xv) Contingent liabilities and commitments:
Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a
present obligation that arises from past events but is not recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be
measured with sufficient reliability.
xvi) Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rates prevailing at the date of the transaction. Exchange
differences arising on settlement of foreign currency transactions are recognized in the Statement of Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies and remaining unsettled as at the balance sheet date
are translated using the closing exchange rates on that date and the resultant net exchange difference is recognized in
the Statement of Profit and Loss.
xvii) Cash and cash equivalents
Cash and cash equivalents comprise cash balances on hand, balances with bank and other short term highly liquid
investments with original maturities, at the date of purchases/ investment, of three months or less.
Company attention was drawn to provisions of accounting standard that actuarial assumptions are an entity's best
estimates of variables that will determine the ultimate cost of providing post employment benefits and shall be
unbiased & mutually compatible.
a) Economic Assumptions
The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon
the market yields available on Government bonds at the accounting date relevant to currency of benefit payments
for a term that matches the liabilities. Salary growth rate is company's long term best estimate as to salary
increases & takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on
long term basis as provided in relevant accounting standard. These valuation assumptions are as follows;
Attrition rates are the company's best estimate of employee turnover in future determined considering factors
such as nature of business & industry, retention policy, demand & supply in employment market, standing of the
company , business plan, HR Policy etc. as provided in the relevant accounting standard. Attrition rates as given
below have been received as input from the company.
As required by Ind AS 19, actuarial valuation is done using 'Projected Unit Credit Method'. Under this method,
only benefits accrued till the date of valuation (i.e. based on service upto date of valuation) are to be
considered for valuation. Present value of Defined Benefit Obligation is calculated by projecting salaries, exits
due to death, resignation and other decrements, if any, and the actuay projects the benefit till the time of
retirement of each active member using assumed rates of salary escalation, mortality & employee turnover
rates. The expected benefit payments are then discounted back from the future date of payment to the date of
valuation using the assumed discount rate. 'Service Cost' is calculated separately in respect of benefit accrued
during the current period using the same method as described above. However, instead of all accrued
benefits, benefit accrued over the current reporting period is considered.
During the year company has made provision of gratuity payable based on actuarial report as per Indian
Accounting Standard (Ind AS 19)
A) Management of 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, 2025 and 31st March, 2024. Cash flow from operating activities provides the funds to
service the financial liabilities on a day-to-day basis.
B) Management of Market Risk
1. Currency Risk
The Company is not subject to the Currency risk. The Company has laid policies and guidelines which it adheres
to in order to minimize the risk.
2. Price Risk
The Company is mainly exposed to the price risk due to its investment in debt portion of mutual funds. The price
risk arises due to uncertainties about the future market values of these investments. At 31st March, 2025, the
investments in mutual funds amounts to Rs.481.33/-lakhs (31st March, 2024: Rs.922.42/-lakhs ).
These are exposed to price risk.
The Company has laid policies and guidelines which it adheres to in order to minimize price risk arising from
investments in mutual funds.
3. Interest Rate Risk
The Company is mainly not exposed to the interest rate risk. The interest rate risk arises due to uncertainties
about the future market interest rate on investments.
C) Management of Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations.
Trade receivables : Concentration of credit risk with respect to trade receivables are limited, due to the
Company's customer base being large and diverse. All trade receivables are reviewed and assessed for default
on a quarterly basis. Our historical experience of collecting receivables indicate a low credit risk. Hence, trade
receivables are considered to be a single class of financial assets.
47. No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other
sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities
(Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i)
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 (ii) provide anyguarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
No funds have been received by the Company 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries
48. Compliance with approved Scheme(s) of Arrangement : Not Appliacble
49. The Figure have been rounded off to the nearest rupees in lakhs.
50. The previous period figures have been re-grouped or re-arranged whenever considered necessary and have been
shown in bracket.
For and on behalf of the Board of Directors For PVSP & Co
Chartered Accountants
FRN : 008940N
Sd/- Sd/- Sd/- Sd/-
Vivek Jain Vineet Jain Anil Kumar Rustogi CA Vinod Ralhan
Director Director Company Secretary Partner
DIN: 01753065 DIN:01823758 M.No. A13831 M.No.: 091503
Place: New Delhi
Date: 30.05.2025
UDIN: 25091503BMJEKG8001
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