2.14 Provision, Contingent Liabilities and Contingent Assets:
A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 recognized as a finance cost.Contingent Assets and Contingent Liabilities are not recognized in the financial statements.
c. Terms/rights attached to equity shares
The Company has only one class of equity shares having par value of Rs. 10. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.
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 distributions will be in proportion to the number of equity shares held by shareholder.
29 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Market risk
(a) Interest rate risk;
(b) Commodity risk;
(ii) Credit risk and ;
(iii) Liquidity risk
Risk management framework
The Company’s activities expose it to a variety of financial risks, including market risk. The Company’s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company’s risk management assessment policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.
(i) Market risk
Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company's income or the value of its holdings of its financial instruments . The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the returns.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to market risk for changes in interest rates relates to borrowings from banks and others.
(ii) 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 arises principally from the company's receivables from customer. The Company establishes an allowance for doubtful debts, impairement and expected credit loss that represents it estimate an allowance for doubtful debts, impairment and expected credit loss that represents its estimate on epected credit loss.
A. 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 has an influence on credit risk assessment. Credit risk managed through credit approvals ,establishing credit limits and continuously monitoring the creditor thiness of customers to which the Company grants credit terms in the normal course of business.
However, the company doesnot expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures.
B. Cash and cash equivalents
The Company holds cash and cash equivalents with creditworthy banks of ?285.90 thousands. The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.
(iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has been taking measures to ensure that the Company’s cash flow from business borrowing is sufficient to meet the cash requirements for the Company’s operations. The Company managing its liquidity needs by monitoring forecasted cash inflows and outflows in day to day business. Liquidity needs are monitor endonvarious time bands, on a day to day and week to week basis, as well as on the basis of a rolling 30 day projections. Net cash requirements are compared to available working capital facilities in order to determine head room or any shortfalls. Presently company’s objective is to maintain sufficient cash to meet its operational liquidity requirements.
The below table summaries the maturity profile of the Company’s financial liability____
Particulars Carrying amount Contractual cash outflow
As at 31st March Total 1 year or less 1 -2 year 2-5 years > 5 years
Trade payable _0.71__0.71 _0.71
Other financial _7.40 _7.40 7.40
Other current _8.90 _8.90 8.90
Particulars Carrying amount Contractual cash outflow
As at 31st March Total 1 year or less 1 -2 year 2-5 years > 5 years
Trade payable _-__-_ _-__-__-__-_
Other financial _-__-_ 0.00 0.00 0.00 0.00
Other current _3.59 _3.59 3.59 0.00 0.00 0.00
30 The Company has not experienced any significant impact due to Covid-19 and as such on its liquidity position; the Company continues to be well geared to meet its funding needs. The Management believes that there will be no significant impact of this outbreak in continuing operations, financial position and in ability to continue as a going concern. The Company shall also continue to closely monitor any material changes arising of future economic conditions and potential impact on its business.
31 The financial statements were approved for issue by the Board of Directors on 30th May, 2023.
32 The Company did not have any long- term contracts including derivative contracts for which there were any material foreseeable losses.
33 There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
34 Previous year’s figures have been re-arranged or re- grouped wherever consider necessary.
35 Figures have been rounded off to the nearest thousands of rupees.
36 Figures in brackets indicate negative (-) figures.
37 The company does not have transactions with the companies struck off under section 248 of Companies Act ,2013.
Signed for the purpose of Identification.
For RKJS & Co LLP For and on behalf of the Board of Directors
Chartered Accountants CIN: U17291DL2009PLC196375
ICAI LLPIN : 323001E/E300058
Shalvi Sagar Patwa Sagar Amar Patwa
Managing Director Director
Narendra Kumar Patil DIN: 08869050 DIN : 06818710
Partner
Membership No.: 056113 Ayush Dholani
UDIN: Company Secretary
PAN : FXKPD3273A
Place : Mumbai Place : Mumbai
Date: 30 May 2023 Date: 30 May 2023
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