28 Disclosure pursuant to Indian Accounting Standard 19 -
Employee Benefits -
The company has no defined benefit gratuity plan. Employees are not entitled to any gratuity at the time of their retirement / resignation as per the letter of Appointment issued to them.
29 Segment Reporting
Primary Segment
Based on the guiding principal given in the Indian Accounting Standard - 108 ’Segment Reporting” issued by the Central Government, the Company's primary segment are Textile, Automobile Parts & Financial Activities.
The above business segments have been identified considering
i) The nature of products
ii) The related risks and returns
iii) The internal financial reporting systems
Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocable Assets / Liabilities".
B. SECONDARY SEGMENT
The Company caters mainly to the needs of Indian market & hence there are no reportable geographical segments I secondary segments.
30 In the opinion of the Board of Directors current Assets, Loans & Advances are not below of the value stated, if realised in the ordinary course of business.
32. FINANCIAL INSTRUMENTS Ý FAIR VALUE AND RISK MANAGEMENT
a. Accounting classification and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values :
The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and borrowings are approximately at their carrying value largely due to the short-term nature of these instalments. The management considers that the carrying value of financial assets and financial liabilities recognised at nominal cost / amortised cost in the financial statements are approximate to their fair values.
Investments in mutual funds are measured using market prices at the reporting date.
Fair value hierarchy
The above tables provide the fair value measurement hierarchy of Company's asset and liabilities, grouped into Level 1 to Level 3 as described below :
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 : Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
b. Financial Risk Management Financial Risk Factors
The Company's principle financial liabilities complies of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company's principle financial assets include loans and advances, trade receivables and cash and bank balances that arise directly from its operation. The Company has exposure to the following risks arising from financial instruments and the Company's senior management oversees the management of these risks
i) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers. The carrying amounts of financial assets represent the maximum credit risk exposure.
Loans
The Company has developed guidelines for the management of credit risk from loan. Credit risks are managed by the Company through credit approvals, and continuously monitoring the credit worthiness of the people to which the Company grants credit terms in the normal course of business.
Exposures to loans outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses.
Trade Receivables
The Company has developed guidelines for the management of credit risk from trade receivables. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risks are managed by the Company through credit approvals, and continuously monitoring the credit worthiness of the customers to which the Company grants credit terms in the normal course of business.
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Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the marco economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of nil credit losses to continue. Fur ther. management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.
Other financial assets
Other financial assets comprises Fixed deposits, advance against property, interest accrued on fixed deposits. Generally, these fixed deposits are held with banks with which the Company has also availed borrowings. The credrt worthiness of such advances is evaluated by the management on an ongoing basis and is considered to be at low credit risk. In respect of the advance against the property given by the company, it is certain to either obtain possession of the property or to recover the amount along with compensation. The Company does not expect any losses from non-performance by these counter parties.
33 The company has examined carrying cost of its identified Cash Generating Units (CGU) by comparing present value of estimated future cash flows from such CGU in terms of Accounting Standard on Impairment of Assets according to which no provision for Impairment is required as assets are not impaired during the financial year ended 31st March 2025.
35 Advance against property
a) The Company has paid an adance Rs.6,101.90 in thousand to M/s Shivam Panvar Developers Pvt. Ltd. for purchase of property being a Flat No.404-B situated at C.A. to Siddharth Nagar Paschim Jagruti C.H.S.L 1, Washington Plaza. Off. S. V.Road, Goregaon (W), Mumbai - 400062 and advance Rs. 10,478.10 in thousand to M/s Shivam Parivar Developers Pvt Ltd for purchase of property being a Flat No.1301, situated at C.A. to Nirton Employees C.H.S.L, 2/12 Siddharth Nagar. Part No 5. Opp. Prabhodhan Kridabhavan, Goregoan (West), Mumbai - 400104 The transactions are supported by agreement for purchase of property duly registered in the name of the Company. The management is actively pursuing the matter and is confident of obtaining the possession of the property and accordingly, no provision is required in the books. The advance given is classified as a non-current asset and is not expected to be settled within 12 months.
b) The Company has paid an adance of Rs. 5 lakhs to Morya Ace for purchase of property situated at 2, Home Street, 16, Dattaray Road, Santacruz, Mumbai - 400054. As on the balance sheet date, the agreement has not registered and also possession not received by the Company. The Company is confident of obtaining title or recovery of the amount Accordingly, no provision has been made in the Books. The advance is classified as non-current assets and is not expected to be settled within 12 months.
38. Additional Regulatory Information
a. The title deed of immovable property held by the Company are in the name of the company.
b. The Company has not revalued its Property, Plant and Equipment and accordingly disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registred Valuers and Valuation) Rules. 2017
d. The Company has no Capital Work in Progress at the end of financial year
e. The company has no Intangible Assets under development at the end of financial year.
f. The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
39 Other Statutory Information
a. The company do not have any Benami property where any proceeding has been initiated or pending against the Company for holding any Benami property.
b. The Company do not have any transactions with companies which are struck off.
c. The Company do not have any pending charges or Satisfaction which is yet it be registered with Register of Companies beyond the statutory period.
d. The Company has not traded or invested in Crypto Currency or Virtual Currency during the f nancial year.
e. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) directly or indirectly lend or invest in other persons or entitites identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company
f. During the year Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) directly or indirectly lend or invest in other persons or entitites identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
g. The Company do not have any such transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as search, survey or any other relevant provisions of the Income Tax Act, 1961)
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42 Previous year figure have been regrouped / reclassified to confirm to current years classifications
43 The figures has been rounded off in thousand.
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