f) Provisions
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
g) Contingent Liabilities
Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company
or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic
benefits will be required to settle or a reliable estimate of amount cannot be made.
h) Revenue Recognition
Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct
goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and
duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a
receivable is recognised when it becomes unconditional.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount
that reflects the consideration entitled in exchange for those goods or services.
Sale of Goods
Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided
transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with
respect to the goods shipped.
Share transfer agency services
Revenue from rendering of other services is recognised over time by measuring the progress towards complete satisfaction of
performance obligations by using output method at the reporting period.
Interest Income
Interest Income from a Financial Assets is recognised using effective interest rate method.
i) Contract Balances
Trade Receivables
A receivable represents the Company's right to an amount of consideration that is unconditional.
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an
amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to
the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company performs under the contract.
j) Employee Benefits Expense
Short-Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are
recognised as an expense during the period when the employees render the services.
k) Impairment of Non- Financial Assets - Property, Plant and Equipment and Intangible Assets
The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and Equipment and
Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists, the recoverable
amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU)
is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.
l) Income Taxes
Income taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and
deferred taxes are recognised in statement of profit and loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity, respectively.
Current taxes
Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the Income Tax authorities, based
on tax rates and laws that are enacted at the reporting date.
Deferred taxes
Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and
taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in
which the temporary differences are expected to be received or settled.
m) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding
during the year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of all
dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a
later date.
31. Research & Development
The company conducts its R&D initiatives within the broad framework of innovation initiatives.
32. Additional Regulatory Information-
(I) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the
lessee) whose title deeds are not held in the name of the company and where such immovable property is jointly held with others, details are
given to the extent of company's share. - The Company has no such immovable properties
(ii) The company has not revalued its property, plant and equipments.
(iii) The loans or advances in the nature of loans granted to promoters, directors, KMP's and the related parties (as defined under Companies Act,
2013) are Nil (Previous year Nil)
(iv) There is no Capital Work in progress.
(v) There is no Intangible assets under development.
(vi) No proceedings have been initiated or pending against the company, under Prohibition of Benami Property Transaction Act.
(vii) The company has borrowings from the bank or financial institutions on the basis of security of current assets being fixed deposits against
overdraft facility. The Company has not and is not required to furnish quarterly statements or statement of current assets with banks.
(viii) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.
(ix) Relationship with struck off Companies- Nil/None
(x) Registration of charges or satisfaction with Registrar of Companies- No Charge registration or satisfaction was pending on the date of
balance-sheet except for the following in preceding financial year 2022-23
Other information -
1. Debt service coverage ratio - As loans taken are repayable on demand, principal amounts repaid have not been included in denominator.
Interest amount paid is included in denominator.
2. Inventory turnover ratio - The turnover includes turnover of commodities. The turnover soes not include turnover of shares. Whereas, the
inventory at the beginning of year and the year end consists of shares only. There was no inventory of commodities at the beginning and at the end
of the year. Therefore, reporting of this clause is not possible.
Terms and conditions relating to pledge :-
Other Financial Assets: Fixed deposits with Bandhan Bank Limited assets have been kept on pledged to secure overdraft facility
33 c. Financial Risk Management
The Company is exposed primarily to market risks being credit and liquidity risks, which may adversely impact the fair value of its financial
instruments. The Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus is
to assess the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance of
the Company.
33(d)(i) Management of Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amount according to the
contractual terms or obligations causing financial loss to the Company Credit risk encompasses of risk of default, risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers of
a continuous basis to whom the credit has been granted.
Exposure to Credit Risk
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk is Rs. 1875.25 Lakhs ( Rs. 2148.97 lakhs in preceding year) being the total of carrying amount of
Investments, loans, trade receivables, balance with banks, bank deposits and other financial assets.
Trade receivables
Concentration of credit risk with respect to trade receivables are limited, All trade receivables are reviewed and assessed for default on a
quarterly basis.
Other financial assets
The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short term
nature, there is no significant risks pertaining to these assets.
33(d)(ii)Management of Liquidity Risk
Liquidity risk arises from the Company's inability to meet its cash flow commitments on the due date.
The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without
incurring unacceptable losses.
The Company has obtained fund based overdraft facilities from bank. Furthermore, the Company have access to undrawn lines of
borrowing/ facilities.
The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2023 and
31st March, 2024. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day
basis.
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company's non¬
derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.
The accompaning rules are an integral part of there financial statement.
For and on Behalf of Board of Directors As per our report of even date attached
For Avinash Agrawal & Co
Chartered Accountants
FRN :022666C
Ritesh Sinvhal Sunil Gangrade
Director Whole - time Director
DIN:07969340 DIN:00169221
(CA Avinash Agrawal)
Pinkesh Gupta Ankit Joshi Proprietor
Chief Financial Officer Company Secretary M.N.: 410875
UDIN: 24410875BKFPHV5959
Place : Indore
Date: 27/05/2024
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