10. Provisions, Contingent Liabilities and Contingent Assets: (AS-29)
Provisions are recognized only when there is a present obligation as a result of past events
and when a reliable estimate of the amount of the obligation can be made.
Contingent Liabilities is disclosed in Notes to the account for:
i. Possible obligations which will be confirmed only by future events not wholly
within the control of the company or
ii. Present Obligations arising from past events where it is not probable that an
outflow of resources will be required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.
Contingent assets are not recognized in the financial statement since this may result in the
recognition of the income that may never be realized.
11. Intangible Assets :(AS 26)
(a) Recognition and Measurement
Intangible assets are recognized when it is probable that future economic benefits
attributable to the asset will flow to the Enterprise and the cost of the asset can be
measured reliably.
Separately acquired intangible assets are measured initially at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any.
(b) Research and Development Costs
Expenditure on research phase activities is recognized as an expense in the Statement of
Profit and Loss as incurred.
Development expenditures arising from an internal project are capitalized and recognized
as an intangible asset if, and only if, the Enterprise can demonstrate all of the following:
i. The technical feasibility of completing the intangible asset so that it will be
available for use or sale;
ii. Its intention to complete the intangible asset and use or sell it;
iii. Its ability to use or sell the intangible asset;
iv. How the intangible asset will generate probable future economic benefits
(including the existence of a market for the output of the asset, the asset itself, or
its internal usefulness);
v. The availability of adequate technical, financial, and other resources to complete
the development and to use or sell the asset; and
vi. Its ability to measure reliably the expenditure attributable to the intangible asset
during its development.
Capitalized development costs are stated at cost less accumulated amortization and
impairment.
12. Foreign Exchange Transactions (AS 11) :
Foreign currency transactions are recorded in the reporting currency by applying the
exchange rate between the reporting currency and the foreign currency at the date of the
transaction, in accordance with AS 11- The Effects of Changes in Foreign Exchange
Rates.
Monetary items denominated in foreign currencies outstanding at the Balance Sheet date
are translated at the closing rate. Non-monetary items that are measured in terms of
historical cost in a foreign currency are reported using the exchange rate at the date of the
transaction.
Exchange differences arising on the settlement of monetary items or on translating
monetary items at rates different from those at which they were initially recorded during
the period, or reported in previous financial statements, are recognized as income or
expense in the period.
13. Earnings per share:
Basic earnings per share is computed by dividing the net profit for the period attributable
to the equity shareholders of the Company by the weighted average number of equity
shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that have changed the
number of equity shares outstanding, without a corresponding change in resources.
14. Material Events:
Material events occurring after Balance Sheet date are taken into cognizance for better
presentation of financial statement and full disclosers.
15. General:
Except wherever stated, accounting policies are consistent with the accounting standards and have
been consistently applied.
The assertions in the financial statements, including the outstanding balances and closing balances
for transactions may be reclassified for better presentation and disclosure purposes.
(B) Notes on Financial Statements
1. The classification of creditors as micro and small enterprise has been given to the parties from
whom the confirmation has been received regarding their classification as per MSMED Act.
9. The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.
10. The Company has not declared any dividends for year FY 2025-26.
11. Previous year figures were regrouped/rearranged wherever necessary.
12. The figures stated in financials have been rounded off to the nearest decimal (in Lakhs)
wherever required
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