2.11 Provisions and contingent liabilities
Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the
amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present
obligation at the Balance sheet date.
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 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 or a reliable estimate of the amount cannot be made.
2.12 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and short-term investments with an original maturity of three
months or less.
2.13 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
(a) Financial assets
(i) Initial recognition and measurement
At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
(ii) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
a) at amortized cost; or
b) at fair value through other comprehensive income; or
c) at fair value through profit or loss.
The classification depends on the entity’s business model for managing the financial assets and the contractual terms of
the cash flows.
Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included
in finance income using the effective interest rate method (EIR).
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and
for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are
measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which
are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss
previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/
(losses). Interest income from these financial assets is included in other income using the effective interest rate method.
Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair
value through profit or loss. Interest income from these financial assets is included in other income.
Equity instruments: All investments in equity instruments classified under financial assets are initially measured at fair
value,the company may,on initial recognition,irrevocably elect to measure the same either at FVOCI or FVTPL.
The Company makes such election on an instrument-by-instrument basis .Fair value changes on an equity instrument is
recognized as 'other income' in the statement of profit and loss unless the company has elected to measure such instrument
at FVOCI.Fair value changes excluding dividends,on an equity instrument measured at FVOCI are recognized in OCI.Amounts
recognized in OCI are not subsequently reclassified to the statement of profit and loss. Dividend income on the investments
in equity instruments are recognized as 'oher income/expense' in the statement of profit and loss.
(iii) Impairment of financial assets
In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.
For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has
been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month
ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in
subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.
Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the year end.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the
cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment,
extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the
financial instrument.
For trade receivables, the Company assumes increased credit risk if the payment is more than 365 days and accordingly, it
creates appropriate provision over the trade receivables.
ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement
of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e.
as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross
carrying amount.
(iv) Derecognition of financial assets
A financial asset is derecognized only when
a) the rights to receive cash flows from the financial asset is transferred or
b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to
pay the cash flows to one or more recipients.
(b) Financial liabilities
(i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at
amortized cost, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly
attributable transaction costs.
(ii) Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held
for trading are recognized in the Statement of Profit and Loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as
through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
Statement of Profit and Loss.
(iii) Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in
the Statement of Profit and Loss as finance costs.
(c) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset
and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.
2.14 Employee Benefits
(a) Short-term employee benefits
(i) Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term
employee benefits. These benefits include salaries and wages, bonus and ex-gratia etc. The undiscounted amount of short¬
term employee benefits to be paid in exchange for employee services is recognised as an expense in the Statement of
Profit and Loss in the period in which the employee renders the relevant service.
(i) Leave encashment/Gratuity
The company has no provision in the books of accounts regarding gratuity and accrued leave salary . However, the same is
taken at the time of payment to employee’s on retirement, resignation or termination.
(b) Long-term employee benefits:
(i) Defined contribution plan
The Company makes defined contribution to Government Employee Provident Fund, Government Employee Pension Fund,
Employee Deposit Linked Insurance Employees’ State Insurance scheme and Labour welfare fund which are recognised in
the Statement of Profit and Loss on accrual basis.
(ii) Defined benefit plans
Gratuity: In accordance with the Payment of Gratuity Act, 1972, the plan provides for lump sum payments to vested
employees on retirement, death while in service or on termination of employment in an amount equivalent to half month
basic salary for each completed year of service. Vesting occurs upon completion of five years of service. However, the
Company does not provides for retirement benefits in the form of Gratuity same is taken at the time of payment to
employee on retirement or otherwise.
(c) Other long-term employee benefits:
Leave encashement/Gratuity: The company has no provision in the books of accounts regarding accrued leave
salary/gratuity . However, the same is taken at the time of payment to employee’s on retirement,resignation or
termination.
2.15 Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the
Company's earnings per share is the net profit or loss for the year after deducting preference dividends and any
attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for
all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares,
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 year attributable to equity
shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all
dilutive potential equity shares.
2.16 Borrowing cost
Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings. Borrowing
costs relating to acquisition or construction of assets which takes substantial period of time to get ready for its intended
use are included as cost of such qualifying assets to the extent they relate to the period till such qualifying assets are ready
to be put to use. Other borrowing costs are recognised as an expense in the Statement of Profit and Loss in the period in
which they are incurred.
2.17 Factoring/Bill discounting arrangement
Amount received from debtors which has been realised through factoring/bill discounting arrangement are shown on net
basis. The amount deducted by factoring/bill discounting arrangement are shown under finance cost.
2.18 Rounding off amounts
All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as per requirement of
Schedule III of the Act, unless otherwise stated.
2.19 Measurement of EBITDA
The Company has opted to present earnings before interest (finance cost), tax, depreciation and amortisation (EBITDA) as
a separate line item on the face of the Statement of Profit and Loss. The Company measures EBITDA on the basis of profit/
(loss) from continuing operations.
2.20 Material Events
Material events occurring after the Balance Sheet date in relation to conditions existing as at the Balance Sheet date is
taken into cognizance.
2.21 Material Accounting Policy Information
The Company adopted Disclosure of Accounting Policies (Amendments to Ind AS 1) from 1 April 2023. Although the
amendments did not result in any changes in the accounting policies themselves, they impacted the accounting policy
information disclosed in the financial statements.
The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies. The amendments also
provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful,
entity-specific accounting policy information that users need to understand other information in the financial statements.
3 Significant accounting judgments, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future years.
3.1 Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
(a) Taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the amount
of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.
In assessing the reliability of deferred income tax assets, the Management considers whether some portion or all of the
deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon
the generation of the future taxable income during the periods in which the temporary differences become deductible.
The Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and
tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for
future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes
that the Company will realize the benefits of those deductible differences.
4 Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the company w.e.f. April 1, 2024. The company has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant impact in its financial statements.
36 Financial risk management objectives and policies
The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company's risk management is
coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for
speculative purposes.
(A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three
types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings, deposits, investments and derivatives financial instruments.
(i) 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
exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. As there are no debt obligations
with floating interest rates, the Company is not exposed to interest rate risk.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company's
exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign
currency). The Company is not exposed to exchange rate risk as all the Company invoicing and realization is in its functional currency i.e. Indian Rupee and hence the
Company realizes the complete revenue with no impact of exchange rate movement.
(B) 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. The Company is
exposed to credit risk primarily from its operating activities and from deposits with landlords and other statutory deposits with regulatory agencies and from cash held
with banks, financial institutions, mutual funds and other financial instruments. The maximum exposure to credit risk is equal to the carrying value of the financial
assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking
into account their financial position, past experience and other factors. The Company extends credit to customers in normal course of business. The Company considers
factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the
customers. Outstanding customer receivables are regularly monitored. The company evaluates the concentration of risk with respect to trade receivables as low, as its
customers are located in several jurisdictions and operate in largely independent markets.
The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank
accounts required to meet a month’s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that
there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the landlords before taking any property on lease and
hasn’t had a single instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period rentals are
adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The Company does not foresee any
credit risks on deposits with regulatory authorities.
The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and 31 March 2024 is the carrying amounts as mentioned in
Note 8 to 14.
(C) 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 manages its liquidity risk by ensuring, as
far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
The fair value of other current financial assets, cash and cash equivalents,other bank balances, trade receivables ,trade payables and other financial liabilities
approximate the carrying amounts because of the short term nature of these financial instruments. The amortized cost using effective interest rate (EIR) of non-current
financial assets consisting of security and term deposits and non-current financial liabilites consisting of borrowings are not significantly different from the carrying
amount. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own and counterparty credit risk.
38 Capital management
The primary objective of the Company’s capital management is to ensure availability of funds at competitive cost for its operational and development needs and
maintain a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value
51 The figures of GSTR 1, GSTR 2B and GSTR 3B are under Reconciliation with Books of Account and any adjustment, if required, will be carried out in subsequent period.
Any reduction/increase of GST liability on account of ineligible input and/or any addition/reduction in output liability on any account and any interest/penalty liability
shall be accounted for as and when the same is identified and/or determined.The management expects such amount shall not be material to impact the true and fair
presentation of financial statements.
52 Other Statutory Information, as certified by
(i) The Company has not granted any loans to the promoters, directors, KMPs and related parties.
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.
(iii) The Company does not have any transactions with struck off companies
(iv) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period except Car loan from Toyota Financial Services India
Ltd for Rs. 25 lacs and from ICICI Bank for Rs. 4 lacs.
(v) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
( vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
( vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in
writing or otherwise) that the Company shall :
(a) 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)
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(viii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the
taxassessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
(ix) The Company has not been declared wilful defaulter by any bank or Financial Institution or any other lender.
(x) The Company has not entered in any scheme of arrangement.
(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers)
Rules, 2017.
(xii) The quarterly returns/statements of current Assets filed by the Company with Banks are in agreement with Books of Accounts, except to the extent of Work in
progress which has been recorede in books as at the year end.
54 The accompanying notes and schedule form an integral part of the Financial statements.
In terms of our report of even date
For Sanjay Rawal & Co. For and on behal For & on Beh alf of the Board
Chartered Accountants M/S Auto Pins India Limited
Firm Registration No.:012820N CIN: L34300DL1975PLC007994
Sanjay Rawal Rajbir Singh Subhash Jain
Partner Managing Director Director
Membership No: 088156 DIN:00176574 DIN:00176493
Place: New Dehi Shweta Bhatnagar Somya Chaurasia
Date: 28/05/2025 Chief Finance Officer Company Secretary
UDIN:- 25088156BMNXSJ5903 Membership No: A70307
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