Note No. 2-Material Accounting Policies:
2.1 Basis of Preparation and presentation of the Financial Statements:
These financial statements have been prepared in accordance with Indian Accounting Standards find AS") as notified under section
133 of the CompaniesAct, 2013 read with the Companies (Indian Accounting Standard) Rules, 2015 and the relevant provisions of the
Companies Act, 2013 ("the Act"). The financial statements are prepared in accordance with the historical cost convention, except for
certain items that are measured atfair value.
Company’s Financial Statements are presented in Indian Rupee, which is also its functional currency and all values are rounded to lakh,
except wherever otherwise indicated.
2.2 Use of Estimates
The preparation of financial statements in conformity with Ind AS requires that the management of the company make estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, intangible
assets, allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans and fair value measurement etc.
Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.
"All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of
products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company
has considered an operating cycle of 12 months.”
The financial statements for the year ended 31 st March, 2025 were approved by the Board of Directors and authorised for issue on 27th
May, 2025.
2.3 Property, Plantand Equipments:
Property, Plant and Equipments are stated at cost less accumulated depreciation and impairment tosses, if any. All expenditure
pertaining to project under construction and other preoperative expenses and losses including trial run expenses and interest cost (net of
income accrued) incurred during the construction period, unless otherwise stated, are capitalized till the commencement of commercial
production / till the date assets are putto use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from
the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit
and Loss.
2.4 Depreciation:
Depreciation on Property, Plant and Equipment has been provided on Straight Line method by considering revised useful life as
specified in Part 'C' of Schedule II to the CompaniesAct 2013.
2.5 Impairment of Non-financial Assets -Property, Plantand Equipment:
An asset is impaired when the carrying cost of the asset exceeds its recoverable value. An Impairment Loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired. The Impairment Loss recognized in earlier accounting periods is
reversed if there has been a change in the estimate of recoverable amount as specified in Ind AS 36 on 'Impairment of Assets'.
The carrying amount of assets is reviewed periodically at each balance sheet date if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.
After impairment, depreciation is provided on the revised carrying amount ofthe asset over its remaining useful life.
2.6 Financial Instruments:
I. FinancialAssets
a. Initial Recognition and Measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial
recognition. Purchase and sale of financial assets are recognised using trade date accounting. However trade receivables that do
not contain significant financing component are measured at transaction price.
b. Subsequent Measurement
I) Financialassetscarriedatamortized cost
Afinancial assets is measured at amortized cost if it is held within business model whose objective is to hold the asset in orderto
collect contractual cash flows and the contractual terms ofthe financial assets give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
ii) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms ofthe financial asset give rise on specified dates to
cash flow that are solely payments of principal and interest on the principal amount outstanding.
iii) Financial assets at fair value through profit or loss (FVTPL)
Afinancial asset which is not classifying in any ofthe above categories are measured at FVTPL.
c. Impairment of FinancialAssets
For evaluating impairment of financial assets the management ofthe company assesses if there is any significant increase in the
credit risks pertaining to respective financial assets and accordingly recognises necessary provisions whenever required based of
the company's past history of recovery, creditworthiness of the counter party and the existing market conditionsat thattime.
II. Financial Liabilities
a. Initial recognition and measurement
All financial liabilities are recognized affair value and in case of loans, net of directly attributable cost Fees of recurring nature are
directly recognised in the Statement of Profit and Loss as finance cosl
b. Subsequent measurement
Financial liabilities are carried at amortised cost using the effective interest method. Fortrade and other payables maturing within
oneyearfrom the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
c. Derecognition of Financial Instruments
Financial asset is derecognised on expiry of the contractual right to the cash flows from financial asset or transfer of the financial
asset where the transfer qualifies for derecognitbn under IND AS 109. A financial liability (or part of a financial liability) is
derecognized from the Company's Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires
or completes its life or if determined by the management that liability is no longer required to be paid.
2.7 Deferred Tax:
No provision for the deferred tax liability/ asset arising out of time difference has been made in the absence of reasonable certainty
that the taxable income will be generated by the company in nearfuture to offsetthe losses.
2.8 Revenue Recognition
I) Income from lease transactions is accounted on accrual basis, pro-rata for the period, at the rates implicit in the transaction.
ii) Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the group and the amount of income can be measured reliably.
2.9 Inventories:
Inventories are valued at the lower of cost and net realisable value. Cost of raw materials, components and consumables are
ascertained on a moving weighted average basis. Cost of in ventories also include all other costs incurred in bringing the inventories
to their present location and condition.
2.10 Tax Credits:
Goods & Service Tax credits is accounted by recording the capital assets/raw material, stores and spares acquired during the year
net of Input Tax Credit. GST credit has been recognised as non current assets and the same will be utilised for payments of future tax
liabilities.
2.11 Employee Benefits:
i) Defined Contribution Plans:
Retirement benefit in the form of Provident Fund and Pension Fund are defined contribution scheme and the contributions are
charged to the respective accounts ofthe yearwhen the contributions to the respective funds are due. There are no other short term
obligations other than the contribution payable against the funds.
ii) Defined Benefit Plans
Provision for Gratuity and Leave Encashment payable on retirement to the employees are made on the basis of actual period of their
service and at prescribed rates irrespective of their ineligibility due to short tenure of their service. The present value ofthe defined
benefit obligation is recognized in the balance sheet as a non-current liability, net of any plan assets. As at the reporting date, the
Company has recognized the entire defined benefit obligation in its financial statements; however, no separate fund or investment
has been set aside to meet these obligations.
2.12 Related Party Transaction:
Related party transaction as identified by the management within the meaning of IND AS-24 regarding “Related Party Disclosure”
are provided as per Note No. 36.
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