3.9. PROVISIONS:
a) The Company does not make provision for doubtful debts and follows the practice of writing off bad
debts as and when determined.
b) A provision is recognized when an enterprise has a present obligation as a result of past event and
it is probable that an outflow of resources will be required to settle the obligation, in respect of which
a reliable estimate can be made. Provisions are not disclosed to its present value and are
determined based on best management estimate required to settle the obligation at the Balance
Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.
3.10. TAXATION:
Tax expense comprises both current and deferred taxes. Current Income Tax is measured as the
amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act,
1961. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
Deferred Income Tax reflects the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences of earlier years. Deferred Tax
is measured using the tax rates and the tax laws enacted or substantively enacted at the Balance
Sheet date. Deferred income tax relating to items recognized directly in equity is recognized in equity
and not in the Statement of Profit and Loss.
Deferred tax assets have been recognized only to the extent there is reasonable certainty that the
assets can be realized in future. However, where there is unabsorbed depreciation or carry forward
loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of
realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written
down or written up to reflect the amount that is reasonably/ virtually certain, as the case may be, to
be realized.
3.11. EARNIG PER SHARE (EPS):
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to
equity shareholder (after deducting attributable taxes) by the weighted average number of equity
shares outstanding during the year.
For the purpose of calculating Diluted Earnings Per Share, the net profit or loss for the year
attributable to equity shareholder and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential Equity Shares.
3.12. FINANCIAL INSTRUMENTS:
Financial assets and liabilities are recognized when the company becomes a party to the
contractual provisions of the instrument. Financial assets and liabilities are directly attributable to the
acquisition or issue of financial assets and financial liabilities (Other than financial assets and financial
liabilities at fair value through profit & loss) are added to or deducted from the fair value measured
on initial recognition of the financial asset or financial liability.
Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into
known amounts of cash that are subject to an insignificant risk of change in value and having original
maturities of three months or less from the date of purchase, to be cash equivalents. cash and cash
equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
Earmarked bank balances for unpaid dividends and bank balances towards margin money or
security against borrowings and guarantees, are shown separately under the head.
Financial asset at amortized cost:
Financial assets are subsequently measured at amortized cost if these financial assets are held within
a business whose objective is to hold these assets to collect contractual cash flows and the
contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income:
Financial assets are measured at fair value through other comprehensive income if these financial
assets are held within a business whose objective is achieved by both collecting contractual cash
flows on specified dates that are solely payments of principal and interest on the principal amount
outstanding and selling financial assets.
inancial assets at fair value through profit or loss:
Financial assets are measured at fair value through profit or loss unless they are measured at
amortized cost or at fair value through other comprehensive income on initial recognition. The
transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value
through profit or loss are immediately recognized in statement of profit or loss.
Financial Liabilities:
Financial liabilities are measured at amortized cost using effective interest method.
Equity Instruments:
An equity instrument is a contract that evidences residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments recognized by the company are recognized at the
proceeds received net off direct issue cost.
3.13. SEGMENT REPORTING:
The company identifies primary segment based on the dominate source, nature of risk and return,
internal organization and management structure and the internal performance reporting system.
The accounting policies adopted for the segment reporting are in line with accounting policies of
the company. The analysis of geographical segment is based on the areas in which major operating
division of the company operates
3.14. BORROWING COST:
Borrowing cost that is attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for intended use or sale are capitalized
as part of cost of the respective asset. All other borrowing cost are recognized as expenses in the
period in which they are incurred and charged to statement of Profit and Loss over the tenure of the
borrowing.
3.15. EXCEPTIONAL ITEMS:
In August 2023, the management of the company made a strategic decision to sell the leasehold
land and building premises located E-14 & E-15, Sector-8, Noida, to strengthen companies' financial
position. Considering the favorable Real Estate market conditions in Noida, Management decided to
monetize aforesaid building premises, and to utilize the proceeds for future expansion plan. The
decision taken by the management was in the overall best interest of all the stakeholders. Sale of the
said Building Premises did not have any impact on the Company's existing business, as the company
has also entered into agreement for availing the said building premises on lease. From this sale
transaction Company unlocked its Net worth and made capital gain of Rs. 648.99 Lacs.
3.16. IMPAIRMENT:
At each balance sheet date, the management reviews the carrying amounts of its assets to
determine whether there is any indication that those assets were impaired. If any such indication
exists, the impairment loss is provided.
3.17. CONTINGENT LIABILITIES:
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond
the control of the company or a present obligation that is not recognized because it is not probable
that an outflow of resources will be required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The company does not recognize a contingent liability but discloses its existence
in the financial statements.
3.18. CASH AND CASH EQUIVALENT:
Cash and cash equivalent for the purpose of cash flow statement comprises cash at bank and in
hand and shore term investments with an original maturity of three months or less. Earmarked bank
balances for unpaid dividends and bank balances towards margin money or security against
borrowings and guarantees, are shown separately under the head.
NOTE 48: Figures of the previous year have been regrouped/ reclassified, wherever necessary.
NOTE 49: The figures have been rounded off to the nearest Lakhs.
For G D Pandit & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 00167N
S. A. Abbas Hina Abbas
Managing Director Whole Time Director
DIN:00770259 DIN:01980925
Vinod Goyal
Partner Dilip Das Nitish Nautiyal
Membership No. 083701 Chief Financial Officer Company Secretary
Place: Noida, U.P.
Date: 27.05.2024
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