k) PROVISIONS AND CONTINGENT LIABILITIES:
i) A provision is recognized when the Company has
a present obligation as a result of past event and
it is probable that outflow of resources will be
required to settle the obligation, in respect of
which reliable estimate can be made. Provisions
(excluding retirement benefits, decommissioning
and site restoration cost) are not discounted to
its present value and are determined based on
best estimate required to settle the obligation at
the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect
the current best estimates.
ii) Financial effect of contingent liabilities is
disclosed based on information available up
to the date on which financial statements are
approved. However, where a reasonable estimate
of financial effect cannot be made, suitable
disclosures are made with regard to this fact
and the existence and nature of the contingent
liability.
l) EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable
to equity share holders by the weighted average
number of equity shares during the period. For
the purpose of calculating the diluted earnings per
share, the net profit or loss for the period attributable
to the equity share holders and weighted average
number of shares outstanding during the period
are adjusted for the effects of all potential dilutive
equity shares.
m) FINANCIAL INSTRUMENTS:
Financial assets and liabilities are recognized when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets
and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured
on initial recognition of financial asset or financial
liability.
(i) Cash and Cash Equivalents:
Cash and Cash Equivalents comprise cash and
deposit with banks. The company considers
all highly liquid investments including demand
deposits with bank with an original maturity
of three months or less and that are readily
convertible to known amounts of cash to be cash
equivalents.
(ii) Financial assets at amortized cost:
Financial assets are subsequently measured at
amortized cost if these financial assets are held
within a business whose objective is to hold
these assets in order to collect contractual cash
flows and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and interest
on the principal amount outstanding.
(iii) Financial assets at fair value through other
comprehensive income (FVTOCI) :
All equity investments and unquoted debentures
are measured at fair values. Investments which
are not held for trading purposes and where the
Company has exercised the option to classify
the investment as at fair value through other
comprehensive income, all fair value changes
on the investment are recognised in OCI. The
accumulated gains or losses recognised in OCI
are reclassified to retained earnings on sale of
such investments.
Financial assets at fair value through profit or loss
(FVTPL):
Financial assets which are not classified
in any of the categories above are fair value
through profit or loss.
(iv) Financial liabilities:
Financial liabilities are subsequently carried
at amortized cost using the effective interest
method. 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.
n) IMPAIRMENT:
(i) Financial Assets:
The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance. The Company recognizes lifetime
expected losses for all contract assets and /
or all trade receivables that do not constitute
a financing transaction. For all other financial
assets, expected credit losses are measured
at an amount equal to the 12-month expected
credit losses or at an amount equal to the life
time expected credit losses if the credit risk on
the financial asset has increased significantly
since initial recognition.
(ii) Non Financial Assets:
A non financial asset is treated as impaired when
the carrying cost of asset exceeds its recoverable
value. An impairment loss, if any, is charged to
statement of profit and loss, in the year in which
an asset is identified as impaired.
o) LEASES:
(i) Operating leases
Where the Company is Lessee:
1) The Company's lease asset classes primarily
consist of lease rentals for buildings. The
Company assesses whether a contract contains
a lease, at inception of a contract. A contract is,
or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.
To assess whether a contract conveys the right
to control the use of an identified asset, the
Company assesses whether:
(i) the contact involves the use of an identified
asset.
(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease.
(iii) the Company has the right to direct the use
of the asset.
2) At the date of commencement of the lease,
the Company recognizes a right-of-use asset
("ROU") and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value leases.
For these short-term and low value leases, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over
the term of the lease.
3) Certain lease arrangements includes the options
to extend or terminate the lease before the end
of the lease term. ROU assets and lease liabilities
includes these options when it is reasonably
certain that they will be exercised.
4) Right-of-use assets are depreciated from the
commencement date on a straight-line basis
over the shorter of the lease term and useful
life of the underlying asset. Right of use assets
are evaluated for recoverability whenever events
or changes in circumstances indicate that their
carrying amounts may not be recoverable.
For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair
value less cost to sell and the value-in-use) is
determined on an individual asset basis unless
the asset does not generate cash flows that are
largely independent of those from other assets.
5) The lease liability is initially measured at
amortized cost at the present value of the
future lease payments. The lease payments are
discounted using the interest rate implicit in
the lease or, if not readily determinable, using
the incremental borrowing rates in the country
of domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment
to the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option.
Leases of property, plant and equipment where
the company, as lessee, has substantially all the
risks and rewards of ownership are classified as
finance leases. Finance leases are capitalised
at the lease's inception at the fair value of the
leased property or, if lower, the present value of
the minimum lease payments. The corresponding
rental obligations, net of finance charges, are
included in other financial liabilities. Each lease
payment is apportioned between the finance
charge and the reduction of the outstanding
liability. The outstanding liabilities included in
Non-current liabilities. The finance charge is
charged to the Statement of Profit and Loss over
the lease period so as to produce a constant
periodic rate of interest on the remaining balance
of the liability for each period.
(ii) Ind AS 116 requires lessees to determine the lease
term as the non-cancellable period of a lease
adjusted with any option to extend or terminate
the lease, if the use of such option is reasonably
certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis
and thereby assesses whether it is reasonably
certain that any options to extend or terminate
the contract will be exercised. In evaluating
the lease term, the Company considers factors
such as any significant leasehold improvements
undertaken over the lease term, costs relating to
the termination of the lease and the importance
of the underlying asset to its operations taking
into account the location of the underlying asset
and the availability of suitable alternatives. The
lease term in future periods is reassessed to
ensure that the lease term reflects the current
economic circumstances. After considering
current and future economic conditions, the
Company has concluded that no changes are
required to lease period relating to the existing
lease contracts.
p) SEGMENT REPORTING:
Segments are identified based on the manner in
which the Company's Chief Operating Decision
Maker ('CODM') decides about resource allocation
and reviews performance. Segment results that
are reported to the CODM include items directly
attributable to a segment as well as those that can
be allocated on a reasonable basis. Segment capital
expenditure is the total cost incurred during the
period to acquire property, plant and equipment and
intangible assets other than goodwill.
These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and
salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
an increase in the return on the plan assets.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan's liability.
Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
35. OPERATING LEASE (Ind AS 17):
The Company has various operating leases for office facilities which is renewable on a periodic basis, and cancellable at
its option. Rental expenses for operating leases included in the financial statements for the year are Rs. 167.31 Lakhs
(Previous Year Rs. 173.35 Lakhs).
36. Financial risk management objectives and policies:
The entity's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance the entity's operations to support its operations. The entity's principal financial assets
include trade and other receivables, rental and bank deposits and cash and cash equivalents that are derived directly
from its operations.
The entity is exposed to market risk/credit and liquidity risks. The entity's senior management oversee the management
of these risks. The board reviews their activities. No significant derivative activities have been undertaken so far.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include deposits, FVTOCI investments
and derivative financial instruments.
The sensitivity analysis in the following sections relate to the positions as at March 31, 2025 and March 31, 2024:
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations; provisions; and the non-financial assets and liabilities of foreign operations.
The following assumption has been made in calculating sensitivity analysis.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024 including the effect of
hedge accounting.
ii. Credit risk
Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is exposed
to credit risk arising from its operating (primarily trade receivables) and investing activities including deposits placed with
banks, financial institutions and other corporate deposits. The Company establishes an allowance for impairment that
represents its estimate of expected losses in respect of financial assets. Financial assets are classified into performing,
under-performing and non performing. All financial assets are initially considered performing and evaluated periodically
for expected credit loss. A default on a financial asset is when there is a significant increase in the credit risk which is
evaluated based on the business environment. The assets are written off when the Company is certain about the non¬
recovery.
37. Fair Value Measurement ( Ind AS 113):
The Financial Instruments of the Company are initially recorded at fair value and subsequently measured at amortized
cost based on the nature and timing of the cash flows.
45. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory
period
46. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.
47. The proceedings haven't 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 as at the balance sheet date.
48. a) The company has neither advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) nor received with
the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company/Funding party (Ultimate Beneficiaries).
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
b) The company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding party)
with the understanding (whether recorded in writing or otherwise) that the Company shall;
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
49. The Company has used accounting software for maintaining its books of account 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
accounting software and payroll software, Further no instance of audit trail feature being tampered with was noted in
respect of the accounting software and payroll software.
50. The Company doesn't have any transaction 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), unless there is immunity for disclosure under any scheme as the balance
sheet date.
51. The Company hasn't traded or invested in Crypto currency or Virtual Currency during the financial year.
52. Balances of Sundry Debtors, Loans & Advances are subject to reconciliation and confirmation.
53. All figures have been rounded-off to the nearest Rupees in lakhs. Previous Year's figures have been re-grouped/reclassified
wherever necessary to conform to the current year Presentation.
for and on behalf of the Board As per my Report of even date
Sanjay Soni Shashi Soni Kiran Soni Varun Kumar A S Ramaswamy Vijayanand
Managing Director Chairperson Chief Financial Officer Company Secretary Chartered Accountant
DIN: 00609097 DIN: 00609217 Membership No. 202118
Place: Bangalore
Date: 30th May, 2025
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