Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of past events, when it is probable (i.e. more likely than not) that an outflow of resources
embodying economic benefits will be required to settle the obligation, and when a reliable estimate of
the amount can be made. Provisions are reviewed at the end of each financial reporting period and
adjusted to reflect the current best estimate. When the Company expects some or all of the provision to
be reimbursed, the reimbursement is recognised as a standalone asset only when the reimbursement is
virtually certain.
Where effect of the time value of money is material, the provision is the present value of the estimated
expenditure required to settle the obligation.
A contingent liability is a possible obligation that arises from past events and whose existence will
only be confirmed by the occurrence of one or more uncertain future events not wholly within the
control of the Company. It can also be a present obligation arising from past events that is not
recognised because it is not probable that outflow of economic resources will be required or the
amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial information. When
a change in the probability of an outflow occurs so that the outflow is probable, it will then be
recognised as a provision.
A contingent asset is a probable asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly
within the control of the Company. The Company does not recognise contingent assets but discloses
their existence where inflows of economic benefits are probable, but not virtually certain.
Provisions for onerous contracts are recognised when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations under
the contract. Provisions for onerous contracts are measured at the present value of lower of the
expected net cost of fulfilling the contract and the expected cost of terminating the contract.
viii.Share Capital and share premium:
Ordinary shares
Proceeds from issuance of ordinary shares are classified as share capital in equity. Incremental costs
directly attributable to the issue of new shares are shown in equity as a deduction net of tax from the
proceeds. Par value of the equity share is recorded as share capital and the amount received in excess
of the par value is classified as share premium.
ix.Cash Flows and Cash and Cash Equivalents:
Statement of cash is prepared in accordance with the indirect method prescribed in the relevant Ind
AS. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash on hand, cheques and drafts on hand, deposits held with banks, other short term, highly liquid
investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and book
overdrafts. However, book over drafts is shown within borrowings in current liabilities in the balance
sheet for the purpose of presentation.
x. Trade receivables
Trade receivables are amounts due from customers for goods sold or services rendered in the ordinary
course of business. Trade receivables are recognised initially at fair value (at carrying value) and
subsequently measured at amortised cost using the effective interest method, less provision for
impairment if require.
xi. Trade payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured and are usually paid within 180 days of
recognition. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period. They are recognised initially at their fair value (at
carrying value) and subsequently measured at amortised cost using the effective interest method if
require.
xii. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are removed from the Balance Sheet when the obligation specified in the contract is
discharged, cancelled or expired.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.
xiii. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.
The specific recognition criteria described below must also be met before the revenue is recognised.
Sale of Goods:
Revenue from the sale of goods is recognised when the significant risk and rewards of ownership of
the goods have passed to the buyer, usually on delivery of the goods. Sale is recognised when no
significant uncertainty exists regarding the amount of consideration that will be derived from the sale
of goods. Revenue from the sale of goods is measured at the fair value of the consideration received
or receivable, net of returns and allowances, trade discounts and volume rebates.
Dividend Income:
Dividend is recognised when right to receive is established, which is generally when shareholders
approve the dividend.
Interest Income:
Interest income on financial assets measured at amortised cost is recognised on time proportion basis,
using effective interest method.
xiv. Employee benefits:
Short term employee benefits
All employee benefits payable wholly within 12 months of rendering services are classified as short¬
term employee benefits. Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary
benefits are accrued in the year in which the associated services are rendered by employees. For
employee leave entitlement the expected cost of short-term employee benefits in the form of
compensated absences is recognised in the case of accumulating compensated absences, when the
employees render service that increases their entitlement to future compensated absences; and in the
case of non-accumulating compensated absences, when the absences occur. A liability for bonuses is
recognised where the entity is contractually obliged or where there is constructive obligation based on
past practice.
xv. Income tax
Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognised in
the Statement of Profit and Loss, except to the extent that it relates to the items recognised directly in
equity or in other comprehensive income.
Current Income Tax:
Current tax includes provision for Income Tax computed under special provision (i.e., Minimum
Alternate Tax) or normal provision of Income Tax Act provisions. Current income tax assets and
liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities
on the basis of estimated taxable Income. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Tax:
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the
financial statements and their corresponding tax bases (known as temporary differences). Deferred tax
liabilities are recognised for all temporary differences that are expected to increase taxable profit in the
future. Deferred tax assets are recognised for all temporary differences that are expected to reduce
taxable profit in the future, and any unused tax losses or unused tax credits. Deferred tax assets are
measured at the highest amount that, on the basis of current or estimated future taxable profit, is more
likely than not to be recovered. The net carrying amount of deferred tax assets is reviewed at each
reporting date and is adjusted to reflect the current assessment of future taxable profits. Any
adjustments are recognised in profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of
the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be
settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the
reporting period.
Deferred Tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to the income taxes levied by the same
taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
xvi Earnings per Share:
Basic Earnings per share is computed by dividing the profit from continuing operations and total
profits, both attributable to equity share holders of the Company by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share are computed using the
weighted average number of equity and dilutive equivalent shares outstanding during the period,
except where the results would be anti-dilutive.
xvii.Deferred tax asset and liabilities are classified as non-current assets and liabilities.
xviii .Fair value Measurement:
Company measures financial instruments, such as, derivatives 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, regardless of whether that price is
directly observable or estimated using another valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account the characteristics of asset and liability if market
participants would take those into consideration. Fair value for measurement and / or disclosure
purposes in these financial statements is determined in such basis except for transactions in the scope
of IND AS 2, 17 and 36. Normally at initial recognition, the transaction price is the best evidence of
fair value.
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 in to account a market participants
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 minimising the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the
financial statements are categorised within the fair value hierarchy described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (Unadjusted) market prices and active market for identical assets and liabilities
Level 2 - Valuation techniques for which the lowest level inputs that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level inputs that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by the re
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
xix.Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. The Company recognises a financial asset or financial
liability in its balance sheet only when the entity becomes party to the contractual provisions of the
instrument.
a. Financial assets:
A financial asset inter-alia includes any asset that is cash, equity instrument of another entity and a
financial liability or equity instrument of another entity. The Company recognises a financial asset or
financial liability in its balance sheet only when the entity becomes party to the contractual provisions
of the instrument.
Financial Assets other than investment in subsidiaries
Financial assets of the Company comprise trade receivables. Cash and cash equivalents, bank
balances, investment in equity shares of Companies other than in subsidiaries, investment other than in
equity shares, loans / advances to employees / related parties / others, security deposit, claims
recoverable etc.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of
the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in Statement of Profit and Loss. When transaction price is not the measure of fair value and
fair value is determined using a valuation method that uses data from observable market, the
difference between transaction price and fair value is recognised in Statement of Profit and Loss and in
other cases spread over life of the financial instrument using effective interest method.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in three categories:
• Financial asset measured at amortised cost
• Financial asset at fair value through OCI
• Financial assets at fair value through profit or loss
Financial assets measured at amortised cost
Financial assets are measured at amortised cost if the financial asset is held within a business model
whose objective is to hold financial assets in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows are solely payments of principal
and interest on the principal amount outstanding. These financial assets are amortised using the
effective interest rate (EIR) method, less impairment. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
The EIR amortisation is included in finance income in the statement of profit and loss. The losses
arising from impairment are recognised in the statement of profit and loss in finance costs.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if the financial asset
is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding. At
initial recognition, an irrevocable election is made (on an instrument-by-instrument basis) to designate
investments in equity instruments other than held for trading purpose at FVTOCI. Fair value changes
are recognised in the other comprehensive income (OCI). On derecognition of the financial asset other
than equity instruments, cumulative gain or loss previously recognised in OCI is reclassified to income
statements.
Financial assets at fair value through profit or loss (FVTPL)
Any financial asset that does not meet the criteria for classification as at amortised cost or as financial
assets at fair value through other comprehensive income, is classified as financial assets at fair value
through profit or loss. Further, financial assets at fair value through profit or loss also include financial
assets held for trading and financial assets designated upon initial recognition at fair value through
profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Financial assets at fair value profit or loss are fair valued at
each reporting date with all the changes recognised in the Statement of profit and loss.
De-recognition of financial assets
The Company derecognises a financial asset only when the contractual rights to the cash flows from
the asset expire, or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Company neither transfers nor retains substantially all
the risks and rewards of ownership of the financial asset and continues to control the transferred asset,
the Company recognises its retained interest in the asset and an associated liability for amounts it may
have to pay. If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognise the financial asset and also recognises
a collateralized borrowing for the proceeds receivables.
Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model on the following:
• Financial assets that are measured at amortised cost.
• Financial assets measured at fair value through other comprehensive income (FVTOCI)
• ECL is measured through a loss allowance on a following basis: -
The 12 month expected credit losses (expected credit losses that result from all possible default events
on the financial instruments that are possible within 12 months after the reporting date)
• Full life time expected credit losses (expected credit losses that result from all possible default events
over the life of financial instruments)
The company follows ‘simplified approach’ for recognition of impairment on trade receivables or
contract assets resulting from normal business transactions. The application of simplified approach
does not require the Company to track changes in credit risk. However, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date, from the date of initial recognition.
For recognition of impairment loss on other financial assets, the Company determines whether there
has been a significant increase in the credit risk since initial recognition. If credit risk has increased
significantly, lifetime ECL is provided. For assessing increase in credit risk and impairment loss, the
Company assesses the credit risk characteristics on instrument-by-instrument basis.
ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR.
Impairment loss allowance (or reversal) recognised during the period is recognised as expense/income
in the statement of profit and loss.
b. Financial liabilities and equity instruments:
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and
an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of
direct issue costs.
Financial liabilities
The Company’s financial liabilities include loans and borrowings including book overdraft, trade
payable, accrued expenses and other payables.
Initial Recognition and measurement
All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or
financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities are
recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. Any difference between the proceeds (net of transaction costs) and the
fair value at initial recognition is recognised in the Statement of Profit and Loss or in the “Expenditure
Attributable to Construction” if another standard permits inclusion of such cost in the carrying amount
of an asset over the period of the borrowings using the effective rate of interest.
Subsequent measurement
Subsequent measurement of financial liabilities depends upon the classification as described below:-
Financial Liabilities classified at Amortised Cost:
Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting periods. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are integral part of the Effective
Interest Rate. Interest expense that is not capitalised as part of cost of assets is included as Finance
costs in the Statement of Profit and Loss.
Financial Liabilities at Fair value through profit and loss (FVTPL)
FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial
recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. Financial liabilities have not been designated upon initial
recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation under the liability is
discharged/cancelled/expired. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de recognition of the original liability and
the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the statement of profit and loss.
Offsetting of financial instruments
Financial assets and liabilities are offset and net amount is reported if there is currently enforceable
legal right to offset the recognised amounts and there is intention to settle on a net basis, to realise
assets and settle the liabilities simultaneously.
4. OTHER DISCLOSURES & INFORMATION:
i. The Balance of debtors, creditors, unsecured loans and Loans & Advances are subject to
confirmation. However, the director has certified the respective balances.
ii. Expenses for which supporting evidences are not found are duly certified by the directors.
iii. Previous reporting period’s figure have been regrouped / reclassified wherever necessary to
correspond with the current reporting period’s classifications / disclosure.
iv. Related Party Disclosure: The detail of Related Party disclosure, as required by IND AS-24
"Related Party Disclosure" is as under:
v. Earnings per Share as required by Indian Accounting Standard (IND AS - 33):
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders
of the Company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of Equity shares outstanding during the year plus the
weighted average number of Equity shares that would be issued on conversion of all the dilutive
potential Equity shares into Equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
viii. Micro, Small and Medium Enterprises:
According to the information and explanation provided to us, the Division has no amounts due to
suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) as at
31-03-2025 to the extent such parties have been identified by the management.
ix. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the company for holding any Benami Property.
x. The company is not declared as willful defaulter by any bank or financial Institution or other
lender.
xi. There is no Scheme of Arrangements approved by the Competent Authority in terms of Sections
230 to 237 of the Companies Act, 2013.
xii. The company has no 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 provisions of the Income Tax Act, 1961.)
xiii. The company have not traded or invested in Crypto currency or Virtual Currency during the year.
xiv. The company does not have any transactions with companies struck off.
xv. The company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.
xvi. The company have not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) 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.
xvii. The Company has not provided any loans, secured or unsecured in the nature during the year.
Other than above, the company have not advanced or loaned or invested funds to any other
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 to or on behalf of the Ultimate Beneficiaries.
xviii. The Company has not declared an interim dividend during the financial year under review.
xix. The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company,
hence details regarding CSR activities are not provided.
xxi. The Company has no borrowings from banks or financial institutions on the basis of security of
current assets.
xxii. Section 2(87) of the Companies Act, 2013 regarding number of layers of Companies is not
applicable to the Company.
xxiii. These financial statements are presented in INR and all values are rounded to the nearest Hundred
(INR ‘00), except when otherwise indicated.
The accompanying notes are integral part of these financial statements
As per our report of even date
For KANSARIWALA & CHEVLI,
Chartered Accountants
Shwetkumar Koradiya Hardikbhai Patel
Chairman & Whole Time Director &
Managing Director Chief Financial Officer
DIN: 03489858 PAN: CVJPP3938E
ICAI FRN: 123689W
CA HARIVADAN B. KANSARIWALA
Partner Yash Trivedi Madhuriben Chhatrola
Memb. No. : 032429 Director Company Secretary
UDIN : 25032429BMLYAH5275 DIN: 09281016 ACS - 74197
Place: Surat
Date: 20/05/2025
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