2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation of Standalone Financial Statements
i. Accounting Convention: -
These Standalone financial statements are prepared in accordance with Indian Accounting Standard (Ind AS) under the
historical cost convention on accrual basis except for certain financial instruments, which are measured at fair values, the
provisions of the Companies Act, 2013 (''the Act'') and guidelines issued by the Securities and Exchange Board of India
(SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter.
Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The material
accounting policy information used in preparation of the audited Standalone financial statements have been discussed
in the respective notes.
ii. Functional and Presentation Currency
The functional and presentation currency of the company is Indian rupees. This Standalone financial statement is
presented in Indian rupees.
All amounts disclosed in the Standalone financial statements and notes are rounded off to lakhs the nearest INR rupee in
compliance with Schedule III of the Act, unless otherwise stated.
Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and
percentages may not precisely reflect the absolute figures.
2.2 Use of estimates and judgments
The preparation of Standalone financial statements in accordance with Ind AS requires subjective and complex judgments
to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, revenues and expenses at the date of these Standalone financial statements.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognized in the Standalone financial statements are as
below:
a) Fair value of Financial Assets and Financial liabilities.
b) The useful lives of or expected pattern of consumption of the future economic benefits bodied in, depreciable
assets.
c) Valuation of Inventories and Inventory obsolescence.
d) Provisions and Bad Debts.
The Company uses the following critical accounting judgements, estimates and assumptions in preparation of its
standalone financial statements:
a) Taxes:
The Company uses judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and
disallowances which is exercised while determining the provision for income tax.
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.
Minimum Alternative Tax ("MAT") credit is recognised as deferred tax asset based on evidence that the Company will
pay normal income tax during the specified period. Significant judgments are involved in determining the future taxable
income and future book profits, including amount of MAT credit available for set-off.
b) Deferred Tax:
Deferred tax assets and liabilities are recognized to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences and tax losses can be utilised. Accordingly, the Company exercises
its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the
asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date.
c) Current Tax:
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed
in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
Where current tax arises from the initial accounting for a business combination, the tax effect is included in the
accounting for the business combination. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
d) Impairment of non-financial assets:
Impairment exists when the carrying value of an asset or cash generating unit ("CGU") exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash
flow ("DCF") model. The cash flows are derived from the budget for future years and do not include restructuring activities
that the Company is not yet committed to or significant future investments that will enhance the asset's performance of
the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the
expected future cash-inflows and the growth rate used for extrapolation purposes.
e) Impairment of financial assets:
The Company assesses impairment of financial assets ('Financial instruments') and recognizes expected credit losses in
accordance with Ind AS 109. The Company provides for impairment of trade receivables and unbilled revenue outstanding
for more than 1 year from the date they are due for payment and billing respectively.
The Company provides for impairment of investment in subsidiaries. Impairment exists when there is a diminution in
value of the investment and the recoverable value of such investment is lower than the carrying value of such
investment.
f) Fair value measurement of financial instruments:
The company measures financial instrument such as investments at fair value at each balance sheet date.
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. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability - or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in the Standalone financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the
fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
Currently company carries those instruments in level 1 inputs of the above mentioned fair value hierarchy.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
g) Revenue Recognition:
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are
transferred to the buyer as per the terms of the contract, the Company retains no effective control of the goods
transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of
the consideration that will be derived from the sale of goods. Sales are recognized net of trade discounts, rebates and
Goods and Service Tax.
Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.
Interest income is recognised on accrual basis on the Bank Deposit balance outstanding as at end of financial year.
h) Property, Plant and Equipment & Intangible Assets:
The Company is not having any Property, Plant and Equipment and Intangible Assets as on 31st March, 2025. Therefore,
reporting on this clause is not applicable.
i) Depreciation / Amortization:
The Company is not having any property, plant or Equipment and Intangible Assets for the financial year 2024-25,
therefore this clause is not applicable to the Company.
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