vii) Provisions and contingencies
(a) Provisions
Provisions are recognizedwhen 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 of the amount of the obligation. Provisions are reviewed at each reporting
period and are adjusted to reflect the current best estimateas per IND AS 37
(b) Contingencies
A disclosure for contingent liability is made when there is possible obligation arising from past event the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or a present obligation that arises from past events where
it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the
amount cannot be made.
A disclosure for contingent assets is also made when there is possibility of an inflow of economic benefits to
the entity which arise from unplanned or other unexpected events.
Contingent liabilities and contingent assets are reviewed at each balance sheet date.
viii) Earnings per share:
Basic earnings per share is computed using the net profit for the year attributable to the shareholders’ and
weighted average number of shares outstanding during the year as per IND AS 33
ix) Income Taxes:
Income tax comprises current tax (including MAT) and deferred tax. Income tax expenses is recognized in net
profit in statement of Profit and loss extent to the extent that it relates to items recognizeddirectly in other
comprehensive income/equity, in which case it is recognized in other comprehensive income/equity.
Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the
provisions of Income Tax Act, 1961.Current tax asset and liabilities are offset when company has a legally
enforceable right to set off the recognized amount and also intends to settle on net basis.
Deferred income tax assets and liabilities are recognizedfor deductible and taxable temporary difference arises
between the tax basses of assets and liabilities and their carrying amount in the financial statement
Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that
sufficient taxable profit will be available against which those deductible temporary differences can be utilised.
Deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that
it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax is measured at the tax rates and tax law that that have been enacted or substantively enacted by
the balance sheet date and are expected to apply to taxable income in the year in which those temporary
difference is expected to be recovered or settled as per IND AS 12.
x) Financial instruments:
Initial measurement
Financial instrument is recognizedas soon as the company become a party to the contractual provision of the
instruments. All Financial assets and financial liabilities are measured at fair value on initial recognition, except
for trade receivable which are initially measured at transaction price. Transaction cost that are directly
attributable to the acquisition or issue of financial instrument (other than financial measured at fair value
through profit or loss) are added or deducted from the value of the financial instrument, as appropriate, on
initial recognition.
Financial Instrument sated as financial assets or financial liabilities are generally not offset, and they are only
offset when a legal right to set off exist at that and settlement on a net basis is intended as per IND AS 109
Subsequent measurement
Financial assets:
Subsequent measurement of financial assets depends on their classification as follows: -
(a) Financial asset carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within business model whose
objective is to hold the asset in order to collect contractual cash flow and the contractual term of the asset give
rise on specified dates to cash flow that are solely payment of principal and interest on the principal amount
outstanding.
(b) Financial asset carried at Fair Value through other comprehensive income
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 flow and selling financial
asset the contractual term of the asset give rise on specified dates to cash flow that are solely payment of
principal and interest on the principal amount outstanding.
For all other equity instrument, the company make irrevocable election to present in other comprehensive
income subsequent change in fair value. The company makes such election on an instrument- to- instrument
basis.
(c) Financial asset carried at Fair Value through Profit and loss
A financial asset which is not classified in any of the above category is subsequently measured at fair value
through profit and loss.
Financial liabilities and equity instruments:
Debts and equity instrument issued by a company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangement and the definition of a financial liability and an
equity instruments.
a) . Equity Instruments
An equity instrument is any contract that an evidence and residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments issued by the company are recognized at the proceeds
received, net of direct issue costs.
b) Financial Liabilities
All Financial liabilities are subsequently measured at amortised cost using the Effective interest method.
De-recognition of financial Instrument: -
A financial asset is primarily derecognized when the contractual right to the cash flow from the financial asset
expires and it transfers the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
xi). Impairment
A) . Financial Asset
The Company measures the expected credit loss associated with its assets based on historical trend, industry
practices and the business environment in which the entity operates or any other appropriate basis. The
impairment methodology applied depends on whether there has been a significant increase in credit risk.
B) . Non-Financial Asset
(a) Property, plant and equipment and Intangible asset
The Company does not have any fixed assets and accordingly there is no impairment.
(b) Critical accounting estimates, assumptions and judgements
In the process of applying the Company’s accounting policies, management has made the following estimates,
assumptions and judgements, which have significant effect on the amounts recognizedin the financial
statement. Uncertainty about these assumptions and estimates could result in outcome that require a material
adjustment to assets or liabilities affected in future periods.
i) Income taxes
The Company’s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for
the purpose of paying advance tax, determining the provision for income taxes, including amount expected to
be paid/recovered for uncertain tax positions
ii) Contingencies
Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.
iii) Allowance for uncollected accounts receivable and advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts. Individual trade receivables and advances are written off
when management deems them not to be collectible. Impairment is made on the expected credit losses, which
are the present value of the cash shortfall over the expected life of the financial assets.
iv) 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, or when annual impairment testing for an asset is required, the Company estimates the
asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less
costs of disposal and its value in use. 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.
v) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected
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.
vi) Fair value measurement of financial instruments.
When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques,
including thediscounted cash flow model, which involve various judgements and assumptions.
23. There is nothing to be disclosed under-Ind-AS 108 - Segment Reporting since there is no business segment
or geographical segment which is a reportable segment based on the definitions contained in the accounting
standard.
Deferred Tax has been created as per IND-AS-12 issued by Institute of Chartered Accountants of India.
In accordance with IND AS 12 - Income Taxes issued by ministry of corporate affairs, the company has
accounted for the Deferred Tax. Major Components of Deferred Tax Assets and Liabilities are - NIL
24. The debit and credit balances standing in the name of parties are subject to confirmation from them.
25. In the opinion of the Board of Directors, the current assets, loans & advances are fully realizable at the value
stated, if realized in the ordinary course of business. The provisions for all known liabilities are adequate in
the opinion of board.
34 Borrowings from Banks/FI on the basis of security of Current Assets: The Company does not have
any borrowings from banks. Hence the question of Quarterly Returns or Statements of Current Assets filed
by the Company with Banks/FI, are in agreement with books of accounts does not arise.
35. The company has not been declared as willful defaulter by any bank of financial institution or any other
lender.
36. Transactions with Struck-off Companies :The company has notentered into any transactions with struck
off companiesunder section 248 of the Companies Act 2013 or Section 560 of Companies Act 1956.
37. Registration of Charges or Satisfaction :The company does not have any charges.
38. Compliance with layers of the companies:-
The company has no layer of companies.
39. Scheme orArrangement :During the year, the company has not entered into any scheme or arrangement
in terms of Section 230 to 237 of the Companies Act 2013
40. During the year no income was surrendered or disclosed as income in the tax Assessments.
41. The company has not dealt in Crypto Currency during the year.
42. The Company has not advanced or loaned or invested funds to any other person or entities with an
understandingthat the intermediary will invest or provide any guarantee, security or the like to or on behalf
of ultimate beneficiaries.
43. The Company has not received any fund from any person (s) or entity(s), including foreign entities(Funding
party)with the understanding that the company shall directly or indirectly investor provide any guarantee,
security or the liketo or on behalf of funding party.
44. Use of Borrowed Funds :The Company has not taken any borrowings from banks and Financial
Institutions. Hence the question of its usage does not arise.
45. Debit and credit balances standing in the name of the parties are subject to confirmation from them.
46. In the opinion of the Board, all current assets have a value on realization in the ordinary course of business
which is equal to the amount at which they are stated in financial statements.
47. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
48. Previous year figures have been regrouped/ reclassified wherever necessary.
49-A Financial instruments
(All amounts in INR Hundred, unless otherwise stated)
(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.
49-B Financial 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
Credit risk management
Credit risk rating
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.
Trade receivables
Company has no trade receivables.
Other financial assets measured at amortised cost
Other financial assets measured at amortized cost . 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.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities andthe
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.
Maturities of financial liabilities
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is not significant.
b) Price risk
Exposure
The Company’s exposure to price risk arises is nil
As per our report of even date attached.
For M/s. Nemani Garg Agarwal & Co. For B. P. CAPITAL LIMITED
Chartered Accountants
Firm Reg. No. 010192N
Sd/- Sd/- Sd/- Sd/- Sd/-
(J.M. Khandelwal) Aditya Aggarwal Rachit Garg Shatrughan Sahu Sakshi Gupta
Partner Mg. Director Director CFO Company Secretary
M.No. 074267 DIN: 08982957 DIN :07574194 PAN: BAQPS1603E M.No. 29348
UDIN: 24074267BKHGUR1694
Place: Sohna, Haryana
Date: 29.5.2024
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