22. 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 a reliable
estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed,
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.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable
that the outflow of resources would be required to settle the obligation, the provision is reversed.
23. Trade Payables(MSME)
The Process of identifying the suppliers who fall within the Micro, Small & Medium Enterprises Development Act 2006 has
been initiated. To the extent of those creditors who have confirmed their MSME Status, we have bifurcated the creditors
accordingly. Interest payable in respect of those MSME creditors is recorded on payment basis as and when paid.
Note 39: Financial Risk Management-Objectives and Policies
The Company's financial liabilities comprise Short term borrowings, capital creditors, trade and other payables. The main purpose of these
financial liabilities is to finance the Company's operations. The Company's financial assets include trade and other receivables, cash and cash
equivalents and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by the
Audit Committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee also provides
assurance to the Company's management that the Company's risk activities are governed by appropriate policies and procedures and that risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and
agrees policies for managing each of these risks, which are summarised below.
(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
risk comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments
affected by market risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities. The
Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management
of any material adverse effect on the Company.
Foreign Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables
held constant. The impact on the Company's profit before tax is due to changes in the fair value of assets and liabilities.
(ii) Credit Risks
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 from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a
certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The
Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit
policy under which each new customer is analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor
receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical
data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 8 as the Company
-
ers are located in several jurisdictions and industries.
Refer note no 8 for ageing of trade receivable as of 31st March, 2025 and 31st March, 2024.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents,
various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering
into transactions with banks that have high ratings. The Company's treasury department authorizes, manages, and oversees new transactions
with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on
internal decision making processes, such as the approval of the board of directors.
Note: - 40:- Corporate social responsibility fCSR) Activity
The Company is not liable for CSR for the year as per Section 135 of the Companies Act read with Schedule VII.
Note: - 41:- Earning Per Share:
Basic earnings (loss) 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.
In terms of Ind AS- 33 on "Earning Per Share" the calculation of EPS is given below
Note: - 42: Segment Reporting
The Company is involved in only one business, therefore as per IND AS 108 on Operating segment reporting, it is not applicable to the
company.
Note: - 43: Related Party
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless
of whether a price is charged. Close members of the family of a person are those family members who may be expected to influence,
or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the
entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in
respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Terms and conditions of transactions with related parties
1. The sales to/ purchases from/ services availed from/ services provided to related parties are made on terms equivalent to
those that prevail in arm's length transactions.
2. The above Remuneration is exclusive of Leave Encashment and Gratuity as the same is provided on Actuarial Valuation done
for company as a whole.
Note: - 44: Micro. Small Or Medium Enterprises
Based on the information/documents available with the Company, information as per the requirements of section 22 of the Micro,
Small and Medium Enterprises Development Act, 2006
*The company has not provided or calculated interest payable to MSMED suppliers for payments made after 45 days as per Micro, Small
& Medium Enterprises Development Act 2006 as there is no claim by the MSME vendors for any interest and also they have not raised
any objection.
Note:- MSME classification done on the basis of confirmation of MSME Suppliers, the suppliers not responded has been kept as non
MSME.
Note:- 45: Quarterly Returns submitted to Banks
The company has been sanctioned working capital limits in excess of five crores rupees, in aggregate, from banks on the basis of security
of current assets. Differences between Quarterly returns or statement filed by the company with banks and books of account are as
follows:
(i) Details of Benami Property
No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made there under.
(ii) Wilful Defaulter
The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.
(iii) Compliance with number of layers of companies
The Company has not made any investments, therefore provisions of 186(1) of The Companies Act,2013 is not
applicable to the company.
(iv) Undisclosed income under the Income Tax Act
There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2025 which needs to
be recorded in the books of account.
(v) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in crypto currency or virtual currency during the current year.
(vi) Borrowings
The borrowings obtained by the company from banks and financial institutions have been applied for the purposes
for which such loans were taken.
(vii) Registration of charges or satisfaction with Registrar of Companies
There are no pending Charges to be created or satisfied with the Registrar of Companies beyond the statutory period.
(viii) Relationship with struck off companies
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013.
(ix) Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangements which has an accounting impact on current financial
year.
(x) Utilisation of Borrowed Fund & Share Premium
a The Company have not advanced or loaned or invested funds to any other person(s) or entities, including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
• 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
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 48:
Previous year's figures have been rearranged and/or regrouped, wherever necessary to facilitate the comparison with the current year.
Note 49:
The financial statements have been approved by the Audit Committee at its meeting held on 29th May, 2025 and by the Board of
Directors on the same date.
Shyam Daga Rajiv Daga As Per Our Report Attached Of Even Date
Managing Director Director For GRV & PK
DIN: 00561803 DIN: 01412917 Chartered Accountants
Firm Reg. No. 008099S
Raju Ram Prajapat Siva Kiran Mavoori (H. Ganpatlal Kawad)
Chief Financial Officer Company Secretary Partner
M.No.:A65111 Membership No. 204840
UDIN: 25204840BMJMCA8489
Place: Bangalore
Date:29/05/2025
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