B. Material Accounting Policies:
1. Statement of compliance
The Financial Statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015 as
amended and the other relevant provisions of the Act and Rules thereunder.
These financial statements have been prepared for the Company as a going concern on the basis of relevant Ind AS
that are effective at the Company's annual reporting date, 31st March 2025. The financial statements of the Company
were authorized for issue in accordance with resolution of the Board of Directors on 30th May 2025.
2. Functional and Presentation Currency
The financial statements are presented in Indian Rupees (INR), the currency of the primary economic environment in
which the Company operates. All the amounts are rounded to the nearest rupee Lakhs, unless otherwise indicated.
Transaction and balances with values below INR 50,000 have been reflected as “0.00” in financial statements.
a. Basis of Measurement
The financial statements have been prepared on the historical cost basis (i.e. on accrual basis), except for the
following items:
• Certain financial assets and liabilities (including derivative instruments) are measured at fair value or
amortized cost and
• Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined
benefit obligations
b. Measurement of Fair Value
The Company measures certain financial instruments at fair value at each reporting date.
Certain accounting policies and disclosures require the measurement of fair values, for both financial and non¬
financial assets and liabilities.
Fair value is the price that would be received to sell an asset or paid to settle a liability in an ordinary transaction
between market participants at the measurement date. The fair value of an asset or a liability is measured
using the assumption that market participants would use when pricing an asset or liability acting in their best
economic interest. The Company uses valuation techniques, which are appropriate in circumstances and for
which sufficient data is available considering the expected loss/ profit in case of financial assets or liabilities.
c. Use of estimates and judgements
The preparation of the Ind AS financial statements of the Company in accordance with Indian Accounting
Standards (Ind-AS) requires management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets, liabilities and the accompanying disclosures along with
contingent liabilities at the date of the financial statements. These estimates are based upon management's best
knowledge of current events and actions; however, uncertainty about these assumptions and estimates could
result in outcomes that may require adjustment to the carrying amounts of assets or liabilities in future periods.
Appropriate revisions in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates. Revisions in estimates are recognized prospectively in the financial statements in
the period in which the estimates are revised in any future periods affected.
d. Current versus non-current classification
All the assets and liabilities have been classified as current and non-current as per the normal operating cycle
of the Company and other criteria set out in as per the guidance set out in Schedule III to the Act. Based on the
nature of services, the Company ascertained its operating cycle as 12 months for the purpose of current and
non-current classification of asset and liabilities.
The Company's financial statements are reported in Indian Rupees, which is also the Company's functional
currency, and all values are rounded to the nearest Rupees, except when otherwise indicated.
3.1 Revenue Recognition
Revenue is recognized when it is earned, and no significant uncertainty exists as to its realization and when the
revenue can be reliably measured.
Revenue from sale of goods is recognized when all significant contractual obligations have been satisfied, the property
in the goods is transferred for a price, significant risks and rewards of ownership are transferred to the customers and
no effective ownership is retained.
Revenue from the sale of goods is net-off returns, taxes or duties collected on behalf of the government and applicable
trade discounts and rebates.
Revenue from services rendered is recognized in the profit or loss as the underlying services are performed. Upfront
non-refundable payments received under these arrangements are deferred and recognized as revenue over the
expected period over which the related services are expected to be performed
Interest income is recognized on a time proportion basis considering the amount outstanding and the applicable
interest rate. Interest income is included under the head “other income” in the Statement of Profit and Loss.
Revenue in respect of export sales is recognized on the basis of dispatch of goods for exports. (i.e. on the date of Bill
of Lading).
Dividend is recognized when the right to receive the payment is established, it is probable that the economic benefits
associated with the dividend will flow to the entity and the amount of dividend can be measured reasonably.
Other Income is accounted for on accrual basis, when certainty of receipt is established.
3.2 Inventories
Inventories of Raw Materials, Finished Goods, Semi-Finished Goods, Stores and Spares and Packing Materials,
are valued at cost or net realizable value, whichever is lower. Materials-in-transit are valued at cost-to-date. Cost
comprises of all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their
present location and conditions. Cost is arrived at on FIFO basis. Due allowance is estimated and made for defective
and obsolete items, wherever necessary, based on past experience.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and estimated costs necessary to make the sale.
Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and
where necessary, provision is made for such stocks.
3.3 Property, Plant and Equipment (PPE)
(i) Recognition and Measurement
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment
losses, if any.
The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable
to bringing the asset into the location and condition necessary for it to be capable of operating in the manner
intended by management, the initial estimate of any decommissioning obligation, if any, and, borrowing cost
for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready for their intended
use).
Spare parts which meet the definition of Property, Plant and Equipment are capitalized as Property, Plant and
Equipment. In other cases, the spare part is inventorised on procurement and charged to the Statement of Profit
and Loss on consumption.
An item of property, plant and equipment and any significant part initially recognised separately as part of
property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising from de-recognition of the asset is included in the Statement of
Profit and Loss when the asset is derecognised.
The residual values and useful lives of property, plant and equipment are reviewed at regular intervals and
changes, if any, are accounted for in line with revisions to accounting estimates.
(ii) Subsequent Expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company and the cost of the item can be measured reliably.
(iii) Depreciation
Depreciation on Plant, Property and Equipment has been provided on the Straight - Line basis, over the
estimated useful lives of assets. The Company provides pro-rata depreciation from the date of addition / up to
the date of deletion made during the reporting period.
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for
as separate items (major components) of property, plant and equipment. The cost and related accumulated
depreciation are eliminated from the financial statements upon sale or disposal of the asset and the resultant
gains or losses are recognized in the statement of Profit and Loss.
The useful lives determined are in line with the useful lives as prescribed in the Schedule II of the Act.
3.4 Intangible Assets
(i) Recognition and Measurement
Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
(ii) Subsequent Expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill
and brands, is recognised in profit or loss as incurred
(iii) Amortisation
Intangible assets are amortised on a straight-line basis over the estimated useful life. Amortisation method,
useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate
3.5 Capital Work in Progress
Cost of assets not ready for use at the balance sheet date is disclosed under capital work-in-progress. Expenditure
during the construction period is included under Capital Work in Progress & the same is allocated to the respective
PPE on the completion of its construction.
3.6 Borrowing costs
Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing cost
also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs that are attributable to the acquisition or construction of Qualifying Assets (i.e. an asset that necessarily
takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets.
All other borrowing costs are charged to the Statement of Profit and Loss.
3.7 Non - financial Assets:
As at each Balance Sheet date, the Company assesses whether there is an indication that a non-financial asset may
be impaired and also whether there is an indication of reversal of impairment loss recognised in the previous periods.
If any indication exists, or when annual impairment testing for an asset is required, the Company determines the
recoverable amount and impairment loss is recognised when the carrying amount of an asset exceeds its recoverable
amount.
Recoverable amount is determined:
- In case of an individual asset, at the higher of the assets' fair value less cost to sell and value in use; and
- In the case of cash generating unit (a group of assets that generates identified, independent cash flows), at the
higher of cash generating unit's fair value less cost to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount
rate that reflects current market assessments of the time value of money and risk specified to the asset. In determining
fair value less cost to sell, recent market transactions are considered. If no such transaction can be identified, an
appropriate valuation model is used.
Impairment losses of continuing operations, including impairment of inventories, are recognised in the Statement of
Profit and Loss, except for properties previously revalued with the revaluation taken to OCI. For such properties, the
impairment is recognised in oCi up to the amount of any previous revaluation.
When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are
written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed
through the Statement of Profit and Loss
3.8 Government Subsidy
Grants and subsidies from the Government are recognized if the following conditions are satisfied,
- There is reasonable assurance that the Company will comply with the conditions attached to it.
- Such benefits are earned, and reasonable certainty exists of the collection.
Government grants related to revenue are recognized on a systematic basis in net profit in the statement of Profit and
Loss over the periods necessary to match them with the related costs which they are intended to compensate.
Government grants and subsidies whose primary condition is that the Group should purchase, construct or otherwise
acquire non-current assets are recognised as deferred revenue in the balance sheet which is disclosed as deferred
grant receivable and transferred to the Statement of profit and loss on a systematic basis over the expected useful
life of the related assets. Government grants and subsidies related to the income are deferred which is disclosed as
deferred revenue arising from government grant in the balance sheet and recognized in the statement of profit and
loss as an income in the period in which related obligations are met.
3.9 Income Tax
Income tax comprises of current and deferred income tax. Income tax is recognised as an expense or income in the
Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in OCI.
(i) Current Tax
Current income tax is recognised based on the estimated tax liability computed after taking credit for allowances
and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and liabilities are
measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
(ii) Deferred tax
Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and liabilities are
recognized for all deductible temporary differences between the financial statements' carrying amount of
existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are measured
using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet date. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment
date. Deferred tax assets are only recognized to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised. Such assets are reviewed at each Balance
Sheet date to reassess realization.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset. Current tax assets
and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle
on a net basis, or to realise the asset and settle the liability simultaneously.
(iii) Minimum Alternate Tax
Minimum Alternative Tax (“MAT”) credit is recognised as an asset only when and to the extent it is probable that
the Company will pay normal income tax during the specified period.
3.10 Financial Assets
(i) Initial recognition and measurement
All financial assets (not measured subsequently at fair value through profit or loss) are recognised initially at fair
value plus transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in
the statement of Profit and Loss. Purchases or sales of financial assets that require delivery of assets within a
time frame established by regulation or convention in the marketplace (regular way trades) are recognised on
the trade date, i.e., the date that the Company commits to purchase or sell the asset.
(ii) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(a) Financial Asset at Amortised Cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a
business model with an objective to hold these assets in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Interest income from these financial assets
is included in finance income using the effective interest rate (“EIR”) method. Impairment gains or losses
arising on these assets are recognised in the Statement of Profit and Loss.
(b) Financial Asset Measured at Fair Value
Financial assets are measured at fair value through OCI if these financial assets are held within a business
model with an objective to hold these assets in order to collect contractual cash flows or to sell these
financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding. Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which are recognised in the Statement of Profit and Loss.
Financial asset not measured at amortised cost or at fair value through OCI is carried at FVPL.
(iii) Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies the expected credit loss (“ECL”) model for measurement
and recognition of impairment loss on financial assets and credit risk exposures.
The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables.
The simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, the credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the group in accordance with the contract
and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.
Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of
a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that
are possible within 12 months after the reporting date.
ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in
the Statement of Profit and Loss.
(iv) De-recognition of Financial Assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognizes its retained interest in the assets and an associated
liability for amounts it may have to pay.
If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.
3.11 Financial Liabilities
(i) Initial recognition and measurement
All financial liabilities are recognised initially at fair value net of transaction costs that are attributable to the
respective liabilities.
(ii) Subsequent measurement
Subsequent measurement is determined with reference to the classification of the respective financial liabilities.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial
liabilities at fair value through profit or loss.
(a) Financial Liabilities at fair value through profit or loss (FVTPL)
A financial liability is classified as at fair value through profit or loss if it is classified as held-for-trading or is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes
therein, including any interest expense, are recognised in the Statement of Profit and Loss.
(b) Financial Liabilities measured at amortised cost
After initial recognition, financial liabilities other than those which are classified as fair value through profit or loss
are subsequently measured at amortised cost using the effective interest rate method (“EIR”).
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and Loss.
(iii) Derecognition
Financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.
3.12 Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or
to realise the assets and settle the liabilities simultaneously.
3.13 Employee Benefits
(i) Short-term employee benefit
Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as expenses
at the undiscounted amounts in the Statement of Profit and Loss of the period in which the related service is
rendered. Expenses on non-accumulating compensated absences is recognised in the period in which the
absences occur.
(ii) Long-term employee benefit
Gratuity Obligation:
The Company also provides for gratuity which is a defined benefit plan, the liabilities of which is determined
based on valuations, as at the balance sheet date, made by an independent actuary using the projected unit
credit method. Re-measurement, comprising of actuarial gains and losses, in respect of gratuity are recognised
in the OCI, in the period in which they occur. Re-measurement recognised in OCI are not reclassified to the
Statement of Profit and Loss in subsequent periods. Past service cost is recognised in the Statement of Profit
and Loss in the year of plan amendment or curtailment. The classification of the Company's obligation into
current and non-current is as per the actuarial valuation report.
Defined Contribution Plans
Contributions to defined contribution schemes such as provident fund, employees' state insurance, labour
welfare are charged as an expense based on the amount of contribution required to be made as and when
services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as
the Company has no further obligations beyond monthly contributions.
Leave entitlement and compensated absences
Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term employee
benefit. Leave entitlement, other than short term compensated absences, are provided based on a actuarial
valuation, similar to that of gratuity benefit. Re-measurement, comprising of actuarial gains and losses, in
respect of leave entitlement are recognised in the Statement of Profit and Loss in the period in which they occur.
3.14 Foreign Exchange Translation and Accounting of Foreign Exchange Transaction
a) Initial Recognition
Foreign currency transactions are initially recorded in the reporting currency, by applying to the foreign currency
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
However, for practical reasons, the Company uses a monthly average rate if the average rate approximates the
actual rate at the date of the transactions.
b) Conversion
Monetary assets and liabilities denominated in foreign currencies are reported using the closing rate at the
reporting date. Non-monetary items which are carried in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the date of the transaction.
c) Treatment of Exchange Difference
Exchange differences arising on settlement/ restatement of short-term foreign currency monetary assets and
liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss except those
arising from investment in non-integral operations.
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