3.6 Provisions, Contingent Liabilities, Contingent Assets and Commitments:
Provisions are recognised when the company has a present obligation (Legal or constructive) as a result of 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. If the effect of the time value of money is material, provisions are
discounted using equivalent period government securities interest rate. Unwinding of the discount is recognised in the
statement of profit and loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimate.
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 or a reliable estimate of the amount cannot be made. Information on contingent liability
is disclosed in the notes to the financial statements. Contingent assets are not recognised. However, when the realisation
of income is virtually certain, then the related assets are no longer a contingent asset, but it is recognised as an asset.
3.7 Revenue Recognition and Other Income
Revenue is recognized upon transfer of control of goods (equipment) or rendering of services to customers in an amount
that reflects the consideration which the Company expects to receive in exchange for those goods or services.
Generally, control is transfer upon shipment of goods to the customer or when the goods is made available to the customer,
provided transfer of title to the customer occurs and the Company has not retained any significant risks and reward of
ownership or future obligations with respect to the goods shipped.
Rental incomes are recognised on accrual basis on time proportion basis.
Revenue is measured at the amount of consideration which the company expects to be entitled to in exchange for
transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf of
third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon
satisfaction of performance obligations and a receivable is recognized when it becomes unconditional.
Contract balances
Trade receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made. Contract
liabilities are recognised as revenue when the Company performs under the contract.
3.8 Foreign currency reinstatement and translation:
Transactions in foreign currencies are initially recorded by the Company at rates prevailing at the date of the transaction.
Subsequently monetary items are translated at closing exchange rates as on balance sheet date and the resulting exchange
difference recognised in statement of profit and loss. Differences arising on settlement of monetary items are also
recognised in statement of profit and loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the transaction. Non-monetary items carried at fair value that are denominated in foreign currencies
are translated at the exchange rates prevailing at the date when the fair value was determined. The gain or loss arising on
translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the
change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or
profit or loss are also recognised in OCI or profit or loss, respectively).
3.9 Employee Benefits
Short term employee benefits are recognized as an expense in the statement of profit and loss of the year in which the
related services are rendered.
The cost of providing gratuity, a defined benefit plans, is determined using the Projected Unit Credit Method, on the basis
of actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising
from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income
in the period in which they arise. Other costs are accounted in statement of profit and loss. Remeasurements of defined
benefit plan in respect of post employment and other long term benefits are charged to the other comprehensive income in
the year in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent periods.
3.10 Taxes on Income
Income tax expense represents the sum of current tax (including MAT and income tax for earlier years) and deferred tax.
Tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised directly in equity
or other comprehensive income, in such cases the tax is also recognised directly in equity or in other comprehensive
income. Any subsequent change in direct tax on items initially recognised in equity or other comprehensive income is also
recognised in equity or other comprehensive income. Current tax provision is computed for income calculated after
considering allowances and exemptions under the provisions of the applicable Income Tax Laws. Current tax assets and
current tax liabilities are off set, and presented as net.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and
the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for
all taxable temporary differences, and deferred tax assets are generally recognised for all deductible temporary differences,
carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against
which those deductible temporary differences, carry forward tax losses and allowances can be utilised. Deferred tax assets
and liabilities are measured at the applicable tax rates. The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available
against which the temporary differences can be utilised.
Minimum Alternative Tax (MAT) is applicable to the Company. Credit of MAT is recognised as an asset only when and to
the extent there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the
period for which MAT credit is allowed to be carried forward. In the year in which the MAT credit becomes eligible to be
recognised as an asset, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT
credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of
MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal
income tax during the specified period.
3.11 Borrowing Costs
Borrowing costs specifically relating to the acquisition or construction of qualifying assets that necessarily takes a substantial
period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part
of the cost of such assets. Borrowing costs consist of interest and other costs that the Company incurs in connection with
the borrowing of funds. For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing
costs eligible for capitalization is determined by applying a capitalization rate to the expenditures on that asset. The
capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are
outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The
amount of borrowing costs capitalized during a period does not exceed the amount of borrowing cost incurred during that
period. All other borrowing costs are expensed in the period in which they occur.
3.12 Earnings Per Share
Basic earnings per share are computed using the net profit for the year attributable to the shareholders’ and weighted
average number of equity shares outstanding during the year.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholders’ and weighted
average number of equity and potential equity shares outstanding during the year including share options, convertible
preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted
during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of
issuance of such potential equity shares, to the date of conversion.
3.13 Current and Non-current classification
The Company presents assets and liabilities in statement of financial position based on current/non-current classification.
The Company has presented non-current assets and current assets before equity, non-current liabilities and current
liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by Ministry of Corporate Affairs.
An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when it is:
a) Expected to be settled in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The Company has
identified twelve months as its normal operating cycle.
3.14 Fair Value Measurement
The Company measures financial instruments 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:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.
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, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy.
3.15 Off-setting financial Instrument
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable rights to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously. The legally enforceable rights must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or
counterparty.
3.16 Segment Reporting - Identification of Segments
An operating segment is a component of the company that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed by the company’s chief operating decision maker to
make decisions for which discrete financial information is available. Based on the management approach as defined in Ind
AS 108, the chief operating decision maker evaluates the company’s performance and allocates resources based on an
analysis of various performance indicators by business segments and geographic segments.
3.17 Cash flow statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from operating,
investing and financing activities of the company are segregated based on the available information.
3.18 Discontinued operation and non-current assets (or disposal groups) held for sale:
Discontinued operation:
A discontinued operation is a component of the Company that has been disposed off 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 off 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 or loss.
Non-current assets (or disposal groups) held for sale:
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. This condition is regarded as met only when a sale is highly probable from
the date of classification, management are committed to the sale and the asset is available for immediate sale in its present
condition. Non-current assets are classified as held for sale from the date these conditions are met and are measured at
the lower of carrying amount and fair value less cost to sell. Any resulting impairment loss is recognised in the Statements
of Profit and Loss as a separate line item. On classification as held for sale, the assets are no longer depreciated. Assets
and liabilities classified as held for sale are presented separately as current items in the Balance Sheet.
Note 4 - SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS:
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based on its assumptions and estimates on parameters available when the
financial statements were prepared. However, existing circumstances and assumptions about future developments may
change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
4.1 Property, plant and equipment:
Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount
of depreciation to be recorded during any reporting period. The useful lives and residual values as per schedule II of the
Companies Act, 2013 or are based on the Company’s historical experience with similar assets and taking into account
anticipated technological changes, whichever is more appropriate.
4.2 Income Tax:
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 an adjustment to the amounts reported.
4.3 Contingencies:
Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any, in
respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters
with accuracy.
4.4 Impairment of financial assets:
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on
Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
4.5 Impairment of non-financial assets:
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount.
4.6 Defined benefits plans:
The Cost of the defined benefit plan and the present value of such 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, mortality rates and attrition rate. 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.
4.7 Recoverability of trade receivable:
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the amount and timing of anticipated future payments and
any possible actions that can be taken to mitigate the risk of non-payment.
4.8 Provisions:
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 require the application of judgement to existing facts and circumstances, which can be
subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and
liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.
4.9 Fair value measurement of financial instruments:
When the fair value 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 Discounted Cash Flow
(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.
Terms/Rights attached to Equity shares
12.1 The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share.
Holders of equity shares are entitled to one vote per share. In the event of liquidation of the Company, the holders
of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of
equity shares held.
13.1 Nature and Purpose of Reserve
1. Capital Redemption reserve
Capital Redemption reserve was created against redemption of preference shares.The reserve will be
utilized in accordance with the provisions of Companies Act 2013.
2. Securities Premium
Securities Premium Account is used to record the premium on issue of shares and is utilised
in accordance with the provisions of the Companies Act, 2013.
3. Retained Earnings
Retained Earnings are the profits/losses of the Company earned till date net of appropriations.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds.
Interest risk
A decrease in bond interest rate will increase the plan liability; however, this will be partially offset by an increase in
return on the plan debt investments.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan’s liability.
Salary risk
The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan’s liability.
31 Taxation
31.1 The Company has not recognised any deferred tax assets on deductible temporary differences and carried
forward business losses as it is not probable that the company will have sufficient future taxable profit which can
be available against the available tax losses
The Company's operating segments are established on the basis of those components that are evaluated by the
the 'Chief Operating Decision Maker' as defined in Ind AS 108 - 'Operating Segments in deciding how to allocate
resources and in assessing performance. These have been identified taking into account nature of products and
services, the differing risks and returns and the internal business reporting systems.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with
following additional policies for segment reporting :
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities
of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a
segment on reasonable basis have been disclosed as "Unallocable".
b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments.
Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as unallocable segments. Investments, tax related assets and
other assets and liabilities that cannot be allocated to a segment on reasonable basis have been
disclosed as "Unallocated".
c) As per Indian Accounting Standard 108 - Operating Segments, the Company has reported segment
on the basis of businesses conducted.
d) The reportable segments are described below:
- The Agro Segment includes trading mainly in rice
- The business, which were not reportable segments during The Year, have been grouped under
The "Others" segment. This mainly comprises of services and renting.
35.2 Fair Valuation Techniques used to determine fair value
The Company maintains 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 included 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:
i) Fair value of trade receivable, cash and cash equivalents, other bank balances, trade payables, loans,
borrowings, deposits and other financial assets and liabilities are approximate at their carrying amounts
largely due to the short-term maturities of these instruments.
ii) 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.
35.3 Fair Value Hierarchy
The Company's activities are exposed to credit risk and liquidity risk which are continuously monitored.
i) Level 1 :- Quoted Prices/published NAV (unadjusted) in active markets for identical assets or liabilities.
ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of
the financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on the Company specific
estimates. If all significant inputs required to fair value an instrument are observable then instrument is
_included in level 2_
iii) Level 3 Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs). If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.
36 Financial Risk Management
The Company's activities are exposed to credit risk and liquidity risk which are continuously monitored.
(a) Credit Risk
Credit risk arises from cash and cash equivalent and other financial assets carried at amortised cost.
(b) Liquidity Risk
The Company is not exposed to any significant liquidity risk.
37 Capital Management
The Company's capital management objectives are:
- to ensure the Company's ability to continue as a going concern; and
- to provide an adequate return to shareholders through optimisation of working capital
The Company working monitors capital on the basis of the amount of working capital
The Company's objective for capital management is to maintain an optimum overall, working capital."
(iii) Debt Service Coverage Ratio - Decrease due to decrease in profit during the year.
(iv) Return on Equity Ratio - Decrease due to decrease in profit.
(v) Inventory Turnover Ratio - Increased primarily due to decrease in average inventory
(vi) Trade Receivables Turnover Ratio - Decreased primarily due to decrease in turnover and increase in average trade
receivables.
(vii) Trade Payables Turnover Ratio - Decreased primarily due to no purchase during the year
(viii) Net Capital Turnover Ratio - Increased primarily due to decrease in working capital and decrease in Sales.
(ix) Net Profit Ratio - Net profit ratio decreases primarily due to decrease in profit during the year.
(x) Return on Capital Employed Ratio - Decreased primarily due to lower operating profit.
42 Relationship with Struck-off companies
The Company has not entered any transaction with struck-off companies i.e., investments in securities,
receivables, payables, shares held by struck off companies and other balances during the period.
43 Inclusion of Prior period errors
No prior period items have been recorded or exists as on date.
44 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
45 The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
46 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
47 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.
48 The provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not
applicable to the Company.
49 The Company does not have any transaction which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
50 The Company has not advanced any loans or advances in the nature of loans to specified persons viz.
promoters, directors, KMPs, related parties; which are repayable on demand or where the agreement does
not specify any terms or period of repayment.
51 The Company does not have any subsidiary and hence the provisions for compliance with the number of
layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of
Layers) Rules, 2017 are not applicable.
52 The Ministry of Corporate Affairs (MCA) has issued a notification dated 24th March 2021 (Companies
(Accounts) Amendments Rules, 2021) (‘the notification’) which is effective from 1st April 2023, the
notification requires that every Company which uses accounting software for maintaining its books of
account shall use only such accounting software which has a feature of recording audit trail of each
transaction, and further creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be tampered with. There have
been no instances of audit trail feature being tempered with in respect of the accounting software used by
the Company during the year. Additionally, the audit trail of previous year has been preserved by the
Company as per the statutory requirements for record retention, to the extent it was enabled.
53 Title Deed of immovable property are in the name of the company.
54 The figures for the previous year have been re-grouped/re-classified/re-arranged, wherever necessary, to
correspond with the current year classification/disclosure.
55 The Financial Statements were approved for issue by Board of Directors on 26th May, 2025.
As per our Report of even date For and on behalf of the Board of Directors
For Pathak H. D. & Associates LLP Sd/- Sd/-
Chartered Accountants Yogesh Dawda Asha Yogesh Dawda
Firm Registration No. 107783W/W100593 Chairman & Whole Time Director
Director
DIN: 01767642 DIN: 06897196
Sd/-
Mukesh D Mehta Mahima Shah
Partner Company Secretary
Membership No 043495 Membership No. F74785
Place: Mumbai Place: Mumbai
Date: 26th May, 2025 Date: 26th May, 2025
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