1.15. Provisions, contingent liabilities, contingent assets
A provision is recognized when the Company has a present obligation (legal or constructive] as a result
of a past event and it is probable that an outflow of resources will be required to settle the obligation, in
respect of which a reliable estimate can be made. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk 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. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not require an outflow of resources. When there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
The Company does not recognize a contingent asset but discloses its existence in the financial statements
if the inflow of economic benefits is probable. However, when the realization of income is virtually
certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.
Provisions, contingent liabilities, contingent assets, and commitments are reviewed at each balance sheet
date.
1.16. Earnings per share
Basic & Diluted earnings per share are computed using the net profit for the year attributable to the
shareholders and the weighted average number of shares outstanding during the year.
1.17. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs were directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss and are recognized
immediately in profit or loss.
Financial Investments
Non-Current Investments include Investment in Partnership Firm which is stated as Original Capital
invested, Share of profit earned by the Firm and the interest earned on the Capital.
II. OTHER DISCLOSURES
1. (a] The Company had paid Rs. 12 Crores to Primus Retail (P) Ltd. pursuant to the BTA and
Shares were issued for consideration other than cash prior to the transfer of Brand & Business
assets. However, Primus Retail Pvt. Ltd. could not honor the Agreement due to Court order.
Therefore, the amount of Rs. 12 Crores paid for the contract stands recoverable which is treated
as an Advance to be recovered in cash or kind.
(b) The Primus Retail P. L. has been declared under liquidation, hence, the advance of Rs. 12 Crores
has become doubtful in nature. No provision of doubtful advances is made in the books of
accounts since Management is putting efforts for recovery or settlement with the concerned
persons on account of the liquidation of Primus Retail Pvt. Ltd.
(c) The Company had given business advance to one party in the earlier year for which the
receivable is doubtful in nature. No provision of doubtful advances is made in the books of
accounts since Management is putting efforts into recovery or settlement.
2. The Company holds some old investments in Equity Shares of companies of around Rs. 1.87 Lakhs.
However, the Company has not fair valued the unquoted investments, and the investments are
carried at cost. The Management is in the process of getting a valuation of the companies. Further,
no provision for diminution in the value of investments is made for the same.
3. (a) Contingent liability
Income Tax Dues for AY 2013-14 of Rs. 158 lakhs pending before CIT (A).
(b) Capital Commitments
23921 Partly paid CC Preference Shares in Compliance Kart Private Ltd of Rs.31.35 each, Rs.0.5
each paid-up.
4. The Company has no significant business activities at present. Therefore, the Company has not
provided for any deferred taxes on Business losses made during the year.
5. SEGMENT REPORTING (as per Ind AS 108 issued by I.C.A.I.):
The Company has mainly one reportable business segment and hence no further disclosures is
required under Ind AS - 108 on segment reporting.
6. The outstanding balance of assets considered good and liabilities are actuals as they appear in the
books of accounts and are subject to reconciliation/adjustments if any, and confirmation by
respective parties.
7. RELATED PARTY DISCLOSURE (as per Ind AS - 24 issued by I.C.A.I):
The transaction with the related party is mentioned in the specific Notes, as applicable
8. Previous year's figures are regrouped and/or rearranged, wherever necessary.
As per our Report of the even date attached
For S. V. BHAT & CO. FOR AND ON BEHALF OF THE BOARD
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No. 101298W) MR. SALIM P. GOVANI MRS. SAUSAN BUKHARI
PROMOTER DIRECTOR DIRECTOR
SWATI SADANAND BHAT MR. HARSH JAVERI Ms. Kratika Sharma
PARTNER INDEPENDENT DIRECTOR Company Secretary
(Membership No.: 152110)
PLACE: MUMBAI PLACE: MUMBAI
DATED: 29th May,2025 DATED: 29th May,2025
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