2.20 Provisions, Contingent Liabilities and Contingent Assets (Ind AS
37):
Provisions are recognized only when there is a present obligation, as a
result of past events, and when a reliable estimate of the amount of
obligation can be made at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current best
estimates. Provisions are discounted to their present values, where
the time value of money is material.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not
wholly within the control of the Company; or
• Present obligations arising from past events where it is not probable
that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognized nor disclosed. However,
when realization of income is virtually certain, related asset is
recognized.
2.21 Prior Period and Extraordinary and Exceptional Items:
• All Identifiable items of Income and Expenditure pertaining to prior
period are accounted through ‘'Prior Period Items''.
• Extraordinary items are income or expenses that arise from events or
transactions that are clearly distinct from the ordinary activities of the
enterprise and, therefore, are not expected to recur frequently or
regularly. The nature and the amount of each extraordinary item be
separately disclosed in the statement of profit and loss in a manner that
its impact on current profit or loss can be perceived.
• Exceptional items are generally non-recurring items of income and
expenses within profit or loss from ordinary activities, which are of
such, nature or incidence.
2.22 Financial Instruments (Ind AS 107): Financial Instruments:
I. Financial assets:
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value.
Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities, which are not at fair
value through profit or loss, are adjusted to the fair value on initial
recognition.
• Financial assets carried at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a
business model whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
• Financial assets at fair value through profit or loss (FVTPL)
A Financial asset which is not classified as AC or FVOCI are
measured at FVTPL e.g. investments in mutual funds. A gain or loss on
a debt investment that is subsequently measured at fair value through
profit or loss is recognised in profit or loss and presented net in the
Statement of Profit and Loss within other gains/(losses) in the period in
which it arises.
• Financial assets at fair value through other comprehensive income
(FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business
model whose Objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount
outstanding.
B. Investments in subsidiaries
The Company has accounted for its investments in subsidiaries at cost
and not adjusted to fair value at the end of each reporting period. Cost
represents amount paid for acquisition of the said investments.
II. Financial Liabilities
A. Initial recognition
All financial liabilities are recognized at fair value.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the 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
2.23 Events Reporting Period (Ind AS-10)
An entity shall adjust the amounts recognized in its financial
statements to reflect adjusting events after the reporting period.
2.24 Consolidated and Separate Financial Statement (Ind AS 27):
The company has two subsidiary companies for the current reporting
period. Hence consolidated and separate financial statement are
prepared as per the Ind AS 27.
2.25 Investments in Associates (Ind AS 28):
The company has not made any investments in any of its associates
during the reporting period. This accounting standard has no financial
impact on the financial statements for the current reporting period.
2.26 Interest in Joint Ventures (Ind AS 31)
The company has no interest in any Joint ventures. This accounting
standard has no financial impact on the financial statements for the
current reporting period.
2.27 Income Taxes (Ind AS 12)
Tax expense for the year, comprising current tax and deferred tax, are
included in the determination of the net profit or loss for the year.
• Current Tax:
Current tax assets and liabilities are measured at the amount expected
to be recovered or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted or
substantively enacted, at the year-end date. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously.
• Deferred Taxes:
Deferred income tax is provided in full, using the balance sheet
approach, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in financial
statements. Deferred income tax is also not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than
a business combination that at the time of the transaction affects
neither accounting profit nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the year and are expected to apply
when the related deferred income tax asset is realized or the deferred
income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilize those temporary differences
and losses.
Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis
of amounts expected to be paid to the tax authorities.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and when
the deferred tax balances relate to the same taxation authority.
Current and deferred tax is recognised in the Statement of Profit and
Loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity,
respectively.
2.28 Related party (Ind AS 24)
Disclosures are made on related party relationships, transactions and
outstanding balances, including commitments. Related parties are
identified by the Company in accordance with the requirements of Ind
AS 24 and are disclosed in the Notes to Financial Statements.
Related party transactions are reflected in the notes to accounts
forming part of financial statements.
2.29 Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, the
accompanying disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future years.
I. Estimates and assumptions
The key assumptions concerning the future and other key sources of
estimation uncertainty at the yearend date, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The
Company based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
(a) Defined benefit plans gratuity benefits
The cost of the defined benefit plans such as gratuity are determined
using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are
reviewed at each year end. The principal assumptions are the discount
and salary growth rate. The discount rate is based upon the market
yields available on government bonds at the accounting date with a
term that matches that of liabilities. Salary increase rate takes into
account of inflation, seniority, promotion and other relevant factors on
long term basis.
(b) Share-based payments
Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which is
dependent on the terms and conditions of the grant. This estimate also
requires determination of the most appropriate inputs to the valuation
model including the expected life of the share option, volatility and
dividend yield and making assumptions about them.
The Company does not have any share-based payment
arrangements. Accordingly, this is not applicable.
2.30 Recent accounting pronouncements
The Ministry of Corporate Affairs (MCA) has issued the Companies
(Indian Accounting Standards) (Amendment) Rules, 2024:
a) Ind AS 117 - Insurance Contracts, which replaces the interim Ind AS
104 and introduces comprehensive requirements on measurement
and disclosures aligned with IFRS 17.
b) Amendments are made to Ind AS 101, 103, 105, 107, 109, 115, 116
which are necessary to align them with the newly issued to reflect the
issuance of Ind AS 117, including scope adjustments, transition
provisions and disclosure enhancements.
These changes are effective for accounting periods beginning on or
after 1 April 2024.
The Company has assessed their impact and concluded that, they
have no material effect on the financial statements.
** During the year, the Company has issued 2,69,80,000 No. of share
warrants at an issue price of Rs.20 per warrant, aggregating to Rs.
13,49,00,074.60. Each warrant is convertible into one equity share of face
value Rs. 1 each at a premium of Rs. 19, in accordance with applicable SEBI
(ICDR) Regulations and Companies Act, 2013.
The warrant holders have paid 25% of the total consideration amounting to
Rs. 13,49,00,074.60 at the time of allotment of warrants. The balance amount
shall be payable at the time of conversion of the warrants into equity shares
within 18 months from the date of allotment.
The funds received have been classified as money received against share
warrants under “Other Equity” in the Balance Sheet.
32. Derivative instruments and un-hedged foreign currency exposure:
a) There are no outstanding derivative contracts as at March 31,2025, and
March 31,2024.
b) Particulars of Un-hedged foreign currency exposure is: Nil
33. Secured Loans:
Term Loans:
From banks and financial institutions, together with interest accrued
thereon, are secured by way of Vehicle Loans - primarily secured by the
vehicle acquired with the loan sanction and personal guarantee of
Director.
Working capital Loans:
Secured by way hypothecation on stocks, books debts and floating
charge on Movable property not being pledged.
** As per information and explanations provided by the management and
based on available records, there are no dues outstanding as on March 31,
2025, in respect of Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, Goods and Services Tax (GST), or any other statutory levies
which have not been deposited with the appropriate authorities on account of
any dispute.
However, the following income tax demands are under dispute and have not
been deposited in view of appeals filed by the Company before the
appropriate authorities:
The Company has filed stay petitions against the above demands and has
deposited an amount of Rs. 210.00 lakhs under protest, which is disclosed
under Other Current Assets in the financial statements. Based on expert legal
advice, the management believes that the above demands are not
sustainable and is confident of a favourable outcome. Accordingly, no
provision has been made in the books of account in this regard.
The information has been given in respect of such vendors to the extent they
could be identified as micro and small enterprises on the basis of information
available with company.
44. Financial Risk Management
In course of its business, the company is exposed to certain financial risk
such as market risk (Including currency risk and other price risks), credit
risk and liquidity risk that could have significant influence on the
company's business and operational/financial performance. The Board
of directors reviews and approves risk management framework and
policies for managing these risks and monitor suitable mitigating actions
taken by the management to minimize potential adverse effects and
achieve greater predictability to earnings.
45. Credit Risk
Credit risk refers to the risk that counterparty will default on its
contractual obligations resulting in financial loss to the company. The
company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as
a means of mitigating the risk of financial loss from defaults.
The company makes an allowance for doubtful debts/advances using
expected credit loss model.
46. Liquidity risk
Liquidity risk refers to the risk that the company cannot meet its financial
obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as pre
requirements. The Company's exposure to liquidity risk is minimal as the
promoters of the company is infusing the funds based on the
requirements.
47. Financial figures have been rounded off to nearest rupees in lakhs and
regrouped wherever is necessary.
Notes 3 to 47 forms part of Balance Sheet and have been authenticated.
As per our Report of even date For and on behalf of the Board of Directors
For M M REDDY & CO., VARIMAN GLOBAL ENTERPRISES LIMITED
Chartered Accountants
Firm Reg No:010371S
a Sd/- Sd/-
Sd/- Dayata Sirish Raja Pantham
M Madhusudhana Reddy Managing Director Whole time Director and CFO
Partner 3 DIN: 01999844 DIN: 07547750
Membership No: 213077
UDIN: 25213077BMIHUZ8068 *
Priyanka Agarwal
Place: Hyderabad Company Secretary
Date : 30-05-2025
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