2.12 Provisions and contingent liabilities
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. If effect
of the time value of money is material, provisions are discounted using an appropriate discount 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.
Contingent liabilities are disclosed in the Notes to the financial statements. Contingent liabilities are disclosed for:
i) possible obligations which will be confirmed only by future events not wholly within the control of the Company or
ii) present obligations arising from past events where it is not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
2.13 Employee Benefits
Short-term obligations
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
Post-employment obligations
The Company operates the following post-employment schemes:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident fund.
Defined Benefit Plans
The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses and the return on plan
assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in
other comprehensive income (OCI). Net interest expense (income) on the net defined liability (assets) is computed by
applying the discount rate, used to measure the net defined liability (asset). Net interest expense and other expenses
related to defined benefit plans are recognised in Statement of Profit and Loss. When the benefits of a plan are changed
or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is
recognised immediately in Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a
defined benefit plan when the settlement occurs.
Defined contribution plan
Obligations for contributions to defined contribution plans are expensed as the related service is provided and the
Company will have no legal or constructive obligation to pay further amounts. Prepaid contributions are recognised
as an asset to the extent that a cash refund or a reduction in future payments is available.
Termination benefits
Termination benefits are recognised as an expense when the Company is demonstrably committed, without realistic
possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or
to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for
voluntary redundancies are recognised as an expense if the Company has made an offer encouraging voluntary
redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefit obligations
The Company's current policies permit certain categories of its employees to accumulate and carry forward a portion of
their unutilised compensated absences and utilise them in future periods or receive cash in lieu thereof in accordance
with the terms of such policies.
The Company measures the expected cost of accumulating compensated absences as the additional amount that the
Company incurs as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement
is based on actuarial valuation as at the balance sheet date carried out by a qualified actuary.
2.14 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity
shares outstanding during the year. The weighted average number of equity shares outstanding during the year is
adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse
share split (consolidation of shares).
Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on conversion of all dilutive potential equity shares.
2.15 Operating cycle
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their
realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current and non-current.
2.16 Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank balances and any deposits with original maturities of three months
or less (that are readily convertible to known amounts of cash and cash equivalents and subject to an insignificant risk of
changes in value). However, for the purpose of the statement of cash flows, in addition to above items, any bank
overdrafts / cash credits that are integral part of the Company's cash management, are also included as a component of
cash and cash equivalents.
Terms / rights, preferences and restrictions attached to equity shares:
The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays
dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders.
None of the above shares are reserved for issue under options/contract/commitments for sale of shares or disinvestment.
Shares alloted, as fully paid up, pursuant to contracts without payment being effected in cash / bonus shares / bought back /forfeited/ call unpaid in previous five years-NIL.
The company has not received any intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises
Development Act,2006.
The above information regarding Micro, Small and medium enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company. This has been relied upon by the Auditor.
24 In the opinion of the Board the current assets, loans and advances, balances of which are subject to confirmation by respective parties
and are outstanding for long time, if realized in the ordinary course of business have value on realization at least to the amount at which
they are stated in the Balance Sheet. The provision for all known liabilities, subject to confirmation by respective parties are adequate
and not in excess of amount reasonably necessary.
25 In view of BIFR approval of Revival scheme dated 07.04.2011, Company has neither paid nor provided interest liability on unpaid
statutory dues and liability of interest thereon has not also been ascertained.
26 The main business of the Company is to sale solar systems and all other activities of the Company revolve around the main business. As
such there are no reportable segments, as per the IND AS 108 "Operating Segments" specified under section 133 of the Companies
Act,2013.
32 OTHER STATUTORY INFORMATION
(i) There are no transactions which were not recorded in books of accounts and have been surrendered or disclosed as income during the
year in the tax assessments under Income tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax
Act, 1961).
(ii) During the year, the Company has not executed any transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.
(iii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
(iv) As on 31st March 2025 there is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and the
funds have been utilised for the specific purpose for which it were raised.
(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(vi) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(vii) The Company is in compliance with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
(viii) The Company has 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.
(ix) The Company has 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
33 AUTHORISATION OF FINANCIAL STATEMENTS
The financial statements for the year ended 31st March 2025 were approved by the Board of Directors on 30th May 2025.
35 FINANCIAL RISK MANAGEMENT
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Market risk; and
- Liquidity risk
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The Board of Directors along with the top management are responsible for developing and monitoring the Company's risk
management policies.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits
and controls and to monitor risks and adherence to limits. Risk management policies and systems are monitored & reviewed periodically to
reflect changes in market conditions and the Company's activities. The Company, through its training, standards and procedures, aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The key risks and
mitigating actions are placed before management of the Company who then evaluates and takes the necessary corrective action.
[A] Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instruments fails to meet its contractual
obligations, and arises principally from the Company's receivables from customers, cash and cash equivalents, deposits with banks and other
financial instruments measured at amortised cost.
The carrying amounts of financial assets represents maximum credit risk exposure. Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the
normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of
incurred losses in respect of trade and other receivables and deposits.
However, the credit risk arising on cash and cash equivalents and bank deposits is limited as the Company invest in deposits with banks and
financial institution with credit ratings and strong repayment capacity.
Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the
customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk
assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business.
Expected credit loss assessment
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss
(e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected
credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic
indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of
minimal credit losses to continue.
Cash and cash equivalent
As at the year end, the Company held cash and cash equivalents of Rs. 1,07,703/- (31.03.2024 - Rs. 50,28,409/-). The cash and cash
equivalents are held with banks with good credit rating.
Other bank balances
Other bank balances are held with banks with good credit rating.
Investments
The Company limits its exposure to credit risk by generally investing in fixed deposits of counterparties that have a good credit rating. The
Company does not expect any losses from non-performance by these counter-parties.
Other financial assets
Other financial assets are neither past due nor impaired.
[B] Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are
settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. The
Company has obtained fund and non-fund based working capital lines from various banks. 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 with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
[C] Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and equity prices - will affect the Company's income or
the value of its holdings of financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk.
Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market
risk management is to avoid excessive exposure in our foreign currency revenues and costs.
The Company's main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest
rate risk. During the year ended March 31, 2025 and March 31, 2024 the Company's borrowings at variable rate were mainly denominated in
Indian rupees.
(a) Interest rate risk exposure
The exposure of the Company's borrowing to interest rate changes at the end of the reporting period are as follows:
The management assessed that carrying values of financial assets i.e. trade receivable, cash and cash equivalents, loans, trade payables and
other Financial assets and liabilities are reasonable approximations of their fair values.
(B) FAIR VALUE HEIRARCHY
Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm's length
transaction. The Company has made certain judgements and estimates 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 Company as classified the financial instruments
into three levels prescribed under the accounting standard. An explanation of each level is as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes mutual funds and listed equity
instruments that have quoted price. The mutual funds are valued using the closing NAV.
Level 2: Level 2 hierarchy includes financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
(C) VALUATION TECHNIQUES
Specific valuation techniques used to value financial instruments include
- the use of quoted market prices for mutual funds
- the use of quoted market prices for equity instruments
There are no items in the financial instruments, which required level 3 valuation.
36 CAPITAL MANAGEMENT
Equity share capital and other equity are considered for the purpose of Company's capital management.
The Company's objectives when managing capital are to (a) maximise shareholder value and provide benefits to other stakeholders and (b)
maintain an optimal capital structure to reduce the cost of capital.
For the purposes of the Company's capital management, capital includes issued capital, securities premium and all other equity reserves
attributable to the equity holders.
In terms of our report attached. For and on behalf of the Board of Directors
For DGMS & Co.
Chartered Accountants
FRN No. 112187W
Sd/- Sd/- Sd/-
Atul B. Doshi S. Venkata Subramanian Rajalakshmi Iyar
Partner Managing Director Director
Mem No.: 102585 DIN: 00107561 DIN: 00107754
Sd/- Sd/-
Place : Mumbai Harishchandra B. Naukudkar Pundalik Davane
Date : 30/05/2025 CEO CFO
Sd/-
Gaurav Kaushik
Company Secretary
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