A Basic for Preparations
1 Statement of Compliance
The Financial Statements have been prepared in accordance with IND AS notified
under the Companies (Indian Accounting Standard) Rules, 2015. Accordingly, these
financial statements have been prepared in accordance with IND AS notified by section
133 of the Companies Act, 2013 read with relevant rules issued thereunder from time to
time, to the extent applicable to the company. The Company has prepared these
financial statements which comprise the Balance Sheet as at 31st March, 2025, the
Statement of Profit and Loss for the year ended 31st March, 2025, the Statement of
Cash Flows for the year ended 31st March, 2025 and the Statement of Changes in
Equity for the year ended as on that date, and accounting policies and other explanatory
information (tog ether hereinafter referred to as 'financial statements').
The Financial Statements are presented in Indian Rupees which is rounded off in Lakhs
as per requirement of Schedule III of the Act.
2 Use of Estimates
The preparation of the financial statements in conformity with IND AS requires
management to make estimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and
liabilities at the date of the financial statements and reported amounts of revenues and
expenses during the period. Appropriate changes in estimates are made as
management becomes aware of changes in circumstances surrounding the estimates.
Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the financial
statements.
Information about areas involving a higher degree of judgement or complexity or critical
judgements in applying accounting policies, as well as estimates and assumptions that
have the most significant effect to the carrying amounts of assets and liabilities,
contingent assets and liabilities, income and expenses are included in the following
notes:
a. Impairment of Financial Assets such as Trade Receivable.
b. Impairment of Non-Financial Assets.
c. Estimates of Tax Expenses and Liability.
d. Revenue Recognitions.
3 Current and Non-current Classification.
All assets and liabilities have been classified as current and non-current as per the Company's
normal operating cycle (twelve months) and other criteria set out in the schedule III to the Act.
The Company classifies all other liability as non-current. Deferred Tax Assets and Liabilities
are classified as Non-Current assets and Liabilities.
4 Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is
recognised to the extent that it is probable that the economic benefits will flow to the company
and the revenue can be reliably measured regardless of when the payment is being made.
The company bases its estimates on historical results, taking into consideration the type of
customer, the type of transaction and the specifics of each arrangement.
However, there has been no revenue recognised in FY-2024-25
Sale of Goods
Sales are recognised when substantial risk and rewards of ownership are transferred to
customer as per the terms of the contract, there is no continuing managerial involvement with
the goods. The Company retains no effective control of the goods transferred to a degree
usually associated with ownership and no significant uncertainty exists regarding the amount of
the consideration that will be derived from the sale of goods, incase of domestic customer, sales
take place when goods are dispatched or delivery is handed over to transporter, in case of export
customers, sales takes place when goods are shipped on board based on bill of lading.
Interest income
Interest Income from a financial asset is recognised when it is probable that the economic
benefit will flow to the Company and the amount of income can be reliably measured. Interest
income is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset's net carrying amount on
initiaI recognition.
5 Property, Plant& equipment and Intangible Assets
Property, plant and equipment are stated at cost, less accumulated depreciation /amortization
and impairment, if any. Costs directly attributable to acquisition are capitalized until the
property, plant and equipment are ready for use, as intended by management. If significant
parts of an item of Property, Plant & equipment have different useful lives, then they are
accounted for as separate items (major components) of Property, Plant & equipment.
6 Depreciation and Amortisation
The company depreciates property, plant and equipment over their estimated useful lives
using the written down value method. Depreciation on additions/deductions to property, plant
and equipment is provided on pro-rata basis from the date of actual installation or up to the
date of such sale or disposal, as the case may be.
7 Financial Instruments
The company recognizes financial assets and financial liabilities when it becomes a party to
the contractual provisions of the instrument. All financial assets and Financial liabilities are
recognized at fair value on initial recognition, except for trade receivables and security
deposits, which are initially measured at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities that are not at
fair value through Profit or Loss are added or deducted to the fair value of the financial assets
or financial liabilities as appropriate, on initial recognition. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities at fair value
through Profit or Loss are recognised immediately in profit and loss.
Financial Assets
The Company initially recognises loans and advances, deposits and debt securities
purchased on the date on which they originate. Purchases and Sale of the financial assets are
recognised on the trade date, which is the date on which the Company becomes the party to
the contractual provisions of the instrument. Financial assets are divided into the following
categories:
a. financial assets carried at amortised cost
b. financial assets at fair value through other comprehensive income
c. financial assets at fair value through profit and loss
Financial Assets like investments in Subsidiaries are measured at Costas allowed by Ind AS
27-Separate Financial Statements and hence are not fair valued.
a. financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within the
business model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding. These are non-derivative financial assets that are not quoted in an active
market. Any change in their value through impairment or reversal of impairment is
recognised in the statement of profit and loss.
b. financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are non-derivative
financial assets 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. Fair value movements are
recognised in the other comprehensive income (OCI). However, the Company
recognises interest income, impairment losses in the statement of profit and loss.
c. financial assets at fair value through profit and loss
Financial asset which is not classified in any of the above categories are subsequently
fair valued through profit and loss. It includes non-derivative financial assets that are
either designated as such or do not qualify for inclusion in any of the other categories of
financial assets. Gain and Losses arising from investments classified under this
category is recognised in the statement of profit and loss when they are sold or when the
investment is impaired.
Impairment of Financial Assets
In the case of impairment, any loss previously recognised in other comprehensive
income is transferred to the statement of profit and loss. Impairment losses recognised
in the statement of profit and loss on equity instruments are not reversed through the
statement of profit and loss. Impairment losses previously recognised on the debt
securities are reversed through the statement of profit and loss when the increase can
be related objectively to an event occurring after the impairment loss was recognised in
the statement of profit and loss.
Equity instruments measured at fair value through profit and loss that do not have a
quoted price in an active market and whose fair value can be reliably measured are
measured at cost less impairment at the end of each reporting period.
An assessment for impairment is undertaken atle ast at each balance sheet date.
Derecognition of Financial Instruments
The company de-recognises a financial asset when the contractual rights to the cash
flows from the financial asset expire or it transfers the financial asset and the transfer
qualifies for de-recognition. A financial liability (or a part of a financial liability) is de¬
recognised from the company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.
8 Inventory
Inventories are measured at lower of cost and net realisable value (NRV) after providing for
obsolescence, if any. Cost of finished goods and work-in-progress (WIP) includes all costs of
purchases, conversion costs and other costs incurred in bringing the inventories to their
present location and condition. Net Realizable Value is the estimated selling price in the
ordinary course of business less any applicable selling expenses.
Company does not have any inventory for FY-2024-25.
Borrowings are initially measured at fair value, net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in Profit or Loss over the period of
the borrowings using the effective interest method.
Borrowing Costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. Borrowing cost
includes exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the finance cost.
10 Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, deposits held at call with banks, other short
term highly liquid investments which are readily convertible into known amount of cash and
are subject to insignificant risk of change in value. Bank overdrafts are shown within
borrowings incurrent Liabilities on the balance sheet.
|