1. CORPORATE INFORMATION : Namo eWaste Management Limited was incorporated on January 13, 2014. The Company is engaged in the business of e waste management and recycling of metal scrap. The company got listed under SME Platform of National Stock Exchange of India Limited on 11th September 2024.
2. SIGNIFICANT ACCOUNTING POLICIES :
a. Basis for Preparation of Standalone Financial Statement:
i. The Company was Small and Medium Sized Company (SMC) as defined under Rule 2(1) (e) of the Companies (Accounting Standards) Rules, 2021 notified under the Companies Act, 2013 and it availed of the exemption or relaxations available to SMCs.
ii. The accompanying standalone financial statements are prepared & presented under the historical cost convention, on the accrual basis of accounting unless otherwise stated in accordance with the Generally Accepted Accounting Principles (GAAP) in India and comply with the Accounting Standards specified under Section 133 of Companies Act, 2013 (The Act), read with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Act. Theses financial statements are presented in Indian rupees rounded off to the Lakhs of rupees and decimal thereof.
iii. All assets & Liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in Schedule III to the Act.
b. Changes in Accounting Policy:
During the year ended on 31 March 2025, there is no change in accounting policy having significant impact on presentation and disclosure made in the financial statements. The company has also reclassified the previous year’s figures in accordance with the requirements applicable in the current year.
c. Use of Estimates:
b. The preparation of financial statements in conformity with Indian GAAP requires the Management to make judgment, estimates and assumptions that affect the reported amounts 90
of revenue, expenses, assets and liabilities and 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. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialize
d. Current Vs Non-Current Classification:
The Company presents assets & liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:
i. Expected to be realized or intended to be sold or consumed in normal operating cycle.
ii. Held primarily for the purpose of trading.
iii. Expected to be realized within twelve months after the reporting period, or
iv. Cash or Cash Equivalents 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 current when:
i. Expected to be settled in normal operating cycle.
ii. Held primarily for the purpose of trading.
iii. 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.
The Company classifies all other liabilities as non-current
Deferred Tax assets & liabilities are classified as noncurrent assets and liabilities. The company had identified twelve months as its operating cycle. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.
e. Recognition of Income & Expenses:
i. Sales have been recognized with the transfer of significant risk and rewards of ownership of the goods, with the company losing effective control or the right to managerial involvement thereon and the revenue (representing future economic benefit associated with the transaction) including cost incurred or to be incurred in respect of the transaction are measurably reliably and the recovery of the consideration is probable.
ii. Revenue from services is recognized in proportion to the stage of completion of transaction at the end of reporting period, and cost incurred in the transaction and revenue (representing economic benefit associated with the transaction) can be measured reliably.
iii. Sales are measured at the Fair value of consideration received or receivable. Sales recognized net of, intermediary sales, rebates & discount & Goods & Service Tax.
iv. Dividend for distribution is accounted for at the point of approval by relevant authority with due disclosure in financial statements of dividend declared / recommended/ proposed pending distribution.
v. Other incomes have been recognized on an accrual basis in financial statements except for cash flow information.
vi. Dividend income is accounted when the right to receive the payment is established, which is generally when the appropriate authority approves the dividend.
vii. Export benefits in the form of Duty Drawback, Duty Entitlement Pass Book (DEPB) and other schemes are recognized in the Statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
viii. Expenditures are accounted on an accrual basis.
ix. Revenue from work services is recognized based on the services rendered in accordance with the terms of contracts.
x. Profit/ (Loss) from partnership firms which are in the same line of operation is considered as operating Income. The share of profit/ (loss) in partnership firm is recognized as income in the Statement of Profit and Loss as and when the right to receive the profit/ (loss) share is established.
f. Property, Plant and Equipment
Tangible Items:
i. These tangible assets are held for use in production, supply of goods or services or for administrative purposes.These are recognized and carried under cost model i.e. cost less accumulated depreciation and impairment loss, if any which is akin to recognition criteria under erstwhile GAAP
ii. Cost Includes freight, duties, taxes and other expenses directly incidental to acquisition, bringing the asset to the location and installation including site restoration up to the time when the asset is ready for intended use. Such costs also include borrowing costs if the recognition criteria are met.
iii. When a major inspection/ repair occurs, its cost is recognized in the carrying amount of the plant & equipment as a replacement if the recognition criteria are satisfied.
iv. Depreciation has been provided on straight line method in terms of expected life span of assets as referred to in Schedule III of the Companies Act, 2013.The residual value and useful life of assets is reviewed annually, and any deviation is accounted for as a change in estimate.
v. Components relevant to fixed assets, where significant, are separately depreciated on straight line basis in terms of their life span assessed by technical evaluation in item specific context.
vi. For new additions, all direct expenses and direct overheads are capitalized till the assets are ready for intended use.
vii. Depreciation on Tangible fixed Assets added/ disposed off during the year is provided on prorata basis with respect to date of acquisition/ disposal.
viii. During sales of fixed assets any profit earned/ loss sustained towards excess / shortfall of sale value vis-a-vis carrying cost of assets is accounted for in statement of profit & loss.
g. Investments Property:
Properties held to earn rentals or / and for capital appreciation but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes are categorized as investment properties. These are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost shall also include borrowing cost if the recognition criteria are met. Said assets
are depreciated on straight line basis based on expected life span of assets which is in accordance with Schedule II of Companies Act, 2013. Significant parts of the property are depreciated separately based on their specific useful lives. Any gain or loss on disposal of investment properties is recognized in profit or loss account.
h. Depreciation
e. Depreciation on Property, Plant and Equipment has been provided on the Straight Line method as per the useful life prescribed in Schedule II to the Companies Act, 2013
i. Revaluation of Property, Plant and Equipment
As per the Management’s view of the company, the figures reported in Financials statement of the relevant financial year for Property, Plant and Equipment, is demonstrating a true and fair view. So, the Company has not revalued its Property, Plant, and Equipment during the relevant financial year and disclosure requirement as to “whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017” is not applicable to the company.
j. Title deeds of Immovable Property not held in name of the Company
The company does not have any Immovable Property of which title deed is not held in name of the company at any time during the relevant financial year.
k. Intangible Assets & Good will:
Intangible Assets are initially recognized at:-
i. In case the assets are acquired separately then at cost.
ii. In case the assets are acquired in a business combination then at fair value.
iii. No self-generated goodwill is recognized.
Impairment of Non-Financial Assets:
i. An asset is deemed impairable when recoverable value is less than its carrying cost and the difference between the two represents provisioning exigency.
ii. Recoverable value is the higher of the ‘Value in Use’ and fair value as reduced by cost of disposal.
iii. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
l. Government subsidy / grant:
Government Grant is recognized only when there is a reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received.
m. Inventories:
Inventories are valued at the lower of cost or net realizable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
i. Raw materials: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO basis.
ii. Finished goods and work in progress: Cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity.Cost is determined on a FIFO basis.
iii. Traded goods: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on FIFO basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
n. Foreign currency transactions and translations
Transaction denominated in the foreign currencies is normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the year-end are re-stated at the year-end rates. Non-Monetary foreign currency items are carried at cost. Any income and expenses on account of exchange difference either on settlement or on transaction is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to carrying cost of such assets.
o. Borrowing Cost:
Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing costs also include exchange differences to the extent regarded as an adjustment to the
borrowing costs. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing cost is recognized as expense in the period in which they are incurred.
p. Cash & Cash Equivalents:
Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.
q. Employee Benefits
Short term employee benefits:
o. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentives and compensated absences.
Post-employment benefits defined contribution plans:
The Liability in respect of defined benefits in the form of gratuity, leave encashment, postretirement medical scheme is provided based on the percentage notified by the Government. These benefit has been valued by Actuarial at closing of Financial as per applicable Accounting standard AS-15
r. Income Tax:
Current Tax
x. Provision for Current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) credit entitlement is recognized where there is convincing evidence that the same can be realized in future.
Deferred Tax
The deferred Tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets/liabilities are recognized when there is reasonable certainty that the assets can be realized in future; however, when there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there is virtual certainty of realization of such assets/liabilities. Deferred tax
assets/liabilities are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.
s. Investments:
Investments are classified into current and longterm investments based on the intention of the management at the time of purchase. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost less any provision for permanent diminution in value.
t. Earnings Per share:
ah. The basic earnings per share is computed by dividing the net profit/ (loss) after tax attributable to the equity shareholders for the period by the total number of equity shares outstanding during the reported year.
u. GST Input Credit
The Company collects GST on sales made by it from the customer. The GST paid on purchases made across the country is debited to GST input account which is adjusted periodically with aforesaid GST payable account. Any credit balance in GST payable account is deposited periodically with GST authorities. However, GST paid on purchases on cases where GST input tax credit is blocked under GST & it is not allowed to be setoff for input tax credit, such GST included in the respective heads of Cost. However, additional demand of Sales Tax and service tax of pre GST regime if any is debited to Profit and loss account.
v. . Material Events
Material events occurring after the Balance Sheet date in relation to conditions existing as at the Balance Sheet date is taken into cognizance.
w. Capital Advances:
The company does not have any capital advance except as disclosed in the balance sheet as on date received by the company during the period.
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