i. Provision
A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the reporting date. These estimates
are reviewed at each reporting date and adjusted to reflect the current best estimates.
Where the company expects some or all of a 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 any provision is presented in
the statement of profit and loss net of any reimbursement.
j. Cash and cash equivalents.
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank
and in hand and short-term investments with an original maturity of three months or less.
k. Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule of the Companies Act, 2013,
the company has elected to present earnings before interest, tax, depreciation and
amortization (EBITDA) as a separate line item on the face of the statement of profit and loss.
The company measures EBITDA on the basis of profit / (loss) from continuing operations. In
its measurement, the company does not include depreciation and amortization expense,
finance costs and tax expenses.
Nature and Purpose of Reserves:
Securities Premium
Securities Premium is used to record the premium on issue of shares. The reserve is utilised in
accordance with the provisions of the Act.
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to
shareholders
Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for
distribution to shareholders
Basic EPS amounts are calculated by dividing the profit/(loss) for the period attributable to
equity holders by the weighted average number of equity shares outstanding during the Period.
Diluted EPS amounts are calculated by dividing the profit/(loss) attributable to equity holders by
the weighted average number of equity shares outstanding during the period plus the weighted
average number of equity shares that would be issued on conversion of all the dilutive potential
equity shares into equity shares.
Terms and conditions of transactions with related parties
The transactions with related parties are in the ordinary course of business and are on terms
equivalent to those that prevail in arm's length transactions. Outstanding balances at the Period -
end are unsecured and settlement occurs in cash. For the period ended 31 March 2025, the
Company has not recorded any impairment of receivables relating to amounts owed by related
parties. This assessment is undertaken each financial year through examining the financial position
of the related parties and the market in which the related parties operate.
Note 24: Details of micro enterprises and small enterprises as defined under the Micro, Small
and Medium Enterprises
The Company did not have any transactions with Small Scale Industrial ('SME's') Undertakings
during the year ended March 31, 2025 and hence there are no amounts due to such
undertakings. The identification of SME's undertakings is based on the management's
knowledge of their status.
The Company has not received any information from "suppliers" regarding their status under the
Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any,
relating to amount unpaid as at the year ended together with interest paid / payable as required
under the said Act have not been furnished.
Note 25: Capital Commitments
There are no capital commitments outstanding as at 31 March 2025.
Note 27: Employee Benefits - Retirement benefits
Defined Contribution Plan:
An entity is not participating in any employer defined benefit plan that does not prepare plan
valuations on an Ind AS 19 basis. Company not having employee who served from more than 5
years.
Note 28: Financial instruments - fair value measurements
Some of the Company's financial assets and financial liabilities are measured at fair value at the
end of each reporting period. The following table gives information about how the fair values of
these financial assets and financial liabilities are determined (in particular the valuation techniques
and inputs used).
Fair value hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised 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.
The Company has assessed that trade receivables, cash and cash equivalents, other financial assets,
trade payables and other financial liabilities approximate their carrying amounts largely due to the
short-term nature of the instruments. Long term Borrowings are evaluated based on parameters
such as interest rate and risk characteristic of financial project. Based on the evaluation, no impact
has been identified.
The Company's principal financial liabilities comprise of borrowings, trade payables, other payables
and other financial liabilities. The main purpose of these financial liabilities is to finance the
Company's operations. The Company's principal financial assets include trade and other
receivables, other financial assets and cash and cash equivalents that arise directly from its
operations.
The Company's activities expose it to market risk, liquidity risk, credit risk and interest rate risk.
(A) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may change
as a result of changes in the interest rates, foreign currency exchange rates, and other market
changes that affect market risk sensitive instruments. Market risk is attributable to all market risk
sensitive financial instruments, including investments and deposits, payables and borrowings.
The Company's overall risk management focuses on the unpredictability of financial markets and seeks to
minimise
potential adverse effects on the financial performance of the Company.
Details relating to the risks are provided here below:
(i) Foreign currency risk
Foreign exchange risk is the risk of impact related to fair value or future cash flows Foreign exchange
risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign
exchange rates relates to import of modules, wherever required.
The Company regularly evaluates exchange rate exposure arising from foreign currency transactions. The
Company follows the established risk management policies. It uses derivative instruments like forward
covers/swap to hedge exposure to foreign currency risk.
When a derivative is entered into for the purpose of hedge, the Company negotiates the terms of
those derivatives to match the terms of the foreign currency exposure.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in prevailing market interest rates. The Company's exposure to the
risk due to changes in interest rates relates primarily to the Company's borrowings with floating
interest rates. Interest rate sensitivity has been calculated assuming the borrowings outstanding
at the reporting date have been outstanding for the entire reporting period. The Company
constantly monitors the credit markets and revisits its financing strategies to achieve an optimal
maturity profile and financing cost.
(iii) Credit risk
Credit risk arises when a customer or counterparty does not meet its obligations under a customer
contract or financial instrument, leading to a financial loss. The Company is exposed to credit risk
from its operating activities primarily trade receivables and from its financing/investing activities,
including deposits with banks and foreign exchange transactions.
The carrying amount of financial assets represents the maximum credit risk exposure.
a. Trade receivables
The Company has already evaluated the credit worthiness of its customers and did not find any
credit risk related to trade receivables. As per simplified approach, the Company makes provision
of expected credit losses on trade receivables using a provision matrix on the basis of its historical
credit loss experience to mitigate the risk of default in payments and makes appropriate provision
at each reporting date wherever outstanding is for longer period and involves higher risk.
Total trade receivables as on 31 March 2025 is 61.28 Lacs.
b. Cash and cash equivalents and bank deposits
Credit risk on cash and cash equivalents, deposits, is generally low as the Company has transacted with
reputed banks.
c. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities and the availability of funding through an adequate amount of
credit facilities to meet obligations when due. The management is responsible for managing
liquidity, funding as well as settlement. Further the management monitors the Company's liquidity
position through rolling forecasts on the basis of expected cash flows.
(D) Capital management
The Company's objectives when managing capital are to safeguard the Company's ability to
continue as a going concern in order to provide maximum returns for shareholders and benefits
for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
For the purposes of the Company's capital management, capital includes issued capital, securities premium
and all other equity reserves attributable to the equity holders.
The Company monitors capital using debt to equity ratio, which is net debt divided by total equity. The
Company includes within net debt, interest bearing loan and borrowings, less cash and cash equivalents,
excluding discontinued operations.
Gearing Ratio- There is no Debts in the company as on 31.03.2025 and 31.03.2024 . Thus ,Gearing Ratio is
Nil as on 31.03.2025 and 31.03.2024.
Note: 31 Other statutory information
a) The Company do not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property.
b) As per the information and explanations to us The Company do not have any transactions
with companies struck off.
c) The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial Period.
d) The Company has not entered into any such transaction which is not recorded in the books
of accounts that has been surrendered or disclosed as income during the Period in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961)
e) The Company has not been declared wilful defaulter by any bank or financial institution or
other lender
f) The Company does not have any Intangible Assets, thus, disclosures relating to revaluation
of Intangible Assets is not applicable.
g) The Company has not revalued its property, Plant and Equipment (including Right of use
Assets), thus valuation by a registered valuer as defined under rule 2 of the Companies
(Registered Valuers and Valuation) Rules, 2017 is not applicable.
h) The Company has not advanced or loaned or invested funds to any other person or entity,
including foreign entities (Intermediaries) with the understanding that the intermediary
shall:
(i) directly or indirectly lend or invest in other persons 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 to or on behalf of the ultimate
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