MATERIALACCOUNTING POLICIES:
STATEMENTOF COMPLIANCE
This note provides a list of the material accounting policies adopted in the preparation of these Indian Accounting Standards
(Ind-AS) financial statements. These policies have been consistently applied to all the years except where newly issued
accounting standard is initially adopted.
Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31
March, 2025, the Statement of Profit and Loss for the year ended 31 March 2025, the Statement of Cash Flows for the year ended
31 March 2025 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' or 'financial statements').
AUTHORISATION OF STANDALONE FINANCIAL STATEMENTS:
These standalone financial statements are approved for issue by the Board of Directors on 28 May 2025.
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
A. Statement of Compliance
1. The Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
notified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards)
Rule 2015 (as amended from time to time) and other relevant provisions of the Act.
2. Historical Cost Convention
The Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:
i) Certain Financial assets and liabilities that is measured atfair value
ii) Defined benefit plans-plan assets measured atfairvalue
B. Current vs. Non-Current classification:
The Company presents assets and liabilities in the balance sheet based on current/non- current classification.
(a) Anassetistreatedascurrentwhen it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle
- Held primarilyfor purpose of trading
- Expected to be realized within twelve months after the reporting period.
- the cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months afterthe reporting period.
All other assets are classified as non-current.
(b) Aliabilityiscurrentwhen:
- It is expected to be settled in normal operating cycle
- It is held primarilyfor purpose of trading
- It is due to be settled within twelve months afterthe reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months afterthe reporting
period.
All other liabilities are classified as non-current.
Deferred tax assets and deferred tax liabilities are classified as non- current on net basis.
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 general operating cycle.
The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the company's functional
currency. All financial information presented in INR has been rounded off to the nearest lakh unless otherwise stated.
C. Use of Estimates:
The preparation of Financial statements in conformity with Indian Accounting Standards (Ind AS) in India requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosures of contingent liabilities on the date of Financial statements and reported amounts of income and expenses
during the period. Differences between actual results and estimates are recognised in the year in which the results are known
ormaterialise.
This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information
about each of these estimates and judgments is included in relevant notes together with information about the basis of
calculation.
The areas involving critical estimates or judgments include:
FairValue of unlisted equity securities
Defined BenefitObligation
Measurement of contingent liabilities
Currenttaxexpense and currenttaxpayable
Deferred tax assets for carried forward tax losses
2. PROPERTY, PLANT AND EQUIPMENT(PPE)
(i) Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses,
if any.
(ii) The initial cost of an asset comprises its purchase price (including import duties and non-refundable taxes, if any), any
costs directly attributable to bringing the asset into the location and condition necessary for itto be capable of operating
in the manner intended by the management, borrowing cost for qualifying assets (i.e. assets that necessarily take a
substantial period of time to get ready for their intended use).
(iii) Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.
(iv) An item of Property, plant and equipment and any significant part initially recognised separately as part of Property,
plantand equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the assets is included in the Statement of Profit and Loss.
(v) The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
Financial yearend and adjusted prospectively, if appropriate.
(vi) Depreciation on property, plant and equipment is provided on straight-line method using the useful lives of the assets
estimated by the management and in the manner prescribed in Schedule II to the Companies Act 2013. The asset wise
details of useful lives considered for purposes of calculating depreciation are as under:
Office Building - 30years Vehicles - 8years
Furniture - 10years Computers - 6years
Office equipment - 5 years Computer Software - 2 years
(vii) An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greaterthan its estimated recoverable amount.
3. INTANGIBLEASSETS
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and
accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each reporting year, with the effect of any changes
in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired
separately are carried at cost less accumulated impairment losses.
4. IMPAIRMENT
At the end of each reporting year, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication thatthose assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the assetfor which the estimates of future cashflows have not been adjusted.
Goodwill and intangible assets that do not have definite useful life are not amortised and are tested at least annually for
impairment. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment once
again.
5. INVESTMENT PROPERTY
Investment Property is property (land or a building - or part of a building - or both) held either to earn rental income or for
capital appreciation or both, but not for sale in the ordinary course of business, used in production or supply of goods or
services or for administrative purposes. Investment Properties are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any.
Any gain or loss on disposal of investment property calculated as the difference between the net proceeds from disposal
and carrying amount ofthe Investment Property shall be recognized in Statement of Profitand Loss.
Depreciation on Investment Property is provided on straight-line method using the useful lives ofthe assets estimated by
management and in the manner prescribed in Schedule II ofthe Companies Act 2013. The useful life considered in respect
of Building is 60 years and amortization of long term leasehold property classified as Investment Property is based on the
balance lease term.
6. LEASEACCOUNTING:
LEASE CONTRACTS WHERE THE COMPANY IS ALESSEE
(i) All the lease agreements ofthe Company, where the company is a Lessee are in the nature of shortterm leases or are low
value leases and are in respect of premises used as staff residences, business premises orGodowns.
(ii) The company has therefore elected to avail the exemption from paras 22-49 of Ind-AS 116 and accounted for the lease
payments as per para 6 ofthe said Ind-AS. Accordingly the entire lease payments associated with these leases have
been recognised as an expense on a straight-line basis over the lease term or another systematic basis.
LEASE CONTRACTS WHERE THE COMPANY IS A LESSOR
(i) All lease agreements where the Company is a Lessor are in the nature of'operating leases'.
(ii) All the lease income from operating leases are recognized in the statement of Profit and loss account on a systematic
basis.
(iii) The costs, including depreciation, incurred in earning the lease income have been recognized as expenses under the
respective expense heads in the Statement of Profitand Loss.
7. INVENTORIES:
StockinTrade-Traded Goods
Stock in Trade consists of goods traded by the company.
(i) Basis of Valuation: Inventories are stated at lower of cost and net realizable value. The comparison of cost and net
realizable value is made on an item-to-item basis.
(ii) Method of Valuation- Cost of inventories comprises of expenditure incurred in the normal course of business in bringing
inventories to their present location including appropriate overheads apportioned on a reasonable and consistent
basis.
StockinTrade- Real Estate
It comprises cost of land, rates & taxes, overheads and expenses incidental to the land development, if any undertaken by
the Company.
8. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES:
A Subsidiary is an entity that is controlled by another entity. An investor controls an investee if and only if the investor has the
following; (i) Power over the investee, (ii) exposure, or rights, to variable returns from its involvement with the investee and (iii)
the ability to use its power over the investee to affect the amount of the investor's returns.
An Associate is an entity over which the Company has significant influence. Significant influence is the power to participate in
thefinancial and operating policy decisions ofthe investee, but is not control orjoint control overthose policies.
The Company's investments in its Subsidiaries and Associate are accounted at cost.
9. TRANSACTIONS IN FOREIGN CURRENCY:
a) Functional and presentation currency
The Company's financial statements are prepared in INR, which is also the Company's functional and presentation
currency.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally
recognised in the Statement of Profitand Loss.
In case of advance payment for purchase of assets/goods/services and advance receipt against sales of products/
services, all such purchase/salestransaction are recorded atthe rate atwhich such advances are paid/received.
Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement of Profit
and Loss, within finance costs. All other foreign exchange gains and losses are presented in the Statement of Profitand
Loss on a net basis within other gains/(losses).
Non-monetary items:
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates atthe dates of the initial transactions.
10. REVENUE RECOGNITION:
The Company derives revenues primarily from sale of products and services. Revenue from sale of goods is recognised net
of returns and discounts.
Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the
consideration the Company expect to receive in exchange for those products or services.
To recognise revenues, the Company applies the following five step approach:
1) Identify the contractwith a customer;
2) Identifythe performance obligations inthe contract;
3) Determinethetransaction price;
4) Allocate the transaction pricetothe performance obligations inthe contract; and
5) Recognize revenues when a performance obligation issatisfied.
Based on above principle
• Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The
amount recognised as sale is exclusive of GST and are net of returns.
• Dividend income is recognised when the rightto receive payment is established.
• Interest Income is recognized on time proportion basis taking into account the amount outstanding and the applicable
interest rates and isdisclosed in "other income".
• Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the
lease terms and is included in other operating income in the statement of profit or loss due to its operating nature.
11. EMPLOYEE RETIREMENT BENEFITS:
Shortterm employee benefits
All employee benefits payable/available within twelve months of rendering the services are classified as short term
employee benefits. Benefits such as salaries, wages and bonus, etc., are recognized inthe Statement of profitand Loss inthe
period in which the employee rendersthe related service.
Provident fund
Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employees and the
Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered
employees'salary. The Company contributes a part of the contributions to the Government administered Provident/Pension
Fund. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes
contribution payable through the provident fund scheme as an expense, when an employee renders related services.
Other long term employee benefits
The company has subscribed to a Group Gratuity Accumulation Policy from the Life Insurance Corporation of India, which is a
defined benefit plan. The liabilities with respect to Gratuity Plan are determined by actuarial valuation by LIC. The annual
premium, as determined, based on such valuation, is paid and charged to the Statement of Profit & Loss Account. The fund
value of the accumulated contribution by the Company, which represents the 'Plan Assets' is Rs.102.31 Lakhs which the
adequately covers the estimated Gratuity Liability
The valuation method used by the LIC is Projected Unit credit method. Other acturial assumptions for the policy are as
under:-
1. Mortality Rate: LIC(2006-08) Ultimate
2. Withdrawal Rate: 1%to3%depending on age
3. Discount Rate: 7.25% p.a.
4. Salary Escalation: 8%
12. FINANCIAL INSTRUMENTS:
Financial assets and financial liabilities are recognised when a Company becomes a partytothe contractual provisions ofthe
instruments.
Initial Recognition and Measurement- Financial Assetsand Financial Liabilities
Financial assetsand financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value ofthe financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit
and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through Other
Comprehensive I ncome("FVTOCI") or fair value through profit or loss ("FVTPL") on the basis of following:
- the entity's business model for managing the financial assetsand
- the contractual cash flow characteristics of the financial asset.
Amortised Cost
Afinancial asset is classified and measured at amortised cost if both of the following conditions are met:
- the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cashflows; and
- the contractual terms ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal
and interestonthe principal amount outstanding.
FVTOCI
Afinancial asset is classified and measured at FVTOCI if both ofthe following conditions are met:
- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets; and
- the contractual terms ofthe financial asset give rise on specified dates to cash flows that are solely payments of principal
and interestonthe principal amount outstanding.
FVTPL
Afinancial asset is classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI. All recognised
financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
classification ofthefinancial assets.
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised
cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime lossesto be recognised from initial recognition ofthe receivables.
Classification and Subsequent measurement:
Financial Liabilities The Company's financial liabilities include trade and other payables, loans and borrowings including
bank overdrafts,financial guarantee contracts and derivative financial instruments.
Financial Liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial
recognition as FVTPL.
Gains or losses on financial liabilities held for trading are recognised in the Statement of Profit and Loss.
Other Financial Liabilities
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost
using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to
the net carrying amounton initial recognition.
Derecognition of Financial Assets and Financial Liabilities
The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the
risks and rewards of ownership and does not retain control of the financial asset. If the Company enters into transactions
whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of
the transferred assets, the transferred assetsare notderecognised.
Afinancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Offsettingfinancial instruments
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.
13. TAXES ON INCOME:
Current Tax
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in
accordance with the provisions of the relevanttaxlaws and based on the expected outcome of assessments/ appeals.
Current income tax relating to items recognised directly in equity is recognised in equity and not in the Statement of Profit
and Loss.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subjectto interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the Balance Sheet approach on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amountsforfinancial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carryforward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, carry forward of unused tax credits and unused tax losses can be
utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
probable thatfuture taxable profits will allowthe deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of
Profit Corporate overview statutory reports Financial Statements and Loss. Deferred tax items are recognised in correlation
to the underlying transaction either in Other Comprehensive Income or directly in equity.
The break-up of the major components of the deferred tax assets and liabilities as at Balance Sheet date has been arrived at
after setting off deferred tax assets and liabilities where the Company have a legally enforceable right to set-off assets
against liabilities and where such assets and liabilities relate to taxes on income levied by the same governing taxation laws.
MAT Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time,
hence it is grouped with Deferred Tax Asset.
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