iv) Provisions and contingent liabilties
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assumptions of the time value of money and the risks specific to the liability. The
unwinding of discount is recognized as finance cost.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.
A provision for onerous contract is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the
Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot
be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote.
v) Borrowing costs
Borrowing costs directly attributable to the acquisition or construction of those property, plant and equipment
which necessarily takes a substantial period of time to get ready for their intended use are capitalised. All other
borrowing costs are expensed in the period in which they inccur in the statement of profit and loss.
vi) Revenue
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair
value of the consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duties collected on behalf of the government.
The following specific recognition criteria must also be met before revenue is recognized:
Sale of products
Revenue from the sale of products is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer. Revenue from the sale of products is measured at the fair value of the
consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Sale of services
Revenue from services are recognised as the related services are performed and in accordance with the terms of
the agreement. When there is uncertainity as to measurment or ultimate collectability, revenue recognision is
postponed untill such uncertainity resolved.
Interest
Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that
discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying
amount of the financial asset. Interest income is included under the head “Other income” in the statement of
profit and loss.
Dividend
Dividend income is recognized when the Company’s right to receive the payment is established, which is
generally when the shareholders approve the dividend.
vii) Income tax
Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates
to a business combination or to an item recognised directly in equity or in other comprehensive income.
a) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any related to
income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.
b) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred
tax is also recognised in respect of carried forward tax losses and tax credits.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used.
Deferred tax assets recognised or unrecognised are reviewed at each reporting date and are recognised / reduced
to the extent that it is probable / no longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the
liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred tax assets and
liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net
basis.
c) Minimum Alternative Tax (MAT)
Minimum Alternative Tax (MAT) is recognized as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT
credit becomes eligible to be recognized as an asset thesaid asset is created by way of credit to the statement of
profit and loss and included in deferred tax assets. The Company reviews the same at each balance sheet date and
writes down the carrying amount of MAT entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal income tax during the specified period.
viii) Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding after adjusting for the effects of all potential dilutive ordinary shares.
ix) Statement of Cash flow
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company are segregated. The Company considers all highly
liquid investments that are readily convertible to known amounts of cash to be cash equivalents.
Amendment to Ind AS 7
Effective April 1, 2018, the Company adopted the amendment to Ind AS 7, which require the entities to provide
disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a
reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from
financing activities, to meet the disclosure requirement. The adoption of amendment did not have any material
x) Financial instruments
a) Recognition and initial measurement
The Company initially recognises financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are measured at fair value on initial
recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition.
Regular way purchase and sale of financial assets are accounted for at trade date.
b) Classification and subsequent measurement
Financial assets
Financial assets carried at amortised cost
A financial asset is subsequently 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.
Financial assets 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 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.
Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit
or loss.
Equity Investment
All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for
trading are classified as at FVTPL. For all other equity instruments, the Group decides to classify the same either
as at FVOCI or FVTPL. The Group makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the Other Comprehensive Income. There is no recycling of the amounts
from Other Comprehensive Income to profit and loss, even on sale of investment. However, the Group may
transfer the cumulative gain or loss within equity.
Financial liabilities
Financial liabilities are subsequently carried at amortised 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.
c) Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the right to receive the contractual cash flows in a transaction in which substantially all of
the risks and rewards of ownership of the financial assets are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not
derecognised.
The Company assesses impairment based on expected credit losses (ECL) model at an amount equal to>
• 12 months expected credit losses, or
• Lifetime expected credit losses
depending upon whether there has been a significant increase in credit risk since initial recognition. However, for
trade receivables, the company does not track the changes in credit risk. Rather, it recognizes impairment loss
allowance based on lifetime ECLs at each reporting date, right from its initial recognition
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or
expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the
modified terms are substantially different. In this case, a new financial liability based on the modified terms is
recognised at fair value. The difference between the carrying amount of the financial liability extinguished and a
new financial liabilitv with modified terms is recoenised in the statement of nrofit and loss
Impairment of financial assets
Financial assets of the company comprise of trade receivable and other receivables consisting of debt instruments
e.g., loans, debt securities, deposits, and bank balance. Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest method, less provision for
impairment. An impairment loss for trade and other receivables is established when there is objective evidence
that the company will not be able to collect all amounts due according to the original terms of the receivables.
Impairment losses if any, are recognised in profit or loss for the period.
d) Offsetting of financial instrument
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle
them on a net basis or realise the asset and settle the liability simultaneously
c) Derecognition
Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the right to receive the contractual cash flows in a transaction in which substantially all of
the risks and rewards of ownership of the financial assets are transferred or in which the Company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the
financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet but retains
either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not
derecognised.
The Company assesses impairment based on expected credit losses (ECL) model at an amount equal to>
• 12 months expected credit losses, or
• Lifetime expected credit losses
depending upon whether there has been a significant increase in credit risk since initial recognition. However, for
trade receivables, the company does not track the changes in credit risk. Rather, it recognizes impairment loss
allowance based on lifetime ECLs at each reporting date, right from its initial recognition
Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or
expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the
modified terms are substantially different. In this case, a new financial liability based on the modified terms is
recognised at fair value. The difference between the carrying amount of the financial liability extinguished and a
new financial liabilitv with modified terms is recoenised in the statement of nrofit and loss
Impairment of financial assets
Financial assets of the company comprise of trade receivable and other receivables consisting of debt instruments
e.g., loans, debt securities, deposits, and bank balance. Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest method, less provision for
impairment. An impairment loss for trade and other receivables is established when there is objective evidence
that the company will not be able to collect all amounts due according to the original terms of the receivables.
Impairment losses if any, are recognised in profit or loss for the period.
d) Offsetting of financial instrument
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet, and only
when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle
them on a net basis or realise the asset and settle the liability simultaneously
26 Financial risk management
Risk management framework
The Company’s management has overall responsibility for the establishment and oversight of the Company’s risk management framework.
The Company conducts yearly risk assessment activities 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 systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.
The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The Company has a system in place to ensure risk identification and ongoing periodic risk assessment is carried out. The Board of directors periodically monitors
the risk assessment
The Company has exposure to the following risks arising from financial instruments :
- Credit risk
- Liquidity risk
- Market risk
- Interest risk
a) Credit risk
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The Company is
exposed to credit risk from its operating activities and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments. The company generally doesn't have collateral
The carrying amounts of financial assets represent the maximum credit risk exposure. The maximum exposure to credit risk at the reporting date is as follows
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change
as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans
and borrowing.
The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of
governing / mitigation them accordingly to company's objectives and declared policies in specific context of impact thereof on various segments of financial
instruments.
d) Currency risk
The Company is exposed to currency risk to the extent that there is mismatch between the currencies in which sales, purchase are denominated and the
respective functional currencies of Company. The Company has no foreign currency transaction and so there is no currency risk.
e) Interest 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 entity’s
exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.
At the reporting date there are no interest risk to entity as having no debts at time of reporing date.
29 Contingent Liability not provided for:
Provisions are recognised when the Group 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. When the Group expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
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 risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost
Contingent liability is disclosed in the case of:
• a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,
• a present obligation arising from past events, when no reliable estimate is possible,
• a possible obligation arising from past events, unless the probability of outflow of resources is remote
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date
30 The disclosure of Ind AS 19 “Employee Benefits” is as follows:
Defined Contribution Plan
The Company has not charged any amount in the Statement of Profit and Loss dunng the financial year under defined contribution plan as employer’s contribution asere is no
liability regarding to the same.
Defined Benefit Plan
The company is no require any defined benefit plan for the employee and there is no provision regarding to the same is required.
38 The financial statements of the Company for the year ended March 31, 2024 and the transition date opening Balance Sheet as at April
01, 2023 were audited by our firm.
As per our Report of even date annexed .
For Priti V. Mehta & Company For and on behalf of the Board of Director of
Chartered Accountants Dalai Street Investments Limited
FRN . 129568W CIN:L65990PN1977PLC141282
Priti V. Mehta Murz ash Manekshana Geeta Manekshana
Proprietor Director Director
Membership No. 130514 (DIN:00207311) (DIN:03282077)
Stefanie Leena Dsilva Mahesh Deshmukh
Place: Mumbai Chief Financial Officer Company Secretary
Date: 28.5.2024 (PAN:BZVPS7926N) (PAN:CDVPD7338G)
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