Note: 2 Significant accounting policies
2.1 Statement of compliance
The Company’s financial statements have been prepared in accordance with the Companies Act, 2013, and the Indian Accounting Standards ("Ind AS") as notified under
the Companies (Indian Accounting Standards) Rules, 2015, including amendments issued by the Ministry of Corporate Affairs under Section 133 of the Companies Act,
2013. Additionally, guidance notes and announcements issued by the Institute of Chartered Accountants of India (ICAI) have been applied, except in cases where
compliance with other statutory requirements mandates a different treatment.
2.2 Basis of preparation and presentation
The Company has prepared its financial statements in accordance with Ind AS. The Company has applied consistent accounting policies throughout the periods presented,
with disclosures regarding any significant changes due to the restatement. The standalone financial statements have been prepared on accrual basis under the historical
cost convention. 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 an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Amounts are presented in lakhs and
rounded off to two decimal places, with the functional currency being Indian Rupees.
2.3 Use of Estimates, Judgments, and Errors
The preparation of the financial statements in accordance with Ind AS requires management to make estimates, judgments and assumptions that affect the reported
amounts of assets, liabilities, income and expenses, as well as the disclosures of contingent liabilities. Differences between actual results and estimates are recognised in
the period in which the results are known/materialized. During the year the Accouning Estimate for Depreciation have been changed from Straight Line Method to Written
Down Value Method.
2.4 Revenue Recognition
Interest & Dividend income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount
of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset of that asset’s net carrying amount on initial recognition. No
Dividend income is earned by the Company.
2.5 Property, Plant and Equipment
All items of Property, Plant and Equipment, including freehold land, are initially recorded at cost. Subsequent to initial recognition, Property, Plant and Equipment other
than freehold land are measured at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is
not depreciated. The carrying values of Property, Plant and Equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable.
Subsequent expenditure on major maintenance or repairs includes the cost of the replacement of parts of assets and overhaul costs. Where an asset or part of an asset is
replaced and it is probable that future economic benefits associated with the item will be available to the company, the expenditure is capitalised and the carrying amount
of the item replaced is derecognised. All other costs are charged to profit and loss during the reporting period in which they are incurred. Depreciation is charged to write
off the cost or value of assets, over their estimated useful lives. Depreciation is recorded using the straight-line basis.
Depreciation on tangible assets is provided in accordance with IND AS 16 'Property, Plant and Equipment' with useful life as prescribed in Schedule III of the Companies
Act, 2013 as below:
2.6 Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated
as an exceptional item and disclosed as such in the financial statements.
There is no Exceptional items
2.7 Employee Benefits
a) Short-term employee benefits:
Employee benefits such as salaries, wages, short-term compensated absences, bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months
of rendering the service are classified as short-term employee benefits and are expensed in the period in which the employee renders the service.
b) Post-employment benefits:
i) Defined contribution plans: The Company’s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee
pension scheme are defined contribution plans. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the
service.
ii) Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the
Company, the post-retirement medical care plan and the company pension plan represent defined benefit plans. The present value of the obligation under defined benefit
plans is determined based on actuarial valuation using the Projected Unit Credit Method.
The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on
government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset)
and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to
be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee
benefits expense. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance costs. Gains or losses on
settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or
curtailment and when the Company recognises related restructuring costs or termination benefits.
In case of funded plans, the fairvalue of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis. The
company has not created any defined benefit plan asset. Thus, on the balance sheet date only defined benefit obligation exists.
c) Other long-term employee benefits:
The obligation recognised in respect of other long-term benefits is measured at present value of estimated future cash flows expected to be made by the Company and is
recognised in a similar manner as in the case of defined benefit plans vide (ii)(B) above.
Long-term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements, re-measurements including actuarial gains and
losses are recognised in the Statement of Profit and Loss as employee benefits expenses. Interest cost implicit in long-term employee benefit cost is recognised in the
Statement of Profit and Loss under finance costs.
d) Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company’s offer of the termination benefit can no
longer be withdrawn or when the Company recognises the related restructuring costs whichever is earlier.
2.8 Inventories
Inventories are valued at the lower of cost on the basis of moving weighted average price or net realizable value. The cost of inventories includes all cost of purchases,
cost of conversion and other related cost incurred to bring the inventories to its present location and condition. Goods and materials in transit are valued at actual cost
incurred upto the date of Balance Sheet.
2.9 Cash and bank balances
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less short-term
cash credits accounts (Overdraft accounts) and receivables in cash viz. swipping card receivable, that are readily convertible to a known amount of cash and subject to an
insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
2.10 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of those assets. A qualifying asset is
defined as one that requires a substantial amount of time to prepare for its intended use. Interest income earned from the temporary investment of specific borrowings
while awaiting expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are charged to the Statement of
Profit and Loss in the period they are incurred.
2.11 Taxes on income
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961
and using estimates and judgments based on the expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and disallowances.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial statements and the corresponding
tax bases used in computation of taxable profit and quantified using the tax rates as per laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. 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 recovered.
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.
2.12 Segment reporting
The Company's operations are considered as a single business segment for the purpose of internal reporting to the Chief Operating Decision Maker (CODM). As such,
there are no distinct reportable segments identified in accordance with Ind AS 108, "Operating Segments."
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