Provisions are recognized 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. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.
Contingent liabilities are recognized only when there is a possible obligation arising from past
events, due to occurrence or non-occurrence of one or more uncertain future events, not
wholly within the control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable estimate of obligation
cannot be made. Contingent assets are not recognized in the financial statements.
2.15 Statement of Cash Flow:
Cash flows are reported using the indirect method, whereby profit/(loss) before exceptional
items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating, investing
and financing activities of the Company are segregated based on available information.
2.16 Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial Assets
Initial recognition and measurement
All financial assets are initially recognized when the Company becomes a party to the
contractual provisions of the instrument. All financial assets are initially measured 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.
Subsequent measurement
Classification
For the purpose of subsequent measurement, the Company classifies financial assets in
following categories:
Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the
effective interest method. The amortized cost is reduced by impairment losses, if any. Interest
income and impairment are recognized in the Statement of Profit and Loss.
Financial assets at fair value through other comprehensive income (FVTOCI)
These assets are subsequently measured at fair value through other comprehensive income
(OCI). Changes in fair values are recognized in OCI and on derecognition, cumulative gain or
loss previously recognized in OCI is reclassified to the Statement of Profit and Loss. Interest
income calculated using EIR and impairment loss, if any, are recognized in the Statement of
Profit and Loss.
Financial assets at fair value through profit or loss (FVTPL)
These assets are subsequently measured at fair value. Net gains and losses, including any
interest income, are recognized in the Statement of Profit and Loss.
Financial assets are not reclassified subsequent to their recognition except if and in the period
the Company changes its business model for managing for financial assets.
De-recognition
The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash flows
in a transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset. If the Company enters into transactions whereby it transfers assets recognized
on its balance sheet, but retains either all or substantially all of the risks and rewards of the
transferred assets, the transferred assets are not derecognized. Any gain or loss on
derecognition is recognized in the Statement of Profit and Loss.
Impairment of financial assets
The Company applies the expected credit loss model for recognizing impairment loss on
financial assets measured at amortized cost, lease receivable, trade receivable other
contractual rights to receive cash or other financial assets. For trade receivable, the Company
measures the loss allowance at an amount equal to life time expected credit losses. Further,
for the measuring life time expected credit losses allowance for trade receivable the Company
has used a practical expedient as permitted under Indian AS 109. This expected credit loss
allowance is computed based on provisions, matrix which takes into account historical credit
loss experience and adjusted for forward looking information.
Financial Liabilities-
Initial recognition and measurement
All financial liabilities are initially recognised when the Company becomes a party to the
contractual provisions of the instrument. All financial liabilities are initially measured at
amortized cost unless at initial recognition, they are classified as fair value through profit or
loss. In case of trade payables they are initially recognize at fair value and subsequently, these
liabilities are held at amortized cost, using the Effective interest method.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost or FVTPL.
A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a
derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognised
in the Statement of Profit and Loss.
Financial liabilities other than classified as FVTPL, are subsequently measured at amortized
cost using the effective interest method. Interest expense is recognised in Statement of Profit
and Loss. Any gain or loss on derecognition is also recognised in the Statement of Profit and
Loss.
De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on subsequently different terms, or the terms of an existing liability are subsequently
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of the new liability. The difference in the respective carrying
amount is recognize in the Statement of Profit & Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the balance
sheet when, and only when, the Company currently has a legally enforceable right to set off
the amounts and it intends either to settle them on a net basis or to realise the assets and settle
the liabilities simultaneously.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the
financials.
In accordance with the requirements of Indian Accounting Standard-24, the following
transactions are considered as Related Party transactions: -
3. NOTES TO ACCOUNTS:
1) Some of the Balances of sundry creditors, sundry debtors, loans & advances, and other liabilities
are subject to balance confirmation and reconciliation.
2) In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of
the value at which they are stated in the Balance Sheet, if realized in the ordinary course of
business.
3) The Company operates in one segment only.
4) The Company manages its capital to ensure that it will be able to continue as a going concern.
The structure is managed to provide ongoing returns to shareholders and service debt obligations,
whilst maintaining maximum operational flexibility.
5) The carrying amounts of trade payables, other financial liabilities, cash and cash equivalents,
other bank balances, trade receivables and other financial assets are considered to be the same as
their fair values due to their short-term nature.
6) The Company opines that no provision for expected credit loss is required.
7) There is no significant market risk or liquidity risk to which the Company is exposed.
8) Payment to Statutory Auditors (Rs In Lakhs)-
9) No amount remained due to Micro and Small Enterprises as defined in the “The Micro, Small
and Medium Enterprise Development Act, 2006” as identified on the basis of information
collected by the management.
10) The Company has re grouped and re-classified the previous year’s figures in accordance with the
requirements applicable in the current year. In view of this, certain figures of the current year are
not strictly comparable with those of the previous year.
12) Notes 1 to 38 form integral part of standalone financial statements.
ADDITIONAL DISCLOSURES:
(i) Previous year figures have been regrouped and reclassified wherever necessary.
(ii) Expenditure and earning in foreign currency: Nil
(iii) Undisclosed Income:
Company does not have any transactions 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, 1961 (such as, search or survey or any other relevant provisions of the Income Tax
Act, 1961). Also, there are nil previously unrecorded income and related assets.
(iv) Details of Crypto Currency or Virtual Currency:
Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.
(v) Figures have been rounded off to the nearest Rupee.
For, AKGVG & Associates For And On Behalf Of The Board
Chartered Accountants
FRN No:- 018598N
Priyank Shah Akshay S. Mehta Meet P. Mehta
(Managing Director) (Whole Time Director)
(Partner) DIN: 02986761 DIN: 07542183
Mem. No.: 118627
UDIN: 25118627BMKTDJ2486
Place: Ahmedabad Sanket R. Shah Ayushi Sahu
Date: 28.05.2025 (CFO) (C.S )
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