2. Significant Accounting Policies
a) Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards
(Ind AS) as notified under section 133 of the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules, as amended from time to time. Due to the closure of operations, Ind
AS 105 “Non-Current Assets Held for Sale and Discontinued Operations” has been applied. These
financial statements are not prepared on a going concern basis.
b) Basis of Accounting
The financial statements have been prepared under the historical cost convention, except for certain
assets and liabilities that are measured at fair values. As the company is under closure, the
statements are prepared on a realizable value basis.
c) Use of Estimates
The preparation of financial statements requires estimates and assumptions that affect reported
amounts of assets, liabilities, income, and expenses. These estimates are reviewed periodically
and adjusted prospectively if required.
d) Property, Plant, and Equipment
All property, plant, and equipment have been classified as “held for sale” in accordance with Ind
AS 105. These are measured at the lower of carrying amount and fair value less cost to sell. No
depreciation has been charged post-classification.
e) Intangible Assets
All intangible assets have been written off in full, as their fair value less cost to sell is considered
to be nil.
f) Impairment of Assets
Assets or cash-generating units are tested for impairment whenever events indicate that the carrying
amount may not be recoverable. Any impairment loss is recognized in the Statement of Profit and
Loss.
g) Financial Instruments
Financial assets such as trade receivables and cash equivalents are measured at amortized cost.
The company derecognizes financial assets when the contractual rights to cash flows expire or are
transferred.
h) Employee Benefits
Liabilities for short-term employee benefits and termination benefits (VRS) are provided based on
contractual obligations. Defined benefit plans such as gratuity are provided for based on actuarial
valuations.
i) Inventories
Inventories have been disposed of or consumed. As on 31.03.2025, inventories stand at nil value.
j) Income Tax
Income tax expense comprises current and deferred tax. Deferred tax is recognized using the
balance sheet approach. Deferred tax assets are recognized to the extent it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.
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