7) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when there is a present legal or constructive obligation as a result of a past event and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Contingent liabilities are disclosed on the basis of judgment of management/ independent experts These are reviewed at
each balance sheet date and are adjusted to reflect the current management estimate
Provisions for warranty-related costs are recognized when the product is sold to the customer Initial recognition is based
on scientific basis as per past trends of such claims The initial estimate of warranty-related costs is revised annually.
8) Foreign Currency Transactions:
The financial statements of the Company are presented In INR, which is also the functional currency (i.e.. the currency of
the primary economic environment in which the Company operates). In preparing the financial statements, transactions in
currencies other than the entity’s functional currency are recognized at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the
rates prevailing at that date. Non-monetary items denominated in foreign currency are reported at the exchange rate ruling
on the date of transaction.
9) Cash Flows and Cash and Cash Equivalents:
Statement of cash flows is prepared in accordance with the indirect method prescribed in the relevant IND AS. For the
purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, cheques and
drafts on hand, deposits held with Banks 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. However. Bank overdrafts are to
be shown within borrowings in current liabilities in the balance sheet for the purpose of presentation.
10) Revenue Recognition:
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price allocated to that
performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on
account of delayed delivery of goods/ product discounts and schemes offered by the company as part of the contract with
the customers. The Company recognises changes in the estimated amounts of obligations for discounts in the period in
which the change occurs Revenue also excludes taxes collected from customers.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured, regardless of when payment Is being made.
Revenue from contract with customers is recognized upon transfer of control of promised products or services to
customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or
services.
Revenue from the sate of goods is recognized at the point in time when control is transferred to the customer
Revenue from sale of services is recognised when the activity is performed
Revenue in excess of Invoicing are classified as contract assets while Invoicing in excess of revenues are classified as
contract liabilities.
11) Employee Benefits:
a) Short-term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering services are classified as short-term
employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives
etc., are recognized during the period in which the employee renders related services and are measured at
undiscounted amount expected to be paid when the liabilities are settled.
b) Long-Term Employee Benefits:
The cost of providing long-term employee benefit such as earned leave is measured as the present value of expected
future payments to be made in respect of services provided by employees up to the end of the reporting period. The
expected costs of the benefit is accrued over the period of employment using the same methodology as used for
defined benefits post employment plans. Actuarial gains and losses arising from the experience adjustments and
changes in actuarial assumptions are charged or credited to profit or loss section of the Statement of Profit or Loss in
the period in which they arise except those included in cost of assets as permitted. The benefit is measured annually
by independent actuary
c) Post-Employment Benefits:
The Company provides the following post employment benefits:
i) Defined benefit plan i.e., gratuity
ii) Defined contributions plan I.e., provident fund
d) Defined benefits Plans:
The cost of providing benefits on account of gratuity obligations is determined using the projected unit credit method
on the basis of actuarial valuation made at the end of each balance sheet date.
Re-measurements comprising of actuarial gains and losses arising from experience adjustments and change in
actuarial assumptions, the effect of change in assets ceiling (if applicable) and the return on plan asset (excluding net
interest as defined above) are recognized in other comprehensive income (OCI) except those Included in cost of
assets as permitted in the period in which they occur Re-measurements are not reclassified to the Statement of Profit
and Loss in subsequent periods.
e) Defined Contribution Plans
Payments to defined contribution retirement benefit plans, viz.. Provident Fund are recognized as an expense when
employees have rendered the service entitling them to the contribution.
12) Taxes on Income:
Income tax expense represents the sum of income tax currently payable and deferred tax. Tax is recognized in the profit or
loss section of the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or in
other comprehensive income
a) Current Tax:
Current tax is the expected tax payable/ receivable on the taxable income/ loss for the year using applicable tax rates
for the relevant period, and any adjustment to taxes in respect of previous years. Tax on Income for the current year is
determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of
the relevant tax laws and based on the expected outcome of assessments/ appeals.
b) Deferred Tax:
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the
balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
recognized for all taxable temporary differences Deferred tax assets are recognized for all tax deductible temporary
differences, unabsorbed losses and unabsorbed depreciation to the extent that it is probable that future taxable profits
will be available against which these deductible temporary differences, unabsorbed losses and unabsorbed
depreciation can be utilized
13) Earnings per Share:
Basic earnings per share are calculated by dividing the total profit attributable to equity shareholders of the Company by
the weighted average number of equities shares outstanding during the year. Basic earnings per share are calculated
separately for both continuing and discontinuing operations.
14) Financial Instruments:
a) Financial Assets
A financial asset inter-alia includes any asset that is cash, equity instrument of another entity or contractual rights to
receive cash or another financial asset or to exchange financial asset or financial liability under condition that are
potentially favorable to the Company.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. However. Trade
receivables that do not contain a significant financing component are measured at Transaction price Transaction
costs of financial assets earned at fair value through profit or loss are expensed in Profit or Loss.
Subsequent measurement
Far purposes of subsequent measurement financial assets are classified in three categories:
Financial assets measured at amortized cost
Financial assets at fair value through OCI
Financial assets at fair value through profit or loss
Financial assets measured at amortized cost
Financial assets are measured at amortized cost if the financials asset is held within a business model whose
objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. These financials assets are amortized using the effective interest rate (EIR) method, less
impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortization is included in finance income in the statement of profit
or loss.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are mandatory measured at fair value through other comprehensive income if the financial asset is
held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding At initial recognition an irrevocable
election is made (on an instrument-by instrument basis) to designate investments in equity instruments other than
held for trading purpose at FVTOCI. Fair value changes are recognized in the other comprehensive Income (OCI). On
derecognition of the financial asset other than equity instruments, cumulative gain or loss previously recognized in
OCI is reclassified to Profit or Loss
Financial assets at fair value through profit or loss(FVTPL)
Any financial asset that does not meet the criteria for classification as at amortized cost or as financial assets at fair
value through other comprehensive income, is classified as financial assets at fair value through profit or loss.
Derecognition
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity.
Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model on the following:
• Financial assets that are measured at amortized cost.
• Financial assets (excluding equity instruments) measured at fair value through other comprehensive income
(FVTOCI).
• ECL is measured through a loss allowance on a following basis after considering the value of recoverable
security
• The 12 month expected credit losses (expected credit losses that result from those default events on the financial
instruments that are possible within 12 months after the reporting date).
• Full life time expected credit losses (expected credit losses that result from all possible default events over the life
of financial instruments).
The Company follows 'simplified approach* for recognition of impairment on trade receivables or contract assets
resulting from normal business transactions. It recognizes impairment loss allowance based on lifetime ECLs at each
reporting date, from the date of initial recognition.
For recognition of impairment loss on other financial assets, the Company determines whether there has been a
significant increase in the credit risk since initial recognition. If credit risk has increased significantly, lifetime ECL is
provided For assessing increase in credit risk and impairment loss, the Company assesses the credit risk
characteristics on instrument-by-instrument basis.
The Company recognizes that certain accounts receivable may ultimately become uncollectible. In accordance with
the Direct Write-Off Method, bad debts are recognized as an expense only when specific accounts are determined to
be uncollectible. This method is used for simplicity and when bad debts are infrequent or immaterial
Impairment loss allowance (or reversal) recognized during the period is recognized as expense/income in profit or
loss.
During the financial year, the Company has written off certain trade receivables which were assessed as
irrecoverable
The amount has been recognized as an expense in the Statement of Profit and Loss
writing of Trade Receivable of Bad debts are deductible for tax purposes only when they are specifically written off in
accordance with lax regulations. For the year ended 31/03/2025. bad debts of Rs.89.90.111/- were written off as Bad
Debts and has been considered in the computation of current tax expenses for the year A current tax benefit of
22.47.528/- (based on applicable tax rate @ 25%) has been recognized, as these bad debts qualify for deduction
under the Income-tax Act. 1961.
b) Financial Liabilities
The Company's financial liabilities Include loans and borrowings, trade payable, accrued expenses and other
payables.
Initial recognition and measurement
All financial liabilities at initial recognition are classified as financial liabilities at amortized cost or financial liabilities at
fair value through profit or loss, as appropriate. All financial liabilities are recognized initially at fair value and. in the
case of loans and borrowings and payables, net of directly attributable transaction costs.
Financial Liabilities classified as Amortised Cost:
All Financial Liabilities other than derivatives are measured at amortised cost at the end of subsequent accounting
periods. Interest expense that is not capitalised as pan of costs of assets is included as Finance costs in Profit or Loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged / cancelled I expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de recognition of the
original liability and the recognition of a now liability The difference in the respective carrying amounts is recognized in
of profit or loss.
15) Segment Reporting:
The Company identifies segments as operating segments whose operating results are regularly reviewed by the
Management to make decisions about resources to be allocated to the segment and assess its performance and for
which discrete financial information is available The accounting policies adopted for segment reporting are in line with the
accounting policies of the Company. Segment assets include all operating assets used by the business segments and
consist of properly plant and equipment intangible assets debtors and inventories. Segment liabilities include the
operating liabilities that result from operating activities of the business segment. Assets and Liabilities that cannot be
allocated between the segments are shown as part of unallocated corporate assets and liabilities, respectively. Income/
Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are
reflected as unallocated corporate income /expenses.
16) Recent Accounting Pronouncements:
Ministry of Corporate Affairs ('MCA') notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time For the year ended 31' March. 2025. MCA has not
notified any new standards or amendments to the existing standards applicable to the Company
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