Material accounting policy information
(a) Statement of compliance
The standalone financial statements have been prepared in accordance with the accounting principles generally accepted in India
including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the Companies Act, 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Companies Act, 2013 as applicable and
guidelines issued by the Securities and Exchange Board of India (SEBI) to the extent applicable. The accounting policies are applied
consistently to all the periods presented in the standalone financial statements. The aforesaid standalone financial statements have been
approved by the Board of Directors in the meeting held on 28 May 2025.
(b) Basis of accounting and preparation
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its standalone
financial statements as per the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 read
with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, other relevant provision of the
Companies Act, 2013 as applicable and presentation requirements of Division II of schedule III of the Companies Act, 2013. Accordingly,
the Company has prepared these standalone financial statements which comprise the Balance Sheet as at 31 March 2025, the Statement
of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31 March 2025, and accounting
policies and other explanatory information (together hereinafter referred to as "standalone financial statements").
The standalone financial Statements have been prepared using the material accounting policies and measurement bases summarised
below. These accounting policies have been used throughout all periods presented in these standalone financial statements.
The standalone financial statements have been prepared on going concern basis under the historical cost basis, except for certain
financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
(c) Use of estimates and judgements
The preparation of the standalone financial statements in conformity with Ind AS requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures.
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.
The Company bases its estimates and assumptions on parameters available when the standalone 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. The following
are significant management judgements in applying the accounting policies of the Company that have the most significant effect on
the amounts recognized in the standalone financial statements or that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities.
Classification of leases
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over
the lease term, costs relating to the termination of the lease and the importance of the underlying asset taking in to account the location
of the underlying asset and the availability of suitable alternatives.
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income
will be available against which the deductible temporary differences and tax loss carry forward can be utilised. In addition, significant
judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.
Evaluation of indicators for impairment of assets
The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which
could result in deterioration of recoverable amount of the assets. In assessing impairment, management estimates the recoverable
amount of each asset or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation
uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
Recoverability of advances / receivables
At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit
loss on outstanding receivables and advances.
Useful lives of depreciable / amortisable assets
The useful life and residual value of property, plant and equipment and intangible assets are determined based on technical evaluation
made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence
of the asset. Due to the judgements involved in such estimations, the useful life and residual value are sensitive to the actual usage in
future period.
Defined benefit obligation (DBO)
"The cost of the defined benefit plans and other long-term employee benefits and the present value of the obligation thereon 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, attrition and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, obligation amount is highly sensitive to the changes in
these assumptions.
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. Future salary increases are based on expected future inflation rates and expected
salary trends in the industry. Attrition rates are considered on long term basis for future periods after analysing past observable data on
employees leaving the services of the Company. The mortality rate is based on publicly available mortality tables. Those mortality tables
tend to change only at interval in response to demographic changes.
(d) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The
Company has evaluated and considered its operating cycle as 12 months.
Deferred tax assets/ liabilities are classified as non-current assets/ liabilities.
(e) Property, plant and equipment
Property, plant and equipment, capital work in progress are stated at cost less accumulated depreciation and accumulated impairment
losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the asset. An item of property, plant
and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are
expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit and loss within other income or expense (as
applicable).
Subsequent expenditure related to an item of the property, plant and equipment is added to its book value only if it increases the future
benefit from the existing assets beyond its previously assessed standard of performance. All other expenses on existing property, plan
and equipment, capital work in progress, including day-to-day repair and maintenance expenditure and cost of replacing parts, are
charged to the statement of Profit and Loss for the period during which such expenses are incurred.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital
advances under other non-current assets and the cost of assets not put to use before such date are disclosed under 'Capital work-in¬
progress'
The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. Freehold
land is not depreciated. The estimated useful lives of assets are as follows as per the indicative useful life prescribed in Schedule II to the
Companies Act, 2013:
The Company has evaluated the applicability of component accounting as prescribed under Ind AS 16 and Schedule II of the Companies
Act, 2013, the management has not identified any significant component having different useful lives. Schedule II requires the Company
to identify and depreciate significant components with different useful lives separately.
*Based on an internal technical assessment, the management believes that the useful lives as given above represents the period over
which management expects to use the assets. Hence, the useful lives for these assets is different from the useful lives as prescribed under
Part C of Schedule II of the Companies Act, 2013.
Depreciation methods, useful lives and residual values are reviewed periodically and updated as required, including at each financial
year end.
Capital work in progress represents projects under which the property, plant and equipment are not yet ready for their intended use and
are carried at cost determined as aforesaid.
(f) Investment property
Recognition and measurement
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. Investment property comprises
freehold land and building.
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties
are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
The Company measures investment property using cost based measurement and the fair value of investment property is disclosed in
the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.
Investment properties are derecognized either when they have been disposed of or when they are permanently withdrawn from use
and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying
amount of the asset is recognized in the Statement of Profit and Loss in the period of derecognition.
Depreciation
Depreciation on Investment Property (except freehold land) is provided, under the Straight Line Method, pro rata to the period of use,
based on useful lives specified in Schedule II to the Companies Act, 2013.
(g) Intangible assets
Intangible assets are recorded at the consideration paid for the acquisition of such assets and are carried at cost less accumulated
amortisation and impairment. Advances paid towards the acquisition of intangible assets outstanding at each Balance Sheet date are
disclosed as other non-current assets and the cost of intangible assets not ready for their intended use before such date are disclosed
as intangible assets under development.
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits
are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when
the asset is derecognised.
The residual values, useful lives and methods of amortization of intangible assets are reviewed at each financial year end and adjusted
prospectively, if appropriate. The amortisation expense on intangible assets with finite life is recognised in the statement of profit and
loss under the head Depreciation and amortization expense.
(h) Impairment of non-financial assets
"At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or
external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit.
An asset's recoverable amount is higher of an asset's or cash generating unit's fair value less cost of disposal and its value in use. If such
recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. In assessing value in use, the estimated future cash flow 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. In
determining fail value less cost of disposal, recent market transaction are taken into account, if available . If no such transactions can be
identified, an appropriate valuation model is used.
The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life.
If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount. Impairment losses previously recognised are accordingly reversed in the
Statement of Profit and Loss. The reversal is limited so that the carrying amount, of the asset does not exceed its recoverable amount,
nor exceeds the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in pervious years. Such reversal is recognised in the Statement of Profit and Loss unless the asset is carried at revalued amount,
in which case the reversal is treated as a revaluation increase.
(i) Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue
from Contracts is measured at transaction price net of variable consideration. Transaction price are net of returns, trade allowances,
rebates, other similar allowances, goods and services tax and amounts collected on behalf of third parties, if any.
Sale of goods
Revenue from the sale of goods is recognised at point in time when controls of promised goods are transferred to the customer (i.e.
upon satisfaction of performance obligation), generally on dispatch of the goods. The Company collects Goods and Services Tax ('GST')
on behalf of the Government and therefore, these are not economic benefits flowing to the Company and hence, they are excluded
from revenue.
Dividend income
Dividend income from investments is recognised when the shareholder's right to receive payment has been established.
Interest income
Interest income from a financial asset is recognized 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 a 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.
Rental income
Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals
are structured solely to increase in line with expected general inflation to compensate for the company's expected inflationary cost
increases, such increases are recognised in the year in which such benefits accrue.
Training and other service income
Revenue from training and other service income is recognised over the period when these services using an input method to measure
the progress towards complete satisfaction of the training and other services because the customer simultaneously receives and
consumes the benefits provided by the Company.
Duty drawback
Income from export incentives such as duty drawback is recognised on accrual basis when there is no significant uncertainty as to the
amount of consideration that would be derived and as to its ultimate collections exists.
(j) Employee benefits
Employee benefits include provident fund, employee state insurance scheme, superannuation fund, gratuity and compensated
absences. Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind AS 19, Employee Benefits.
Defined contribution plan
Retirement benefit in the form of provident fund and employee state insurance scheme is a defined contribution scheme. The Company
has no obligation, other than the contribution payable to the provident fund and employee state insurance scheme. The Company
recognises contribution payable to the schemes as an expenditure, when an employee renders the related service.
Defined benefit plan
Gratuity
Compensated absences
The Company provides benefit of compensated absences under which unavailed leave are allowed to be accumulated to be availed in
future. The compensated absences comprises of vesting as well as non vesting benefit. The cost of short term compensated absences
are provided for based on estimates. Long term compensated absence costs are provided for based on actuarial valuation using the
project unit credit method. The Company treats accumulated leave expected to be carried forward beyond 12 months, as long-term
employee benefit for measurement purposes. Actuarial gains/losses are immediately taken to the Statement of Profit and Loss and are
not deferred. The Company presents the leave as a current liability in the Balance Sheet, to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting date. Where the Company has the unconditional legal and contractual
right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.
The present value of the defined benefit obligation denominated in H is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of
the related obligation.
Service cost on the Company's defined benefit plan is included in employee benefits expense. Employee contributions, all of which are
independent of the number of years of service, are treated as a reduction of service cost. Net interest expense on the net defined benefit
liability is included in finance costs. Gains and losses through re-measurements of the defined benefit plans are recognized in other
comprehensive income, which are not reclassified to profit or loss in a subsequent period. Further, as required under Ind AS compliant
Schedule III, the Company transfers those amounts recognized in other comprehensive income to retained earnings in the statement of
changes in equity and in the balance sheet.
Compensated absences
The Company provides benefit of compensated absences under which unavailed leave are allowed to be accumulated to be availed in
future. The compensated absences comprises of vesting as well as non vesting benefit. The cost of short term compensated absences
are provided for based on estimates. Long term compensated absence costs are provided for based on actuarial valuation using the
project unit credit method. The Company treats accumulated leave expected to be carried forward beyond 12 months, as long-term
employee benefit for measurement purposes. Actuarial gains/losses are immediately taken to the Statement of Profit and Loss and are
not deferred. The Company presents the leave as a current liability in the Balance Sheet, to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting date. Where the Company has the unconditional legal and contractual
right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.
The present value of the defined benefit obligation denominated in H is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of
the related obligation.
Service cost on the Company's defined benefit plan is included in employee benefits expense. Employee contributions, all of which are
independent of the number of years of service, are treated as a reduction of service cost. Net interest expense on the net defined benefit
liability is included in finance costs.
Gains and losses through re-measurements of the defined benefit plans are recognized in other comprehensive income, which are not
reclassified to profit or loss in a subsequent period. Further, as required under Ind AS compliant Schedule III, the Company transfers those
amounts recognized in other comprehensive income to retained earnings in the statement of changes in equity and in the balance
sheet."
Gains and losses through re-measurements of the defined benefit plans are recognized in other comprehensive income, which are
not reclassified to profit or loss in a subsequent period. Further, as required under Ind AS compliant Schedule III, the Company transfers
those amounts recognized in other comprehensive income to retained earnings in the statement of changes in equity and in the
balance sheet.
Short-term employee benefits
All employee benefit payable wholly within twelve months of rendering the service are classified as short-term employee benefits
payable. These include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefit expected to
be paid in exchange for the service rendered by employees is charged to the Statement of Profit and Loss in the period in which such
services are rendered.
(k) Inventories
Inventories are valued at lower of costs and net realisable value.
Raw materials, components, stores and spares are valued at lower of cost and net realisable value. Cost is computed on a weighted
average basis. However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost.
Work-in-progress, finished goods and stock-in-trade are valued at lower of cost or net realisable value. Finished goods and work-in¬
progress include costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
Proceeds in respect of sale of raw materials/stores are credited to the respective heads. Obsolete, defective and unserviceable inventory
is duly provided for.
(l) Investments in subsidiaries and associates
The Company's investment in equity instruments in subsidiaries and associates are accounted for at cost. Where the carrying amount
of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the
difference is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds
and the carrying amount is charged or credited to the Statement of Profit and Loss.
(m) Taxes on income
Current income tax
Current 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.
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive
income (OCI) or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
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.
Current tax assets are offset against current tax liabilities if, and only if, a legally enforceable right exists to set off the recognized amounts
and there is an intention either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized 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 are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses.
Deferred tax assets are recognized 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 utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and is adjusted to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered.
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. Deferred tax relating to items
recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax
items are recognized in correlation to the underlying transaction either in OCI or directly in equity. 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.
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