1.1 Basis of Preparation of Financial Statements
• Statement of Compliance
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind
AS) prescribed under Section 133 of the Companies Act, 2013 ("the Act") (as amended from time to time) and
presentation and disclosure requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
Compliant Schedule III) as amended from time to time, read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, from time to time and other accounting principles generally accepted
in India. The Company follows indirect method prescribed in Ind AS 7 - Statement of Cash Flows for
presentation of its cash flows.
• Functional and Presentation Currency
The Standalone Ind AS Financial Statements are presented in Indian Rupees (INR), and all the values are
rounded to the nearest Lakhs with two decimals, except when otherwise indicated.
• Basis of Measurement
The Standalone Ind AS Financial Statements have been prepared on accrual basis under the historical cost
convention, except for the following assets and liabilities which have been measured at fair value as
required by relevant Ind AS:
Certain financial assets and liabilities (refer accounting policy regarding Financial Instruments), and
Defined employee benefit liability
• Fair Value Measurement
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, (regardless of whether that price is
directly observable or estimated using another valuation technique). In estimating the fair value of an asset
or a liability, the company takes into account the characteristics of the asset or liability, if market participants
would take those characteristics into account when pricing the asset or liability, at the measurement date.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3
based on the degree to which inputs to the fair value measurements are observable and the significance of
the inputs to the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity can access
at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
Fair value for measurement and/or disclosure purposes in these financial statements is determined on such
a basis, except for share based payment transactions that are within the scope of Ind AS 102, leasing
transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36
• Significant accounting judgements, estimates and assumptions
The preparation of the Company's Standalone Ind AS Financial Statements requires the management to
make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets, liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. Estimates and assumptions are reviewed
on periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected.
The key assumptions concerning the future and other key sources of estimation, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities, within the next financial year,
are described below. The Company has based its assumptions and estimates on parameters available
when the Standalone Ind AS Financial Statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions
that have the most significant effect to the carrying amounts of assets and liabilities within the next financial
year, are included in the following notes:
A. Measurement of defined benefit obligations: The cost of the defined benefit gratuity plan and other post¬
employment retirement benefits and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date. The parameter most subject to change is the discount rate. In determining the appropriate
discount rate for plans, the management considers the interest rates of government bonds in currencies
consistent with the currencies of the post-employment benefit obligation.
B. Measurement and likelihood of occurrence of provisions and contingencies: A provision is recognised
when the Company has a present obligation as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources. When there is a possible or a present
obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made in the
financial statements.
C. Recognition of taxes: Deferred tax assets are recognised for unused tax losses to the extent that it is
probable that taxable profit will be available against which the losses can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.
D. Useful life of Property, Plant and Equipment and Intangible Assets: The Company reviews the estimated
useful lives of property, plant and equipment and intangible assets at the end of each reporting period.
During financial year ended 31 March 2025, there were no changes in useful lives of property plant and
equipment and intangible assets other than those resulting from store closures / shifting of premises.
The Company at the end of each reporting period, based on external and internal sources of information,
assesses indicators and mitigating factors of whether a store (cash generating unit) may have suffered an
impairment loss. If it is determined that an impairment loss has been suffered, it is recognised in statement of
profit or loss.
E. Going concern: During the current year ended March 31, 2024, management has performed an assessment
of the entity's ability to continue as a going concern. Based on the assessment, management believe that
there is no material uncertainty with respect to any events or conditions that may cast a significant doubt on
the entity to continue as a going concern, hence the Standalone Ind AS Financial Statements have been
prepared on going concern basis.
F. Current and Non-Current classification: All assets and liabilities are classified into current and non-current.
Assets
An asset is classified as current when it satisfies any of the following criteria:
I. It is expected to be realised in, or is intended for sale or consumption in, the Company normal operating
cycle;
II. It is held primarily for the purpose of being traded;
III. It is expected to be realised within 12 months after reporting date; or
IV. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non
current.
Liabilities
A liability is classified as current when it is satisfying any of the following criteria:
I. It is expected to be settled in the Company's normal operating cycle;
II. It is held primarily for the purpose of being traded;
III. It is due to be settled within 12 months after the reporting date; or
IV. The Company does not have as unconditional right to defer settlement of the liability for at least 12
months after the reporting date. Terms of the liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instrument do not affect its classification.
Current liabilities include current portion of noncurrent financial liabilities. All other liabilities are classified
as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
G. Operating Cycle: Based on the nature of services and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the Company has ascertained its operating
cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.
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H. Classification of Leases: The Company evaluates if an arrangement qualifies to be a lease as per the
requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses
significant judgement in assessing the lease term (including anticipated renewals) and the applicable
discount rate. The Company determines the lease term as the non-cancellable period of a lease, together
with both periods covered by an options to extend the lease if the Company is reasonably certain to exercise
that options; and periods covered by an option to terminate the lease if the Company is reasonably certain
not to exercise that options. In assessing whether the company is reasonably certain to exercise an option to
extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and
circumstances that create an economic incentive for the Company to exercise the option to extend the lease,
or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change
in the non-cancellable period of a lease. The discount rate is generally based on the incremental borrowing
rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
I. 2 Material accounting policies
• Property Plant & Equipment
Property, Plant and Equipment are carried at acquisition cost, net of accumulated depreciation and
accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are
added to its book value if due to such expenditure it is probable that future economic benefits will arise to the
company. Gains or Losses arising from disposal of tangible assets are recognized in the Statement of Profit
and Loss.
Property, plant and equipment not ready for the intended use on the date of balance sheet are disclosed as
"Capital work-in-progress". Capital work in progress is stated at cost, net of accumulated impairment loss, if
any.
• Depreciation
Depreciation on tangible assets has been provided using straight line method over its useful life (once asset
is available for intended use) which is in compliance with schedule II of Companies Act, 2013.
Depreciation method, useful lives and residual values are reviewed at each financial year end and adjusted, if
appropriate. During the year, a reclassification of certain assets has been done where by Certain assets
Falling under Plant and Machine, Furniture and Fixture has been transferred to Office Equipment, Computer &
Computer Peripherals and Lease hold improvement. The reclassification of assets has resulted into change in
useful lives of Assets and consequent change in Depreciation of assets.
Depreciation for the year is recognised in the Statement of Profit and Loss.
• Intangible Assets
Intangible assets are recognised only when it is probable that the future economic benefits that are
attributable to the assets will flow to the Company and the cost of such assets can be measured reliably.
Intangible assets are stated at cost less accumulated amortisation and impairment loss, if any. All costs
relating to the acquisition are capitalised.
Intangible assets are amortised in the Statement of Profit or Loss over their estimated useful lives, from the
date that they are available for use based on the expected pattern of consumption of economic benefits of
the asset.
• Amortisation
Amortisation of Intangible Assets has been provided using straight line method over its useful life as per
Schedule II of the Companies Act, 2013.
Intangible Assets not ready for the intended use on the date of balance sheet are disclosed as "Intangible
Assets Under Development". Intangible Assets Under Development is stated at cost, net of accumulated
impairment loss, if any.
Amortisation method and useful lives are reviewed at each reporting date. If the useful life of an asset is
estimated to be significantly different from previous estimates, the amortisation period is changed accordingly.
If there has been a significant change in the expected pattern of economic benefits from the asset, the
amortisation method is changed to reflect the changed pattern.
• Leases
As per Ind AS 116- Lease, the determination of whether an arrangement is (or contains) a lease is based on
the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Where the Company is the lessee
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased
property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned
between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and
loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance
with the company's general policy on the borrowing costs. Contingent rentals are recognised as expenses in
the periods in which they are incurred.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that
the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the Statement of Profit
and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in
line with expected general inflation to compensate for the lessor's expected inflationary cost increases.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset
are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as
rental income. Contingent rents are recognised as revenue in the period in which they are earned unless the
receipts are structured to increase in line with expected general inflation to compensate for the expected
inflationary cost increases.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer
from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables
at the Company's net investment in the leases. Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
• Investments Property
Investment property is property held either to earn rental income or for capital appreciation or for both, but
not for sale in the ordinary course of business, use in the production or supply of goods or services or for
administrative purposes. Upon initial recognition, an investment property is measured at cost. Subsequent to
Initial recognition, investment property is measured at cost less accumulated depreciation and accumulated
impairment losses, if any.
The Company depreciates investment properties over a period of 30 years on a straight-line basis over its
estimated useful life.
Any gain or loss on disposal of an investment property is recognised in statement of profit and loss.
The fair values of investment property are disclosed in the notes. Fair values is determined by an
independent valuer who holds a recognised and relevant professional qualification and has recent
experience in the location and category of the investment property being valued.
• Impairment of tangible and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable amount of the cash generating unit to which the
asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are
also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company
of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risk specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
• Revenue Recognition
Revenue is recognised upon transfer of control of promised goods or services to customers in an amount that
reflects the consideration the Company expects to receive in exchange for those goods or services.
SALE OF GOODS
Revenue from the sale of products is recognised at the point in time when control is transferred to the
customer.
Revenue is measured based on the transaction price, which is the consideration, net of customer incentives,
discounts, variable considerations, payments made to customers, other similar charges, as specified in the
contract with the customer. Additionally, revenue excludes taxes collected from customers, which are
subsequently remitted to governmental authorities.
OTHER INCOME
Interest Income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.
• Inventories
Inventories of Raw materials are valued at Cost. The Cost is determined on Weighted Average Cost Method
Basis.
Stock of Work-in-progress is valued at cost. The Cost is determined on Weighted Average Cost Method Basis.
Stock of Finished goods is valued at cost or net realizable value basis, whichever is lower. The Cost is
determined on Weighted Average Cost Method Basis.
The Market value of inventories is determined, verified and certified by the management of the company. In
respect of non-availability of market value of some items on balance sheet date, they are valued at their cost
only.
Packing Material and Consumables are valued at Cost on FIFO Basis.
Cost of inventories comprises all costs of purchase and, other duties and taxes (other than those
subsequently recoverable from tax authorities), costs of conversion and all other costs incurred in bringing
the inventory to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
completion cost and the estimated cost necessary to make the sale.
N. V X
• Foreign Currency Transactions
Transaction denominated in foreign currencies are normally recorded at exchange rate prevailing on the
date of transactions. Exchange differences arising on foreign currency transaction settled during the period
are recognised in the statement of Profit and Loss except in case where they relate to acquisition of fixed
assets, are adjusted with the carrying cost of such assets.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated
into functional currency at the exchange rates at the reporting date. The resultant exchange differences are
recognized in the Statement of Profit and Loss.
• Retirement and other Employee Benefits
Defined contribution plan
? The Company's employees are covered under state governed provident fund scheme and employees'
state insurance scheme which are in nature of Defined Contribution Plan.
? The contribution paid/payable under the schemes are recognised during the period in which the employee
renders the related service. The company's contributions to Employees PF and ESI are charged to
statement of profit and loss.
Defined Benefit Plans
? Employee gratuity fund scheme is the defined benefit plan. Provision for gratuity has been made in the
accounts in respect of employees who have completed required number of years of service as on date of
balance sheet based on Actuarial Valuation Report obtained from Actuarial Consultant using Projected Unit
Credit Method. Gratuity is paid at the time of retirement of employees.
? Short Term Employee Benefits like leave benefit, if any, are paid along with salary and wages as and when
accrued, bonus to employees are charged to profit and loss account on the basis of actual payment on year
to year basis.
• Borrowing Cost
Borrowing costs consist of interest and other costs (including exchange differences to the extent regarded as
an adjustment to the interest costs) incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to the acquisition or construction of an asset, as defined in Ind AS 23,
that necessarily takes a substantial period of time to get ready for its intended use are capitalized as a part
of the cost of such assets. All other borrowing costs are recognized as an expense in the period in which they
are incurred.
• Income Taxes
Income tax expense comprises current tax and deferred tax. It is recognised in the Statement of profit and
loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive
income.
Current tax
The Income tax expense or credit for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses. Income tax assets and liabilities are
measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting
date in India. Current income tax relating to items recognised outside the Statement of Profit and Loss is
recognised outside the Statement of Profit and Loss (either in OCI or in equity). Current tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity. The management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts
expected to be paid to the tax authorities.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities are recognised for all taxable temporary differences, except: When the deferred tax liability arises
from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss." Deferred tax assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences and the
carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset
relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date, and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are
measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority. Current tax and deferred tax relating to items recognised outside the Statement
of Profit and Loss is recognised outside the Statement of Profit and Loss (either in OCI or in equity). Deferred
tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
• Earnings per Share
Basic earnings per share are calculated by dividing the net profit for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the period and for all periods presented is adjusted for
events, such as bonus shares, other than the conversion of potential equity shares that have changed the
number of equities shares outstanding, without a corresponding change in resources. For the purpose of
calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive.
• Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is a present obligation as a result of past event that probably
require an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions
are measured at the best estimate of the expenditure required to settle the present obligation at the balance
sheet date and are not discounted to the present value. These are reviewed at each year end and adjusted
to reflect the best current estimate.
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