1.1 Significant Accounting Policies
1.1.1 Basis of Preparation
These financial statements have been prepared in accordance with the Indian Accounting Standards
(hereinafter referred to as the 'Ind AS') as notified by Ministry of Corporate Affairs pursuant to section
133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
Compliance with Ind AS
These financial statements for the year ended 31st March, 2024 has been prepared under Ind AS.
The accounting policies are applied consistently to all the periods presented in the financial statements.
Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) Certain financial assets and liabilities that are measured at fair value;
2) Defined benefit plans - plan assets measured at fair value.
Current and non-current classification
The financial statements have been prepared on accrual and going concern basis. All assets and liabilities
have been classified as current or non-current as per the Company's normal operating cycle and other
criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of
products and the time between acquisition of assets for and their realisation in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current
classification of assets and liabilities.
1.1.2 Use of estimates and judgements
The estimates and judgments used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectations of future events) that the Company believes to be reasonable under the
existing circumstances. Differences between actual results and estimates are recognised in the period in
which the results are known/ materialised.
The said estimates are based on the facts and events, that existed as at the reporting date, or that
occurred after that date but provide additional evidence about conditions existing as at the reporting
date.
1.1.3 Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate
collection and are recorded net of sales return, branch transfer, rebates and trade discounts.
Sales include sale of hardware and software products.
Revenue from rendering of services include movie distribution rights and are recognized based on
agreements / arrangements on completed service contract method.
Interest income and rental income are recognized on accrual basis.
1.1.4 Property, Plant and Equipment
Property, Plant and Equipment is stated at acquisition cost net of accumulated depreciation and
accumulated impairment losses, if any. Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably. All
other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which
they are incurred.
Gains or losses arising on retirement or disposal of property, plant and equipment are recognised in the
Statement of Profit and Loss.
Depreciation is provided on a pro-rata basis on the straight line method based on estimated useful life
prescribed under Schedule II to the Companies Act, 2013.
The residual values, useful lives and method of depreciation of property, plant and equipment is reviewed
at each financial year end and adjusted prospectively, if appropriate.
1.1.5 Intangible Assets
Intangible assets are carried at cost less any accumulated amortisation and accumulated impairment
losses, if any. Finite-life intangible assets are amortised on a straight-line basis over the period of their
expected useful lives.
Estimated useful life by major class of finite-life intangible asset is as follows:
Computer software - 5 years
The amortisation period and the amortisation method for finite-life intangible assets is reviewed at each
financial year end and adjusted prospectively, if appropriate.
Revenue expenditure on Research and Development is charged to Profit and Loss account in the year the
expenditure is incurred.
Capital expenditure during the development phase is recognized as an asset, only if in the opinion of the
management, it is feasible to complete its production, it is intended to be used or sold, it will generate
future economic benefits, there are adequate resources available for its completion and it is possible to
measure the expenditure incurred on it.
1.1.6 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying
assets, prior to the commencement of commercial production are capitalized as part of the cost of Assets.
A qualifying Asset is one that necessarily takes substantial period of time to get ready for intended use.
All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the
year in which it was incurred.
1.1.7 Impairment of non-financial assets
The Company assesses at each reporting date as to whether there is any indication that any property,
plant and equipment and intangible assets or group of assets, called cash generating units (CGU) may be
impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated to
determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount
of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset
belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of
disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their
present value using pre-tax discount rate that reflects current market assessments of the time value of
money and risk specific to the assets.
1.1.8 Investments
Investments in unquoted equity shares and quoted shares are stated at cost and fair market value
respectively.
1.1.9 Inventories
Raw materials and store & spares are valued at lower of Cost and Net Realizable Value.
Work in progress is valued at the cost incurred.
Finished goods are valued at lower of Cost (raw material and appropriate proportion of overheads) and
Net Realizable Value.
Goods held for Resale are valued at lower of cost and net realizable value.
The cost of inventories comprises all costs of purchase (including duties for which no credit/rebate is to
be received), costs of conversion and other costs incurred in bringing the inventories to their present
location and condition. Trade discounts, rebates, duty drawbacks and other similar items are deducted in
determining the costs of purchase.
Costs of inventories are determined on First in First out ('FIFO') basis in the ordinary course of business.
Net Realizable Value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.
1.1.10 Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign currency transactions are recorded
on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.
Exchange differences that arise on settlement of monetary item or on reporting of monetary item at
Balance Sheet date at the closing rate is recognized as income or expense in the period in which they arise.
1.1.11 Tax expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of
Profit and Loss.
Current Tax:
Provision for Taxation is ascertained on the basis of assessable profit computed in accordance with the
provisions of Income Tax Act, 1961.
Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax
liabilities and assets are reviewed at the end of each reporting period.
1.1.12 Employee benefits
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short
term employee benefits and the undiscounted amount of such employee benefits are recognised in
Statement of Profit and Loss in the period in which the employee renders the related services. These
benefits include salaries, wages, bonus etc.
Defined Benefit Plan
Gratuity is provided for based on actuarial valuation carried out at the close of each period. The actuarial
valuation is done by an Independent Actuary as per projected unit credit method. For defined benefit
plans, the amount recognised as 'Employee benefit expense' in the Statement of Profit and Loss is the
cost of accruing employee benefits promised to employees over the year and the costs of individual events
such as past/future service benefit changes and settlements (such events are recognised immediately in
the Statement of Profit and Loss). Any differences between the interest income on plan assets and the
return actually achieved, and any changes in the liabilities over the year due to changes in actuarial
assumptions or experience adjustments within the plans, are recognised immediately in 'Other
comprehensive income' and subsequently not reclassified to the Statement of Profit and Loss.
Defined Contribution Plan
Contributions to defined contribution schemes wherever required by the statute are charged as an
expense based on the amount of contribution required to be made as and when services are rendered by
the employees. Company's provident fund contribution, in respect of certain employees, is made to a
government administered fund and charged as an expense to the Statement of Profit and Loss. The above
benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations
beyond the monthly contributions.
1.1.13 Segment reporting
Identification of segments
As defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company's
performance and allocates resources based on an analysis of various performance indicators by business
segments and geographic segments. The accounting principles used in the preparation of financial
statements are consistently applied to record revenue and expenditure in individual segment and are as
set out in the significant accounting policies.
Allocation of common costs
Common allocable costs are allocated to each segment on reasonable basis.
Unallocated items
Include expenses incurred on common services provided to the segment which are not allocable to any
business segment.
Segment policies
The Company prepares its segment information in conformity with the accounting policies adopted for
preparing and presenting the financial statements of the Company as a whole.
1.1.14 Cash Flow Statement
Cash flows are reported using the indirect method in accordance with Ind AS 7, whereby a profit before
tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, financing and investing activities of the
Company are segregated.
1.1.15 Earning Per Share
Earnings per Share (EPS) is calculated by dividing the Net Profit or Loss for the period attributable to equity
shareholders by the Weighted Average Number of equity shares outstanding during the period.
For the purpose of calculating Diluted Earnings per share, the Net Profit or Loss for the period attributable
to equity shareholders is divided by the Weighted Average Number of shares outstanding during the
period after adjusting for the effects of all dilutive potential equity shares.
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