2.13 Provisions and contingent liabilities
Provisions are recognized only when there is a present obligation, as a result of past events and
when a reliable estimate of the amount of obligation can be made at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates. Provisions are discounted to their present values, where the time value of money is
material.
Contingent liability is disclosed for:
• Possible obligations which will be confirmed only by future events not wholly within the
control of the Company or
• Present obligations arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.
Contingent assets are neither recognized nor disclosed except when realisation of income is
virtually certain, related asset is disclosed.
The disclosure of contingent liability is made when, as a result of obligating events, there is a
possible obligation or a present obligation that may, but probably will not, require an outflow of
resources.
2.14 Impairment
Impairment of non-financial assets:
At each reporting date, the Company assesses whether there is any indication based on
internal/external factors, that an asset may be impaired. If any such indication exists, the
recoverable amount of the asset or the cash generating unit is estimated. If such recoverable
amount of the asset or cash generating unit to which the asset belongs is less than its carrying
amount. The carrying amount is reduced to its recoverable amount and the reduction is treated
as an impairment loss and is recognized in the Statement of Profit and Loss. If, at the reporting
date, there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is re-assessed and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly reversed in the Statement of Profit and
Loss.
Impairment of financial assets:
In accordance with IND AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets. ECL is the weighted-
average of difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive,
discounted at the original effective interest rate, with the respective risks of default occurring
as the weights. When estimating the cash flows, the Company is required to consider:
All contractual terms of the financial assets (including prepayment and extension) over the
expected life of the assets, Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
Trade receivables:
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are the expected credit losses that result from all
possible default events over the expected life of a financial instrument.
Other financial assets:
In respect of its other financial assets, the Company assesses if the credit risk on those financial
assets has increased significantly since initial recognition. If the credit risk has not increased
significantly since initial recognition, the Company measures the loss allowance at an amount
equal to 12-months expected credit losses, else at an amount equal to the lifetime expected
credit losses.
When making this assessment, the Company uses the change in the risk of a default occurring
over the expected life of the financial asset. To make that assessment, the Company compares
the risk of a default occurring on the financial asset as at the balance sheet date with the risk of
a default occurring on the financial asset as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort, that is
indicative of significant increases in credit risk since initial recognition. The Company assumes
that the credit risk on a financial asset has not increased significantly since initial recognition if
the financial asset is determined to have low credit risk at the balance sheet date.
2.15 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash in hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value. Bank
borrowings are used for business purposes, and hence bank overdrafts are not considered to be a
part of cash and cash equivalents in Cash flow statement.
2.16 Cash flow statement
Cash flows from operating activities are reported using the indirect method, whereby net
profit/(loss) before tax is adjusted for the effects of transactions of a 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.
2.17 Investments
Investments intended to be held for a period exceeding 12 months are considered as long-term
investments and all other investments are classified as current investments. Investments are
financial instruments and are considered as such as per the requirement of “Ind-AS 109
Financial instruments”. Investments held by the Company, whether short-term or long-term, are
valued at fair value as at the reporting date.
For purposes for income tax computation the Company values investments at lower of cost and
market value. Cost is determined on FIFO basis and consequent gain upon disposal is offered for
tax under the head capital gains i.e. long-term or short-term gain as the case may be.
2.18 Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed
at the end of the reporting period, the impact of such events is adjusted within the financial
statements. Otherwise, events after the balance sheet date of material size or nature are only
disclosed.
For ATK & Associates
Chartered Accountants For and on behalf of the Board of Directors of
Firm Registration No. 018918C DB (International) Stock Brokers Limited
Sd/- Sd/- Sd/-
CA Ankur Tayal Shiv Narayan Daga Sachin Kumar Rathi
Partner Managing Director Director
Sd/- Sd/-
Place: Noida S K Rawal Prachi Sharma
Date: April 29, 2025 Chief Financial Officer Company Secretary
Udin: 25404791BMIBCH4612
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