13. Provisions, Contingent Liabilities, Contingent Assets and Capital Commitments
Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation, if
a) The company has a present obligation as a result of a past event.
b) A probable outflow of resources is expected to settle the obligation; and
c) The amount of obligation can be reliably estimated.
Contingent liability is disclosed in case of
d) Present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,
e) Present obligation when no reliable estimate is possible; and
f) A possible obligation arising from past events where the probability of outflow of resources is notremote.
Contingent assets are not recognized. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.
14. Earnings per share
The earnings considered in ascertaining the Company's earnings per share comprise of the net profit after tax for the year. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of shares, which would have been issued on conversion of dilutive potential equity shares, if any.
15. Impairment of assets
An Asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
16. Cash flow statement
Cash flow statement has been prepared under the indirect method as set out in the Indian Accounting Standard 7: "Statement of Cash Flows" as specified in Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules,2014.
For Rao & Emmar., For Smiths & Founders (India) Limited
Chartered Accountants
Firm Reg.No. 003084S Suresh Shastry Shailaja Suresh
Managing Director Director
DIN:1099554 DIN:01326440
S B Subhash Roopashree Shettigar Supriya Shastry
Partner Company Seceretary Chief Financial Officer
Membership No. 212948 M. No. A 52321 PAN: ATLPS8023M
Place: Bengaluru Place: Bengaluru
Date: 30th May, 2024 Date: 30th May, 2024
The Management is in continuous process of obtaining confirmations from its vendors regarding their registrations under the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Under the MSMED Act, 2006 which came into force with effect from October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. On the basis of information and records available with the company, none of the vendors have informed the Company that they are Small Scale Industrial Undertakings. Hence, information regarding dues to such undertakings is not furnished. The Company has not received any claim for interest from any supplier under the said Act.
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company's principal financial liabilities comprise borrowings trade and other payables The mam purpose of these financial liabilities is to manage finances for the Company's operations. The Company's risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
1 MARKET RISK MANAGEMENT
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument The value of a financial instrument may change as a result of changes in interest rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks, i. 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. In order to optimize the Company's position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .
Liquidity risk refers to the risk of financial distress or extraordinary 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 longterm capital expenditure growth project. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term investments provide liquidity in the short-term and long-term. The Company has established an appropriate liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity management requirements. 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 matching the maturity profiles of financial assets and liabilities.
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in Significant accounting policies of the Company.
Note-37 The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against
the Company for holding any benami property.
Note-38 The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.
Note-39 The company does not have any approved schemes of arrangements during the current and previous year.
Note-40 The Company does not hold any cryptocurrency or virtual currency as at 31 March 2024 and 31 March 2023. The Company has also not received any deposits or
advances for the purpose of investing in cryptocurrencies or virtual currencies.
Note-41 All the title deeds of the immovable properties that are disclosed in the financials are held in the name of the Company.
Note-42 The Company does not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,
Note-43 Borrowings
The Company has not received any fund from any person(s) or ent'rty(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 Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.
The Company has utilised all its borrowed fund for the purpose for which it was obtained.
There are no charges or satisfaction which are yet to be registered with the Register of Companies beyond, that has exceeded the statutory period.
Note - 44 Previous year's figures have been regrouped/reclassified wherever necessary to conform with the current year's classification/disclosures.
For Rao & Emmar For Smiths & Founders (India) Limited
Chartered Accountants
Firm Registration No. 003084S
SB Subhash 1) Suresh Shastry 2) Shailaja Suresh
Partner Managing Director Director
Membership No. 212948 DIN: 1099554 DIN: 1326440
3) Roopashree Shettigar 4) Supriya Shastry
Company Seceretary Chief Financial Officer
M. No. A 52321 PAN: ATLPS8023M
Place: Bengaluru Place: Bengaluru
Date: 30/05/2024 Date: 30/05/2024
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