(m) Provisions and contingent liabilities
A provision is recognized if as a result of a past event, the company has a present obligation
(legal or constructive) that can be estimated reliably and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are recognized at the best estimate of
the expenditure required to settle the present obligation at the balance sheet date. If the effect of
time value of money is material, provisions are discounted using a current pre tax rate that reflects,
when appropriate the risks specific to the liability.
A contingent liability exists when there is a possible but not probable obligation, or a present
obligation that may, but probably will not, require an outflow of resources, or a present obligation
whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions but
are disclosed unless the possibility of outflow of resources is remote.
(n) Dividends
Dividend proposed (including income tax thereon) is recognized in the period in which interim
dividends are approved by the Board of Directors or in respect of final dividend when approved by
shareholders.
(o) Use of Estimates and Critical accounting Judgements
The preparation of Financial Statements is in conformity with generally accepted accounting
principles which requires management to make estimates and assumptions.
The estimates and the associated assumptions are based on historical experience, opinions of
experts and other factors that are considered to be relevant. Actual results may differ from these
estimates.
Significant judgements and estimates are made relating to impairment of Property, Plant and
Equipments, Actuarial assumptions relating to recognition and measurement of employee defined
benefit obligations, recognition of provisions and exposure of contingent liabilities relating to pending
litigations or other outstanding claims etc.
(p) Recent Indian Accounting Standards (Ind AS)
Ministry of Corporate Affairs notifies (“MCA”) notifies new Standards or amendments to the existing
Standards under Companies (Indian Accounting Standards) Rules, 2023, as issued from time to
time. For the year ended March 31,2024, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.
(b) Terms and Rights attached to Equity Shares:
The Company has only one class of issued shares referred to as equity shares having a par value of Re 10
each. Each holder of Equity Shares 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 Shareholders in the ensuing General Meeting except in case of interim dividend.
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. However, no such preferential
amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the
Shareholders.
10 Contingent Liabilities & Commitments
(To the extent not provided for)
Contingent Liabilities
a) Claims against the Company not acknowledged as Debts - -
11 In the opinion of the Board, all Current Assets, have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the Balance Sheet.
12 The net worth of the Company is negative but the Company is meeting its liabilities/obligations.The Company
continues to receive active support from management.Based on perception of market conditions,the Company
is hopeful of a turnaround and recovery in the near future.Therfore,the accounts have been prepared on the
fundamental assumption of going concern.
13 Based on the guiding principles given in Ind AS 108 on “Operating Segment” the Company’s business activity
falls within a single operating segment. Accordingly, the disclosure requirements of Ind AS 108 are not applicable.
16 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006
On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small
Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with
the Company, the following are the details:
(i) Principal amount remaining unpaid - -
(ii) Interest due thereon remaining unpaid - -
(iii) Interest paid by the Company in terms of Section 16 of the Micro, - -
Small and Medium Enterprises Development Act, 2006, along-with
the amount of the payment made to the supplier beyond the
appointed day during the period
(iv) Interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the
period) but without adding interest specified under the Micro,
Small and Medium Enterprises Act, 2006
(v) Interest accrued and remaining unpaid - -
(vi) Interest remaining due and payable even in the succeeding years, - -
until such date when the interest dues as above are actually paid
to the small enterprises
17 The Company does not have any borrowings from Banks and Financial Institutions.
18 The Company does not have any Immovable Property .
19 The Company does not have any Property/Plant/Equipment during the year.
20 No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related
parties (as defined under the Companies Act 2013), either severally or jointly with any other person, that are
repayable on demand or without specifying and terms or period of repayment.
21 The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and the Rules made thereunder.
22 The Company does not have any borrowings from banks/financial institutions on the basis of security of
current assets.
23 The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.
24 The Company does not have any transaction with companies struck off under Section 248 of Companies Act,
2013/ Section 560 of Companies Act 1956.
25 There are no charges/ satisfaction yet to be registered with the Registrar of Companies beyond the statutory
period.
26 The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with
Companies (Restriction on number of Layers) Rules, 2017.
27 No Scheme of Arrangements has been approved by the competent authority in terms of Section 230 to 237 of
Companies Act, 2013.
28 The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with
understanding (whether recorded in writing or otherwise) that the intermediary shall
i. Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or
ii. Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.
29 The Company has 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 matter whatsoever by or
on behalf of Funding Party (Ultimate Beneficiaries) or
ii. Provide any guarantee, security or the like on behalf of Ultimate Beneficiaries.
30 The Company does not have any transaction 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.
31 The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
32 The Company does not have any significant volume of business since past few years .Further there are no
borrowings from banks and/or financial institutions.There are neither business creditors nor trade receivables
as on date.On an overall consideration of the above accounting Ratios are not given.
b) Fair Value Hierarchy
The Company determines the fair value of its financial instruments on the basis of the following hierarchy:
Level 1 :The fair value of financial instruments that are quoted in active markets are determined on the basis of
quoted pricefor identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market are determined using
valuationtechniques based on observable market data.
Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations
using inputs that are not based on observable market data (unobservable inputs). Fair value of investment in
unquoted equity shares is determined using discounted cash flow technique.
The carrying amounts of all financial instruments are considered to be the same as their fair values.
c) Financial Risk Management
In the course of its business, the Company is exposed to a number of financial risks: credit risk, liquidity risk,
market risk. This note presents the Company’s objectives, policies and processes for managing its financial
risk and capital.
i) Credit Risk
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 customers.
Trade and other receivables
The Company’s T rade Receivables are largely from sales made to wholesale customers. The Company’s
exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The Company manages credit risk through credit approvals and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Exposoures to customers outstanding at the end of each reporting period are reviewed to determine
incurred and expected credit losses and the Company establishes an allowance for doubtful debts and
impairment that represents its estimate of expected losses in respect of trade receivables. Historical
trends of impairment of Trade Receivables do not reflect any significant losses.
Liquidity risk refers to risk that the Company may encounter difficulties in meeting its obligations associated
with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors
the rolling forecasts to ensure that sufficient liquidity is maintained on an ongoing basis to meet operational
needs. The Company manages the liquidity risk by planning the investments in a manner such that the
desired quantum of funds could be made available to meet any of the business requirements within a
reasonable period of time. In addition, the Company also maintains flexibility in arranging the funds by
maintaining committed credit lines with various banks to meet the obligations.
Exposure to Liquidity Risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted and include estimated interest payments and exclude the impact
of netting agreements.
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from
adverse changes in market rates and prices (such as interest rates and foreign currency exchange
rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market
rates and prices. Market risk is attributable to all market risk-sensitive fnancial instruments, all foreign
currency receivables and payables. The Company is exposed to market risk primarily relates to foreign
exchange rate risk.
Currency risk
The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss
account, where any transaction references more than one currency or where assets/liabilities are
denominated in a currency other than the functional currency of the entity. The Company is exposed to
currency risk on account of its payables in foreign currency. The functional currency of the Company is
Indian Rupee. The Company has exposure to GBP, USD, EURO and other currencies. The Company
has not hedged this foreign currency exposure.
Exposure to currency risk
The Company do not have foreign currency risk at the end of the reporting period.
35 Previous Year’s figures have been regrouped/ rearranged, wherever found necessary.Figures in brackets
above are in respect of previous year.
36 Figures have been rounded off to Rs. Lakhs
As per our report of even date For & on behalf of the Board
For V S S A & Associates
(Firm Registration No. 012421N)
Chartered Accountants VAIBHAV GOEL ANKIT TAYAL
Wholetime Director Additional Director
DIN- ‘07899594 DIN- 03055997
Samir Vaid
Partner
M. No. 091309 SUNAYANA ANAND
Place : New Delhi Company Secretary
Dated : 21.05.2024 ‘M.No.: A46238
UDIN: 24091309BKEQOH4056
|