IX) Provisions and Contingent Liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, 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.
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 of resources will be required to settle the obligation or a reliable estimate of
the amount cannot be made.
X) Foreign Currency Transactions & Translations
The functional currency of the Company is Indian Rupee. These Financial Statements are presented in Indian
Rupee (rounded off to the nearest Lacs).
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing
on the date of the transaction. Gains & losses arising on account of realization are accounted for in the Statement
of Profit & Loss.
Monetary Assets & Liabilities in foreign currency that are outstanding at the year end are translated at the year
end exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
XI) Cash and Cash Equivalents
Cash and Cash Equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
XII) Employee Benefits
Defined Contribution Plan
The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution
retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the
employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee's salary.
Defined Benefit Plan
Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The Company's
liability is actuarially determined using the Projected Unit Credit method at the end of the year in accordance
with the provision of Ind AS 19 - Employee Benefits.
The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or liability.
Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other
comprehensive income and are not reclassified to profit or loss in subsequent periods.
The Company recognises the changes in the net defined benefit obligation like service costs comprising current
service costs, past-service costs, gains and losses on curtailments and non-routine settlements and net interest
expense or income, as an expense in the Statement of Profit and Loss.
Short term employee benefits are charged off at the undiscounted amount in the year in which the related
services are rendered
XIII) 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 capitalised as part of the cost of
the 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.
XIV) Leases
The company determines whether an arrangement contains a lease by assessing whether the fulfillment of a
transaction is dependent on the use of a specific asset and whether the transaction conveys the right to control
the use of that asset to the Company in return for payment.
Company as a lessee
The company applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The company recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets, as follows:
Ý Leasehold Land is amortised over the period of lease ranging from 30 to 99 years.
Ý Building 3 to 15 years
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects
the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
ii) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Company and payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured
if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to
future payments resulting from a change in an index or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the underlying asset. The Company's lease liabilities
are included in Interest-bearing loans and borrowings.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of machinery
and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered to be low value. Lease payments on short-term leases and
leases of low value assets are recognised as expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership
of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis
over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
XV) Government Grants
The Company recognizes government grants only when there is reasonable assurance that the conditions
attached to them shall be complied with and the grants will be received. Grants related to assets are treated
as received from the cost of asset and are recognized as other income in the Statement of profit & loss on a
systematic and rational basis over the useful life of the asset. Grants related to income are recognized on a
systematic basis over the periods necessary to match them with the related costs which they are intended to
compensate and are deducted from the expense in the statement of profit & loss.
XVI) Income Taxes
Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to items
recognized directly in equity, in which case it is recognized in other comprehensive income. Provision for
current tax is made at the current tax rates based on assessable income.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the Financial Statements except when the deferred
income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates
on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the
enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is
probable that future taxable profit will be available against which the deductible temporary differences and tax
losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries
and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the
foreseeable future. The company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
XVII) Earnings per Share
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.
XVIII) Current and Non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
An asset is classified as current when it is:
i) expected to be realised or intended to be sold or consumed in the normal operating cycle,
ii) held primarily for the purpose of trading,
iii) expected to be realised within twelve months after the reporting period, or
iv) cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
A liability is classified as current when it is:
i) it is expected to be settled in the normal operating cycle,
ii) it is due to be settled within twelve months after the reporting period, or
iii) there is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent.
XIX) Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
XX) Rounding of Amounts
All amounts disclosed in the standalone Financial Statements and notes have been rounded off to the nearest
Lacs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
XXI) Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. 1 April 2024. The Company has reviewed the
new pronouncements and based on its evoluation has determined that it does not have any significant impact
on its financial statements as at and for the year ended 31 March 2025.
f) Terms/rights attached to each class of shares
Equity Shares:
The Company has only one class of equity shares having a par value of H1/-. Each holder of equity share is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
III) Financial Risk Management
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange
rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its
financial instruments. The Company's focus is on foreseeing the unpredictability of financial markets and seek
to minimize potential adverse effects on its financial performance.
a) Market Risk -
Market Risk Comprises of Foreign Currency Exchange Rate Risk, Interest Rate Risk & Equity Price Risk
i) Exchange Rate Risk
The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit
and Loss and Equity, where any transactions are denominated in a currency other than the functional
currency of the Company. The Company operates both in domestic market and internationally and
consequently the Company is exposed to foreign exchange risk through its sales in overseas countries,
and purchases from overseas suppliers in foreign currencies.
The Company's Exchange Rate Risk exposure is primarily due to Trade Payables, Trade Receivables and
Borrowings in the form of Buyers' Credit denominated in foreign currencies. The Company uses foreign
exchange and forward contracts primarily to hedge foreign exchange exposure.
ii) Interest Rate Risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. The
Company have interest bearing liabilities having MCLR based floating rate of interest. The Company's
interest rate exposure is mainly related to its debt obligations.
Based on the composition of debt as at March 31, 2025 and March 31, 2024 a 100 basis points increase in
interest rates would increase the Company's finance costs and thereby consequently reduce net profit
and equity before considering tax impacts by approximately H203.65 lacs for the year ended March 31,
2025 (2023-24: H182.90 lacs).
This calculation assumes that the change occurs at the balance sheet date and has been calculated based
on risk exposures outstanding as at that date. The period end balances are not necessarily representative
of the average debt outstanding during the period.
iii) Security Price Risk
Security price risk is related to change in market reference price of investments in equity and mutual
fund securities held by the Company. The fair value of quoted investments held by the Company exposes
the Company to equity price risks. In general, these investments are held for deploying surplus fund.
The fair value of investments in equity and mutual funds, classified as Fair Value through Profit & Loss as
at March 31, 2025 and March 31, 2024 was H10486.73 lacs and H14562.16 lacs respectively.
A 10% change in prices of such securities held as at March 31, 2025 and March 31, 2024 would result in an
impact of H1048.67 lacs and H1456.22 lacs respectively on Profit before tax.
Similarly, The fair value of investments in equity instrument, classified as Fair Value through Other
Comprehensive Income as at March 31, 2025 and March 31, 2024, was H2338.00 lacs and H3920.00 lacs
respectively.
A 10% change in prices of such securities held as at March 31, 2025 and March 31, 2024, would result in
an impact of H233.80 lacs and H392.00 lacs respectively on profit before tax.
b) Liquidity Risk -
Liquidity risk refers to the risk that the Company may not 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 following table shows maturity analysis of the Company's Financial Liabilities on the basis of undiscounted
contractual payments :
c) Credit Risk -
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according
to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of
deterioration of creditworthiness.
Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans Receivables,
Investments, Cash and Cash Equivalents and Financial Guarantees provided by the Company. None of the
financial instruments of the Company result in material concentration of credit risk.
37. Disclosures on Financial Instruments (Contd.)
The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating the
risk of financial loss from defaults. The Company manages risks 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.
38. Leases
The Company has lease contracts for Guest House and office spaces used in its operations. These have lease
terms of 6 years. Company also hold leasehold land having lease terms of 90 years.
Set out below are the carrying amounts of right-of-use assets recognised and the movement during the
period:
39. Capital Management
The Company's capital management is intended to create value for shareholders by facilitating the meeting of
long term and short term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with
long term and short term strategic investment and expansion plans. The funding needs are met through cash
generated from operations and short term bank borrowings.
39. Capital Management (Contd.)
The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of
the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash
equivalents, other bank balances, non current financial assets (fixed deposit) and current investments. The table
below summarises the capital, net debt and net debt to equity ratio of the Company.
III) Other Statutory Information
a) The Company do not have any Benami Property, where any proceedings has been initiated or pending
against the Company for holding any Benami property.
b) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
c) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
d) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies):
(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
e) The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party(Ultimate Beneficiaries) or
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961.
40. Additional Regulator Information (Contd.)
g) The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013.
h) The Company has compiled with the number of layers prescribed under clause(87) of section 2 of the Act
read with the Companies(Restriction on Number of Layers) Rules,2017.
i) There are no events or transactions after the reporting period which is required to be disclosed under Ind AS
10.
j) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of
India. The Company has no Core Investment Company as part of the Group.
41 . The Company has presented segment information in the consolidated financial statements which are presented
in the same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 'Operating Segments', no
disclosures related to segments are presented in this standalone financial statements.
42. Corresponding comparative figures for the previous year have been regrouped and readjusted wherever
considered necessary to confirm to the current year presentation..
For S K AGRAWAL AND CO For and on behalf of the Board of Directors
CHARTERED ACCOUNTANTS LLP
Chartered Accountants
Firm Regn. No. 306033E/E300272 Varun Agrawal Vineet Agrawal Mrinal Kanti Pal
(Managing Director) (Chief Executive Officer) (Director)
DIN - 00441271 DIN - 00867865
Hemant Kumar Lakhotia
(Partner)
Membership No. 068851 Rajesh Singhania Ajay Sharma
Kolkata (Chief Financial Officer) (Company Secretary)
28th day of May, 2025
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