Notes to Accounts
34 A. Financial risk management
The Company's activities are exposed to a variety of market risk (including foreign currency risk and interest risk), credit risk and liquidity risk. The Company's overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance.
i. Market Risk
Market rate is the risk that arises from changes in market prices, such as commodity prices, foreign exchange rates, interest rates etc. and will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising returns.
a. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Currently company not take any loan facility and use own fund for its business so interest risk is very low.
b. Foreign Currency Exchange Rate Risk Company not do any transaction in foreign currency so company has no risk.
ii. Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.
The Company performs ongoing credit evaluation of its counterparties' financial conditions. The Company's major classes of financial assets are cash and bank balances, trade receivables, Security deposits, Advances to Suppliers and Employees, Unbilled Revenues and prepayments.
As at the reporting date, the Company's maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position.
As at the reporting date, substantially all the cash and bank balances as detailed in Note 8 to the financial information are held in major Banks which are regulated and located in the India, which management believes are of high credit quality.
iii. Liquidity Risk
Liquidity risk arises from the Company's management of working capital. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.
The Company has obtained fund based and non-fund based working capital credit facility from various banks. Company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The principal liabilities of the Company arise in respect of the trade and other payables. Trade and other payables are all payable within 12 months.
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowing facilities by continuously monitoring forecasts and actual cash flows.
The Company has a system of regularly forecasting cash inflows and outflows and all liquidity requirements are planned.
Forecast for trade and other payables is regularly monitored to ensure timely funding.
All payments are made within due dates.
The Board receives cash flow projections on a regular basis as well as information on cash balances.
35 Capital Risk Management
The Company manages its capital to ensure that the Company will be able to maintain an optimal capital structure so as to support its businesses and maximise shareholder value. To achieve this objective, the Company may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares. Currently, Company have no debt in company and use own capital and reserve and surplus.
|
36
|
Financial Instruments measurements and disclosures (Rs. In Lakh)
|
|
a.
|
Financial Instruments by Category As on March 31, 2018
|
FVTPL
|
FVOCI
|
Amortised cost
|
Total carrying value
|
|
Financial Assets:
|
|
|
|
|
|
Measured at Fair Value
|
|
|
|
|
|
Investments
|
|
|
|
|
|
Equity Share
|
-
|
501.00
|
-
|
501.00
|
|
Not Measured at Fair Value
|
|
|
|
|
|
Trade Receivables
|
-
|
-
|
858.85
|
858.85
|
|
Cash and cash equivalents
|
-
|
-
|
2.75
|
2.75
|
|
Advance Paid
|
-
|
-
|
6.15
|
6.15
|
|
Security Deposit
|
-
|
-
|
0.85
|
0.85
|
|
Other Current Assets
|
-
|
-
|
2.80
|
2.80
|
|
Total
|
-
|
501.00
|
871.41
|
1,372.41
|
| |
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
Not measured at fair value
|
|
|
|
|
|
Trade Payable
|
-
|
-
|
96.78
|
96.78
|
|
Other Current Liabilities
|
-
|
-
|
5.65
|
5.65
|
|
Total
|
-
|
-
|
102.43
|
102.43
|
| |
Financial Instruments by Category As on March 31, 2017
|
FVTPL
|
FVOCI
|
Amortised cost
|
Total carrying value
|
|
Financial Assets:
|
|
|
|
|
|
Measured at Fair Value
|
|
|
|
|
|
Investments
|
|
|
|
|
|
Equity Share
|
-
|
309.88
|
-
|
309.88
|
|
Not Measured at Fair Value
|
|
|
|
|
|
Trade Receivables
|
-
|
-
|
1,077.52
|
1,077.52
|
|
Cash and cash equivalents
|
-
|
-
|
49.19
|
49.19
|
|
Advance Paid
|
-
|
-
|
6.15
|
6.15
|
|
Security Deposit
|
-
|
-
|
0.85
|
0.85
|
|
Other Current Assets
|
-
|
-
|
0.70
|
0.70
|
|
Total
|
-
|
309.88
|
1,134.42
|
1,444.30
|
| |
Financial liabilities:
|
|
|
|
|
|
Not measured at fair value
|
|
|
|
|
|
Trade Payable
|
-
|
-
|
139.52
|
139.52
|
|
Other Current Liabilities
|
-
|
-
|
5.51
|
5.51
|
|
Total
|
-
|
-
|
145.03
|
145.03
|
| |
Financial Instruments by Category As on April 01, 2016
|
FVTPL
|
FVOCI
|
Amortised cost
|
Total carrying value
|
| |
Financial Assets:
|
|
|
|
|
| |
Measured at Fair Value
|
|
|
|
|
| |
Investments
|
|
|
|
|
| |
Equity Share
|
-
|
262.67
|
-
|
262.67
|
| |
Not Measured at Fair Value
|
|
|
|
|
| |
Trade Receivables
|
-
|
-
|
903.77
|
903.77
|
| |
Cash and cash equivalents
|
-
|
-
|
103.33
|
103.33
|
| |
Advance Paid
|
-
|
-
|
6.15
|
6.15
|
| |
Security Deposit
|
-
|
-
|
0.85
|
0.85
|
| |
Other Current Assets
|
-
|
-
|
0.58
|
0.58
|
| |
Total
|
-
|
262.67
|
1,014.68
|
1,277.34
|
| |
Financial liabilities:
|
|
|
|
|
| |
Not measured at fair value
|
|
|
|
|
| |
Trade Payable
|
-
|
-
|
128.13
|
128.13
|
| |
Other Current Liabilities
|
-
|
-
|
5.55
|
5.55
|
| |
Total
|
-
|
-
|
133.68
|
133.68
|
|
b.
|
Fair value hierarchy
|
| |
The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis, it also includes the financial instruments which are measured at amortised cost for which fair values are disclosed.
|
| |
(Rs. In Lakh)
|
| |
As on March 31, 2018
|
Level 1
|
Level 2
|
Level 3
|
Total
|
| |
Financial Assets:
|
|
|
|
|
| |
Measured at Fair Value
|
|
|
|
|
| |
Investments
|
|
|
|
|
| |
Equity Share
|
367.00
|
-
|
134.00
|
501.00
|
| |
Not measured at fair value (Refer Footnotes)
|
|
|
|
|
| |
Total
|
367.00
|
-
|
134.00
|
501.00
|
| |
|
|
|
|
|
| |
Financial liabilities:
|
|
|
|
|
| |
Not Measured at Fair Value (Refer Footnotes)
|
|
|
|
|
| |
As on March 31, 2017
|
Level 1
|
Level 2
|
Level 3
|
Total
|
| |
Financial Assets:
|
|
|
|
|
| |
Measured at Fair Value
|
|
|
|
|
| |
Investments
|
|
|
|
|
| |
Equity Share
|
18.38
|
-
|
291.50
|
309.88
|
| |
Not measured at fair value (Refer Footnotes)
|
|
|
|
|
| |
Total
|
18.38
|
-
|
291.50
|
309.88
|
| |
|
|
|
|
|
| |
Financial liabilities:
|
|
|
|
|
| |
Not Measured at Fair Value (Refer Footnotes)
|
|
|
|
|
| |
As on April 01, 2016
|
Level 1
|
Level 2
|
Level 3
|
Total
|
| |
Financial Assets:
|
|
|
|
|
| |
Measured at Fair Value
|
|
|
|
|
| |
Investments
|
|
|
|
|
| |
Equity Share
|
25.17
|
-
|
237.50
|
262.67
|
| |
Not measured at fair value (Refer Footnotes)
|
|
|
|
|
| |
Total
|
25.17
|
-
|
237.50
|
262.67
|
| |
|
|
|
|
|
| |
Financial liabilities:
|
|
|
|
|
| |
Not Measured at Fair Value (Refer Footnotes)
|
|
|
|
|
| |
| |
Footnotes:
The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables, advances, security deposits, other current assets and liabilities etc. because their carrying amounts are a reasonable approximation of fair value.
|
|
c.
|
Fair value hierarchy:
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:
|
| |
1. Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This included listed equity instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
|
| |
2. Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market (for example, traded bonds/ debentures, over the counter derivatives). The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level.
|
| |
3. Level 3: If one or more of the significant Inputs is not based on observable market data, the instrument is included in level 3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.
|
| |
|
d.
|
Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include: a) the use of quoted market prices for the equity instruments, b) b) the fair value of the unlisted shares are determined based on the income approach or the comparable market approach. For these unquoted investments categorised under Level 3, their respective cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range. c) c) the fair value of the remaining financial instruments is determined using the discounted cash flow analysis.
|
|
37
|
i. Non-current assets All non-current assets of the company are located in India.
|
| |
ii Going Concern-The annual financial statement has been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realization of assets and settlement of liabilities, contingent obligations will occur in ordinary course of business.
|
| |
iii Events after the reporting period-There are no events after the balance sheet date that require disclosures.
|
| |
iv. Approval of financial statements These financial statements were approved by the board of directors and authorised for issue on 30th May, 2018.
|
|
In terms of our report attached
|
For and on behalf of the Board of Directors
|
|
|
For A Biyani & Co
|
|
|
|
Ashutosh Biyani
|
Shwet Koradiya
|
Surbhi M udgal
|
Rahul Jalavadiya
|
|
Proprietor
|
Chairman & Director
|
Director
|
CEO
|
|
Membership No- 165017
|
DIN: 03489858
|
DIN: 07289164
|
PAN: ARBPJ0742Q
|
|
Firm Regd. No. 140489W
|
|
|
|
|
Place: Surat
|
Place: Surat
|
|
|
|
Date : 30-05-2018
|
Date : 30-05-2018
|
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