i. Provision is recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, 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 obligation. Provision is not recognised for future
operating losses.
ii. A Contingent liability is disclosed in case of a present obligation arising from past events,
when it is either not probable that an outflow of resources will be required to settle the
obligation, or a reliable estimate of the amount cannot be made. A Contingent Liability
is also disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company.
iii. Contingent assets are not recognised but where an inflow of economic benefits is
probable, contingent assets are disclosed in the financial statements.
Provisions, Contingent liabilities and Contingent assets are reviewed at each reporting
date and are adjusted to reflect the current best estimate.. ,
i. Financial assets and Financial liabilities are recognised when the Company becomes a
party to the contractual provisions of the instruments.
ii. Classification of financial assets:
The classification depends on the company's business model for managing the financial
assets and the contractual terms of the cash flows. The Company classifies its financial
assets to be measured subsequently at amortised cost.
iii. Measurement of financial assets:
At initial recognition, the Company measures a financial asset at its fair value.
Transaction costs of financial assets carried at fair value through the Statement of Profit
and Loss are expensed in the Statement of Profit and Loss.
Equity instruments:
Equity investments in subsidiaries are measured at cost. Other equity investments are
measured at fair value. Where the Company's management has elected to present fair
value gains and losses on equity investments in Other Comprehensive Income, there is
no subsequent reclassification of fair value gains and losses to the Statement of Profit
and Loss. Dividends from such investments are recognised in the Statement of Profit
and Loss as other income when the Company's right to receive payments is established.
iv. Impairment of financial assets:
The company assesses on a forward-looking basis the expected credit losses associated
with its assets. The impairment methodology applied depends on whether there has
been a significant increase in credit risk.
v. Derecognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash
flows from the financial asset expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109.
vi. Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or Other Financial
Liabilities.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading
or are designated upon initial recognition as FVTPL.
Gains or Losses on liabilities held for trading are recognised in the Statement of Profit
and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings, trade and other payables) are
subsequently measured at amortised cost.
vii. Derecognition of financial liabilities:
The Company derecognizes a financial liability when its contractual obligations are
discharged or cancelled or expired. The Company also derecognizes a financial liability
when its terms are modified and the cash flows under the modified terms are
substantially different.
1.7 Earnings Per Share
The basic earnings per share is computed by dividing the net profit / (loss) attributable to the
equity shareholders for the year by the weighted average number of equity shares outstanding
during the reporting period. Diluted earnings per share is computed by dividing the net profit /
(loss) attributable to the equity shareholders for the year, as adjusted for the effects of potential
dilution of equity shares, by the weighted average number of equity and dilutive equity
equivalent shares outstanding during the reporting period.
1.8 Use of Estimates
The preparation of the financial statements requires the management to make judgements,
estimates and assumptions in the application of accounting policies and that have the most
significant effect on reported amounts of assets, liabilities, incomes and expenses and
accompanying disclosures and the disclosure of contingent liabilities. The estimates and
associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future
periods.
1.9 First-time Adoption of Ind AS
Overall Principle
The Company has prepared the Opening Balance Sheet as per Ind AS as at April 1, 2016 (the
date of transition) by recognising all assets and liabilities whose recognition is required by Ind
ASs, not recognising items of assets or liabilities which are not permitted by Ind ASs, by
reclassifying items from previous GAAP to Ind AS as required under Ind ASs and applying Ind
ASs in measurement of recognised assets and liabilities. However, this principle is subject to
certain exceptions and certain optional exemptions availed or not so availed by the Company.
Details of exemptions availed are as under:
i. Business Combination:
The Company has elected not to apply Ind AS 103 - Business Combinations
retrospectively to past business combinations that occurred before the date of
transition and therefore, has kept the same classification for the past business
combinations as in its previous GAAP financial statements.
ii. Investments:
The Company has elected to carry its investment in subsidiary company at deemed
cost, which is its previous GAAP carrying amount at the date of transition.
iii. Borrowings:
Considering the Objective of Ind AS 101, items of liabilities which are no longer
outstanding as at March 31, 2017 and the high-quality information relating to which
cannot be generated at a cost lower than the benefits are disclosed at previous GAAP
carrying amounts. Also refer Note 27(G)(l)(ii) & (iii).
9.2 Rights, Preferences and Restrictions
Equity Shares
i. The Company has only one class of equity shares referred to as equity shares having a par value of Rs. 10/- Each
holder of equity shares is entitled to one vote per share.
ii. The Company declares and pays dividend in Indian rupees. Final dividend, if any, proposed by the Board of
Directors is recorded as a liability on the date of the approval of the shareholders in the ensuing Annual General
Meeting; in case of interim dividend, it is recorded as a liability on the date of declaration by the Board of Directors
of the Company.
iii. In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding. However, no such preferential amounts
exist currently.
15 Capital Management
The primary objective of Company's Capital Management is to maximise the shareholder's value without having any
adverse impact on interests of other stakeholders. At the same time, the Company strives to maintain an optimal
capital structure to reduce the cost of capital.
For the purpose of the Company's Capital Management, debt includes both current and non-current borrowings and
equity includes issued equity capital, securities premium and all other equity reserves attributable to the equity
shareholders of the Company.
F. Notes to the reconciliation of Balance Sheet and Total Equity as at March 31, 2024 & 2025 and Statement of
Profit and Loss and Total Comprehensive Income for the year ended March 31, 2024 & 2025
1 Borrowings
i. Under IGAAP, the Company had accounted for interest-free loan received at the undiscounted amount whereas under
Ind AS, such financial liabilities are recognised at fair value on initial recognition and thereafter at amortised cost.
2 Deferred Tax
IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between
taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the
balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in
the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax
liability on temporary difference arising due to fair valuation of financial liabilities. However impact of same has been
offset due to recognition of deferred tax asset on unused tax losses to the extent of deferred tax liability.
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