g. Leases:
Where the Company as a lessor leases asset under finance leaser such amounts are recognized as receivables at an amount equal to the net investment in the lease and the finance income is recognized based on a constant rate of return on the outstanding net investment Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards Ý of ownership vest in the Company are classified as finance leases. Such leases are capitalized at the inception of the lease at the lower of the fair value and the present value of the minimum lease payments and a liability is created for an equivalent amount Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating leases. Lease rentals under operating leases are . recognized in the Statement of Profit and Loss on a straight-line basis, over the lease term.
h. Inventories
Items of inventories are measured at lower of cost and net realisable value after, providing for obsolescence, if any, except in cake of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase and other costs net of recoverable taxes incurred in bringing them to their respective present location and condition.
Valuation ofworkinprogress: - .
Work in Progress has been valued on basis of the incurred costs less the cost of progressive billing of' the projects.
L Taxes on Income
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 reserves directly. In such cases, the tax is also recognized in'the reserves.
- Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
-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 Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates [and tax laws] that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
j, Finance Cost
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost, Borrowing costs^gfea^directly attributable to the acquisition or construction of qualifying assets are capitaliz^^^p^^rafecost of such assets. A qualifying asset Is one that necessarily takes substantial perioM^li5neJo]|^swdy
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
k, Provisions
'Provisions are recognized 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,
l. Revenue recognition
Revenue from sale of goods Is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.
Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed. Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government
Interest income
Interest income and guarantee commission is accounted on an accrual basis,
Dividends
Revenue is recognized when the Company's right to receive the payment has been established.
, m. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions [excluding retirement benefits] are not discounted to their present values and are determined based on the best estimate required to settle the obligations at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates, Contingent liabilities are not recognized in the financial statements and are disclosed in the Notes. A Contingent asset is neither recognized nor disclosed in the financial-statements.
n. Earnings Per Share
Basic earnings per share is computed by dividing the profit/loss after tax by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit/loss after tax as adjusted for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average-number of equity
shares which could have been issued on the conversion of all dilutive poten£^^nT0^^hares.
Potential equity shares are deemed to be dilutive only if their conversion to
decrease the net profit per share from continuing ordinary operations. Ponymkl cbklfivby^wty
shares are deemed to be converted as at the beginning of the period, unless isauMlat
SI 1 . AHMEDABAO I__TI ,
Ý a later date. .The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.
p. The company has during the year created deferred tax assets of Rs. 719/- due to timing difference arising • on account of depreciation which in current year is lower under Income Tax act compared to books of
accounts.
q. Balances of creditors, Loans & Advances and Debtors are subject to confirmation by the parties concerned.
r. . As per Management, -in respect of goods and service tax / income tax liability company does not expect
any more liability than provided in the books of accounts.
s. Value of stock and work in progress at the yearend is taken, valued and certified by the management of the company.
t. As explained by management, goods are received mostly on F.O.B basis.
u. Sundiy Balances written off / written back or transferred through journal entry from one account to another account includes amount no more payable / receivable from the parties whose accounts are adjusted but the same are subject to confirmation from respective parties.
r* S H A
v. Dividend
For the year ended 31st March, 2025, the Board has not recommended any dividend
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