(xiv) Provisions, contingent liabilities and
contingent assets:
Provisions are recognised only when:
(i) an Company entity has a present obligation
(legal or constructive) as a result of a past
event; and
(ii) it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; and
(iii) a reliable estimate can be made of the
amount of the obligation
Provision is measured using the cash flows
estimated to settle the present obligation and
when the effect of time value of money is material,
the carrying amount of the provision is the present
value of those cash flows. Reimbursement
expected in respect of expenditure required to
settle a provision is recognised only when it is
virtually certain that the reimbursement will be
received
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events,
when it is not probable that an outflow
of resources will be required to settle the
obligation; and
(ii) a present obligation arising from past events,
when no reliable estimate is possible
Contingent assets are disclosed
where an inflow of economic benefits
is probable. Provisions, contingent
liabilities and contingent assets are
reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the
obligations under the contract exceed the
economic benefits expected to be received
under such contract, the present obligation
under the contract is recognised and
measured as a provision.
xv) Statement of cash flows:
Statement of cash flows is prepared segregating
the cash flows into operating, investing and
financing activities.cash flow from operating
activities is reported using indirect method
adjusting the net profit for the effects of:
(i) changes during the period in operating
receivables and payables transactions of a
non-cash nature;
(ii) non-cash items such as depreciation,
provisions, deferred taxes, unrealised gains
and losses; and
(iii) all other items for which the cash effects are
investing or financing cash flows.
Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as on the date of Balance Sheet.
(xvi) Earnings per share
Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period. Earnings considered in ascertaining the
Company’s earnings per share is the net profit
for the period after deducting dividends and any
attributable tax thereto for the period. The weighted
average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus shares, other
than the conversion of potential equity shares,
that have changed the number of equity shares
outstanding, without a corresponding change in
resources. For the purpose of calculating diluted
earnings per share, the net profit or loss for the
period attributable to equity shareholders and the
weighted average number of shares outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.
(xvii) Foreign currencies
(i) The functional currency and presentation
currency of the Company is Indian Rupee.
Functional currency of the Company and
foreign operations has been determined
based on the primary economic environment
in which the Company and its foreign
operations operate considering the currency
in which funds are generated, spent and
retained.
(ii) Transactions in currencies other than the
Company’s functional currency are recorded
on initial recognition using the exchange
rate at the transaction date. At each Balance
Sheet date, foreign currency monetary items
are reported at the prevailing closing spot
rate. Non-monetary items that are measured
in terms of historical cost in foreign currency
are not retranslated.
Exchange differences that arise on
settlement of monetary items or on reporting
of monetary items at each Balance Sheet
date at the closing spot rate are recognised
in the Statement of Profit and Loss in the
period in which they arise.
(ii) Financial statements of foreign operations
whose functional currency is different than
Indian Rupees are translated into Indian
Rupees as follows:
A. assets and liabilities for each Balance
Sheet presented are translated at the
closing rate at the date of that Balance
Sheet;
B. income and expenses for each income
statement are translated at average
exchange rates; and
C. all resulting exchange differences are
recognised in other comprehensive
income and accumulated in equity as
foreign currency translation reserve for
subsequent reclassification to profit
or loss on disposal of such foreign
operations.
(xviii) Dividend
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.
Note 2.32 : Segment Reporting:
There is no separate reportable segment as per Ind AS 108 on 'Operating Segments' in respect of the Company.
Note 2.33 : Lease
The Company has adopted Ind AS 116 with effect from April 01, 2019 and applied the standard to its leases
retrospectively in accordance with the requirements of the standard, the lease liability under operating lease has
been recognised on straight line basis.
Note 2.34 : Financial Risk Management
Company has operations in India. Whilst risk is inherent in the Company’s activities, it is managed through
an integrated risk management framework, including ongoing identification, measurement and monitoring,
subject to risk limits and other controls. This process of risk management is critical to the Company’s continuing
profitability and each individual within the Company is accountable for the risk exposures relating to his or her
responsibilities. The Company is exposed to credit risk, liquidity risk and market risk. It is also subject to various
operating and business risks.
A. Credit Risk
Credit risk is the risk that the Company will incurr a loss because its customers or counterparties fail to
discharge their contractual obligation. The Company manages and controls credit risk by setting limits
on the amount of risk it is willing to accept for individual counterparties, and by monitoring exposures in
relations to such limits.
The maximum exposure to credit risk for each class of financial instruments is the carrying amount of
that class of financial instruments presented in the financial statements. The Company’s major classes of
financial assets are cash and cash equivalents, loans, investment in mutual fund units, investment in equity
instruments, term deposits, trade receivables and security deposits.
Deposits with banks are considered to have negligible risk or nil risk, as they are maintained with high
rated banks / financial institutions as approved by the Board of directors. The management has established
accounts receivable policy under which customer accounts are regularly monitored. The Company has a
dedicated risk management team, which monitors the positions, exposures and margins on a continuous
basis.
B. Liquidity Risk
Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The entity’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the entity’s reputation.
Prudent liquidity risk management requires sufficient cash and marketable securities and availability of
funds through adequate committed credit facilities to meet obligations when due and to close out market
positions.
The Company has a view of maintaining liquidity with minimal risks while making investments. The Company
invests its surplus funds in short term liquid assets in bank deposits and liquid mutual funds. The Company
monitors its cash and bank balances periodically in view of its short term obligations associated with its
financial liabilities.
Refer Note no. 2.35 For analysis of maturities of financial assets and financial liabilities.
C. Market Risk
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. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return.
(i) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates.
Foreign currency risk management
In respect of the foreign currency transactions, the company does not hedge the exposures since the
management believes that the same is insignificant in nature and will not have a material impact on the
Company.
(ii) Interest rate risk
The Company is exposed to Interest risk if the fair value or future cash flows of its financial instruments
will fluctuate as a result of changes in market interest rates. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates.
The Company’s interest rate risk arises from interest bearing deposits with bank. Management believe
that the interest rate risk attached to this financial assets are not significant due to the nature of this
financial assets.
(iii) Market price risks
The Company is exposed to market price risk, which arises from FVTPL investments. The management
monitors the proportion of these investments in its investment portfolio based on market indices.
Material investments within the portfolio are managed on an individual basis and all buy and sell
decisions are approved by the appropriate authority.
(b) Fair value of other financial assets and liabilities measured at amortised cost :
The carrying amounts of trade receivables, loans, other financial assets, trade payables, other financials
liabilities and cash and cash equivalents are considered to be the same as their fair values, due to short¬
term nature.
(c) Fair value hierarchy of financial assets and financial liabilities at fair value:
Fair value hierarchy :
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are :
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard.
An explanation of each level follows underneath the table.
Note 2.39 (b) : Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any person(s) or entity(ies), including
foreign entities (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 like on behalf of the Ultimate Beneficiaries
(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Parties) 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.
(vi) The Company has not made any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act,1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).
(vii) The Company does not have any transactions with companies which has been struck off by ROC under
section 248 of the Companies Act, 2013.
Note 2.40: Previous year figures have been re-grouped and re-arranged wherever necessary.
As per our attached report of even date For and on behalf of the Board
For B D G & CO LLP
Chartered Accountants Ashok T Kukreja (Chairman) DIN: 00463526
FRN No: 119739W/W100900 Pankaj R Ved (Director) DIN: 00207079
Nikhil Rathod Anil S Manghnani (Whole-time Director) DIN: 00012806
Partner r n Shenvi (Chief Financial Officer)
Membership No.161220
Place : Mumbai Vibha Axit Gandhi (Company Secretary)
Date : May 24, 2024
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