2. SIGNIFICANT ACCOUNTING POLICIES
(A) Statement of Compliance
(i) In accordance with the notification issued by the Ministry of Corporate
Affairs, the Company has adopted Indian Accounting Standards
(referred to as “IndAS”) notified under the Companies (Indian
Accounting Standards) Rules, 2015 with effect from 1 April, 2017.
Previous periods have been restated to IndAS. The standalone
financial statements as at and for the year ended 31 March 2025
are approved and authorized for issue by the Board of Directors on
27/05/2025. The standalone financial statements of the Company
are prepared in accordance with Indian Accounting Standards (Ind
AS) under the historical cost convention on the accrual basis except
for certain financial assets and financial liabilities that have been
measured at fair value. These standalone financial statements are
presented in lakhs of Indian rupees which is also the Company’s
functional currency, except per share data and as otherwise stated.
Figures for the previous years have been regrouped/rearranged
wherever considered necessary to conform to the figures presented
in the current year.
' These financial statements have been prepared in accordance with
IndAS as notified under the Companies (Indian Accounting Standards)
Rule, 2015 read with Section 133 of the Companies Act, 2013.
(B) Basis of preparation
These financial statements have been prepared on the historical cost basis,
except for
(i) certain financial instruments which are measured at fair values at the
end of each reporting period, as explained in the accounting policies
below.
(ii) Defined benefit plans - plan assets measured at fair value.
Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date.
(C) Use of estimates and judgments
The preparation of these financial statements in conformity with the
recognition and measurement principles of IndAS requires the management
of the Company to make estimates and assumptions that affect the reported
amounts of income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimates are revised and future periods are affected.
Key sources of estimation of uncertainty at the date of the financial
statements, which may cause a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, is in respect
of impairment of investments, useful lives of property, plant and equipment,
valuation of deferred tax assets, provisions and contingent liabilities.
Dividend Declaration
Dividend on Preference Shares has been declared by the company on the
basis of sec 123 of the companies act 2013.
Impairment of investments
The Company reviews its carrying value of investments carried at amortized
cost annually, or more frequently when there is indication for impairment. If
the recoverable amount is less than its carrying amount, the impairment loss
is accounted for.
The company in total has invested in bonds in the earlier years However,
due to external factors arising subsequent to this period there is variation
in the market price / realizable value of some of its investments. On the
grounds of such external factors , the excess/reduction of carrying value
over recoverable amount is accounted every year as “Impairment Loss /
(Gain) on financial instruments and Exceptional Items “.
Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant and equipment at the
end fo each reporting period. This reassessment may result in change in
depreciation expense in future periods.
Valuation of deferred tax assets
The Company reviews the carrying amount of deferred tax assets at the
end of each reporting period. A deferred tax asset shall be recognized for
all deductible temporary differences and unused losses to the extent that it
is probable that taxable profit will be available against which the deductible
temporary difference and unused losses can be utilized.
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