K. PROVISIONS & CONTINGENCIES:
Provisions are recognized in the books when there is a present obligation as a result of past
events involving substantial degree of estimation and it is probable that there will be an outflow
of economic resources. contingent liabilities, if any, are not recognized but are disclosed in the
notes.
L. FINANCIAL INSTRUMENTS:
Non-Derivative Financial Instruments:
Non-derivative financial instruments are recognized initially at fair value when the Company
becomes a party to the contractual provisions of the instrument.
Dividend and interest income are recognized when earned.
Non-derivative financial instruments consists of
a) Financial Assets which includes Cash and Cash equivalents, trade receivables, unbilled
revenue and eligible current and non-current assets.
b) Financial Liabilities includes short term and long term borrowings bank overdrafts, trade
payables and eligible current and non-current liabilities.
Cash and cash equivalents
Cash and cash equivalents include all cash balances and short-term highly liquid investments
with an original maturity of three months or less that are readily convertible into known amounts
of cash which are subject to insignificant risk of change in value. Bank overdraft, if any are
shown within borrowings in current liabilities in the Balance Sheet.
Receivables
Trade and other receivables
Receivables are initially recognized at fair value, which in most cases approximates the nominal
value. If there is any subsequent indication that those may be impaired, they are reviewed for
impairment.
Trade and other payables
Liabilities are recognized for amounts to be paid in future for goods or services received,
Whether billed by the supplier or not.
M. EVENTS AFTER THE REPORTING PERIOD
Adjusting events are events that provide further evidence of condition that existed at the end of
the reporting period. The financial statements are adjusted for such events before authorization
for issue.
Note No.30: Employee Benefits
a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to registered
Provident fund administered by Central Government. The contribution of Rs.5,95,236/-(Previous year
Rs.4,15,320/-) including administrative charges is recognized as expense and is charged in the Statement of
Profit and Loss. The obligation of the Company is limited to the amount contributed and it has no further
contractual nor any constructive obligations.
b) Gratuity: Gratuity is non funded Defined Benefit Plan payable to the qualifying employees on separation.
Company provides for gratuity for employees based on the present value of the Defined Benefit obligation and
the related current service costs which are measured on actuarial valuation carried out as on Balance Sheet date.
The liability has been assessed using Projected Unit Credit Method.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the
year ended March 31,2024 are as follows.
The carrying amounts of above Financial Assets and Liabilities are considered to be same as their fair values due
to the nature of the contractual obligations.
Fair Value Hierarchy
Management considers that, the carrying amount of those financial assets and financial liabilities that are not
subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial
instruments are recognized and measured at fair value for which fair values are determined using the judgments
and estimates. The fair value of Financial Instruments referred below has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices
in active market for identical assets or liabilities. (Level-1 measurements) and lowest priority to unobservable
(Level-3 measurements). The categories used are as follows:
• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in
active markets.
• Level 2 - Level 2 hierarchy includes financial instruments measured using 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 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on
observable market data (unobservable inputs).
Valuation Process:
For Level-3 financial instruments, the fair values have been determined by applying the Net Book value method.
The carrying amounts of receivables, payables, bank balances and cash and cash equivalents are considered to be
same as their fair value due to their contractual obligations.
For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
Financial Risk Management:
The Company’s activities expose to a variety of financial risks viz. market risk, credit risk and liquidity risk. The
Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The primary market risk to the Company is credit risk and liquidity risk. The
Company’s exposure to credit risk is influenced mainly by, dealings with Government and Government agencies
being the top customers.
a. Management of Market Risk:
Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate financial
assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to
any interest rate risk. Similarly, the Company does not have any Financial Instrument which is exposed to change in
price.
b. Foreign Currency Risks:
The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with
respect to the US Dollars (USD) for the services rendered by the Company to foreign customers.
Credit risk is the risk of financial loss to the Company if a customer or a counter party fails to meet its contractual
obligations. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables.
The company considers that, all the financial assets that are not impaired and past due as on each reporting dates
under review are considered credit worthy.
Credit risk exposure
An analysis of age-wise trade receivables at each reporting date is summarized as follows:
The company's liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity
are cash and cash equivalents, cash generated from operations and availability of cash credit and overdraft facilities
to meet the obligations as and when due.
Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during
the normal course of business. The company maintains sufficient balance in cash and cash equivalents and working
capital facilities to meet the short term liquidity requirements.
The company assesses long term liquidity requirements on a periodical basis and manages them through internal
accruals and committed credit lines.
NOTE 37: PLANT PROPERTY & EQUIPMENT
During the year the Company has sold its Buildings with book value of Rs.225.79 lakhs which form substantial
portion of Plant Property & Equipment.
NOTE 38: EXCEPTIONAL ITEMS
Exceptional items represent Loss on Write down of Inventory for Rs.36.50 lakhs and Loss on Sale of Buildings for
Rs.3.05 Lakhs
NOTE 39: OTHERS
i. No proceeds have been initiated or pending against the company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
ii. The company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
iii. In the opinion of the Board of Directors, the Company does not have any impaired assets.
iv. Trade payables to Micro, Small, Medium Enterprises has been identified based on information
available with the company. This has been relied upon by the auditor.
v. Company has used accounting software for maintaining its books of account for the financial year
ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the software.
vi. Amounts in the financial statements are presented in Rupees in Lakhs, unless otherwise specified. All
figures have been rounded to the nearest Lakhs with two decimals.
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