Provisions are recognized in the balance sheet when the comp.i. > has a
present obligation (legal or constructive) as a result of a past event, which
is expected to result in an outflow of resources embodying e onomic
benefits which can be reliably estimated. Each provision is based on the
best estimate of the expenditure required to settle the present obligation on
the balance sheet. Where the time value for money is material, provisions
are made on a discounted basis.
Disclosure for Contingent liabilities is made when there is a possible
obligation or present obligation arising from past events, 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 company
or a present obligation that arises from the past events where it is either
not probable that an outflow of resources embodying in economic benefits
will be required to settle or a reliable estimate of amount cannot be made.
Disclosure for Contingent assets are made when there is possible asset that
arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future its not
wholly within the control of the entity. However 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 Irom 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
separatelv disclosed in the statement of profit and loss in such 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)
I. Financial assets:
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized as 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.
B. Subsequent Measurement
a) Financial assets measured 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 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.
c) Financial assets measured at fair value through profit or loss
(FVTPL)
A Financial asset which is not classified in any of the above categories
are measured at FVTPL e g. investments in mutual funds. Financial assets
are reclassified subsequent to their recognition if the Company changes its
business model for managing those financial assets. Changes in business
model are made and applied prospectively from the reclassification date
which is the first day of immediately next reporting period following the
changes in business model in accordance with principles laid down under
Ind AS 109 -Financial Instruments.
II. Financial Liabilities
A. Initial recognition
All financial liabilities are recognized at fair value and in the case of
borrowings, net of directly attributable cost. Fees of recurring nature are
directly recognized in the Statement of Profit and Loss as finance cost.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest
method. For trade and other payables maturing within one year lrom the
balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.
Operating segment is a component of an entity:
a. That engages in business activities from which it may earn re\ r es 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 has only one business segment such as IT Product
development & Software. Hence Segment reporting is not applicable.
2.25 Events After the Reporting Period Hnd AS 101
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 idem tied:
a) Those that provide evidence of conditions that existed at the ^ id 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 is in the business of IT Product development & Software,
hence Ind AS -11 Construction Contract is not applicable.
2.27 Income Taxes (Ind AS 12)
The Tax Expense for the period comprises of current and deferred tax.
• Current Tax:
Current Tax Assets and Liabilities are measured at the amount expected
to be recovered from or paid to the Income tax authorities, based on tax
rates and laws that are enacted at the Balance Sheet date.
• Deferred Tax:
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 wall 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 hey can
be realized against future taxable profits.
At each reporting date, the Company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax assets 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.
New and Amended Standards
2.28 Amendment to Ind AS 116: COVID -19 Related Rent Conct- ; iions:
The amendments provide relief to lessees from applying Ind AS 116
guidance on lease modification accounting for rent concessions arising as
a direct consequence of Covid-19 pandemic. As a practical expedient, a
lessee may elect not to access whether a Covid-19 related rent concession
from a lessor is lease modification. A lessee that makes this election
accounts for any change in lease payments resulting from COVID-19
related rent concession the same way it would account lor the changes
under Ind AS 116 if changes were not lease modifications. This
Amendment had no impact on The Financial statements of the Company.
2.29 AmemWn* to Ind AS 1 and Ind AS 8: Definition of material:
The Amendments provide a new definition of material that states
“information is material if omitting, misstating or obscuring it is
reasonably be expected to influence decisions that the primary uses ol
general-purpose financial statements make on the basis ol those financial
statements, which provide financial information about specific reporting
entity”. The amendments clarify that materiality will depend on 11 r nature
of magnitude of information, either individually or in combination with
other information, in the context of the financial year state: tents. A
misstatement of information is material if it could reasonably be expected
to influence decisions made by the primary users. These amendments had
no impact on the standalone financial statements of the company.
2.3Q Amendment to Ind AS 107 and Ind AS 109: Interest Rate Benchmark
Reform:
The amendments to Ind AS 109 Financial Instruments: Recognition and
Measurements provide a number of reliefs, which apply to all hedging
relationships that are directly affected by interest rate benchmark reform.
A hedging relationship is affected if the reform gives raise to uncertainty
about the timing and/or amount of benchmark -based cash flow of
hedging items or hedging instrument. These amendments have no impact
on The Financial statements of the company as it does not have any
interest rate hedge relation.
The amendment to Ind AS 107 prescribes the disclosure which enuties are
required to make for hedging relationship to which the reliefs as per the
amendments in Ind AS 109 are apply. This amendment had no impact on
The Financial statements of the company.
28. Related Party Disclosures (Ind AS 24):
Related Party disclosures required as per Accounting Standard (Ind AS-24)
on Related Party disclosures issued by the Institute of Chartered
Accountants of India, are as below:
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 f< ounting
standard has no financial impact on the financial statements >or t • < urrent
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.
33. Derivative instruments and un hedged foreign currency exposure:
a) There are no outstanding derivative contracts as at March 31, 2024, and
March 31, 2023.
b) Particulars of Un-hedged foreign currency exposure is Nil.
34. 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.
The information has been given in respect of such vendors to Uic extent
they could be identified as micro and small enterprises on the basis of
information available with company.
As per the information provided / submitted by the Company, there are no
dues to Micro, Small and Medium Enterprises covered under (‘MSMED’Act,
2006).
42. 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.
43. Credit Risk
Credit risk refer* to the risk that the 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, as a
means of mitigating the risk of financial loss from defaults.
The company makes an allowance for doubtful debt3/advances using the
expected credit loss model.
44. 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 are infusing the funds based on the
requirements.
45. Amounts have been rounded off to nearest Rupee.
As per our report of even date P°r and on behalf of the Board
For V. Ravi & Co., Unipro Technologies Limited
Chartered At^fittijiants k
Jj/J Apama Reddy Dandu Venkata Ramana
Ram^sh Dandu Reddy
Partner ^==5^ Director Director
Membership No. 217139 DIN No.03298728 DIN: 02957136
UDIN:24217139BKBMHN7348
Place: Hyderabad
Date: 18-08-2024
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