I. Basis of Preparation :
The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) as prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting
Standards) Rules, 2015, provisions of the Companies Act, 2013, to the extent notified and pronouncements
of the Institute of Chartered Accountants of India..
Disclosures under Ind AS are made only in respect of material items and in respect of the items that
will be useful to the users of financial statements in making economic decisions.
The financial statements for the year ended 31st March, 2025 (including comparatives) are duly adopted by
the Board on 15thMay, 2025 for consideration and approval by shareholders.
II. Summary of Accounting Policies :
1) Overall Considerations
The financial statements have been prepared applying the significant accounting policies and
measurement basis summarized below.
2) Revenue Recognition
Revenue is measured at fair value of the consideration received or receivable and net of returns, trade
allowances and rebates and amounts collected on behalf of third parties. It excludes Excise Duty and GST.
i. Sale of Products:
Revenue from sale of products is recognized when significant risks and rewards of ownership pass to the
customers, as per the terms of the contract and when the economic benefits associated with the
transactions will flow to the Company.
ii. Interest Income:
Interest incomes are recognized using the time proportion method based on the rates implicit in the
transaction. Interest income is included in other income in the statement of profit and loss.
3) Property, Plant and Equipment
i. Freehold Land is stated at historical cost. All other items of Property, Plant and Equipment are stated
at cost of acquisition/construction less accumulated depreciation/amortization and impairment, if any.
Cost includes:
a. Purchase Price
b. Labour Cost and
c. Directly attributable overheads incurred up to the date the asset is ready for its intended use. However,
cost excludes Excise Duty, Value Added Tax, Service Tax, and GST to the extent credit of the duty or
tax is availed of.Subsequent costs are included in the asset's carrying amount or recognized 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.
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.
ii) Component Accounting:
The component of assets are capitalized only if the life of the components vary significantly and whose
cost is significant in relation to the cost of the respective asset, the life of the component in assets are
determined based on technical assessment and past history of replacement of such components in the
assets. The carrying amount of any component accounted for as separate asset is derecognised when
replaced.
iii) Other Cost:
All other repairs and maintenance cost are charged to the statement of profit and loss during the
reporting period in which they are incurred.
Profit or Losses on disposals are determined by comparing proceeds with the carrying amount. These
are included in the Statement of Profit and Loss within other income/ (loss).
iv) Depreciation and Amortization:
a) Depreciation is recognized on a straight-line basis, over the useful life of the buildings and other
equipment's as prescribed under Schedule II of the Companies Act, 2013.
b) Depreciation on tangible fixed assets is charged over the estimated useful life of the asset or part of the
asset as evaluated on technical assessment on straight line method, in accordance with Part A of
Schedule II to the Companies Act, 2013
c) The estimated useful life of the tangible fixed assets on technical assessment followed by the Company
is furnished below:
Material residual value estimates and estimates of useful life are assessed as required.
d) The residual value for all the above assets are retained at 5% of the cost. Residual values and useful
lives are reviewed and adjusted, if appropriate, for each reporting period.
e) On tangible fixed assets added/disposed off during the year, depreciation is charged on pro-rata basis
for the period for which the asset was purchased and used.
4) Impairment:
Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an
asset's fair value less costs of disposal and value in use.
In respect of assets whose impairment are to be assessed with reference to other related assets and such
group of assets have independent cash flows (Cash Generating Units), such assets are grouped and tested for
impairment.
Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at the end of
each reporting period.
5) Leases:
i) Assets taken on Lease:-
The Company, at the inception of a contract, assesses whether the contract is a lease or not a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
time in exchange for a consideration. The Company has elected not to recognise Right-of-use Assets and
lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value
assets and the corresponding lease rental paid are directly charged to the Statement of Profit and Loss.
There are no such leases during the year. The Company recognises the lease payments associated with
these leases as an expense over the lease term. The Company recognises a Right-of-use Asset and a
lease liability at the lease commencement date. The Right-of use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial costs incurred. The Right-of-use Asset is subsequently depreciated
using the straight-line method from the commencement date to the end of the lease term. The lease liability
is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the Company's incremental borrowing rate. Subsequently, lease liabilities are
measured on amortised cost basis. Associated costs, such as maintenance and insurance, are expensed.
ii) Decommissioning charges in respect of properties like Plant and Equipment, Furniture & Fixtures and Office
Equipment's presently located in land taken on lease are not provided for as it is impractical to estimate the
sum that will be incurred at the time the lease comes to end. Further there is also likelihood of the lessor
renewing the lease.
6) Financial Assets Classification and Subsequent Measurement of Financial Assets:
i) For the purpose of subsequent measurement, financial assets are classified and measured based on the
entity's business model for managing the financial asset and the contractual cash flow characteristics of the
financial asset at:
a) Those to be measured subsequently at Fair Value either through Other Comprehensive Income (Fair
Value through Other Comprehensive Income-FVTOCI) or through Profit or Loss (Fair Value through
Profit and Loss-FVTPL) and;
b) Those measured at Amortized Cost
1. Financial Assets at Amortised Cost includes assets that are held within a business model where the
objective is to hold the financial assets to collect contractual cash flows and the contractual terms give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
These assets are measured subsequently at amortized cost using the effective interest method. The loss
allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and
credit risk exposure.
The Company also measures the loss allowance for a financial instrument at an amount equal to the
lifetime expected credit losses (ECL) if the credit risk on that financial instrument has increased
significantly since initial recognition.
2. Financial Assets at Fair Value Through Other Comprehensive Income (FVTOCI) : There are no such
asset.
3. Financial Assets at Fair Value Through Profit or Loss (FVTPL)
The Company has investment in shares which are fair valued through Profit & Loss account. Any
transaction cost on the same are income to Profit & Loss account. The total Profit due to Net Gain on
Investments in mutual funds / shares is Rs. 23,25,406/- (Previous Year Rs.68,14,388/-)
ii. Impairment of Financial Assets:
All financial assets are reviewed for impairment at least at each reporting date to identify whether there is
any evidence that a financial asset or a group of financial assets is impaired. Different criteria to
determine impairment are applied for each category of financial assets.
iii. Derivative Financial Instruments and Hedge Accounting:
here are no such transactions.
iv. Trade Receivables
The Company follows 'Simplified Approach' for recognition of impairment loss allowance based on lif
etime Expected Credit Loss at each reporting date, right from its initial recognition.
v. Derecognition of Financial Assets
financial asset is derecognised only when;
a) The Company has transferred the rights to receive cash flows from the financial asset or
b) The Company retains the contractual rights to receive the cash flows of the financial asset, but expects a
contractual obligation to pay the cash flows to one or more recipients.There are no such derecognitions.
7) Financial Liabilities:
I. Classification, Subsequent Measurement and Derecognition of Financial Liabilities
a. Classification
Financial Liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss
or at amortised cost. The Company's financial liabilities include borrowings & trade and other payables.
b. Subsequent Measurement
Financial Liabilities are measured subsequently at amortized cost using the effective interest method.All
interest-related charges and, if applicable, changes in an instrument's fair value that are reported in profit or
loss are included within finance costs or finance income.
c. Derecognition
A financial Liability is derecognised when the obligation under the liability is discharged or cancelled or has
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 the derecognition 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 or loss.
8) Inventories
Inventories are valued at lower of cost or net realizable value. Net realisable value is the estimated selling
price in the ordinary course of business less the estimated cost of completion and the estimated costs
necessary to make the sale. Cost is ascertained on weighted average basis in accordance with the
method of valuation prescribed by the Institute of Chartered Accountants of India.
i. Raw Materials
Raw Materials are valued at cost of purchase, net of duties (credit availed w.r.t taxes and duties) and
includes all expenses incurred in bringing the materials to location of use.
ii. Work-in-Process and Finished Goods
Work-in-Process and Finished Goods include conversion costs in addition to the landed cost of raw
materials.
iii. Stores and Spares
Stores, Spares and Tools Cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition.
9) Income Taxes
Tax expense recognized in the statement of profit or loss comprises the sum of deferred tax and current tax
not recognized in other comprehensive income or directly in equity.
Calculation of current tax is based on tax rates in accordance with tax laws that have been enacted or
substantively enacted by the end of the reporting period. Deferred income taxes are calculated using the
liability method on temporary differences between tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at reporting date. Deferred taxes pertaining to items recognised in
other comprehensive income (OCI) are disclosed under OCI.
Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible
temporary difference will be utilized against future tax liability. This is assessed based on the Company's
forecast of future earnings, excluding non-taxable income and expenses and specific limits on the use of
any unused tax loss or credit.
Deferred tax liabilities are generally recognized in full, although Ind AS 12 'Income Taxes' specifies some
exemptions. As a result of these exemptions the Company does not recognize deferred tax liability on
temporary differences relating to goodwill, or to its investments in subsidiaries.
10) Post-Employment Benefits and Short-Term Employee Benefits
i. Short Term Obligations:
Short term obligations are those that are expected to be settled fully within 12 months after the end of the
reporting period. They are recognised up to the end of the reporting period at the amounts expected to
be paid at the time of settlement.
ii. Other Long Term Employee Benefits Obligations:
The liabilities for earned leave are not expected to be settled wholly within 12 months after end of the period
in which the employees render the related service. They are, therefore, recognised and provided
for at the present value of the expected future payments to be made in respect of services provided by
employee up to the end of reporting period using the projected unit credit method. The benefits are
discounted using the market yields at the end of the reporting period that have terms approximating to the
terms of the related obligation. Remeasurements as a result of experience adjustments and changes in
actuarial assumptions are recognised in Other Comprehensive Income (OCI).
The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.
iii. Post-Employment Obligation:
The Company operates the following post-employment schemes:
a) Defined Contribution Plan such as Gratuity & Provident Fund
Gratuity Obligation:
The company has created The Employees Group Gratuity Fund which has taken Gratuity Cum Life
Insurance Policy from LIC of India. Premium on said policy is calculated by LIC & Conveyed to us on the
basic of Project Unit Credit Method. The same is accounted for in books of accounts.
Provident Fund:
The eligible employees of the Company are entitled to receive benefits in respect of provident fund, a
defined contribution plan, in which both employees and the Company make monthly contributions at a
specified percentage of the covered employees salary. The provident fund contributions are made to
EPFO.
Bonus Payable:
The Company recognises a liability and an expense for bonus. The Company recognises a provision
where contractually obliged or where there is a past practice that has created a constructive obligation.
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