g) Provisions, Contingent liabilities and Contingent assets:
Provisions are recognized when the Company has a present obligation (legal or constructive) 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 a reliable estimate can be made of the amount of the obligation, 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 not recognized, but are disclosed in the Notes. Contingent assets are neither recognized
nor disclosed in the financial statements.
h) Impairment of Non-Financial Assets- Property, Plant and Equipment and Intangible Assets:
The Company assesses at each reporting date as to whether there is any indication that any Property, Plant
and Equipment and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired.
If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent
of impairment if any. When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates recoverable amount of the CGU to which the asset belongs.
An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset's carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal
and value in use. Value in use is based on the estimated future cash flows, discounted to their present value
using pre-tax discount rate that reflects current market assessments of their value of the time value of money
and risk specific to the assets.
The impairment loss recognized in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
i) Finance costs:
Borrowing costs consists of interest cost and other borrowing costs that an entity incurs in connection with the
borrowing of funds.
Borrowing costs directly attributable to the acquisition and construction of an asset that necessarily takes a
substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective
assets up to the date when such assets are ready for their intended use. The borrowing cost eligible for
capitalization is being netted off against any income arising on temporary investment. All other borrowing
costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
j) Foreign currency transactions and Translation:
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency
closing rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognized in Statement of
Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest
costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying
assets which are capitalized as cost of assets.
Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the
exchange rates at the date of the transaction. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value is treated in line with the recognition
of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value
gain or loss also recognized in Other Comprehensive Income or Statement of Profit and Loss, respectively).
In respect of Foreign Branch, all the transactions are translated at the rates prevailing at the time of transactions
or that approximates the actual rate as at the date of transaction. Branch monetary assets and liabilities are
restated at the year-end rates.
k) Research and Development Expenditure:
Revenue expenditure on Research and Development is charged to the Statement of Profit and Loss in the
period in which it is incurred. Development costs of products are charged to the Profit and Loss Statement
unless a product's technological and commercial feasibility has been established, in which case such expenditure
is capitalized.
l) Cash flow statement:
Cash flows are reported using Indirect method as set out in IND AS -7 "Statement of Cash Flows". The Cash
flows from operating, Investing and financing activities of the Company are segregated based on the available
information.
m) Earning per Share:
The Company presents basic and dilluted earning per share ("EPS") data for its Equity Shares. Basic EPS is
calculated by dividing the profit or loss attributable to the equity Shareholder of the Company by the weighted
average number of equity shares outstanding during the period. Dilluted EPS is determined by adjusting the
profit or loss attributable to equity shareholders and the weighted number of equity shares outstanding for the
effect of all dilutive potential equity shares. The company has choosen to make additional disclosure of EPS
calculated considering other Comprehensive Income.
n) Financial Instruments:
I) Financial Assets
1. Initial Recognition and Measurement
All Financial Assets are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of Financial Assets, which are not at Fair Value through Profit or Loss, are added to the fair
value on initial recognition.
2. Subsequent Measurement
i. Financial Assets Measured at Amortised Cost (AC)
A Financial Asset is measured at Amortised 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 Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
A Financial Asset is measured at FVTOCI 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 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.
3. Impairment of Financial Assets
The Company recognizes loss allowance for expected credit losses on:
- Financial assets measured at amortised cost;
At each reporting date, the Company assesses whether financial assets carried at amortised cost has
impaired and provisions are made for impairment accordingly. A financial asset is 'credit impaired' when
one or more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
The Company measures loss allowances at an amount equal to lifetime expected credit losses, except
for the following, which are measured as 12 month expected credit losses:
- Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the
expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime expected
credit losses.
12 months expected credit losses are the portion of expected credit losses that result from default events
that are possible within 12months after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).
When determining whether the credit risk of a financial assets has increased significantly since initial
recognition and when estimating expected credit losses, the Company considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company's historical experience and
informed credit assessment and including forward looking information.
II) Financial Liabilities
1. Initial Recognition and Measurement
All Financial Liabilities are recognized at fair value and in case borrowings, net of directly attributable cost.
Cost of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.
2. 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.
III) Derecognition of Financial Instruments
The company derecognizes a Financial Asset when the contractual rights to the cash flows from the Financial Asset
expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A Financial
Liability (or a part of a Financial Liability) is derecognized from the Company's Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expired.
IV) Offsetting
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet where there
is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future event and must be enforceable in the normal course of business.
o) Fair Value:
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned
above. 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:
o In the principal market for the asset or liability, or
o In the absence of a principal market, in the most advantageous market for the asset or liability
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy that categorizes into three levels, described as follows. The
fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or
liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Level 1 - quoted prices for identical instruments in an active market.
Level 2 -Directly or Indirectly observable market inputs other than level 1 inputs.
Level 3 - inputs which are not based on observable market data.
For asset and liabilities that are recognized in the financial statements at fair value on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization at the end of each reporting period and discloses the same.
C) KEY ACOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the Company's Financial Statements requires management to make judgments, estimates and
assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying
disclosures. 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 next financial year.
1. Depreciation/Amortisation And Useful Life of Property Plant and Equipment/ Intangible Assets
Property, Plant and Equipment / Intangible assets are depreciated/ amortised over their estimated useful life,
after taking into account estimated residual value. Management reviews the estimated useful life and residual
values of the assets annually in order to determine the amount of depreciation/ amortization technological
changes. The depreciation/ amortization for future periods is revised if there are significant changes from
previous estimates.
2. Recoverability of Trade Receivable
Judgments are required in assessing the recoverability of overdue trade receivables and determining whether
a provision against those receivables is required. Factors considered include assessing the credit rating of the
counterparty, the amount and timing of anticipated future payments and any possible actions that can be
taken to mitigate the risk of non-payment.
3. Provisions
Provisions and Liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability require the application of judgement to
existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
4. Impairment of Non-Financial Assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired.
If any indication exists, the Company estimates the asset's recoverable amount is the higher asset's or Cash
Generating Units (CGU's) fair value less costs of disposal and its value in use. It 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. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transaction are taken into account, if no
such transactions can be identified, an appropriate valuation model is used.
5. Impairment of Financial Assets
The impairment provisions for Financial Assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company's past history, existing market conditions as well as forward looking
estimates at the end of each reporting period.
Financial Risk Management
The Company's principal financial liabilities comprise of borrowings, trade and other payable. The main purpose of
financial liabilities is to manage finance for the Company's operations. The Company has loan and other receivables,
trade and other receivable and cash and short term deposits that arise directly from its operations. The Company's
activities exposes it to variety of financial risk as follows:
i Market Risk
ii Credit Risk
iii Liquidity Risk
i Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risks: currency rate risk, interest rate risk
and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market
risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency
risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. 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. This is based on the financial assets and
financial liabilities held as at March 31, 2024 and March 31, 2023
The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post¬
employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the
relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks.
The Company's activities expose it to a variety of financial risks, including interest rates.
b Commodity price risk and sensitivity
The Company is exposed to the movement in price of key raw materials in domestic and international markets.
The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials
used in operations. The Company enter into contracts for procurement of material, most of the transactions
are short term fixed price contract and a few transactions are long term fixed price contracts.
c Financial instruments and cash deposits
The Company considers factors such as track record, size of the institution, market reputation and service
standards to select the banks with which balances and deposits are maintained. The Company does not
maintain significant cash and deposit balances other than those required for its day to day operations.
d Competition and price risk
The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has
competitive advantage in terms of high quality products and by continuously upgrading its expertise and range
of products to meet the needs of its customers.
ii 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, and arises principally from the Company's receivables from customers,
loans and investment in debt securities. Credit risk is managed through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment
that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Company's maximum exposure to credit risk as at 31st March, 2024 and 1st April, 2023 is the carrying
value of each class of financial assets.
a Trade and Other Receivables
Customer credit risk for printed circuits board sales is managed by entering into sale agreements in the case
of sale of finished units, sale agreements are executed only upon/against full payment thereby substantially
eliminating the Company's credit risk in this respect.
Impairment
Expected credit loss assessment for customers as at 31st March 2024 and 31st March 23:
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to
determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not
reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company
have not undergone any substantial change, the Company expects the historical trend of minimal credit losses
to continue. Further, management believes that the unimpaired amounts that are past due by more than 30
days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit
risk. In view of the above, the Company believes that no provision is required as per expected credit loss
method.
iii Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses.
The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to
meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term
expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient
cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing
facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on
any of its borrowing facilities.
The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBITDA to gross
interest, debt service coverage ratio and secured coverage ratio) as mentioned in the loan agreements at
specified levels. In the event of failure to meet any of these ratios these loans become callable at the option
of lenders.
The Company's overall risk management programmed focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on the Company's financial performance.
Risk management is carried out by the treasury department under policies approved by the Board of Directors.
The treasury team identifies, evaluates and hedges financial risks in close co-operation with the Company's
operating units. The Board lays down principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, and credit risk and investment of excess
liquidity.
The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the company can be required to pay.
Fair value hierarchy
The fair value of financial instruments as disclosed above have been classified into three categories depending on
the inputs used in the
valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets
or liabilities (Level 1
measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as under:
Level 1 : Quoted prices for identical instruments in an active market;
Level 2 : Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3 : Inputs which are not based on observable market data.
37 Additional Regulatory Information as required per Schedule III
i) Details of Benami Property Held
No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii) Wilful Defaulter
The Company has not been declared Wilful Defaulter by any Bank, Financial Institution, Government or any
Government Authority.
iii) Relationship with Struck-off Companies
The Company has no transactions with any company which has been struck off under Companies Act, 2013 or
Companies Act, 1956.
iv) Compliance with Number of Layers of Companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
v) Compliance with Approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact in the current
or previous financial year.
vi) Utilisation of Borrowed Funds and Share Premium
(I) 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 whether recorded in writing or otherwise
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.
(II) 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 Company ('Ultimate Beneficiaries') or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) 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.
(viii) 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.
(ix) Valuation of Property, Plant and Equipment, Right-of-use Assets, Investment Properties and
Intangible Assets
The Company has not revalued its Property, Plant and Equipment, Right-of-use Assets, Investment Properties
or
Intangible Assets during the current or previous year.
(x) The Company uses a standard accounting software for maintaining its books of account which has a feature of
recording audit trail of transactions, creating an edit log of each change made in the books of accounts along
with the date when such changes were made and also ensuring that the audit trail cannot be disabled. This has
been confirmed by the software provider. Further, the audit trail has been preserved by the company as per
the statutory requirements for record retention.
38 Approval of Financial Statements:
The Financial Statements were approved for issue by the Board of Directors on 25th May, 2024
39 Previous year's figures have been regrouped / re-arranged / recast wherever necessary.
As per our Report of even date For and on behalf of the Board
For DKP & Associates Abhay B. Doshi Rajiv B. Doshi
Chartered Accountants (Managing Director) (Executive Director)
Firm Registration No. : 126305W DIN : 00040644 DIN : 00651098
Deepak Doshi Prema Radhakrishnan Mansi Gupta
Partner (CFO) (Company Secretary)
Membership No. 037148 PAN: AGJPR5809H Reg.No: ACS 63604
Place : Mumbai Place : Mumbai
Date : 25th May, 2024 Date : 25th May, 2024
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