d) Provisions (other than for employee benefits)
A provision is recognised if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are
determined by discounting the expected future cash
flows (representing the best estimate of the
expenditure required to settle the present obligation at
the balance sheet date) at a pre-tax rate that reflects
current market assessments of the time value of
money and the risks specific to the liability. The
unwinding of the discount is recognised as finance
cost. Expected future operating losses are not
provided for. Provisions are reviewed by the
management at each reporting date and adjusted to
reflect the current best estimates.
e) Contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation, or a present
obligation whose amount cannot be estimated reliably.
The Company does not recognize a contingent liability
but discloses its existence in the financial statements.
f) Income taxes
Income tax comprises current and deferred tax. It is
recognised in profit or loss except to the extent that it
relates to an item recognised directly in equity or in
other comprehensive income.
I. Current tax
Current tax comprises the expected tax payable
or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or
receivable in respect of previous years. The
amount of current tax reflects the best estimate of
the tax amount expected to be paid or received
after considering the uncertainty, if any, related to
income taxes. It is measured using tax rates (and
tax laws) enacted or substantively enacted by the
reporting date.
Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously.
ii. Deferred tax
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of
assets and liabilities for financial reporting
purposes and the corresponding amounts used
for taxation purposes. Deferred tax is also
recognised in respect of carried forward tax
losses and tax credits. Deferred tax is not
recognised for:
• temporary differences arising on the initial
recognition of assets or liabilities in a
transaction that is not a business
combination and that affects neither
accounting nor taxable profit or loss at the
time of the transaction;
Deferred tax assets are recognised to the
extent that it is probable that future taxable
profits will be available against which they
can be used. Deferred tax assets -
unrecognised or recognised, are reviewed at
each reporting date and are recognised/
reduced to the extent that it is probable/ no
longer probable respectively that the related
tax benefit will be realized.
Deferred tax is measured at the tax rates that
are expected to apply to the period when the
asset is realised or the liability is settled,
based on the laws that have been enacted or
substantively enacted by the reporting date.
The measurement of deferred tax reflects the
tax consequences that would follow from the
manner in which the Group expects, at the
reporting date, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if
there is a legally enforceable right to offset
current tax liabilities and assets, and they
relate to income taxes levied by the same tax
authority on the same taxable entity, or on
different tax entities, but they intend to settle
current tax liabilities and assets on a net
basis or their tax assets and liabilities will be
realised simultaneously.
g) Cash and cash equivalents
Cash and short-term deposits in the balance sheet
comprise cash at banks and cash in hand and short¬
term deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.
Cash and cash equivalents include bank overdrafts as
same form an integral part of Company’s cash
management for the purpose of preparing of cash flow
statements.
h) Earnings per equity share
Basic earnings per equity share is computed by
dividing the net profit attributable to the equity
shareholders 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
shareholders 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.
i) Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
31 March 2024, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.
17 Financial instruments - Fair values and risk management
(i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are divided into three
Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
The company has not disclosed fair value financial instruments carried at amortised cost such as cash equivalents, security
deposits and trade receivable because their carrying amount are reasonable approximates of fair value.
The company has not disclosed fair value financial instruments carried at amortised cost such as borrowings, trade
payables because their carrying amounts are reasonable approximation of fair value.
18 Financial risk management
i) Risk Management
The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s board of directors has overall
responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the
sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial
statements.
ii) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to this risk
for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The
company’s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.
- cash and cash equivalents,
- loans & receivables carried at amortised cost, and
- deposits with banks”
Credit risk management
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of
customers and other counterparties, identified either individually or by the company, and incorporates this information into its
credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The
Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors
specific to the class of financial assets.
iv) Market Risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will
affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk
sensitive financial instruments including foreign currency receivables and payables and long term debt.
The Company is not exposed to currency risk exposure as the Company does not have any foreign currency balances as on
reporting dates.
19 Capital management
The Company’s capital management objectives are
- to ensure the Company’s ability to continue as a going concern
- to provide an adequate return to shareholders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented
on the face of balance sheet.
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while
avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The
Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
22 Other Notes
(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 has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017. No layers of companies has been established beyond the
limit prescribed as per above said section / rules.
(iii) No bank or financial institution has declared the company as “Willful defaulter".
(iv) No transaction has been made with the company struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.
(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or
invest in party identifiedby or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any
fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) There is no such income which has not been disclosed in the books of accounts. None of undisclosed income is
surrendered or disclosed as income during the period under Income Tax Act, 1961.
23 Figures for previous periods have been regrouped and rearranged, wherever necessary, to conform with the relevant
current period’s classification.
For V Nagarajan & Co. For and on behalf of Board
Chartered Accountants International Data Management Limited
Firm Registration No. 004879N
Pradeep Kumar Sunil Kumar Shrivastava Sashi Sekhar Mishra
Partner Director Manager & Director
Membership No 514068 DIN:00259961 DIN:03072330
Place: New Delhi Pradeep Tahiliani Bina Bhatia
Date: 27 May 2024 Company Secretary & Compliance Officer Chief Financial Officer
UDIN : 24514068BKCAUI9648 Membership No.ACS18570 PAN:BDYPB0279A
Place: New Delhi
Date: 27 May 2024
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