18. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent
liabilities is disclosed in case of a present obligation from past events
(a) when it is not probable that an outflow of resources will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of resources is remote.
Provisions are made when
(a) the Company has a present legal or constructive obligation as a result of past events;
(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and
(c) a reliable estimate is made of the amount of the obligation.
Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts where the inflow of
economic benefits is probable.
19. Current and Non- Current Classification:
The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification
of its various assets and liabilities into “Current” and “Non-Current”.
The Company presents assets and liabilities in the balance sheet based on current and non-current
classification.
An asset is current when it is
(a) expected to be realised or intended to be sold or consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realised within twelve months after the reporting period
(d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when
(a) it is expected to be settled in normal operating cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months after the reporting period
(d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period. All other liabilities are classified as non-current.
20. Earning per share:
Earnings per share are calculated by dividing the net profit or loss before OCI for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period. For
the purpose of calculating diluted earnings per share, the net profit or loss before OCI for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of
whether a price is charged. Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the
entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in
respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Notes:
a. Related Party relationships are as identified by the company on the basis of information available with them and relied upon by the
auditors.
b. Reimbursement is not disclosed as related party transaction.
c. Company does not have any subsidiary.
The Company has not provided and paid interest on delayed payment to MSME as per the provisions of the MSME Act, 2006. It was
informed by the Management that the vendors have agreed to accept delayed payment without any interest and have not raised any
objection. The impact of the same on the Profit and Loss for the year could not ascertain as the company has not calculated the amount of
interest payable.
The above Information has been determined to the extent such parties have been identified on the basis of information available with the
company.
Note 32: Fair Value Measurement
Capital management
The company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity
balance
The Company is not subject to any externally imposed capital requirements.
The Company's audit committee reviews the capital structure ofthe companyon a quarterlybasis. As part of this review, the committee considers the cost of capital and the risks associated with
each class of capital
Notes:-
1. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company
does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
2. Finance income and finance cost by instrument category wise classification :-
i) Interest income of Rs.46.02 Lakhs (P.Y. Rs.4.17 Lakhs) on financial instrument at amortised cost.
ii) Interest expense of Rs. 4.09 Lakhs (P.Y.Rs. 168.82 Lakhs) on borrowing at amortised cost.
Note 33: Financial risk management objectives & Policies
The Company’s financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets
include trade and other receivables, cash and cash equivalents, and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a board of Directors that advises on risks and the
appropriate risk governance framework for the Company. The audit committee provides assurance to the Company’s management that the Company’s risk activities are governed by appropriate
policies and procedures and that risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.
(i) Market Risk
Market risk is the risk that the fair value offuture cash flows of a financial instrument will fluctuate because ofchanges in market prices. Marketrisk comprises risk ofinterest rate, currencyrisk
and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments.
a. Foreign Currency Risk
As there is no foreign currency exposure as on the reporting date, no amount is payable on account of foreign currency transactions
b. Interest Rate Risk
As there is no Foreign currency exposure, so no interest amount payable.
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its
operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit worthiness based on internal
assessment of the parties, financial condition, historical experience, and other factors. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups
and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade
receivables disclosed in Note 8 as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its
customers are located in several jurisdictions and industries.
Refer note no 8 for ageing of trade receivable as of 31st March, 2026 and 31st March, 2025.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as
derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high ratings. The Company’s treasury department authorizes,
manages, and oversees new transactions with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval
of the board of directors.
Credit risk exposure
The carrying amount of financial assets represents the Company’s maximum exposure to credit risk. The maximum exposure to credit risk as of 31st March, 2026 and 31st March, 2025 are as
follows:
(Amount in lakhs)
(iii) Liquidity Risk
The Company’s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating
cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Companymonitors rolling forecasts ofits
liquidity requirements to ensure it has sufficient cash to meet operational needs. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required; such credit
facilities are reviewed at regular intervals. Thus, no liquidity risk is perceived at present.
Note 34. Additional Disclosures relating to the requirement of revised schedule III
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
thereunder.
(ii) Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iii) Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2026 and 31st March, 2025 which needs to be recorded in the books of account.
(v) Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(vii) The charges for the all the borrowings from the banks and financial institutions are properly registered with the Registrar of the companies and there is no charges which is pending for
satisfaction which are yet to be registered with the registrar of the companies beyond the statutory period.
(viii) Relationship with struck off companies
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year.
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a)
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, security
or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Companyshall: (a) directlyor indirectlylend or invest inotherpersons or entities identified inanymannerwhatsoeverbyor on behalfofthe Funding Party(Ultimate Beneficiaries) or (b) provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 35. Ratio Analysis & Its Elements
Refer Annexure
Note 36.
Previous year’s figures have been rearranged and/or regrouped, wherever necessary.
Note 37.
The financial statements have been approved by the Audit Committee at its meeting held on 21st May, 2026 and by the Board of Directors on the same date.
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