1.2.7 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 benefit
and the Company will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle
the present obligation, its carrying amount is the present value of those cash flows (when the effect
ofthetimevalueofmoneyismaterial).When some or all of the economic benefits required to settle a
provision are expected to be recovered from a third party, a receivable is recognised as an asset if
it is virtually certain that reimbursements will be received and the receivable can be measured
reliably.
Contingent liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 the
obligation ora reliable estimate of the amount cannot be made.
Contingent assets
Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an
inflow of economic benefits is probable.
1.2.8 Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash on hand, deposits held at call with financial institutions, other short-term, highly liquid invest¬
ments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the balance sheet.
1.2.9 Earnings per Share
Basic earnings per share are computed by dividing the net profit after tax attributable to equity
shareholders of the Company by the weighted average number of Equity Shares outstandingduring
the period.
Diluted earnings per share is computed by dividing the profit aftertax by the weighted average number
of Equity Shares considered for deriving basic earnings pershare and the weighted average number of
Equity Shares thatcould have been issued upon conversion of all dilutive potentialEquity Shares.
Potential shares are considered as antidilutive when their conversion to ordinary shares would increase
earnings per share or decrease loss per share from continuing operations
1.2.10 Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.
A. Financial Assets
(i) Classification
The company classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and
• those measured at amortised cost.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income. For investments in debt instruments, this will depend on the business model
in which the investment is held. For investments in equity instruments, this will depend on whether
the company has made an irrevocable election at the time of initial recognition to account for the
equity investment atfair value through other comprehensive income.
(ii) Investment in Equity of Associates
The Company records the investments in Associates at cost less impairment loss, if any.
(iii) Financial Assets - Other than investment in associates
Financial assets other than investment in associate comprise of investments in equity (including
investments in equity oriented mutual funds) and, trade receivables, cash and cash equivalents and
other financial assets.
(iv) Initial recognition and Measurement
At initial recognition, the company measures a financial asset at its fair value and in the case of a
financial asset not recorded at fair value through profit or loss, fair value plus transaction costs that
are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or
loss
(v) Classification and subsequent measurement
The company classifies its financial assets in the following measurement categories:
• Financial assets measured at amortised cost and
• Financial assets measured subsequently at fair value (either through other
comprehensive income, or through profit or loss), and
The classification depends on the entity's business model for managing the financial assets and the
contractual cash flow characteristics of the Financial Assets
_ • Financial assets measured at amortized cost:
Financial assets held within a business model whose objective is to hold financial assetsin order to
collect contractual cash flows and the contractual terms of the financialasset give rise on specified
dates to cash flows that are solely payments of principaland interest on the principal amount outstanding
are measured at amortizedcost using effective interest rate (EIR)method. The EIR amortization is
recognizedas finance income in the statement of profit and loss.
The Company while applying above criteria has classified the following at amortized cost
(a) Trade receivable
(b) Other financial assets
• Financial assets measured at Fair value through other comprehensive income lFVTOCI)
Financial assets that are held within a business model whose objective is achieved by both collecting
contractual cash flow and selling financial asset and the contractual terms of financial assets give rise
on specified dates to cash flow that are solely payments of principal and interest on the principal
amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets
at FVTOCI are recognized in other comprehensive income.
• Financial asset at Fair value through Profit or Loss (FVTPL)
Financial assets are measured at fair value through Profit and loss if it does not meetthe criteria for
classification as measured at amortized cost or at fair value throughother comprehensive income. All
fair value changes are recognized in the Statement of Profit and loss.
(vi) Investments in Equities and Equity mutual funds
Fair Value through Other Comprehensive Income (FVOCI)
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are
held for trading and contingent consideration recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL.
For all other equity instruments, the Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company makes such election on an
instrument -by-instrument basis. The classification is made on initial recognition and is irrevocable.
Where the management has elected to present fair value changes (gains and losses) on equity
investments in other comprehensive income, they are measured at fair value with gains and losses
arising from changes in fair value recognized in other comprehensive income and accumulated in the
'Fair value changes for equity instruments through other comprehensive income'.
There is no subsequent reclassification / recycling of fair value gains and losses to Statement of Profit
or Loss even on derecognition / sale of the Investments.However, the Company may transfer the
cumulative gain or loss within equity
Dividends from such investments are recognised in profit or loss as other income when the company's
right to receive payments isestablished.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are
not reported separately from other changes in fair value.
Fair value through profit or loss (FVTPL)
Equity instruments held for trading are classified as FTVPL and are measured at fair value with all
changes recognised in the Statement of Profit or Loss.
(vii) De-recognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party.
On derecognition of a financial asset in its entirety (except for equity instruments designated as (FVTOCI),
the difference between the asset's carrying amount and the sum of the consideration received and
receivable is recognised in the Statement of Profit and Loss
(viii) Impairment of financial assets
Trade receivables under IND AS 109, investments in debt instruments that are carried at amortized
cost, investments in debt instruments that are carried at FVTOCI are tested for impairment based on
the expected credit losses for their respective financial asset
> Trade Receivable
The Company applies the expected credit loss model for recognizing impairment loss on financial
assets measured at amortised cost, trade receivables and other contractual rights to receive cash or
another financial asset.
For trade receivables or any contractual right to receive cash or another financial asset that results
from transactions that are within the scope of Ind AS 115, the Company follows 'simplified approach'
and measures the loss allowance at an amount equal to lifetime expected credit losses. This impairment
allowance is computed based on historical credit loss experience and management assessment.
> Other financial assets
Other financial assets are tested for impairment and expected credit losses are measured at an amount
equal to 12 month expected credit loss. If the credit risk on the financial asset has increased significantly
since initial recognition, then the expected credit losses are measured at an amount equal to life-time
expected credit loss
B. Financial liabilities and equity instruments
(i) Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.
(ii) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds
received, net of direct issue costs.
(iii) Financial Liabilities - Initial recognition and measurement
All financial liabilities are recognized initially at fair value plus any transaction cost that are
attributable to the acquisition of financial liability except financial liabilities at fair value through profit
and loss which are initially measured at fair value.
(iv) Subsequent measurement
The financial liabilities are classified for subsequent measurement into following categories
• at amortized cost
• at fair value through profit and loss
Amortised Cost - Loans and Borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in the Statement
of Profit and Loss when the liabilities are derecognised. Amortised 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 amortisation is included as finance costs in the Statement of Profit and Loss. This category
generally applies to interest-bearing loans and borrowings.
c. Useful lives of property, plant and equipment and intangibleassets
The Company has estimated useful life of each class of assets based on the nature of assets, the
estimated usage of the asset, the operating condition of the asset, past history of replacement,
anticipated technological changes, etc. The Company reviews the carrying amount of property, plant
and equipment and Intangible assets at the end of each reporting period. This reassessment may
result in change in depreciation expense in future periods.
d. Impairment testing
Property, plant and equipment and Intangible assets are tested for impairment when events occur or
changes in circumstances indicate that the recoverable amount of the cash generating unit is less than
its carrying value. The recoverable amount of cash generating units is higher of fair value less costs of
disposal and its value-in-use. The calculation involves use of significant estimates and assumptions
which includes turnover and earnings multiples, growth rates and net margins used to calculate
projected future cash flows, risk-adjusted discount rate, future economic and market conditions.
e. Cash Flow statements
Cash Flow Statement is prepared segregating the cash flows from operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method. Using indirect method,
the net profit is adjusted for the effects of
(i) Transactions of non-cash nature.
(ii) Any deferrals or accruals of past or future operating cash receipts or payments and
(iii) Items of income or expense associated with investing or financing cash flows.
Cash and cash equivalents (including bank balances) are reflected as such in cash flow statement.
Note-32: Prior period error
“The company held 3, SO,800 scares of Wunoth Indust lies Umi ted in the previous year. There was an omission
of E>8rlB8 nu mber of sHe res in the previous year. During the year, this prior p ericnf error in the account! ng wss
rectified The total investment in Munath Industries Limited is 4,43,9&3 equity shares.
The shares, with a face va lue of Rs.lD, had been revalued du ring the previous year at 8s.115 per share, reflecting
an increase of Rs.105 per share in fair value.
In accordance with the rarjui rements of Ind AS 105 - ""Financial Instruments"" and Incf AS S - ""Accounting
Policies, Changes in Accounting Estimates and Errors"", the adj ustrrient for the increased number oF shares to
the ejcterrt of its face vaiue was made in the opening balance qt retained earnings. The gain due to the fair
valuation amounting to Rs.ias pershane has been recognized in Cther Comprehensive Income [QCI)as required
by the standard. “
Note-33: FINANCIAL INSTRUMENTS
33.1 Financial Risk Management
The Company's business activities expose it to a variety of financial risks, namely market risk, credit risk and
liquidity risk,. The Company's senior management has the overall responsibility for the establishment and
oversight of the Company's risk management framework. The key risks and mitigating actions are also placed
before the Audit Committee of the Company. The Company's risk management policies are established to
identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor
risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes
in market conditions and the Company's activities.
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 prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk
and commodity risk.The Company do not have any exposure to foreign exchange rate and equity price risk,
(a) 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
^Riiff^R^AREil^SilTfl|hlhK)^e»4^^btelHnsd«fe%)3Vtfli^R^W£^1lMhse«M»FtHf§t<Hher variables
were held constant, the impact would have been as follows:
Note 31: Investment Interest in Associate :-
(b) Foreign Currency Risk
Foreign currency risk is the risk that the fair value of 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 Company's operating activities which is Nil. Since the company do not have any
transaction in Foreign currency.
Hedging and foreign currency sensitivity analysis
There are no foreign currency exposures and hence hedging requirements and sensitivity analysis does not
arise for the year 2024-2025 ( Nil for 2023-24)
(c) Commodity Price Risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the on¬
going purchase or continuous supply of items dealt with by the Company. Therefore, the Company has policy
of monitoring its purchases closely to optimise the price when the company purchases the commodity.
B.Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to financial loss.
Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as
well as concentration of risks.
The Investments mainly consists of Equity Investments in quoted Equity Shares listed in Bombay Stock Exchange
/ National Stock Exchange. The Company has investments for a long term and continuously monitoring the
same. The outlook of Indian capital markets are positive and the company do not foresee any risk which can
not be mitigated
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified
as trade receivables, loans and advances and cash and cash equivalents amounting to Rs.1,072.51 thousands
(Previous year Rs.921.77 thousands). None of the other financial instruments of the Company result in material
concentration of credit risk.
Cash and cash equivalents with banks has high credit-rating assigned to them.
33.2 Trade Receivables
Customer credit risk is managed as per the Company's established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on a detailed assessment and
individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are
regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition,
a large number of minor receivables are grouped into homogenous groups and assessed for impairment
collectively.
The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect
to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent
markets.
The Company follows simplified approach for recognition of impairment loss allowance on trade receivables
which do not contain a significant financing component.
Financial assets that were written off during the reporting period and earlier periods are still subject to
enforcement activity by the Management
33.3 Liquidity Risk
The Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider
the maturity of its financial investments, committed funding and projected cash flows from operations. The
Company's objective is to provide financial resources to meet its business objectives in a timely, cost effective
and reliable manner and to manage its capital structure.
A balance between continuity of funding and flexibility is maintained through continued support from lenders
and trade creditors.
During the year, the Company has made repayment of principal and interest on borrowings on or before due
dates. The Company did not have any defaults of principal and interest as on the reporting date.
The table below summarises the maturity profile of the Company's financial liability based on contractual
undiscounted payment and financial assets based on contractual undiscounted receipts.
Financial Liabilities i
33.6 Capital Management:
The Company's capital comprises Equity Share Capital, retained earnings and other equity attributable to equity
holde Rs The primary objective of Company's capital management is to maximize shareholders value. The
Company manages its capital and makes adjustment to it in light of the changes in economic and market
conditions. The Company does so by adjusting dividend paid to shareholders. The total Paid up Equity Share
Capital as on March 31, 2025 is Rs 99,513.43 thousands (Previous Year: Rs 99,513.43 thousands).
The Company's overall strategy remains unchanged from previous year.
The Company sets the amount of capital required on the basis of annual business and long-term operating
plans which include capital and other strategic investments. The funding requirements are met through a mixture
of term borrowings to meet anticipated funding requirements.
The Company is not subjected to any externally imposed capital requirements
The Company monitors capital on the basis of debt to equity ratio and its gearing ratio is as below:
Note-35: Ind AS 115 Revenue from Contracts with Customers
The company has not earned any Income during the year
Note-36: Additional Disclosures
a. There are no transactions which are not recorded in the books of accounts that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
b. The Company does not have any balance or transactions with companies struck off under section 248 of
Companies Act, 2013 or section 560 of Companies Act, 1956.
c. The Provisions of Companies Social Responsibility under Section 135 of the Companies Act, 2013 are not
applicable to the Company for the year.
d. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
e. The company has not traded or invested in Crypto or virtual currency during the year(PY Nil).
f. The Company does not holds any Benami property and there are no proceedings against the company under
the benami transactions (prohibition) Act 1988 (as amended from time to time).
g. The Company has not been declared as a willful defaulter (as per RBI circular) by any bank or financial institution
or any other lender at anytime during the financial year or after the end of the reporting period.
h. To the best of our knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, 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 provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries;
i. To the best of our knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been received by the company form any person(s) or entity(ies), including foreign entities ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
j. There are no amounts due to be remitted to Investors Education and Protection Fund (PY Nil).
k. The company has carried out impairment exercise as required by Ind AS 36 - Impairment of Assets and such
exercise did not result in any adjustment in the books of accounts towards impairment loss as at the year
end.
l. The company does not have any subsidiary and hence the reporting requirement with respect to Number of
layer of companies is not applicable.
m. During the Financial Year Company has not revalued any of its Property Plant and Equipment
n. The Company does not have any investment properties as at March 31,2025 8i March 31,2024 as defined in
Ind AS 40
o. The Company has not granted any loans (or) advances in the nature of Loans to Promoters, Directors, Key
Managerial Personnels(KMP), and the related Parties, either severally or jointly with any other person.
p. The Company has borrowings from bank on the basis of security of current assets which are inventory and
trade receivables. The Current Asset Statements furnished to the Bank include Trade Receivables which in
the opinion of the management are recoverable but considered as bad debts in the books in compliance
with applicable accounting Standards due to significant increase in credit risk. To that extent the Trade
receivables as stated in the Financial Statement is lesser than the amount furnished to the Bank and is not in
agreement with the books of account.
The current asset statements furnished to the bank include the value of inventory that has been partially
written off in the books of accounts, as well as stock that is not recorded in the books. Accordingly, the
inventory reported in the financial statements is lower than the amount disclosed to the bank, and the
figures are not in agreement with the books of accounts.
q. The Board of Directors have also reviewed the reliasable value of all the current assets of the Company and
have confirmed that the value of such assets in the ordinary course of business will not be less than the value
at which these are recognized in the financial statements. In addition board has also confirmed the carrying
value of non current assets in the Financial Statements.
r. The title deeds of immovable property are held in the name of the erstwhile name of the Company i.e M/s
Munoth Investments Ltd
s. Disclosure pursuant to SEBI (Listing Obligation and Disclosure Requirements) regulations 2015:
'There were no Loan amounts due from Subsidiaries/ Associates or Firms / Companies in which the Directors
are interested"
t. The figures for the previous year have been reclassified/ regrouped wherever necessary for better
understanding and comparability.
1. Repayment of borrowings includes repayment of short-term borrowings
2. Net Profit after tax and before tax does not include other comprehensive income.
3. Working Capital is the difference between Current Asset and Current Liabilities
4. Other Equity does not include other comprehensive income.
Note 34: Previous Year Figures
The previous year's figures of Balance Sheet have been regrouped, reclassified wherever necessary. Amounts and other disclosures for
the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the
amounts and other disclosures relating to the current year. Figures are rounded off to the nearest thousand. Figures in bracket
represent negative figures.
The Financial Statements were approved for issue by the Board of Directos on
As per our report of even date
For Kumbhat and Co LLP For on behalf of the board of directors of
Chartered Accountants Munoth Communication Ltd
FRN:001609S
Lalchand Munoth Jaswant Munoth Bharat Munoth
[M.V. Chandramouleeswaran] [DIN:01693640] [DIN:00769545] [DIN:00769588]
Partner [Chairman] [Managing Director] [ Director]
M NO: 202629
UDIN: 25202629BMIHRJ1204
Place: Chennai S Anantha Padmanabhan JinalJain
Date: 30.05.2025 [CFO] [Company Secretary]
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