3.22.1. Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of
a past event and 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. Provisions are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation at
the balance sheet date) at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The unwinding of the discount is recognized
as finance cost.
3.22.2. Contingent Liabilities
Contingent liability is a possible obligation arising from past events and the existence of which
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 recognized because it is not possible that an outflow of resources embodying
economic benefit will be required to settle the obligations or reliable estimate of the amount of
the obligations cannot be made. The Company discloses the existence of contingent liabilities in
Other Notes to Financial Statements.
3.22.3. Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to the
possibility of an inflow of economic benefits. Contingent Assets are not recognized though are
disclosed, where an inflow of economic benefits is probable.
3.22.4. Intangible Assets
3.22.4.1. Recognition and Measurement
Intangible assets are stated at cost on initial recognition and subsequently measured at
cost less accumulated amortization and accumulated impairment loss, if any.
3.23. Amortization
3.23.1. Software’s are amortized over a period of three years.
3.23.2. The amortization period and the amortization method are reviewed at least at the end of
each financial year. If the expected useful life of the assets is significantly different from
previous estimates, the amortization period is changed accordingly.
3.24. Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The chief operating decision maker of the Company is
responsible for allocating resources and assessing performance of the operating segments and
accordingly is identified as the chief operating decision maker. The Company has identified one
reportable segment only based on the information reviewed by the CODM.
4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING
POLICIES
4.1. Estimates and judgments are continually evaluated. They are based on historical experience
and other factors, including expectations of future events that may have a financial impact on
the Company and that are believed to be reasonable under the circumstances. Information
about Significant judgments and Key sources of estimation made in applying accounting
policies that have the most significant effects on the amounts recognized in the financial
statements is included in the following notes:
4.2. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized
is based on an assessment of the probability of the Company's future taxable income against
which the deferred tax assets can be utilized. In addition, significant judgment is required in
assessing the impact of any legal or economic limits.
4.3. Classification of Leases: The Company enters into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance lease or operating lease is based on an
assessment of several factors, including, but not limited to, transfer of ownership of leased
asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of
such option, proportion of lease term to the asset’s economic life, proportion of present value
of minimum lease payments to fair value of leased asset and extent of specialized nature of
the leased asset.
4.4. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is
applied. This incremental borrowing rate reflects the rate of interest that the lessee would
have to pay to borrow over a similar term, with a similar security, the funds necessary to
obtain an asset of a similar nature and value to the right of-use asset in a similar economic
environment. Determination of the incremental borrowing rate requires estimation.
4.5. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may
have a material impact on the resulting calculations.
4.6. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
'Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of
the contingent events is applied best judgment by management regarding the probability of
exposure to potential loss.
4.7. Impairment of Financial Assets: The Company reviews it carrying value of investments carried
at amortized cost annually, or more frequently when there is indication of impairment. If
recoverable amount is less than its carrying amount, the impairment loss is accounted for.
4.8. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts requires
use of judgment and estimates. Where the expectation is different from the original estimate,
such difference will impact the carrying value of the trade and other receivables and doubtful
debts expenses in the period in which such estimate has been changed.
4.9. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow model. The input to these models are taken from observable markets
where possible, but where this not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility.
Other Notes
4.10. Details of Crypto / Virtual Currency
4.11. There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the
Financial Year 2024-25
4.12. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31st March 2025. This information as required to be
disclosed under the micro, small and medium Development Act, 2006 has been determined to
the extent such parties have been identified on the basis of information available with
company.
4.13. The Note Referred to above form as an integral part of Balance Sheet.
For M/S V R S K & „
. . , Tiaan Consumer Limited
Associates
Chartered Accountants
CAVINEET GUPTA GEETA DEVI BHARAT BHUSHAN Ajay Khanna
Partner (Director) (Managing Director) (CFO)
Membership No. 089823 DIN-10313906 DIN-00538006 PAN: APFPK3683R
r „ , .... . , , 3198/15 Gali no 1,
... „ . , Farmana Khas 113 flat no 511, pocket-6, _
Firm Registrahon No. _ , A ^ . lL 4th floor sangatrashan
___° Rohtak Haryana sector b/4, Narela, north , .
011199N „„„„„„ .....„„„„ paharganj
124112 west Delhi 110040 , ,,
new delhi 110055
Place : New Delhi Dated : 29/05/2025 Dated : 29/05/2025 Dated : 29/05/2025
Dated : 29/05/2025
UDIN:
25089823BMIIVK7117
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