2.10. Provisions, Contingent Liabilities & Contingent
Assets
Provisions are recognized for present obligation (legal
or constructive) of certain timing or amount arising as
a result of past event where a reliable estimate can be
made and it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation.
When it is not probable that an outflow of resources
embodying economic benefits will be required or the
amount cannot be estimated reliably the obligation is
disclosed as a contingent liability unless the possibility
of outflow of resources embodying economic benefit
is remote.
Possible obligations, whose existence will only be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events, not wholly with
in the control of entity are also disclosed as contingent
liabilities.
Contingent liabilities are not recognized but are disclosed
in notes.
Contingent assets are not recognized. However, when
the realization of income is virtually certain, then the
related asset is no longer a contingent asset, but it is
recognized as an asset.
2.11. Operating Segment
An operating segment is a component of an entity
whose operating results are regularly reviewed by
the entity's chief operating decision maker to make
decisions about resource allocation and assess its
performance. The Company has identified the chief
operating decision maker as its Director in Charge.
2.12. Earnings per share
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to the
equity shareholders by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus issue, bonus
element in a rights issue and shares split 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 or loss for the period attributable to the
equity shareholders and the weighted average number
of shares outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.
2.13. Cash flow statement
Cash flows are reported using the indirect method,
whereby profit for the year is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated. The Company considers all
highly liquid investments that are readily convertible
to known amounts of cash to be cash equivalents.
2.14. Non-Current assets (or disposal groups) held for
sale and discontinued operations
Non-Current assets (or disposal groups) are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use and a sale is considered
highly probable. They are measured at the lower of
their carrying amount and fair value less cost to sell,
except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and
contractual rights under insurance contracts, which
are specifically exempt from this requirement.
An impairment loss is recognised for any initial or
subsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognised for
any subsequent increases in fair value less costs to sell
of an asset (or disposal group), but not in excess of any
cumulative impairment loss previously recognised. A
gain or loss not previously recognised by the date of
the sale of the non-current asset (or disposal group) is
recognised at the date of de-recognition.
Non-current assets (including those that are part of
a disposal group) are not depreciated or amortised
while they are classified as held for sale. Interest and
other expenses attributable to the liabilities of a
disposal group classified as held for sale continue to
be recognised.
Non-current assets classified as held for sale and the
assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance
sheet. The liabilities of a disposal group classified as held
for sale are presented separately from other liabilities in
the balance sheet.
A discontinued operation is a component of the entity
that has been disposed of or is classified as held for
sale and that represents a separate major line of
business or geographical area of operations, is part
of a single co-ordinated plan to dispose of such a line
of business or area of operations, or is a subsidiary
acquired exclusively with a view to resale. The results
of discontinued operations are presented separately in
the statement of profit and loss.
2.15.Fair Value Measurement
The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in most
advantageous market for the asset or liability and
the Company has access to the principal or the
most advantageous market,
The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to
the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable.
For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by reassessing categorization
(based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of
each reporting period.
For the purpose of fair value disclosures, the Company
has determined classes of assets & liabilities on the
basis of the nature, characteristics and the risks of the
asset or liability and the level of the fair value hierarchy
as explained above. This note summarizes accounting
policy for fair value. Other fair value related disclosures
are given in the relevant notes.
2.16. Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalents consist
of balances with banks which are unrestricted for
withdrawal and usage.
For the purposes of the presentation of cash flow
statement, cash and cash equivalents include
cash on hand, in banks and demand deposits with
banks, net of outstanding bank overdrafts that are
repayable on demand, book overdraft as they being
considered as integral part of the Company's cash
management system.
2.17. Financial Instruments
Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value
through profit and loss) are added to or deducted from
the fair value measured on initial recognition of financial
asset or financial liability. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit and loss
(FVTPL) are recognised immediately in the statement of
profit and loss.
Financial assets
For purposes of subsequent measurement, financial
assets are classified in below mentioned categories:
• Financial assets carried at amortised cost;
• Financial asset at fair value through other
comprehensive income;
• Financial asset at fair value through profit and loss
Financial assets at amortised cost
Financial assets are subsequently measured at
amortised cost using the effective interest method if
these financial assets are held within a business whose
objective is to hold these assets 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.
Financial assets at fair value through other
comprehensive income
Financial assets are measured at fair value through
other comprehensive income (OCI) if these financial
assets are held within a business model whose
objective is achieved by both selling financial assets
and collecting contractual cash flows, 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.
On initial recognition, the Company makes an
irrevocable election on an instrument-by-instrument
basis to present the subsequent changes in fair
value in other comprehensive income pertaining to
investments in equity instruments, other than equity
investment which are held for trading. Subsequently,
they are measured at fair value with gains and losses
arising from changes in fair value recognised in
other comprehensive income and accumulated in
the "Reserve for equity instruments through other
comprehensive income'. The cumulative gain or loss is
not reclassified to the statement of profit and loss on
disposal of the investments. So far, the Company has
not elected to present subsequent changes in fair value
of any investment in OCI.
Financial assets at fair value through profit and
loss ('FVTPL')
Investment in equity instruments are classified as at
FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair
value in other comprehensive income for investment
in equity instruments which are not held for trading.
Other financial assets are measured at fair value through
profit and loss unless it is measured at amortised cost
or at fair value through other comprehensive income
on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets and
liabilities at fair value through profit and loss are
immediately recognised in profit and loss.
Impairment of financial assets (other than at fair
value)
The Company measures the loss allowance for a
financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial
instrument has increased significantly since initial
recognition. If the credit risk on a financial instrument
has not increased significantly since initial recognition,
the Company measures the loss allowance for that
financial instrument at an amount equal to 12-month
expected credit losses.
However, for trade receivables, the Company measures
the loss allowance at an amount equal to lifetime
expected credit losses. In cases where the amounts
are expected to be realised up to one year from the
date of the invoice, loss for the time value of money
is not recognised, since the same is not considered to
be material.
De-recognition of financial asset
The Company derecognized a financial asset when
the contractual right to the cash flow from the asset
expires or when it transfers the financial asset and
substantially all risk and reward of ownership of the
asset to other party. If the Company neither transfer
nor retain substantially all the risk and reward of
ownership and continue to control the transferred
asset, the Company recognizes its retained interest
in the asset and an associate liability for an amount it
has to pay. If the Company retain substantially all the
risks and reward of ownership of a transferred financial
asset, the company continue to recognize the financial
asset and also a collateralized borrowing for the
proceeds received.
Financial liabilities
All financial liabilities are subsequently measured at
amortised cost using the effective interest method.
Classification as debt or equity
Debt and equity instruments issued by a Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a
residual interest in the assets of the entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net
of direct issue costs.
Loans and borrowings
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized
cost using the effective interest rate (EIR) method.
Gains and losses are recognized in the statement of
profit or loss when the liabilities are derecognized
as well as through the effective interest rate (EIR)
amortization process.
Amortized 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 amortization
is included as finance costs in the statement of profit
and loss.
Trade and other Payables
These amounts represent liabilities for goods & services
provided to the Company prior to the end of the
financial year which are unpaid. These are recognised
initially at fair value and subsequently measured at
amortised cost using effective interest method. Where
the maturity period is within one year from balance
sheet date, the carrying amount approximate the fair
value at initial recognition due to short maturity of
these instruments.
De-recognition of financial liabilities
The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled or have expired. The difference between the
carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised
in the statement of profit and loss.
Reclassification of financial assets and financial
liabilities
The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent. The Company's senior management
determines change in the business model as a result
of external or internal changes which are significant to
the Company's operations. Such changes are evident
to external parties. A change in the business model
occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If
the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification
date which is the first day of the immediately next
reporting period following the change in business
model. The Company does not restate any previously
recognised gains, losses (including impairment gains
or losses) or interest.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.
Impairment of Non-Financial Assets
Intangible assets, property, plant and equipment
measured at cost and other non-financial assets are
evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-
in-use) is determined on an individual asset basis
unless the asset does not generate cash flows that
are largely independent of those from other assets.
In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset
belongs. If such assets are considered to be impaired,
the impairment to be recognized in the statement of
profit and loss is measured by the amount by which
the carrying value of the assets exceeds the estimated
recoverable amount of the asset. An impairment loss
is reversed in the statement of profit and loss if there
has been a change in the estimates used to determine
the recoverable amount. The carrying amount of the
asset is increased to its revised recoverable amount,
provided that this amount does not exceed the
carrying amount that would have been determined
(net of any accumulated amortization or depreciation)
had no impairment loss been recognized for the asset
in prior years.
2.18. Impairment of Non-Financial assets
The non-financial assets, other than biological assets,
inventories and deferred tax asset are reviewed at
each reporting date to determine whether there is
any indication of impairment. If any such indications
exist, then the asset's recoverable amount is estimated.
Goodwill is tested annually for impairment.
For impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash generating units(CGUs). Each CGU represents the
smallest group of assets that generate cash inflows that
are largely independent of the cash inflows of other
assets or CGUs.
Goodwill arising from the business combination is
allocated to CGUs or groups of CGUs that are expected
to benefits from the synergies of the combination.
The recoverable amount of the CGU (or an individual
asset) is the higher of its value in use and its fair value
less cost to sell. Value in used is based on the estimated
future cash flows, discounted to their present value
using a pre-tax discount rate that reflects current market
assessment of the time value of money and the risks
specifics to the CGU (or the asset).
The corporate assets (e.g central office building for
providing support to various CGUs) do not generate
independent cash inflows. To determine impairment
of a corporate asset, recoverable amount is determined
for the CGUs to which the corporate asset belongs.
The impairment loss is recognized if the carrying amount
of the asset or the CGU exceeds its estimated recoverable
amount. Impairment losses are recognized in the
statement of profit & loss. Impairment loss recognized
in respect of CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then
to reduce the carrying amount of the CGU (or group of
CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not
subsequently reversed. In respect of other assets
for which impairment loss has been recognized in
prior periods, the company reviews at each reporting
date whether there is any indication that the loss has
decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount. Such a reversal is
made only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have
been determined, net of depreciation or amortization,
if no impairment loss had been recognized.
2.19. Use of estimates
The preparation of the financial statement in
conformity with Ind AS requires the Management to
make estimates and assumptions considered in the
reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and
expenses during the year. The Management believes
that the estimates used in preparation of the financial
statements are prudent and reasonable. Future results
could differ due to these estimates and the differences
between the actual results and the estimates are
recognized in the periods in which the results are
known / materialize.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are
revised and current and / or future periods are affected.
2.20. Critical accounting judgements and key sources of
estimation uncertainty
The Preparation of the Company's financial statements
requires management to make judgments, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of
contingent liabilities.
2.20.1. Critical accounting judgements in applying
accounting policies
The following are the critical judgements, apart from
those involving estimations that the Management
have made in the process of applying the Company's
accounting policies and that have most significant
effect on the amounts recognized in the financial
statements.
Valuation of deferred tax assets
Deferred tax assets are recognised only to the extent
it is considered probable that those assets will be
recoverable. This involves an assessment of when
those deferred tax assets are likely to reverse and a
judgment as to whether or not there will be sufficient
taxable profits available to offset the tax assets when they
do reverse. The Company reviews the carrying amount of
deferred tax assets at the end of each reporting period.
Any change in the estimates of future taxable income may
impact the recoverability of deferred tax assets.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other
post-employment medical benefits and the present
value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate; future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.
Fair value measurement of financial instruments
When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the DCF model. The inputs to these models
are taken from observable markets where possible,
but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments. (Refer Note 2.15)
Impairment of non-financial assets
In assessing value in use, the estimated future cash
flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs
of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations
are corroborated by valuation multiples, quoted share
prices for publicly traded companies or other available
fair value indicators.
Impairment of financial assets
The impairment provisions for financial assets are based
on assumptions about risk of default and expected
loss rates. The Company uses judgement in making
assumption and selecting the inputs to the impairment
calculation, based on Company's past history, existing
market conditions as well as forward estimate at the
end of each reporting period.
Income taxes
Management judgment is required for the calculation
of provision for income taxes and deferred tax assets
and liabilities. The Company reviews at each balance
sheet date the carrying amount of deferred tax assets.
The factors used in estimates may differ from actual
outcome which could lead to significant adjustment
to the amounts reported in the financial statements.
2.21.Key Source of estimation uncertainty
Key source of estimation uncertainty at the date of
the financial statements, which may cause a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, is in respect of
impairment of investments, provisions and contingent
liabilities.
The areas involving critical estimates are:
Useful lives and residual values of property, plant
and equipment
Useful life and residual value of property, plant and
equipment are based on management's estimate of
the expected life and residual value of those assets
and is as per schedule II to the Companies Act 2013.
These estimates are reviewed at the end of each
reporting period. Any reassessment of these may result
in change in depreciation expense for future years
(Refer note no 2.5).
Impairment of property plant and equipment
The recoverable amount of the assets has been
determined on the basis of their value in use. For
estimating the value in use, it is necessary to project the
future cash flow of assets over its estimated useful life. If
the recoverable amount is less than its carrying amount,
the impairment loss is accounted for in statement of
profit and loss. (Refer note 2.5)
Provisions and contingencies
Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability requires the application of judgement to
existing facts and circumstances, which can be subject
to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take
account of changing facts and circumstances.
Note 32.3: Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised
and measured at fair value and measured at amortised cost and for which fair values are disclosed in financial statements. To provide
an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three
levels prescribed under the accounting standards.
The fair values of the financial assets and liablities are recognised at the amount that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date, other than in a forced or liquidation sale.
The following provides the fair value measurement hierarchy of Company asset and liabilities, for determining and disclosing the fair
value of financial instruments by valuation techniques, grouped into Level 1 to Level 3 as described below:
Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2- Input other than quoted prices included within level 1 that are observable for the asset or liabilities, either directly ( i.e as prices)
or indirectly (i.e. derived from prices). (Net Asset value as published by the fund).
Note 32.3.2: Valuation technique used to determine Fair value
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data
available. The fair values of the financial assets and liabilities are recognised at the amount that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities measured at
amortised cost is approximate to their carrying amounts largely due to the short-term maturities of these instruments. The fair value
of other non-current financial assets and liabilities (security deposit taken/given and advance to employees) carried at amortized
cost is approximately equal to fair value. Hence carrying value and fair value is taken same.
2) The fair values of derivatives are estimated by using pricing models, where the inputs to those models are based on readily
observable market parameters basis contractual terms, period to maturity, and market parameters such as interest rates, foreign
exchange rates, and volatility. These models do not contain a high level of subjectivity as the valuation techniques used do not
require significant judgement, and inputs thereto are readily observable from actively quoted market prices. Management has
evaluated the credit and non-performance risks associated with its derivative counterparties and believe them to be insignificant
and not warranting a credit adjustment.
3) The fair values of the quoted equity shares have been done on quoted price of stock exchange as on reporting date.
Note 32.4: Financial risk management
The Company's principal financial liabilities, comprises of trade payables. The main purpose of these financial liabilities is to finance the
Company's operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents
that derive directly from its operations.
The company's activities expose it to a variety of financial risks: currency risk, interest rate risk, credit risk and liquidity risk. The company's
overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company's
financial performance. The Company's senior management is supported by a financial risk committee that advises on financial risks and
the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company's
senior management the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. The Audit committee reviews
and agrees policies for managing each of these risks, which are summarised below.
Note 32.4.1: Credit Risk
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks and financial institutions and other financial instruments.
Investments
The Company limits its exposure to credit risk by generally investing with counterparties that have a good credit rating.
Cash & Cash Equivalents
With respect to credit risk arising from financial assets which comprise of cash and cash equivalents, the Company's risk exposure arises
from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets at the reporting
date. Since the counter party involved is a bank, Company considers the risks of non-performance by the counterparty as non-material.
Foreign exchange risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in
foreign exchange rate.
The Company derives significant portion of its revenue in foreign currency, exposing it to fluctuations in currency movements. The
Company has laid down a foreign exchange risk policy as per which senior management team reviews and manages the foreign
exchange risks in a systematic manner, including regular monitoring of exposures, proper advice from market experts, hedging of
exposures, etc.
In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the
end of the reporting period does not reflect the exposure during the year.
Note 32.5: Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity
risk management framework for the management of the company's short, medium, and long-term funding and liquidity management
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.
Note 34: 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 31st March, 2025 MCA has not notified any new standards
or amendments to the existing standards applicable to the Company.
Note 35: Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) 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:
(a) 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
(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(vi) The Company has not advanced any fund to any person(s) or entity(ies), including foreign entities with the understanding (whether
recorded in writing or otherwise) that the Company shall:
(a) 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
(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(vii) The Company has no subsidiary and joint venture downward. The company has one associate company downward.
(viii) The lender of the company has not declared company as wilful defaulter and also company has not defaulted in loan repayment
of loan to the lender.
(ix) There is no transaction which are not recorded in the books of account that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961.
(x) The company has used accounting softwares 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 softwares.
Note 36: Approval of Financial Statements
The Financial Statements for the period ended 31st March, 2025 were approved by the Board of Directors and authorized for issue on
16th May, 2025.
See Accompanying notes to the standalone financial statements 1-36
As per our report of even date attached For and on behalf of Board of Directors
For Doogar & Associates BHILWARA TECHNICAL TEXTILES LIMITED
Chartered Accountants
Firm Regn. No. 000561N
Mukesh Goyal Shekhar Agarwal Shantanu Agarwal
Partner Chairman & Managing Director and CEO Director
Membership No. 081810 DIN-00066113 DIN-02314304
Place: Noida (U.P.) Avnish Maurya
Date: 16th May, 2025 Company Secretary & Chief Financial Officer
Membership No. A49392
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