l. Provisions and contingencies
(i) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time
value of money is material, provisions are discounted using equivalent period government securities interest
rate. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best
estimate.
(ii) Contingencies
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 or a reliable estimate of the amount
cannot be made.
Contingent assets are not recognised in the books of the accounts but are disclosed in Board Report.
However, when the realisation of income is virtually certain, then the related asset is no longer a contingent
asset, but it is recognised as an asset and the corresponding income is booked in the Statement of Profit and
Loss.
m. Taxation
Income tax expense represents the sum of current and deferred tax (including MAT). Tax is recognized in the
Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or
other comprehensive income, in such cases the tax is also recognized directly in equity or in other
comprehensive income. Any subsequent change in direct tax on items initially recognized in equity or other
comprehensive income is also recognized in equity or other comprehensive income, such change could be for
change in tax rate.
(i) Current Tax
Current tax provision is computed for Income calculated after considering allowances and exemptions under
the provisions of the applicable Income Tax Laws. Current tax assets and current tax liabilities are off set,
and presented as net.
(ii) Deferred Tax
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance
sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using
the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and
deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses
and allowances to the extent that it is probable that future taxable profits will be available against which
those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax
assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities
are off set, and presented as net.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available against which the temporary
differences can be utilised.
n. Cash and cash equivalents
Cash and cash equivalents includes cash on hand and at bank, other short-term highly liquid investments
with original maturities of three months or less that are readily convertible to a known amount of cash and
are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments.
o. Financial instruments - initial recognition, subsequent measurement and impairment
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial assets and financial liabilities are recognized when, and
only when, the Company becomes a party to the contractual provisions of the instruments.
(i) Financial Assets
Financial Assets are measured at amortized cost or fair value through Other Comprehensive Income or
fair value through Profit or Loss, depending on its business model for managing those financial assets
and the assets contractual cash flow characteristics.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed of determinable payments that are
not quoted in an active market. Loans and receivable are measured at amortized cost using the
effective interest methods, less any impairment. Interest income is recognized by applying the effective
interest rate, except for short-term receivable when the recognition of interest would be immaterial.
Subsequent measurements of financial assets are dependent on initial categorization. For impairment
purposes significant financial assets are tested on an individual basis, other financial assets are
assessed collectively in groups that share similar credit risk characteristics.
(ii) Financial Liabilities
At initial recognition, all financial liabilities other than fair valued through profit and loss are recognized
initially at fair value less transaction costs that are attributable to the issue of financial liability.
Transaction costs of financial liability carried at fair value through profit or loss is expensed in profit or
loss.
• Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The
Company has not designated any financial liabilities upon initial measurement recognition at fair value
through profit or loss. Financial liabilities at fair value through profit or loss are at each reporting date at
fair value with all the changes recognized in the Statement of Profit and Loss.
• Financial liabilities measured at amortized cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized
cost using the effective interest rate method (''EIR'') except for those designated in an effective hedging
relationship. The carrying value of borrowings that are designated as hedged items in fair value hedges
that would otherwise be carried at amortized cost are adjusted to record changes in fair values
attributable to the risks that are hedged in effective hedging relationship.
1) Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are
recognized in profit or loss when the liabilities are de-recognized as well as through the EIR
amortization process. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.
2) 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. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months after reporting period. For trade and other payables maturing
within one year from the balance sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.
(iii) De-recognition of financial Assets and Financial liability
A Financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognized in profit or loss as other income or finance costs.
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires, or when it transfer the financial asset and substantially all the risks and rewards of
ownership of the assets to another entity.
Offsetting financial assets and liabilities
There are no financial assets or financial liabilities which are subject to offsetting as at March 31, 2024
and March 31, 2023 since, the entity neither has enforceable right or an intent to settle on net basis or
to realise the asset and settle the liability simultaneously. Further, the Company has no enforceable
master netting arrangements and other similar arrangements as at March 31, 2024 and March 31, 2023.
p. Asset held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. Non-current assets classified as held for
sale are measured at the lower of carrying amount and fair value less cost to sell. Any resulting
impairment loss is recognized in the Statement of Profit and Loss. On classification as held for sale the
assets are no longer depreciated.
q. Segment reporting
The Company identifies primary segments based on nature of products and returns and the internal
organisation and management structure. The operating segments are the segments for which separate
financial information is available and for which operating profit/loss amounts are evaluated regularly by
the managing board in deciding how to allocate resources and in assessing performance.
r. Fair value Measurement
The Company measures financial instruments, such as investments at fair value at each balance sheet
date.
Fair value is the price 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 fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
A fair value measurement of a nonfinancial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
(a) Level 1 — Quoted (unadjusted)market prices in active markets for identical assets or liabilities;
(b) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable, or
(c) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
s. Exceptional items
Exceptional items comprise items of income and expense, including tax items, that are material in amount
and unlikely to recur and which merit separate disclosure in order to provide an understanding of the
Group's underlying financial performance
.5. Critical accounting estimates, assumptions and judgments
The estimates and judgements used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectation of future events) that the Company believes to be reasonable under the
existing circumstances. Differences between actual results and estimates are recognised in the period in
which the results are known/materialised.
In the process of applying the accounting policies, management has made the following judgments, which
have the most significant effect on the amounts recognised in the financial statements:
(i) Income taxes
"Management judgment is required for the calculation of provision for income taxes and deferred tax
assets and liabilities.
The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which could lead to significant adjustment to the
amounts reported in the standalone financial statements."
(ii) Contingencies
Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.
(iii) Property, plant and equipment
Management assesses the remaining useful lives and residual value of property, plant and equipment.
Management believes that the assigned useful lives and residual value are reasonable.
22 Financial risk management
22.01 Financial risk factors
The Company's principal financial liabilities comprise unsecured borrowings and trade payables. The main
purpose of these financial liabilities is to manage finances for the Company's operations. The Company has
loan and other receivables, and cash that arise directly from its operations. The Company's activities expose
it to a variety of financial risks:
i) Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market prices comprise two types of risk: interest rate risk and other price risks,
such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings, deposits and investments. Interest rate risk is the risk that the fair value or future cash flows of
a financial instrument will fluctuate because of changes in market interest rates. This is based on the
financial assets and financial liabilities held as at March 31, 2024 and March 31, 2023.
(ii) Liquidity risk
The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company relies on a mix of borrowings, capital infusion 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
term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has
sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed
borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where
applicable) on any of its borrowing facilities.
The table below provides amortised value of cash flows towards non-derivative financial liabilities into
relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.
22.02 Capital risk management
The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company's primary objective when managing capital is to ensure that it maintains an efficient capital
structure and healthy capital ratios and safeguard the Company's ability to continue as a going concern in
order to support its business and provide maximum returns for shareholders. The Company also proposes to
maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives,
policies or processes during the year ended March 31, 2024 and March 31, 2023.
For the purpose of the Company's capital management, capital includes issued capital, and all other equity
reserves. Net debt includes, interest bearing loans and borrowings less cash and short term deposits.
The Company monitors capital using gearing ratio, which is net debt divided by total capital plus total debt.
Note 36 OTHERS DISCLOSURES AS PER SCHEDULE III
36.01 Corporate Social Responsibility Expenditure
Section 135 of Companies Act, 2013 regarding CSR is not Applicable on the Company.
36.02 Relationship with Struck-off Companies:
_Company had "NO" relationship and transactions with Struck-off Companies._
For R Sogani & Associates For and on behalf of the Board of Directors
Firm Reg. No: 018755C
Chartered Accountants Sd/-
Bhagwan Singh Sd/-
Aishwarya Sethia
Chairman & W.T.
Director and CFO
DIN:ct0o2r305246 “N 029796 18
Sd/-
(Bharat Sonkhiya)
Partner
M.No. 403023 Sd/-
Sunil Kumar Bairwa
Place : Jaipur Additional Independent Director
Date: May 08, 2024 DIN: 06791053
UDIN: 24403023BKBMPT5571
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