n) Provisions, Contingent Liabilities and Contingent Assets: As per IND AS, the Company recognizes provisions only when it has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation as and when a reliable estimate of the amount of obligation can be made.
No Provision is recognized for:
a) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company.
b) Any present obligation that arises from past events but is not recognized because-
(i) It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(ii) A reliable estimate of the amount of obligation cannot be made.
5uch obligations are recorded as Contingent Liabilities. These are assessed periodically and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimates can be made.
Contingent Assets are not recognized in the standalone financial statements since this may result in the recognition of income that may never be realized.
oi Estimated amount of contracts remaining to be executed on capital account and provided for - NIL (Previous year NIL). Company has issued work order for execution of work contract against that Rs.27, 81,249/- has been paid to three parties since long; however same has not been executed by them and matter is under dispute; hence suit is filed against them in court of law and disclosed in Balance Sheet as creditors having debit balance.
pi Finance cost: Finance cost comprise. Interest on Cash Credit & Letter of Credit, LC Commission charges, Bank Charges, Processing fees, commitment fees etc.
3) Significant Judgments Employed in Applying Accounting Policies:
The significant judgments made In applying accounting policies that have the most significant effect on the amounts recognised in the standalone financial statements are as follows:
a) Impairment:
Management conducts an assessment of property, plant, equipment, intangible assets, investment property and all financial assets in phase manner over period of five years to determine whether there are any indications that they may be impaired. In the absence of such information, no further action Is taken.
b) Key Sources of Estimation Uncertainty:
Key assumptions made concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are as follows:
Residua l values are assumed to the extent of 5% of cost of acquisition that are reasonably expected to exist at the end of the assets' estimated useful life except in case of computer, electrical instruments, furniture and office equipments which has gone beiow 5% in few cases of cost of acquisition due to excess charge of depreciation before implementation of Companies Act, 2013.
c) Inventory provisions:
Management regularly undertakes a review of the company's inventory (Note 3), stated at INR 318993203/- (previous year INR 57521933/-) in order to assess the likely realisation proceeds, taking into account purchase and replacement prices, age, likely obsolescence, the rate at which goods are being sold and the physical damage. Due to this valuation of inventory of packing material and chemicals has been reduced to that extent.
d) Doubtful debt provisions:
Management regularly undertakes a review of the amounts of loans and receivables owed to the company either from third parties or from staff (Notes 4, 7 & 8) and assess the likelihood of nonrecovery. Such assessment is based upon the age of the debts, historic recovery rates and assessed creditworthiness of the debtor.
4) CIF Value of Imports:
NIL (P.Y. NIL).
5) FOB Value of Export:
NIL (P.Y. Rs. NIL).
6) Expenditure in Foreign Currency:
INR NIL (P.Y. INR NIL).
7) Auditors Remuneration:
10) Prior Period Items:
Prior period items are income or expenses which arise in the current period as a result of errors or omissions In the preparation of the standalone financial statements of one or more prior periods. There are no prior period items in the current financial year.
11) Events occurring after Balance Sheet date:
There are no events occurred after balance sheet date that represent material changes and commitments affecting the financial position of the company.
14) Small And Medium Enterprises Dues:
Since previous year Company has initiated the process of identification of suppliers registered under The Micro Small and Medium Enterprises Development Act, 2006, by obtaining the confirmation from the suppliers, but till today the Company has not received any information from its suppliers regarding registration under 'The Micro, Small and Medium Enterprises Development Act, 2006', the disclosures / information required to be given in accordance with section 22 of the said Act, is not ascertainable.
15) Liquidity Risk:
The Company's principal sources of liquidity are cash and cash equivalents and cash flows that are generated from operations. The Company has no outstanding borrowings. The company believes that the working capital is sufficient to meet its current requirements.
Comparative Figures:
The previous year figures have beer regrouped and/or reclassified wherever necessary as it is considered that the revised grouping/classification, which has been adopted in the current accounting year, more fairly presents the state of affairs/results of operations.
For and on behalf of Board of Directors
M/s. Bharat H. Shah & Associates Sd/* Sd/-
Chartered Accountants Pradip P. Parakh Rakesh V. Singh
(Firm Registration No. 122100W) Managing Director Director
(DIN No.: 00053321) (DIN No. : 06987619)
Sd/- Sd/- Sd/-
CA Bharat H Shah Sunil M.Sharma Shivali V.Agrawal
Proprietor CFO Company Secretary and
(Membership No. 110878) Compliance Officer
UDIN:24110878BKBIUD1213
Pune, 25th May, 2024 Pune, 25Ih May, 2024 Pune, 25th May, 2024
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