2) Material accounting policies:
2.1 Basis of preparation, measurement and
material accounting policies
The principal accounting policies applied in the
preparation of these financial statements are set out
below. These policies have been consistently applied
to all the years presented, unless otherwise stated.
(a) Basis of preparation
(i) Compliance with Ind AS
Statement of compliance:
The words financial statements in the accounts
should read as Ind-AS financial statement. The
financial statements are prepared in accordance
with the Indian Accounting Standards ("Ind-
AS”) as prescribed under Section 133 of the
Companies Act, 2013 read with the Rule 3 of
the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016 and the
provisions of Companies Act, 2013. The financial
statements are presented in lakhs of Indian
rupees rounded off to two decimal places, except
per share information, unless otherwise stated.
Accounting policies have been consistently
applied except where a newly issued accounting
standard is initially adopted or a revision to an
existing accounting standard requires a change
in the accounting policy hitherto in use.
These financial statements have been prepared
on the historical cost basis and certain financial
instruments which are measured at fair values at
the end of each reporting period, as explained in
the accounting policies below.
(ii) Recent pronouncements
Ministry of Corporate Affairs ("MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
For the year ended March 31, 2025, MCA has
notified Ind AS-117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the
Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based
on its evaluation, has determined that it does not
have any impact on its financial statements.
(iii) Current vis-a-vis non-current classification
The assets and liabilities reported in the balance
sheet are classified on a "current / non-current
basis”.
An asset is classified as current when it is expected
to be realised or intended to be sold or consumed
in normal operating cycle, held primarily for the
purpose of trading, expected to be realised within
twelve months after the reporting period, or cash
or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.
A liability is classified as current when it is
expected to be settled in normal operating cycle,
it is held primarily for the purpose of trading, it is
due to be settled within twelve months after the
reporting period, or there is no unconditional right
to defer the settlement of the liability for at least
twelve months after the reporting period.
The Company has determined its operating cycle
as twelve months for the purpose of current -
non-current classification of assets and liabilities.
Deferred tax assets and liabilities, and all assets
and liabilities which are not current are classified
as non-current assets and liabilities.
(b) Material Accounting Policies
(i) Segment reporting:
Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision-Maker (CODM).
Manager has been identified as CODM and he is
responsible for allocating resources, assessing
the financial performance of each business i.e.
Trading Activity and Investment Activity.
(ii) Foreign currency translation:
(a) Functional and presentation currency
Items included in the financial statements of each
of the Company entities are measured using the
currency of the primary economic environment
in which the entity operates ('the functional
currency'). The financial statements are presented
in 'Indian Rupees' (INR), which is the Company's
functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation
of monetary assets and liabilities denominated
in foreign currencies at year end exchange rates
are generally recognized in profit or loss. They are
deferred in equity if they relate to qualifying cash
flow hedges.
(iii) Revenue recognition and other income
recognition:
Dividend Income
Dividends are recognised in profit or loss only
when the right to receive payment is established,
it is probable that the economic benefits
associated with the dividend will flow to the
Company, and the amount of the dividend can be
measured reliably.
Rental Income
Rental income from investment property leased
out under operating leases is recognised in the
statement of profit and loss on a straight-line basis
over the term of the lease or systematic basis.
Sale of Traded Goods
Revenue is generated primarily from sale of
traded goods. Revenue is recognized at the
point in time when the performance obligation is
satisfied and control of the goods is transferred
to the customer upon dispatch or delivery, in
accordance with the terms of customer contracts.
Revenue is recognized at an amount that the
company expects to receive from customers.
(iv) Income tax:
The income tax expense or credit for the period
is the tax payable on the current period's taxable
income based on the applicable income tax rate
adjusted for changes in deferred tax assets and
liabilities attributable to temporary differences
and unused tax losses. Tax expenses comprises
of current tax and deferred tax.
Current tax
The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting period.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions where
appropriate on the basis of amounts expected to
be paid to the tax authorities.
Current and deferred tax is recognised in
statement of profit and loss, except to the
extent that it relates to items recognised in
Other Comprehensive Income or directly in
equity. In that case, the tax is also recognised
in Other Comprehensive Income or directly in
equity, respectively.
Deferred tax
Deferred tax is recognised on temporary
differences arising between the tax bases of
assets and liabilities and their carrying amounts
in the financial statements at the balance sheet
date. Deferred income tax is determined using
tax rates (and laws) that have been enacted or
substantially enacted by the balance sheet date
and are expected to apply when the related
deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred tax assets are recognised for all
deductible temporary differences and unused
tax losses only if it is probable that future
taxable amounts will be available to utilise those
temporary differences and losses.
(v) Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet
comprise cash at bank and on hand. For the
purpose of statement of cashflow cash and cash
equivalent consist of cash at bank and cash on
hand.
(vi) Trade Receivables:
Trade receivables are amounts due from
customers for assets given on lease in the
ordinary course of business. Trade receivables
are recognised initially at the amount of
consideration that is unconditional unless they
contain significant financing components, when
they are recognised at fair value. The Company
holds the trade receivables with the objective to
collect the contractual cash flows and therefore
measures them subsequently at amortized
cost using the effective interest method, less
loss allowance.
(vii) Investments and other financial instruments:
(a) Financial Instruments
Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contractual provisions of the instruments.
Initial recognition and measurement
Financial assets and financial liabilities are initially
measured at fair value except for trade receivables
which are initially measured at transaction price.
Transaction costs that are directly attributable to
the acquisition or issue of financial assets and
financial liabilities (other than those measured
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.
(b) Classification and subsequent measurement
of financial assets
The classification of a financial asset depends
on the entity's business model for managing the
financial assets and the contractual terms of the
cash flows. The Company classifies its financial
assets in the following measurement categories:
• those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss), and
• those measured at amortised cost
Financial assets measured at amortised cost
Financial assets that are held for the collection
of contractual cash flow where those cash
flows represent solely payments of principal and
interest are measured at amortised cost Interest
income from these financial assets is included
in finance income using the effective interest
rate method.
Financial assets measured at fair value
through other comprehensive Income
(FVTOCI)
Assets that are held for the collection of contractual
cash Flows and for selling the financial assets,
where the assets cash flows represent solely
payments of principal and interest, are measured
at fair value through other comprehensive income
(FVTOCI). Changes in fair value of instrument is
taken to other comprehensive income which are
reclassified to profit or loss.
Financial assets measured at fair Value
through profit or loss (FVTPL)
Financial assets that do not meet the criteria for
amortised cost or FVTOCI are measured as fair
value through profit or loss. A gain or loss on a
debt investment that is subsequently measured at
fair value through profit or loss. Dividend income
from these financial assets is included in other
income once the Company's right to receive the
dividend is established and it is probable that the
economic benefits associated with the dividend
will flow to the entity.
Investments in equity instruments at FVTOCI
On initial recognition, the Company can make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in fair value in other comprehensive
income for investments in equity instruments.
This election is not permitted if the equity
investment is held for trading. These elected
investments are initially measured at fair value
plus transaction costs. Subsequently, they are
measured at fair value with gains and losses
arising from changes in fair value recognised in
other comprehensive income and accumulated
in the reserve equity instruments through other
comprehensive income'. The cumulative gain
or loss is not reclassified to profit or loss on
disposal of the investments. Dividends on these
investments in equity instruments are recognised
in the statement of profit and loss All the equity
instruments held by the Company are measured
at FVTOCI.
Impairment of Financial Assets
The Company assesses on a forward-looking
basis the expected credit losses associated
with its assets carried at amortised cost. The
impairment methodology applied depends on
whether there has been a significant increase in
credit risk.
For trade receivables only, the Company applies
the simplified approach permitted by Ind AS 109-
'Financial Instruments', which requires expected
lifetime losses to be recognised from initial
recognition of the receivables.
Derecognition of Financial Assets
A financial assets is derecognised only when
the company has transferred the right to receive
cash flows from the financial assets or retains
the contractual rights to receive the cash
flows of the financial assets, but assumes a
contractual obligation to pay cash flows to one or
more recipients.
Where the entity has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not
transferred substantially all risks and rewards
of ownership of the financial asset, the financial
asset is not derecognised.
Where the entity has neither transferred a
financial asset nor retains substantially all
risks and rewards of ownership of the financial
asset, the financial asset is derecognised if the
Company has not retained control of the financial
asset. Where the Company retains control
of the financial asset, the asset is continued
to be recognised to the extent of continuing
involvement in the financial asset.
(c) Financial Liabilities & Equity Instruments
Instruments issued by a company are classified
as either financial liabilities or as equity in
accordance with the substance of the contractual
arrangements and the definitions of a financial
liability and an equity instrument.
Equity instruments
An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of direct
issue costs. Repurchase of the Company's own
equity instruments is recognised and deducted
directly in equity. No gain or loss ls recognised
in Statement of Profit and Loss on the purchase,
sale, issue or cancellation of the Company's
own equity instruments. Dividend paid on equity
instruments are directly reduced from equity.
Financial Liabilities
Subsequent measurement of financial
liabilities
Financial liabilities measured at amortised cost
All the financial liabilities are subsequently
measured at amortised cost using the effective
interest rate method. Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement
of profit and loss. Company does not owe any
financial liabilities which is held for trading.
Derecognition of Financial Liabilities
A financial liability (or, where applicable, a part
of a financial liability) is primarily derecognised
when, and only when, the obligation under the
liability is discharged or cancelled or expires.
Effective interest method
The effective interest method is a method of
calculating the amortised cost of a financial
asset or financial liability and of allocating
interest income/ interest expenses over the
relevant period. The effective interest rate is the
rate that exactly discounts estimated future cash
receipts/ payments (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the debt instrument, or, where appropriate,
a shorter period, to the net carrying amount on
initial recognition.
(viii) Offsetting Financial Instruments:
Financial assets and liabilities are offset, and the
net amount reported in the balance sheet when
there is a legally enforceable right to offset the
recognised amounts and there is an intention
to settle on a net basis or realise the asset and
settle the liability simultaneously. The legally
enforceable right must not be contingent on
future events and must be enforceable in the
normal course of business and in the event of
default, insolvency or bankruptcy of the Company
or the counterparty.
(ix) Property, plant and equipment:
Freehold land is carried at cost and is not
depreciated. All other items of property, plant
and equipment are stated at historical cost less
depreciation and impairment, if any. Historical
cost includes expenditure that is directly
attributable to the acquisition of the items.
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. The carrying
amount of any component accounted for as a
separate asset is derecognized when replaced.
All other repairs and maintenance are charged to
profit or loss during the reporting period in which
they are incurred.
Depreciation methods, estimated useful lives
and residual value:
Depreciation is calculated using Straight Line
Method (SLM) to allocate their cost, net of their
residual values, over their estimated useful lives.
The useful lives have been determined based on
technical evaluation done by management, which
is in line with those specified by Schedule II to the
Companies Act, 2013
The assets' residual values and useful lives are
reviewed, and adjusted if appropriate, at the end
of each of the reporting period.
An asset's carrying amount is written down
immediately to its recoverable amount if the
asset's carrying amount is greater than its
estimated recoverable amount.
Gain and losses on disposals are determined
by comparing proceeds with carrying amount.
These are included in profit or loss within other
gains/(losses).
The estimated useful lives of the property, plant
and equipment are as under:
derecognition of the property (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in profit or loss in the period in which the property
is derecognised.
(xi) Trade and other payables:
These amounts represent liabilities for services
provided to the Company prior to the end of
financial year which are unpaid. Trade and other
payables are presented as current liabilities
unless the payment is not due within 12 months
of reporting period. Trade and other payables are
initially recognised at fair value and subsequently
measured at amortized cost using the effective
interest method.
(x) Investment Property
Investment property is property held to earn
rentals and/or for capital appreciation (including
property under construction for such purposes).
Investment property is measured initially at cost,
including transaction costs.
Subsequent to initial recognition, investment
property is measured in accordance with
the requirements Ind AS 16 for cost model.
Investment property represents freehold land.
An investment property is derecognised upon
disposal or when the investment property
is permanently withdrawn from use and no
future economic benefits are expected from
the disposal. Any gain or loss arising on
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