x) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
in respect of which a reliable estimate can be made of the amount of obligation. Provisions (excluding gratuity and
compensated absences) are determined based on management's estimate required to settle the obligation at the
Balance Sheet date. In case the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost. These are reviewed at each Balance Sheet date and adjusted to
reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence
would be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company. A contingent liability also arises, in rare cases, where a liability cannot be recognised
because it cannot be measured reliably.
xi) Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.
Note 36 : Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Managing Director of the Company. The
Company operates only in one Business Segment i.e. "Agri Trading Business", hence does not have any reportable
Segments as per Ind AS 108 "Operating Segments".
Note 37 : Financial instruments - Fair values and risk management
The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a
current transaction between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value
a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current
liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments
b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are
taken to account for the expected losses of these receivables."
A. Accounting classification and fair values
The carrying value and fair value of financial instruments by categories as at 31st March 2024 were as follows:
B. Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.
Financial Risk Management
Risk management framework
A wide range of risks may affect the Company's business and operational / financial performance. The risks that
could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company's Board
of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by
management to minimise potential adverse effects of such risks on the company's operational and financial
performance.
Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price
risk.
Currency risk
The Company is not much exposed to currency risk.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company's trade and other receivables, cash and
cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of
customers, taking into account the financial condition, current economic trends and analysis of historical bad debts
and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments
covered below is restricted to their respective carrying amount.
Note 38 : Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue
as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The
aim to maintain an optimal capital structure and minimise cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return
capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent
with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by
total capital plus total debts.
Note 39 : Corporate Social Responsibility
The Provision for CSR are not applicable as per Section 135 of Companies act 2013.
Note 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013
1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are
pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and Rules made thereunder.
2. The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
3. Utilisation of borrowed funds and share premium
(i) 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.
(ii) 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.
4. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax
Act, 1961 (such as search or survey), that has not been recorded in the books of account.
5. The Company has not traded or invested in crypto currency or virtual currency during the year.
6. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of
Companies beyond the statutory.
7. During the year, the company has not announced any dividend during the year.
8. The Company has not been declared wilful defaulter by any banks.
Note 41 : Prior year comparatives
Previous year's figures have been regrouped or reclassified, to conform to the current year's presentation wherever
considered necessary.
For, S K Bhavsar & Co. For & on behalf of the Board of Directors of
Chartered Accountants Mihika Industries Limited
Firm Registration No. 145880W
Shivam Bhavsar Pranav Trivedi Sagar Kumar Dataniya
Proprietor (Managing Director) (Director)
Membership No. 180566 (DIN: 09218324) (DIN: 09629945)
UDIN: 24180566BKEZJK1073
Pawansut Swami
Company Secretary
Place: Ahmedabad Place: Ahmedabad
Date: May 24, 2024 Date: May 24, 2024
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