2.17 Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) as a resuft of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The a mount recognised as a provision is the best estimate of tne consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount Is the present value of those cash flows (when the effect of the time value of money is materia I).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certa in that reimbu rsement will be received and the amount of the receivable ca n be measured reliably.
Contingent liabilities are disclosed i n notes when the re is a passib Ic o bligation that a rises from past events a nd whose existence wi II be confirmed only by the occurrence or non-occurrence ot one or more uncertain future events not wholly within the control of the entity.
2.18 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
2.19 Financial instruments
2.19.1 Financial assets and financial liabilities
Financial assets and financial I labilities are recognised when a company entity becomes a party to the contractual provisions of the instruments.
2.19.2 Initial recognition and measurement:
Financial assets and financial liabilities are initially measured at fair value, Transaction costs that are directly attributable to the acquisition or issue of financial assets a rtd fl nancial I iabil itles (other than frnanclal assets and flna ncia I liabilities at fai r va lue throug h profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss a re recognised immediately in statement of profit and loss.
2.19.3 Subsequent measurement:
- Financial assets at amortised cost
Financial assets a re subsequently measured at a morti sed cost if these f i na nd a I a ssets are held withi n a business whose obj ective is to hold these assets in order to collect contractua I cash flows and contractual terms of fina ncia l asset g ive ri se on specified dates to cash flows that are solely payments of principal and interest on the principal amount ou tstandi ng.
- Fi ra ncial assets at Fa ir wa lue through other com preh er sive 1 ncome
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within busi ness whose objective is a ch ieved by both coll ecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and selling financial assets.
- Financial assets at fair valueth rough profit or loss
Rnancial assets a ne measu red at fa ir val ue through profit or loss unless it measu red at amortised cost or fa ir val Lie through other comprehensive i ncome on ini tia! recognition. The transaction cost di rectly attri butable to the acqui siton of fi nano al assets a nd liabilities at fair va lue th rough profit or loss a re i mmed iately recognised in the statement of profit and loss
- Financial liabilities
Financial liabilities are measured at amortised cost using effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
- Equity instruments
An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Equity instruments recognised by the company are recognised at the proceeds received net off direct issue cost.
2.20 Earning PerShare
Basic earn ing per share a re com puled by dividing profit and loss attri butable to eq uity sha reholders of the company by the We ighted average n um ber of equ ity shares o utstandi ng d uri ng the year. The Company did not have any potentia lly di lubve securities in the year.
2.21 Recent Account!ng Pranouneements
Recent pronouncements Ministry of Corporate Affairs ("'MCA1') notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 21, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015, applicable from April l, 2023, as below:
Tnd AS 5 - The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and input to develop accounting estimates. These amendments had no impact on the financial statements of the Company.
Tnd AS 1 - Disclosure of Accounting Policies
The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirements for entities to disclose their 'significant1 accounting policies with a requirement to disclose their 'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company's disclosures of accounting policies, but noton the measurement, recognition or presentation of any items in the Company's financial statements.
The Information has been g iven in respect of such venclo rs to the extent they could be identified as" Micro and Smal I" enterprises on the basis of information a vai labie with the Company.
Mote No 34 Employee Benefits Plan
(a) Defined contri button plans
Contributions to Employee's Regional provident Fund, Superannuation Fund, Employees Pension Scheme and Employee's state insurance are recognised as defined contribution plan. The company recognised ¥ 38.43 Lakhs for Employee's Regional president Fund (previous year ¥ 34.90 Lakhs), ¥ NIL for Superannuation Fund (previous year ¥ NIL), ¥ NIL for Employees Pension Scheme ( previous year ¥ NIL), ¥ 0.27 Lakhs for Employee's Welfare Fund { previous year ¥ 0.23 Lakhs ) and ¥ 0.5B La khs tor Em play ee's state msu ranee ( previous year ¥ 0,66 Lakhs)
(b) Defined benefitplan
The Com pa ny offers gratu ity and leave encashment benefits, a defined em ployee benefit scheme of its employees.
The said benefit plan is exposed to actuarial risks as below:
Longevity Risk The present value of ttve defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase th e pla n's liabi lity.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan pa rticipants. As such, an increase i n the salary of the pla n partici pants wil I increase the plan's liabi li ty.
Investm er t risk: The present value of the defi ned benefit plan Ha bi lity is ealeu lated using a discount rate determ ined by reference to g overn mentyhigh q ual ity bond yield s; if the reto rn an pla n asset is below this rate, it wil I create a plan deficit.
Interest risk: A decrease in the bond interest rate will increase the plan liability: however, this will be partially offset by an increase in the return on the plan^ debt investments.
Fair value hierarchy
The fai r value h ierarchy is based on i nputs to valuation techniq ues that are u sed to measure fai r va lue that are either observab le or u nobsecvable and consist of the follow incj three levels:
Level 1 - Quoted prices (unadjusted) i a active ma rkets for identical assets or I iabil ities
Level 2 - Inputs other than quoted prices I rtcl uded within Level l that are observe ble for the asset or IabilIty, either dIrectty (I ,e. as prices) or indirectly (i,e- derived from prices).
Level 3 Ý Inputs for the assets or liabilities that are not based on observa ble market data [unobserva ble inputs).
Fa ir vat ue of the Group's fina nc i a I assets and financial liabilities that a re mea su red at Fai r value ona rccu r ri n g ba sis
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in pa rticu lar, the valuation techniques) and i nputs used).
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potentiel adverse effects on its financial performance. The Board of Directors reviews and agrees policies for maneg ing each of these risks, which are summarised below:
Market risk management
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial intruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other ma rket chaages. The Compaay's exposure to market risk is primarily on accou nt of liquidlty risk.
Liquidity Risk
The liquidity risk encompasses any risk that the Company cannot fully meet its financial obligations. To manage the liquidity risk, cash Hdw forecasting is performed in the operating divisions of the Company and aggregated by Company finance. The Company^ finance monitors roiling forecasts of the Company's liquidity requirements tu ensure It has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities / overdraft facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
Credit risk refers tD the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Oed It Risk to (he company primarily arises from trade receivables, Credit risk a Iso arises from cash and cash eg uivalents, financial instruments and deposits with banks and financial institutions and other financial assets
The Company has adopted a policy bf only dealing with creditworthy counterparties and obtaining sufficient collateral, where a ppropriate, as a means of mitigating the risk of Anandal loss from defaults- The Company on ly transacts with entities that are rated equivalent of investment grade and above. The Company has an internal mechanism of determining the credit rating of the customers and setting credit limits. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually, Ongoing credit evaluation is performed on the financial condition of accounts receivable.
Interest rate risk
interest rate risk arises from borrowings. Debt issued at variable rates exposes the Company to cash flow risk. Debt issues at Axed rates exposes the Company to fair value risk.
Interest rate risk is the risk that the fair value of future cash lows of the financial instruments will luctuate because of changes in market interest rates. The Company's main interest rate risk anses from long-term borrowings with variable rates, which exposes the Company to cash low Interest rate risk.
NOTE M 0 A4 RE LATION SHIP WITH STRUCK OFF COM PAN IES
The company do not have any transactions with company's struck oft u nder Section 24B of the Com pani es Act, 2013 or Section 5 60 of the Compan ies Act, 1356 during the year ended 31 st Ma rch 2024 (Prev ious year; Mi I)
NOTE NO. 45 DETAILS OF BEN AMI PROPERTY HELD
The company do not have any property under BenamiTra reactions (Prohibition) Act, 1989 (45 of 1988} and rules made thereunder, hence there a re no pnoceedi ngs agai nst the company for the year ended 31st Ma rch, 2624 a nd a Iso for the yea r ended 31 st March, 2023
NOTE N 0.46 DISCLOSURE IN R E LATION TO J N DISC LOSE DIN CO M E
The company do not have any such transactions which is not recorded in the books of accounts that has ben surrendered or disclosed as income during the yea r ended 31st Ma rch, 2024 and also for the year ended 31 st March, 202 3 in the tav assessments under Income Tax Act, 1961 (such as, search gr survey orariy other relevant provisions gfthe IncgmeTaKAct, 1961).
NOTE N0.47 DETAILS OF CRYPTOCURRENCY OR VIRTUAL CURRENCY
The company have not traded or invested In crypto currency or virtual currency during the yeat ended 3lst March, 2024 and also for the year ended 31st March, 2023
NOTE NO,48 UTILISATION OF BORROWED FUND AND SHARE PREMIUM
The company have not advanced or loaned or invested funds to any other person(s) or entityfies), including foreign entitiesfi 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 I ike to or on behalf of the ultimate beneficiaries.
The company have not received any fond from any personas) or entity(ies), including foreign entiteis (funding party) with the understanding (whether reoorded in writing Dr 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 (ulitmata beneficiaries]or (b) provide any gua ra ntee, secu rlty or the li ke on behalf of the ultimate beneficiaries.
MOTE NO. 49 LOANS AND ADVANCES {REPAYABLE ON DEMAND OR WITHOUT SPECIFYING ANY TER MS OR PERIOD OF REPAYMENT) TO SPECIFIED PERSONS
During the year en ded 31 st March 20-24, the Company d id not pravid e any loa ns or advances, which rema ins outstand ing (repaya ble on dema nd or without specify ing a ny terms or period of repayment] to specified persons (Previous Year: NIL)
N DTE NO. 5 0 R EG 1ST RATI O N OF CHA RGES OR SATISFACTION WITH REGISTRAR O F CO M PANIES {ROC)
The company do not have any change or satisfaction, which yet to be registered with RQC beyond the statutory period, during the yea r ended 31 st M arch, 2024 and a Iso for the year ended 31st March, 2023
NOTE NO.51 WILFUL DEFAULTER
The oompany has not been declared wilful defaulter by any bank or Hnandal Institution or government or any government authority NOTE NO.52 Previous year/period figures have been re-grouped / re-classified wherever necessary.
In terms of our report attached.
For Sing I a Taya-I & Co.
Chartered Accountants (Firm's Reg no. D00&B2N)
CA Arpit Single
Partner
(M.No. 5QS049)
UDIN:
Place: Faridabad Date: 3Q-0 5-2024
1
nd AS 1 2 - Deferred Tax related to Assets a nd Lia bifities arisi ng from a Si ngle Transaction
The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases, These amendments had no im pact on the financial statements of the Company. There are no standa rds that a re notified a nd not yet effective as on the date.
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