h) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources, that can be reliably estimated,
will be required to settle such an obligation. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows to net present value using
an appropriate pre-tax discount rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each
reporting date and are adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible
obligation arising from past events, 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.
Contingent assets are not recognized in financial statements since this may result in the recognition
of income that may never be realized. However, when the realization of income is virtually certain,
then the related asset is not a contingent asset and is recognized.
i) Revenue Recognition:
Revenue is measured at the fair value of the consideration received or receivable, net of discounts,
volume rebates, outgoing sales taxes and other indirect taxes excluding excise duty/GST.
Revenue from sales is recognised when all significant risks and rewards of ownership of the
commodity sold are transferred to the customer which generally coincides with delivery. Revenues
from sale of byproducts are included in revenue.
Export benefits are accounted on recognition of export sales.
j) Employee benefits:
i. The company has not undertaken any business activity during the year and moreover majority of
the employees of the company left the company and their dues are settled full and final over the
period of time. Considering this fact, the company has not followed the treatment for recognition
and remeasurement of employee benefit costs as detailed in the Ind AS 19.
However, for brought forward defined benefit plans recognized and remeasured during earlier
years, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Re-measurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net interest), was reflected immediately in the Balance
Sheet with a charge or credit recognized in Other Comprehensive Income (OCI) in the period in
which they occur. Re-measurement recognized in OCI was reflected immediately in retained
earnings and will not be reclassified to Statement of Profit and Loss. Past service cost was
recognized in the Statement of Profit and Loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit
liability or asset.
k) Income Tax:
Income Tax expenses comprise current tax and deferred tax charge or credit. Current Tax is
measured on the basis of estimated taxable income for the current accounting period in
accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other
applicable tax laws. Deferred tax is provided, on all temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to be
applied to the temporary differences when they reverse, based on the laws that have been enacted
or substantively enacted at the reporting date. Tax relating to items recognized directly in equity or
OCI is recognized in equity or OCI and not in the Statement Profit and Loss. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority. A deferred tax asset is recognized
to the extent that it is probable that future taxable profits will be available against which the
temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable. Deferred tax asset if any is created on the
temporary difference attributable to Property and Equipment and expense allowable on actual
payment basis and in case of accumulated losses and unabsorbed depreciation deferred tax asset is
only created to the extent of deferred tax liability, considering the certainty of future profits.
l) Earnings Per Share:
The basic Earnings Per Share ("EPS") is computed by dividing the net profit / (loss) after tax for the
year attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year
attributable to the equity shareholders and he weighted average number of equity shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
m) Foreign Currency Transactions:
In the financial statements of the Company, transactions in currencies other than the functional
currency are translated into the functional currency at the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in other currencies are translated into the
functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and
liabilities denominated in other currencies and measured at historical cost or fair value are
translated at the exchange rates prevailing on the dates on which such values were determined. All
exchange differences are included in the statement of profit and loss except any exchange
differences on monetary items designated as an effective hedging instrument of the currency risk
of designated forecasted sales or purchases, which are recognized in the other comprehensive
income. The Company has applied paragraph 46A of AS 11 under Indian GAAP. Ind AS 101 gives an
option, which has been exercised by the Company, whereby a first time adopter can continue its
Indian GAAP policy for accounting for exchange differences arising from translation of long-term
foreign currency monetary items recognized in the Indian GAAP financial statements for the period
ending immediately before the beginning of the first Ind AS financial reporting period.
n) Segment reporting
The Company has two reportable segments based on geographic locations India & New York.
Segments have been identified as reportable segments by the Company's chief operating decision
maker ("CODM"). Segment profit amounts are evaluated regularly by the Board, which has been
identified as the CODM, in deciding how to allocate resources and in assessing performance.
Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to
each of the segments and amount allocated on a reasonable basis. Unallocated expenditure
consists of common expenditure incurred for all the segments and expenses incurred at corporate
level. The assets and liabilities that cannot be allocated between the segments are shown as
unallocated corporate assets and liabilities respectively.
The accounting policies of the reportable segments are the same as the Company's accounting
policies described in Note 3. Segment profit (Earnings before interest, depreciation and
amortization, and tax) amounts are evaluated regularly by the Board that has been identified as its
CODM in deciding how to allocate resources and in assessing performance. The Company's
financing (including finance costs and finance income) and income taxes are reviewed on an overall
basis and are not allocated to operating segments. Transfer prices between operating segments are
on an arm's length basis in a manner similar to transactions with third parties.
However, during the current year the reportable segment did not exceed the quantitative
threshold limits as per the applicable accounting standard.
o) Financial Instruments:
Financial assets and financial liabilities are recognized when a Company becomes a party to the
contractual provisions of the instruments Initial Recognition. Financial assets and financial liabilities
are initially measured at fair value. Transaction costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities (other than financial assets and financial liabilities
at fair value through profit or loss and ancillary costs related to borrowings) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in Statement of Profit and
Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value
through other comprehensive income
• the entity's business model for managing the financial assets and
• the contractual cash flow characteristics of the financial asset.
Amortized Cost:
A financial asset shall be classified and measured at amortized cost if both of the following
conditions are met
• the financial asset is held within a business model whose objective is to hold financial
assets 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
Fair Value through OCI:
A financial asset shall be classified and measured at fair value through OCI if both of the following
conditions are met:
• the financial asset 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
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at fair value through profit or loss unless it is
measured at amortized cost or at fair value through OCI.All recognized financial assets are
subsequently measured in their entirety at either amortized cost or fair value, depending on the
classification of the financial assets.
Classification and Subsequent Measurement: Financial liabilities
Financial liabilities are classified as either financial liabilities at FVTPL or 'other financial l liabilities.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are
designated upon initial recognition as FVTPL: Gains or Losses on liabilities held for trading are
recognized in the Statement of Profit and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently
measured at amortized cost using the effective interest method.
Impairment of financial assets:
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of
each reporting period.
Trade receivables amounting to Rs 671.07 lacs which are long overdue and not provided for
allowance for expected credit loss have not been recognized on these financial assets. The
company has neither carried out impairment exercises of Trade Receivables nor provided for the
same and recognized the same as non-current assets since long outstanding.
Derecognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company
recognizes its retained interest in the asset and an associated liability for amounts it may have to
pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognize the financial asset and also recognizes a
collateralized borrowing for the proceeds received. On de recognition of a financial asset, other
than investments classified as FVOCI, in its entirety, the difference between the asset's carrying
amount and the sum of the consideration received and receivable and the cumulative gain or loss
that had been recognized in other comprehensive income and accumulated in equity is recognized
in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on
disposal of that financial asset.
p) Financial Instruments
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by a Company are recognized at the
proceeds received.
q) Cash and cash equivalents:
Cash and cash equivalents in the Balance Sheet comprise cash at bank, Cheques and Cash in hand
and short-term deposits with banks that are readily convertible into cash which are subject to
insignificant risk of changes in value and are held for the purpose of meeting short-term cash
commitments.
r) Use of Estimates and Judgments
The preparation of the financial statements in conformity with Ind AS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets
and liabilities at the date of these financial statements and the reported amounts of revenues and
expenses for the years presented. Actual results may differ from these estimates under different
assumptions and conditions. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized in the period in which the estimate is
revised and future periods affected.
FOR KAPIL KUMAR & CO
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO: 006241N
MOHIT KAKKAR
(PARTNER)
MEMBERSHIP NUMBER: 538844
28th May, 2025
New Delhi
UDIN: 25538844BMIWOO8380
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