16.11 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of
economic benefits 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 some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the 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.
Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts.
Contingent assets are neither recognized nor disclosed in the financial statements.
16.12 Investments
Investments are classified into current and long-term investments. Investments that are readily realizable and intended to be held for not more than a
year from the date on which such investments are made are classified as current investments. All other investments are classified as long term
investments.
Current investments are carried at lower of cost and fair value (net asset value in case of units of mutual fund) determined on an individual investment
(category wise) basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made
to recognize a decline, other than temporary, on an individual investment basis.
Long term investments which are expected to be realized within twelve months from the balance sheet date are presented under 'current
investments' as 'current portion of long term investments' in accordance with the current / non-current classification of investments as per
Schedule III of the Companies Act, 2013.
The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an
investment is acquired in exchange, or part exchange, for another asset, the acquisition cost of the investment is determined by reference to the fair
value of the asset given up or fair value of the investment acquired whichever is more clearly evident.
Investment transactions are accounted for on a trade date basis. In determining the holding cost of investments and the gain or loss on sale of
investments, the 'weighted average cost' method is followed.
16.13 Event occurring after the Balance Sheet Date
No significant events which could affect the financial position as on 31st March 2024, to a material extent have been reported by the
management, after the Balance Sheet date till the signing the report.
16.14 Prior period Items
Prior period expenses/income is accounted for under respective heads. Material items, if any, are disclosed separately by way of note.
16.16 Financial derivatives and Hedging Transaction
In respect of derivative contracts, premium paid and gains/losses on settlement are recognized in the Profit and Loss account except in case where they
relate to the acquisition or construction of fixed assets, in which case, they are adjusted to the carrying cost of such assets.
16.16 Earnings Per Share
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period adjusted for treasury
shares held. Diluted earnings per share is computed using the weighted-average number of equity and dilutive equivalent shares outstanding
during the period, using the treasury stock method for options and warrants, except where the results would be anti-dilutive.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any splits and bonus
shares issues including for change effected prior to the approval of the financial statements by the Board of Directors.
16.17 Segment reporting
Accounting standards interpretation (ASI) 20 dated 14-02-2004, issued by the accounting standard board of ICAI, on AS-17, Segment reporting clarifies
that in case by applying the definition of "Business Segment and Geographical Segment" given in AS-17, it is concluded that there is neither more than
one Business Segment nor more than one Geographical segment, Segment information as per AS-17 is not required to be disclosed.
16.18 Financial Instruments
a) Non-derivative financial instruments:
Non derivative financial instruments consist of:
• financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other
advances, investments in equity and debt securities and eligible current and non- current assets.
Financial assets are derecognised when substantial risks and rewards of ownership the financial asset have been transferred. In cases where substantial
risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognised only when the Company
has not retained control over the financial asset.
• financial liabilities, which include long and short- term loans and borrowings, bank overdrafts, trade payables, eligible current and non¬
current liabilities.
• Non- derivative financial instruments are recognised initially at fair value.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below:
A. Cash and cash equivalents:
The Company's cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any
time, without prior notice or penalty on the principal.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of
outstanding bank overdrafts that are repayable on demand and are considered part of the Company's cash management system. In the balance sheet,
bank overdrafts are presented under borrowings within current liabilities.
B. Other financial assets:
Other financial assets are non-derivative financial assets with fixed or determinable payments that are not quoted - in an active market. They are
presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. These
are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment losses. These
comprise trade receivables, unbilled revenues, cash and cash equivalents and other assets.
C. Trade and other Payables:
Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest method. For these
financial instruments, the carrying amounts approximate fair value due to the short-term maturity of these instruments.
b) De-recognition of financial instruments:
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial
asset and the transfer qualifies for de-recognition under Ind AS 109. If the Company retains substantially all the risks and rewards of a transferred
financial asset, the Company continues to recognise the financial asset and also recognises a borrowing for the proceeds received. A financial liability (or
a part of a financial liability) is derecognised from the Company's balance sheet when the obligation specified in the contract is discharged or cancelled
or expires.
16.19 Equity
a) Share capital and share premium:
The authorised share capital of the Company as of March 31, 2024 is Rs.6,00,00,000 divided into 59,40,000 equity shares of Rs. 10 each, and 60,000
preference shares of Rs.10 each. Par value of the equity shares is recorded as share capital. Every holder of the equity shares, as reflected in the
records of the Company as of the date of the shareholder meeting shall have one vote in respect of each share held for all matters submitted to vote
in the shareholder meeting.
b) Retained earnings:
Retained earnings comprises of the Company's undistributed earnings after taxes.
c) Other comprehensive income:
Changes in the fair value of financial instruments measured at fair value through other comprehensive income and actuarial gains and losses on defined
benefit plans are recognised in other comprehensive income (net of taxes), and presented within equity as other comprehensive income.
d) Share Forfeiture Reserve:
Share Forfeiture Reserve amounting to Rs.57,78,000 (March 31, 2024: Rs.57,78,000) is not freely available for distribution.
Notes:
i. The Company is not having any debt and hence, debt equity ratio and debt service coverage ratios are not applicable to the Company.
ii. The Company is not having any Credit Sales and hence, Trade Receivable Turnover,Net Capital Turnover and Net Profit ratio are not applicable to the
Company.
iii. The Company is not having any Credit Purchases and hence, Trade Payable Turnover are not applicable to the Company.
iv. The Company is not having any sales and hence, Net Capital Turnover ratio and Net Profit Ratio is not applicable to the Company.
v. The Company is not having any Investment and hence, Return on investment is not applicable to the Company.
24 Additional information as required by Para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclose is either Nil
or Not Applicable or complied with.
25 During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company. Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
26 Previous year's figures have been re-grouped / re-classified where necessary to conform to the current year’s classification.
For Shambhu Gupta & Co. For, Tirth Plastic Limited
FRN No.:- 007234C
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
CA. Gorang Baheti Varis Doshi Gunjan Doshi CS Nisha Kumari Vijay
Partner (Managing (Director) (Company
Director) Secretary)
Membership No. 426813 DIN:2963528 DIN: 02933336 M No. 49462
UDIN: 24426813BKASJI8289
Place: Ahmedabad
Date: 8th May,2024
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