Provisions are recognised when present obligations as a result of a past event will probably lead to an outflow
of economic resources and amounts can be estimated reliably. Timing or amount of the outflow may still
be uncertain. A present obligation arises when there is a presence of a legal or constructive commitment
that has resulted from past events, for example, legal disputes or onerous contracts. Provisions are not
recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on
the most reliable evidence available at the reporting date, including the risks and uncertainties associated
with the present obligation. Provisions are discounted to their present values, where the time value of money
is material.
Any reimbursement that the Company can be virtually certain to collect from a third party with respect to
the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the
related provision.
All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
In those cases where the outflow of economic resources as a result of present obligations is considered
improbable or remote, no liability is recognised.
- Possible obligations which will be confirmed only by future events not wholly within the control of the
Company or
- Present obligations arising from past events where it is not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are not recognised. However, when inflow of economic benefits is probable, related asset
is disclosed.
o. Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian Accounting
Standard 19- Employee Benefits. Employee benefits include provident fund, employee state insurance, gratuity,
compensated absences etc. The Company's contribution to provident fund and employee state insurance
are considered as defined contribution plans and gratuity and compensated absences are considered defined
benefit plans.
Defined benefit plans
Gratuity
The Company operates one defined benefit plan for its employees, viz. gratuity. The cost of providing benefits
under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit
credit method and is recognised in the financial statements. Actuarial gain and loss for the defined benefit
plan is recognized in full in the period in which they occur in other comprehensive income.
Other long term benefits
Compensated adsenses or accumulated leave expected to be carried forward beyond twelve months, is
treated as long term employee benefits. Such long term compensated absences are provided for based on
the actuarial valuation using the projected unit credit method at the year end and is recognised in the financial
statements. Accumulated leave, which is expected to be utilised within the next 12 months, is treated as
short term employee benefit.
Liability under continuity linked key resource and deferred salary schemes is provided for on actuarial valuation
basis, which is done as per the projected unit credit method at the end of each financial period.
Defined contribution plans
Provident Fund
The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund
and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable
is recognised as an expense in the period in which services are rendered by the employee.
Short-term employee benefits
Expense in respect of other short term benefits is recognised on the basis of the amount paid or payable
for the period during which services are rendered by the employee.
p. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted
for events including a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
q. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting done to the chief operating
decision maker. The Company operates in a single operating segment and geographical segment.
r. Investment in Subsidiary and Associate Companies
The Company has elected to recognize its investments in subsidiary and associate companies at cost in
accordance with the option available in Ind AS 27, ‘Separate Financial Statements'.
s. Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments
and right-of-use assets representing the right to use the underlying assets.
a) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.
b) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in-substance fixed payments) less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be
exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects
the Company exercising the option to terminate. Variable lease payments that do not depend on an
index or a rate are recognised as expenses in the period in which the event or condition that triggers
the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate
at the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the lease payments
or a change in the assessment of an option to purchase the underlying asset.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
c) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain
a purchase option). It also applies the lease of low-value assets recognition exemption that are considered
to be low value. Lease payments on short-term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the
terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract
is classified as a finance lease. All other leases are classified as operating leases. When the Company
is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately.
The sublease is classified as a finance or operating lease by reference to the ROU asset arising from
the head lease. For operating leases, rental income is recognized on a straight-line basis over the term
of the relevant lease.
4. Material accounting judgements, estimates and assumptions
In preparation of the financial statements, management undertakes a number of judgments, estimates and
assumptions about recognition and measurement of items of assets, liabilities, income and expenses.
The actual results are likely to differ from the judgments, estimates and assumptions made by management, and
will seldom equal the estimated results.
Information about significant judgments, estimates and assumptions that have the most significant effect on recognition
and measurement of assets, liabilities, income and expenses are discussed below:
Significant judgements:
(i) Evaluation of indicators for impairment of non-financial assets
The evaluation of applicability of indicators of impairment of non-financial assets requires assessment of several
external and internal factors which could result in deterioration of recoverable amount of the assets.
(ii) Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability
of the future taxable income against which the deferred tax assets can be utilised. The recognition of deferred
tax assets and reversal thereof is also dependent upon management decision relating to timing of availment
of tax holiday benefits available under the Income Tax Act, 1961 which in turn is based on estimates of
future taxable profits.
Sources of estimation uncertainty:
(i) Provisions
At each balance sheet date, basis the management judgment, changes in facts and legal aspects, the Company
assesses the requirement of provisions against the outstanding warranties and guarantees. However, the
actual future outcome may be different from management's estimates.
(ii) Fair valuation of financial instruments
Management applies valuation techniques to determine the fair value of financial instruments (where active
market quotes are not available). This involves developing estimates and assumptions consistent with how
market participants would price the instrument.
(ii) In case of assets taken on lease
The Company has taken factory building , guest house and office building on leases. With the exception of short¬
term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-
of-use asset and a lease liability as a borrowings. Variable lease payments which do not depend on an index
or a rate are excluded from the initial measurement of the lease liability and right of use assets.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease
the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an
option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying
leased assets as security. For leases over office buildings and other premises the Company must keep those
properties in a good state of repair and return the properties in their original condition at the end of the lease.
The disclosures related to leases are as under:-
44 Fair value disclosures
(i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are classified
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
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 rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.
ii) Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors
has overall responsibility for the establishment and oversight of the Company's risk management framework. This
note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is
exposed to this risk for various financial instruments, for example by granting loans and receivables to
customers, placing deposits, etc. The company's maximum exposure to credit risk is limited to the carrying
amount of following types of financial assets. - cash and cash equivalents, - trade receivables, - loans &
receivables carried at amortised cost, and- deposits with banks
a) Credit risk management
The Company assesses and manages credit risk based on internal credit rating system, continuously
monitoring defaults of customers and other counterparties, identified either individually or by the company,
and incorporates this information into its credit risk controls. Internal credit rating is performed for each
class of financial instruments with different characteristics. The Company assigns the following credit
ratings to each class of financial assets based on the assumptions, inputs and factors specific to the
class of financial assets.
Other financial assets measured at amortised cost
Other financial assets measured at amortized cost includes advances to employees and security deposits. Credit
risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously,
while at the same time internal control system in place ensure the amounts are within defined limits.
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks
and diversifying bank deposits and accounts in different banks.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the
nature of the business, the Company maintains flexibility in funding by maintaining availability under committed
facilities. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents
on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the
entity operates. In addition, the Company's liquidity management policy involves projecting cash flows in major
currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity
ratios against internal and external regulatory requirements and maintaining debt financing plans.
56 Additional regulatory information not disclosed elsewhere in the financial information
(i) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013
or Section 560 of Companies Act, 1956 during the financial year ending 31st March 2025 and 31st March 2024.
(ii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year ending
31st March 2025 and 31st March 2024.
(iii) The Company does not have any Benami property as on 31st March 2025 and 31st March 2024, where any
proceeding has been initiated or pending against the Company for holding any Benami property.
(iv) The Company does not have any prior period errors in financial year ending on 31st March 2025 and 31st March
2024 to be disclosed separately in Statement of changes in equity.
(v) The Company has no cases of any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period in the financial year ending 31st March 2025 and 31st March 2024.
(vi) During the financial year 2024-25 and 2023-24, the Company have 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) During the financial year 2024-25 and 2023-24, the Company have 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) or (b) provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries,
(viii) The Company has not granted any loans and advances in the nature of loans to promoters, directors, KMP
and other related parties during the financial year ending 31st March 2025 and 31st March 2024.
(ix) The Company has not been declared as wilful defaulter by any bank or financial institution or government or
any government authority during the financial year 2024-25 and 2023-24.
(x) The Company is not required to submit statement of current assets with the bank and therefore reconciliation
of the statement filed by the company with bank and the books of accounts is not applicable.
(xi) The Company has no such transactions during financial year 2024-25 and 2023-24, where the company has
not used the borrowings from banks and financial institutions for the specific purpose for which it was taken
at the balance sheet date.
(xii) The Company has not entered into any scheme(s) of arrangements given under section 230 to 237 of the
Companies Act 2013 during the year ending 31st March 2025 and 31st March 2024.
(xiii) The Company has not entered in any transaction not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search
or survey or any other relevant provisions of the Income Tax Act, 1961).
(xiv) Company has not received any grants and donations during the year ending 31st March 2025 and 31st March
2024.
(xv) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or capital work in process during the year ending 31st March 2025 and 31st March 2024.
(xvi) The title deeds of all the immovable properties disclosed in the financial statements are held in the name of the
company and title deeds in respect of sub lease of commercial property at Noida having gross carrying value
of Rs. 4694.79 Lacs is pending for registration as on 31st March 2025 and 31st March 2024.
(xvii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
57 Authorisation of Standalone financial statements
These standalone financial statements for the year ended 31 March, 2025 were approved by the Board of Directors
on 29th May, 2025.
This is the Summary of material accounting policies and other explanatory information referred to in our report of even
date.
For VSVG & Co. For and on behalf of the Board of Directors of IST Limited
Chartered Accountants
Firm Registration NO. 005100N
Vikas Kodesia Mayur Gupta S.C.Jain D.N.Tulshyan Bhupinder Kumar
Partner Director Executive Director Chief Financial Officer Company Secretary
Membership No. 403450 DIN-00131376 DIN-00092079
Place : New Delhi
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