2 Statement of Significant Accounting Policies
a Basis of preparation of Financial Statements
The accounts have been prepared in accordance with the provisions of Companies Act 2013 and Indian Accounting
Standards (Ind AS) and Disclosures thereon comply with requirements of Ind AS, stipulations contained in Schedule-
III (revised) as applicable under Section 133 of the Companies Act, 2013 read with, Companies (Indian Accounting
Standards) Rules 2015 as amended from time to time, MSMED Act, 2006, other pronouncement of ICAI, provisions
of the Companies Act and Rules and guidelines issued by SEBI as applicable.
All assets and liabilities have been classified as current or no-current as per the company’s normal operating cycle.
Based on the nature of business and the time between the acquisition of assets and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as12 months for the purpose of current and non-current
classification of assets and liabilities.
The company is a Small and Medium sized company (SMC) as defined in the General Instructions in respect of
Accounting Standards notified under the Companies Act. Accordingly, the company has complied with the
Accounting Standards as applicable to a Small and Medium Sized Company.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
Use of Estimates:
No use of estimates
Statement of Compliance:
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of
the Companies Act, 2013 (“the Companies Act”), as applicable . The Ind AS are prescribed under Section 133 of the
Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian
Accounting Standards) Amendment Rules, 2016.
The financial statements have been approved by the Board of Directors of the Company at their meeting held on
30th May 2025.
Functional and Presentation Currency:
The financial statements are presented in Indian Rupees, which is the functional currency of the Company.
b Property Plant & Equipment and Intangible Assets
i) Property Plant & Equipment are stated at original cost of acquisition and includes insurance, freight, Finance
Charge and installation expenses.
ii) The costs of leasehold land shown in the balance sheet represent the consideration paid to RIICO at the time of
transfer in favour of the Company.
iii) Intangible assets are carried at cost less accumulated amortization and impairment losses, if any.
c Depreciation
The Company depreciates property, plant and equipment over the estimated useful life on a written down value basis
from the date the assets are available for use. The estimated useful life of assets are reviewed and where appropriate
are adjusted, annually.
Lease hold land is not depreciable.
The amortization of an intangible asset has been made as per stright line method with a finite useful life reflects the
manner in which the economic benefit is expected to be generated.
d Impairment of Property Plant & Equipment and Intangible Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value, an impairement loss is
charged to the statement of profit and loss in the year in which asset is identidied as impaired. The impairement loss
recognised in prior accounting period is reversed if there has been change in the estimate of recoverable amount. No
impairment Profit or Loss has been identified during the year.
e Investments
Investments are stated at cost.
f Valuation of Inventories
Raw materials are carried at cost. However, raw materials are considered to be realizable at replacement cost if the
finished goods, in which they will be sold, are expected to be sold below cost. Cost includes purchase price
(excluding those subsequently recoverable by the enterprise from the concerned revenue authorities and GST),
freight inwards and other expenditure incurred in bringing such inventories to their present location and condition. In
determining the cost, standard cost method is used which approximates to the actual cost.
Finished goods are valued at the lower of cost and net realizable value. Cost of work in progress and manufactured
finished goods comprises of direct material, cost of conversion and other costs incurred in bringing these inventories
to their present location and condition. Net realizable value is estimated selling price in the ordinary course of
business, less estimated cost of completion necessary to make sale. The comparison of cost and net realizable value
is made on an item by item basis.
g Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, bank balances in saving/current accounts and deposits.
h Foreign currency transactions
Transactions in the foreign exchange are recorded at prevailing rate on/or near to the date of transaction. All
exchange gains and losses are accounted for in the Profit and Loss Account under respective heads. Balances
outstanding as on 31 st March, 2024 are recorded at foreign currency rate as on that date
i Revenue recognition
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer,
usually on delivery of the goods.
j Operating Leases:
Lease arrangements where the risk and rewards incident to ownership of an asset substantially vest with the lessor
are recognized as operating lease. Lease rent under operating leases are charged to the profit and loss account on a
straight-line basis over the lease term.
k Finance Leases:
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as
finance leases. The lower of fair value of asset and present value of minimum lease rentals is capitalized as fixed
assets with corresponding amount shown as lease liability. The principal component in the lease rentals is adjusted
against the lease liability and interest component is charged to profit & loss account. There is no financial lease
transaction during the current financial year. The Company has no Finance Lease.
l Segment Reporting Policies
The Company prepares its segment information. Turnover details as given under notes to accounts.
m Retirement and other employee benefits
Retirement benefits in the form of Provident Fund are defined contribution schemes and the contributions are
charged to the Profit and Loss Account of the year when the contribution to the fund is due. There are no other
obligations other than the contribution payable to that fund.
The short-term employee benefits such as salaries, wages and bonus etc., are accounted for on accrual basis. The
Company has got Acturial valuation during the year and as made provision for Gratuity as per valuation Reoprt in
compliance with the Ind AS 19 “Employee Benefits”,
n Borrowing cost
Borrowing costs that are attributable to the acquisition or construction of any Qualifying Asset are capitalized as part
of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for
intended use. All other borrowing costs are charged to revenue. Interest on borrowings is recognized on a tie
proportion basis taking into account the amount outstanding and the rate applicable on the borrowings. However
there no such case during the year.
o T axes on Income
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid
to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflect the impact of
current year timing differences between taxable income and accounting income for the year and reversal of timing
differences of earlier years.
p Contingenices and events occuring after Balance Sheet Date
Accounting for contingencies (gains or losses) arising out of contractual obligations are made on the basis of mutual
acceptance. Events occurring after the date of Balance Sheet are considered up to the date of finalization of
accounts, wherever material.
q Earning Per share
Basic Earning Per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating Diluted Earning Per Share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
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