N. Provisions and Contingent liabilities and contingent assets:
a) Provisions:
Provisions are recognised 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 are liable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised 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 pretax 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 recognised as a finance cost.
Provisions are reviewed at each balance sheet and adjusted to reflect the current best estimates.
b) Contingent Liabilities and Contingent assets:
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 not wholly within 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.
A contingent assets is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of
economic benefits is probable, contingent assets are disclosed in the financial statements.
Contingent liabilities and contingent assets are reviewed at each balance sheet date.
O. Earnings per Share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.
For the purpose of calculating diluted earnings per share, the net profit or loss 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.
P. Leases:
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
(a) Lease Liability
At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using incremental borrowing rate.
(b) Right-of-use assets
Initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
Subsequent measurement
(a) Lease Liability
Company measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and
(c) remeasuring the carrying amount to reflect any reassessment or lease modifications.
(b) Right-of-use assets
Subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight line basis over the shorter of the lease term and useful life of the under lying asset.
Impairment Short-term Lease
Short-term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease. If the Company elected to apply short-term lease, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee's benefit.
As a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever, the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
Lease income is recognised in the statement of profit and loss on straight line basis over the lease term.
Transition to Ind AS 116
Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.
The Company has adopted Ind AS 116, effective annual reporting period beginning 1st April, 2019 and applied the standard with modified retrospective approach to its leases.
3. RECENT PRONOUNCEMENT
On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023. This notification has resulted into following amendments in the existing Accounting Standards which are applicable from April 1, 2023.
i. Ind AS 101 - First time adoption of Ind AS -modification relating to recognition of deferred tax asset by a first-time adopter associated with (a) right to use assets and related liabilities and (b) decommissioning, restoration and similar liabilities and corresponding amounts recognised as cost of the related assets.
ii. Ind AS 102 - Share-based Payment -modification relating to adjustment after
vesting date to the fair value of equity instruments granted.
iii. Ind AS 103 - Business Combination -
modification relating to disclosures to be made in the first financial statements following a business combination.
iv. Ind AS 107 - Financial Instruments Disclosures -modification relating to disclosure of material accounting policies including information about basis of measurement of financial instruments.
v. Ind AS 109 - Financial Instruments - modification relating to reassessment of embedded derivatives.
vi. Ind AS 1 - Presentation of Financials Statements -modification relating to disclosure of 'material accounting policy information' in place of 'significant accounting policies'.
vii. Ind AS 8 - Accounting Policies, Change in Accounting Estimates and Errors - modification of definition of 'accounting estimate' and application of changes in accounting estimates.
viii. Ind AS 12 - Income Taxes - modification relating to recognition of deferred tax liabilities and deferred tax assets.
ix. Ind AS 34 - Interim Financial Reporting -modification in interim financial reporting relating to disclosure of 'material accounting policy information' in place of 'significant accounting policies'.
The Company is evaluating the amendments and the expected impact, if any, on the Company's financial statements on application of the amendments for annual reporting periods beginning on or after 1 April 2023.
For Bharat Parikh & Associates For and Behalf of Board of Directors of
Chartered Accountants Pace E-Commerce Ventures Limited
FRN: 101241W (Formerly Known as Pace Sports & Entertainment Private Limited)
Peer Review Certificate No: 014390 CIN: U51909PN2015PTC156068
CA Bharat Parikh CS Nikita Pediwal Shaival D Gandhi Harshal Gala
Sr. Managing Partner Company Secretary Managing Director Director
Membership No : 038204 DIN: 02883899 DIN: 09539871
UDIN: 24038204BJZYJA9478 Date: 18.05.2024 Date: 18.05.2024 Date: 18.05.2024
Place: Ahmedabad Place: Ahmedabad Place: Ahmedabad Place: Ahmedabad
Date: 18.05.2024
|