A. General Information
IMEC Services Limited was incorporated as a Limited Company on 18thJune, 1987. In the year 2011, Company trans¬
ferred its Plant along with Steel Division situated at Village - Sejwaya, Ghatabillod, and Dist. Dhar (M.P.) to its sub¬
sidiary RSAL Steel Private Limited. Now, the main business activity of the company is Management and Consultancy
Services inter alia - information technology, engineering and technical.
The shares of the Company are listed at the BSE Ltd., Mumbai.
The financial statements for the year ended 31st March, 2025were approved by the Board of Directors and author¬
ised for issue on May 30, 2025
B. Significant Accounting Policies of Financial Statements
The significant accounting policies applied by the Company in the preparation of its financial statements are listed
below. Such accounting policies have been applied consistently to all the periods presented in these financial
statements, unless otherwise indicated.
I. Statement of compliance
The financial statement have been prepared in accordance with Indian Accounting standards ("Ind AS") notified,
under Section 133 of the Companies Act, 2013 ('Act') read with the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standard) Amendment Rules 2016 and the relevant provisions of the Act.
II. Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS), under the
historical cost convention on the accrual basis except for certain financial instruments which are measured at fair
value at the end of each reporting period, as explained in the accounting policies mentioned below.
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 Schedule III to the Companies Act, 2013. The Company has ascertained its operating
cycle as 12 months for the purpose of current and non-current classification of assets and liabilities. The operating
cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.
The Company has identified twelve months as its operating cycle.
Functional and Presentation of Currency
These financial statements are presented in Indian rupees, which is the Company's functional currency. All
amounts have been rounded to the nearest Rupees in Lacs unless otherwise indicated.
III. Use of Estimates, Judgments and Assumptions
In the preparation of the financial statements, the Company makes judgments, estimates and assumptions about
the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and asso¬
ciated assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are iec-
ogriaad in the period in which the estimate is revised and future periods affected.
Key source of estimation of uncertainty at the date of the financial statements, which may cause material adjust¬
ment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment,
useful lives of property and plant and equipment, valuation of deferred tax assets, provisions and contingent liabili¬
ties, fair value measurements of financial instruments and retirement benefit obligations as discussed below.
Impairment
The Company estimates the value in use of the cash generating unit (CGU) based on future cash flows after consider¬
ing current economic conditions and trends, estimated future operating results and growth rates and anticipated fu¬
ture economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The cash
flows are discounted using a suitable discount rate in order to calculate the present value.
Useful lives of property, plant and equipment and intangible assets
The Company reviews the useful life of property, plant and equipment and intangible assets at the end of each re¬
porting period. This reassessment may result in change in depreciation and amortisation expense in future periods.
Valuation of deferred tax assets
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period.
Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as result of a past event and it is probable that
the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabili¬
ties are not recognized in the financial statements.
Fair value measurements of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including Discount¬
ed Cash Flow Model. The inputs to these models are taken from observable markets where possible, but where this is
not feasible, a degree of judgement is required in establishing fair value. Judgements include considerations of inputs
such as liquidity risks, credit risks and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments.
Retirement benefit obligations
The Company's retirement benefit obligations are subject to number of judgements including discount rates, infla¬
tion and salary growth. Significant judgements are required when setting these criteria and a change in these as¬
sumptions would have a significant impact on the amount recorded in the Company's balance sheet and the state¬
ment of profit and loss. The Company sets these judgements based on previous experience and third party actuarial
advice.
IV. Property, plant and equipment
An item of property, plant and equipment is recognized as an asset if it is probable that future economic benefits as¬
sociated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is
applied to costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred sub¬
sequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing,
are recognized in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the
replaced part is de-recognized. Where an item of property, plant and equipment comprises major components hav¬
ing different useful lives, these components are accounted for as separate items.
Property, plant and equipment is stated at cost or deemed cost applied on transition to Ind AS, less accumulated de¬
preciation and impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its working
condition and location for its intended use. Trial run expenses (net of revenue) are capitalised. Borrowing costs in¬
curred during the period of construction is capitalised as part of cost of qualifying asset.
The gain or loss arising on disposal of an item of property, plant and equipment is determined as the difference be¬
tween sale proceeds and carrying value of such item, and is recognized in the statement of profit and loss.
Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the ex¬
penditure will flow to the company.
Depreciation of Fixed Assets
Depreciation on property, plant and equipment is provided on Written down value method (WDV) as per the useful
life of the assets in the manner as specified in Schedule II to the Companies Act, 2013. The estimated useful life of as¬
sets and estimated residual value is taken as prescribed under Schedule II to the Companies Act, 2013.
Depreciation on additions during the year is provided on pro rata basis with reference to date of addi-
tion/installation. Depreciation on assets disposed/discarded is charged up to the date on which such asset is sold.
V. Investments in subsidiaries
Investments in subsidiaries are carried at cost/deemed cost applied on transition to Ind AS, less accumulated im¬
pairment losses, if any. Where an indication of impairment exists, the carrying amount of investment is assessed and
an impairment provision is recognized, if required immediately to its recoverable amount. On disposal of such in¬
vestments, difference between the net disposal proceeds and carrying amount is recognized in the statement of prof¬
it and loss.
VI. Revenue
Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognized to the extent
that it is probable that the economic benefit will flow to the company and the revenue can be measured reliably and
there is no continuing effective control/managerial involvement in respect of the revenue activity as described be¬
low.
a) Sale of Services
Revenue from sale of services is recognized when agreed contractual task has been completed or services are ren¬
dered.
b) Sale of goods
Revenue from sale of products is recognized when control of the products has transferred, being when the products
are delivered to the customer. Delivery occurs when the products have been shipped or delivered to the specific lo¬
cation as the case may be, the risks of loss has been transferred, and either the customer has accepted the products
in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have
been satisfied.
Revenue from sales is measured net of returns, trade discounts and volume rebates, GST wherever applicable. Fur¬
ther, the revenue amount is adjusted for the time value of money if that contract contains a significant financing
component.
The timing of the transfer of control varies depending on the individual terms of the sales agreement.
c) Interest and Dividend
Interest income is recognized on accrual basis using the effective interest method. Dividend income is recognized in
profit or loss on the date on which the company's right to receive payment is established.
VII. Employee benefits
a) Defined benefit plans
The liability for gratuity a defined benefit plan is determined annually by a qualified actuary using the projected unit
credit method.
The Company pays gratuity to the employees who have completed 5 Years of service with company at the time when
the employee leaves the company as per the Payment of Gratuity Act, 1972.
Re measurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan as¬
sets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in
OCI. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate,
used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year af¬
ter taking into account any changes as a result of contribution and benefit payments during the year. Net interest
expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to
past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes
gains and losses on the settlement of a defined benefit plan when the settlement occurs.
b) Defined contribution plans
The Company's payments to the defined contribution plans are recognized as expenses during the period in which
the employees perform the services that payment covers. Defined contribution plan comprise of contribution to the
employees' provident fund with government, Employees' State Insurance and Pension Scheme.
c) Short term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount
expected to be paid if the company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
d) Other 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 services are recognized as a liability at the present value of obligation as at the Bal¬
ance sheet date determined based on an actuarial valuation.
VIM. Income Tax
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to a business combination, or items recognized directly in equity or in OCI.
a) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any ad¬
justment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or sub¬
stantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if, the Company:
a) has a legally enforceable right to set off the recognized amounts; and
b) Intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
b) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the fi¬
nancial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities
are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if
the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects nei¬
ther the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be re¬
covered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively en¬
acted by the end of the reporting period.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is
likely to give future economic benefits in the form of availability of set off against future income tax liability. Accord¬
ingly, MAT is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is
probable that the future economic benefit associated with the asset will be realised.
Deferred tax assets and liabilities are offset only if:
a) The entity has a legally enforceable right to set off current tax assets against current tax
Liabilities;
b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable entity.
IX. Foreign currency transactions and translations
The financial statements of the Company are presented in Indian Rupees, which is the functional currency of the
Company and the presentation currency for the financial statements.
Transactions in foreign currencies are translated into the respective functional currencies of the company at the ex¬
change rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Difference arising on settlement of monetary items is generally recognized in
statement of profit and loss.
Non-monetary items that are measured based on historical cost in a foreign currency are not translated. Non- mone¬
tary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional cur¬
rency at the exchange rate when the fair value was determined. Exchange difference arising out of these transactions
is generally recognized in statement of profit and loss.
X. Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are as¬
sets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets is substantially ready for the intended use or sale.
Qualifying asset are the assets that necessarily takes a substantial period of time to get ready for its intended use.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying
assets is recognized in the statement of profit and loss.
XI. Cash and Cash Equivalent
In cash flow statement, Cash and cash equivalent includes the cash and Cheques in hand, bank balances, demand de¬
posits with bank and other short term, highly liquid investments with original maturity 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.
Bank overdraft is shown within borrowings in current liabilities in the balance sheet and forms part of financing activi¬
ties in the cash flow statement. Book overdraft is shown within other financial liabilities in the balance sheet and
forms part of operating activities in the cash flow statement.
XII. Cash Flow Statement
Cash flows are reported using indirect method, whereby profit/ (loss) before tax is adjusted for the effect of transac¬
tions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments and items of in¬
come or expenses associated with investing or financing cash flow. The cash flow from operating, investing and fi¬
nancing activities of the company is segregated based on the available information.
XIII. Earnings per Share
a) Basic earnings per shares is arrived at based on net profit / (loss) after tax available to equity shareholders divided
by Weighted average number of equity shares, adjusted for bonus elements in equity shares issued during the year
(if any) and excluding treasury shares.
b) Diluted earnings per shares is calculated by dividing Profit attributable to equity holders after tax divided by
Weighted average number of shares considered for basic earning per shares including potential dilutive equity
shares.
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