xiii. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognized for future operating losses.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation, or the amount of the obligation cannot be
measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the financial
statements
A contingent asset is a possible asset that arises from past events and whose existence 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. Contingent assets are not recognized,
but its existence is disclosed in the financial statements
xiv. Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.
As per the requirements of Ind AS 116 the company evaluates whether an arrangement qualifies to be a lease. In identifying a lease the
company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to
extent the lease if the company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if
the Company is reasonably certain not to exercise that option. The Company revises the lease term if there is a change in the non¬
cancellable period of a lease.
Company as a 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 of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the non-lease components.
Right of Use Assets
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 shall comprise of the amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs
incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying
asset or site on which it is located.
The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and
adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the lease term. Right-of-use assets are tested for impairment whenever there is any indication that their
carrying amounts may not be recoverable and impairment loss, if any, is recognised in the statement of profit or loss.
Lease hold land are amortised over period of lease and considered as Right of Use assets as per Ind AS 116 and classified accordingly.
Lease Liability
The Company measures the lease liability 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, if that rate can be readily determined. If that rate
cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the
Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing
rate for the portfolio as a whole.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the lease liability, reducing the
carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect any reassessment or lease modifications.
The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use
asset and statement of profit or loss depending upon the nature of modification. 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 re-measurement in statement of profit or loss.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term
of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense on a straight-line basis over the lease term.
Operating leases
The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously classified
as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of initial
application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application
as an alternative to performing an impairment review, excluded initial direct costs from measuring the right-of-use asset at the date of
initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
The Company has used a single discount rate to a portfolio of leases with similar characteristics.
a. Financial assets
Classification
The Company classifies financial assets in the following measurement categories:
a) Those measured at amortised cost and
b) Those measured subsequently at fair value through other comprehensive income or fair value through profit or loss on the basis of its
business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset are
adjusted to fair value in case of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial assets that
require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the company commits to purchase or sell the asset.
Measured at amortised cost
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income in the statement of profit or loss. The losses arising from impairment
are recognised in the statement of profit or loss. This category generally applies to trade and other receivables.
Measured at fair value through other comprehensive income (FVOCI)
A financial asset ismeasured at FVOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
b) The asset’s contractual cash flows represent SPPI.
Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in the profit or loss. On derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to profit or loss. Interest earned whilst holding FVOCI debt instrument is reported as
interest income using the EIR method.
Financial Asset at fair value through profit or loss (FVTPL)
FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at amortized
cost or as FVOCI, is classified as at FVTPL.
In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred
to as ‘accounting mismatch’).
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily
derecognised (i.e. removed from the company’s balance sheet) when:
a) The rights to receive cash flows from the asset have expired, or
b) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the company has transferred substantially
all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.
c) When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the
transferred asset to the extent of the company’s continuing involvement. In that case, the company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has
retained.
d) Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that the company could be required to repay.
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.
b) Trade receivables.
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:
a) Trade receivables which do not contain a significant financing component.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
b) For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a
significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on 12-month ECL.
b. Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value
through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
The company’s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative
financial instruments.
Financial Liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon
initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the group that are
not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition,
and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L. However, the company may transfer
the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains
and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Derivative financial instruments
The company uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward commodity
contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Such derivative financial
instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative.
Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when,and when the company has
a legally enforceable right to set off the amount and it intends either to settle then an a net basis or to realize the asset and settle the
liability simultaneously.
Measurement of fair values
The Company’s accounting policies and disclosures require the measurement of fair values, for financial instruments.
The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews
significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used
to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the
entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change
has occurred.
xv. Government Grants
Government Grants and subsidies from Government are recognised when there is reasonable certainty that the grant/subsidy will be
received and all attaching conditions will be complied with.
When the government grant relates to income, it is recognised in the Statement of Profit or Loss on a systematic basis over the period in
which the Company recognizes as expenses the related costs for which the grant is intended to compensate.
For grants related to asset the grant is deducted in calculating the carrying amount of the asset. The grant is recognised in profit or loss
over the life of a depreciable asset as a reduced depreciation expense.
xvi. Recent pronouncements
Ind AS 117 - Insurance Contracts
The Ministry of Corporate Affairs (MCA) has notified Ind AS 117 - Insurance Contracts, which is applicable to the Company for
annual periods beginning on or after April 1, 2024. Ind AS 117 replaces Ind AS 104 and establishes principles for the recognition,
measurement, presentation, and disclosure of insurance contracts. There are no such contracts.
The amendments had no impact on the Company’s standalone financial statements.
Ind AS 116 - Leases (Sale and Leaseback Transactions)
Amendments to Ind AS 116 relating to accounting for variable lease payments in a sale and leaseback transaction are effective from April
1,2024. The amendment clarifies that the seller-lessee shall recognize any gain or loss on the sale portion immediately and account for
the leaseback liability in line with lease accounting requirements. The Company does not expect a material impact as there are currently
no such sale and leaseback transactions.
The amendments had no impact on the Company’s standalone financial statements.
Note 34 Additional Regulatory Information
1 The Company is not having any Immovable Property in the name of the company. Hence, no Title deeds were held in the name of the
company.
2 There are no investment in properties.
3 The Company has not revalued its Property, Plant and Equipment during the year.
4 The Company is not having any intangible assets during the year.
5 The Company has no capital work-in-progress pending as at the end of the year.
6 The Company has not granted loans and advances to promoters, directores, KMP’s and their relatives either jointly or severally with any
other person
7 No proceedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions
Act, 1988 (Earlier titled as Benami transactions (Prohibitions) Act, 1988.
8 The statement of current assets filed by Company with banks for borrowings are in agreement with the books of accounts.
9 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender.
10 The Company has no transaction with Companies which are struck off under section 248 of the Companies Act, 2013 or under section 530
of Companies Act, 1956.
11 No charges of satisfication are pending for registration with the Registrar of Companies (ROC).
12 The Company has two subsidiaries. The Company is in compliance with the number of layers as prescribed under clause (87) of section 2
of the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017.
13 During the year no scheme of Arrangement has been formulated by the Company/pending with competent authority.
14 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate
Beneficiaries).
15 The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
16 The Company does not have any transactions that are not recorded in the books of accounts but have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
17 Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
Note 40 Financial Instruments - Fair Values and Risk Management
Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Market risk
(a) Currency risk;
(b) Interest rate risk;
(ii) Credit risk ; and
(iii) Liquidity risk ;
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 risks on its financial performance. The Company’s risk
management assessment policies and processes are established to identify and analyses the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same. These policies and processes are
reviewed by management regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and
the Audit Committee are responsible for overseeing these policies and processes.
Note 40 (i) Market risk
Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates which shall affect the
Company’s income or the value of its holdings of its financial instruments. The objective of market risk management is to manage and
control market risk exposure within acceptable parameters, while optimising the returns.
Note 40 (i)(a) Currency risk
The fluctuation in foreign currency exchange rates may have impact on the profit and loss account, where any transaction has more
than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from
fluctuations in exchang rates in those countries. The risks primarily relate to fluctuations in U.S. dollar SEK and Euro against the
respective functional currrencies.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Company’s receivables from customer. The Company establishes an allowance
for doubtful debts and impairment that represents its estimate on expected loss model .
A. Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of
the customer, including the default risk of the industry has an influence on credit risk assessment. Credit risk is managed 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.
Expected credit loss assessment
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit losses. Historical
trends of impairment of trade receivables do not reflect any significant credit losses. Impaired amounts are based on lifetime expected losses based
on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still
collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several
customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to
economic circumstances.
B. Cash and cash equivalents
The Company holds cash and cash equivalents with credit worthy banks and financial institutions of ^219.84 lakhs as at March 31,2025 97.15
Lakhs as at 31 st March 2024). The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and
is considered to be good.
C. Investments
The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does
not have any significant concentration of exposures to specific industry sectors or specific country risks.
Financial Instruments - Fair Values and Risk Management
Note 40(iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its
liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal
and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company has obtained fund based
lines from banks. The Company also constantly monitors various funding options available in the debt and capital markets with a view to
maintaining financial flexibility.
Exposure to liquidity risk
The table below analyses the Company’s financial liabilities into relevant maturities groupings based on their contractual maturities for: all
non derivative financial liabilities.
The Company’s 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. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total
liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Equity comprises of
Equity share capital and other equity.
The Company’s policy is to keep the ratio at optimum level.
Note 43 Approval of financial statements
The financial statements are approved for issue by the Board of Directors in their meeting held on 21st May, 2025.
Note 44 Previous year’s figures are regrouped or re-classified wherever considered necessary to make them comparable with current year’s figures.
AS PER OUR REPORT OF EVEN DATE For and on behalf of Board of Directors of
For Maheshwari & Gupta Worth Peripherals Limited
Chartered Accountants
FRN : 006179C Sd/- Sd/-
Raminder Singh Chadha Jayvir Chadha
Sd/- Chairman & Managing Director Whole Time Director
CA. Manoj Gupta DIN - 00405932 DIN - 02397468
Partner
M.NO. 071927 Sd/- Sd/-
G S Agrawal Nidhi Arj ariya
Place : Indore Chief Financial Officer Company Secretary
Date : 21.05.2025 PAN - ABDPA8621P M. No. A54208
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