B. Financial risk management
The Company's activities expose it to variety of financial risks such as credit risk, liquidity risk, and market risk. The Company's focus is to foresee the unpredictability of financial markets and seek to
(i) Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and
Credit risk on cash and cash equivalents is limited as the Company makes investment in deposits with banks only.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ? 1815273 as at March 31, 2024 and 761519 as at March 31,2023, being the
total of the carrying amount of trade receivables and loans & advances to employees.
Financial assets that are neither past due nor impaired
None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other loans or receivables that are neither
In addition, exposure to credit risk is also in relation to financial guarantee contracts for which the company has created a liability for potentional exposures.
The ageing of trade receivables as of Balance Sheet date is given below. The age analysis has been considered from the due date.
Trade Receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in
(ii) Liquidity risk
Liquidity risk arises from the Company's inability to meet its cash flow commitments on time. Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
The Company's p rincipal sources of liquidity are cas h and cash equivalents end oth er bank balances. The Company has taken loan from director amounting to Rs .7939000 to meet the qash flow
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
(b) Interest rate risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could hiave an impact on the Company’s cash flows as well as
interest rstn sensitive financial instruments tn manage thn liquidity and fund requirements fnr ita day tn day operations like short term loans.
As at March 31,2024 and 2023, financial liability of ? 7589000 was subject to variable interest rates.
Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in an impact (decrease/increase in case of profit/(loss) before tax of ? 75890 and on income for the year ended
March 31,2024 and 2023 respectively.
Note No 24. OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property
(ii) Basis the information available with the Company as on the reporting date and as on the date on which financial statements are approved and authorised for issue, the Company does not have
any transactions with the companies struck off. Further, the Company has not been declared as a wilful defaulter by any Bank / Financial Institution / any other lender.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in
party identified by or on behalf of the Company (Ultimate Beneficiaries).
(v) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or
entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 13 1 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(vii) All immovable properties shown in the Balance Sheet are held in the name of the Company. Further, in case of joint operations, the immovable properties are held in the name of the operator.
(ix) The Code on Social Security, 2020 (’Code’) relating to employee benefits during employment and post-employment benefits received Presidentia assent in September 2020. The Code has been
published in the Gazette of India. However, the date on which the Code will come in to effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will
record any related impact in the period when the Code become's effective.
(x) The Company does not undertake any transactions with respect to crypto currency / assets.
(xi) CSR is not applicable to Company.
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