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.
Financial 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. 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.
3.16. 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.
3.17. 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 47: Leases
The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements,
if the contract conveys the right to control the use of an asset. The right-of-use assets is measured at cost
less any accumulated depreciation. The right-of-use assets is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of right-of-use asset. The Company
measures the lease liability at the present value of the lease payments. The lease payments are discounted
using the borrowing interest rate. The Company has elected not to apply IND AS 116 to the short-term/
unregistered/ Residential leases of rented premises and for leases for which the underlying value is off low
value. Lease payments on short-term leases and leases of low- value assets are recognised as expense on
a straight-line basis over the lease term.
NOTE 49: Figures of the previous year have been regrouped/ reclassified, wherever necessary. The figures
have been rounded off to the nearest Lakhs.
For For G S P T & Associates LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 029722N
S. A. Abbas Hina Abbas
Managing Director Whole Time Director
DIN:00770259 DIN:01980925
CA Manish Aggarwal
Partner Dilip Das
Membership No. 542408 Chief Financial Officer &
Company Secretary
Place: Noida, U.P.
Date: 27.05.2025
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