29(B): CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing
capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to
maximize shareholder value.
As at 31st March, 2024, the Company has only one class of equity shares and has low debt. Consequent to such
capital structure, there are no externally imposed capital requirements.
29(C): FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES
The Company's activities expose it to a variety of financial risks: Market risk, credit risk, liquidity risk. The Company
has a risk management policy which covers risks associated with the financial assets and liabilities. The risk
management policy is approved by the Board of Directors. The focus of the policy is to assess the upredictability of
the financial environment and to mitigate potential adverse effects on the financial performace of the company.
1. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price
risk.
a. Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Since the Company has insignificant interest bearing borrowings, the exposure to
risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.
b. Foreign Currency Risk
The Company operates internationally and portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk through its sales and services in overseas markets and
purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly
balanced by purchasing of goods, commodities and services in the respective currencies.
Particulars of unhedged foreign currency exposures as at the reporting date are given as part of Note 22.
The below table demonstrates the sensitivity to a 5% increase or decrease in the Foreign Currency against INR, with
all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company
as at the reporting date. 5% represents management's assessment of reasonably possible change in foreign exchange
2. 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 receivables from customers and
investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure
to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying
value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.
The Company assesses the credit quality of the counterparties, taking into account their financial position, past
experience and other factors.
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment. The Company's exposure are continuously monitored.
3. Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due.
The Company consistently generates sufficient cash flow from operations to meet its financial obligations as and
when they fall due.
The tables below provides detail regarding the contractual maturities of significant financial liabilities as at 31st
March 2023 and 31st March 2022"
Note: 31 Other Statutory Disclosures
1. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
2. The Company has not advanced any loans or advances in the nature of loans to specified persons viz.
promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does
not specify any terms or period of repayment.
3. The Company has utilised funds raised from issue of securities or borrowings from banks and financial
institutions for the specific purposes for which they were issued/taken.
4. The Company has not any obtained borrowings from banks or financial institutions on the basis of security of
current assets.
5. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a
company as a wilful defaulter at any time during the financial year or after the end of reporting period but
before the date when financial statements are approved.
6. 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.
7. 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
8. The Company does not have any transactions with struck-off companies.
9. The Company does not have any transaction which is not recorded in the books of accounts but 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).
10. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
11. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
12. "The company has not revalued its Property, Plant and Equipment (PPE), Intangible Assets (IA) and
Investment Properties (IP) during the financial year."
13. The company has complied with the provisions of the Section 135 of The Companies Act, 2013 and
accordingly the company is not liable for spending any amount as Corporate Social Responsibility during the
financial year.
Note 32: Previous year's figures have been regrouped /reclassified wherever necessary.
As per our report of even date attached FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
For VCA & ASSOCIATES
CHARTERED ACCOUNTANTS SHAMIM SHEIKH RAFIQUNNISA MERCHANT
Firm Reg. No. 114414W DIRECTOR & CHAIRMAN DIRECTOR & CFO
DIN: 02528327 DIN: 07758223
CA ASHOK THAKKAR, Mem. No. 048169 YUNUS R. MEMON ISHITA KAPURE
PARTNER, MANAGING DIRECTOR COMPANY SECRETARY
DIN: 01094396
VADODARA, 30th MAY, 2024 VADODARA, 30th MAY, 2024
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