For all periods up to and including the year ended 31 march 2025, the company
prepared its financial statements in accordance with Indian accounting standards
as defined in Rule 2(1)(a) of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendment rules issued thereafter, prescribed under section133
of the companies Act 2013 (Ind AS)
2.1.2Use of Estimates
IND AS enjoins management to make estimates and assumptions related to
financial statements that affect reported amount of assets, liabilities, revenue,
expenses and contingent liabilities pertaining to the year. Actual result may differ
from such estimates. Any revision in accounting estimates is recognized
prospectively in the period of change and material revision, including its impact
on financial statements, is reported in the notes to accounts in the year of
incorporation of revision
2.1.3 Basis of measurement
The Financial statements are prepared on Historical Cost basis except financial
assets and liabilities that are measured at fair value (Refer accounting policy
regarding Financial Instruments). The accounting policies not specifically
referred to otherwise, are consistent and in consonance with generally accepted
accounting principles. All income and expenditure and being accounted for on
accrual basis.
Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services.
Fair value is the price that would be received to sell assets or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date.
These financial statements are presented in Indian Rupees (INR), which is the
Company’s functional currency.
2.1.5Significant accounting judgements, estimates and assumptions
The preparation of the Company’s financial statement requires management to
make judgements, estimates and assumptions that affect the reported amount of
revenues, expenses, assets and liabilities and the related disclosure and the
disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.
2.2Revenue Recognition
> Revenue is recognised to the extent that it is probable that the economic benefits
with flow to the company and the revenue can be reliably measured, regardless of
when the payment is being made. Amount of sales are net of goods and services tax,
sale return, trade allowance and discounts.
Effective 01 April, 2018, the company adopted Ind AS 115 “Revenue from
Contracts with customers” using the modified retrospective method. Under the
modified retrospective method, an entity applies Ind AS 115 only for contracts that
are not completed before 31 March 2018.
To determine whether to recognize revenue, the company follows a 5 step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligation
5. Recognising revenue when as performance obligations are satisfied
Revenue is recognised either at a point in time or over time, when (or as) the
company satisfied performance obligations by transferring the promised goods or
services to its customers
> Interest Income from a financial asset is recognized when it is probable that the
economic benefits will flow to the company and amount of income can be measured
reliably. Interest is accrued on time proportion basis, by reference to the principle
outstanding at the effective interest rate.
> Income from Dividend on Investments is accrued in the year in which it is declared,
whereby the company’s right to receive it established.
> Other incomes have been recognized on accrual basis in financial statements when
no significant uncertainty exists on their receipts.
2.3Property, Plants and Equipments
These tangible assets are held for use in production, supply of goods or services or for administrative
purposes. These are recognized and carried under cost model i.e. cost less accumulated depreciation and
impairment loss, if any which is akin to recognition criteria under erstwhile GAAP.
> Cost includes freight, duties, taxes and other expenses directly incidental to acquisition,
bringing the asset to the location and installation including site restoration up to the time
when the asset is ready for intended use. Such Costs also include Borrowing Cost if the
recognition criteria are met.
> Depreciation has been provided on Written Downvalue method in terms of expected life
span of assets as referred to in Schedule II of the Companies Act, 2013. In the following
category of property plant and equipment, the depreciation has been provided on the
technical evaluation of the useful life which is different from the one specified in Schedule
II to the Companies Act, 2013.
Buildings - 3 to 60 years
Plant and Machinery - 3 to 15 years
Furniture and Fixtures - 5 to 10 years
Office Equipment - 5 to 10 years
Vehicles - 5 to 8 years
The residual value and useful life is reviewed annually and any deviation is accounted for as
a change in estimate.
> During sales of fixed assets any profit earned / loss sustained towards excess / shortfall of
sale value vis-a-vis carrying cost of assets is accounted for in statement of profit &loss.
2.4Intangible Assets
Intangible assets are recognized only when the further economic benefits arising out of the assets flow to the
enterprise and are amortized over their useful life ranging from 3to 5 years. Intangible asset acquired
separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally
generated intangible assets, excluding capitalized development cost, are not capitalized and are charged to
statement of profit and loss for the year during which such expenditure is incurred.
2.5 Financial Instruments
I. Financial Assets
Initial Recognition and Measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition
of the financial asset.
Financial assets are classified, at initial recognition, as financial assets measured at fair value or as
financial assets measured at amortized cost
Subsequent Measurement
For purpose of subsequent measurement financial assets are classified in two broad categories:-
• Financial Assets at fair value
• Financial assets at amortized cost
Where assets are measured at fair value, gains and losses are either recognized entirely in the
statement of profit and loss , or recognized in other comprehensive income.
All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For all other equity instruments, the Company
decides to classify the same either as at FVTOCI or FVTPL.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the
amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the
cumulative gain or loss within equity.
Investment in associates, joint venture and subsidiaries
The company has accounted for its investment in subsidiaries, associates and joint venture at cost.
Impairment of financial assets
The company assesses impairment based on expected credit losses (ECL) model at an amount equal
to:-
• 12 months expected credit losses, or
• Lifetime expected credit losses
Depending upon whether there has been a significant increase in credit risk since initial recognition.
However, for trade receivables, the company does not track the changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. Companies policy may differ in each case of trade receivables.
II. Financial Liabilities
All financial liabilities are initially recognized at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
Financial liabilities are classified as measured at amortized cost or fair value through profit and loss
(FVTPL). A financial liability is classified as FVTPL if it is classified as held for trading. Financial
Liabilities at FVTPL are measured at fair value and net gain or losses, including any interest
expense, are recognised in statement of profit and loss. Other financial liabilities are subsequently
measured at amortized cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognised in statement of profit and Loss
2.6Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transactionbetween market participants at the measurement date. The fair value measurement
is based on 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 absence of a principal market , in 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 assumption that market participants would
use when pricing the assets or liability, assuming that market participants act in their best economic
interest fair value measurement of a non- financial asset takes in to account a market participant’s ability
to generate economic benefits by using the assets in its highest and in its 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, maximizing the use of relevant observable inputs and
minimizing 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
2.7Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk
of changes in value.
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