ki Provisions and Contingent Liabilities
Prov’siorts are recognised when the Goto any has a present obi got >on legal or corral rue tve) as a result of a post event, it is probable that an outflow of resources, embodying economic benefits wti be required to settle the obiigaten end a reliable estimate can ba made of the amount of tho obligator. When the Company expacts some or all of a provision to bo reimbursed, "or example, under an insurance contract, the reimbursement is recognised as a separate asset, but only urfien the reimbursement is virtually ccrtan. The expense relating to a provision is presumed in the statement of profit and loss net of any reimbursement, Contingent liabilities are nol recognised but arc disclosed in (ho notes. Contingent Assets are neither recognized nor Osclosod in the teioncial statements, nil Provisioning I Wi it* -off of Assets
The Company muios provision tor Standard and Non-^ertomvng Assets as per the Non-Syslerwcalry Important Non-Banti ng Financial l Non-Deposit Accepting or Hotdng. Companies Prudential Norms | Reserve HenS> Onrc-lmm. 2015 as amended bom time « a me Tne Company also moves addlonel provision towards loan assets to the extent considered necessary, bosed on the management s best estimate Provision tor other financial sarvicas is also mads on similar basis The Company recognises loss allowances for Expected CrecM losses (ECLt) on Loens end advances so customers
ECLs are required so be measured enough o less allowance at an amount equal to
- 12-month ECL, I e mat result from those default events on (tie fin* new I ir«lrumsnt mat are poeslble wtlhn 17 month* after the reporting date, (referred to os Stage 1); or
- fui trialtme ECl i e ifetima ECl that restit from all possibw defaiei event* over me ste of live llnetseiel instrument (rstsrrsd to as Stage 2 and Stage 3|
A less silowonce for tiil lifetime ECL is required Ibr e financial instrument if the credit trek on the! fnaneie! instrument he* ncreased significantly since initial recognition and consequently for creed mp««ed fnancial assets | For all other financial instruments ECLs are measured at an amount equal So the 12-month ECL.
ECLs arc a probability-weighted osbmaco of the prosent valuo of credit losses. These are measured as the prosont valuo at the dfterence between the cash flow* due so the Company under the centred ana Im cash flows that Via Company expect* to receive __anslrg from tho woghtmg of mulbole future economic scenarios, discounted at the asset s EfR.
xiv Financial Instrumants Initial recognition
Tho company raccgn-sos tho 'financial asset and In uncial abilities when It bocomos a party to tho contractual provisions of the instruments All the 'firvancal assets sno tnanaa latxlitie-s are recognised at far value on initial recognition except for trade receivable wh«h are neially recognised art transaction pnee Transaction cost Vint are drectly attrtoixabie (o the aoquef'on of issue of 'financial asset and "financial ImbiiSes Vi at are nol at fan value through profit and Icee. are added to the fair vsAie on the nttisl recognition.
Subsequent measurement
Non derivative financial instruments
Financial Assets at amortised cost
Th« category is the most relevant to the Company All vie Loans and eerier reee-vabes under 'financial assets (except Investments i are non derivative 'financial assets with 'fixed or delerminabe payments that are not quoted in an active market. Trade receivables do nee cany any inearest and are staled at rhea nominal value as reduced by impairment amount
Financial Assets st Fair Value through Profit or LossfOthar comprehensive in corns
Instruments included within The F VTPL category are measured at fair value wh all changes recogrvred in the Statement of Profit and Loss
If the company deeds* to classify an instrument as at FVTOCI tlwn all fair value changes on the instrument excluding dividends are recognized In the C CI There « no recycling of the amounts from OCI to P&L even on saie of investment. However the oompeny may transfer the cumulative gam or loss within equity.
Financial liabilities
The maaauramanl at 'financial tabliUe* depend* on their desufic-sUtn ee described below Trade A other payable
After initial recognition trade and other payables maturing within one year from tire Setetnoe sheet dew ti e carrying amounts approximate toy value due to the short maturity of these instruments
Derecognition
A 'financial liabflty is dcrocognsad when Vto obligation under tho liability is discharged or cancoted or expires When an oxseng Ýfinancial liability » replaced by anctherfrom vie same lender on substantially different terms or the terms of an cx«tng 'ability are sutietamialty modified, such an exchange or modification « treated as derecognition of tho eng in a liability and the recognition of a new liabfity Tho difference in the respective cartyng amounts is recognised m the statement of profit or loss
xv Cash and Cash Equivalents
Cash and cash equivalent the balance sheet compose cash at banks and on hand and shoo temn deposes whch are subject to an insignificant risk of changes « value ny, Employee Benefits
Company does not nave any policy lor Leave Encashment or any other pension pftans'sehemes All the unused leaves outstanding as on 31st March gets lapsed and does not gel accumulated
xvs Earning Per Share
Basic arid diluted earnings per share are computed by dividing the net profit attributable to equity shareholders lor the year by the weghted average number of ecudy shares outstanding during die year xvw cash Flow
The Invesbng and financing activities in cash flow statement do not have a deed impact on currant cash flows although Stay do atfect the capital and assets structure of an entry The Company has disclosed these transactions, to the extent materia in notes to cash flow statement
xix Leases
The Company s lease asset classes primarily oonsist of leases tor land and buihSmgs T he Company at the moaphon of a contract, assesses whether (he contract is a lease or not ease A contract is. or contains, a lease if the contract conveys Ihe right to control Lie use oi an identified asset for a lime in exchange (or a consideration
The Company recogrtzes a rght-of-uee asset and a lease liability at the lease commencement date. The nght-of-o*e asset is initially measured at cost which comprise five inilia amount of the lease liability adlusted for any lease payments made at cr before the commencement date, plus any initial direct costs incurred and an estmate of costs to rJsnvanlie and remove the underlying asset or to restore Ihe underlying asset or the site on which it is faceted less any lease incentives receivers.
The right-of-uae asset is subsequently depreciated usng Ihe straignHIne method from the commencement date to the end of the lease term
The lease liability ie initially measured at Ihe present value of Ihe lease payments that are not paid at the commencement dale, discounted using the Company s incremental borrowing rate, tt is re-measured when there is charge In future lease payments at bung from a change in an index or rarte. if there is a charge m the Company * estimate of the amount expected io be payable under a resdual value guarantee, or if Ihe Company changes its assessment of whether II vail exercae a purchase extension or termination op ton When the lease liability is re-measured in tfiis way, a corresponding adjustment is made lo Ihe carrying amount of the rvgntat-us# asset. or is raccrdee in profit or loss * tha canyng amount of tn« ngnt-of-use asset has harm reduced to zero
The Company has a acted not to recognize nghl-ol-use assets and lease liabilities tor short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company tecogrue Ihe lease payments associated with these leases as an expense over the lease term.
xx Segment Reporting
The company idenbfes primary segments based on Ihe dominant source, nahre of raks and returns and the internal organization atx) management structure The operefog segments are the segments tor which eeparete hnencie management in deciding how to atocato resources and si assessing performance The accountng policies adopted tor segment reporting are in line with Ihe accounting policies of tho company. Segment revenue, segment expenses, segment assets and segment Sabltbes harve been _ idantiSod to fragments on the basts ot ttwnr retehonstxp to tea operating actrvrt«ss of tha segment_
xi The Company has adopted Ind AS 116 Leases with the date of initial application being September 1.2021. Ind AS 116 replaces Ind AS 17 - Leases and related interpretation and guidance. The Company has applied Ind AS 116 using the modified retrospective approach, As a result, the comparative information has not been restated In adopting Ind AS 116, the Company has applied the below practical expedients.
The Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics
The Company has treated the leases with remaining lease term of less than 12 months as if they were 'short term leases '
The Company has not applied the requirements of Ind AS 116 for leases of low value assets
The Company has excluded the initial direct costs from measurement of the right-of-use asset at the date of transition.
The Company has used hindsight, in determining the lease term if the contract contains options to extend or terminate the lease.
On transition to Ind AS 116. the Company recognized right-of-use assets amounting to Rs 1.82,500 relaxed accumulated depreciation amounting to Rs 28,31.700, lease liabilities amounting to Rs 1,82.500
xii The Company has not received any information / memorandum from the suppliers ( as required to be filed by Suppliers / Vendors
with the notified authority under Micro,Small and Medium Enterprises Development Act,2006) claiming their status as Micro.Small or Medium Enterpnses. Consequently, the amount paid I payable together with interest paid / payable to these parties under the Act is Nil
xiii In the opinion of the Board of Directors:
a The current assets, loans & advances are approximate of the value stated if realized in the ordinary course of business The provisions for all known liabilities are adequate and not in excess or short of the amount reasonably necessary b All expenses paid/provided have been duly incurred for the purpose of the business
__XIV Previous year's figures have been rearranged / regrouped wherever necessary_
As per our report of even date
For Subramaniam Bengali & Associates For and on behalf of the Board
Chartered Accountants Firm Reg No: 127499W
CA • P.Subramaniam Rachana Singi Seema Pathak
Partner Managing Director Director
Mem No: 043163 Din No. 00166508 Din No. 01764469
UDIN No.: 24043163BKFAYF2124
Alok Pathak Urmi Joiser
CFO Company Secretary
Place: Mumbai
Date : 13-05-2024 Place : Mumbai
18 Segment Reporting: (IND AS 108)
The Company's business activity primarily fats witf>n a single business segment based on the nature of activity involved which ts in line with the business risks attached with the segment having regard to the internal organisation and management structure. The CODM reviews the Company's performance as a single business segment and not at any other disaggregated level
19 Fair value measurements Financial Instruments by category
Ail financial nstrument as al 31 March 2024 and 31 March 2023 are measured at amortised cost Fair Value Hierarchy:
Financial assets and finance liabilities are measured at far value in the financial statement and are grouped into three levels of a far value hierarchy. The three levels are defied 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: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 Unobservable inputs for the asset or liabiltiy
20 Capital Management:
Equrty share capital and other equity are considered tor the purpose of Compare s capital management.
The Company is cash surplus and h3s no capital other than Equity The Company s not exposed to any regulatory rnposed capital requirements
The cash surpluses were nvested in mcome generating debt instruments (including through fixed deposits} depending on economic conditions in line with the guidelines se1 out by the Management wnie in current year no such investments are made Safety of capital is of prme importance to ensure availability of capital for operations Investment objective is to provide safety and adequate return on the surplus funds
21 Financial Risk Manaflemenl;
The Company s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company's senior management has the overall response* ity for establish mg and governing the Company’s rtsk management framework. The Company is responsive for developing and monitoring the Company s risk management policies The Compan/s risk management policies are established to identify and analyse the nsks faced by The Company, to set and monitor appropriate risk limits and controls periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before trie Audit Committee of the Company
Uqiadty risk is the risk that the Company w»l face r meeting its obligations associated with its financial habSties The Company's approach in managing liqudity is to ensure that it wil have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the yoar ended 31st March. 2024 and 31st March, 2023. The Company s principal sourcos ot liquidity are 'cash and cash equivalents' and cash fiews that are generated from operations. The Company has no outstanding term borrowings. The Company beleves that <ts working capital is sufficient to meet its current requirements
The Company regularly monitors the roitng forecasts to ensure 4 has sufficient cash on an on-gomg basis to meet operational needs Any short term surplus cash generated over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required).
The foilowng table shows the matunty analysis of the Company’s financial labilities based on contractually agreed undiscounted cash hows along with its carrying value as al the Balance Sheet date
B Management of Credit Risk
Credit risk .s the risk of financial loss to the Company if a customer or counter-party (ails to meet its contractual obfcgations.
Trade Receivables:
fretin risk t§ the r«sK of fjnanrM.kmQ-ihgmqii^.^ fails to meet its comracm&l obligatos
Maior source of credit risk at the reporting date Is from trade receivables as these are typically unsecured There is aosenoe of proper trade receivables management poi»cy The Company estimates the expected credit loss on the basis of past data and experience Expected credit losses of financial assets aie estimated on the basis of historical data provided the Company has reasonable and supportable data On such an assessment the expected loss on trade receivables as on March 31,2024 are Rs 2,98 5181-
Review of outstanding trade rece vables and financial assets is carried out by Management at every month eod. Company has a practice to provide for doubtful debts on a case to case basts after considering mier-alia customer's credibility etc
Cf»fh and Bank Balance
Bank balances are with reputed banks Hence, there is no s^mficant credit risk on such balances Company has placed deposits with finacially reliable counter parties and hence the credit risk is not significant
C. Management o'Marker Risk
The Company's size and operations result in ( being exposed to the foHowng market risks that arise from its use of financial instruments
(i) Currency Risk (ii | Interest Rate Risk (III) Other Price Risk
The accompanying notes are an integral part of the financial statements. For and on behalf of the Board
As per our Report of even date
For Subramaniam Bengali & Associates
CHARTERED ACCOUNTANTS
Firm Registration No.: 127499W RachanaSingi SeemaPathak
Managing Director Director
Din No. 00166508 Din No. 01764469
CA • P. Subramaniam
Partner Alok Pathak Urmi Joiser
M.No.: 043163 CFO Company Secretary
UDIN No.: 24043163BKFAYF2124
Place: Mumbai Place: Mumbai
Date: 13-05-2024 Date: 13-05-2024
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