2.10 Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. The Company also discloses present obligations
for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
2.11 Foreign currency translation
There is no foreign exchange transaction during the year.
2.12 Fair value measurement
The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.
Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place in the
accessible principal market or the most advantageous accessible market as applicable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input
that is significant to the fair value measurement as a whole. For a detailed information on the fair value
hierarchy, refer note no. 22 and 48.
For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy.
2.13 Unless specifically stated to be otherwise, these policies are consistently followed.
All
financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is insignificant to the fair value measurements as a whole.
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement are
observable, either directly or indirectly.
Level 3 : valuation techniques for which the lowest level input which has a significant effect on fair value measurement is not
based on observable market data.
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities, other than those
whose fair values are close approximations of their carrying values.
For cash and cash equivalents, trade receivables, other receivables, short term borrowing, trade payables and other current
financial liabilities the management assessed that their fair value is approximate their carrying amounts largely due to the
short-term maturities of these instruments.
The fair values of the Company’s long-term interest free security deposits are determined by applying discounted cash flows
(‘DCF’) method, using discount rate that reflects the market borrowing rate as at the end of the reporting period. They are
classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risk.
28. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise) collectively
have a value on realisation in the ordinary course of business at least equal to the amount at which they are
stated.
29. Balance confirmation certificates from parties, as appearing in the Balance Sheet under the heads ‘Current
Liabilities’ on the liabilities side and ‘Loans & Advances’ on the assets side of the Balance Sheet are subject
to confirmations of balances to the extent received have been reconciled/under reconciliation.
30. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company during the year
under reference.
31. The company is engaged in the business of non-banking financial activity. Since all the activities relate to main
activity, in the opinion of the management, there is only one business segment in terms of AS-108 on segment
issued by ICAI.
32. Related Party Disclosures:
In accordance with the AS-24 on Related Party Disclosure, where control exists and where key management
personnel are able to exercise significant influence and, where transactions have taken place during the year,
along with description of relationship as identified, are given below:-
In terms of our report of even date annexed
For STRG & ASSOCIATES For and on behalf of the Board
CHARTERED ACCOUNTANTS
FRN : 014826N
sd/- sd/- sd/-
Place : Delhi Rakesh Gupta Ashwani Kumar Gupta Ashish Bhala
Date: 24/05/2024 (Partner) (MG. Director) (Director)
UDIN : 24094040BKAOII1268 M.No. : 094040 DIN : 00348616 DIN : 00009996
sd/- sd/-
Prakash Chand Sharma Ruchi
(CFO) (Company Secretary)
PAN-AXHPS1665D PAN-DICPR4232N
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