q. Provisions, Contingent liabilities, Contingent assets and Commitments:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a 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. When the Company expects some
or all of the provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of any reimbursement.
If the effect of the 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. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.
Contingent liability is disclosed in the case of:
- a present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;
- a present obligation arising from past events, when no reliable estimate is possible;
- a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
(b) Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares
is entitled to one vote per share.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.
30. Contingent Liabilities:
Management has reviewed all potential obligations arising from past events that could result in
an outflow of economic benefits. As of 31st March 2025, based on this review, the Company has
determined that there are no contingent liabilities that are probable or reasonably possible of
resulting in a material outflow of resources, and thus no disclosures are required under Ind AS
37.
31. Disclosures as required by Indian Accounting Standard (Ind AS) 20 Employee Benefits:
Gratuity Plan: The Company provides for gratuity, a defined benefit retirement plan covering eligible
employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount equivalent to 15 days salary for each
completed year of service, vesting occurs upon completion of five continuous years of service in
accordance with Indian law. Re-measurement gains and losses arising from the adjustments and
changes in actuarial assumption are recognized in the period in which they occur, in Other
Comprehensive Income. The following tables set out the disclosures in respect of the gratuity plan as
required under Ind AS 20.
(ii) Company as lessee: -
The company evaluates if any arrangement qualifies to be a lease as per the requirements of Ind-AS 116.
Identification of a lease requires significant judgment. The company uses judgment in assessing whether a
contract (or part of contract) includes a lease, the lease term (including anticipated renewals), the applicable
discount rate, variable lease payments whether are in- substance fixed. The judgment involves assessment
of whether the asset included in the contract is a fully identifies asset based on the facts and circumstances,
whether the lessee intends to opt for continuing with the use of the asset upon the expiry thereof, and
whether the lease payments are fixed or variable or combinations of both.
All the lease is short term lease, hence Ind-AS has not been applied on Short Term Lease of Rs. 1106304/-
35. Earnings per Share
The calculation of Earnings per Share (EPS) as disclosed in the Statement of Profit and Loss has been
made in accordance with Ind AS- 33 on "Earnings per Share".
38. Financial Risk Management
The financial assets of the company include investments, loans, trade and other receivables, and cash
and bank balances that derive directly from its operations.
The financial liabilities of the company, other than derivatives, include loans and borrowings, trade
and other payables and the main purpose of these financial liabilities is to finance the day to day
operations of the company.
The company is mainly exposed to the following risks that arise from financial instruments:
(i) Market risk
(ii) Liquidity risk
(iii) Credit risk
The Company's senior management oversees the management of these risks and that advises on
financial risks and the appropriate financial risk governance framework for the Company.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market prices comprise two types of risk: interest rate risk, foreign
currency risk.
(a) Foreign currency risk
The company imports certain assets and material from outside India. The exchange rate between the
Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate
substantially in the future. Consequently the company is exposed to foreign currency risk and the
results of the company may be affected as the rupee appreciates/ depreciates against foreign
currencies. Foreign exchange risk arises from the future probable transactions and recognized assets
and liabilities denominated in a currency other than company's functional currency.
The company measures the risk through a forecast of highly probable foreign currency cash flows and
manages its foreign currency risk by hedging appropriately. The Company uses foreign exchange
forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The
Company's exposure to foreign currency risk was based on the following amounts as at the reporting
dates:
Foreign currency sensitivity analysis
Any changes in the exchange rate of GBP and USD against INR is not expected to have significant impact on
the Company's profit due to the less exposure of these currencies. Accordingly, a 10%
appreciation/depreciation of the INR as indicated below, against the GBP and USD would have
increased/reduced profit by the amounts shown below. This analysis is based on the foreign currency
exchange rate variances that the Company considered to be reasonably possible at the end of the reporting
period. The analysis assumes that all other variable remains constant:
(b) Interest Rate Risk
The company is also exposed to interest rate risk, changes in interest rate will affect future cash flows.
(ii) Liquidity Risk
The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and
other payables. The company's principal sources of liquidity are cash and cash equivalents and the cash
flow that is generated from operations. Ultimate responsibility of liquidity risk management rests with
board of directors.
The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity
planning tool. The company plans to maintain sufficient cash and marketable securities to meet the
obligations as and when falls due.
The below is the detail of contractual maturities of the financial liabilities of the company at the end of
each reporting period:
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in
financial loss to the company. The company has a prudent and conservative process for managing its
credit risk arising in the course of its business activities.
Write off Policy
The financials assets are written off in case there is no reasonable expectation of recovering from the
financial asset.
39. Capital Management
The capital includes issued equity capital, share premium and all other equity reserves attributable to the
equity holders of the company. The primary objective of the company's capital management is to maintain
optimum capital structure to reduce cost of capital and to maximize the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants which otherwise would permit the banks to
immediately call loans and borrowings. In order to maintain or adjust the capital structure, the company
may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company's gearing ratio was as follows:
Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing
in the current period.
There were no changes in the objectives, policies or processes for managing capital during the year ended
31 March 2024 and 31 March 2025.
40. In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet
date, whether there are any indications with regard to the impairment of any of the assets. Based on such
assessment. It has been ascertained that there in no potential loss is present and therefore, formal estimate of
recoverable amount has not been made.
41. The Company owes dues of Rs Nil (Previous Year Rs. Nil) towards Micro and Small Enterprises, which are
outstanding for more than 45 days as at 31st March, 2025. This information as required to be disclosed under
the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such
parties have been identified on the basis of information available with the company.
42. There are no material events after the reporting period having significant impact on financial statement.
46. DETAILS OF BENAMI PROPERTY HELD
The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending against the group
companies for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made thereunder.
47. Previous Year figures have been regrouped/ reclassified wherever considered necessary.
48. The Standalone Financial Statement has been approved by the Board of Directors as on 30th May, 2025.
As per our report of even date attached
For P M P K & Co. For and on behalf of the Board of Directors
Chartered Accountants Phoenix International Limited
Firm Registration No.: 019681N
per Pravesh Kumar Sharma Narender Kumar Makkar P. M. Alexander
Partner Director & Company secretary Director
Membership No.: 093350 DIN : 00026857 DIN : 00050022
Place: New Delhi Mr. Korde Tushar Deepak
Date:30.05.2025 Chief Executive Officer
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