1.10 Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for
future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at
the end of the reporting period. The discount rate used to determine the present value is a pre tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the
occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Group or whereany present obligation
cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.
A contingent asset is disclosed, where an inflow of economic benefits is probable. An entity shall not recognize contingent asset unless the
recovery is virtually certain.
1.11 Borrowing costs
General and specific borrowing costs directly attributable to the acquisition/ constructionof qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such timethe assets are
substantially ready for their intended use. All other borrowing costs are recognised as an expense in Statement of Profit and Loss in the
period in which they are incurred.
1.12 Recognition of income
Interest income from a financial asset is recognised when it is probable that the economicbenefits will flow to the Company and the amount of
income can be measured reliably.Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset's net carrying amount on initial recognition.
Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established.
1.13 Employee benefits
a) Short term employee benefits
Short term employee benefits are recognised as expenditure at the undiscountedvalue in the statement of profit and loss of the year in
which the related service is rendered.
b) Post employment benefits
i) Defined contribution plan
The Company's contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed
percentage of the eligible employees' salary and charged to the Statement of Profit and Loss on accrual basis. The Company has
categorised its Provident Fund, labour welfare fund and the Employees State Insurance Scheme as a defined contribution plan
since it has no further obligations beyond these contributions.
ii) Defined benefits plan
The Company's liability towards gratuity, being a defined benefit plan are accounted for on the basis of an independent ‘actuarial
valuation based on Projected Unit Credit Method.
Service cost and the net interest cost is included in employee benefit expense in the Statement of Profit and Loss. Actuarial gains
and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately
in ‘other comprehensive income' as income or expense.
iii) Compensated absences
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year
are treated as short term employee benefits. The obligation towards the same is measured atthe expected cost of accumulating
compensated absences as the additional amount expected to be paid as a result of the unused entitlement as atthe year
end. The Company's liability is actuarially determined (using the Projected Unit Credit method)
1.14 Income Tax
Income tax expense comprises current tax, deferred tax charge or credit. The deferred tax charge or credit and the corresponding deferred
tax liability and assets are recognized using the tax rates that have been enacted or substantially enacted on theBalance Sheet date.
Deferred Tax assets arising from unabsorbed depreciation or carry forward losses are recognized only if there is virtual certainty of
realization of such amounts. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future.
Deferred tax assets are reviewed at each Balance Sheet date to reassess their reliability.
1.15 Cash and cash equivalents
Cash and cash equivalents includes cash in hand and deposits with any qualifying financial institution repayable on demand or maturing
within three months from the dateof acquisition and which are subject to an insignificant risk of change in value.
1.16 Earnings per share
Basic earnings per share (EPS) is calcualted by dividing the net profit or loss for the yearattributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and
dilutive equity equivatent shares outstanding during the year.
1.17 Significant management judgements in applying accounting policies andestimation uncertainty
When preparing the financial statements, management makes a number of judgements,estimates and assumptions about the recognition and
measurement of assets, liabilities, income and expenses. 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 periods.
Impairment of non-financial assets
In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future
cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the
determination of a suitable discount rate.
Depreciation and useful lives of property, plant and equipment
Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual
value. Management reviews the estimated useful lives and residual values of the assets annually in order to determinethe amount of
depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company's historical
experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if
there are significant changes from previous estimates.
Recoverability of trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those
receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments
and any possible actions that can be taken to mitigate therisk of non-payment.
Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from
past operations or events andthe amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the
liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows
can take place many years in the future, the carrying amounts of provisions and liabilities are reviewedregularly and adjusted to take account
of changing facts and circumstances.
Defined benefit obligation (DBO)
Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality,
discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the
annual defined benefit expenses.
Fair value measurement of financial instruments
Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available)
and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the
instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case
management uses the best information available. Estimated fair values may vary fromthe actual prices that would be achieved in an arm's
length transaction at the reportingdate.
Material uncertainty about going concern:
In preparing financial statements, management has made an assessment of Company'sability to continue as a going concern. Financial
statements are prepared on a going concern basis. The Management is aware, in making its assessment, of material uncertainties related
to events or conditions that may cast significant doubt upon the Company's ability to continue as a going concern.
2. Terms / rights attached to equity shares
issued
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends
and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time
to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of
the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call
or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to
forfeiture of the shares. On winding up of the Company, the holders of equity shares will be entitled to receive the
residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number
of equity shares held.
The Company has exposure to the following risks arising from
financial instruments:
Ý Credit risk
Ý Liquidity risk
Ý Market risk
Ý Interest rate risk
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and resulting in financial loss to the Company.The
Company is exposed to credit risk from its operating activities (primarily trade receivables).
The carrying amount of following financial assets repre sents the maximum credit exposure:
Trade receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk of the industry and country in which customers operate.
The Risk Management Committee has established a credit policy under which each new customer is
analysed individually for creditworthiness before the Company’s standard payment and delivery terms
and conditions are offered. The Company’s review includes external ratings, if they are available, and in
some cases bank references.
Goods are sold subject to retention of title clauses, so that in the event of non-payment the Company may
have a secured claim. The Company does not otherwise require collateral in respect of trade and other
receivables
27 Corporate social
responsibility
As per Section 135 of the Companies Act, 2013, every Company having net worth of Rupees five hundred crore or
more, or turnover of Rupees one thousand crore or more, or a net profit of Rupees five crore or more during any
financial year shall constitute the CSR Committee.
The Provisions of Corporate Social Responsibility (CSR) u/s 135 of the Companies Act, 2013 is not applicable to
the company.
28 Contingent liabilities and
commitments
Based on the internal assessment made by the management, the Company does not
have any contingent liability as on balance sheet date .(31 March 2025: Nil)
31 The figures of the previous year have been reworked, regrouped, rearranged and reclassified,
wherever necessary to conform to the current year presentation.
For M/S Bhasin H0ta & C0. For and on behalf of the Board of Directors of
Chartered Accountants M/s S V J Enterprises Limited
FRN: 509935E
Sd /- Sd /-
Sd/-
CA Akshay Suresh Joshi Director Director
Partner Suresh Jha Saanvi Kargutkar
Membership No: 170787 DIN: 01189584 DIN: 09085295
Place: Mumbai
Date: 29.05.2025
UDIN: 25170787BMJOGJ8131 Sd /- Sd /-
CFO Director
Veena Jha Satish Dogra
DIN:09435935
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