l) Provisions, Contingent Liabilities, Contingent Assets and Commitments
Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. The expense relating to a provision is presented in the statement of
profit and loss.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a
finance cost.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimates.
A contingent liability is a possible obligation that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company; or a present obligation that arises from
past events but is not recognised because it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation; or the amount of the
obligation cannot be measured with sufficient reliability. A contingent asset is disclosed, where
an inflow of economic benefits is probable.
m) Earnings Per Share
Basic earnings per share are 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 and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive potential equity shares.
n) Segment Reporting
The Company has only one segment of activity of dealing in IT products during the period;
hence segment wise reporting as defined in Indian Accounting Standard-108 is not applicable.
o) Inventory
Inventories are valued at cost or net realizable value whichever is lower, computed on a FIFO
basis, after providing for cost of obsolescence and other anticipate losses, wherever considered
necessary. Finished goods include costs of conversion and other costs incurred in bringing the
inventories to their present location and condition as certified by the management.
p) Retirement and Other Employee Benefits
Employee benefits include provident fund and compensated absences.
Defined Contribution Plans
Contributions payable to recognized provident funds, which are defined contribution schemes,
are charged to the standalone statement of profit and loss.
Short-T erm Employee Benefits
Short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised during the year when the employees render the service.
Compensated absences, which are expected to be utilised within the next 12 months, are
treated as short-term employee benefits. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as a result of the unused entitlement
that has accumulated at the reporting date.
q) Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value are unrestricted for withdrawal and usage
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company’s cash management.
r) Recent Accounting Pronouncements
Ind AS 116 ’Leases’:
The Company is required to adopt Ind AS 116, Leases from 1 April 2019. Ind AS 116
introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a
right-of-use asset representing its right to use the underlying asset and a lease liability
representing its obligation to make lease payments. There are recognition exemptions for
short-term leases and leases of low-value items. Lessor accounting remains similar to the
current standard — i.e. lessors continue to classify leases as finance or operating leases. It
replaces existing leases guidance, Ind AS 17, Leases.
The Company is in the process of evaluating the impact of the new lease standard on all its
lease arrangements and shall determine the appropriate transition option once the said
evaluation has been completed.
Ind AS 109 — Prepayment Features with Negative Compensation
The amendments relate to the existing requirements in Ind AS 109 regarding termination
rights in order to allow measurement at amortised cost (or, depending on the business model,
at fair value through other comprehensive income) even in the case of negative compensation
payments. The Company does not expect this amendment to have any impact on its standalone
financial statements.
(ix) Trade Receivables, Loans and Advances (Given and Taken) and Trade payables are subject to confirmation from the parties.
(x) The cost of materials consumed includes purchase of stock-in-trade and manfacturing of products with Job Work basis.
(xi) Figures for the previous year have been regrouped and/or re-classified wherever found necessary to make those comparable with the
figures and / or presentation for the current year.
As per our Report of even date For and on behalf of the Board
For S. Bhalotia & Associates
Chartered Accountants
Firm's Registration No :0325040E
Balakrishna Tati Tati Sai Teja
Managing Director Director
DIN 02181095 DIN: 09494526
CA Yogesh Saraf
Partner
Membership No : 468187
Place: Hyderabad Y. Kranthi Kumar Akash Jain
Date: 07-05-2025 Chief Financial Officer Company Secretary
UDIN:-25468187BNUJQG2234 M. No.: A41707
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