2.12Provisions and Contingencies
a Provision
A provision is recognised when the Company has a present obligation as a result of past events
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 discounted to their present value and
are determined based on the best 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 best
estimates.
b Contingent liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from the past events,
the existence of which will be confirmed only on 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 portable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made..
2.13Borrowing Cost
Borrowing cost incurred in relation to the acquisition, construction of assets are capitalized as the part
of cost of such assets up to date which such assets are ready for intended use. Other borrowing costs
are charged as an expense to the Profit and loss.
2.14Cash and Cash Equivalents
In the Cash flow statement, cash and cash equivalents include cash on hand, demand deposits with
bank, other short term highly liquid investments with original maturity of three months or less.
2.15Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by weighted average number of equity shares outstanding during the period. The
Weighted average number of equity shares outstanding during the period and for all periods presented
is adjusted for the events, such as bonus shares, other than conversion of potential equity share that
have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity share holders and the weighted average number of shares outstanding during the period is
adjusted for the effects of all dilutive potential equity shares.
2.16Financial Instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
2.16 A Financial Assets
i) Classification
The Company classifies its financial assets in the following measurement categories:
a) at fair value either through other comprehensive income (FVOCI) or through profit and
loss (FVTPL); and
b) at amortised cost.
The classification depends on the entity's business model for managing the financial assets
and the contractual terms of the cash flows.
Gains and losses will either be recorded in the statement of profit and loss or other
comprehensive income for assets measured at fair value.
For investments in equity instruments, this will depend on whether the Company has made an
irrevocable election at the time of initial recognition to account for the equity investment at fair
value or through other comprehensive income or profit and loss.
ii) Measurement
At initial recognition, in case of a financial asset not at fair value through the statement of profit
and loss account, the Company measures a financial asset at its fair value plus transaction
costs that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through the statement of profit and loss are expensed in
profit or loss.
a Equity instruments
The Company measures all equity investments at fair value. The Company's
management has opted to present fair value gains and losses on equity investments
through Other Comprehensive Income. Dividends from such investments are recognised
in the statement of profit and loss as other income when the Company's right to receive
payments is established. Changes in the fair value of financial assets at fair value through
Other Comprehensive Income are recognised in other comprehensive income section in
the statement of profit and loss.
iii) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with
its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology
applied depends on whether there has been a significant increase in credit risk.
For trade receivables only, the company applies the simplified approach permitted by Ind AS
109 Financial Instruments, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.
iv) Derecognition of financial assets
A financial asset is derecognised only when
a) The Company has transferred the rights to receive cash flows from the financial asset.
Or
b) Retains the contractual rights to receive the cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows to one or more recipients.
Where the company has transferred an asset, it evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the
financial asset is derecognised. Where the entity has not transferred substantially all risks and
rewards of ownership of the financial asset, the financial asset is not derecognized.
Where the company has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if the
Company has not retained control of the financial asset. Where the Company retains control
of the financial asset, the asset is continued to be recognised to the extent of continuing
involvement in the financial asset.
v) Income Recognition
a Interest income
Interest income from debt instruments is recognised using the effective interest rate
method. The effective interest rate is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the gross carrying amount of a
financial asset. When calculating the effective interest rate, the company estimates the
expected cash flows by considering all the contractual terms of the financial instrument
(for example, prepayment, extension, call and similar options) but does not consider the
expected credit losses.
b Dividend income
Dividends are recognised in the statement of profit and loss only when the right to receive
payment is established, it is probable that the economic benefits associated with the
dividend will flow to the Company, and the amount of the dividend can be measured
reliably.
vi) Cash and cash equivalents
Cash and cash equivalents include cash on 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.
2.16 B Financial Liabilities
i) Measurement
Financial liabilities are initially recognised at fair value, reduced by transaction costs (in
case of financial liabilities not recorded at fair value through profit and loss), that are directly
attributable to the issue of financial liability. All financial liabilities are subsequently measured
at amortised cost using effective interest method. Under the effective interest method, future
cash outflow are exactly discounted to the initial recognition value using the effective interest
rate, over the expected life of the financial liability, or, where appropriate, a shorter period. At
the time of initial recognition, there is no financial liability irrevocably designated as measured
at fair value through profit and loss
ii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognised in the statement of profit and loss
iii) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to
the end of financial year which are unpaid. The amounts are unsecured and are usually paid
as per payment terms
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The
legally enforceable right must not be contingent on future events and must be enforceable
in the normal course of business and in the event of default, insolvency or bankruptcy of the
Company or the counterparty.
2.17 A Critical estimates and judgments
In the application of the company's accounting policies, which are described in note 2(1) (d),
the management is required to make judgment, estimates, and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other process. The estimates
and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future period if the revision affects both
current and future period.
The following are the critical estimates and judgments that have the significant effect on the
amounts recognised in the financial statements.
i) Estimation of current tax expense and deferred tax
The calculation of the company's tax charge necessarily involves a degree of estimation
and judgment in respect of certain items whose tax treatment cannot be finally determined
until resolution has been reached with the relevant tax authority or, as appropriate, through
a formal legal process. Significant judgments are involved in determining the provision for
income taxes, including amount expected to be paid/recovered for uncertain tax positions.
Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the current and deferred income tax in the period in
which such determination is made.
Recognition of deferred tax assets / liabilities
The recognition of deferred tax assets is based upon whether it is probable that sufficient and
suitable taxable profits will be available in the future against which the reversal of temporary
differences can be deducted. To determine the future taxable profits, reference is made to the
approved budgets of the company. Where the temporary differences are related to losses,
local tax law is considered to determine the availability of the losses to offset against the future
taxable profits as well as whether there is convincing evidence that sufficient taxable profit
will be available against which the unused tax losses or unused tax credits can be utilised by
the company. Significant items on which the Company has exercised accounting judgment
include recognition of deferred tax assets in respect of losses. The amounts recognised in the
financial statements in respect of each matter are derived from the Company's best estimation
and judgment as described above.
ii) Estimation of Provisions and Contingent Liabilities
The company exercises judgment in measuring and recognising provisions and the exposures
to contingent liabilities, which is related to pending litigation or other outstanding claims.
Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a
liability will arise, and to quantify the possible range of the financial settlement.
Because of the inherent uncertainty in this evaluation process, actual liability may be different
from the originally estimated as provision. Although there can be no assurance of the final
outcome of the legal proceedings in which the company is involved, it is not expected that
such contingencies will have a material effect on its financial position or profitability.
iii) Estimation of useful life of Property, Plant and Equipment, Intangible assets, Investment
properties
Property, Plant and Equipment, Intangible assets, Investment properties represent a significant
proportion of the asset base of the company. The charge in respect of periodic depreciation
is derived after determining an estimate of an asset's expected useful life and the expected
residual value at the end of its life. The useful lives and residual values of company's assets
are determined by management at the time the asset is acquired and reviewed periodically,
including at each financial year end. The useful lives are based on historical experience with
similar assets as well as anticipation of future events, which may impact their life, such as
changes in technology.
iv) Estimated fair value of Financial Instruments
The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques. The Management uses its judgment to select a variety of methods
and make assumptions that are mainly based on market conditions existing at the end of each
reporting period.
v) Impairment of Trade Receivable
The impairment provisions for trade receivable are based on assumptions about risk of
default and expected loss rates. The company uses judgment in making these assumptions
and selecting the inputs to the impairment calculation, based on the company's past history,
existing market conditions as well as forward looking estimates at the end of each reporting
period.
12.3 The Company has only one class of Shares referred to as Equity Shares having a par face value of '10/-
each. Each holder of Equity Shares is entitled to one vote per share.
12.4 In case any dividend is declared and paid it is done in Indian rupees. The dividend proposed, if any, by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
12.5 The Company has not declared or paid any dividend during the year or in respect of the year ended on
31 March 2025
12.6 In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any
of the remaining assets of the Company, after distribution of all preferential amounts. However, no such
preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares
held by the shareholders.
12.7 The Company is a Holding Company of three Subsidiaries namely i. Starlight Box Theatres Private Limited
and ii. DARS Transtrade Private Limited. iii. New India RE and Infra LLP. It is not a Subsidiary Company of
any other Company.
stock exchanges is valued using the closing price as at the reporting period
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximize the use of observable market data and rely as little as possible on
entity specific estimates. The Company has mutual funds for which all significant inputs required to fair
value an instrument falls under level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities and unlisted preference shares are included
in level 3.
**There are no transfers between levels 1, 2 and 3 during the year.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include: Investments in quoted equity
instruments are valued using the closing price at BSE Ltd. at the reporting period.
(iii) Fair value of Financial assets and liabilities measured at amortised cost
a) The carrying amounts of Invetsments, trade payables, cash and cash equivalents, bank balances other
than cash and cash equivalents, borrowings and other financial liabilities are considered to be the same as
their fair values, due to their short term nature.
NOTE 28: Financial risk management
The Company's activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of
risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in
the financial statements.
The company has a robust risk management framework comprising risk governance structure and defends risk
management processes. The risk governance structure of the company is a formal organization structure with
defined roles and responsibilities for risk management.
The Company risk management is carried under the guidance from the board of directors. Company's identifies,
evaluates and hedges financial risks in close coordination with the company's operating units. The board
provides written principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-derivative
financial instruments, and investment of excess liquidity. There is no change in objectives and process for
managing the risk. Methods used to measure the risk as compared to previous year and the expenses are
limited to few areas.
1) Credit Risk:
Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer
contract, leading to financial loss. The Credit risk mainly arises due to receivables from customers, cash
and cash equivalents, loans and deposits with banks, financial institutions & others.
a) Cash and cash equivalents.
b) The cash and cash equivalents are held with public sector bank.
Other Bank Balances:
c) Other bank balances are held with public sector bank.
d) Other financial assets:
Other financial assets include security deposits and refund receivable from Tax authorities neither
pastdue nor impaired.
2) Liquidity Risk :
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through an adequate amount of committed credit facilities to meet obligations
when due and to close out market positions, due to the dynamic nature of the underlying businesses.
Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn
borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.
(i) Financing arrangements
The Company had access to the borrowing facilities against on fixed deposits at the end of the reporting
period.
3) Market Risk :
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risks namely interest rate risk, currency
risk and other price risk, such as commodity risk. Currently The Company is not exposed to interest rate risk
and currency risk whereas the exposure to other price risk is given below:
A) Market Risk- Price risk.
Equity price Risk is related to change in market reference price of investments in equity securities held
by the Company.
The fair value of quoted investments held by the Company exposes the Company to equity price risks
in general, these investments are not held for trading purpose.
The fair value of the quoted investments in the equity classified as fair value through other comprehensive
income as at March 31, 2025 was ' 68,88,697.55/- (March 31, 2024 ' NIL)
A 10% change in the equity prices of such securities held as at March 31, 2025 and March 31, 2024
would result in an impact of ' 6,88,869.75/- and NIL respectively on equity before considering tax
impact
NOTE 29: Capital management
(a) Risk Management
The company's objectives when managing capital are to safeguard the company's ability to continue
as a going concern in order to provide returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the
capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.
The Company monitors capital and during the period covered in this financial statements there are no debts
(net) and therefore the gearing ratio is not applicable.
(b) No Dividend paid during the period.
NOTE 30 :
The disclosure requirements about any transactions not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act 1961 ( such
as search or surveyor any other relevant provision of Income Tax Act 1961 ) is not applicable to the company.
NOTE 31 :
The company has not traded or invested in crypto currency or virtual currency during the financial year.
NOTE 32 :
There are no proceedings which are initiated or pending against the Company for holding any Benami property
under the Benami transactions ( Prohibition ) Act 1988 & rules made thereunder.
NOTE 33 :
The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956.
NOTE 34 :
The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other source or kind of funds) to any other person or entities including foreign entities (intermediaries) with an
understanding that the intermediary shall directly or indirectly lend, invest in other persons or entities on behalf
of the company or provide any guarantee security to any person or entities on behalf of company.
NOTE 35 :
The Company has not received any fund from any person or entities including foreign entities(funding parties)
with an understanding that the company shall directly or indirectly lend or invest in other persons or entities by
or on behalf of the funding party or provide any guarantee security to or on behalf of the funding party.
NOTE 36 :
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
NOTE 37 :
The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters
issued by the Reserve Bank of India.
NOTE: 39 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with
the current year's classification /disclosure.
In witness & confirmation of facts As per our Report attached
For & on behalf of Board of Directors For JMT & Associates
For Fundviser Capital (India) Limited Chartered Accountants
FRN : 104167W
UDIN :
Prem Krishan Jain Mrs.Kriti Jain Triloki Nath Bansal Amar Bafna
Chairman & Whole Time Director WholeTime Director Director Partner
DIN:09304822 DIN:02085580 DIN: 02223335 Membership No. 048639
Mohit Jain Raujesh Khandelwal
CFO Company Secretary
& Compliance Officer
Place : Mumbai Membership No.
Date : 27/05/2025 ACS: A49419
|