(g) Provisions
A provision is recognized when the Company has a present obligation Legal or Constructive that is
reasonably estimated and it is probable that an outflow of economic benefits will be required to settle the
obligation. These estimates are reviewed at each Balance Sheet date and adjusted to reflect the current
best estimates.
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.
(h) Earnings per Share
Basic earnings per share are calculated by dividing the net profit/ loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for
the effects of diluted potential equity shares, if any.
(i) Employee Benefits
Employee benefits are provided in the books in the following manner:
The liability for encashment of Gratuity and earned leave has been provided as per actual entitlements.
(j) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements.
(k) Financial Instruments
Financial assets and liabilities are recognised when the company becomes a party to the contractual
provisions of the instruments.
Financial Assets
Initial recognition and measurement:
All financial assets are initially recognised at fair value. Transaction costs of acquisition of financial assets
carried at Fair value through profit or loss are expensed in the Statement of profit and loss. Financial
assets are classified, at initial recognition and subsequent measurements ,as financial assets at fair
value or as financial assets measured at amortised cost.
A financial asset is measured at amortised cost less impairment, if the objective of the company’s business
model is to hold the financial asset to collect the contractual cash flows.
Impairment of financial assets:
The company assesses on a forward basis the expected credit losses associated with its financial assets
carried at amortised cost. For trade receivables , the company applies the simplified approach permitted
by Ind AS 109 Financial instruments, which requires expected credit losses to be recognised from initial
recognition of the receivables.
Derecognisation:
The company derecognises a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value . The company’s financial liabilities include trade
and other payables.
Financial liabilities are classified as ‘Financial liabilities at fair value through profit or loss’ if they are held
for trading or if they are designated as financial liabilities upon initial recognition at fair value through
profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offsetted and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle the liabilities simultaneously.
(l) Fair Value Measurement
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 the most advantageous market for the asset or liability. The
principal or the most advantageous market must be accessible by the Company.
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.
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 re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting year.
(m) Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) has notified the following new amendments to Ind AS which the
Company has applied as they are effective for annual periods beginning on or after April 1,2023.
(i) Amendment to Ind AS 1 “Presentation of Financial Instruments”
The amendments require companies to disclose their material accounting policies rather than their
significant accounting policies. Accounting policy information is material if, together with other information
can reasonably be expected to influence decisions of primary users of general purpose financial
statements. The amendment does not have any significant impact on the company.
(ii) Amendment to Ind AS 12 “Income Taxes”
The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that,
on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment
does not have any significant impact on the company.
(iii) Amendment to Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”
The amendments will help entities to distinguish between accounting policies and accounting estimates.
The definition of a change in accounting estimates has been replaced with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements
that are subject to measurement uncertainty”. Entities use measurement techniques and inputs to develop
accounting estimates if accounting policies require items in financial statements to be measured in a way
that involves measurement uncertainty. The amendment does not have any significant impact on the
company.
3 Use of Judgment’s, Estimates and Assumptions
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. 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. Difference between actual results and estimates
are recognised in the periods in which the results are known / materialise. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances existing when the financial statements were prepared. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is
recognised in the year in which the estimates are revised.
19 Leases
The Company has not entered into any significant lease aggrement during the year
20 Contingent liabilities & Capital Commitments:NIL
21 Forward contracts outstanding as at the Balance Sheet date
There are no forward contracts outstanding as at balance sheet date.
22 The liability for encashment of Gratuity and earned leave has been provided as per actual
entitlements. Hence the company has not provided for the employees liability as required by Ind
AS-19 revised 2005 “Employees Benefits”.
23 Details of foreign Exchange Earning and Outgo: NIL
24 Corporate Social Responsibility (CSR)
The company is not liable to incur any expenditure under the CSR guidelines notified by The
Ministry of Company Affairs.
25 Earnings per share
Basic and Diluted earnings per share
The following reflects the income and share data used in the Basic and Diluted EPS computation:
28 Capital management
For the purpose of the Company’s capital management, 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 maximise the shareholder
value and to safeguard the companies ability to remain as a going concern.
The company manages its capital structure and makes adjustments to it, in light of changes in
economic conditions and the requirements of the financial covenants. 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 current capital structure of the company is equity
based with no financing through borrowings. The company is not subject any externally imposed
capital requirement.
No changes were made in the objectives, policies or processes during the year ended 31st
March, 2024 and 31st March, 2023 respectively.
29 Fair value disclosures
29.1 The company uses the following hierarchy for determining and disclosing the fair value
of financial instruments by valuation technique:
The categories used are as follows:
• Level 1: This hierarchy includes financial instruments measured using quoted prices. This
includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price;
• Level 2: The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If all significant inputs required to fair value
an instrument are observable, the instrument is included in level 2; and
• Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.”
The carrying value of all the financials assets and financial liabilities are reasonable a
approximation of their fair values. Accordingly the fair values of such financial assets and
liabilities have not been disclosed separately.
29.2 Financial Risk Management- Objectives And Policies
Due to insignificant business operations the company does not posses any market risk.
29.3 Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily
from trade receivables, cash and cash equivalents, and financial assets measured at amortised
cost.
A Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting
highly rated banks and diversifying bank deposits and accounts in different banks across the
country.
B Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances, security
deposits and others. Credit risk related to these other financial assets is managed by monitoring
the recoverability of such amounts continuously and is based on the credit worthiness of those
parties.
29.4 Liquidity risk is the risk that the company will not be able to meet its financial obligation as
they fall due. Liquidity risk arises because of the possibility that the company could be
required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring
on a regular basis that sufficient funds are available to meet any future commitments.
The company manages its liquidity risk by maintaining sufficient bank balance .
As on 31st March, 2024, the company’s financial liabilities of ' 31.26 Thousand (31st March,
2023'254.75 Thousand) are all current and due in the next financial year.
32 Income Tax & Deferred Tax:
In view of Carry forward losses no provision for Income tax has been made. Deferred Tax Assets
arising out of significant timing differences between the books of Account and Income Tax has
not been recognised as a matter of prudence.
33 Additional regulatory information required by Schedule III of Companies Act,2013
33.1 Details of Benami property:
No proceeding have been initiated or are pending against the Company for holding any Benami
property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made
thereunder.
33.2 Utilisation of borrowed funds and share premium:
(a) 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:
i) directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.
(b) 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 person or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.
33.3 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies
Act,2013.
33.4 Compliance with approved scheme (s) of arrangements:
The Company has not entered into any scheme or arrangement which has an accounting impact
on current or previous year.
33.5 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books
of account.
33.6 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current
or previous year.
33.7 Valuation of Property, Plant and Equipment:
The Company has not revalued its property, plant and equipment (including right-of-use-assets)
during the current or previous year.
33.8 Willful Defaulter:
The Company is not declared as willful defaulter by any bank or financial institution (as defined
under the Companies Act, 2013) or consortium thereof or other lender in accordance with the
guidelines on willful defaulters issued by the Reserve Bank of India.
33.9 Details of Transaction with Struck of Companies:
There are no Transactions with Struck of Companies during the Current and Previous Year.
34 Due to change in auditors during the current year the previous year figures have been relied
upon.
35 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm
to the current year presentation.
36 During the year company incured the profit of Rs.36,16,264/- due to fair value gain on the
financial assets as compare to the last year loss of Rs.18,67,034/-.
SIGNATORIES TO SCHEDULES “1 TO 36”
As per our report of even date attached For and on behalf of the Board of Directors
FOR B L DASHARDA & ASSOCIATES For and on Behalf of The Board of Directors
CHARTERED ACCOUNTANTS
Sd/- Sd/- Sd/-
SUSHANT MEHTA MANISH SHAH ULKA SHAH
PARTNER MANAGING DIRECTOR DIRECTOR
MEMBERSHIP NO. 112489 DIN:-00434171 DIN:-00434277
FIRM NO. 112615W
Sd/- Sd/-
SUNIL SINGH RAZIA MUJAWAR
CHIEF FINANCIAL OFFICER COMPANY SECRETARY
PLACE: MUMBAI PLACE: MUMBAI
DATED : 28th MAY, 2024 DATED : 28th MAY, 2024
UDIN: 24112489BKANXR6991
|