14. Provisions
• The Company recognizes a provision when there is a present legal or constructive obligation as result of a past
event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation.
• 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.
15. Contingent Liabilities and Contingent Assets
• A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation
that the likelihood of outflow of resources is remote, no provision or disclosure is made.
• Contingent Assets are neither recognized nor disclosed in the financial statements.
16. Earnings Per share
Basic Earnings per Share
Basic earnings per share is calculated by dividing:
The profit attributable to owners of the Company by the weighted average number of equity shares outstanding during
the financial year, adjusted for bonus elements in equity shares issued during the year.
Diluted Earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
17. New Standards / Amendments notified but not yet effective:
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March 2025, MCA has not
notified any new standards or amendments to the existing standards which are applicable to the Company.
18. Rounding of Amounts
All amounts disclosed in the financial statements and notes have been disclosed in Rupees in Lakhs rounded off to two
decimals as per the requirement of Schedule III, unless otherwise stated.
4. Segment Reporting:
The operation of the Company represents only one business segment, viz. ‘Trading in Textiles'. Accordingly, all earnings,
assets and liabilities relate to this activity only and there is no separate Segment.
5. Financial risk management
Company's activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which
the entity is exposed to and how the entity manages the risk and its impact on the financial statements
(i) Credit Risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss
to the Company. The credit risk arises from trade receivables, security deposits, cash and cash equivalents and
deposits with banks.
Trade receivables
The company supplies yarn / fabric to customers. Concentrations of credit risk with respect to trade receivables
are limited as majority credit sales are made to high credit worthy entities. All trade receivables are reviewed and
assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of
default, is that credit risk is low.
For trade receivables, except for specifically identified cases, Company follows a simplified approach where
provision is made as per the ageing buckets which are designed based on historical facts and patterns.
(ii) Liquidity Risk
Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial
liabilities in time. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions. Management monitors rolling forecasts of the Company's liquidity position
and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company's
financial liabilities into relevant maturity groupings based on their contractual maturities.
‘(iii) Market Risk
Foreign Exchange Risk
Company is not exposed to foreign exchange risk presently.
Interest Rate Risk:
The Company's investments in fixed deposits with banks are for short durations, and therefore do not expose the
Company to significant interest rates risk.
Investment Risk
The Company's investment in mutual funds is spread across various quality liquid and arbitrage funds and the
management is monitoring their performance on a regular basis and therefore, the risk on this account if any is
limited.
6. Earnings per Share
Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average
number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per
equity share are as stated below:
7. OTHER STATUTORY INFORMATION: (to the extent applicable)
(i) The Company has not obtained any term loan from banks or any other lender. The Company has not borrowed
from banks or financial institutions on the basis of security of current assets.
(ii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties, either severally or jointly with any other person.
(iii) The Company has not been declared a willful defaulter by any bank or other lender.
(iv) The Company does not have any Benami property, where any proceedings has been initiated or pending against
the Company for holding any benami property.
(v) The Company does not have any transaction with struck off companies.
(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(vii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(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 to or on behalf of the Ultimate Beneficiaries.
(x) The Company does not have any 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 provision of the Income Tax Act, 1961).
(xi) The Company is not covered under Section 135 of the Companies Act, 2013 with regard to CSR activities.
8 Financial instruments
A Accounting classification and fair values:
Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities
not measured at fair value if the carrying amount is a reasonable approximation of fair value
Fair value hierarchy
Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This
included listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are
valued using the closing NAV.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
B Measurement of fair values
Valuation techniques and significant unobservable inputs
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current
transaction between willing parties. The following methods and assumptions were used to estimate the fair value.
1 The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables,
etc. because their carrying amounts are a reasonable approximation of fair value.
2. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.
3. The management considers that the carrying amount of financial liabilities carried as amortised cost approximates
their fair value
(*) Average = (opening closing)/2.
(**) Reasons for variation.
(i) The current ratio has improved due to increase in cash and cash equivalents during the year on disposal of shares
of Strata Geosystems (India) Private Limited.
(ii) The Company has not borrowed any funds and debts was Rs. NIL in both the years
(iii) Return on Equity has decreased as there was no dividend income and there was no sale of investment property as
was the case in the previous year. Profit on sale of shares of Strata Geosystems (India) Private Limited has been
routed through OCI.
(iv) The Company did not have any inventory at the end of the financial year or previous year
(v) Trade receivable ratio with revenue from operations increased due to an increase in the amount of sales while
receivable at the end of the financial year is NIL.
(vi) Trade payable ratio is not applicable since there were no trade payables at the end of financial year or previous
year.
(vii) Net profit ratio and return on capital employed decreased due to profit on sale of shares being shown in OCI.
10. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current
year's presentation.
As per our report of even date For and on behalf of Board of Directors
JMT & Associates
Chartered Accountants Narendra Dalmia Ashok M Bhawnani
Firm Registration No. 104167W Managing Director (DIN 00071559) Director (DIN 00058344)
Amar Bafna Kusshal Ambbala Chaitanya Kulkarni
Partner - Membership No. 048639 Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date: 17th April 2025 Date: 17th April 2025
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