(n) Provisions and Contingent Liability :
A provision is recognised when enterprise has present obligation as a result of past event; it is probable that an outflow
of resources will be required to settle the obligations, in respect of which a reliable estimate can be made. Provisions are
determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will
be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly with in the control
of the Company or where any present obligation can not be measured in terms of future outflow of resources or where
a reliable estimate of the obligation can not be made.
(o) Grants :
Grants from the Government are recognised at their fair value where there is reasonable assurance that the grant will
be received and the Company will comply with all attached conditions.
(p) Accounting for Taxes on Income :
Tax expense for the year comprises of current tax and deferred tax. Current Income Tax is measured at the amount
expected to be paid to the tax authorities in accordance with Indian Income Tax Act.
Deferred Tax Assets and Liabilities are measured using tax rates and tax laws that have been enacted / substantively
enacted as on the balance sheet date. Deferred tax assets and liabilities are determined for all temporary timing difference
arising between the taxable income and accounting income. Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses, only if it is probable that future taxable amounts will be available to utilise
those temporary differences and losses. Deferred Tax Assets/Liabilities are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
Current and deferred tax is recognised in the statement of profit and loss, except to the extent that it related to the items
recognised in other comprehensive income or directly in equity.”
Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. The Company reviews the same at each
Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer
convincing evidence to the effect that Company will pay normal income tax during the specified period.
(q) Earnings per Share :
The Company reports basic and diluted earnings per equity share in accordance with Ind AS 33, on Earnings Per Share.
Basic earnings per equity share have been computed by dividing net profit after tax by the weighted average number
of equity shares outstanding for the year. Diluted earnings per equity share have been computed using the weighted
average number of equity shares and dilutive potential equity shares outstanding during the year.
(r) Impairment of non-financial assets :
The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired.
If any such condition exists, the Company estimates the recoverable amount of the assets. If the recoverable amount
of such assets or recoverable amount of cash generating units to which the assets belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the statement of profit and loss. If at the Balance Sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at lower of
historical cost or recoverable amount.
(s) Leases :
As a lessee
The Company's leases primarily consist of leases of land and office premises. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. At the date of commencement of
the lease, the Company recognizes a ROU and a corresponding lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short¬
term and/or low value leases, the Company recognises the lease payments as an operating expense on a straight-line
basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before
the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they
will be exercised.
The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. Currently,
ROU assets are being amortised over a period based on lease term being lower of lease term and estimated useful life
of underlying assets.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing activities in statement of cash flows.”
As a lessor
Lease income from operating leases where the Company is a lessor is recognized in income on a straight-line basis over
the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases.”
(t) Cash and cash equivalents :
For the purpose of presentation in the statement of cash flows, Cash and cash equivalents are cash, balances with bank
and short-term (three months or less from the date of placement), highly liquid investments that are readily convertible
into cash and which are subject to an insignificant risk of changes in value.
(u) Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss ) for the year is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.
(v) Non-current assets held for sale :
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower
of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising
from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically exempt
from this requirement. Non-current assets are not depreciated or amortised while they are classified as held for sale.
(w) Employee Benefits :
Short-term Obligations :
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Benefits such as salaries, performance incentives, etc., are recognized as an expense at the undiscounted
amount in the Statement of Profit and Loss of the year in which the employee renders the related service.
Other long-term employee benefit obligations
Long-term compensated absence of permanent employees is provided for on the basis of an actuarial valuation, using
the projected unit credit method, as at the date of the Balance Sheet. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss. Compensated
absence of badli workers is provided on accrual basis.
Defined Contribution Plans:
Employee benefits in the form of Provident Fund and Superannuation are considered as defined contribution plan and
the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective
funds are due.
Defined Benefit Plan
Retirements benefits in the form of Gratuity for eligible permanent employees is considered as defined benefit obligations
and are provided on the basis of actuarial valuation, using the projected unit credit method. Gratuity of badli workers
is determined on accrual basis based on the proportionate time of services rendered. The present value of the defined
benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the
end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in other comprehensive income.
(x) Business combinations - common control transactions
Business combinations involving entities that are under common control are accounted for using the 'pooling of interest'
method as follows:
- The assets and liabilities of The combining entities are reflected in their carrying amounts.
- No adjustments are made to reflect fair values, or recognise any new assets or liabilities. Adjustments are only
made to harmonise accounting policies.
- The financial information in the standalone financial statements in respect of prior periods is restated as if the
business combination had occurred from the beginning of the preceding period in the standalone financial
statements, irrespective of the actual date of the combination. However, where the business combination had
occurred after that date, the prior period information is restated only from that date.
- The balance of the retained earnings appearing in the standalone financial statements of the transferor is aggregated
with the corresponding balance appearing in the standalone financial statements of the transferee or is adjusted
against general reserve.
- The identity of the reserves are preserved and the reserves of the transferor become the reserves of the transferee.
- The difference, if any, between the amounts recorded as share capital issued plus any additional consideration in
the form of cash or other assets and the amount of share capital of the transferor is transferred to the capital reserve
(amalgamation adjustment account) and is presented separately from other capital reserves.
(y) 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 March 31, 2025, MCA has not
notified any new standards or amendments to the existing standards applicable to the Company. Additionally there were
no new accounting standards notified which are applicable for subsequent reporting periods.
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