(m) Contingent liability
Contingent liability is not provided for in the accounts and is recognized by way of notes.
(n) Financial Instruments i) Financial Assets
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.
B. Subsequent measurement
a) Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
c) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
C. Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in Other Comprehensive Income'.
D. Impairment of financial assets
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:
The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or
Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)
For trade receivables Company applies 'simplified approach' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
ii) Financial liabilities
A. Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
a) Exemptions from retrospective application
(i) Business combination exemption
The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, "Business Combinations" to business combinations consummated prior to April 1, 2015 (the "Transition Date"), pursuant to which Goodwill / capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date.
(ii) Share-based payment transactions
Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102to options that vested prior to April 1, 2015.
(iii) Fair value as deemed cost exemption
The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost.
(iv) Decommissioning liabilities
The Company has elected to apply the transitional provision with respect to recognition of Decommissioning, Restoration and Similar Liabilities.
29. Gratuity and other Post - employment benefit plans:
The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. At the end of accounting year actuarial valuation is done as per the Projected unit credit method and any shortfall is further provided for the following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity.
31. Other statutory information
a) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.
b) The company do not have any subsidiary company during the year and previous year.
c) There is no Scheme(s) of Arrangement pursed by the Company or approved or pending for approval by the Competent Authority during the year and previous year.
d) The company do not avail any working capital facilities during the year and previous year from Bank and/or financial institution, against stock and debtors, hence reconciliation of the same is not provided.
e) There company do not have any transactions with struck off company during the year and previous year.
f) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, during the year and previous year.
g) The company have never been declared wilful defaulter by any bank or financial institution or other lender.
h) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), with the understanding that the Intermediary shall:
(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.
i) The company have not received any fund from any person(s) or entity(ies), with the understanding 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 on behalf of the Ultimate Beneficiaries.
j) The company has not made any loans and advances to Promoters / Directors / relatives of the company during the year and previous year.
k) The company has no undisclosed income during the year and previous year.
l) The company does not hold or invest any amount in virtual digital asset including crypto currency, NFT etc
34. The previous period figure has been rearranged/ regrouped wherever necessary to make them comparable with those of current period classification & disclosure.
35. The figures has been rounded off to nearest of rupees in Lakhs.
As per our separate report of even date attached
For R.K. GOVIL & CO. For and on behalf of the Board Directors.
Chartered Accountants National General Industries Limited
FRN - 000748C
Sd/- Sd/- Sd/- Sd/-
CA ASFHSFI GOEL Pawan Kumar Modi Manhar Modi Vandana Gupta
Partner Managing Director cum CFO Director Company Secretary
Mem. No.: 418425 DIN : 00051679 DIN : 00051746 Mem. No.ACS24012
Place : New Delhi
Date : 30/05/2024
UDIN : 24418425BKCOWS4675
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