10. Provisions, contingent liabilities and contingent assets
A provision is recognized when there is a present obligation as a result of past event and it is
probable that there will be an outflow of resources in respect of which a reliable estimate can be
made. Contingent liabilities are disclosed when there is a possible obligation arising from past
events, 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 or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made. Information on contingent
liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognized.
11. Earnings per share
Basic earnings per equity share is computed by dividing the net profit attributable to the equity
holders of the company by the weighted average number of equity shares outstanding during the
period. Diluted earnings per equity share is computed by dividing the net profit attributable to the
equity holders of the company by the weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares
that could have been issued upon conversion of all dilutive potential equity shares. The dilutive
potential equity shares are adjusted for the proceeds receivable had the equity shares been actually
issued at fair value.
12. Impairment of assets
(i) Financial assets:
The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss. Loss allowance for trade
receivables with no significant financing component is measured at an amount equal to lifetime
ECL. For all other financial assets. expected credit losses are measured at an amount equal to
the 12-month ECL, unless there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL. The amount of expected credit
losses (or reversal) that is required to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognized as an impairment gain or loss in
statement of profit or loss.
(ii) Non-financial assets:
The carrying amounts of assets are reviewed at each balance sheet date in accordance with
Ind AS 36 ‘Impairment of Assets', to determine whether there is any indication of impairment.
If any such indication exists, the asset's recoverable amount is estimated. An impairment loss
is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
Impairment losses are recognised in the Statement of Profit and Loss. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment
loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying
amount that would have been determined net of depreciation or amortisation, if no impairment
loss had been recognised.
13. Employee benefits
Short-term obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service
are recognized in respect of employees' services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as
current employee benefit obligations in the balance sheet.
Post-employment obligations
(a) Defined benefit plans:
Gratuity obligations & Leave encashment on termination of service
The liability in respect of Gratuity and Leave encashment are not ascertained actuarially and not
provided for, the effect of which on accounts is not material.
(b) Defined contribution plans :
Provident Fund :
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company
has no obligation, other than the contribution payable to the provident fund. The Company
recognizes contribution payable to the provident fund scheme as an expense, when an employee
renders the related service.
25 Dividend
Foreseeing the requirement of financial resources for the future growth, and in order to create strong
economic base and long term value for the investors; your directors have decided not to recommend
any dividend for the financial year ended on 31 March 2024
26 Segment Reporting
Since the company has only one segment, there is no separate reportable segment as required under
Ind As 108.
27 Disclosures required under Micro, Small and Medium Enterprises Development Act, 2006
The information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent such parties have been identified on the
basis of information available with the Company. The amount of principal and interest outstanding
during the year is given below: -
The Company's objective when managing capital are to safeguard their ability to continue as a
going concern, so that they can continue to provide returns for shareholders and benefits of other
stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company
manages the share capital issued and subscribed along with shareholder's fund appearing in the
financial statement as capital of the Company.
The fair value of financial assets and liabilities are included at the amount at which the instrument
could be exchanged in a current transaction between willing parties in an orderly market
transaction, other than in a forced or liquidation sale.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data
(unobservable inputs)
These risks include market risk (including currency risk, interest rate risk and other price risk),
credit risk and liquidity risk. The Company seeks to minimise the effects of these risks by using
derivative financial instruments, credit limit to exposures, etc., to hedge risk exposures. The
Company's risk management is carried out by senior management team. The risk management
includes identification, evaluation and identifying the best possible option to reduce such risk.
(i) 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 prices comprise three types of risk: foreign currency
risk, interest rate risk, investment risk.
(ii) 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. The Company is exposed to interest rate
risk because funds are borrowed at both fixed and floating interest rates. The Company has
exposure to interest rate risk, arising principally on changes in base lending rate.
The following table provides a break-up of the Company's fixed and floating rate borrowings: -
(iii) Liquidity risk management
Liquidity risk refers to the risk of financial distress or high financing costs arising due to shortage of
liquid funds in a situation where business conditions unexpectedly deteriorate and requiring
financing. The Company requires funds both for short term operational needs as well as for long
term capital expenditure growth projects. The Company relies on a mix of borrowings, capital
infusion and excess operating cash flows to meet its needs for funds. The current committed lines
of credit are sufficient to meet its short to medium term expansion needs. The Company manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.
(iv) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Company. Customer credit risk is managed centrally by the Company and
subject to established policy, procedures and control relating to customer credit risk management.
The company also assesses the creditworthiness of the customers internally to whom goods are
sold on credit terms in the normal course of business. The credit limit of each customer is defined
in accordance with this assessment. Outstanding customer receivables are regularly monitored
and any shipments to overseas customers are generally covered by letters of credit.
The impairment analysis is performed on client to client basis for the debtors that are past due at
the end of each reporting date. The company has not considered an allowance for doubtful debts
in case of trade receivables that are past due but there has not been a significant change in the
credit quality and the amounts are still considered recoverable.
30 Impairment of assets
In accordance with Ind AS-36 on “Impairment of Assets” the Company has assessed as on the balance
sheet date, whether there are any indications with regard to the impairment of any of the assets. Based
on such assessment it has been ascertained that no potential loss is present and therefore, formal
estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided
in the books of account,
32 Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to
current year's classification.
See accompanying notes to the financial statements 1 to 32
As per our Report of even date For & On Behalf of Board of Directors
In terms of our report attached.
For, N. K. ASWANI & CO. SUNIL AHUJA ANIL AHUJA
Chartered Accountants (Director- DIN- 00064612) (Chairman and Managing Director -
Firm Regn. No. 100738W DIN- 00064596)
CA Narain K. Aswani THAKUR JESWANI ANKITA AMERIYA
Proprietor (Chief Financial Officer) (Company Secretary &
M.NO-33278 Compliance Officer)
Place: Ahmedabad Place: Ahmedabad
Date : 30/05/2024 Date : 30/05/2024
UDIN : 24033278BKAABH2946
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