2.19 Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37):
Provisions are recognized in the balance sheet when the company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet. Where the time value of money is material, provisions are made on a discounted basis.
Disclosure for Contingent liabilities is made when there is a possible obligation or present 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 the past events where it is either not probable that an outflow of resources embodying in economic benefits will be required to settle or a reliable estimate of amount cannot be made.
Disclosure for Contingent assets are made when there is 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 entity. However Contingent assets are neither recognized nor disclosed in the financial statements.
2.20 Prior Period and Extraordinary and Exceptional Items:
(i) All Identifiable items of Income and Expenditure pertaining to prior period are accounted through ‘'Prior Period Items'.
(ii) Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.
(iii) The nature and the amount of each extraordinary item be separately disclosed in the statement of profit and loss in such a manner that its impact on current profit or loss can be perceived.
(iv) Exceptional items are generally non-recurring items of income and expenses within profit or loss from ordinary activities, which are of such nature, or incidence.
2.21 Financial Instruments (Ind AS 107 Financial Instruments: (Disclosures)
I. Financial assets:
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.
B. Subsequent Measurement
a) financial assets measured at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
b) financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a businessmodel whose Objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
c) financial assets measured at fair value through profit or loss (FVTPL)
A Financial asset which is not classified in any of the above categories are measured at FVTPL e.g. investments in mutual funds. Financial assets are reclassified subsequent to their recognition, if the Company changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 -Financial Instruments.
II. Financial Liabilities A. Initial recognition
All financial liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
2.23 Operating Segments (Ind AS 108)
Operating segment is a component of an entity:
a. That engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity).
b. Whose operating results are regularly reviewed by the entity's chief operating decision maker to make decision about resources to be allocated to the segments and assess its performance, and
c. For which discrete financial information is available.
The Company is engaged in the business of trading in Agricultural products and related works. As there are no separate reportable segments,Segment Reporting as per Ind AS -108, “Operating Segments” is not applicable.
2.24 Events After the Reporting Period (Ind AS 10)
Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting and the date when the financial statements are approved by the Board of Directors in case of a company, and, by the corresponding approving authority in case of any other entity for issue. Two types of events can be identified:
a. Those that provide evidence of conditions that existed at the end of reporting period (adjusting events after the reporting period);
b. Those that are indicative of conditions that arose after the reporting period ( non-adjusting events after the reporting period).
An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events after the reporting period.
As per the information provided and Books of Accounts no such events are identified during the reporting period. Hence Ind AS 10 Events After the Reporting Period is not applicable.
2.25 Construction Contracts (Ind AS 11):
Construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology, and function or their ultimate purpose or use.
The company is engaged in the business of trading Agricultural products and related works, hence Ind AS 11 “Construction Contract” is not applicable.
2.26 Income Taxes (Ind AS 12)
The Tax Expense for the period comprises of current and deferred tax.
• Current Tax:
Current Tax Assets and Liabilities are measured at the amount expected to be recovered from or paid to the Income tax authorities, based on tax rates and laws that are enacted at the Balance Sheet date.
• Deferred Tax:
Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
At each reporting date, the Company reassesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certainor virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
New and Amended Standards
2.27 Amendment to Ind AS 116: COVID -19 Related Rent Concessions:
The amendments provide relief to lessees from applying Ind AS 116 guidance on lease modification accounting for rent concessions arising as a direct consequence of Covid-19 pandemic. As a practical expedient, a lessee may elect not to access whether a Covid-19 related rent concession from a lessor is lease modification. A lessee that makes this election accounts for any change in lease payments resulting from COVID-19 related rent concession the same way it would account for the changes under Ind AS 116 if changes were not lease modifications. This Amendment had no impact on the standalone financial statements of the Company.
2.28 Amendment to Ind AS 1 and Ind AS 8: Definition of material:
The Amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring it is reasonably be expected to influence decisions that the primary uses of general-purpose financial statements make on the basis of those financial statements, which provide financial information about specific reporting entity”. The amendments clarify that materiality will depend on the nature of magnitude of information, either individually or in combination with other information, in the context of the financial year statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the financial statements of the company.
2.29 Amendment to Ind AS 107 and Ind AS 109: Interest Rate Benchmark Reform:
The amendments to Ind AS 109 Financial Instruments: Recognition and Measurements provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark -based cash flow of hedging items or hedging instrument. These amendments have no impact on the standalone financial statements of the company as it does not have any interest rate hedge relation.
The amendment to Ind AS 107 prescribes the disclosure which entities are required to make for hedging relationship to which the reliefs as per the amendments in Ind AS 109 are apply. This amendment had no impact on the standalone financial statement of the company.
As per our Report of even date attached For and on behalf of Board of Directors of
Kisaan Parivar Industries Limited
For H Rajen & Co (formerly known as Richirich Inventures Limited)
Chartered Accountants (ICAI FRNo.: 108351W)
v ' Sd/- Sd/-
CA Bharat Kumar Rajani Nanavath Srikanth Yegireddi
Partner Managing Director Director
Membership No:175787 DIN: 07889037 DIN: °5192572
UDIN:23175787BGVSNQ3989
Sd/- Sd/-
Place: Hyderabad Suresh Maddela Harish Sharma
Date: 28.05.2024 CFO Company Secretary
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