1. Summary of significant accounting policies : -
(A) Basis of Preparation of Financial Statements:
• The financial statements have been prepared under the historical cost convention on an
accrual basis and going concern basis. The accounting policies have been consistently
applied by the company and are consistent with those used in the previous year.
Accounting policies not specifically referred to otherwise are consistent and in
consonance with generally accepted accounting principles in India.
• All assets and liabilities have been classified as current or non-current as per the
Company's normal operating cycle and other criteria set out in Schedule III to the
Companies Act, 2013. Based on the nature of products and the time between the
acquisition of assets for processing and their realization in cash and cash equivalents, the
Company has determined its operating cycle as twelve months for the purpose of current
- non-current classification of assets and liabilities.
(B) Use of Estimates
• The preparation of financial statements in conformity with Indian Accounting Standards
requires the management to make judgments, estimates, and assumptions that affect the
reported amounts of revenues, expenses, assets, and liabilities and the disclosure of
contingent liabilities, at the end of the reporting period. Although these estimates are
based on the management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes requiring a material
adjustment to the carrying amounts of assets or liabilities in future periods.
(C) Tangible Fixed Assets
• Fixed assets are stated at cost less accumulated depreciation and impairment losses, if
any. Cost comprises the purchase price and directly attributable cost of bringing the asset
to its working condition for its intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.
• Borrowing costs relating to the acquisition of tangible assets that take a substantial period
of time to get ready for its intended use are also included to the extent they relate to the
• period till such assets are ready to be put to use. Assets under installation or under
construction as at the Balance Sheet date are shown as Capital Work in Progress.
(D) Depreciation and Amortization:
• Depreciation on fixed assets is calculated on a Straight-Line method at based on the
useful lives estimated by the management, or those prescribed under the Schedule II of
the Companies Act, 2013,The company has used the following rates to provide
depreciation on its fixed assets.
(E) Intangible Fixed Assets:
• Intangible assets are recognized when it is probable that the future economic benefits that
are attributable to the asset will flow to the enterprise and the cost of the asset can be
measured reliably. The entity is not in possession of any intangible assets.
(F) Borrowing Costs:
• Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest, exchange
differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost and other costs that an entity incurs in connection with
the borrowing of funds.
(G) Impairment of Assets:
• The carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal / external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price 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 risks specific to the asset. Net selling price is the amount obtainable
from the sale of an asset in an arm's length transaction between knowledgeable, willing
parties, less the costs of disposal.
• After impairment, depreciation is provided on the revised carrying amount of the asset
over its remaining useful life
Non-Financial Assets :
• For non-financial assets, including property, plant and equipment, goodwill, and other
intangible assets, impairment testing involves estimating the recoverable amount of the
assets or the cash-generating units to which they belong. The recoverable amount is the
higher of fair value less costs of disposal and value-in-use. Key assumptions, such as
future cash flows, growth rates, and discount rates, are considered in this assessment.
Financial Assets:
• For financial assets, including trade receivables, investments, and loans, impairment
assessment is performed using the expected credit loss (ECL) model. This approach
considers historical trends, forward-looking information, and other relevant factors to
estimate potential losses.
(H) Inventories:
• The company is service entity and it does not have inventory on end of reporting period.
(I) Revenue Recognition:
Revenue from Operations
• Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the company and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognized:
Portfolio Management Services:
Income from portfolio management services is recognized on accrual basis.
- Other income
• Interest income, If any is recognized on time proportion basis taking into account the
amount outstanding and the rate applicable.
• Dividend income, If any is recognized when right to receive is established.
(J) Taxation:
• Tax expense comprises current and deferred tax. Current income tax expense comprises
taxes on income from operations in India and in foreign jurisdictions. Income tax payable
in India is determined in accordance with the provisions of the Income Tax Act, 1961.
• Deferred tax expense or benefit is recognized on timing differences being the difference
between taxable income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
• Deferred tax assets and liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date. Deferred income tax
relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss. Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied
by the same governing taxation laws.
• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax
assets are recognized only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be
realized. In situations where the Company has unabsorbed depreciation or carry forward
tax losses, all deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that they can be realized against future taxable
profits. In the situations where the Company is entitled to a tax holiday under the Income
realized against future taxable profits. In the situations where the Company is entitled to
a tax holiday under the Income tax Act, 1961 enacted in India, no deferred tax (asset or
liability) is recognized in respect of timing differences which reverse during the tax
holiday period, to the extent the Company's gross total income is subject to the deduction
during the tax holiday period. Deferred tax in respect of timing differences which reverse
after the tax holiday period is recognized in the year in which the timing differences
originate.
• At each balance sheet date the Company re-assesses recognized and unrecognized
deferred tax assets. The Company writes-down the carrying amount of a deferred tax
asset to the extent that it is no longer reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available against which the deferred
tax asset can be realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available. The Company recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income will be available against which such deferred tax
assets can be realized.
• Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the
extent there is convincing evidence that the Company will pay normal income tax during
the specified period. In the year in which the MAT Credit becomes eligible to be
recognized as an asset in accordance with the recommendations contained in guidance
note issued by the Institute of Chartered Accountants of India, the said asset is created by
way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement.
The Company reviews the MAT Credit Entitlement at each balance sheet date and writes
down the carrying amount of the MAT Credit Entitlement to the extent there is no longer
convincing evidence to the effect that Company will pay normal income tax during the
specified period.
(K) Employee Benefits:
• The Group has a defined benefit gratuity plan. Every employee who has completed five
years or more of service gets a gratuity on departure at 15 days salary (last drawn salary)
for each completed year of service.
(L) Segment reporting :
• The company's business activity falls within a single primary segment the disclosure
requirements of Indian Accounting Standard ('Ind AS-108') "Operating segment is not
applicable.
(M) Investments:
• Investments, if any which are readily realizable and intended to be held for not more than
one year from the date on which such investments are made, are classified as current
investments. All other investments are classified as long-term investments.
• On initial recognition, all investments are measured at cost. The cost comprises the
purchase price and directly attributable acquisition charges such as brokerage, fees and
duties. If an investment is acquired, or partly acquired by the issue of shares or the other
securities, the acquisition cost is the fair value of securities issued. If an investment is
acquired in exchange for another asset, the acquisition is determined by reference to the
fair value of the asset given up or by reference to the fair value of the investment
acquired, whichever is more clearly evident.
• Current investments are carried at the lower of cost and fair value determined on an
individual investment basis. Long- term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other than temporary in
the value of the long term investments.
• On disposal of an investment, the difference between its carrying amount and net
disposal proceeds is charged or credited to the statement of profit and loss.
(N) Earnings per share:
• Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period.
• For the purpose of calculating diluted earnings per share, the net profit or loss for the
period 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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