23. Provisions and contingent liabilities
Provisions:
A Provision is recorded when the Company has a present obligation (legal or constructive)as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.
Contingent liabilities:
Whenever there is possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are considered as contingent liability.
Show cause notices are not considered as Contingent Liabilities unless converted into demand.
Contingent Assets:
Contingent assets are not recognised in the standalone financial statements since this may result in recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related assets is not a contingent assets and is recognised.
24. Investment in Associates
The investments in associates are carried in these standalone financial statements at historical cost except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations.
When the Company is committed to a sale plan involving disposal of an investment, or a portion of an investment in an associate the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met.
Any retained portion of an investment in an associate that has not been classified as held for sale continues to be accounted for at historical cost. Upon loss of significant influence over the associate the Company measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate and the fair value of retained investment and proceeds from disposal is recognised in Standalone Statement of Profit and Loss.
25. Cash Dividend to Equity Holders of the Company
The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
26. Earnings per share
Basic earnings per share are calculated by dividing the Net Profit or Loss for the period 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 for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are considered for the effects of all dilutive potential equity shares.
i) Gratuity:
Retirement benefits in the form of gratuity liability (being administered by Life Insurance Corporation of India) is a defined benefit obligation and is provided for on the basis of an actuarial valuation made at the end of each financial year.
The present value of obligation is determined based on actuarial valuation using the projected unit credit method as prescribed by the Ind AS-19 -’Employee Benefits’, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up final obligation.
ii) Compensated absences/leave encashment:
The company also extends defined plans in the form of compensated absences/leave encashment to employees. Provisions for compensated absences is made on actuarial valuation basis.
The company is exposed to various risks as regards its obligation towards gratuity benefit and leave salary which are as follows:
(i) interest rate risk, (ii) liquidity risk, (iii) salary escalation risk, (iv) regulatory risk, (v) market risk and (vi) investment risk
Financial instruments : Fair values measurement Accounting classification and fair value hierarchy
Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments:
Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2: inputs other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market participants.
Set out below, is a comparison by category of the carrying amounts and fair value of the company's financial instruments.
Key inputs:
- Listed equity investments (other than subsidiaries, joint ventures and associates): quoted bid price on stock exchange (Level 1)
- Mutual funds: based on net asset value of the scheme (Level 2)
- The management assessed that fair value of cash and bank balances, trade receivables, loans, trade payables, borrowings , other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
- During the reporting period ending 31st March, 2023 and 31st March, 2022, there was no transfer between Level 1 and Level 2 fair value measurement.
3 Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. Management exposed to market risk primarily related to the market value of investments and interest rate risk. Thus, our exposure to market risk is function of investing and borrowing activities only.
4 Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in interest rates.
Exposure to interest rate risk
Company is not having interest rate risk arises from borrowings, as company is having borrowings with fixed interest rate. The interest rate profile the company's interest bearing financial instruments as reported to the management of the company.
Additional Information Details :
1 Event after reporting period:
No adjusting or significant non-adjusting event have occurred between the 31st March, 2024 reporting date and the date of authorization.
2 Standards notified but not yet effective
There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company's financial statements.
3 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
4 The Company do not have any transactions with companies struck off.
5 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
6 The Company have not any such transaction which is 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 survey or any other relevant provisions of the Income Tax Act, 1961.
7 The figures of previous year have been regrouped and rearranged wherever necessary.
For Parekh Sharma & Associates For and on behalf of the Board of Directors
Chartered Accountants Firm's Regn. No. 129301W
Sd/- Sd/- Sd/-
Sujesh Sharma Gautam P. Khandelwal Nimis Sheth
Partner Chairman Director
M.No. :118944 (DIN: 00270717) (DIN: 00482739)
Sd/- Sd/-
Roshan Dsouza Neha Rane
Chief Financial Officer Company Secretary
(ICSI No. A59050)
Place: Mumbai Place: Mumbai
Date: 30th May,2024 Date: 30th May,2024
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