1 Transition to IND AS
The Company's financial statements are prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31st March 2025, the comparative information presented in these financial statements for the year ended 31st March 2024.
4.2. Fair Value Hierarchy
Ý Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Ý Level 2 - 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).
Ý Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
4.3. Valuation Technique used to determine Fair Value:
Specific valuation techniques used to value financial instruments include:
Ý Use of quoted market prices for Listed instruments
Ý The carrying amount of current financial assets and current trade payables and other financial liabilities measured at amortised cost are considered to be the same as their fair values, due to their short term nature.
Fair value of one of the unquoted investments are considered to be Zero.5. Financial risk management
The Company's activities expose to limited financial risks: market risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
Market risk
Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument.
The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), Interest rate risk and the market value of its investments.
Securities Prices Risk
The Company’s exposure to equity securities price risk arises from Investments held and classified in the Balance Sheet either Fair Value through P&L or fair value through OCI.
Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Company’s Trade Receivables, Retention Receivables, Advances and deposit(s) made. The company is predominantly into cash and carry business and does an internal evaluation before credit is given to any party and as such the impact of credit risk is minimal.
Liquidity Risk
Company’s liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal sources of liquidity are cash and cash equivalents, cash generated from operations.
The company liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.
Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues, repayment of loans and retention & deposits arising during the normal course of business as of each reporting date. Company maintain a sufficient balance in cash and cash equivalents to meet short-term liquidity requirements.
Company accesses the long term liquidity requirements on a periodical basis and manage them through internal accruals, Unsecured Loans from holding company, Retentions & deposits. Company do not have any outside borrowings.
Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.
The Company primary function is forex trading, as holds stock of foreign currency to sell it to customers and as such impact of foreign exchange rate fluctuations are insignificant for the company.
Capital 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.
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 or by adequate funding by the shareholders to absorb the losses of the Company.
The Company's capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company's capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The company is free of external debt.
6. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”
6.1. General description of various defined employee’s benefits schemes are as under:
a) Provident Fund:
The company’s Provident Fund is managed by Regional Provident Fund Commissioner. The company pays fixed contribution to provident fund at pre-determined rate.
b) Gratuity:
Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial valuation carried out by LIC of India and corresponding contribution to the fund is expensed in the year of such contribution.
The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.
The Company recognised for provident fund contributions Rs. 6.60 lakhs (Previous Year Rs. 6.20 lakhs) For superannuation contributions Rs.1.93 lakhs (Previous Year Rs. 2.15 lakhs) and Gratuity contribution for Rs. 1.44 Lakhs (Previous Year Rs. 1.17 lakhs) in the statement of profit and loss. The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income(OCI) and Balance Sheet & other disclosures are as under:
7. Disclosure in respect of Indian Accounting standard (Ind AS)-108: “Operating Segments”
Since the Company primarily operates in one segment - Fee for specified services and there is no reportable Geographical segment either.
The Company has not derived revenues from any customer which amount to 10 per cent or more of Company revenues.
9) Additional regulatory information required by Schedule III of Companies Act 20131. Title Deed of Immovable Property not held in name of the Company
The company does not own any immovable properties which warrants disclosure with regard to title deeds of immovable property not held in the name of the company.
2. Disclosure on Revaluation of Assets:
The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both.
3. Disclosure on Loans/Advance to Director/KMP/Related parties
The Company has not made Loans or Advances to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.
4. Capital Work-in-Progress (CWIP) :
Since the company is a service company Disclosure of Capital Work-in-Progress is not applicable.
5. Details of Benami Property held:
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45) and Rules made thereunder.
6. Working Capital/Borrowings:
The Company has not borrowed any loan for working capital.
7 Wilful Defaulter & End use of Funds:
The company has not been declared a wilful defaulter by any bank or financial institution or other lender.
8. Relationship with struck off companies:
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 which warrants disclosure.
9. Registration of charges:
The company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
10. Compliance with Number of layers of companies:
Since the company has not violated the numbers of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of layers) Rules 2017 the disclosure requirement are not warranted.
11. Compliance with approved scheme(s) of arrangements:
The Company has not entered into any Scheme(s) of Arrangements, hence disclosure requirement are not warranted.
12. Undisclosed income:
There is no income surrendered or disclosed as income during the current or Previous financial years in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the Books of accounts.
13. Corporate Social Responsibility:
The provision of section 135 are not applicable to the Company.
14. Details of Crypto currency or Virtual Currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous years.
15. Valuation of PP&E, intangible asset and investment property:
The company has not revalued its property (including right-of-use-assets) or intangible assets or both during the Current or previous financial years.
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