2.14 Provisions, contingent liabilities and contingent assets.
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at current pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability when discounting is used, the
increase in the passage of time is recognized as finance costs.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because
it is not probable that an out flow of resources will be required to settle the obligation. Contingent liability also arises in extremely rare cases
where there is liability that can't be recognized because it can't be measured reliably.
A contingent liability is not recognized in the financial statements, but discloses its existence in the Financial Statement
When the realization of income is virtually certain, then the related asset is no longer a contingent asset, and is recognized as an asset.
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
2.15 Dividend payable
Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividend are recorded as a liability on
the date of declaration by the Company's Board of Directors. A corresponding amount is recognized directly in equity.
2.16 Foreign currency transactions
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction. Monetary items denominated in
foreign currencies at the year ended translated at the year ended rates which is likely to be realized from, or required to disburse at the balance
sheet date. Exchange differences arising on settlement of monetary items at rates different from those at which they were initially recorded /
reported in financial statements are recognized as income or expense in the year in which they arise.
Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date
of the initial transaction.
2.17 Employee benefits.
a) Short -term employee benefits are recognized as an expense at the undiscounted amount in the Statement Profit & Loss Account of the
period in which the related service is rendered.
b) Long -term employee benefits are recognized as an expense in the Statement Profit & Loss Account for the year in which the employee
has rendered services.
i. ) Compensated absences
Accumulated leave, which is expected to be utilized within next 12 months, is treated as short term employee benefit and this is shown
under current provisions in the Balance Sheet. The Company treats accumulated leave expected to be carried forward beyond twelve
months, as Long term employee benefits and shown under Long term provisions in the Balance sheet.
ii. ) Defined Benefit Plans
The Company provides for retirement benefits in the form of gratuity. The Company's liability towards this benefit is determined on the
basis of actuarial valuation using projected unit credit method at the date of Balance sheet. Actuarial gain and Losses in respect of such
benefits are recognized in Statement of Profit & Loss A/c.
2.18 Financial instruments
A Financial instrument is any contract that gives rise to financial assets of one entity and a financial liability or equity instrument of another
party.
A. Financial Assets
a. Initial recognition
The Company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or
an equity instrument in accordance with the substance of the contractual arrangement. Financial instruments are recognized when
the Company becomes a party to the contractual provisions of the instrument. Financial instruments are recognized initially at fair
value plus transactions costs that are directly attributable to the acquisition or issue of the financial instrument, except for financial
assets at fair value through statement of profit and loss, which are initially measured at fair value, excluding transaction costs (which is
recognized in statement of profit and loss).
b. Subsequent measurement
i. ) Financial assets carried at amortized cost (AC)
A financial asset is subsequently 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.
ii. ) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model
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.
iii.) Financial assets at fair value through statement of profit and loss (FVTPL)
Equity instruments
All equity investments in scope of Ind AS 109 are measured at fair value either as at FVTOCI or FVTPL. The Company makes
such election on an instrument-by-instrument basis. For equity instruments measured as at FVTOCI, all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. Equity instruments included within the FVTPL category are
measured at fair value with all changes recognized in the Statement of Profit & Loss account.
c. De-recognition
A Financial Assets (or where applicable, part of financial assets) is primarily derecognized when:
1. The contractual right to receive cash flows from the assets have expired or
2. The Company has transferred its right to receive cash flow from the financial assets and subsequently all the risks and rewards
of ownership of the assets to third party.
d. Reclassification of financial assets:
A company determines the classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities.
e. Impairment of financial assets
The Company recognized loss allowance using the expected credit loss (ECL) model for financial assets which are not fair valued
through Statement of Profit and loss. Loss allowance for trade receivable with no significant financing component is measured at an
amount equal to lifetime ECL
For all other financial assets, expected credit loss are measured at an amount equal to the twelve-month ECL, unless there has been
a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.
B. Financial liabilities
a. Initial recognition and measurement:
All financial liabilities are recognized initially at fair value and in case of loans and borrowings and payables, net of directly attributable
cost. The Company's financial liabilities include trade and other payable, loans and borrowing including bank over drafts, financial
guarantee contracts and derivative financial instruments. Fees of recurring nature are directly recognized in statement of profit and
loss as finance cost.
b. Subsequent measurement:
Financial liabilities are subsequently 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.
i. ) Loans and borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Gains and losses are recognized in statement of profit and loss when liabilities are de-recognized.
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 cost in the statement of profit and loss.
ii. ) Compound financial instruments
At the issue date the fair value of the liability component of a compound instrument is estimated using the market interest rate for a
similar non-convertible instrument. This amount is recorded as a liability at amortized cost using the effective interest method until
extinguished upon conversion or at the instrument's redemption date. The equity component is determined as the difference of the
amount of the liability component from the fair value of the instrument. This is recognized in equity, net of income tax effects, and
is not subsequently re-measured.
c. De-recognition of financial instruments
A financial liability is derecognized where the obligation under the liability is discharged or cancelled or expires where an existing
financial liability is replaced by another from the same tender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of
new liability. The difference in the respective carrying amounts is recognized in the statement of Profit and Loss.
d. Offsetting of financial instruments
Financial assets and financial liabilities including derivative instruments are offset and the net amount is reported in the Balance sheet, if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis or to realize
the assets and settle the liabilities simultaneously.
e) Fair value measurement
Fair value is a market-based measurement, not an entity-specific measurement. Under Ind AS, fair valuation of financial instruments is
guided by Ind AS 113 "Fair Value Measurement" (Ind AS - 113).
For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities,
observable market transactions and market information might not be available. However, the objective of a fair value measurement in
both cases is the same to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place
between market participants at the measurement date under current market conditions (i.e., an exit price at the measurement date
from the perspective of a market participant that holds the asset or owes the liability).
Three widely used valuation techniques specified in the said Ind AS are the market approach, the cost approach and the income
approach, which have been dealt with separately in the said Ind AS.
Each of the valuation techniques stated above proceeds on different fundamental assumptions, which have greater or lesser relevance,
and at times there is no relevance of a particular methodology to a given situation. Thus, the methods to be adopted for a particular
purpose must be judiciously chosen. The application of any method of valuation depends on the Company being evaluated, the nature
of the industry in which it operates, the Company's intrinsic strengths and the purpose for which the valuation is made.
In determining the fair value of financial instruments, the Company uses a variety of methods and assumptions that are based on
market conditions and risks existing at each balance sheet date.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
f) Share capital
An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its liabilities.
Incremental costs directly attributable to the issuance of new equity shares are recognized as a deduction from equity, net of any tax
effects.
2.19 Impairment Non-financial assets
The carrying amount of any property, plant and equipment and intangible assets with finite lives are reviewed at each balance sheet date,
if there is any indication of impairment based on internal /external factor. An asset is impaired when the carrying amount of the asset
exceeds the recoverable amount. Recoverable amount is higher of an asset's or cash generating unit's net selling price and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or group of assets.
An impairment loss is charged to the Statement of Profit and loss in the year in which an asset is identified as impaired. An impairment loss
recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount. At each balance
sheet date, the Company assesses whether there is any indication that any property, plant and equipment and intangible assets with finite
lives may be impaired. If any such impairment exists, the recoverable amount of an asset is estimated to determine the extent of impairment.
If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is
reassessed and the impairment loss previously recognized is reversed such that the asset is recognized at its recoverable amount but not
exceeding written down value which would have been reported if the impairment loss had not been recognized.
2.20 Taxes
Income tax expense comprises current tax and deferred tax and is recognized in the Statement of Profit and Loss except to the extent it relates
to items directly recognized in Equity or in Other Comprehensive Income (OCI).
Current tax
Provision for current tax is made with reference to taxable income computed for the accounting period for which the financial statements are
prepared by applying the tax rates and laws that are enacted or substantively enacted at the balance sheet date. The tax is recognized in the
statement of profit and loss, except to the extent that it related to items recognized in the OCI or in other equity. In this case, the tax is also
recognized in other comprehensive income and other equity.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable
temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the
deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects
neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off deferred tax assets against deferred tax
liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
2.21 Earnings per Share
The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is calculated by dividing the profit/
loss before other comprehensive income/loss for the year attributable to equity shareholders of the Company by the weighted average
number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit/loss before other comprehensive
income/loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects
of all dilutive potential equity shares.
2.22 Non-current assets (or disposal groups) held for sale and discontinued operations
a) Non-current assets (or disposal groups) are classified as held for sale if their carrying amount would be recovered principally through a
sale/distribution rather than through continuing use and a sale/distribution is considered highly probable.
Actions required to complete the sale/distribution should indicate that it is unlikely that significant changes to the sale/ distribution
would be made or that the decision to sell/distribute would be withdrawn. Management must be committed to sale/distribution
expected within one year from the date of classification.
b) Immediately before the initial classification of the assets (and disposal groups) as held for sale, the carrying amount of the assets (or all
the assets and liabilities in the disposal groups) are measured in accordance with their applicable accounting policy.
Non-current assets (or disposal groups) held for sale/for distribution to owners are subsequently measured at the lower of their carrying
amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits and financial
assets which are specifically exempt from this requirement.
c) Non-current assets including those that are part of a disposal group (PPE and Intangible assets) once classified as held for sale/
distribution to owners are neither depreciated nor amortized. Interest and other expenses attributable to the liabilities of a disposal
group classified as held for sale continue to be recognized.
d) Non-current assets (including assets of a disposal group) classified as held for sale are presented separately from the other assets in the
Balance sheet. The liabilities ofa disposal group classified as held for sale/distribution are presented separately from other liabilities in
the Balance sheet.
e) A disposal group qualifies as discontinued operation, if it is a component of equity that has either being disposed of or is classified as
Held for sale, and that represents separate major line of business or geographical area of operations or is part of a single co-ordinate
plan to dispose of a separate major line of business or geographical area of operations or is a subsidiary exclusively with a view to resale.
Discontinued operations are excluded from the results of continuing operations and are presented separately as a single amount
as profit or loss after tax from discontinued operations in the Statement of Profit and Loss and comparative information is restated
accordingly.
f) All notes to the financial statements mainly include amounts for continuing operations, unless stated otherwise.
2.23 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment
revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to segments on a
reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has
been identified as the Managing Director who makes strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparing and presenting the
financial statements of the Company as a whole.
2.24 Cash and cash equivalents
Cash and cash equivalents in the Balance sheet comprise cash on hand, cheques on hand, balance with banks on current accounts and short
term, highly liquid investments with an original maturity of three months or less and which carry insignificant risk of changes in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above, and net of
outstanding book overdrafts as they are considered an integral part of the Company's cash management.
2.25 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals, or accruals of past or future operating cash receipts or payments and item of income or expenses associated with
investing or financing flows. The cash flows from operating, investing, and financing activities of the Company are segregated.
b - Rights, preference and restrictions attached to Equity Shares
The Company presently has one class of equity shares having a par value Rs.10/- each. Each holder of equity shares is entitled to one vote
per share. The Dividend if proposed by the Board of Directors is subjects to the approval of the shareholders in the ensuing Annual General
Meeting
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company,
after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
The Company has not Declared dividend during the year ended 31 March 2025
b. All the Current assets, loans and advances, in the opinion of the Board, have a value on realization which in the ordinary course of business shall
at least be equal to the amount at which it is stated in the balance sheet.
c. The code on Social security,2020 (code) relating to employee benefits during employment and post-employment benefits received Presidential
assents in September 2020. The code has been published in the Gazette of India. The code would impact the contributions by the Company
towards provident fund and Gratuity. However, the date on which code will come into effect has not been notified. The Company will complete
its evaluation and will give appropriate impact in the financial statements in the period in which, the code becomes effective and the related
rules to determine the financial impact are published.
d. In terms of Ind AS 36 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management
estimates done and hence no impairment charge is recognized during the year under review.
e. The delay in applying the audit trail functionality was primarily due to accounting system required customization and testing to ensure that
the audit trail captured all transactions accurately. Additionally, migration of historical data and staff training contributed to the extended
timeline. The company however has fully completed the necessary updates and the audit trail feature has been made operational from 22nd
April, 2025.
f. Employee Benefits
As per Indian Accounting Standard-19 "Employees Benefits" the disclosures of employees benefits are as follows:
Defined Contribution Plan:
Employee benefits in the form of provident fund are considered as defined contribution plan. The contribution to the respective fund is
made in accordance with the relevant statute and are recognized as expense when employees have rendered service entitling them to the
contribution, the contribution to defined contribution plan, recognized as expense in the Statement of Profit and Loss are as under:
Note No.: 35 - Financial Risk Framework
The Company's financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities
is to finance the Company's operations. The Company's financial assets include Loans, trade and other receivables, cash and cash equivalents
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management overseas the management of these risks.
The Company's senior management provides assurance that the company's financial risks activities are governed by appropriate policies and risk
objectives. All derivative activities for risk management purpose are carried out by teams that have appropriate skills, experience and supervision. The
Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:
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 price. Market
risk comprises three types of risk interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk.
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's exposure to the risk of changes in market interest rates relates primarily to the company's borrowing obligations with
floating interest rates.
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 exports made by the company However the
company has not made any export during the year
Sensitivity
1% increase or decrease in foreign exchange rates will have no material impact on profit
B. Credit risk
Credit risk refers to the risk of default on its contractual terms or obligations by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank
balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit
rating agencies. The company assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal
course of business. The credit limit of each customer is defined in accordance with this assessment. The impairment analysis is performed on
client to client basis for the debtors that are past due at the end of each reporting date. The company has not considered an allowance for
doubtful debts in case of Trade receivables that are past due but there has not been a significant change in the credit quality and the amounts
are still considered recoverable.
C. Liquidity risk
i) Liquidity Risk Management
The financial liabilities of the company include loans and borrowings, trade and other payables. The company's principal sources of liquidity are
cash and cash equivalents and the cash flow that is generated from operations. The company monitors its risk of shortage of funds to meet the
financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash to meet the obligations as and when falls due.
ii) Maturities of financial liabilities
The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the
balance sheet to the contractual maturity date.
Note No.: 36 - Capital Management
a) Risk Management
The 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 maintain optimum capital structure to reduce cost of capital and to maximize 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 which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain or adjust the capital
structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
b) Loan Covenants:
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial
covenants attached to the interest bearing loans and borrowing that define capital structure requirements. The company has compiled with
these covenants and there have been no breaches in the financial covenants of any interest - bearing loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March 2025 and 31st March, 2024.
Note No. : 37- Other disclosures
a. The Company have used the borrowings from banks for the specific purpose for which they were taken from banks.
b. The Company has not been declared willful defaulter by bank or financial institution or any other lender during the year.
c. The company does not have any transactions or balances with the companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956 during the year and previous year.
d. During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for registration with Registrar
of Companies beyond the statutory period.
e. The Company have no layer of companies, Company is in compliance with the relevant provisions of the Companies Act,2013 with respect to the
number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of layers)
Rules, 2017
Note No.: 38
The previous year figures have been reworked, regrouped, rearranged and reclassified wherever necessary. The figures are rounded off to nearest
rupee in lakhs up to two decimals.
As per our report of even date attached
For SSVS & Co.
Chartered Accountants
Regn. No.-021648C For and on behalf of Board of Directors
(Vipul Sharma) Kunal Yadav Jaitender Singh
Partner Chairman & Managing Director Director
M. No.-74437 (DIN:01338110) (DIN:08164429)
UDIN : 25074437BMKWPD6675
Place: New Delhi Ravinder Sharma Anamika Raju
Date : 30-05-2025 Chief Financial Officer Company Secretary
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