K. Provisions, Contingent Liabilities and Contingent Assets
Provisions
Provisions are recognised when The Holding Company has a present obligation (legal or constructive) as a result of past
events, 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. When the effect of the time value of money is material,
The Holding Company determines the level of provision by discounting the expected cash flows at a pre-tax rate reflecting
the current rates specific to the liability. The expense relating to any provision is presented in the Statement of Profit and
Loss net of any reimbursement.
Contingent assets/liabilities
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of The Holding Company or; present
obligation that arises from past events where it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability are
disclosed as contingent liability and not provided for. Contingent assets are disclosed where an inflow of economic benefits
is probable. Contingent assets are not recognised in the financial statements.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be
received under such contract, the present obligation under the contract is recognised and measured as a provision.
L. Borrowing Cost
Borrowing costs include interest expense calculated using the EIR on respective financial instruments measured at amortized
cost, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to interest costs.
The effective interest rate (EIR) is the rate that exactly discounts estimated future cash flows through the expected life of the
financial instrument to the gross carrying amount of the financial liability.
Calculation of the EIR includes all fees paid that are incremental and directly attributable to the issue of a financial liability.
While computing the capitalization rate for funds borrowed generally, an entity should exclude borrowing costs applicable
to borrowings made specifically for obtaining a qualifying asset, only until the asset is ready for its intended use or sale.
Borrowing costs (related to specific borrowings) that remain outstanding after the related qualifying asset is ready for
intended use or for sale would
Subsequently be considered as part of the general borrowing costs of the entity.
M. Earnings per Share
Basic earnings per share have been computed by dividing net income attributable to ordinary equity holders by the weighted
average number of shares outstanding during the year. Partly paid-up equity share is included as fully paid equivalent
according to the fraction paid up.
Diluted earnings per share have been computed using the weighted average number of shares and dilutive potential shares,
except where the result would be anti-dilutive.
N. Other comprehensive income Under Ind AS
All items of income and expense recognised in a period should be included in profit or loss for the period unless a standard
requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the
statement of profit and loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans and fair
value gains or (losses) on FVTOCI. The concept of other comprehensive income did not exist under previous GAAP.
S. Employee benefits
Defined Contribution benefits include superannuation fund.
Defined Employee benefits include gratuity fund, provident fund compensated absences and
long service awards.
Defined contribution plans
The Company's contribution to superannuation fund is considered as defined contribution plan and is charged as an expense
in the Statement of Profit and Loss based on the amount of contribution required to be made and when services are rendered
by the employees.
Defined benefit plans
For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit
method, with actuarial valuations being carried out at each Balance Sheet date. As per Ind AS 19, the service cost and the net
interest cost are charged to the Statement of Profit and Loss. Remeasurement of the net defined benefit liability, which
comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised in Other Comprehensive Income. Past service cost is recognised immediately to the extent
that the benefits are already vested. The retirement benefit obligation recognised in the Balance Sheet represents the present
value of the defined benefit obligation as adjusted for unrecognized past service cost, as reduced by the fair value of scheme
assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and
reductions in future contributions to the schemes.
Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised during the year when the employees render the service. These benefits include performance
incentive and compensated absences which are expected to occur within twelve months after the end of the reporting period
in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of
future compensated absences; and
(b) in case of non-accumulating compensated absences, when the absences occur.
Other long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the year in which the employee
renders the related service are recognized as a liability at the present value of the defined benefit obligation as at the balance
sheet date less the fair value of the plan assets out of which the obligations are expected to be settled. Long term service
awards are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date.
The obligation is measured on the basis of actuarial valuation using projected unit credit method and remeasurements gains/
losses are recognized in P&L in the period in which they arise.
Share based payment transaction
The stock options of the Company, granted to employees pursuant to the Company’s Stock Options Schemes, are measured
at the fair value of the options at the grant date as per Black and Scholes model. The fair value of the options is treated as
discount and accounted as employee compensation cost, with a corresponding increase in other equity, over the vesting period
on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected
to vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense, with a corresponding increase
in other equity, in respect of such grant is transferred to the General reserve within other equity.
T. Events after reporting date
Where events occurring after the balance sheet provide evidence of condition that existed at the end of the reporting period,
the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material
size or nature are only disclosed.
U. Non-Current Assets held for sale
Non-current assets are classified as held for sale if their carrying amount is intended to be recovered principally through a
sale (rather than through continuing use) when the asset is available for immediate sale in its present condition subject only
to terms that are usual and customary for sale of such asset and the sale is highly probable and is expected to qualify for
recognition as a completed sale within one year from the date of classification.
Non-current assets classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell.
The Company has a policy to make impairment provision at one third of the value of the Asset for each year upon completion
of three years up to the end of five years based on the past observed pattern of recoveries. Losses on initial classification as
Held for sale and subsequent gains & losses on remeasurement are recognized in Statement of Profit and loss. Once classified
as Held for sale, the assets are no longer amortized or depreciated.
V. Fair Value
The Company measure financial instruments at fair value in accordance with the accounting policies mentioned above. Fair
value is the price that would be received to sell 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 either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure
value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs)
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly
Level 3- Inputs that are unobservable for the asset or liability.
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each
reporting period and discloses the same.
W. Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non-cash nature,
ii. non-cash items such as depreciation, Impairment, deferred taxes, unrealized foreign currency gains and losses, and
undistributed profits of associates and joint ventures; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not
available for general use as on the date of Balance Sheet.
X. Recent Amendments
The following amendments to standards have been issued and will be effective from April 01, 2022. The Company is
evaluating the requirements of these standards, improvements and amendments and has not yet determined the impact on the
financial statements.
i. Indian Accounting Standard (Ind AS) 103 - Business Combinations - Qualifications prescribed for recognition of the
identifiable assets acquired and liabilities assumed, as part of applying the acquisition method - should meet the definition
of assets and liabilities in the Conceptual Framework for Financial Reporting under Ind AS (Conceptual Framework) issued
by the ICAI at the acquisition date. Modification to the exceptions to recognition principle relating to contingent liabilities
and contingent assets acquired in a business combination at the acquisition date.
ii. Indian Accounting Standard (Ind AS) 109 - Financial Instruments - Modification in accounting treatment of certain costs
incurred on derecognition of financial liabilities.
iii. Indian Accounting Standard (Ind AS) 16 - Property, Plant and Equipment - Modification in treatment of excess of net
sale proceeds of items produced over the cost of testing as part of cost of an item of property, plant, and equipment.
iv. Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent Assets - Modifications in
application of recognition and measurement principles relating to onerous contracts.
11. No disclosure is required under Ind AS-105 on "Discontinuing Operations” issued by the Institute of Chartered
Accountants of India as the company has not discontinued any line of its activity/product line during the year.
12. Deferred Tax Asset / Deferred T ax Liability: NIL
13. RELATED PARTY TRANSACTIONS:
1. Related Parties particulars pursuant to “Ind Accounting Standard - 24”
14. Figures of the previous year have been regrouped and reclassified wherever necessary to confirm to the current year’s
classification.
As per our report of even date
For and on behalf of For and on behalf of board of directors
ADV & Associates Indian Infotech and Software Limited
Chartered Accountants
FRN: 128450W
SD/-
CA. Prakash Mandhaniya Anant Chourasia Mushaid A. Khan
Partner Managing Director Company Secretary
Membership No. : 421679 DIN: 09305661 PAN: BMLPK4089F
Aksha Bihani Bhairu Ratan Ojha
Place: Mumbai Director CFO
Date: 28th May 2025 DIN: 08102933 PAN: AAGPO7260E
UDIN: 25421679BMTFBV7921
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