2.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The assessments undertaken in recognising provisions and contingencies have been made in accordance with the
applicable Ind AS. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date and are adjusted to reflect the current best estimate.
2.14.1 PROVISIONS
Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in
the statement of profit and loss as a finance cost.
2.14.2 CONTINGENT LIABILITIES
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
There are certain obligations which management of the Company has concluded, based on all available facts and
circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as
contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not
expected that such contingencies will have a material effect on its financial position or profitability.
2.14.3 CONTINGENT ASSETS
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is
probable.
2.15 CASH FLOW STATEMENT
Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows”, whereby profit/
(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.
2.16 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision
Maker “CODM” of the Company.
2.17 CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Company presents assets and liabilities in statement of financial position based on current/non-current classification.
The Company has presented non-current assets and current assets before equity, non-current liabilities and current
liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.
i. An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.
ii. All other assets are classified as non-current.
iii. A liability is classified as current when it is:
a) Expected to be settled in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
iv. All other liabilities are classified as non-current.
v. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or
cash equivalents.
vi. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2.18 FAIR VALUE MEASUREMENT
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservable
inputs.
Other Fair Value related disclosures are given in the relevant notes.
2.19 EXCEPTIONAL ITEMS
Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full
understanding of the Company’s financial performance.
2.20 SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION
UNCERTAINTY
The preparation of Financial Statements requires management to make estimates and assumptions that affect the
reported balances of assets, liabilities and disclosure of contingent liabilities at the date of the financial statements
and reported amounts of income & expenses during the periods. Although these estimates and assumptions used in
accompanying financial statements are based upon management’s evaluation of relevant facts and circumstances as of
date of financial statements which in management’s opinion are prudent and reasonable, actual results may differ from
estimates and assumptions used in preparing accompanying financial statements. Any revision to accounting estimates
is recognized prospectively from the period in which results are known/ materialise in accordance with applicable Indian
accounting standards.
Information about estimates and assumptions that have the most significant effect on recognition and measurement of
assets, liabilities, income and expenses is provided below.
2.21 SIGNIFICANT MANAGEMENT JUDGEMENTS
The following are Significant Management Judgements in applying the Accounting Policies of the Company that have
the most significant effect on the Financial Statements.
2.21.1 EVALUATION OF INDICATORS FOR IMPAIRMENT OF ASSETS
The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal
factors which could result in deterioration of recoverable amount of the assets.
2.22 ESTIMATION UNCERTAINTY
Information about estimates and assumptions that have the most significant effect on recognition and measurement of
assets, liabilities, income and expenses is provided below.
2.22.1 IMPAIRMENT OF FINANCIAL ASSETS
The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,
based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each
reporting period.
2.22.2 INCOME TAXES
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and
timing of future taxable income. Given the wide range of business relationships and the long term nature and complexity
of existing contractual agreements, differences arising between the actual results and the assumptions made, or future
changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The
Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various
factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity
and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on
the conditions prevailing in the respective domicile of the companies.
2.22.3 PROVISIONS AND CONTINGENCIES
Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
Nature and purpose of Other Reserves
SECURITIES PREMIUM
The amount received in excess of Par Value of the equity shares is recognised in Securities Premium Reserve. In case of
equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is
accounted as securities premium reserve.
STATUTORY RESERVE (U/S 45-IC OF RBI ACT, 1934)
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specified
percentage of net profit every year before any dividend is declared. The reserve fund can be utilised only for limited purposes
as specified by RBI from time to time and every such utilisation shall be reported to the RBI within specified period of time from
the date of such utilisation.
GENERAL RESERVE
General Reserve represents the Statutory Reserve, this is in accordance with Corporate law wherein a portion of profit is
apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can
declare dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the
Company.
RETAINED EARNINGS
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.
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 group has classified
its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows
underneath the table.
The fair value of financial instruments as referred to in note above has been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical
assets or liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements).
The categories used are as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy levels as at the end of the reporting
period.
Note - 23
FINANCIAL RISK MANAGEMENT
The Company’s businesses are subject to several risks and uncertainties including financial risks. The Company’s documented
risk management polices, act as an effective tool in mitigating the various financial risks to which the business is exposed to
in the course of their daily operations. The risk management policies cover areas such as interest rate risk, counterparty and
concentration of credit risk and capital management.
The Company’s senior management oversees the management of these risks. The senior professionals working to manage
the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of
Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial
risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and
managed in accordance with Company policies and Company risk objective.
23.1. INTEREST RATE RISK
The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s
exposure to and management of these risks are explained below.
The Company is mainly exposed to the interest rate risk due to its investment in term deposits with banks. The Company
invests in term deposits for a period of up to five year. Considering the short-term nature, there is no significant interest rate risk
pertaining to these deposits.
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. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term debt obligations with floating interest rates and term deposits. The Company’s fixed rate borrowings and deposits are
carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying
amount nor the future cash flows will fluctuate because of a change in market interest rates.
The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate of borrowings.
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
23.2. 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 obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of
financial loss from defaults.
The Company is exposed to credit risk from its operating activities (primarily its investing activities including deposits with banks
and cash and cash equivalents.
For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks. The carrying value
of the financial assets other than cash represents the maximum credit exposure.
None of the Company’s cash equivalents, including flexi deposits with banks, are past due or impaired.
The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of
assumptions, inputs and factors specific to the class of Financial Assets.
23.3. LIQUIDITY RISK
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024
and 31st March, 2023
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest
bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted
cash flows along with its carrying value as at the Balance Sheet date.
Note - 25
Disclosure relating to dues outstanding to Micro and Small enterprises as defined in Micro, Small
and Medium Enterprises Development Act, 2006
In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 and the Companies Act, 2013, the
outstanding Interest due thereon interest paid etc to these enterprises are required to be disclosed. However, these enterprises
are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act,
the required information could not be furnished.
Note -26
Corporate Social Responsibility
As per the provisions of section 135 of the Companies Act, 2013, the Company is not falling in the criteria as is prescribed in the
said section and as such, CSR is not applicable during this year.
Note -28
Going Concern
The Promoter’s Financial Support by way of Inter Corporate Deposits of ' 5,908.58 Lakh (previous year ' 5,808.37 Lakh) from
time to time helps the Company to meet with any financial requirement including, expenses for operational activities, although
the existing accumulated loss is ' 7,452.93 Lakh (previous year ' 7,346.64 Lakh) and negative net worth of ' 5,985.23 Lakh
(Previous year ' 5,878.94 Lakh) and accordingly the financial statements are prepared on Going Concern Basis.
i. Details of Benami Property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii. Willful Defaulter
Company has not been declared Willful defaulter by any bank or financial institution or government or any government
authority.
iii. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
(v) Utilization of borrowed funds and share premium
A. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entity(ies) (Intermediary (ies)) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other person(s) or entity (ies) identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiary (ies)) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary (ies)
B. The Company has not received any fund from any person(s) or entity(ies), including foreign entity(ies) (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other person (s) or entity (ies) identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiary (ies)) or
b. provide any guarantee, security or the like on behalf of the (Ultimate Beneficiary (ies))
(vi) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.
(vii) Details of Crypto currency or Virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(viii) Valuation of Property, Plant and Equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.
(ix) Registration of charges or satisfaction with Registrar of Companies:
Details of Charges pending for satisfaction as at 31st March 2024 & as at 31st March 2023, which are yet to be registered
with Registrar of Companies beyond the statutory period, however, as at 31st March 2024, there are no charges to be
registered with Registrar of Companies.
(x) Utilization of borrowings availed from banks and financial institutions:
The Company has no borrowings during the year from banks and financial institutions.
(xi) The Company has not declared or paid dividend during the year 2023-24.
Note - 30
(i) Previous year figures have been regrouped/rearranged wherever, considered necessary.
As per our Report of even date
For JAGDISH CHAND & CO. RAJIV GUPTA M K MADAN ARUN MITTER
Chartered Accountants Chairman Director Director
(ICAI Firm Reg. No: 000129N) DIN : 00022964 DIN : 01060575 DIN : 00022941
Place: New Delhi Place: New Delhi Place: New Delhi
Preeti Basniwal Date : 22nd May 2024 Date : 22nd May 2024 Date : 22nd May 2024
Partner
Membership No. 531468 Vishnu Singhal Bipin B Bhavsar Hinal R Mehta
Place: New Delhi Independent Director Chief Executive Officer Company Secretary
Date : 22nd May 2024 DIN: 02421372 Place: Mumbai & Compliance Officer
Place: New Delhi Date : 22nd May 2024 A25618
Date : 22nd May 2024 Place: Mumbai
Date : 22nd May 2024
Shreeram G Garde
Chief Financial Officer
Place: Mumbai
Date : 22nd May 2024
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