Accounting Policies of Variman Global Enterprises Ltd. Company

Mar 31, 2025

2. Material accounting policies

Material accounting policies adopted by the company are as under:

2.1 Basis for Preparation of Financial Statements:

a) Statement of Compliance with Ind AS

These financial statements have been prepared in accordance with
Indian Accounting Standards (Ind AS) as per the Companies (Indian
Accounting Standards) Rules, 2015 notified under section 133 of the
Companies Act, 2013 as amended from time to time.

Accounting policies have been consistently applied to all the years
presented except where a newly issued Accounting Standard is initially
adopted or a revision to an existing Accounting Standard requires a
change in the accounting policy hitherto in use. These financial
statements have been prepared for the Company as a going concern on
the basis of relevant Ind AS that are effective at the Company''s annual
reporting date March 31,2025.

The Ind AS financial statements were approved by the Board of
Directors of the Company on May 30, 2025.

b) Basis of measurement

The financial statements have been prepared on a historical cost
convention on accrual basis, except for the following material items that
have been measured at fair value as required by relevant Ind AS: -

i. Certain financial assets and liabilities measured at fair value (refer Note -
2.21 accounting policy on financial instruments)

ii. Net defined employee benefit assets / (liability) are measured at fair
value of plan assets, less present value of defined benefit obligations.

iii. Share based payment transactions are measured at fair value.

All the assets and liabilities have been classified as current or non¬
current as per the Company''s normal operating cycle and other criteria
set out in Division II - Ind AS Schedule III to the Act. The Company
presents assets and liabilities in the balance sheet based on current/
non-current classification.

An asset is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal
operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period,
or

• Cash or cash equivalent unless restricted
All other assets are classified as non-current.

• A liability is classified as 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 the Company classifies all
other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets
and liabilities respectively.

The operating cycle is the time between the acquisition of assets for
processing and their realization in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.

c) Presentation currency and rounding off.

The financial statements are presented in INR and all values are
rounded to nearest lakhs (INR 00,000), except when otherwise
indicated.

d) Uses of Estimates and judgments:

The preparation of standalone financial statements in conformity with
Ind AS requires the management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities as at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures of contingent
liabilities as at the Balance Sheet date. The estimates and assumptions
used in the accompanying financial statements are based upon the
Management''s evaluation of the relevant facts and circumstances as at
the date of the financial statements. Actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on a
periodic basis. Revisions to accounting estimates, if any, are recognised
in the year in which the estimates are revised and in any future years
affected. Refer Note 2.27 for detailed discussion on estimates and
judgements. Information about significant areas of estimation
uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amounts recognised in the
standalone financial statements is included in the following notes:

• Useful lives of property, plant and equipment;

• Impairment;

• Financial instruments;

• Employee benefits;

• Provisions;

• Income taxes

2.2 Current and Non-Current Classification:

Current assets / liabilities include the current portion of non-current
assets / liabilities respectively. All other assets /liabilities including
deferred tax assets and liabilities are classified as non-current.

All assets and liabilities have been classified as current or non-current as
per the Company''s operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based on the nature of
services and the time between the rendering of service and their
realisation in cash and cash equivalents, the Company has ascertained
its operating cycle as twelve months for the purpose of current and non¬
current classification of assets and liabilities.

2.3 Property Plant and Equipment (Ind AS 16):

Items of property, plant and equipment are measured at historical cost

less accumulated depreciation and accumulated impairment losses, if
any. The cost comprises purchase price, taxes (other than those
subsequently recoverable from tax authorities), borrowing cost if
capitalisation criteria are met and directly attributable cost of bringing the
asset to its working condition for the intended use.

“Subsequent costs are included in the asset''s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repairs and maintenance are
charged to Statement of Profit and Loss during the year in which they are
incurred.

An item of property, plant and equipment and any significant part initially
recognised is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. 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 income statement when the asset is derecognized.”

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''.

Depreciation methods, estimated useful lives:

Items of Property, Plant and Equipment are stated at cost less
accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase
price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the
site on which it is located.

The cost of a self-constructed item of property, plant and equipment
comprises the cost of materials and direct labour, any other costs directly
attributable to bringing the item to working condition for its intended use,
and estimated costs of dismantling and removing the item and restoring
the site on which it is located.

If significant parts of an item of property, plant and equipment have
different useful lives, then they are accounted for as separate items
(major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment
is recognized in profit or loss.

Assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which
the asset''s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset''s fair value less cost of
disposal and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units).

Depreciation on the fixed assets has been provided based on useful
lives as prescribed under part C of schedule II of the Companies act,
2013.

Depreciation method, useful lives and residual values are reviewed at each

financial year-end and adjusted if appropriate.

S. No	Asset	Useful life (in Years)
1	Plant and Machinery	5-6
2	Electrical Installations	3-5
4	Comput ers	2-4
6	Servers & Networks	2-4
5	Office Equipment	2-5
6	Furniture & Fixtures	2-5
7	Vehicles	5-6

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from
(upto) the date on which the asset is ready for use (disposed of).

2.4 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and
assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortization period and the
amortization method are reviewed at least at each financial year end.
Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset is
accounted for by changing the amortization period or method, as
appropriate, and are treated as change in accounting estimates. The
amortization expense on intangible assets with finite useful lives is
recognized in profit or loss.

2.5 Investment in Subsidiaries

Investment in Subsidiaries are valued at cost. Dividend income from
subsidiaries is recognised when its right to receive the dividend is
established.

2.6 Trade and other payables

These amounts represent liabilities for goods and services provided to
the company prior to the end of the financial year which are unpaid. The
amounts are unsecured and are usually paid within the normal trade
cycle as per agreement. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the
reporting period.

2.7 Effects of changes in foreign exchange rates (Ind AS 21):

During the financial year the company has not entered into any foreign
exchange transactions. Hence this Ind AS does not have any financial
impact on the financial statements of the company.

2.8 Impairment of non-financial assets/unlisted equity investments

The carrying amounts of the Company''s tangible and intangible assets,
including unlisted equity investments, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any
such indication exists, then the asset''s recoverable amount is estimated
in order to determine the extent of the impairment loss, if any.

The recoverable amount of an asset or cash-generating unit is the
greater of its value in use and its fair value less costs of disposal. In
assessing value in use, the estimated future cash flows 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 risks specific to
the asset or the cash generating unit for which the estimates of future
cash flows have not been adjusted. For the purpose of impairment
testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets.

An impairment loss is recognized in the statement of profit or loss if the
estimated recoverable amount of an asset or its cash generating unit is
lower than its carrying amount. If, at the reporting date there is an
indication that a previously assessed impairment loss no longer exists,
the recoverable amount is reassessed and reversed only to the extent
that the asset''s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortization, if
no impairment loss had been previously recognized.

2.9 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7,
whereby profit/(loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are
segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

a. Non-cash items: Nil

b. Changes in Liability Arising from Financing Activity

Particulars	01-04-2024	Cash Flow - Incr. / (Decr)	31-03-2025
Current Borrowi ngs	668.65	(668.65)	0
Non-current Borrowings	590.03	885.95	1475.98
Total	1258.68	217.30	1475.98

2.10 Capital Work in Progress

Capital Work in Progress (CWIP) includes Plant & Equipment under
erection and Preoperative Expenditure pending allocation on the assets
to be acquired/commissioned, capitalized. It also includes payments
made towards technical know-how fee and for other General
Administrative Expenses incurred for bringing the asset into existence.

2.11 Investments

Investments are classified as Non-Current and Current investments.
Investments, which are readily realisable and are intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non¬
Current Investments are carried at cost less provision for other than
temporary diminution, if any, in value of such investments.

2.12 Borrowing Costs (Ind AS 23):

Borrowing costs that are attributable to the acquisition or construction of
qualifying assets up to the date of capitalization of such asset are
capitalized as part of the cost of such assets. All other borrowing costs
are charged to the Statement of Profit and Loss.

2.13 Revenue Recognition (Ind AS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized:

• Sales Revenue is recognized on dispatch to customers as per the terms
of the order. Sales Revenue is net of returns and applicable trade
discounts and excluding GST billed to the customers.

• Subsidy from Government is recognized when such subsidy has been
earned by the company and it is reasonably certain that the ultimate
collection will be made.

• Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head “other income” in the
statement of profit and loss.

• All other incomes are recognized based on the communications held
with the parties and based on the certainty of the incomes.

2.14 Inventories (Ind AS 2):

Inventories at the year-end are valued as under:

Raw Materials, Packing Material, Components, Consumables and Stores & Spares	At Cost as per First in First out Method (FIFO)
Work in Progress and Finished goods	At lower of net realizable value and Cost of Materials plus Cost of Conversion and other costs incurred in bringing them to the present location and condition

• Cost of Material excludes duties and taxes which are subsequently
recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the
time of dispatch from Factories.

2.15 Retirement and other Employee Benefits (Ind AS 19):

The Company has an obligation towards gratuity, Post-retirement
Medical Facility and Other Defined Retirement Benefit which are being
considered as defined benefit plans covering eligible employees.
Under the defined benefit plans, the amount that an employee will
receive on retirement is defined by reference to the employee''s length
of service, final salary, and other defined parameters. The legal
obligation for any benefits remains with the Company, even if plan
assets for funding the defined benefit plan have been set aside.

Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as expenditure,
when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing
the benefits under this plan has not determined on the basis of
actuarial valuation at each year-end. Further, the Company has not
maintained a gratuity fund or made any provision for gratuity in its
books, resulting in non-compliance with the prescribed accounting
treatment for defined benefit plans.

Accumulated leave, which is expected to be utilized within the next 12
months, is treated as short term employee benefit. The Company has
not provided any provision for leave encashment.

2.16 Ind AS 116- Leases

The Company assesses whether a contract is or contains a lease at
the inception of the contract. A contract is classified as a lease if it
conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.

a) As a Lessee

The Company applies the single lease accounting model for all leases,
except for:

Short-term leases (lease term of 12 months or less), and
Leases of low-value assets (such as small office equipment)

For these exempted leases, the Company recognises lease payments
as an expense on a straight-line basis over the lease term.

For all other leases, the Company recognises a right-of-use (ROU)
asset and a corresponding lease liability at the lease commencement
date.

The ROU asset is initially measured at cost and subsequently
depreciated on a straight-line basis over the shorter of the lease term
or useful life of the asset. It is also adjusted for impairment losses, if
any.

The lease liability is initially measured at the present value of future
lease payments, discounted using the Company''s incremental
borrowing rate. Subsequently, it is measured at amortised cost using
the effective interest method.

Lease liabilities are re-measured when there is a change in future
lease payments arising from a change in an index or rate or a
reassessment of the lease term. The corresponding adjustment is
made to the carrying amount of the ROU asset.

b) Lease Term

The lease term includes the non-cancellable period of the lease and
any periods covered by an option to extend or terminate the lease, if
the Company is reasonably certain to exercise or not exercise those
options.

c) Disclosure

The Company has applied the exemption available under Ind AS 116
for leases of low-value assets and leases with lease terms of 12
months or less.

These provisions are not applicable to the company therefore, such
lease payments are not recognised as an expense in the Statement of
Profit and Loss on a straight-line basis over the lease term.

2.17 Insurance Claims:

Insurance Claims are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that the amount
recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

2.18 Earnings per Share (Ind AS 33):

Basic earnings per share is 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.
Diluted EPS is determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of equity
shares outstanding for the effects of all dilutive potential ordinary
shares.

2.19 Segment Reporting (Ind AS 108):

The Company is engaged in multiple lines of business, including the
distribution of IT and IT-related goods and services, retail sale of toys,
and apparels. These operations are carried out across different
customer segments and distribution channels, supported by
continuous market development and operational improvement
initiatives.

In accordance with the requirements of Ind AS 108 - Operating
Segments, the Company has identified and disclosed reportable
segments. The segments are primarily based on the nature of
products and services, the class of customers, and the risk-return
profiles of each business activity.

Accordingly, segment reporting is applicable to the Company, and
detailed disclosures have been provided in the notes forming part of
the financial statements.

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Mar 31, 2024

2. Material accounting policies

Material accounting policies adopted by the company are as under:

2.1 Basisfor Preparation of financial statements:

a) Statement of Compliance with IndAS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act, 2013as amended from time to time.

Accounting policies have been consistently applied to all the years presented except where a newly issued AccountingStandard is initially adopted or a revision to an existing Accounting Standard requires a change in the accountingpolicy hitherto in use. These financial statements have been prepared for the Company as a going concern on thebasis of relevant Ind AS that are effective at the Company’s annual reporting date March 31,2024.

The IndAS financial statements were approved by the Board of Directors of the Company on May 30,2024.

b) Basis of measurement

The financial statements have been prepared on a historical cost convention on accrual basis, except for the followingmaterial items that have been measured atfair value as required by relevant IndAS: -

i. Certain financial assets and liabilities measured at fair value (refer Note -2.21 accounting policy on financialinstruments)

ii. Net defined employee benefit assets/(liability) are measured at fair value of plan assets, less present value ofdefined benefit obligations.

iii. Share based payment transactions are measured at fair value.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operatingcycle and other criteria set out in Division II - Ind AS Schedule III to the Act. The Company presents assets andliabilities in the balance sheet based on current/ non-current classification.

An asset is classified as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarilyforthe purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted All other assets are classified as non-current.

• Aliability is classified as current when:

• It is expected to be settled in normal operating cycle

• It is held primarilyforthe purpose of trading

• It is due to be settled within twelve months afterthe reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reportingperiod the Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cashequivalents. The Company has identified twelve months as its operating cycle.

c) Presentation currency and rounding off

The financial statements are presented in I NR and all values are rounded to nearest lakhs (INR 00,000), except whenotherwise indicated.

d) Uses of Estimates and judgments:

The preparation of standalone financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as at the Balance Sheet date, reportedamount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date.The estimates and assumptions used in the accompanying financial statements are based upon the Management’sevaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results coulddifferfrom these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions toaccounting estimates, if any, are recognised in the year in which the estimates are revised and in any future yearsaffected. Refer Note 2.27 for detailed discussion on estimates and judgements.! nformation about significant areas of estimation uncertainty and critical judgements in applying accounting policiesthat have the most significant effect on the amounts recognised in the standalone financial statements is included inthefollowing notes:

• Useful lives of property, plant and equipment;

• Impairment;

• Financial instruments;

• Employee benefits;

• Provisions;

• Income taxes

2.2 Currentand Non-Current Classification:

Current assets / liabilities include the current portion of non-current assets / liabilities respectively. All other assets /liabilities including deferred tax assets and liabilities are classified as non-current.

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and othercriteria set out in the Schedule III tothe Companies Act, 2013. Based on the nature of services and the time betweenthe rendering of service and their realisation in cash and cashequivalents, the Company has ascertained its operatingcycle as twelve months for the purpose of current and non-current classification of assets andliabilities.

2.3 Property Plant and Equipment (Ind AS 16):

Items of property, plant and equipment are measured at historical cost less accumulated depreciation andaccumulated impairment losses, if any. The cost comprises purchase price, taxes (other than those subsequentlyrecoverable from tax authorities), borrowing cost if capitalisation criteria are met anddirectly attributable cost ofbringing the assetto its working condition forthe intended use.

“Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,only when it is probable that future economic benefits associated with the item will flow to the Company and the costof the item can be measured reliably. The carrying amount of any component accounted for as a separate asset isderecognized when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss duringthe year in which they are incurred.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposalor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognitionof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) isincluded in the income statement when the asset is derecognised.”

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''.

Depreciation methods, estimated useful lives:

Items of Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cashgenerating units).

Depreciation on the fixed assets has been provided based on useful lives as prescribed under part C of schedule II of the Companies act, 2013.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from (upto) the date on which the asset is ready for use (disposed of).

2.4 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as change in accounting estimates. The amortization expense on intangible assets with finite useful lives is recognized in profit or loss.

2.5 Investment in Subsidiaries

Investment in Subsidiaries are valued at cost. Dividend income from subsidiaries is recognised when its right to receivethe dividend is established.

2.6 Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financialyear which are unpaid. The amounts are unsecured and are usually paid within the normal trade cycle as peragreement. Trade and other payables are presented as current liabilities unless payment is not due within 12 monthsafter the reporting period.

2.7 Effects of changes in foreign exchange rates (Ind AS 21):

During the financial year the company has not entered into any foreign exchange transactions. Hence this Ind AS does not have any financial impact on the financial statements of the company.

2.8 Impairment of non-financial assets/unlisted equity investments

The carrying amounts of the Company’s tangible and intangible assets, including unlisted equity investments, arere viewed at each reporting date to determine whether there is any indication of impairment. If any such indicationexists, then the asset’s recoverable amount is estimated in order to determine the extent of the impairment loss, if any.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value lesscosts of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific tothe asset or the cash generating unit for which the estimates of future cash flows have not been adjusted. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cashinflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets.

An impairment loss is recognised in the statement of profit or loss if the estimated recoverable amount of an asset or its cash generating unit is lower than its carrying amount. If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been previously recognised.

2.9 Cash FlowStatement(lndAS7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

a. Non-cash items: Nil

b. Changes in Liability Arising from Financing Activity

2.10 Capital Work in Progress

Capital Work in Progress (CWIP) includes Plant & Equipment under erection and Preoperative Expenditure pending allocation on the assets to be acquired/commissioned, capitalized. It also includes payments made towards technical know-how fee and for other General Administrative Expenses incurred for bringing the asset into existence.

Investments are classified as Non-Current and Current investments. Investments, which are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value. NonCurrent Investments are carried at cost less provision for other than temporary diminution, if any, in value of such investments.

2.11 Borrowing Costs (Ind AS 23):

Borrowing costs that are attributable to the acquisition or construction of qualifying assets up to the date of capitalization of such asset are capitalized as part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss.

2.12 Revenue Recognition (IndAS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

• Sales Revenue is recognized on dispatch to customers as per the terms of the order. Sales Revenue is net of returns and applicable trade discounts and excluding GST billed to the customers.

• Subsidy from Government is recognized when such subsidy has been earned by the company and it is reasonably certain that the ultimate collection will be made.

• Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.

• All other incomes are recognized based on the communications held with the parties and based on the certainty of the incomes.

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatchfrom Factories.

2.14 Retirement and other Employee Benefits (Ind AS 19):

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits under this plan has not determined on the basis of actuarial valuation at each year-end.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short term employee benefit. The Company has not provided any provision for leave encashment.

2.15 Ind AS 17-Leases

Finance charges in respect of finance lease obligations are recognized as finance costs in the statement of profit and loss. In respect of operating leases for premises, which are cancellable / renewable by mutual consent on agreed terms, the aggregate lease rents payable is charged as rent in the Statement of Profit and Loss.

2.16 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.17 EarningsperShare (IndAS 33):

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equityshareholders by the weighted average number of equity shares outstanding during the period.Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders and the weighted averagenumber of equity shares outstanding for the effects of all dilutive potential ordinary shares.

2.18 Segment Reporting:

The company operates business in providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement through agility under single segment. Hence reporting is not applicable.

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Mar 31, 2023

Corporate Information:

“VARIMAN GLOBAL ENTERPRISES LIMITED” is engaged in the business of providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement through agility. It is public company domiciled in India and incorporated under the provisions of Companies Act, 1956 applicable in India and it was incorporated in India in the year 1993 having its Registered office at 1-2-217/10, 3rd & 4th Floor Gagan Mahal, Domalguda Hyderabad 500029. The shares of the company are listed in Bombay Stock Exchange.

The above financial statements were authorized for issue in accordance with a resolution of the Board of directors on 30-05-2023.

1. Basis for Preparation of financial statements:

a. Compliance with Indian Accounting Standards (Ind AS)

The Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act, 2013.

The financial statements have been prepared on the historical cost basis except for certain instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss for the year ended 31st March 2023, the Statement of Cash Flows for the year ended 31st March 2023 and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory information (together hereinafter referred to as ‘Ind AS Financial Statements'' or ‘financial statements'').

b. Basis of Preparation of financial statements

The standalone financial statements of the company have been prepared in accordance with Indian Accounting Standards (‘Ind AS'') notified under The Companies (Indian Accounting Standards) Rules 2015(as amended from time to time) and presentation requirements of Division II of Schedule III of companies Act, 2013. as applicable to the Standalone Financial Statements.

The standalone financial statements have been prepared om historical cost basis and consistent with previous year subject changes in

accounting policies. The Standalone financial statements are prepared in INR.

c. Uses of Estimates and judgments:

The preparation of standalone financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the end of the reporting year. Although these estimates are based on the management bet knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes of requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.

The areas involving critical estimates or judgments are:

S. No	Name of the estimate	Note No	Remarks
1	Fair value of unlisted equity securities	Note No.2.9	Unlisted equity shares are held by the company carried at cost and no diminution in value.
2	Goodwill impairment	Not applicable	No goodwill
3	Useful life of intangible asset	Not Applicable	No intangible assets held by the company for the current financial year
4	Measurement of contingent liabilities and contingent purchase consideration in a business combination	Not applicable	Contingent transactions are recognized based on happening contingent event. No contingent liabilities for the report
5	Current tax expense and curre nt tax payable	Note No.8	As per the Ind AS.12
6	Deferred tax assets for carried forward tax losses	Note No.8	As per the Ind AS.12
7	Impairment of financial assets	Note No.2.22	As per Ind AS 16

d. Historical cost convention and Accrual basis:

The separate financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) under historical cost convention on accrual basis as per the provisions of Companies Act 2013.

• Financial instruments - measured at fair value;

• Assets held for sale - measured at fair value less cost of sale;

• Plan assets under defined benefit plans - measured at fair value

• Employee share-based payments - measured at fair value

• Biological assets - measured at fair value

• In addition, the carrying values of recognized assets and liabilities, designated as hedged items in fair value hedges that would otherwise be carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationship.

e. Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is classified as current when it satisfies any of the following criteria: it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle.it is held primarily for the purpose of being traded;

• It is expected to be realized within 12 months after the reporting date; or

• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

• All other assets are classified as non-current.

• A liability is classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company''s normal operating cycle;

• It is held primarily for the purpose of being traded

• It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification

• All other liabilities are classified as non-current

2. Significant accounting policies:

A summary of the significant accounting policies applied in the preparation of the financial statements is as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

2.1 Property Plant and Equipment (Ind AS 16):

Tangible Assets:

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value:

Items of Property, Plant and Equipment are stated at cost less accumulated depreciation.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labor, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

Depreciation on the fixed assets has been provided based on useful lives as prescribed under part C of the schedule II of the Companies act, 2013.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

S. No	Asset	Useful life (in Years)
1	Plant and Machinery	5-6
2	Electrical Installations	3-5
4	Computers	2-4
6	Servers & Networks	2-4
5	Office Equipment	2-5
6	Furniture & Fixtures	2-5
7	Vehicles	5-6

Depreciation on additions (disposals) is provided on a pro-rata basis i.e., from (upto) the date on which asset is ready for use (disposed of).

2.2 Impairment Assets (Ind AS 36):

The Company''s non-financial assets, other than deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognized in the statement of profit and loss. Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

2.3 Intangible assets (Ind AS 38):

Intangible assets are amortized over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as change in accounting estimates. The amortization expense on intangible assets with finite useful lives is recognized in profit or loss.

2.4 Ind AS 105: Non-Current Assets held for Sale or Discontinued Operations: NIL2.5 Ind AS 106: Exploration for Evolution of Mineral resources:

This Ind AS 106 not applicable, the company is in the business of providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement through agility. Hence this Ind AS does not have any financial impact on the financial statements of the company.

2.6 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

a. Non-cash items: Nil

b. Changes in Liability Arising from Financing Activity

Particulars	01-04-2022	Cash Flow -Incr. / (Decr)	31-03-2023
Current Borrowings	158.47	142.64	301.11
Non-current Borrowings	137.90	251.86	389.76
Total	296.37	394.50	690.87

2.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months based on the nature of products and the time between the acquisition of assets for processing and their realization, for the purpose of current / non-current classification of assets and liabilities.

2.8 Capital Work in Progress

Capital Work in Progress (CWIP) includes, Plant & Equipment under erection and Preoperative Expenditure pending allocation on the assets to be acquired/commissioned, capitalized. It also includes payments made to towards technical know-how fee and for other General Administrative Expenses incurred for bringing the asset into existence.

Investments are classified as Non-Current and Current investments. Investments, which are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.

Current investments are carried at lower of cost and fair value. NonCurrent Investments are carried at cost less provision for other than temporary diminution, if any, in value of such investments.

2.9 Effects of changes in foreign exchange rates (Ind AS 21):

During the financial year the company has not entered into any foreign exchange transactions. Hence this Ind AS does not have any financial impact on the financial statements of the company.

2.10 Borrowing Costs (Ind AS 23):

Borrowing costs that are attributable to the acquisition or construction of qualifying assets up to the date of capitalization of such asset are capitalized as part of the cost of such assets. All other borrowing costs are charged to the Statement of Profit and Loss.

2.11 Revenue Recognition (Ind AS 18-Revenues):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

• Sales Revenue is recognized on dispatch to customers as per the terms of the order. Sales Revenue is net of returns and applicable trade discounts and excluding GST billed to the customers.

• Subsidy from Government is recognized when such subsidy has been earned by the company and it is reasonably certain that the ultimate collection will be made.

• Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head “other income” in the statement of profit and loss.

• All other incomes are recognized based on the communications held with the parties and based on the certainty of the incomes.

2.12 Accounting for Government Grants and Disclosure of Government Assistance (Ind AS 20):

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants are recognized in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognizes as expenses the related costs for which the grants are intended to compensate or when performance obligations are me.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and nonmonetary grants are recognized and disclosed as ‘deferred income'' under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favorable interest is treated as a government grant. The loan or assistance is initially recognized at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised to the income statement immediately on fulfillment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

2.13 Inventories (Ind AS 2):

Inventories at the year-end are valued as under:

Raw Materials, Packing Material, Components, Consumables and Stores & Spares	At Cost as per First in First out Method (FIFO)
Work in Progress and Finished goods	At lower of net realizable value and Cost of Materials plus Cost of Conversion and other costs incurred in bringing them to the present location and condition

• Cost of Material excludes duties and taxes which are subsequently recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the time of dispatch from Factories.

2.14 Trade Receivables - Doubtful debts:

Provision is made in the Accounts for Debts/Advances which is in the opinion of Management is Considered doubtful of Recovery.

2.15 Retirement and other Employee Benefits (Ind AS 19):

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing the benefits under this plan has not determined on the basis of actuarial valuation at each year-end.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short term employee benefit. The Company has not provided any provision for leave encashment.

2.16 Ind AS 17- Leases

Finance charges in respect of finance lease obligations are recognized as finance costs in the statement of profit and loss. In respect of operating leases for premises, which are cancellable / renewable by mutual consent on agreed terms, the aggregate lease rents payable is charged as rent in the Statement of Profit and Loss.

2.17 Insurance Claims:

Insurance Claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

2.18 Earnings per Share (Ind AS 33):

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. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

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.

2.19 Segment Reporting:

The company operates business in providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement through agility under single segment. Hence reporting is not applicable.

2.20 Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37):

The Company recognized provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources required to settle the obligation in respect of which a reliable estimate can be made A disclosure for Contingent liabilities is made when there is a possible obligation or present obligations that may, but probably will not, require an outflow of resources. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets are neither recognized nor disclosed in the financial statements.

2.21 Prior Period and Extraordinary and Exceptional Items:

• All Identifiable items of Income and Expenditure pertaining to prior period are accounted through ‘''Prior Period Items''''.

• Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly. The nature and the amount of each extraordinary item be separately disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can be perceived.

• Exceptional items are generally non-recurring items of income and expenses within profit or loss from ordinary activities, which are of such, nature or incidence.

2.22 Financial Instruments (Ind AS 107): Financial Instruments:I. Financial assets:

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

• Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset 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 amount outstanding.

• Financial assets at fair value through profit or loss (FVTPL)

A Financial asset which is not classified as AC or FVOCI are measured at FVTPL e.g. investments in mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in profit or loss and presented net in the Statement of Profit and Loss within other gains/(losses) in the period in which it arises.

• Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it 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 amount outstanding.

B. Investments in subsidiaries

The Company has accounted for its investments in subsidiaries at cost and not adjusted to fair value at the end of each reporting period. Cost represents amount paid for acquisition of the said investments.

II. Financial Liabilities

A. Initial recognition

All financial liabilities are recognized at fair value.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments

2.23 Events Reporting Period (Ind AS-10)

An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events after the reporting period.

2.24 Construction Contracts (Ind AS -11)

The company is in the business of providing solutions through software development, IT Infrastructure solutions and distributing IT Hardware to clients and partners through aggressive market development and continuous improvement through agility, hence Ind AS -11 Construction Contract not applicable.

2.25 Consolidated and Separate Financial Statement (Ind AS 27):

The company has two subsidiary companies for the current reporting period. Hence consolidate and separate financial statement are prepared as per the Ind AS 27.

2.26 Investments in Associates (Ind AS 28):

The company has not made any investments in any of its associates during the reporting period. This accounting standard has no financial impact on the financial statements for the current reporting period.

2.27 Interest in Joint Ventures (Ind AS 31)

The company has no interest in any Joint ventures. This accounting standard has no financial impact on the financial statements for the current reporting period.

2.28 Income Taxes (Ind AS 12)

Tax Expense comprises of current and deferred tax.

• Current Tax:

Current Tax on Income is determined and provided on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.

In the year in which ‘Minimum Alternative Tax ‘(MAT) on book profits is applicable and paid, eligible MAT credit equal to the excess of Mat paid over and above the normally computed tax, is recognized as an asset to be carried forward for set off against regular tax liability when it is probable that future economic benefit will flow to the Company within the MAT credit Entitlement period as specified under the provisions of Income Tax Act, 1961.

• Deferred Taxes:

Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of

deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

2.29 New and Amended Standards

Amendment to Ind AS 116: COVID -19 Related Rent Concessions:

The amendments provide relief to lessees from applying Ind AS 116 guidance on lease modification accounting for rent concessions arising as a direct consequence of Covid-19 pandemic. As a practical expedient, a lessee may elect not to access whether a Covid-19 related rent concession from a lessor is lease modification. A lessee that makes this election accounts for any change in lease payments resulting from COVID-19 related rent concession the same way it would account for the changes under Ind AS 116, if changes were not lease modifications. This Amendment had no impact on the standalone financial statements of the Company.

Amendment to Ind AS 1 and Ind AS 8: Definition of material:

The Amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it is reasonably be expected to influence decisions that the primary uses of general-purpose financial statements make on the basis of those financial statements, which provide financial information about specific reporting entity”. The amendments clarify that materiality will depend on the nature of magnitude of information, either individually or in combination with other information, in the context of the financial year statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on standalone financial statements of the company.

Amendment to Ind AS 107 and Ind AS 109: Interest Rate Benchmark Reform:

The amendments to Ind AS 109 Financial Instruments: Recognition and Measurements provide number of reliefs, which apply to all hedging relationships that are directly affected interest rate benchmark reform. A hedging relationship is affected if the reform gives raise to uncertainty about the timing and/or amount of bench mark -based cash flow of hedging items or hedging instrument. These amendments have no impact on the standalone financial statements of the company as it does not have any interest rate hedge relation.

The amendment to Ind AS 107 prescribe the disclosure which entities are required to make for hedging relationship to which the reliefs as per the amendments in Ind AS 109 are apply. This amendment had no impact on the standalone financial statement of the company.