(a) Basis of Preparation
The financial statements have been prepared in accordance with the applicable Accounting
Standards notified under the Companies (Accounting Standards) Rules, 2021 and other
accounting principles generally accepted in India. These financial statements comply in all
material respects with the relevant provisions of the Companies Act, 2013.
The Company is listed on the SME Platform of Name of Exchange - e.g., NSE EMERGE / BSE
SME and, as per the Ministry of Corporate Affairs (MCA) Notification dated 16th February
2015, is exempted from the mandatory adoption of Indian Accounting Standards (Ind AS).
Accordingly, the Company has prepared its financial statements under the prevailing
Accounting Standards (AS) framework as applicable to Small and Medium-sized Companies.
The financial statements have been prepaspecial chars che remove red on a going concern
basis under the historical cost convention, unless otherwise stated.
(b) Use of Accounting Estimates
The preparation of financial statements in conformity with Indian GAAP requires
management to make judgments, estimates, and assumptions that affect the reported
amounts of assets, liabilities, income, expenses, and the accompanying disclosures as at the
reporting date.
These estimates and underlying assumptions are based on management’s best knowledge of
current events and circumstances and are reviewed on an ongoing basis. Revisions to
accounting estimates, if any, are recognized prospectively in the period in which the
estimates are revised and in future periods affected.
Due to the inherent uncertainties involved in making estimates, actual results may differ
from those estimates.
(c) Revenue Recognition
(As per AS 9 - “Revenue Recognition", under Companies (Accounting Standards) Rules, 2021,
applicable to companies not covered under Ind AS)
Revenue is recognized when it is reasonably certain that ultimate collection will occur, and
when significant risks and rewards of ownership of goods or services have been transferred
to the buyer, as per the terms of the contract.
Sale of Goods: Revenue from sale of goods is recognized when the goods are delivered and
the property in goods passes to the buyer, typically on dispatch or delivery, depending on
the agreed terms.
Other Operating Revenue: Any ancillary operating revenue is recognized on accrual basis
when the right to receive is established.
Interest Income: Recognized on a time proportion basis, using the effective interest rate
method.
Other Income: Recognized on accrual basis, unless the collection is uncertain.
All revenue is recognized net of Goods and Services Tax (GST) and other applicable indirect
taxes.
(d) Investments
(As per AS 13 - "Accounting for Investments” under Companies (Accounting Standards)
Rules, 2021)
Investments are classified as Current or Non-Current (Long-Term) based on the intended
holding period.
Non-Current / Long-Term Investments are carried at cost. A provision for diminution in
value is made if, in the opinion of the management, such decline is other than temporary in
nature.
Current Investments are carried at the lower of cost and fair value, determined individually
for each investment.
On disposal of an investment, the difference between the carrying amount and the net sale
proceeds is recognized as income or expense in the Statement of Profit and Loss.
(As per AS 10 - "Property, Plant and Equipment" under Companies (Accounting Standards) Rules,
2021)
Property, plant and equipment are stated at historical cost, net of accumulated depreciation
and impairment losses, if any. Historical cost includes: Purchase price, Import duties and
non-refundable taxes, Directly attributable costs to bring the asset to its working condition
for intended use. Subsequent expenditures are capitalized only if they result in enhanced
future economic benefits from the asset. Otherwise, such costs are recognized in the
Statement of Profit and Loss as incurred.
Assets individually costing Rs.5,000 or less are depreciated at 100% in the year of
acquisition.
Depreciation is provided using the Written Down Value (WDV) method in accordance with
the rates and useful lives specified in Schedule II of the Companies Act, 2013 or based on
management's best estimate where different.
General Machinery: 18.10% WDV (15-year useful life)
Camera / Label Printer: 25.89% WDV
Low-use assets (e.g., furniture, office equipment): Custom rates per management estimate
Assets purchased close to year-end are depreciated proportionately.
The useful life and residual value of assets are reviewed annually and adjusted, if
appropriate.
Capitalization of Machinery Not Yet Put to Use
The following assets were capitalized during the year ended 31st March 2025 but were not
ready for intended use as at the Balance Sheet date. Accordingly, no depreciation has been
charged on these assets during the year:
CCM2 Machinery (Feb '25)
CCM3 Machinery (Technopack)
PMV Machine (Feb '25)
These assets are carried at cost under Property, Plant and Equipment and will be
depreciated commencing from the date they are available for use as per the Company's
accounting policy in line with AS 10.
Disposal of Machinery (PET & CAP OLD):
The Company sold its PET & CAP OLD machinery during the financial year 2024-25. The
asset was used only up to 30th September 2024, and accordingly, depreciation was charged
on a pro-rata basis up to that date. The machinery was derecognized from the books upon
sale, and the gain arising on disposal (i.e., excess of sale proceeds over the net carrying
value) has been recognized under "Other Income" in the Statement of Profit and Loss in
accordance with the provisions of AS 10 - Property, Plant and Equipment.
(f) Inventories
(As per AS 2 - “Valuation of Inventories" under Companies (Accounting Standards) Rules, 2021)
Inventories are valued at the lower of cost and net realizable value (NRV). Cost is determined
using the First-In First-Out (FIFO) method.
Cost includes all costs of purchase, conversion, and other costs incurred in bringing the
inventories to their present location and condition.
Net Realizable Value (NRV) is the estimated selling price in the ordinary course of business,
less the estimated costs of completion and the costs necessary to make the sale.
The opening and closing inventory quantities, including any shortages or production losses,
are taken, valued, and certified by the management based on physical verification conducted
at or near the reporting date.
(g) Taxation
(As per AS 22 - “Accounting for Taxes on Income", under Companies (Accounting Standards) Rules,
2021)
Tax expense for the period comprises both current tax and deferred tax, and is recognized in
the Statement of Profit and Loss.
Current Tax is the amount of income tax payable on the taxable income for the year,
determined in accordance with the provisions of applicable tax laws.
Deferred Tax is recognized on all timing differences between the accounting income and
taxable income, subject to the principle of prudence for recognizing deferred tax assets
(DTAs).
Deferred Tax Assets are recognized and carried forward only when there is reasonable
certainty of availability of future taxable income against which such assets can be realized.
DTAs arising from unabsorbed depreciation and carry forward of losses are recognized only
if there is virtual certainty, supported by convincing evidence, of future taxable income.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by the Balance Sheet date.
The Company reassesses unrecognized deferred tax assets, if any, at each Balance Sheet date.
Offsetting:
Current tax assets and liabilities are offset only when there is a legally enforceable right to
set off, and the Company intends to settle on a net basis.
Deferred tax assets and liabilities are offset when they relate to the same governing taxation
laws and the Company has a legally enforceable right to set off current tax assets against
current tax liabilities.
|