2. SIGNIFICANT ACCOUNTING POLICIES:
2.1. Statement of Compliance
The Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind As)
as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act,
2013.
The Standalone Financial Statements comprises of the Balance Sheet as at 31st March, 2025, the Statement of Profit
and Loss for the year ended, the Statement of Cash Flows for the year ended and the Statement of Changes in Equity
for the year ended as on that date, and accounting policies and other explanatory information (together hereinafter
referred to as ‘Standalone Financial Statements’ or ‘financial statements’).
These financial statements are approved by the Board of Directors on 30-05-2025.
2.2. Basis of preparation
The separate financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS)
under historical cost convention on accrual basis except the assets and liabilities which have been measured at Fair
Values.
• Financial instruments - measured at fair value;
• Assets held for sale - measured at fair value less cost of sale;
• Plan assets under defined benefit plans - measured at fair value
• Employee share-based payments - measured at fair value
• Biological assets - measured at fair value
• In addition, the carrying values of recognized assets and liabilities, designated as hedged items in fair
value hedges that would otherwise be carried at cost, are adjusted to record changes in the fair values
attributable to the risks that are being hedged in effective hedge relationship.
2.3. Presentation of financial statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 2013 (“the Act”). The statement of cash flows has been prepared and presented
as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items
in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by
way of notes forming part of the financial statements along with the other notes required to be disclosed under the
notified Indian Accounting Standards.
2.4. Cash flow statement:
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash
flow from operating activities is reported using indirect method, the net profit/(loss) is adjusted for the effects of:
2.4.1. Non-cash items such as depreciation, provisions, unrealized foreign
currency gains and losses, and undistributed profits of associates; and
2.4.2. All other items for which the cash effects are investing or financing
cash flows.
2.4.3. The cash flows from operating, investing and financing activities of the
Company is segregated based on the available information. Cash and
cash equivalents (including bank balances) are reflected as such in the
Cash Flow Statement.
2.5. Current and Non-Current Classification:
The Company presents assets and liabilities in the balance sheet based on current / noncurrent classification.
An asset is classified as current when it satisfies any of the following criteria:
? Expected to be realized, or is intended to be sold or consumed, the Company’s
normal operating cycle.
? held primarily for the purpose of trading;
? It is expected to be realized within twelve months after the reporting date; or
? It is cash or cash equivalent unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
] It is expected to be settled in the Company’s normal operating cycle;
] It is held primarily for the purpose of being traded.
] It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional
right to defer settlement of the liability for at least 12 months after the reporting date.
] Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
All other liabilities are classified as non-current liabilities.
2.6 Operating Cycle:
The Company has adopted its normal operating cycle as twelve months based on the nature of products and the
time between the acquisition of assets for processing and their realization, for the purpose of current / non-current
classification of assets and liabilities.
2.6. Use of Accounting Estimates:
The preparation of the financial statements requires that the management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial
statements and the results of operation during the reported period. Although these estimates are based upon
management’s best knowledge of current events and actions, actual results could differ from these estimates which
are recognised in the period in which they are determined.
2.7. Property, Plant and Equipment:
Property, Plant and Equipment are stated at cost less accumulated depreciation.
Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non¬
refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing
the item to its working condition for its intended use and estimated costs of dismantling and removing the item and
restoring the site on which it is located.
The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct
labour, any other costs directly attributable to bringing the item to working condition for its intended use, and
estimated costs of dismantling and removing the item and restoring the site on which it is located.
Property, plant, and equipment which are significant to the total cost of that item of Property Plant and Equipment
and having different useful life are accounted for separately.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between
the net disposal proceeds and carrying amount of the asset is recognized in the statement of profit or loss when the
asset is derecognized.
Depreciation on Property Plant and Equipment is provided on Straight line method.
Depreciation is provided based on useful life as prescribed under part C of schedule II of the Companies act, 2013.
The books of Accounts of company doesn’t carry any Property, Plant and Equipment during the reporting period,
hence this accounting standard does not have financial impact on the financial statements of the company.
2.6 Impairment Assets (Ind AS 36)
The Company’s non-financial assets, other than deferred tax assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are
largely independent of the cash inflows of other assets or CGUs. The recoverable amount of a CGU (or an individual
asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future
cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the CGU (or the asset).
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the statement of profit and loss. Impairment loss recognised in respect
of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce
the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.
The books of accounts of the company don’t carry any impairment of assets during the reporting period, hence this
accounting standard does not have a financial impact on the financial statements of the company.
2.8. Intangible Assets:
Identifiable intangible assets are recognised when the Company controls the asset, it is probable that future
economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably
measured. Intangible assets are stated at cost, less accumulated amortization and accumulated impairment
losses, if any. The estimated useful life and amortization method reviewed at the end of each reporting period, with
the effect of any changes in estimate being accounted for on a prospective basis.
2.8 Investments:
Investments are classified as Non-Current and Current investments.
Investments, which are readily realisable and are 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 non¬
current investments.
During the year ended the company wrote off Non-Current Investments which were deemed not recoverable.
Current investments are carried at lower of cost and fair value. Non-Current Investments are carried at cost less
provision for other than temporary diminution, if any, in value of such investments.
2.9. Depreciation/ Amortization:
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual
value. Depreciation on Property, Plant and equipment has been provided on Straight -Line method in accordance
with the Schedule II of the Companies Act, 2013, based on the useful life estimated on the technical assessment as
in force and proportionate depreciation are charged for additions/deletions during the year. In respect of additions /
deletions to the fixed assets / leasehold improvements, depreciation is charged from the date the asset is ready to
use / up to the date of deletion. The asset’s useful lives are reviewed and adjusted, if appropriate, at the end of each
reporting period.
2.10 Effects of changes in Foreign Rates (Ind AS 21):
Foreign currency transactions are recorded at the exchange rates prevailing on the dates when the relevant
transactions took place. Exchange differences arising on settled foreign currency transactions during the year and
translation of assets and liabilities at the year-end are recognized in the statement of profit and loss.
In respect of Forward contracts entered into to hedge risks associated with foreign currency fluctuation on its assets
and liabilities, the premium or discount at the inception of the contract is amortized as income or expense over the
period of contract. Any profit or loss arising from the cancellation or renewal of forward contracts is recognized as
income or expense in the period in which such cancellation or renewal is made.
2.10. Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at transaction values
and where such values are different from the fair value, at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
2.10.1. Financial Assets
Financial assets are recognised when the Company becomes a party to the contractual provisions of the
instruments. Financial assets other than trade receivables are initially recognised at fair value plus transaction costs
for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through
profit or loss is initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and
Loss.
Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in following categories.
2.10.1.1. Financial Assets at Amortized Cost
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is
to hold the asset 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.
2.10.1.2. Financial Assets Measured at Fair Value
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling 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. Further, in case where the company has made an
irrevocable selection based on its business model, for its investments which are classified as equity instruments,
the subsequent changes in fair value are recognized in other comprehensive income. In any other case, financial
asset is fair valued through profit and loss.
2.10.1.3. Impairment of Financial Assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which
are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing
component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses
are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk
from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be
recognised is recognized as an impairment gain or loss in statement of profit or loss.
2.10.1.4. De-recognition of Financial Assets
The Company de-recognizes 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 recognizes a
collateralized borrowing for the proceeds received.
2.10.2. Equity Instruments and Financial Liabilities
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
2.10.2.1. Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments which are issued for cash are recorded at the proceeds received, net of direct
issue costs. Equity instruments which are issued for consideration other than cash are recorded at fair value of the
equity instrument.
2.10.2.2. Financial Liabilities
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.
2.10.2.3. Subsequent Measurement
Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts approximate the fair
value due to the short maturity of these instruments.
2.10.2.4. 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 recognized in the Statement of Profit and Loss.
2.11. Investment property
Investment properties are properties held to earn rentals and/or for capital appreciation (including property under
construction for such purposes). Investment properties are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16’s
requirement for cost model.
An investment property is derecognized upon disposal or when the investment property is permanently withdrawn
from use and no further economic benefits expected from disposal. Any gain or loss arising on de-recognition of the
property is included in profit or loss in the period in which the property is derecognized.
The company does not have any Investment properties.
2.12. Inventories:
Inventories are assets:
a. Held for sale in the ordinary course of business.
b. In the process of production for such sale.
c. In the form of materials or supplies to be consumed in the production process or in the rendering of services
Net Realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
• Based on the information provided the difference between physical verification and valuation of
the inventories are charged to the profit and loss account.
• The books of accounts the company doesn’t carry any inventory value during the reporting period,
and hence this accounting standard doesn’t have financial impact on the Financial Statements.
2.13. Cash and cash equivalents:
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and demand deposits with an
original maturity of three months or less and highly liquid investments that are readily convertible into known
amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts
as they are considered an integral part of the company’s cash management.
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