1. SIGNIFICANT ACCOUNTING POLICIES:
a) Background
Slone Infosystems Limited (“the Company”) formerly known as Slone Infosystems Private Limited was incorporated on 29th
December 2022. It is a supplier primarily engaged in supplying computer and computer peripheral devices along with supply
of installation and allied services to various customers.
During the FY 2024-25 The company has issued under SME Initial Public Offerings (IPO) 14,00,000 Equity Shares of Rs.
10/- each at a premium of Rs.69/- per share.
b) Basis of preparation of Financial statements:
These financial statements have been prepared under the historical cost convention on the accrual basis of accounting
and in accordance with the accounting principles generally accepted in India (Indian GAAP) to comply with the Accounting
Standards specified under Section 133 of the Companies Act, 2013 (the ‘Act') read with Companies (Accounting Standards)
Rules, 2006, as amended (“Accounting Standards”) and the relevant provisions of the Act.
c) Use of Estimates:
The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
income and expenses during the year. 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 recognised in the periods in which the results are known / materialise.
d) Revenue Recognition:
Revenue (income) is recognised when no significant uncertainty as to determination and realisation exists.
Revenue from sale of services is recognized by raising invoices on ensuring that all significant contractual obligations have
been satisfied. The sale value is recognized exclusive of GST and such other levies.
e) Property, Plant and Equipment:
Property, Plant and Equipment are stated at the cost of acquisition less accumulated depreciation, amortization, and
impairment loss, if any. Property, Plant and Equipment are accounted at cost of acquisition inclusive of inward freight,
duties, taxes and other incidental expenses related to acquisition and installation of fixed assets incurred to bring the assets
to their working condition for their intended use.
f) Intangible Assets:
Intangible assets are stated at their cost of acquisition or internal generation, less accumulated amortisation and accumulated
impairment losses thereon. An intangible asset is recognized, where it is probable that the future economic benefits
attributable to the asset will flow to the enterprise and where its cost can be reliably measured.
g) Depreciation / Amortization:
Depreciation on Property, Plant & Equipment is provided to the extent of depreciable amount on the Straight Line Method
(SLM), based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
h) Impairment of assets:
Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible)
may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is
considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the asset / cash
generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable
amount. Recoverable amount is higher of an asset's or cash generating unit's net selling price and its value in use. Value in
use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its
disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication
that an impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased..
i) Borrowing Cost:
Borrowing Cost attributable to acquisition and constriction of qualifying assets, are capitalized as a part of the cost of such
asset up to the date when such asset are ready for the intended use. Long term finance cost ancillary to arrangement of long
term borrowing are amortized over period of borrowing. Other borrowing cost are charged to the statement of profit and
loss.
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