2 BASIS OF PREPARATION AND MEASUREMENT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
The Audited financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention.
The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
The Audited Financial Information has been compiled by the Management from the audited financial statements of the Company for the years ended
March 31st, 2024 and March 31st, 2025 and approved by the respective Board of Directors of the company.
The preparation of these financial information in conformity with Indian GAAP requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of
judgment or complexity, or area where assumptions and estimates are significant to these financial statements are disclosed in notes to the financial
statements.
These financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities (including investments),
defined benefit plans, plan assets and share-based payments.
All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle and other criteria set out in the
Schedule III of the Companies Act, 2013.
The Audited Financial Statements are presented in Rs. lakhs, except when otherwise indicated.
2.2 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 recognized in the periods in which the results are
known/ materialize.
2.3 Current versus non-current classification
The Company presents assets and liabilities in the Balance Sheet based on the current/non-current classification
An asset is treated as current when:
• It is expected to be realised or intended to be sold or consumed in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is expected to be realised within twelve months after the reporting period; or
• It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
Current assets include the current portion of non-current financial assets. The Company classifies all other assets as non-current.
A liability is treated 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.
Current liabilities include current portion of non-current financial liabilities. The Company classifies all other liabilities as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has
identified twelve months as its operating cycle for the purpose of current / non-current classification of assets and liabilities.
2.4 Investments
Current investments are carried at lower of cost and quoted/ fair market value, compared investment wise. Long term Investments are stated at cost.
Provision for diminution in the value of long term investment is made only if such a decline is other than a temporary.
2.4 Property, plant and equipment
i) All property, plant and equipment are stated at original cost of acquisition/installation (net of input credits availed) less accumulated depreciation
and impairment loss, if any, except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes,
duties, freight and other incidental expenses that are directly attributable to bringing the asset to its working condition for the intended use and
estimated cost for decommissioning of an asset.
ii) Subsequent expenditure is capitalised only if it is probable that the future economic benefit associated with the expenditure will flow to the
Company.
2.5 Impairement of Assets
The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the
company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit
to which the asset belongs is less than it carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an
Impairment Loss and is recognized in statement of profit and loss. If at the balance sheet date there is an indication that if previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the lower of recoverable amount and the carrying
amount that would have been determined had no impairment loss been recognized.
2.6 Cash and cash equivalents
(i) Cash and cash equivalents in the balance sheet comprise cash at bank and on hand, short-term deposit with original maturity upto three months and
fixed deposit with sweep in mode which are subject to insignificant risk of changes in value.
(ii' For the purpose of presentation in the statement of cash flows, cash and cash equivalents consists of cash and short-term deposit, as defined above,
net of outstanding bank overdraft as they are considered as an integral part of Company's cash management.
2.7 Revenue recognition
Revenue from operations is accounted for on the basis of billings to consumers and includes unbilled revenues accrued up to the end of the
accounting year.
i) Sale of services
Revenue is measured at the fair value of the consideration received or receivable for services rendered, net of discounts to customers. Revenue from
the services is recognised when the Company performs its obligations to its customers and the amount of revenue can be measured reliably and
recovery of the consideration is probable. The timing of such recognition in case of of services, in the period in which such services are rendered.
ii) Other income
Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable interest rate. Dividend
income is accounted for when the right to receive is established.
2.8 Taxes on Income
The tax expense for the period, comprising of the current tax and deferred tax is included in determining the net profit for the year. Provision for the
current tax is based on tax liability computed in accordance with relevant tax rates and tax laws. Provision for deferred tax is made for all timing
differences arising between taxable incomes and accounting income at rates that have been enacted or substantively enacted as of the balance sheet
date. Deferred tax assets are recognized only if there is a certainty that they will be realized and are reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
2.9 Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference
dividends and attributable taxes) by the weighted average number of equity shares outstanding during all the period presented. For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of
shares outstanding during all the period presented are adjusted for the effects of all dilutive potential equity shares except when the results would be
anti-dilutive.
|