1. The debit and credit balances of the Parties are subject to confirmation from them.
2. As per the information available with the Company, there are no overdue principal and/or interest amounts payable to the Suppliers under the Micro Small and Medium Enterprises Development Act,2006 at the close of the financial year.
3. Contingent liabilities not provided for in the accounts: NIL
4. In the opinion of the Board the Current & Non-Current Assets are approximately of the value stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of amounts reasonably necessary. No personal expenses have been charged to revenue account.
5. Disclosure of Segment Reporting (Ind AS 108):
The business segment has been considered as the primary segment. The Company is in primarily in the business trading in segment of fruits & vegetable products. There are no export sales.
6. Disclosure of Related party (Ind AS 24):
a) Relationship
(i) Subsidiary Company None
(ii) Associate Concern None
(iii) Key Person (Director) 1. Mr. Kumar V. Shah - Managing Director
(iv) Relative of Key Person Mr. Mitesh K. Shah-Son of Kumar V. Shah
b) Transaction
(i) Key Person (Director) 1. Remuneration
K.V.Shah - Rs.12,00,000/-( P. Y. Rs.9,22,500/-)
2. Unsecured Loan received as at year end.
K.V.Shah - Rs.68,53,260/-(P.Y.Rs.82,04,660/-)
(ii) Relative of Key Person 1. Remuneration
Mitesh K. Shah Rs. 2,00,000/- (PY Rs. NIL)
2. Salary Payable Rs. 1,35.000/- (PYRs. NIL)
7. Disclosure of Taxes on income (Ind AS 12):
No recognition of Net Deferred Tax Assets for significant losses available for set off under the provisions of Income Tax Act, ! 1961 have been made in the Account on prudence basis.
No provision for current tax has been made in the financial statements due to carried forward losses available for set off under the provisions of Income Tax Act, 1961.
8. Disclosure of Leases (ind AS 17):
The Company as a Lessee has taken a premises at Mumbai on operating lease for 11 months. The lease rent for the year
Rs. 560000 (PY Rs. 132000) has been recognized in the profit & loss account.. YV
12. Fair Value Measurements
i. Financial Instruments by Category
The management assessed that the carrying amount of the cash and cash equivalent, trade receivables, trade payables, borrowings and other financial assets and liabilities at amortised cost as disclosed in the financial statements approximate their fair value largely due to the contractual payment terms and short term maturities of these instruments.
ii. Fair Value Hierarchy I
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:
iii. Fair value measurement
Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds 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 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity shares.
There have been no transfers among Level 1, Level 2 and Level 3 during the period
iv. Valuation technique used to determine fair value
The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the management has considered their carrying amount as fair value.
v. Valuation processes
The finance department performs the valuations of financial assets and liabilities required for financial reporting purposes, which reports to the audit committee. Discussions of valuation processes and results are held between them regularly in line with the company's reporting periods.
8 Financial Risk Management
The company's activity expose it to market risk, liquidity risk and credit risk. The senior Management of the Company overseas the management of these risks.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market priced with risk associated with commodity price risk. The Management monitors the Market prices on regular basis to mitigate the Market risk.
(B) Liquidity risk
Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated, with financial liabilities that are settled by delivering cash or other financial assets.. The Company has liabilities of Trade payable and other payable excluding borrowing from a Director which are expected to mature within 12 months as on 31 st March,2018 Rs92,67,687/- against which the Company has current assets to the tune of Rs.1,81,22,591/- and hence the management monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.
(A) Credit risk
Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.
i. Credit risk management
To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into account factors such as credit track record in the market and past dealings with the company for extension of credit to Customer. Company monitors the payment track record of the customers, restrict credit limit, credit rating etc. Concentrations of credit risk are limited as majority of transactions are done on cash on delivery basis which mitigate the credit risk.
ii. Provision for expected credit losses-Trade Receivables
The company follows expected credit loss method ‘for recognition of loss allowance on Trade receivables. The Trade receivables of the Company are less than one year and hence no provision is required as the Management is estimating making provision @ 100% if the invoice is unrealized for more than 2 years from its due date.
9. Capital Management:
For the purpose of the company’s capital management, capital includes issued equity capital,, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company is not exposed to any externally imposed capital requirements. The Net worth of the Company as on 31st March,2018 is positive to the extent of Rs. 35,75,113/-,
10. The provisions of PF, ESI .Bonus and Gratuity Acts are not applicable to the Company as there are no employees covered under the said Acts.
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