2.6. Provisions, contingent liabilities and contingent assets
Contingent liability:
A possible obligation that arises from past events and 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 are disclosed as contingent liability and not provided for. Such liability is not
disclosed if the possibility of outflow of resources is remote.
Contingent assets:
A contingent asset is a possible asset that arises from past events and whose existence 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. Contingent assets are not recognised and disclosed only when an
inflow of economic benefits is probable.
Provisions:
A provision is recognized when as a result of a past event, the Company has a present obligation
whether 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. If the obligation is expected to be settled
more than 12 months after the end of reporting date or has no definite settlement date, the provision is
recorded as non-current liabilities after giving effect for time value of money, if material. Where
discounting is used, the increase in the provision due to the passage of time is recognized as a finance
cost.
2.7. Revenue Recognisation
a) Revenue from the sale of goods is recognised when significant risks and rewards in respect of
ownership of the goods are transferred to the customer, as per the terms of the order. The company has
shown separately in the expenses as the revenues from the operations are stated at gross amount as per
the Requirement of Ind AS 18 “Revenue”. Further, the amounts collected on behalf of third parties
such as government authorities for VAT, Service Tax and GST are excluded from the revenue since
the same do not result in increase in Equity.
b) Interest Income is recognised on time proportion basis.
2.8. Income taxes
Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized
in statement of profit and loss, except when they relate to items recognized in other comprehensive
income or directly in equity, in which case, income tax expenses are also recognized in other
comprehensive income or directly in equity respectively. Current tax is the tax payable on the taxable
profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by
the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current
income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate. Deferred taxes arising from deductible and taxable temporary
differences between the tax base of assets and liabilities and their carrying amount in the financial
statements are recognized using substantively enacted tax rates and laws expected to apply to taxable
income in the years in which the temporary differences are expected to be received or settled.
Deferred tax asset are recognized only to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences can be utilized. The carrying amount of
deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax
assets to be utilized.
2.9. Earnings Per Share
a) Basic earnings per share are calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
b) 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 are
adjusted for the effects of all dilutive potential equity shares, if any.
2.10. Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of these assets, until such time as the assets are substantially ready for their
intended use or sale. All other borrowing costs are recognised in statement of profit and loss
in the period in which they are incurred.
2.11. Segment Reporting
The company has only one preliminary reportable segment i.e. Professional/Consultancy Services in
Multimedia & Advertisement Space or Time hence there is no separate reportable segments as
required in Ind AS 108 issued by ICAI.
2.12. Depreciation
Depreciation on tangible fixed assets is provided using the WDV Method based on the useful life of
the assets as estimated by the management and is charged to the Statement of Profit and Loss as per
the requirement of Schedule II of the Companies Act, 2013. In case of additions or deletions during
the year, depreciation is computed from the month in which such assets are put to use and up to
previous month of sale or disposal, as the case may be.
2.13. Foreign currency Transactions
Foreign currency transactions are recorded at the exchange rate prevailing at the date of transactions.
Exchange difference arising on settlement of transactions is recognised as income or expense in the
year in which they arise.
Monetary assets and liabilities related to foreign currency transactions
remaining unsettled at the end of the year are restated at the year-end rate and difference in translations
and unrealised gains / (losses) on foreign currency transactions are recognised in the statement of
profit & loss.
The premium or discount arising at the inception of forward exchange contracts is amortised as
expense or income over the life of the contract. Exchange differences on such contracts are recognised
in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss
arising on cancellation or renewal of forward exchange contract is recognised as income or as expense
for the year.
20. Disclosure of Interest in other Entities:
As per Ind AS 112 - ‘ Disclosure of Interest in other Entities’, as notified by the Rules, the disclosures
of transactions with the related parties as defined in the accounting standard are given below:
A. Related parties with whom transactions have taken place during the year
Key management personnel
B. Transactions between the Company and related parties and the status of outstanding
balances as at March 31, 2023:
C. Disclosure of significant transactions with related parties (Rs.) NA
a) In opinion of the directors, contingent liability not provided is Rs. Nil. (Nil)
b) Estimated amount of contracts remaining to be executed on capital account and not provided
for: Rs. Nil (Nil).
21. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long Term and Short Term
Loans & Advances, In-operative bank accounts, Other Current and Other Non Current Assets and
Provisions are subject to the confirmation of the parties concerned. Wherever confirmation of the
parties for the amounts due to them / amounts due from them as per books of accounts are not
received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.
22. In the absence of information regarding outstanding dues of MICRO or Small Scale Industrial
Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not
disclosed the same as required by Schedule III to the Companies Act.
23. Wherever no vouchers and documentary evidences were made available for our verification, we
have relied on the authentication given by management of the 0company.
24. Figures have been rounded off to the nearest rupee wherever required.
As per our report of even date
For, A. L. Thakkar & Co. For and on behalf of the Board
Chartered Accountants NIRBHAY COLOURS INDIA LIMITED
FRN. No. 120116W
sd/- sd/-
Sanjeev V Shah Raghvendra Kulkarni
(Partner) Managing Director
M. No.: 042264 DIN: 06970323
UDIN : 24042264BKAASY5376
Place: Ahmedabad sd/-
Date: 27/05/2024 Sonal D Gandhi
Director & CFO
DIN:07351479
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