(i) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks
and uncertainties surrounding the obligation. When a provision is measured using the cash
flows estimated to settle the present obligation, its carrying amount is the present value of
those cash flows (when the effect of the time value of money is material). When
discounting is used, the increase in provision due to the passage of time is recognised as a
finance cost.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain
that reimbursement will be received and the amount of the receivable can be measured
reliably.
Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount
cannot be made.
(j) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue
is reduced for estimated rebates and similar allowances.
Dividend and interest income
Dividend income from investments is recognized when the Company's right to receive
payment has been established.
Interest income from a financial asset is recognized using the effective interest rate (EIR),
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.
(k) Cost recognition
Costs and expenses are recognized when incurred and are classified according to their
nature.
(l) Employee Benefits
Short-term employee benefits are recognized as an expense at the undiscounted amount in
the statement of profit and loss of the year in which the related service is rendered.
Post-employment and other long term benefits
The provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952
and Payment of Gratuity Act, 1972 are not applicable to the Company.
(m) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding
during the period and for all periods presented is adjusted for events, such as bonus issue,
bonus element in a rights issue and shares split that have changed the number of equity
shares outstanding, without a corresponding change in resources.
For the purpose of calculating Diluted Earnings per share, the net profit or loss for the
period attributable to the equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all dilutive potential equity
shares.
(n) Taxation
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from
profit before tax as reported in the statement of profit and loss because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Company’s current tax is calculated using tax rates that have been enacted
by the end of the reporting period.
Nature and purpose of reserves
a) General Reserve
Mandatory transfer to general reserve is not required under the Companies Act, 2013. There is no
movement in General Reserve during the current and previous year.
b) Surplus in the statement of Profit and loss
This represents the profits that the Company has earned till date, less any transfer to general reserve,
dividends or other distributions paid to shareholders.
c) Equity instruments through other comprehensive income
The fair value change of the equity instruments measured at fair value through other comprehensive
income is recognised in equity instruments through other omprehensive income. On disposal, the
cumulative fair value changes on the said instruments will be reclassified to free reserves.
22 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. Financial assets and financial liabilities such as cash and cash equivalents and other
bank balances of which the carrying amount is a reasonable approximation of fair value due to their short term nature,
are disclosed at carrying value.
B Fair Value Hierarchy
The fair value of financial instruments as referred to in note (A) above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level
3 measurements).
Level 1 : quoted prices (unadjusted) in active market for identical assets or liabilities
Level 2 : inputs other than quoted prices included in 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 asset or liability that are not based on observable market data (unobservable inputs)
C Measurement of Fair Values
Valuation techniques and significant unobservable inputs
The following tables show the valuation technique used in measuring Level 3 items for the period ended 31st March,
2024 and March 31, 2023 using significant unobservable inputs used.
23 Financial risk management
The Company is only exposed to credit risk. Company has limited type of financial instruments and therefore is not
exposed much to the risks attached to the financial instruments. The Company's Board of Directors has overall
responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the
sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial
statements.
i) Market Risk
Company does not deal in transactions in currency other than its functional currency therefore it is not exposed to
foreign currency exchange risk. Additionally, Company does not have exposures to interest bearing securities.
ii) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company's credit risk arises principally from cash & cash equivalents. The credit risk on liquid funds/
balances with banks is limited because the counterparties are banks or financial institutions with high credit-ratings
assigned by credit-rating agencies. As at balance sheet date, the Company does not have significant concentration of
credit risk.
iii) Liquidity risk management
The Company does not have any borrowings, hence it is not exposed to liquidity risk.
24 Capital Risk Management
The Company manages its capital to ensure that Company will be able to continue as going concern while maximizing
the return through the optimization of the debt and equity balance.
The Company's capital requirement is mainly to fund its working capital requirements. The principal source of funding
for the Company was internal accounts fund operations. The Company is not subject to any externally imposed capital
requirements.
25 Assets given on Lease :
The Company has given factory building on lease. The total rent receipts recognized in the statement of profit and loss is
Rs. NIL (previous year Rs. In Lakhs 2.40). The total future minimum lease receipts is given below:
28 The Company has a single segment and hence there are no separate reportable segments under Indian Accounting
Standard (Ind AS) 108 'Operating Segments'.
29 Dividend
The Board of Directors of the Company have not recommended any dividend for the financial year ended 31st
March, 2024.
30 Subsequent Events
There are no significant subsequent events that would require adjustments or disclosures in the financial statements
as on the balance sheet date.
31 The financial statements were authorised for issue by the Board of Directors on Wednesday 22nd May, 2024.
a) Current Ration: Current Assets / Current Liabilities
Numerator: Current Asset
Denominator: Current Liabilities
Explanation for variance: Cash and cash equivalents has gone up in current year but mutual funds have been redeemed
hence current assets have reduced as compared to previous year. Current Liabilities has increased in current year as
compared to previous year.
Return on Equity Ratio: Net Loss after taxes / Average
Shareholders Equity
Numerator: Net Loss After Taxes
Denominator: Average Shareholder Equity
c) Net capital turnover ratio
Numerator: Total Income
Denominator: Working Capital
Explanation for variance: Since total income has decreased as compared to previous year and working capital has also
decreased in current year as compared to previous year, net capital turnover ratio has decreased.
d) Net Loss Ratio: Net Loss After Taxes / Total Income
Numerator: Net Loss After Taxes
Denominator: Total Income
Explanation for variance: Since net loss has increased in current year as compared to previous year and total income has
also decreased in current year net loss ratio has increased.
e) Return on Capital Employed Ratio:
Numerator: Net Loss before Taxes
Denominator: Tangible Net Worth
f) Return on Investment
Numerator: Income generated from investments
Denominator: Time weighted average investments
33 Other Matters:
Information with regard to other matters specified in Schedule III to the Act (pursuant to notification G.S.R. (E) issued by
Ministry of Corporate affairs dated March 24, 2021) is either nil or not applicable to the Company for the year.
As per our report attached For and on behalf of the Board of Directors
For KALYANIWALLA & MISTRY LLP Oseaspre Consultants Limited
Chartered Accountants CIN: L74140MH1982PLC027652
Firm Regn No. 104607W/W100166
Sd/- Sd/- Sd/-
Jamshed K. Udwadia Mr. J. C. Bham Mr. S. Raja
Partner Director Director
M.No. 124658 DIN : 02806038 DIN : 03149272
Date: 22nd May, 2024
Place: Mumbai Sd/-
Mr. Ganesh S. Pardeshi
Company Secretary / Chief Financial Officer
Date: 22nd May, 2024
Place: Mumbai
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