h) Provisions and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, 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 assessments of the time value of money and the risks specific to the liability.
Contingent liabilities are not recognised but are disclosed by way of notes to the financial statements, after careful evaluation by the management of the
facts and legal aspects of each matter involved. Contingent assets are neither recognised nor disclosed in the financial statements.
i) Employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange of services rendered by employees is recognised during the
period when the employee renders the services. These benefits include salaries, bonus and performance incentives.
Short Term Employee Benefits:.
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized
in the period in which the employee renders the related service. These benefits include salaries and wages, bonus etc. The Company recognizes the
undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting
any amount already paid.
Post Employment Benefits
Gratuity
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the
end of the reporting period less the fair value of plan assets. The Company’s liability is actuarially determined (using the Projected Unit Credit method) at
the end of each year. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates
of government bonds. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited
to equity in other comprehensive income in the period in which they arise.
j) Taxation
Income tax expense represents the sum of the tax payable and deferred tax.
Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the Statement of Profit and Loss
because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current
tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax
Deferred tax is recognised on temporary timing differences between the carrying amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is
realised, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred Tax Assets includes Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic
benefits in the form ofavailability ofset offagainst future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet
when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.
Current and deferred tax for the year
Current and deferred tax are recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly
in equity respectively.
k) Revenue recognition
i) Commission on sale of products is recognised when the title goods are sold/transferred to third party by the Principal
ii) Interest income is recognized using effective interest method.
l) Leases
The Company determines whether an arrangement contains a lease by assessing whether the fulfilment ofa transaction is dependent on the use ofa specific
forming part of the standalone financial statements
The Company as lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the
consideration in the contract to each lease component on the basis ofthe relative stand-alone price ofthe lease component and the aggregate stand-alone
price of the non-lease components. The Company recognises right of use asset representing its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-of-use asset measured at inception comprises of the amount of initial measurement of the lease liability
adjusted for any lease payments made at or before the commencement date.
Certain lease arrangements include options to extend or terminate the lease before the end of the lease term. The right-of-use assets and lease liabilities
include these options when it is reasonably certain that such options would be exercised.
The right-of-use assets are subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any, and adjusted for any
remeasurement ofthe lease liability. The right-of-use assets are depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset.
Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any,
is recognised in the statement of profit and loss.
Lease liability is measured at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are
discounted using the interest rate implicit in the lease, ifthat rate can be readily determined. Ifthat rate cannot be readily determined, the Company uses
incremental borrowing rate. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability,
reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications.
The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset. Where the carrying amount of the
right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining
amount of the remeasurement in the statement of profit and loss.
Variable lease payments not included in the measurement of the lease liabilities are expensed to the statement of profit and loss in the period in which the
events or conditions which trigger those payments occur.
Payment made towards leases for which non-cancellable term is 12 months or lesser (short-term leases) and low value leases are recognised in the
statement of Profit and Loss as rental expenses over the tenor of such leases.
31 The Company has not recognized deferred tax assets that relate to unused tax losses and unabsorbed depreciation, as it is not probable that future taxable profit
will be available with the Company that can utilize the benefits.
32 During the year ended March 31, 2025, the Company opted for settlement of outstanding income tax disputes under the “Direct Tax Vivad Se Vishwas
Scheme, 2024,” notified under the Income-tax Act, 1961. The disputes pertained to Assessment Years 2013-14 and 2017-18 involving aggregate demands of
Rs. 89.81 lakh (Rs. 4.58 lakh and Rs. 85.23 lakh respectively). Pursuant to the provisions of the Scheme, the Company paid a total of ?92.75 lakh towards full
and final settlement of the said demands.
In respect of AY 2013-14, the demand pertained to penalty proceedings of Rs. 4.58 lakh, for which the Company paid Rs. 1.14 lakh as per the Scheme (being
25% of the penalty amount). However, the Income Tax Department adjusted a total of Rs. 5.04 lakh against the demand through refund adjustments. As a
result, a refund of Rs. 3.90 lakh is determined as receivable by the Company for AY 2013-14.
For AY 2017-18, the Company discharged the demand of Rs. 91.61 lakh in full and complied with all procedural requirements under the Scheme. The final
settlement order from the Income Tax Department for this year is currently pending. Consequent to this, tax expense under the scheme amounting to Rs. 92.75
lakhs has been recorded as Tax Expense under the head "Current Tax".
In accordance with the principles laid down under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, the Company has derecognized the
contingent liabilities associated with these disputes, as the probability of any further outflow of economic resources in this regard is now considered remote.
38 Financial risk management objectives
The Company’s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company’s financial assets comprise mainly of
investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’) oversee the management of these financial risks
through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Risk Management Committee and approved by the
Board, states the Company’s approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and
responsibilities of the Company’s management, the structure for managing risks and the framework for risk management. The framework seeks to identify,
assess and mitigate financial risks in order to minimize potential adverse effects on the company’s financial performance.
i) Capital Management
The Company’s capital management objectives are:
The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the
business. The Board of Directors monitors the return on capital employed.
The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net
borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.
The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on
the amounts stated in the financial statements.
ii) Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily
from financial assets such as trade receivables, investment in mutual funds, other balances with banks, loans and other receivables.
The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread
amongst the counterparties.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 210.45 Lakhs (Previous Year
Rs. 231.56 Lakhs) respectively, being the total of the carrying amount of balances of trade receivables, Loans and other financial assets.
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial
asset or a group of financial assets is impaired. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not
constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit losses
or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
iii) Liquidity Risk
a) Liquidity risk management
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient
liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets
and liabilities.
39 DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies
Act, 1956 during the financial year.
40 No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:
(a) Crypto Currency or Virtual Currency
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(c) Registration of charges or satisfaction with Registrar of Companies
(d) Relating to borrowed funds:
i. Wilful defaulter
ii. Utilisation of borrowed funds & share premium
iii. Borrowings obtained on the basis of security of current assets
iv. Discrepancy in utilisation of borrowings
v. Current maturity of long term borrowings
41 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered and
the audit trail has been preserved by the company as per the statutory requirements for record retention.
42 Previous year figures have been regrouped/recast, where ever necessary, to confirm with this year's presentation.
43 The figures have been rounded off to nearest rupees in Lakhs
The accompanying notes form an integral part of the audited financial statements.
Khiwani Sood & Associates. C.M. Marwah Krishan Kant Anu Marwah
Chartered Accountants Managing Director Director Director
Firm Registration No. 040433N DIN: 00172818 DIN: 08727674 DIN: 00645865
Rajesh Kumar Khiwani Rajesh Arya Amrita Mittal
Partner Chief Financial Officer Company Secretary
M.no. 081792 PAN: ABZPA9348K Membership No. A-38823
Date - May 22, 2025
Place: New Delhi.
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