3.22. Provisions, Contingent Liabilities and Contingent Assets
3.22.1. Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result
of a past event and 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. Provisions are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The unwinding of the discount is
recognized as finance cost.
3.22.2. Contingent Liabilities
Contingent liability is a possible obligation arising from past events and 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 but is not recognized because it is not possible that an outflow of
resources embodying economic benefit will be required to settle the obligations or reliable
estimate of the amount of the obligations cannot be made. The Company discloses the
existence of contingent liabilities in Other Notes to Financial Statements.
3.22.3. Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to
the possibility of an inflow of economic benefits. Contingent Assets are not recognized
though are disclosed, where an inflow of economic benefits is probable.
3.22.4. Intangible Assets
3.22.4.1. Recognition and Measurement
Intangible assets are stated at cost on initial recognition and subsequently measured at cost
less accumulated amortization and accumulated impairment loss, if any.
3.23. Amortization
3.23.1. Software's are amortized over a period of three years.
3.23.2. The amortization period and the amortization method are reviewed at least at the end of
each financial year. If the expected useful life of the assets is significantly different from
previous estimates, the amortization period is changed accordingly.
3.24. Operating Segment
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. The chief operating decision maker of the
Company is responsible for allocating resources and assessing performance of the operating
segments and accordingly is identified as the chief operating decision maker. The Company
has identified one reportable segment only based on the information reviewed by the
CODM.
4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING
POLICIES
4.1. Estimates and judgments 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.
Information about Significant judgments and Key sources of estimation made in applying
accounting policies that have the most significant effects on the amounts recognized in the
financial statements is included in the following notes:
4.2. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be
recognized is based on an assessment of the probability of the Company's future taxable
income against which the deferred tax assets can be utilized. In addition, significant
judgment is required in assessing the impact of any legal or economic limits.
4.3. Classification of Leases: The Company enters into leasing arrangements for various assets.
The classification of the leasing arrangement as a finance lease or operating lease is based on
an assessment of several factors, including, but not limited to, transfer of ownership of
leased asset at end of lease term, lessee's option to purchase and estimated certainty of
exercise of such option, proportion of lease term to the asset's economic life, proportion of
present value of minimum lease payments to fair value of leased asset and extent of
specialized nature of the leased asset.
4.4. Where the rate implicit in the lease is not readily available, an incremental borrowing rate is
applied. This incremental borrowing rate reflects the rate of interest that the lessee would
have to pay to borrow over a similar term, with a similar security, the funds necessary to
obtain an asset of a similar nature and value to the right of-use asset in a similar economic
environment. Determination of the incremental borrowing rate requires estimation.
4.5. Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of
actuarial assumptions which include mortality and withdrawal rates as well as assumptions
concerning future developments in discount rates, medical cost trends, anticipation of future
salary increases and the inflation rate. The Company considers that the assumptions used to
measure its obligations are appropriate. However, any changes in these assumptions may
have a material impact on the resulting calculations.
4.6. Provisions and Contingencies: The assessments undertaken in recognising provisions and
contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37,
'Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood of
the contingent events is applied best judgment by management regarding the probability of
exposure to potential loss.
4.7. Impairment of Financial Assets: The Company reviews it carrying value of investments carried
at amortized cost annually, or more frequently when there is indication of impairment. If
recoverable amount is less than its carrying amount, the impairment loss is accounted for.
4.8. Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through
appropriate estimations of irrecoverable amount. The identification of doubtful debts
requires use of judgment and estimates. Where the expectation is different from the original
estimate, such difference will impact the carrying value of the trade and other receivables
and doubtful debts expenses in the period in which such estimate has been changed.
4.9. Fair value measurement of financial Instruments: When the fair values of financial assets and
financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active markets, their fair value is measured using valuation techniques including the
Discounted Cash Flow model. The input to these models are taken from observable markets
where possible, but where this not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility.
Other Notes
4.10. Details of Crypto / Virtual Currency
There were no Transaction and Financial Dealing in Crypto / Virtual Currency during the
Financial Year 2024-25
4.11. There are no micro, Small and Medium Enterprises, to whom the Company owes dues which
outstanding for more than 45 days as at 31st March 2025. This information as required to be
disclosed under the micro, small and medium Development Act, 2006 has been determined
to the extent such parties have been identified on the basis of information available with
company.
The Note Referred to above form as an integral part of Balance Sheet.
For ALSTONE TEXTILES (INDIA)
0r S & LIMITED
Associates
Chartered
Accountants
Sd/-
(CA. RAHUL JAIN) DEEPAK KUMAR BHOJAK RAMESH KUMAR
partner (MANAGING DIRECTOR) (Director)
m k k- m nocna/i DIN- 06933359 DIN No- 00537325
Membership N°. O99134 Add: Kalu bas , ward no 03, Dungargarh, Add: Ward n0 16, pujari
Bikaner, Rajasthan -331803 Colony, Chirawa, Jhunjhunun,
FRN: 011199N Date: 31/05/2025 Rajasthan, 333026
Date: 31/05/2025
Place : New Delhi
Dated : 31/05/2025 DEEPAK VERMA ScHRADsHcAtaS^^
UDIN: 25099134BMJQCQ2898 (CFO) (M.No. - A5926o)y)
PAN- AEEPV1418N Add: 3/80, Nagar Nigam Colon ,
Add: 3198/15, 4th Floor, Gali no 1, Amer Road, Behind Brahmpur
sangat Rashan , Paharganj New Delhi
110055 Dated : 31/05/2025
Dated : 31/05/2025
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