2.2 PROVISIONS AND CONTINGENT LIABILITIES
A provision is recognised when the Group has a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not
recognised in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.
2.3 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments. The policy has been further explained under note 2(l).
2.4 REVENUE RECOGNITION
Effective April 1, 2018, the Company has applied Ind AS 115 which establishes a comprehensive framework for determining
whether ,how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 .Revenue and Ind AS-11
Construction Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially
applying this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively
only to contracts that are not completed as at the date of initial application and the comparative information in the statement
of profit and loss is not restated -ie the comparative information continues to be reported under Ind AS 18
and Ind AS 11. Refer note 2(d) - Significant accounting policies-Revenue recognition in the Annual Report of the Company
for the year ended March 31, 2018, for the revenue recognition policy as per Ind AS 18 and Ind AS 11. The impact of the
adoption of the standard on the financial statements of the Company is insignificant.
Revenue is measured at fair value of consideration received or receivable. All income and expenditure items are recognised
on accrual basis.Revenue is recognised only when evidence of an arrangement is obtained and the other criteria to support
revenue recognition are met, including the price is fixed or determinable, services have been rendered and collectability of
the resulting receivables is reasonably assured. Revenue is reported net of discounts and indirect taxes
2.5 COST RECOGNISITION
Costs and expenses are recognised when incurred and have been classified according to their nature.The costs of the
Group are broadly categorised into employee benefit expenses, cost of traded goods, depreciation and amortisation and
other operating expenses. Employee benefit expenses include employee compensation, allowances paid, contribution to
various funds and staff welfare expenses. Other operating expenses mainly include fees to external consultants, facility
expenses, travel expenses, communication expenses, bad debts and advances written off, allowance for doubtful trade
receivables and advances (net) and other expenses. Other expenses is an aggregation of costs which are individually
not material such as commission and brokerage, recruitment and training, legal and professional fees, etc. Payments to
employees under voluntary retirement schemes are deferred and written off equally over a period of 5 years starting from
the year in which payment is made.
2.6 FOREIGN CURRENCY TRANSLATION
Foreign currency revenue transactions are booked at the exchange rate prevailing at the date of the transaction. Exchange
loss/gain on realisation/payment is booked to exchange fluctuation. Foreign currency assets and liabilities outstanding as
at the year end, if any, are translated at the year end exchange rates.
2.7 TAXATION
Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the
Statement of Profit and Loss except to the extent that it relates to items recognized directly inequity, in which case it is
recognized in other comprehensive income.
Provision for taxes is made based on the current applicable tax rates. Adjustment for deferred tax is made based on the tax
effect of timing differences resulting from the recognition of items in the financial statements and their allowance under the
tax laws, subject to the consideration of prudence. The effect on deferred tax of a change in income tax rates is recognised
in the period that includes the enactment date.
2.8 CASH AND CASH EQUIVALENTS
Cash and cash equivalents consists of balances with bank which are unrestricted for withdrawal and usage.
2.9 PROPERTY, PLANTAND EQUIPMENT AND DEPRECIATION
i) Property, Plant and Equipment are stated at acquisition cost less accumulated depreciation.
ii) Depreciation on Tangible assets are provided by written down value method over the estimated useful life prescribed
under part “C” Schedule II of Companies Act, 2013, keeping a residual value of 5 %.
iii) Technical Know-how is depreciated equally over a period of 20 years starting from the month in which Technical
Know-how has been put to use.
iv) Trade Marks/Brand are depreciated equally over 10 years starting from the month in which the Trade Marks / Brand
have been acquired.
v) Impairment in the carrying value of the fixed assets is recognised in accordance with Accounting Standard No. 28 - '
Impairment of Assets'.
2.10 INTANGIBLE ASSETS
Intangible assets purchased are measured at cost as of the date of acquisition, as applicable, less accumulated amortisation
and accumulated impairment. If any.
Intangiable assets consist of technical know how
2.11 IMPAIRMENTS
i) FINANCIAL ASSETS (OTHER THAN AT FAIR VALUE)
The Group assesses at each date of balance sheet whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. In determining the
allowances for doubtful trade receivables, the Group has used a practical expedient by computing the expected credit
loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical
credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based
on the ageing of the receivables that are due and rates used in the provision matrix. For all other financial assets,
expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount
equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since
initial recognition.
ii) NON-FINANCIAL ASSETS
a) TANGIBLE AND INTANGIBLE ASSETS
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever
there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less cost to sell and the value- in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which
the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the
statement of profit and loss.
b) GOODWILL
CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there
is indication for impairment. If the recoverable amount of a CGU is less than its carrying amount, the impairment
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit on a pro-rata basis of the carrying amount of each asset in the unit.
2.12 Financial instruments:
i) Initial recognition and measurement:
Financial assets and/or financial liabilities are recognised when the Company becomes party to a contract embodying
the related financial instruments. All financial assets, financial liabilities are initially measured at fair value. Transaction
costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are added to or deducted from as the case may be,
the fair value of such assets or liabilities, on initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
ii) Financial Assets:
Classification and subsequent measurement of financial assets:
a) Classification of financial assets:
• The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or
loss), and
- those measured at amortised cost.
• The classification is done depending upon the Company's business model for managing the financial assets and the
contractual terms of the cash flows.
• For investments in debt instruments, this will depend on the business model in which the investment is held.
• The Company reclassifies debt investments when and only when its business model for managing those assets
changes.
b) Subsequent Measurement:
• Debt instruments:
Subsequent measurement of debt instruments depends on the Company's business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the Company
classifies its debt instruments:
- Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
- Financial assets at fair value through other comprehensive income (FVTOCI)
Financial assets are subsequently measured at fair value through other comprehensive income if these financial
assets are held within a business whose objective is achieved by both collecting contractual cash flows that give rise
on specified dates to solely payments of principal and interest on the principal amount outstanding and by selling
financial assets.
- Financial assets at fair value through profit or loss (FVTPL)
Financial assets are subsequently measured at fair value through profit or loss unless it is measured at amortised cost
or fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit
or loss.
• Equity instruments:
The Company subsequently measures all equity investments at fair value. There are two measurement categories
into which the Company classifies its equity instruments:
Investments in equity instruments at FVTPL:
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair value in other comprehensive income for equity instruments which
are not held for trading.
Investments in equity instruments at FVTOCI:
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to
present the subsequent changes in fair value in other comprehensive income. This election is not permitted if the
equity investment is held for trading. These elected investments are initially measured at fair value plus transaction
costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value
recognised in other comprehensive income and accumulated in the reserve for 'equity instruments through other
comprehensive income'. The cumulative gain or loss is not reclassified to Statement of Profit and Loss on disposal of
the investments.
c) Impairment of Financial Assets:
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured
at amortised cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial
asset. For trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected
credit losses. Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables,
the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance
is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for
forward-looking information.
d) Derecognition of Financial Assets:
A financial asset is primarily derecognised when:
• the right to receive cash flows from the asset has expired, or
• the Company has transferred its rights to receive cash flows from the asset; and
- the Company has transferred substantially all the risks and rewards of the asset, or
- the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
On derecognition of a financial asset in its entirety (other than investments in equity instruments at FVOCI), the
differences between the carrying amounts measured at the date of derecognition and the consideration received is
recognised in the Statement of Profit and Loss.
iii) Financial Liabilities and Equity Instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Repurchase of the Company's own equity instrument is recognised and deducted directly in equity. No gain or loss
is recognised in the Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company's own
equity instruments.
The Company's financial liabilities include trade and other payables, loans and borrowings and derivative financial
instruments. Subsequent measurement of financial liabilities depends on their classification as fair value through
profit and loss or at amortized cost. All changes in fair value of financial liabilities classified as FVTPL are recognized
in the Statement of Profit and Loss. Amortised cost category is applicable to loans and borrowings, trade and other
payables. After initial recognition the financial liabilities are measured at amortised cost using the Effective Interest
Rate method.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Gains
and losses are recognized in profit and loss when the liabilities are derecognized.
Financial assets and financial liabilities are offset and presented on net basis in the Balance Sheet when there is a
currently enforceable legal right to offset the recognised amounts and there is an intention either to settle on a net
basis or to realise the assets and settle the liabilities simultaneously.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in the
Statement of Profit and Loss immediately.
2.13 EMPLOYEE/RETIREMENT BENEFITS
The Company has made arrangements with the Life Insurance Corporation of India through Gratuity Fund and
Superannuation Fund for meeting its employee retirement liability. The liability for gratuity is calculated on basis of actuarial
valuation as reduced by funded amount. Leave encashment benefit is provided for based on actuarial valuation basis.
2.14 INVENTORIES
i) Raw material are valued at cost on FIFO basis or net realisable value whichever is lower
ii) Process stock is valued at material cost or net realisable value whichever is lower.
iii) Finished goods are valued at cost or net realisable value whichever is lower. Cost in respect of own manufactured
goods includes material cost, direct labour and attributable production overheads.
iv) Packing Material are valued at cost
2.15 INVESTMENTS
Long-term investments are valued at cost except that any permanent diminution in the value thereof is recognised in the
profit and loss account.
2.16 TRADE RECEIVABLES
Trade Receivables are non interest bearing and are generally for a period of 45 to 60 days. Credit period which may go up
due to market conditions.
2.17 EARNING PER SHARE
Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive
securities in any of the years presented.
2.18 LEASES :
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards)
Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS
116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets
out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors.
It introduces a single, on-balance sheet lease accounting model for lessees. The Company has adopted Ind AS 116,
effective annual reporting period beginning April 1, 2019 and applied the standard to its leases, retrospectively, with the
cumulative effect of initially applying the standard, recognised on the date of initial application (April 1, 2019). Accordingly,
the Company has not restated comparative formation, instead, the cumulative effect of initially applying this standard has
been recognised as an adjustment to the opening balance of retained earnings as on April 1, 2019.
For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease
by-lease basis. The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to
leases previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is
or contains a lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind
AS 37 immediately before the date of initial application as an alternative to performing an impairment review, excluded initial
direct costs from measuring the right-of-use asset at the date of initial application and used hindsight when determining the
lease term if the contract contains options to extend or terminate the lease. The Company has used a single discount rate
to a portfolio of leases with similar characteristics.
Carrying amount of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial
liabilities approximate the fair value value because of their short term nature. Difference between carrying amounts and fair
values of other financial assets and liabilities subsequently measured at amortised cost is not significant in each of the years
presented.
Fair Value hierarchy
This section explains the judgements and estimates made in determining the fair value of the financial instruments that are
(a) recognized and measured fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company
has classified its financial instruments into the three levels prescribed the accounting standards below:
Level - 1
Hierarchy includes financial instruments measured using quoted price. This includes listed Equity shares that have quoted
price. The listed equity shares are valued at closing market price on the date of reporting.
Level - 2
The fair value of financial instruments that are not traded in an active market (for example trade bond, over-the-counter
derivatives) is determined using valuation technique which maximise 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-2.
Level - 3
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Liquidity risk
The Company needs continous access to funds to meet short and long term strategic investment requirements.The
Company's inability to meet such requirements in stipulated period may hamper growth plan and even ongoing operations.
Further the Company's inability to quikly convert assets into cash without incurring any material loss will expose it to liquidity
risks
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.
Credit risk
The Company is exposed to credit risk from its operating activities and other financial assets. Since most of our transactions
are done on credit, we are exposed to credit risk on accounts receivable. Any delay, default or inability on the part of the client
to pay on time will expose us to credit risk and can impact our profitability.
Geographic and Client Concentration Risk
75% and 60% of the revenue of 2024 and 2023, respectively is generated from top 10 clients, for standalone. Any loss or
major downsizing by these clients may impact Company's profitability. Further, excessive exposure to particular clients will
limit company's negotiating capacity and expose to higher credit risk.
30 The Company has not received any intimation from suppliers/creditors regarding their status under The Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosure if any relating to amounts unpaid as at the year end
together with the interest paid/payable as required under the said Act has been not made.
31 Deferred Tax Asset on carried forward losses and unabsorbed depreciation and other timing differences as at 31st March,
2024 has not been recognized as there is no virtual/reasonable certainty that the same can be realised in the future.
A) The Company has not made any provision for taxation during the year in view of brought forward losses available for
set off against current year's income.
Provisions of Section 115JB of the Income Tax Act, 1961(MAT) is also not applicable to Company in view of it opting
for tax on income under new provisions of section 115BAA of the Income Tax Act, 1961 inserted by the Taxation Laws
(Amendment) Orfiance, 2019.
32 Names of related parties and description of relationship
a Where control exists:
Holding Company :
Development Holding Asia Ltd.
Subsidiaries :
Muller and Phipps (Industrial Services) Ltd.
Muller and Phipps Agencies Ltd.
36 Exceptional Items includes compensation received for surrender of tenancy rights at Kolkata as per agreement dated
21st March,2024 between the owner and tenant.
37 The Financial Statements have been prepared on going concern basis although the net worth of the Company has been
completely eroded, in view of the future business plans which will allow the Company to carry out its business profitably.
38 Since the entire operations of the Company are in India, there are no geographical segments and there is no single product
wher sales are in excess of 10% of the total revenue hence Segement Reporting is not applicable.
39 Figures of the previous year ended as on 31.03.2023 considered as it is audited by M/S K F Jetsey & Co and adopted by
Management.
40 Balance of trade receivable, trade payable, borrowing, loans & advance are subject to confirmtion from concern parties
41 Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current year's
classification.
42 Other Statutory Information
i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
ii) The Company do not have any transactions with companies struck off.
iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period,
iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
v) The Company have 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
vi) The Company have 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 company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
vii) The Company have not any 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
As per our Report attached
For Shankarlal Jain & Associates LLP For and onbehalf of the Board of Directors of
Chartered Accountants Muller and Phipps (India) Limited
Firm's Registration No.109901W /W100082
Satish Jain MILAN DALAL P V MOHAN
Partner Director Whole-time Director
Membership No. 048874 DIN No.: 00062453 DIN No.: 00195051
RAMESH PAI SALONI SHAH
Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Dated: 27th May, 2024 Dated: 27th May, 2024
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