j) Provisions and Contingent Liabilities:
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past events, it
is probable that an outflow of resources will be required to settle the obligations. These estimates are reviewed at the
end of each reporting period and are adjusted to reflect the current best estimates.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
k) Employee Benefits:
The accounting of employee benefits in the nature of defined benefit requires the Company to use assumptions. Liabilities
for wages and salaries, including non-monetary benefits are expected to be settled within 12 (Twelve) months after the
end of the period in which the employees render the related services.
l) Lease:
Identification of a lease requires significant judgement. The Company evaluates if an arrangement qualifies to be a lease
as per the requirements of Ind AS 116.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by
an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an
option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances that create an economic incentive for the Company.
m) Inventories:
The Company's business/operations do not carry any inventory, hence reporting is not applicable for the year 202 4-25.
n) Trade Receivable:
Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by
the management periodically and on the basis of such verification management determines whether the said outstanding
balance are good, bad or doubtful and accordingly same are written off or provided for.
Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non-current
assets.
o) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature any deferrals or accruals of past or future operating cash receipts or payments and item of income
or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.
For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and
Balances with Banks.
p) Cash and cash equivalents:
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value are unrestricted
for withdrawal and usage.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company's cash
management.
q) Investments:
The investments are valued at fair market value and are therefore reported as per relevant Ind AS-113 and
Comprehensive Income consequent to the effect has been reported in Standalone Financial Statements.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value.
Share Capital:
Ordinary shares are classified as equity. Every holder of the equity shares, as reflected in the records of the Company as
at the date of the shareholder meeting shall have one vote in respect of each share held for all matters submitted to vote
in the shareholder meeting.
The Company had obtained the approval of shareholders by passing of Special Resolution through Postal Ballot on 13 th
March, 2024 to issue upto 36,00,00,000 (Thirty-Six Crores) Convertible Equity Warrants ("Warrants") with each warrant
convertible into 1 (one) fully paid-up equity share of the company of Rs. 1/- (Rupee One Only) each. The allotment of
warrants has been withdrawn.
r) Earnings per Share:
Basic earnings per share: is calculated by dividing the net profit for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the financial year. Earnings considered in ascertaining the
company's earnings per share is the net profit for the period after deducting any attributable tax thereto for the period.
The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted
for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of
equity shares outstanding, without a corresponding change in resources.
Diluted Earnings per share: For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted
for the effects of all dilutive potential equity shares.
s) Borrowings:
Borrowings are initially recognised at fair value, net of transaction costs incurred. Any difference between the proceeds
(net of transaction costs) and the redemption amount is recognised in statement of profit or loss over the period of the
borrowings.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period.
t) Borrowings Cost:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur.
The Company ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying
asset for its intended use or sale are complete.
u) Trade payables:
These amounts represent liabilities for goods that have been acquired in the ordinary course of business from suppliers.
Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting
period.
v) Employee Benefits:
The accounting of Employee benefits, having nature of defined benefit is based on assumptions. Contribution to defined
benefits is recognised as expense when employees have rendered services entitling them to avail such benefits.
w) Financial Instruments and Risk Review:
The Company's principal Financial Assets include investments, trade receivables, cash and cash equivalents, other bank
balances and loan. The Company's financial liabilities comprise of borrowings and trade payables.
x) Foreign Currency Transactions
During the period under review, there were no Foreign Currency Transactions entered by the Company, Therefore
reporting is not applicable.
y) Retained earnings
Retained earnings comprises of the Company's undistributed earnings after taxes.
d) Buyback of shares and shares allotted by way of bonus
shares:
The Company has not allotted any fully paid-up equity shares by way of bonus shares nor has it bought back any
class of equity shares during the period of five years immediately preceding the balance sheet date nor has it
issued shares for consideration other than cash.
e) Terms/Rights attached to equity shares
i) The Company has only one class of share capital, i.e. equity shares having face value of Re.1/- per share. Each
holder of equity share is entitled to one vote per share, The equity shareholders are entitled to receive dividends
as and when declared.
ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the
no. of equity shares held by the shareholder.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
(*) The fair value of these investment in equity shares are calculated based on discounted cash flow approach
for un-quoted market instruments which are classified as level III fair value hierarchy.
(A) The carrying value of these accounts are considered to be the same as their fair value, due to their short
term nature. Accordingly, these are classified as level 3 of fair value hierarchy.
33 Financial risk management
The Company has exposure to following risks
arising from financial instruments¬
- credit risk
- market risk
- liquidity risk
(a) Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's
risk management framework. The Company's risk management policies are established to idenitfy and analyse the
risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regulalrly to reflect changes in market conditions and the
Company's activities.
(b) Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financial instruments or customer
contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) from its financing activities including deposits with banks and investment in quoted and un¬
quoted equity instruments.
i) Trade and other receivables:
Credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for major customers. In addition,
a large number of minor receivables are grouped into homogeneous groups and assessed for impairment
collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial
assets. The Company does not hold collateral as security.
Expected credit loss (ECL) assessment for corporate customers as at 31 March 2024 and 31 March 2023
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be
predictive of the risk of loss (including but not limited to past payment history, security by way of deposits, external
ratings, audited financial statements, management accounts and cash flow projections and available press
information about customers) and applying experien ced credit judgement.
ii) Other financial assets and
deposits with banks:
Credit risk on cash and cash equivalent is limited as (including bank balances, fixed deposits and margin money with
banks) the Company generally transacts with banks with high credit ratings assigned by international and domestic
credit rating agencies.
(c) Market Risk
Equity price risk
The Company is exposed to equity price risk from investments in equity securities measured at fair value through
profit and loss. The Management monitors the proportion of equity securities in its investment portfolio based on
market indices and based on company performance for un-equity instruments. Material investments within the
portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors.
Further, major investments in un-quoted equity instruments are strategic in nature and hence invested for long¬
term purpose.
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to its
short-term borrowings in nature of working capital loans, which carry floating interest rates. Accordingly, the
Company's risk of changes in interest rates relates primarily to the Company's debt obligations with floating interest
rates.
(d) Liquidity Risk
Liquidity is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing the
liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company's reputation.
The Company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements.
Accordingly no liquidity risk is perceived.
Exposure to liquidity risk
The table below details the Company's remaining contractual maturity for its non-derivative financial liabilities. The
contractual cash flows reflect the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay.
34 Capital management
The Company's objective is to maintain a strong capital base to ensure sustained growth in business and to
maximise the shareholders value. The Capital Management focusses to maintain an optimal structure that
balances growth and maximizes shareholder value.
The Company's adjusted net debt to equity ratio is analysed as follows:
35 CSR Activity
As per the Companies Act, 2013, all companies having a net woth of Rs. 500 crore or more, or a turnover of Rs. 1000 crore or
more or a net profit of Rs. 5 crore or more during any financial year are required to constiture a CSR Committee of the Board
of Director comprising three director. All such companies are requaired to spend at least 2% of the average net profit of their
three immediately preceding financial years on CSR-related activities. Accordingly, the Company was not required to spend
amount towards CSR activities.
36 Balances in the accounts of debtors, creditors and contracts and contractors, certain Bank Accounts are taken subject to
confirmation and reconciliation and only upon such confirmation and reconciliation, the entries for discounts, claims and
writing off sundry balances etc. will be recorded in the books.
37 In the absence of detailed information from Small Scale and Ancillary Undertaking, included under the head Sundry Creditors
dues there from are not ascertained as on the date of Balance Sheet.
38 Other Information
i) In the opinion of the management, the current assets and loans & advances are approximately of the value stated, if
realized/ paid in the ordinary course of business. The provisions for all known liabilities is adequate and is not in excess of
amounts considered reasonably necessary.
ii) Balances grouped under non-current Liabilities, Current Assets, and Non-current assets in certain cases are subject to
confirmation and reconciliation from respective parties, impact of the same, if any, shall be accounted as when determined.
39 Other information required under part I and Part II of schedule III of Companies Act 2013, are either NIL or NOT Applicable
40 The previous year figures have been regrouped, rearranged wherever necessary.
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