18. Significant Accounting Policies
a. Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian Accounting Standard
(Ind AS), under the historical cost convention on the accrual basis except for certain financial
instruments which are measured at fair values, the provisions of the Companies Act, 2013
(“the Act”) (to the extent notified) 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. As the year-end figures are taken
from the source and rounded to the nearest digits, the figures reported for the previous quarters
might not always add up to the year figures reported in this statement. The financial statements
are prepared under the historical cost basis except for following assets and liabilities which
have been measure at fair value:
• Certain Financial Assets & Liabilities (including derivative instruments)
• Define Benefited Plan
b. Use of Estimates
The preparation of the financial statements in conformity with Ind AS requires the Management
to make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate
changes in estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial
statements in the period in which changes are made and, if material, their effects are disclosed
in the notes to the financial statements.
c. Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is
generally accounted on accrual or as they are earned or incurred except in case of significant
uncertainty. Revenue from investing / trading in shares, securities etc. is recognized on trade
dates on first in first out basis. Revenue from Derivative Instruments & any gains or losses
arising from changes in the fair value of derivatives are taken directly to Statement of Profit and
Loss, except for the effective portion of cash flow hedges in respect of completed transactions
pending settlement process, necessary treatment is given in the accounts for the Profits/
Losses arising from these transactions. Dividend income is accounted for on receipt basis.
d. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial Assets
Initial Recognition
The Company recognizes a financial asset in its Balance Sheet when it becomes party to
the contractual provisions of the instrument. All financial assets are recognized initially at fair
value, plus in the case of financial assets not recorded at fair value through profit or loss
(FVTPL), transaction costs that are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain a significant financing component are measured
at transaction price.
Subsequent measurement
For subsequent measurement, the Company classifies a financial asset in accordance with the
below criteria:
a. Non-derivative financial instruments
i. Financial assets carried at amortized cost A financial asset is subsequently 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.
ii. Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive
income 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. The Company
has made an irrevocable election for its investments which are classified as equity
instruments to present the subsequent changes in fair value in other comprehensive
income based on its business model.
iii. Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories is subsequently
fair valued through profit or loss
b. Investment in subsidiaries
Investment in subsidiaries is carried at cost in the separate financial statements.
!. Income taxes
Current Tax:
The tax expense for the period comprises current and deferred tax. Tax is recognized
in Statement of Profit and Loss, except to the extent that it relates to items recognized in
the comprehensive income or in equity. In which case, the tax is also recognized in other
comprehensive income or equity.
Deferred Tax:
Deferred tax is recognized 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.
f. Property, Plant and Equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment,
if any. Costs directly attributable to acquisition are capitalized until the property, plant and
equipment are ready for use, as intended by the Management. The Company depreciates
property, plant and equipment over their estimated useful lives. Depreciation on all assets of
the Company is provided on WDV Method at the rates and manner prescribed in Schedule II
to the Companies Act, 2013.
g. Recent Accounting Pronouncements
Minister of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standard under Companies (Indian Accounting Standards) Rules as issued from time to time
on March 31,2025, MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.
h. Depreciation
Property, Plant & Equipment are depreciated using the written down value method to allocate
their cost, net of their residual values, over their estimated useful lives as prescribed in
Schedule II to the Companies Act, 2013. Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are included in profit or loss.
i. Lease Accounting
Leases are classified as finance leases whenever the terms of the lease transfer substantially
all the Risks and rewards of ownership to the lessee. All other leases are classified as operating
leases. In respect of assets taken on short term operating lease with a lease term of up to 12
months, lease rentals are recognized as an expense in the Statement of Profit and Loss on
straight line basis over the lease term unless another systematic basis is more representative
of the time pattern in which the benefit is derived from the leased asset; or the payments to the
lessor are structured to increase in the line with expected general inflation to compensate for
the lessor’s expected inflationary cost increases.
j. Employment Benefits
- Short Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognised in respect of employees’ services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.
- Post-Employment Obligations
The Company operates the following post-employment schemes: Defined Benefit Plans
such as Gratuity and defined contribution plans such as provident fund.
- Defined Benefit Plans like Gratuity:
The Company provides for gratuity benefit to its employees (included as part of contribution
to provident and other fund in note no -18 employee benefit expenses) which is funded
with life insurance corporation of India. Company has followed IND AS 19.
- Defined Contribution Plans like Provident Fund: The Company pays provident fund
contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions
are recognised as employee benefit expense when they are due. Prepaid contributions
are recognised as an asset to the extent that a cash refund or a reduction in the future
payments is available.
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