Background
Kuber Udyog Limited (the company) was incorporated in India in the year 1982 as public limited company
and is listed on Bombay stock exchange having its registered office at Office Number 156, 1st Floor,
Raghuleela Mega Mall, Kandivali West, Mumbai 400067. The Company is engaged in NBFC (Non-Deposit
taking) activities in India.
a. Basis of preparation
(i) Compliance with Ind AS
The company has prepared financial statements which comprise the Balance Sheet as at 31 March, 202 5, the
Statement of Profit and Loss for the year ended 31 March, 2025, the Statement of Cash Flows for the year
ended 31 March, 2025 and the Statement of Changes in Equity for the year ended as on that date, and
accounting policies and other explanatory information for the year ended March 31, 202 5 in accordance with
Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act),
Companies (Indian Accounting Standards)Rules, 2015 and other relevant provisions of the Act together with
comparative period data as at and for the year ended March 31, 2024.
(ii) Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except stock in trade or investment
consist of equity shares have been valued FVTPL.
b. Revenue Recognition
(i) Interest Income
Interest Income from a Financial Assets is recognized when it is probable that the economic benefits will flow
to the Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, using effective
interest rate method.
(ii) Dividend Income
Dividend Income from investments is recognized when the Company's right to receive the amount has been
established which is generally when shareholder approves the dividend and it is probable that economic
benefit associated with the dividend will flow to the company and the amount of dividend can be measured
reliably.
c. Tax Expense
The tax expense for the period comprises current tax and deferred income tax. Tax is recognized in the
statement of income except to the extent it relates to items directly recognized in equity or in other
comprehensive income.
(i) Current Tax:
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance
sheet date.
(ii) Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognized to the extent it is probable that taxable profit will be available against
which the deductible temporary difference and the carry forward of unused tax credit and unused tax losses,
if any, can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.
(iii) Minimum Alternate Tax:
MAT credit is recognised as an asset only when and to the extend there is convincing evidence that company
will pay higher than the computed under MAT, during the period that MAT is permitted to be setoff under the
Income Tax Act, 1961.
d. Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value
less costs of disposal and value in use. Non-financial assets other than goodwill that suffered impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.
e. Cash and cash equivalents
For the purposes of presentation in the statement of cash flows, cash and cash equivalents include cash in
hand; in banks and other short-term highly liquid investments with original maturities of three months or less
that is readily convertible to known amounts of cash and which are subject to insignificant risk of change in
value.
f. Financial instruments
i) Financial Assets
A. Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss transaction costs that are attributable to the acquisition of the financial asset.
Purchase and sale of financial assets are recognised using trade date accounting.
B. Subsequent measurement
a) Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
b) Financial assets at fair value through other comprehensive income (FVOCI)
A financial asset is measured at FVOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
c) Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is measured at FVTPL.
C. Other Equity Investments
All other equity investments are measured at fair value, with value changes recognized in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the changes in
fair value through other comprehensive income (FVOCI).
D. Impairment of financial assets
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' model (ECL), for evaluating
impairment of financial assets other than those measured at Fair value through profit and loss.
(ii)Financial liabilities
A. Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of
directly attributable transaction costs. The company's financial liabilities include trade payable and
borrowings.
B. Subsequent measurement
Financial liabilities are subsequently carried at amortised cost using the effective interest method.
g. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset on a net basis or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
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