13. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognised if, as a result of a past event, the group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company
from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that
may probably not require an outflow of resources or an obligation for which the future outcome cannot be
ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood
of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in financial statements.
20 Contingent liabilities & Commitments
The company does not have any contingent liabilities and Commitements (Including Capital
Commitments as on March 31, 2024 (As at March 31, 2023 - Nil).
13. Relationship with struck off companies :
The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
14. Compliance with number of Layers :
The company has complied with the number of layers persribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
15. Corporate Social Responsibility :
Corporate social responsibilty Provisions are not applicable for this currengt Financial Year.
16. Crypto Currency or Virtual Currency :
The Company has not traded or invested or involved in Crypto Currency or Virtual Cumency transactions during the financial year.
24 Financial instruments
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due
to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.
There were no significant changes in classification and no significant movements between the fair value hierarchy
classifications of financial assets and financial liabilities during the period.
Financial risk factors
The Company's principal financial liabilities comprise loans and borrowings, advances and trade and other payables.
The purpose of these financial liabilities is to finance the Company's operations and to provide to support its
operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash
equivalents that derive directly from its operations.
Considering the size and the operations of the Company, it is not exposed to Liquidity Risk, Market Risk and Credit
risk.
25 Capital risk management
The Company's objectives when managing capital are to :
(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for
(ii) maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount
of dividends paid to shareholders etc. The Company's policy is to maintain a stable and strong capital
structure with a focus on total equity so as to maintain investor, creditors and market confidence and to
sustain future development and growth of its business.
26 First time adoption of Ind AS
The accounting policies set out in Note 1, have been applied in preparing the financial statements from the
year ended March 31, 2018, the comparative information presented in these financial statements for the
year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 01, 2016 (the
Company's date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted
the amounts reported previously in financial statements prepared in accordance with the accounting
standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant
Exemptions and exceptions availed
A. Ind AS optional exemptions
(i) Deemed Cost
The Company on first time adoption of Ind AS, has elected to continue with the carrying value for all
of its property, plant & equipment and other intangible assets as recognised in the financial statements
as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed
costs as at the date of transition.
(ii) Designation of previously recognised financial instruments
Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity
instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.The
company has opted to apply this exemption for its investment in equity Investments.
B. Ind AS mandatory exemptions
(i) Estimates
An entity's estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent
with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect
any difference in accounting policies).
Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in
conformity with previous GAAP.
The Company made estimates for following item in accordance with Ind AS at the date of transition as
these were not required under previous GAAP:
- Impairment of financial assets based on expected credit loss model.
(ii) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in
debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind
AS.
(iii) De-recognition of financial assets and financial liabilities
The Company has elected to apply derecognition requirements for financial assets and financial
liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind
AS.
Transition to Ind AS - Reconciliations
There were no adjustments required to be carried out pursuant to the adoption of the Ind AS by the
Company. Hence, there are no reconciliation line itmes have been presented.
27 Recent accounting prouncements
Ind AS 115 - Revenue from Contracts with Customers
In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting
Standards) Amended Rules, 2018 ("amended rules"). As per the amended rules, Ind AS 115 "Revenue from
contracts with customers" supersedes Ind AS 11, "Construction contracts" and Ind AS 18, "Revenue" and
Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The
model specifies that revenue should be recognised when (or as) an entity transfer control of goods or
services to a customer at the amount to which
the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature,
amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts with
customers. The new revenue standard is applicable to the Company from 1 April 2018.
The Company is evaluating the requirement of the amendment and the impact on the financial statements.
The effect on adoption of Ind AS 115 is expected to be insignificant".
28 The financial statements were approved for issue by the Board of Directors on 27-05-2024
29 The figures of the previous year's have been regrouped or reclassified wherever necessary to make them
comaparable.
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