2.20 Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37):
The Company recognized provisions when there is present obligation as a result of past event and it
is probable that there will be an outflow of resources required to settle the obligation in respect of
which a reliable estimate can be made A disclosure for Contingent liabilities is made when there is a
possible obligation or present obligations that may, but probably will not, require an outflow of
resources. These are reviewed at each Balance Sheet date and adjusted to reflect the current best
estimates. Contingent assets are neither recognized nor disclosed in the financial statements.
2.21 Prior Period and Extraordinary and Exceptional Items:
(i) All Identifiable items of Income and Expenditure pertaining to prior period are accounted through
''Prior Period Items''.
(ii) Extraordinary items are income or expenses that arise from events or transactions that are clearly
distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur
frequently or regularly. The nature and the amount of each extraordinary item be separately
disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can
be perceived.
(iii) Exceptional items are generally non-recurring items of income and expenses within profit or loss from
ordinary activities, which are of such, nature or incidence.
2.22 Financial Instruments (Ind AS 107 Financial Instruments: (Disclosures)
2.23
I. Financial assets:
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities, which are
not at fair value through profit or loss, are adjusted to the fair value on initial recognition.
a) Financial assets carried at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a business model whose objective
is to hold the asset 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.
b) Financial assets at fair value through profit or loss (FVTPL)
A Financial asset which is not classified as AC or FVOCI are measured at FVTPL e.g. investments in
mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through
profit or loss is recognised in profit or loss and presented net in the Statement of Profit and Loss
within other gains/(losses) in the period in which it arises.
c) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it 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.
B. Investments in subsidiaries
The Company has accounted for its investments in subsidiaries at cost and not adjusted to fair value
at the end of each reporting period. Cost represents amount paid for acquisition of the said
investments.
II. Financial Liabilities
A. Initial recognition
All financial liabilities are recognized at fair value.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
2.24 Operating Segments (Ind AS 108)
Operating segment is a component of an entity:
a. That engages in business activities from which it may earn revenues and incur expenses
(including revenues and expenses relating to transactions with other components of the same
entity).
b. Whose operating results are regularly reviewed by the entity's chief operating decision maker
to make decision about resources to be allocated to the segments and assess its performance,
and
c. For which discrete financial information is available.
The company is in the Software Services segment. Hence IND AS 108 is not applicable.
2.25 Events After the Reporting Period (Ind AS-10)
Events after the reporting period are those events, favorable and unfavorable, that occur between
the end of the reporting period and the date on which financial statements are approved by the
Board of Directors in case of accompany, and, by the corresponding approving authority in case of
any other entity for issue. Two types of events can be identified:
a. Those that provide evidence of conditions that existed at the end of the reporting period
(adjusting events after the reporting period) and
b. Those that are indicative of conditions that arose after the reporting period (non-adjusting
events after the reporting period).
An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events
after the reporting period.
2.26 Construction Contracts (Ind AS -11):
Construction contract is a contract specifically negotiated for the construction of an asset or a
combination of assets that are closely interrelated or interdependent in terms of their design,
technology, and function or their ultimate purpose or use.
The company does not have any construction contracts for the year ended.
2.27 Income Taxes (Ind AS 12)
Tax Expense for the period comprises of current and deferred tax.
• Current Tax:
The Company has incurred losses during the financial year and, accordingly, no provision for current
income tax has been made in the books for the year ended [insert date]. As per the applicable
provisions of the Income-tax Act, 1961, no taxable income arises for the current financial year, and
therefore, no current tax liability is recognized.
• Deferred Taxes:
Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realized. In
situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes
unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available against which such
deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-
down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain
or virtually certain, as the case may be, that sufficient future taxable income will be available against
which deferred tax asset can be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available.
2.28 Related party (Ind AS 24)
Disclosures are made on related party relationships, transactions and outstanding balances, including
commitments. Related parties are identified by the Company in accordance with the requirements
of Ind AS 24 and are disclosed in the Notes to Financial Statements.
Related party transactions are reflected in the notes to accounts forming part of financial statements.
2.29 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards)
(Amendment) Rules, 2024:
Ind AS 117 - Insurance Contracts, which replaces the interim Ind AS 104 and introduces
comprehensive requirements on measurement and disclosures aligned with IFRS 17.
Amendments are made to Ind AS 101, 103, 105, 107, 109, 115, 116 which are necessary to align them
with the newly issued to reflect the issuance of Ind AS 117, including scope adjustments, transition
provisions and disclosure enhancements.
These changes are effective for accounting periods beginning on or after 1 April 2024.
The Company has assessed their impact and concluded that, they have no material effect on the
financial statements.
29. Consolidated and Separate Financial Statement (Ind AS 27):
The company has no subsidiary companies for the current reporting period. Hence
consolidate and separate financial statement are not applicable.
30. Investments in Associates (Ind AS 28):
The company has not made any investments in any of its associates during the reporting
period. This accounting standard has no financial impact on the financial statements for the
current reporting period.
31. Interest in Joint Ventures (Ind AS 31)
The company has no interest in any Joint ventures. This accounting standard has no financial
impact on the financial statements for the current reporting period.
32. Earnings Per Share (Ind AS 33):
a) Basic Earnings Per Share for (continued operations) there are no discontinued operations
hence, EPS is presented for continued operations only.
**During March 2024, the Company has issued 96,00,000 No. of share warrants at an issue
price of Rs.12 per warrant, aggregating to Rs. 11,52,00,000. Each warrant is convertible into
one equity share of face value Rs. 2 each at a premium of Rs. 10, in accordance with
applicable SEBI (ICDR) Regulations and Companies Act, 2013.
The warrant holders have paid 25% of the total consideration amounting to Rs. 2,88,00,000
at the time of allotment of warrants. The balance amount shall be payable at the time of
conversion of the warrants into equity shares within 18 months from the date of allotment.
The funds received have been classified as money received against share warrants under
"Other Equity" in the Balance Sheet.
33. Derivative instruments and un-hedged foreign currency exposure:
a) There are no outstanding derivative contracts as at March 31, 2025 and March 31, 2024.
b) Particulars of Un-hedged foreign currency exposure is: Nil
Working capital Loans:
The Company has availed CC from State Bank of India.
Primary security:
Hypothecation of Stocks & Receivables.
Collateral Security:
EM of Residential plot bearing survey No: 1/P Plot No: DL-60, admeasuring 2388 sq.ft situated
at yendada village, Madhurawada, Visakhapatnam.
Personal Guarantee by directors:
1. Kiran Thummalapalli
2. Madhusudan Raju Mudunuru.
35. Confirmation of Balances:
Confirmation letters have been issued by the company to Trade Receivables, Trade Payables,
Advances to suppliers and others advances requesting that the confirming party responds to
the company only if the confirming party disagrees with the balances provided in the request
and however the company has not received any letters on disagreements.
44. Financial Risk Management
In course of its business, the company is exposed to certain financial risk such as market risk
(Including currency risk and other price risks), credit risk and liquidity risk that could have
significant influence on the company's business and operational/financial performance. The
Board of directors reviews and approves risk management framework and policies for
managing these risks and monitor suitable mitigating actions taken by the management to
minimize potential adverse effects and achieve greater predictability to earnings.
45. Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations
resulting in financial loss to the company. The company has adopted a policy of only dealing
with creditworthy counterparties and obtaining sufficient collateral, where appropriate, a
means of mitigating the risk of financial loss from defaults.
The company makes an allowance for doubtful debts/advances using expected credit loss
model.
46. Liquidity risk
Liquidity risk refers to the risk that the company cannot meet its financial obligations. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds
are available for use as pre requirements. The Company's exposure to liquidity risk is minimal
as the promoters of the company is infusing the funds based on the requirements.
47. Amounts have been rounded off to nearest Rupee and ledger accounts were reclassified
wherever necessary.
Notes 3 to 47 forms part of Balance Sheet and have been authenticated.
For V. RAVI & CO., for and on behalf of the Board
Chartered Accountants For MUDUNURU LIMITED
Firm Reg No.006492S
Sd/- Sd/- Sd/-
CA D. Ramesh Kumar M Madhusudan Raju T Kiran
Partner Director Director
Membership No.217139 DIN: 00471678 00472025
UDIN: 25127139BMOSP18928
Sd/-
Place : Visakhapatnam TRS Manjari
Date: 30th May 2025 CFO
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