3.14 Provisions, Contingent Liabilities and Contingent Assets
3.14.1 Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of 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 recognized as finance cost.
3.14.2 Contingent Liabilities
Contingent liability is a possible obligation arising from past events and 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 but is not recognized because it is not possible that an outflow of
resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the
obligations cannot be made. The Company discloses the existence of contingent liabilities in Other Notes to Standalone
Financial Statements.
3.15 Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing
performance of the operating segments and accordingly is identified as the chief operating decision maker.
The Company has identified one reportable segment "Electronic Goods" based on the information reviewed by the CODM.
3.16 Standards notified but not yet effective
There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company's standalone
financial statements
4 SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed to be reasonable
under the circumstances. Information about Significant judgments and Key sources of estimation made in applying
accounting policies that have the most significant effects on the amounts recognized in the standalone financial statements
is included in the following notes:
> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment
of the probability of the Company's future taxable income against which the deferred tax assets can be utilized. In
addition, significant judgment is required in assessing the impact of any legal or economic limits.
> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions
which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates,
medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the
assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a
material impact on the resulting calculations.
> Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made
in accordance with Indian Accounting Standards (Ind AS) 37, 'Provisions, Contingent Liabilities and Contingent Assets'.
The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the
probability of exposure to potential loss.
> Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost
annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying
amount, the impairment loss is accounted for.
Fair value measurement of financial Instruments: When the fair values 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 input to these models are taken from observable markets where
possible, but where this not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations.
Terms / rights attached to equity shares
i) The company has only one class of equity shares having a par value of Rs 1/- per share. Each holder of equity share is entitled to only one vote per
share.
ii) During the year ended 31 March 2025, the Company sub-divided each equity share of face value ^10 into ten equity shares of face value ^1 each.
iii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
iv) No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance
Sheet date.
v) The company has not issued any number of shares for consideration other than cash and has not bought back any number of shares during the
period of five years immediately preceding the reporting date.
42.3 Explanation to the Fair Value hierarchy
The Company discloses Financial instruments, such as, unquoted investments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderlytransaction between market participants atthe measurementdate.All assetsand liabilities for which fairvalueis measured ordisclosed in the Standalone FinancialStatements are categorised
within the fairvalue hierarchy based on the lowest level inputthat is significant to the fair value measurement as a whole. The valuation of unquoted shares and preference shares have been made based
on level 3 inputs as per the hierarchy mentioned in the Accounting Policies.
43 Financial Risk Management
Financial management of the Company has been receiving attention of the top management of the Company. The management considers finance as the lifeline of the business and therefore, financial
management is carried out meticulously on the basis of detailed managementinformation systems and reports at periodical intervals extending from daily reports to long-term plans. Importance is laid on
liquidity and working capital management with a view to reduce over-dependence on borrowings and reduction in interest cost. Various kinds of financial risks and their mitigation plans are as follows:
43.1 Credit Risk
Credit risk is the riskthat counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit riskfrom its operating
activities (primarily trade receivables). On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the impairment loss.
a Trade Receivables
Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and
reconciled. Based on historical trend, industry practice and the business environment in which the company operates, an impairment analysis is performed at each reporting date for trade receivables.
There is no impairment loss allowance on trade receivable as based on past trend it is expected to be realised with one year.
b Other Financial Assets
Credit Risk on loans, cash and cash equivalent, and deposits with the banks is generally low asthe said financial assets have been made with the banks/ related parties who have been assigned high credit
rating by international and domestic rating agencies.
49 Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-II of the Schedule-III of the Companies
As per our report of even date For and on behalf of the Board of Directors
For M/s. Bijan Ghosh & Associates
Chartered Accountants
(Firm Registration No.323214E)
Jugal Kishore Bhagat Rekha Bhagat
Managing Director Director
DIN: 02218545 DIN: 03564763
Bijan Ghosh
Proprietor
Membership No. 009491
Place: Kolkata
UDIN: 25009491BMHYHN8718 Dilip Kumar Duari Abhijeet Prasad
Dated: 22th May, 2025 Chief Financial Officer Company Secretary
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