(p) Provisions and Contingent Liabilities:
Provisions are recognized when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reliably estimated. Provisions are
measured at the present value of managements best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. Provisions are not
recognized for future operating losses.
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 or resources will be required to settle or a reliable estimate of the amount cannot
be made. Where the likelihood of outflow of resources is remote, no provision or disclosure
as specified in Ind AS-37 "Provision, contingent liabilities and contingent assets" is made.
(q) Employee Benefits:
i) Short-term obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employee's services upto the end of the
reporting period and are measured at the amount expected to be paid when the liabilities
are settled.
ii) Post-employment obligations:
There are no post-employment benefit plans such as gratuity and defined
contribution plans such as provident fund.
(r) Earnings Per Share:
(1) Basic earnings per share:
Basic earnings per share is calculated by dividing¬
- The profit attributable to owners of the Company
- By the weighted average number of equity shares outstanding during the financial
year.
(2) Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic
earnings per share to take into account:
- The after income tax effect of interest and other financing costs associated with
dilutive potential equity shares and
- The weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilute potential equity shares.
(s) Rounding of Amounts:
All amounts disclosed in the financial statements and notes have been rounded off to
nearest rupees as per the requirement of Schedule III of the Act, unless otherwise stated.
(t) Segment Reporting:
Operating segments are reported in a manner consistent with the reporting provided to
the chief operating decision maker. The chief operating decision maker of the Company
consists of the Chairman and Whole Time Director, Vice Chairman and Managing Director,
which assesses the final performance and position of the Company and makes strategic
decisions. There is only one primary reportable segment, the disclosure requirements of
Ind AS 108 - operating segment reporting is not provided.
- The after income tax effect of interest and other financial costs associated with
dilutive potential equity shares, and
- The weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.
(u) Financial Risk Management:
Risk Management Framework
The Company's activities expose it to a variety of financial risks, including market risk,
credit risk and liquidity risk. The Company's primary risk management focus is to
minimize potential adverse effects of market risk on its financial performance. The
Company's risk management assessment and policies and processes are established to
identify and analyze the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor such risks and compliance with the same. Risk assessment and
management policies and processes are reviewed regularly to reflect changes in market
conditions and the Company's activities. The Board of Directors and the management is
responsible for overseeing the Company's risk assessment and management policies and
processes.
(1) Credit Risk
Credit risk arises when a counter party defaults on its contractual obligations to pay
resulting in financial loss to the Company. The Company deals with creditworthy
counterparties as a means of mitigating the risk of financial loss from defaults. The
Company uses publicly available financial information and its own trading records
to rate its major clients. The Company's exposure and credit ratings of its
counterparties are regularly monitored and the aggregate value of transactions
concluded is spread amongst counterparties.
(v) Credit Risk Management:
Trade Receivables:
Trade receivables are typically unsecured and are derived from revenue earned from
clients, Credit risk has been managed by the Company through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of clients
to which the Company grants credit terms in the normal course of business. Exposures
to customers outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. Historical trends of
impairment of trade receivables do not reflect any significant credit losses. Given that
the macroeconomic indicators affecting customers of the Company have not
undergone any substantial change, the Company expects the' historical trend of
minimal credit losses to continue.
(2) Liquidity Risk:
Liquidity risk is the risk that the Company will not be able to meet its financial
obligations as they become due. The responsibility for liquidity risk management
rests with the Board of Directors, which has an appropriate liquidity risk management
framework for the management of the Company's short, medium and long-term
funding and liquidity management requirements. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities by regularly monitoring
forecast and actual cash flows.
The company's principal sources of liquidity are cash and cash equivalents and the
cash flow that is generated from operations. The company has no outstanding
borrowings except vehicle loan. The company believes that the working capital is
sufficient to meet its current requirements the company does not face a significant
liquidity risk with regard to its financial liabilities as and when they fall due.
Maturities of Financial Liabilities: The tables below analyses the company's financial
liabilities into relevant maturity grouping based on their contractual maturities.
The company's principal sources of liquidity are cash and cash equivalents and the cash flow i.e
generated from operation. The company has no outstanding borrowings except vehicle loan from
bank. The company believes that the working capital is sufficient to meet its current requirements.
The company does not face a significant liquidity risk with regard to its financial liabilities as and
when they fall due.
(3) Market Risk:
Market risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: Currency risk, Interest rate risk and other price risk
such as equity price risk. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimizing
the return.
(a) Foreign currency risk exposure:
The company does not have any exposure to foreign currency risk as at March
31, 2024. (Previous year Rs. Nil).
(b) Interest rate risk:
The company has no borrowings from banks and thus not exposed to interest
rate risk.
(c ) Price risk:
The company does not have any other investments including investment in
subsidiary companies, associate companies and Joint Venture Company and
investment in equity of listed companies and are classified in the Balance Sheet
at cost. Further investments in subsidiaries and associated companies are held
for strategic purpose and are not trading in nature.
(4) Capital Market:
The Company considers the following components of its Balance Sheet to be
managed capital:
Total equity as shown in the balance sheet including reserves, retained earnings,
and share capital.
The company's aim is to manage its capital efficiently so as to safeguard its ability
to continue as a going concern and to optimize returns to our shareholders.
The company's policy is to maintain a stable and strong capital structure with a
focus on total equity so as to maintain investor, creditors and market confidence
and to sustain future development and growth of its business. The company will
take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.
(w) Ind AS 115, Revenue from contracts with customers:
Ind AS 115, Revenue from contracts with clients deals with revenue recognition and
establishes principles for reporting useful information to users of financial statements
about the nature, amount, timing and uncertainty of revenue and cash flows arising from
an entity's contracts with clients. Revenue is recognized when a client's obtains control of
a promised service and thus has the ability to direct the use and obtain the benefits from
the service in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those services. The standard replaces Ind AS 18 Revenue and Ind
AS 11 Construction Contracts and related appendices.
Effective from April 1, 2018, the Company has applied Ind AS 115. Revenue from
Agreements with Clients which establishes a comprehensive framework for determining
whether how much and when revenue is to be recognized Ind AS 115 replaces Ind AS 18
Revenue. The impact of the adoption of the standard on the financial statements of the
Company is insignificant.
The performance Obligations in our contracts are fulfilled at the time of delivery of or
upon customer acceptance depending on customer terms. Revenue is measured at fair
value of the consideration received or receivable, after deduction of any trade discounts,
volume rebates and any taxes or duties collected on behalf of the Government such as
Goods and Services Tax etc. Accumulated experience is used to estimate the provision
for such discounts and rebates. Revenue is only recognized to the extent that it is highly
probable a significant reversal will not occur. Revenue from Contracts with Customers
which establishes a comprehensive framework for determining whether how much and
when revenue is to be recognized Ind AS 115 replaces Ind AS 18 Revenue. The impact of
the adoption of the standard on the financial statements of the Company is insignificant.
(x) Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalized as part of the cost of asset. All other borrowing
costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences to the extent regarded as
an adjustment to the borrowing costs.
(y) Other Amendments:
The MCA has notified below amendments which are effective from 1st April 2019.
• Appendix C to Ind AS 12, Income Taxes
• Amendments to Ind AS 103, Business Combinations.
• Amendments to Ind AS 109, Financial Instruments.
• Amendments to Ind AS 111, Joint Arrangements.
• Amendments to Ind AS 19, Employee Benefits.
• Amendments to Ind AS 23, Borrowing Costs.
• Amendments to Ind AS 28, Investments to Associates and Joint Ventures.
Based on Preliminary work, the Company does not expect these amendments to have any
significant impact on its financial statements.
Note 3:
Critical Estimates and Judgments:
The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. This note provides an overview of the areas that
involve a higher degree of judgment or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumption turning out to be different than those
originally assessed. Detailed information about each of these estimates and judgment is included
in relevant notes together with information about the basis of calculation for each affected line item
in the financial statements.
The areas involving critical estimates or judgments are:
Estimated useful life of Tangible Assets:
The Company reviews the useful lives and carrying amount of property, plant and equipment at
the end of each reporting period. The reassessment may result in change in depreciation and
amortization expense in future periods.
Estimation of Current Tax Expense and Income Tax Payable/Receivable:
The calculation of Company's tax charge necessarily involves a degree of estimation and judgment
in respect of certain items whose tax treatment cannot be finally determined until resolution has
been reached with the relevant tax authority or, as appropriate, through a formal legal process.
The final resolution of some of these items may give rise to material judgment to taxable
profit/losses.
Estimation of Contingent Liabilities:
The company exercises judgment in measuring and recognizing provisions and the exposures to
contingent liabilities which is related to pending litigation or other outstanding claims. Judgment's
necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and
to quantify the possible range of the financial settlement. Because of the inherent uncertainty in
this evaluation process, actual liability may be different from the originally estimated as provision
or contingent liability.
Recognition of Deferred Tax Assets:
The recognition of deferred tax assets is based upon whether it is probable that sufficient taxable
profits will be available in the future against which the reversal of temporary differences will be
offset. To determine the future taxable profits, the management considers the nature of the
deferred tax assets, recent operating results, future market growth, forecasted earnings and future
taxable income in the jurisdictions in which the company operates.
Impairment of Trade Receivables:
Trade receivables are typically unsecured and are derived from revenue earned from customers.
Credit risk has been managed by the Company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the company grants
credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company
uses expected credit loss model to assess the impairment loss or gain. The company uses a
provision matrix and forward-looking information and an assessment of the credit risk over the
expected life of the financial asset to compute the expected credit loss allowance for trade
receivables.
Estimates and judgment are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
company and that are believed to be reasonable under the circumstances.
Note 4:
Previous year's figures have been re-grouped, re-arranged, re-classified and re-casted, wherever
necessary to make them comparable with current year's figures in conformity with the Indian
Accounting Standards (Ind AS) to financial statements.
The average credit period on sale of products/ services is 60 days. No interest is charged on trade
receivables overdue. The company has generally recognised an allowance for doubtful debts at
100% against receivables from whom recovery is uncertain. Trade receivables disclosed alone
include amounts that are past due at the end of the reporting period for which the company has
not recognised any allowance for doubtful debts because there has not been a significant change
in credit quality and the amounts are still considered recoverable. In considering the recoverability
of a trade receivable, the company considers any change in the credit quality of the trade receivable
from the date credit was initially granted upto the end of the reporting period.
the shareholders in the ensuing Annual General Meeting; in case of interim dividend, it is
recorded as a liability on the date of declaration by the Board of Directors of the Company.
iii. In the event of liquidation, the equity shareholders are eligible to receive the residual assets
of the Company after distribution of all preferential amounts, in proportion to their
shareholding. However, no such preferential amounts exist currently.
iv. There are no shares reserved for issue under options.
v. No shares are issued for consideration other than cash during the 5 years immediately
preceding March 31, 2025.
2. Capital Management
Equity share capital and other equity are considered for the purpose of company's capital
management. The company manages its capital so as to safeguard its ability to continue as
a going concern and to optimise returns to shareholders. The capital structure of the
company is based on the management judgement on its strategic day to day needs with a
focus on total equity so as to maintain investor, creditor and market confidence. The
management and Board of directors monitors the return on capital. The company may take
appropriate steps in order to maintain or if necessary adjust its capital structure.
No Interest is paid / payable during the year to any Micro, Small and Medium Enterprises
registered under the MSME Act. The above Information has been determined to the extent
such parties could be identified on the basis of the information available with the management
regarding the status of the suppliers under the MSME Act.
2) There are no amounts due for payment to the investor Education and Protection Fund under
Section 125 of the Companies Act, 2013 as at 31st March, 2025 (31st March, 2023: NIL)
3) The provisions for direct and indirect taxes comprises of GST and TDS that arise in the
ordinary course of business of the company.
For A S K M & CO. For Hiliks Technologies Limited
Chartered Accountants
Firm Reg No. 012799S
Sd/- Sd/- Sd/- Sd/- Sd/-
S. Venkateswara Rao Brinda Mahajan Mridul Tripathi Sandeep Copparapu VNP Bhaskar
Partner Company Secretary Chief Financial Officer Whole Time Director Director
M. No. 223702 M. No. 30381 PAN: ARLPT8962A DIN: 08306534 DIN: 08105714
UDIN: 25223702BMIOUB8386
Place: Mumbai
Date: 29.04.2025
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