(g) Provisions
“A provision is recognized when the Company has a present obligation Legal or Constructive
that is reasonably estimated and it is probable that an outflow of economic benefits will
be required to settle the obligation. These estimates are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimates.
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.“
(h) Earnings per Share
Basic earnings per share are calculated by dividing the net profit/ loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year
For the purpose of calculating diluted earnings per share, the net profit for the year
attributable to equity shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of diluted potential equity shares, if any.
(i) Contingent liabilities
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 outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the financial statements.“
(j) Financial Instruments
Financial assets and liabilities are recognised when the company becomes a party to the
contractual provisions of the instruments.
Financial Assets
Initial recognition and measurement:
All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial
assets carried at Fair value through profit or loss are expensed in the Statement of profit and
loss. Financial assets are classified, at initial recognition and subsequent measurements, as
financial assets at fair value or as financial assets measured at amortised cost.
A financial asset is measured at amortised cost less impairment, if the objective of the company’s
business model is to hold the financial asset to collect the contractual cash flows.
Impairment of financial assets:
The company assesses on a forward basis the expected credit losses associated with its
financial assets carried at amortised cost. For trade receivables , the company applies the
simplified approach permitted by Ind AS 109 Financial instruments, which requires expected
credit losses to be recognised from initial recognition of the receivables.
Derecognistion:
The company derecognises a financial asset only when the contractual rights to the cash flows
from the asset expires or it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value . The company’s financial liabilities
include trade and other payables.
Financial liabilities are classified as ‘Financial liabilities at fair value through profit or loss’ if they
are held for trading or if they are designated as financial liabilities upon initial recognition at
fair value through profit or loss. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term.“
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 or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offsetted 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, to realize the assets and settle the liabilities
simultaneously.
k) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or
liability The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.11
For assets and liabilities that are recognized in the financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting year.
(L) Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) has notified the following new amendments to Ind AS
which the Company has applied as they are effective for annual periods beginning on or after
April 1,2023.
(i) Amendment to Ind AS 1 “Presentation of Financial Instruments”
The amendments require companies to disclose their material accounting policies
rather than their significant accounting policies. Accounting policy information is
material if, together with other information can reasonably be expected to influence
decisions of primary users of general purpose financial statements. The amendment
does not have any significant impact on the company.
(ii) Amendment to Ind AS 12 “Income Taxes”
The amendments clarify how companies account for deferred tax on transactions
such as leases and decommissioning obligations. The amendments narrowed the
scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition
exemption) so that it no longer applies to transactions that, on initial recognition, give
rise to equal taxable and deductible temporary differences. The amendment does
not have any significant impact on the company..
(iii) Amendment to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates
and Errors
The amendments will help entities to distinguish between accounting policies and
accounting estimates. The definition of a change in accounting estimates has
been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are “monetary amounts in financial statements that are subject
to measurement uncertainty”. Entities use measurement techniques and inputs
to develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The
amendment does not have any significant impact on the company.
3 Use of Judgment’s, Estimates and Assumptions
The preparation of the Company’s 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
periods. Difference between actual results and estimates are recognised in the periods in which
the results are known / materialise. The estimates and associated assumptions are based
on historical experience and various other factors that are believed to be reasonable under
the circumstances existing when the financial statements were prepared. The estimates and
underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is
recognised in the year in which the estimates are revised.
23 Forward contracts outstanding as at the Balance Sheet date
There are no forward contracts outstanding as at balance sheet date.
24 The liability for encashment of Gratuity and earned leave has been provided as per
actual entitlements. Hence the company has not provided for the employees liability as
required by Ind AS-19 revised 2005 “Employees Benefits”.
25 Details of foreign Exchange Earning and Outgo: NIL
26 Corporate Social Responsibility (CSR)
The company is not liable to incur any expenditure under the CSR guidelines notified by
The Ministry of Company Affairs.
27 Earnings per share
Basic and Diluted earnings per share
The following reflects the income and share data used in the Basic and Diluted EPS
computation:
30 Fair value disclosures
30.1 The company uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
The categories used are as follows:
• Level 1: This hierarchy includes financial instruments measured using quoted
prices. This includes listed equity instruments, traded bonds, ETFs and mutual
funds that have quoted price.;
• Level 2: The fair value of financial instruments that are not traded in an active market
is determined using valuation techniques which maximize 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; and
• Level 3: If one or more of the significant inputs is not based on observable market
data, the instrument is included in level 3.”
The carrying value of all the financials assets and financial liabilities are reasonable a
approximation of their fair values. Accordingly the fair values of such financial assets
and liabilities have not been disclosed separately.
30.2 Financial Risk Management- Objectives And Policies
Due to insignificant business operations the company does not posses any market risk.
30.3 Liquidity risk is the risk that the company will not be able to meet its financial obligation
as they fall due. Liquidity risk arises because of the possibility that the company could be
required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring
on a regular basis that sufficient funds are available to meet any future commitments.
The company manages its liquidity risk by maintaining sufficient bank balance .
As on 31st March, 2024, the company’s financial liabilities of ' 558.13 Thousand (31st
March, 2023'2486.25 Thousand) are all current and due in the next financial year.”
33 Income Tax & Deferred Tax:
In view of losses no provision for Income tax has been made. Deferred Tax Assets
arising out of significant timing differences between the books of Account and Income
Tax has not been recognised as a matter of prudence.
34 Additional regulatory information required by Schedule III of Companies Act,2013
34.1 Details of Benami property:
No proceeding have been initiated or are pending against the Company for holding any
Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and
the rules made thereunder.
34.2 Utilisation of borrowed funds and share premium:
(a) 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:
i) directly or indirectly lend or invest in other person or entities identified in any
manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries)
or
ii) provide any guarantee,security or the like or on behalf of the ultimate ben¬
eficiaries.
(b) The Company has not received any fund from any person (s) or entity (ies), includ¬
ing foreign entities (Funding Party) with the understanding (whether recorded in
writing or otherwise) that the Company shall:
i) directly or indirectly lend or invest in other person or entities identified in any
manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries)
or
ii) provide any guarantee,security or the like or on behalf of the ultimate ben¬
eficiaries.
34.3 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies
Act,2013.
34.4 Compliance with approved scheme (s) of arrangements:
The Company has not entered into any scheme or arrangement which has an accounting
impact on current or previous year.
34.5 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous
year in the tax assessments under the Income Tax Act, 1961, that has not been recorded
in the books of account.
34.6 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during
the current or previous year.
34.7 Valuation of Property, Plant and Equipment:
The Company has not revalued its property, plant and equipment (including right-of-
use-assets) during the current or previous year.
34.8 Willful Defaulter:
The Company is not declared as willful defaulter by any bank or financial institution
(as defined under the Companies Act, 2013) or consortium thereof or other lender in
accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
34.9 Details of Transaction with Struck of Companies:
There are no Transactions with Struck of Companies during the Current and Previous
Year.
35 Due to change in auditors during the current year the previous year figures have been
relied upon.
36 The previous year figures have been regrouped/ reclassified, wherever necessary to
confirm to the current year presentation.
37 During the year company incured the loss of Rs.41,87,223/- due to decrease of sales
and increase the listing related expense during the year as compare to the last year
profit of Rs.2,04,989/-.
SIGNATORIES TO SCHEDULES “1 TO 37”
As per our report of even date attached
For B L Dasharda & Associates For Revati Organics Limited
Chartered Accountants
Sd/- Sd/- Sd/-
Sushant Mehta Manish G. Shah Jaimini P Gosalia
Partner Director Director
Membership No. 112489 DIN: 00434171 DIN: 10450937
Firm No.112615W
Sd/- Sd/-
Place: Mumbai Amit Ghosh Payal Doshi
Dated: 29th May, 2024 Chief Financial Officer Company Secretary
UDIN: 24112489BKANXT3310
Place: Mumbai
Date : 29-05-2024
|