(i) Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation.
A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of resources. The Company also
discloses present obligations for which a reliable estimate cannot be made. When there is a possible
obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.
(k) Foreign currency translation
The Company's financial statements are presented in Indian Rupee, which is also the Company's
functional currency. The recognition and conversion process of foreign currency are not been
mentioned here as the company doesn't deal with any foreign currency transactions during the
aforesaid period.
(l) Labour Law Coverage
The Company have analyzed the applicability and recognition of Gratuity liability, Provident Fund,
Superannuation Payments, Employee State Insurance Schemes, etc. 'and have observed that the
number of employees engaged in the business operations are less than the statutory limits to make
the entity covered under the provisions of the respective Act.
With respect to payments of Provident Fund the entity ensures to discharge the statutory liability
within the due dates by creating a liability on the period ending monthly for the relevant months.
(m) Employee Stock Option Scheme
The Company does not operate Employee Stock Option Scheme hence there is no recognition or
revaluation pertaining to the ESOP Scheme.
(n) Leases
The determination of whether an arrangement is, or contains, a lease is based on the substance of
the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment
of the arrangement is dependent on these of a specific asset or assets and the arrangement conveys
a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company acting as a lessee.
A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the Company is classified
as a finance lease. All other leases are classified as operating leases. Basis of the above principle, all
leases entered into by the Company as a lessee have been classified as operating leases.
Lease payments under an operating lease is recognised on an accrual basis in the Statement of Profit
and Loss.
(o) Fair value measurement
The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.
Fair value is the price that would be received against sale of an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place in the accessible principal market or the most advantageous accessible market as
applicable.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data is available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy into Level I, Level II and Level III based on the lowest level
input that is significant to the fair value measurement as a whole. For a detailed information on the
fair value hierarchy.
For assets and liabilities that are fair valued in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of
the fair value hierarchy.
(p) Earnings Per Share
The Company reports basic and diluted earnings per share in accordance with Ind AS 33 on Earnings
per share. Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting preference dividend and attributable taxes) by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year
attributable to equity shareholders and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless they have been issued at a
later date. In computing the dilutive earnings per share, only potential equity shares that are dilutive
and that either reduces the earnings per share or increases loss per share are included.
As per our report of even date
For RSM AND ASSOCIATES Padam J Challani Swapna Pawan Kochar
Chartered Accountants Managing Director Director
FRN :002813S DIN :00052216 DIN :02262562
CA RENUKA RAMESH Ramachandran
Partner Chief Financial Officer/Company Secretary
M.No.205295
UDIN: 25205295BMJGNT9099
Place : Chennai
Date : 26.05.2025
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