1. MaterialAccounting Policies:
1.1. Statement of Compliance:
These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as per
the Companies (Indian Accounting Standard) Rules, 2015 notified under section 133 ofthe Companies Act 2013,
amendments there to and other relevant provisions ofthe Act.
1.2. Basis of Preparation of Financial Statements.
These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as
specified under section 133 ofthe CompaniesAct2013 and other relevantprovisions ofthe Act.
These Ind AS Financial statements have been prepared on a going concern basis using historical cost convention and
on an accrual method of accounting except for certain financial assets and liabilities that are measured at fair values at
the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been
consistently except where a newly issued accounting standard is initially adopted or a revision to an existing standard
requires a change in the accounting policy hither to in use.
1.3. Functional and presentation currency
The financial statements are presented in INR which is also the Company functional currency and all values are in
Rupees in lakhs except when otherwise indicated.
1.4. Classification ofAssets and Liabilities as Current and Non Current:
The Company has determined its operating cycle as 12 months for the purpose of classification of current and non¬
current assets and liabilities. This is based on the nature of product and the time between the acquisition of
inventories for processing and their realization in cash and cash equivalents.
Deferred tax assets and deferred tax liabilities are classified as non -current assets and liabilities.
1.5. Use of Estimates & Judgments:
The estimates and Judgments used in the preparation of the financial statements are continuously evaluated by the
Company and are based on historical experience and various other assumptions and factors (including expectations
of future events) that the Company believes to be reasonable under the existing circumstances.
1.6. Property, Plant and Equipment-Tangible Assets:
i. Property, Plant and Equipment other than land are stated at cost less accumulated depreciation and
impairment losses if any. Cost comprises of purchase price and any attributable cost of bringing the assets
to its working condition for its intended use.
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31“ MARCH, 2025
ii. Capital Work In Progress in respect of assets which are not ready for their intended use are carried at cost,
comprising of direct costs, related incidental expenses and attributable interest.
iii. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated
with the expenditure will flow to the Company.
Depreciation and Amortization Method:
Depreciation is provided on Straight Line Method on the basis of useful lives of such assets specified in Schedule II
to the Companies Act, 2013 except the assets costing Rs. 5000/- or below on which depreciation is charged @100%.
Depreciation on additions is being provided on pro rata basis from the date of such additions. Depreciation on assets
sold, discarded or demolished during the year is being provided up to the date on which such assets are sold,
discarded or demolished.
1.7. Intangible Assets:
Intangible assets are stated at cost less accumulated amortization. Cost includes any expenditure directly attributable
on making the asset ready for its intended use.
Intangible assets are amortized over their useful life.
1.8. Impairment ofAssets
The carrying values of assets/cash generating units at each balance sheet date are reviewed for Impairment if any
indication of impairment exists. An asset is treated as impaired when the carrying cost of asset exceeds its
recoverable value.
Recoverable value: Recoverable value being higher of value in use and fair value less cost of disposal. Value in use is
computed at net present value of cash flow expected over the balance useful life of the assets. An impairment loss is
recognized as an expense in the Statement of profit and loss in the year in which an asset identified as impaired.
1.9. Cash & Cash Equivalents:
For the purpose of presentation in the statement of cashflows, cash and cash equivalents includes cash on hand,
deposits held at call with principal institutions, other short term highly liquid investments with original maturities of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
1.10. Trade Receivable:
Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using effective
interest method, less provision for impairment.
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31“ MARCH, 2025
1.11. Inventory:
Inventories of raw materials, consumable stores and packing materials are valued at cost on weighted average
method, finished goods and work in process are valued at cost on weighted average method or realisable value
whichever less. Jigs & Fixtures and patterns are valued after providing for amortisation at 20% and 10% respectively
under written down value method. Initial tools were capitalised and amortised at 10% on written down value and
further issue of tools are charged to revenue as and when issued.
1.12. Financial Instrument:
A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity
instrument of another entity.
a. FinancialAsset:
Initial recognition and measurement:
All financial instruments are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through statement of profit and loss transaction costs that are attributable to the acquisition of the financial
asset, purchase or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place are recognized on the trade date i.e. the date that company commits to purchase or
sell the asset.
Subsequent Measurement:
For the purpose of subsequent measurement financial assets are classified as measured at:
1) Amortised cost
2) Fairvaluethroughprofitandloss(FVTPL)
3) Fair value through Other Comprehensive Income (FVTOCI)
FinancialAsset measured at amortized cost:
Financial Assets held within a business model whose objective is to hold financial assets in order to collect
contractual cash flow and the contractual terms ofthe financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding are measured at amortized cost using
effective interest rate (EIR) method. The EIR amortization is recognized as finance income in the statement of Profit
& Loss.
The company while applying above criteria has classified all the financial assets (except investments in equity share)
at amortized cost.
Financial Assets Measured at fair value through other comprehensive Income:
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets
collecting contractual cash flow that are solely payment of principal and interest, are subsequently measured at fair
value through other comprehensive income. Fair value movements are recognized in the other comprehensive
income (OCI) interest income measured using the EIR method and impairment losses, if any are recognized in the
statement of Profit and loss. On derecognition, cumulative gain or loss previously recognised in OCI is reclassified
from the equity to ‘other income’ in the statement of profit and loss.
Financial Assets at fair value through profit or loss (FVTPL):
Financial Asset are measured at fair value through profit & loss if it does not meet the criteria for classification as
measured at amortized cost or at FVTOCI. All fair value changes are recognized in the statement of profit & loss.
De-recognition of Financial Assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the contractual rights to receive the cash flows from the asset.
Impairment of FinancialAssets:
In accordance with IndAS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the debt instruments, that are measured at amortized cost e.g., loans, debt
securities, deposits, trade receivables and bank balance.
Expected credit loss is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive.
The management uses a provision matrix to determine the impairment loss on the portfolio of trade and other
receivable. Provision matrix is based on its historically observed expected credit loss rates over the expected life of
the trade receivables and is adjusted for forward looking estimates.
Expected credit loss allowance or reversal recognized during the period is recognized as income or expense, as the
case may be, in the statement of profit and loss. In case of balance sheet, it is shown as reduction from the specific
financial asset.
b. Financial Liabilities
Initial recognition and measurement:
Financial liabilities are recognized initially at fair value plus any transaction cost that are attributable to the
acquisition ofthe financial liability except financial liabilities at FVTPLthat are measured at fair value.
Subsequent Measurement:
Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial Liabilities carried
at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the statement
ofprofit and loss.
Financial Liabilities at amortized cost:
Amortized cost for financial liabilities represents amount at which financial liability is measured at initial
recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest
method of any difference between the initial amount and the maturity amount.
All the financial liabilities of the company are subsequently measured at amortised cost using effective interest
method.
De recognition of Financial Liabilities
A financial liability shall be de recognized when, and only when, it is extinguished i.e. when the obligation specified
in the contract is discharged or cancelled or expires.
1.13. Foreign Currency Transactions:
The functional and presentation currency of the Company is Indian Rupee. Transactions in foreign currency are
accounted for at the exchange rate prevailing on the transaction date. Gains/losses arising on settlement as also on
translation of monetary items are recognised in the Statement of Profit and Loss.
1.14. Borrowing Costs:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized 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. All other borrowing costs are recognized as an expense in the period in which they are incurred.
1.15. Revenue Recognition:
Revenue is recognized when the significant risks and rewards of ownership are transferred to buyer. Revenue can be
reliably measured and it is probable that future Economic benefits will flow to the Company.
a. Sale of Products:
Revenue from the sale of goods measured fair value of consideration received or receivable net of returns, trade
discounts and allowances, and excluding taxes collected on behalf of Government.
b. Interest Income:
Interest on deposits with Government departments and financial Institutions are recognized in statement of profit and
loss when the right to receive/receivable during the period.
1.16 Employee Benefits:
Short-term employee benefits are expensed as the related service is provided. A Liability is recognised for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
a. Defined Contribution Plans:
Contribution towards provident fund for employees is made to the regulatory authorities, where the company has no
further obligations. Such benefits are classified as defined Contribution schemes as the company does not carry any
further obligations, apart from the Contributions made on a monthly basis.
b. Defined benefit plans:
Gratuity liability is defined benefit obligation and is provided on the basis of an actuarial valuation on projected unit
credit method made at the end of each year. The Company funds the benefit through contribution to LIC.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan
assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in
other comprehensive income (OCI) net interest expense (income) on the net defined liability (assets) is computed by
applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses
related to defined benefit plans are recognized in Statement ofprofit and loss.
1.17. Taxes on Income:
Tax expense comprises of current and deferred tax:
a. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian
Tax Act.
b. Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and liabilities
for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is measured
based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilized.
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