant accounting policies. Accounting policy information is considered
material when accounting policy is related to a material transaction, event, or condition and involves either a change
in accounting policy or one or more permissible accounting policy choices or accounting policy development in the
absence of specific standard, or significant judgement or assumptions involved in applying such policy, or complexity
of accounting requiring one or more application of Ind AS.
Accordingly, the Company has revised its accounting policy disclosures by specifically providing only material
accounting policy ensuring no obscuring information. The above amendments are no financial effect on company.
The Ministry of Corporate Affairs vide notification dated September 9, 2024 and September 28, 2024 notified the
Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively, which amended / notified certain accounting standards
(see below), and are effective for annual reporting periods beginning on or after April 1, 2024:
Insurance contracts - Ind AS 117; and
Lease Liability in Sale and Leaseback- Amendments to Ind AS 11
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.
This note provides a list of other accounting policies adopted in the preparation of these standalone financial statements
to the extent they have not already been disclosed in the other notes below. These policies have been consistently
applied to all the years presented, unless otherwise stated.
These standalone financial statements are presented in Indian Rupees ('), which is also the Company's functional
currency. All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh unless
otherwise stated.
2.4 Historical Cost Convention
The financial statements have been prepared under the historical cost convention, on the basis of a going concern and
on accrual basis except for the following items -
a. Certain Financial Assets and Liabilities (including derivative instruments) are measured at Fair value
b. Defined benefit employee plan - Plan assets measured at fair value
2.5 Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements
and reported amounts of revenue and expenses of the reporting period. The recognition, measurement, classification
or disclosure of an item or information in the financial statements are made relying on these estimates.
The estimates and judgements 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 the future events) that the Company believes to be reasonable under the existing circumstances. Actual results
could differ from these estimates. Any revision to accounting estimates are recognised prospectively in current &
future periods.
2.6 Classification of Assets and Liabilities
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 realisations in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 (twelve) months for the purpose of current and non-current classification of assets
and liabilities.
2.7 Property, Plant and Equipment:
All items of property, plant and equipment are stated at cost net of accumulated depreciation and impairment, if any.
The cost comprises its purchase price and any cost directly attributable to bringing the Property, Plant and Equipment
to its working condition for its intended use.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other
repair and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are
incurred.
Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active
use. Losses arising from the retirement of and gains or losses arising from disposal of Property, plant and equipment
are recognised in the statement of profit and loss.
The cost of property, plant and equipment which are not ready for their intended use before such date, are disclosed
as capital work-in-progress.
The Company assesses at each Balance Sheet date whether there is any indication that any property, plant and
equipment may be impaired, if any such indication exists, the carrying value of such property, plant and equipment is
reduced to recoverable amount and the impairment loss is charged to statement of profit and loss. If at the Balance
sheet date there is any indication that a previously assessed impairment loss no longer exists, then such loss is
reversed, and the asset is restated to that extent.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and
equipment recognized as at 1st April 2016, measured as per the previous GAAP and use that carrying value as the
deemed cost of such property, plant and equipment except Free hold Land for which the company had adopted
revaluation model pursuant to the para 29 to 31 of Ind AS 16 and recognised revalued cost as its deemed cost as at
1st April 2016.
Revaluation of freehold land would be carried at sufficient regularity to ensure that the carrying amount does not differ
materially from that which would be determined using fair value at the end of the reporting period.
2.8 Depreciation
Depreciation has been provided on straight line method based on useful life of Assets as prescribed in Schedule II to
the Companies Act, 2013.
Depreciation is provided pro-rata from the date of capitalisation and depreciation is calculated on the carrying amount,
which is the cost of an asset less its residual value.
2.9 Intangible Assets
Intangible assets are carried at cost, net of accumulated amortization and impairment losses, if any. Cost of an intangible
asset comprises of purchase price and attributable expenditure on making the asset ready for its intended use.
The Company assesses at each Balance sheet date whether there is any indication that any intangible asset may be
impaired, if any such indication exists, the carrying value of such intangible asset is reduced to recoverable amount
and the impairment loss is charged to statement of profit and loss. If at the Balance sheet date there is any indication
that a previously assessed impairment loss no longer exists, then such loss is reversed, and the asset is restated to that
extent.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Intangible Assets
recognized as at 1st April 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of
Intangible Assets.
2.10 Amortization
Intangible assets are amortized based on their estimated useful lives.
2.11 Investments
The Company has elected to measure investment in equity shares of associate company at deemed cost, which is
previous GAAP carrying amount. Accordingly, under Ind AS, the Company has recognised investment as follows:
Equity shares of associate company - At deemed cost.
Quoted equity shares in other Company - At fair value.
Unquoted Equity shares - At fair value through profit and loss (FVTPL)
On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the statement of profit and loss.
2.12 Inventories
Inventories are stated at lower of cost or net realisable value. Goods in process is stated at cost. The cost includes cost
of purchase, freight, taxes and duties and is net of input credit where ever applicable, cost of conversion and other
cost incurred in bringing the inventories to their present location and condition. Raw Material, Stores & Spares are
considered at "weighted average" cost basis.
Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion
and estimated costs of necessary to make the sale. Adequate provision is made for obsolete, Non-moving and
Slow-moving items.
2.13 Financial Assets / Liability Policy
a. Financial Assets
Classification and Measurement
All the financial assets are initially measured at fair value. Transactions costs that are directly attributable to the
acquisition of financial asset (other than financial assets carried at fair value through profit and loss) are added to
or deducted from the fair value measured on initial recognition of financial asset.
Subsequent measurement
Subsequent measurement of financial assets depends on the classification i.e financial assets carried at amortised
cost or fair value (either through other comprehensive income or through profit and loss). Such classification is
determined on the basis of Company's business model for managing the financial assets and the contractual
terms of the cash flows.
The Company's financial assets primarily consists of cash and cash equivalents, trade receivables, balance with
statutory authority, loans and advances and security deposits etc which are classified as financial assets carried at
amortised cost.
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest are measured at amortised cost.
A gain or loss on financial asset that is subsequently measured at amortised cost is recognized in profit or loss
when the asset is derecognized or impaired. Interest income from these financial assets is recognized using the
effective interest rate method.
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost. For trade receivables, the Company provides for lifetime expected credit losses recognized from
initial recognition of the receivables.
De-recognition of financial assets
A financial asset is de-recognised only when the Company has transferred the rights to receive cash flows from
the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.
b. Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction cost.
The Company's financial liabilities include trade and other payables.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through statement of profit and loss :
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at
the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/losses attributable to changes in own credit risks are recognized in OCI. These gains/losses are
subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All
other changes in fair value of such liability are recognized in the statement of profit and loss.
De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the term of an existing liability are substantially modified, such an exchange or modification is treated as de¬
recognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amount is recognized in the statement of profit and loss.
Derivative financial instruments
Derivative financial instruments such as future contracts are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently re-measured at their fair value with changes in fair value recognised
in the Statement of Profit and Loss in the period when they arise.
2.14 Fair Value Measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
2.15 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivable, considering contractually defined terms of payment and excluding taxes or duties collected on behalf of
the government.
Sale of Goods:
Revenue from sale of goods are recognised on transfer of significant risk and rewards of ownership to the buyer which
generally coincides with shipment. Revenue from the sale of goods is measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates.
Revenue from sale of land and plots:
In respect of realty business segment the revenue from sale of land and plots is recognised in the year in which the
underlaying sale deed is executed and there exists no uncertainty in the ultimate collection of consideration from
buyers.
Rendering of Services :
Service revenues are recognised when services are rendered, and when the outcome of the transaction can be
estimated reliably.
Dividend, Interest income, Claims:
Dividend income from investments is recognised when the Company's right to receive dividend is established provided
it is probable that the economic benefits associated with the dividend will flow to the Company as also the amount of
dividend income can be measured reliably.
Interest income from a financial asset is recognised on a time basis, by reference to the principal outstanding using the
effective interest method provided it is probable that the economic benefits associated with the interest will flow to the
Company and the amount of interest can be measured reliably.
Insurance and other Claims are accounted for when no significant uncertainties are attached to their eventual receipt.
2.16 Borrowing
Borrowings are initially recognised at net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in the Statement of Profit and Loss over the period of the borrowings using the effective interest method.
2.17 Borrowing cost
Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost
of such asset up to the date when such asset is ready for its intended use. All other Borrowing costs are charged to
Statement of Profit and Loss in the year in which they are incurred.
2.18 Short-term Employee Benefits
Short Term employee benefits including accrued liability for Leave Encashment (other than termination benefits) which
are payable within 12 ( twelve) months after the end of the period in which the employees render service are paid/
provided during the year, as per the Rules of the Company.
Defined Contribution Plans:
Company's contributions paid/payable during the year to Provident and Family Pension Funds, and Employees State
Insurance are recognized in the Statement of Profit and Loss.
Defined Benefit Plans:
The Employees' Gratuity Fund Scheme covered by the Group Gratuity cum-Life Assurance Policy of LIC of India is
a Defined Benefit Plan. The present value of obligation is determined based on actuarial valuation using Projected
Unit Credit Method which recognizes each period of service as giving rise to additional amount of employees benefit
entitlement and measures each unit separately to build up the final obligation.
2.19 Foreign currency Transactions
Initial recognition:
Transactions in Foreign Currencies entered into by the Company are accounted at the exchange rate prevailing on the
date of the transaction.
Measurement:
Foreign Currency monetary items of the Company outstanding at the balance sheet date are restated at year end
exchange rates.
Non-monetary items carried at historical cost are translated using the exchange rates at the dates of initial transactions.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value is determined. The gain or loss arising on transaction of non-monetary items measured at fair value
is treated in line with the recognition of the gain or loss on the change in fair value of the item.
Treatment of exchange difference
Exchange differences arising on settlement/restatement of foreign currency monetary assets and liabilities of the
Company are recognised as income or expenses in the Statement of Profit and Loss
a. Current tax is made on the basis of estimated taxable income for the year or computed in accordance with the
Income-Tax Act, 1961 and recognized in the statement of Profit and Loss except to the extent it relates to items
directly recognized in equity or in other comprehensive income.
b. Deferred tax on account of timing differences, between taxable income and accounting income is recognized
using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets
are recognized to the extent there is reasonable certainty that these would be realized in future.
c. Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly in equity respectively.
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