1.1 Corporate information
The Financial Statements of "Magnus Steel & Infra Limited"("the Company")( Formerly know as Magnus Retail Limited) are
for the year ended March 31,2025.
Magnus Steel & Infra Limited (The Company) ( Formerly know as Magnus Retail Limited) is a public limited company
incorporated under the provisions of the companies Act applicable in India. The registered office of the company is located at
Unit no 365, Shirshagaon, Niphad , Nashik - 422001.
The Company is providing service activities in Information Technology related fields, with special focus on Computer
hardware, software, Business process outsourcing, draining in Information Technology related fields, Academic Training, etc.
However the company has closed down its operations and there is no operational reveneue during the financial year.
1.2 Basis of preparation and presentation:
These Financial Statements have been prepared in accordance with Indian Accounting Standards (Tnd AS) under the
historical cost convention on the accrual basis except for
(i) Certain financial assets and liabilities measured at fair value,
The Financial Statements of the Company have been prepared in accordance with applicable Indian Accounting Standards
(‘Ind-AS’) Prescribed under section 133 of Comapnies Act,2013 ("Act") read with the Companies (Indian Accounting
Standards) Rules and other relevant provisions of the Act and and Rules thereunder,as amended from time to time.
The Standalone Fianacial Statements arc Presented in indian Rupees(Rs.) which is company's presentation and functional
currency
1.3 Standard issued effective from current period:
(i) Ind AS 115, Revenue from Contract with Customer
According to the standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or sendees. Ind-
AS 115 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited
exceptions), regardless of the type of revenue transaction or the industry1. Extensive disclosures will be required, including
disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account
balances between periods and key judgments and estimates. The standard permits the use of either the retrospective or
cumulative effect transition method. The Company is currently assessing the impact of adopting Ind-AS 115 on the financial
statements.
(ii) Amendments to Ind-AS 40, 'Investment Property', Ind-AS 21, 'The effects of changes in Foreign Exchange Rates', Ind-
AS 12, 'Income Faxes', Ind-AS 28 'Investments in Associates and Joint Ventures',Ind-AS 112 'Disclosure oflnterest in Other
Entities' and Ind AS 109 -I ledge Accounting are does not apply to Company'.
1.4 Current and non-current classification:
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
(i) expected to be realised or intended to be sold or consumed in normal operating cycle,
(ii) held primarily for the purpose of trading,
(iii) expected to be realised within twelve months after the reporting period,
(iv) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the reporting period, or
(v) carrying current portion of non current financial assets.
All other assets arc classified as non-current.
A liability is current when:
(i) it is expected to be settled in normal operating cycle ;
(ii) it is held primarily for the purpose of trading;
(iii) it is due to be settled within twelve months after the reporting period,
(iv) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period,
or
(v) It includes current portion of non current financial liabilities.
All other liabilities are classified as non-current.
1.5 Operating cycle
All assets and liabilities have been classified as current and non-current as per the company’s normal operating cycle and
other criteria set out above which are in accordance with the schedule III to the Act. Based on the nature of services and time
between the acquisition of assets for providing of sendees and their realisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
1.6 Property Plant and Equipment:
Property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure
that is directly attributable to the acquisition of the items,
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they
are incurred.
Depreciation is provided under the "written down value" method at the cates and in the manner prescribed in Part C of
Schedule II to the Companies Act, 2013, over their useful life., and management believe that useful life of assets are same as
those prescribed in Part C of Schedule II to the Act.
Useful life considered for calculation of depreciation for various assets class are as follows-
Asset Class Useful Life
Furniture and Fixtures 10 years
Office Equipment 5 years
Computers 3 years
The Property, plant and equipment residual values, useful lives and method of depreication are reviewed, and adjusted if
appropriate, at the end of each reporting period.
Gains and losses arising from dereognition of a property, plant and equipment are measured as the difference between the net
disposal proceeds and the carrying amount of the assets and arc recognised in the Statement of Profit and Loss, when the
asset is derecognised.
An property, plant and equipment carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
1.7 Investments and other financial assets:
Initial recognition
In the case of financial assets, not recorded at fair value through profit or loss (FVPL), financial assets are recognised initially
at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Purchases or sales of
financial assets that require delivery of assets within a time frame established by regulation or convention in the market place
(regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories
(a) Financial Assets 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 Assets measured at fair value
Financial assets are measured at fair value through other comprehensive income (FVOCI) 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 arc 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.
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. Simplified
approach does not requite the Company to 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 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, 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 Company 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 recorded as expense/ income in the Statement
of Profit and Loss.
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.
Equity investments
All equity investments in the scope of Ind AS 109, Financial Instruments, are measured at fair value. For equity instruments,
the Company may make an irrevocable election to present the subsequent fair value changes in Other Comprehensive Income
(OCI). The Company makes sucli election on an instrument-by-instrument basis. The classification is made on initial
recognition and is irrevocable.
There is no recycling of the amounts from OCI to profit or loss, even on sale of investment.
Equity instruments included within the FVTPL (fair value through profit and loss) category are measured at fait value with all
changes in fair value recognized in the profit or loss.
1.8 Financial Liabilities
Initial Recognition
Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, loans and borrowings and payables as
appropriate, All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
Subsequent measurement
Financial liabilities at FVPL
Financial liabilities at FVPL include financial liabilities held for trading and financial liabilities designated upon initial
recognition as FVPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing
in the near term. Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.
Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is
recognised over the term of the borrowings in the Statement of Profit and Loss.
Amortised cost is calculated by taking into account 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.
Where the terms of a financial liability is re-negotiated and the Company issues equity instruments to a creditor to extinguish
all or part of the liability (debt for equity swap), a gain or loss is recognised in the Statement of Profit and Loss; measured as a
difference between the carrying amount of the financial liability and the fair value of equity instrument issued.
De-recognition of Financial Liabilities
financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. 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 de-recognition of the original
liability and recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of
Profit and Loss.
Offsetting 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, to realise the assets
and settle the liabilities simultaneously.
1.10 Fair value measurement
The Company measures financial assets and financial liability at fair value at each balance sheet date.
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. The fair value measurement is based on the 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 the absence of a principal market, in the 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 assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and 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, maximising the use of relevant observable inputs and minimising 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:
- J .evel 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. For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
[he Company’s Valuation team determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement
1.11 Impairment of non-financial assets
Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a non-financial asset may be
impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash
generating unit. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit is made
Assets whose carrying value exceeds their recoverable amount are written down to their recoverable amount. Recoverable
amount is higher of an asset’s or cash generating unit’s net selling price and its value in use, Value in use is the present value
of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its
useful life* A previously recognised impairment loss is increased or reversed depending on changes in circumstances.
However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging
usual depreciation if there was no impairment.
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