2.6. Provisions, contingent liabilities and contingent assets
Contingent liability:
A possible obligation that arises from past events and 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 are disclosed as contingent liability and not provided for. Such
liability is not disclosed if the possibility of outflow of resources is
remote.
Contingent assets:
A contingent asset is a possible asset that arises from past events and
whose existence 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. Contingent assets are not recognised and
disclosed only when an inflow of economic benefits is probable.
Provisions:
A provision is recognized when as a result of a past event, the Company
has a present obligation whether legal or constructive that can be
estimated reliably and it is probable that an outflow of economic benefits
will be required to settle the obligation. If the obligation is expected to be
settled more than 12 months after the end of reporting date or has no
definite settlement date, the provision is recorded as non-current
liabilities after giving effect for time value of money, if material. Where
discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost.
2.7. Revenue Recognisation
a) Revenue from the sale of goods is recognised when significant risks and
rewards in respect of ownership of the goods are transferred to the
customer, as per the terms of the order. The company has shown
separately in the expenses as the revenues from the operations are stated
at gross amount as per the Requirement of Ind AS 18 “Revenue”. Further,
the amounts collected on behalf of third parties such as government
authorities for VAT, Service Tax and GST are excluded from the revenue
since the same do not result in increase in Equity.
b) Interest Income is recognised on time proportion basis.
2.8. Income taxes
Income tax expense comprises current and deferred tax expense. Income
tax expenses are recognized in statement of profit and loss, except when
they relate to items recognized in other comprehensive income or directly
in equity, in which case, income tax expenses are also recognized in other
comprehensive income or directly in equity respectively.
Current tax is the tax payable on the taxable profit for the year, using tax
rates enacted or substantively enacted by the end of reporting period by
the governing taxation laws, and any adjustment to tax payable in respect
of previous periods. Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to the taxation
authorities. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.
Deferred taxes arising from deductible and taxable temporary differences
between the tax base of assets and liabilities and their carrying amount in
the financial statements are recognized using substantively enacted tax
rates and laws expected to apply to taxable income in the years in which
the temporary differences are expected to be received or settled.
Deferred tax asset are recognized only to the extent that it is probable
that future taxable profit will be available against which the deductible
temporary differences can be utilized. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred income tax assets to be utilized.
2.9. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit for the
period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
b) For the purpose of calculating diluted earnings per share, the net profit
for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares, if any.
2.10. Borrowing cost
Borrowing costs directly attributable to the acquisition, construction
or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or
sale, are added to the cost of these assets, until such time as the assets
are substantially ready for their intended use or sale.
All other borrowing costs are recognised in statement of profit and loss
in the period in which they are incurred.
2.11. Segment Reporting
The company has only one preliminary reportable segment i.e.
Professional/Consultancy Services in Multimedia & Advertisement
Space or Time hence there is no separate reportable segments as
required in Ind AS 108 issued by ICAI.
2.12. Depreciation
Depreciation on tangible fixed assets is provided using the WDV
Method based on the useful life of the assets as estimated by the
management and is charged to the Statement of Profit and Loss as per
the requirement of Schedule II of the Companies Act, 2013. In case of
additions or deletions during the year, depreciation is computed from
the month in which such assets are put to use and up to previous month
of sale or disposal, as the case may be.
2.13. Foreign currency Transactions
Foreign currency transactions are recorded at the exchange rate
prevailing at the date of transactions. Exchange difference arising on
settlement of transactions is recognised as income or expense in the
year in which they arise.
Monetary assets and liabilities related to foreign currency transactions
remaining unsettled at the end of the year are restated at the year-end
rate and difference in translations and unrealised gains / (losses) on
foreign currency transactions are recognised in the statement of profit
& loss.
The premium or discount arising at the inception of forward exchange
contracts is amortised as expense or income over the life of the
contract. Exchange differences on such contracts are recognised in the
statement of profit and loss in the year in which the exchange rates
change. Any profit or loss arising on cancellation or renewal of forward
exchange contract is recognised as income or as expense for the year.
20. Disclosure of Interest in other Entities:
As per Ind AS 112 - ' Disclosure of Interest in other Entities', as notified by the
Rules, the disclosures of transactions with the related parties as defined in the
accounting standard are given below:
A. Related parties with whom transactions have taken place during the year
Key management personnel
B. Transactions between the Company and related parties and the status of
outstanding balances as at March 31, 2025:
C. Disclosure of significant transactions with related parties (Rs.) 261083 is given in
note No.39.
0. a) In opinion of the directors, contingent liability not provided is Rs. Nil.
(Nil)
b) Estimated amount of contracts remaining to be executed on capital
account and not provided for: Rs. Nil (Nil).
21. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long Term
and Short Term Loans & Advances, In-operative bank accounts, Other
Current and Other Non Current Assets and Provisions are subject to the
confirmation of the parties concerned. Wherever confirmation of the
parties for the amounts due to them / amounts due from them as per books
of accounts are not received, necessary adjustments, if any, will be made
when the accounts are reconciled / settled.
22. In the absence of information regarding outstanding dues of MICRO or Small
Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise
Development Act, the Company has not disclosed the same as required by
Schedule III to the Companies Act.
23. Wherever no vouchers and documentary evidences were made available for
our verification, we have relied on the authentication given by
management of the company.
24. Figures have been rounded off to the nearest rupee wherever required.
As per our report of even date
For, A. L. Thakkar & Co. For and on behalf of the Board
Chartered Accountants NIRBHAY COLOURS INDIA
FRN. No. 120116W LIMITED
Sanjeev V Shah Raghvendra Kulkarni
(Partner) Managing Director
M. No.: 042264 DIN: 06970323
UDIN :25042264BMJGCO2695
Place: Ahmedabad
Date: 30/05/2025 Sonal D Gandhi
Director & CFO
DIN:07351479
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