l) Provisions, Contingent Liabilities and Contingent Assets
i. 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 benefit will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The increase in the provision due to the passage of time is recognized as interest
expense.
ii. Contingent liabilities are 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 or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount cannot be made.
iii. Contingent assets are not recognized in the financial statements.
iv. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
m) Earnings per share
i. The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the
weighted average number of equities shares outstanding during the year.
ii. The diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the
weighted average number of equity and equivalent potential dilutive equity shares outstanding during the year, except where
the result would be anti-dilutive.
n) Taxation
i. Income tax expense for the year comprises of current tax and deferred tax. Current tax is the expected tax payable/ receivable
on the taxable income/ loss for the year using applicable tax rates for the relevant period, and any adjustment to taxes in
respect of previous years. Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
ii. Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized
amounts and there is an intention to settle the asset and the liability on a net basis.
iii. Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and
are expected to apply when the related deferred income tax assets is realized or the deferred income tax liability is settled.
iv. Deferred tax is recognized in Statement of profit and loss except to the extent that it relates to items recognized directly in
OCI or equity, in which case it is recognized in OCI or equity. Deferred tax liabilities are generally recognized for all taxable
temporary differences. 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 that the related tax benefit will be realized.
o) Government Grants
i. Government grants are recognized where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to expense item, it is recognized in the Statement of Profit and Loss
on a systematic basis over the periods to which they relate for which it is intended to compensate, are expensed.
ii. When the grant relates to an asset, it is treated as deferred income and recognized in the Statement of Profit and Loss on a
systematic basis over the useful life of the asset.
p) Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits with banks, other short-term highly liquid investments with
original maturities of three months or less.
q) Cash flow statement
Cash flows are reported using indirect method, whereby net profits before tax are adjusted for the effects of transactions of a non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments and items of income or expenses associated
with investing or financing cash flows. The cash flows from regular revenue generating (operating) activities, investing activities
and financing activities of the Company are segregated.
r) Employee Benefits
i. Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognized in respect of employees' services
up to the end of the reporting period and are measured at the amounts expected to be incurred when the liabilities are settled.
ii. Long Term Employee Benefit Plan
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. Expense
on non- accumulating compensated absences is recognized in the period in which the compensated absences occur.
iii. Post Separation Employee Benefit Plan
Defined Benefit Plan
Liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the
end of each reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by the
Company. This cost is included in employee benefit expense in the statement of profit and loss.
Defined Contribution Plans
Defined contribution plans are Employee Provident Fund scheme and Employee State Insurance scheme for eligible
employees.
The Company's contribution to defined contribution plans is recognized as an expense in the Statement of Profit and Loss as
they fall due.
s) Leases
Company as a lessor:
Lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract.
Examples of situations that individually or in combination would normally lead to a lease being classified as a finance lease are:
(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term;
(b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair
value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be
exercised;
(c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred.
(d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the
underlying asset; and
(e) the underlying asset is of such a specialized nature that only the lessee can use it without major modifications.
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset is
classified as operating leases. Rental income arising on account of operating lease are recorded on a straight-line basis over the
lease terms.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company
to the lessee.
Where the Company is the lessee
Right of use assets and lease liabilities
A lease is defined as 'a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period
of time in exchange for consideration'. The Company enters into leasing arrangements for various assets. To assess whether a
contract conveys the right to control the use of an identified asset, the Company assesses whether:
i. the contract involves the use of an identified asset,
ii. the Company obtains substantially all of the economic benefits from use of the asset through the period of the lease and
iii. the Company has the right to direct the use of the asset.
Recognition and initial measurement
At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance sheet. The right-
of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred
by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease
payments made in advance of the lease commencement date (net of any incentives received).
Subsequent measurement
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the
end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for
impairment when such indicators exist.
At lease commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company's incremental borrowing
rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance
fixed payments). Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest.
It is re-measured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the
lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead
of recognizing a right-of use asset and lease liability, the payments in relation to these are recognized as an expense in statement
of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified
as operating leases. Rental income from operating lease is recognized on a straight-line basis or another systematic basis as
per the terms of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are
recognized as revenue in the period in which they are earned.
t) Dividend
The Company recognizes a liability for any dividend declared but not distributed at the end of the reporting period, when the
distribution is authorized and the distribution is no longer at the discretion of the Company on or before the end of the reporting
period. As per Corporate laws in India, a distribution is authorized when it is approved by the shareholders. A corresponding
amount is recognized directly in equity.
• Financial assets and liabilities such as trade receivables, cash and cash equivalent, bank balance other than cash and cash
equivalents, borrowing, trade payables etc. are largely short-term in nature. The fair values of these financial assets and liabilities
approximate their carrying amount due to the short-term nature of such assets and liabilities.
Fair Value Hierarchy
The fair value of financial instruments as referred to in note above have been classified into three categories depending on the inputs
used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or
liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
• Level 1: The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet
date;
• Level 2: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques
using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on
market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of
comparable arm's length transactions; and
• Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are
not based on observable market data (unobservable inputs).
Calculation of Fair Values
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate
the fair values are consistent with prior years.
Financial assets and liabilities measured at fair value as at Balance Sheet date:
1. The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these mutual
fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further
units of mutual fund and the price at which issuers will redeem such units from the investors.
2. The fair values of the derivative financial instruments have been determined using valuation techniques with market observable
inputs. The models incorporate various inputs including the credit quality of counter-parties and foreign exchange forward rates.
3. Loans - Security Deposits have fair values that approximate to their carrying amounts as it is based on the net present value of
the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.
Note 36: Financial Risk Management
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company's primary focus
is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
i) Credit Risk
Credit risk arises from trade receivables, cash and cash equivalents and deposits with banks and financial institutions.
A default on a financial asset is when the counter party fails to make contractual payments within agreed credit terms from the
date when they fall due. This definition of default is determined by considering the business environment in which entity operates
and other macro-economic factors.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ' 87.61 lakhs
(March 31, 2023 - ' 85.95 lakhs) shown as current as at reporting date. Trade receivables are typically unsecured. Credit risk
is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to
which the Company grants credit terms in the normal course of business. The Company expects that estimate of expected credit
loss for impairment is immaterial based on historical trend and the nature of business. No provision is considered necessary as
at reporting date and Management continuously assesses the requirement for provision on ongoing basis. During the year, the
Company has made no write-offs of trade receivables.
The Company's exposure to credit risk, excluding receivables from related parties, is influenced mainly by the individual
characteristic of each customer
ii) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company's reputation.
The Management regularly monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flows to
ensure it has sufficient cash to meet ongoing operational fund requirements.
Note 37 Capital management
The Company's capital management objectives are:
- to ensure the Company's ability to continue as a going concern
- to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face
of balance sheet.
Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding
excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company
manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics
of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
Note 38 Revenue from Contracts with Customers
Indian Accounting Standard 115, 'Revenue from Contracts with Customers' (“Ind AS 115”), establishes a framework for determining
whether, how much and when revenue is recognized and requires disclosures about the nature, amount, timing and uncertainty of
revenues and cash flows arising from customer contracts. Under Ind AS 115, revenue is recognized through a 5-step approach:
(i) Identify the contract(s) with customer;
(ii) Identify separate performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognize revenue when a performance obligation is satisfied.
Note 41 Information required as per schedule III (amended by MCA notification dated March 23, 2021) and as per Ind-AS has been
disclosed in the financial statements to the extent applicable.
Note 42 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company
towards Provident Fund and Gratuity. The Ministry of Labor and Employment has released draft rules for the Code on Social Security,
2020 on November 13, 2020. However, the date on which the code will come into effect has not been notified. The Company will
assess the impact and will record any related impact in the period once the code becomes effective.
Note 43 Other Statutory Information
I. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
II. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
III. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall: a) directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or, b) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.
IV. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall: a) directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or, b) provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
V. The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961.
VI. The company has not been declared as willful defaulter by any bank or financial institution (as defined under the Companies Act,
2013) or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
VII. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.
Note 44: Registration of charges or satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
Note 45: Previous year's figures have been regrouped/restated wherever necessary to conform to current year's classification.
As per our Report of even date For and On behalf of Board of Directors
M/s Sunil Shah Pradeep Chordia Pinal Shah Sanjog Jain
Chartered Accountants Chairman & Managing Director Independent Director Director
(DIN: 00389681) (DIN:08192959) (DIN:08339905)
Sunil Shah Sharvari Kadam Asha Korde
Proprietor Chief Financial Officer Company Secretary
M. No. 37483 M. No. A66284
Place: Pune
Date: 29th May, 2024
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