j. Provision and Contingencies
A provision is recognised if as a result of past event the company has a present legal or constructive obligation
that is reasonably estimated and it is probable that an outflow of economic benefit will be required to settle
the obligation. Provisions are determined by discounting the expected cash flow at a pre-tax rate that reflects
current market assessments of the time value of the money and the risk specific to the liabilities.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. The Company does not recognize a contingent liability but discloses its exist¬
ence in the financial statements, if material, are disclosed by way of notes to the accounts.
Contingent assets are not recognised in the financial statements, as they are dependent on the outcome of
legal or other processes.
k. Employee Benefits:
Expenses and liabilities in respect of employee benefit are recorded in accordance with Indian Accounting
Standard (IND AS 19 employees benefit)
(i) Short Term Employees Benefit
Short Term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which
employees render the related service) are recognized as expenses in the period in which employee servic¬
es are rendered as per the Company's scheme based on expected obligations on undiscounted basis.
(ii) Post-Employment Benefit Plans
Under Defined Contribution Plan, the contribution is payable in keeping with the related schemes are
recognized as expenses for the year.
Under Defined Benefit Plan, the present value of the obligations is determined based on actuarial valua¬
tions using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by actuary
at each Balance Sheet date. Actuarial gain /loss, if any,arising from experience adjustments and change
in actuarial assumptions are charged or credited to Other Comprehensive income in the period in which
they arise.
(iii) Other Long-Term Employee Benefits
Leave encashment/compensated absence is determined by valuations using the Projected Unit Credit
Method, on the basis of actuarial valuations carried out by actuary at each Balance Sheet date. Actuarial
gain /loss, if any, arising from experience adjustments and change in actuarial assumptions are charged
or credited to Other Comprehensive income in the period in which they arise.
l. Cash and Cash Equivalents
Cash and Cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of statement of cashflows, cash and cash equivalents consist of cash at banks and on hand and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral
part of Company's Cash Management.
m. Dividend
Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividend
is approved by the shareholders. Dividend payable and corresponding tax on dividend distribution is recog¬
nised directly in equity.
n. Earnings Per Share
Basic Earnings per equity shares are calculated by dividing the net profit or loss before OCI for the period attrib¬
utable to equity shareholders by the weighted average number of equity share outstanding during the year.
For calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity
shareholders and the weighted average number of share outstanding during the period are adjusted for the
effect of all diluted potential equity shares.
o. Financial Instruments
(a) Financial Assets
Initial Recognition and Measurement
All financial Assets are recognised initially at fair value plus, in case of financial assets not recorded at fair
value through profit or loss, transaction cost that are attributable to the acquisition of the financial asset.
Subsequent measurement
(i) Financial Assets carried at amortised Cost- A Financial Assets is subsequently measured at amortised
cost, using effective interest rate (EIR) method, if it is held within a business model whose objective is
to hold the asset 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 term
on the principal amount outstanding.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the
statement of profit or loss. The losses arising from impairment are recognised in the profit or loss.This
category generally applies to trade receivables, cash and bank balances, loans and other financial
assets of the company.
(ii) Financial Assets at fair value through other comprehensive income- A financial asset is subsequently
measured at fair value through other comprehensive income if it is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on a specified date to cash flows that are
solely payments of principal and interest on the principal amount outstanding. The Company has
made an irrevocable election for its investment which are classified as equity instruments to present
the subsequent changes in fair value in other Comprehensive income based on its business model.,
Further in case where the company has made an irrecoverable election based on its business model
for its investments, which are classified as equity instrument the subsequent changes in fair value are
recognised in other comprehensive income.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to statement of profit and loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the statement of profit and loss.
(iii) Financial assets at fair value through profit or loss - A financial asset which is not classified in any of
the above categories are subsequently fair valued through profit or loss
(b) Financial Liabilities
Initial recognition and Measurement
Financial Liabilities are recognised at fair value on initial recognition and in case of loan and borrowing or
payables net of directly attributable transaction costs.
Subsequent Measurement
Financial Liabilities are subsequently carried at amortized cost using effective interest rate method. Gains
and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR.The EIR amortisation is included as finance
costs in the statement of profit and loss.
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.
(c) De-recognition of financial instrument
The company de-recognises the financial assets when contractual right to cash flow from financial assets
expire or it transfer the financial assets and transfer qualities for de-recognition under IND AS 109. A fi¬
nancial liability or a part of a financial liability is de-recognised from the company's Balance Sheet when
obligation specified in the contract is discharged or cancelled or expires.
(d) Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.
p. Fair value financial instruments
The company measure financial instrument at fair value at each balance sheet date. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market partic¬
ipants at the measurement date.
In determining the fair value of its financial instruments, the company use various method and assumption
that are based on market conditions and risks existing at each reporting date.The methods used to determine
the fair value includes discounted cash flow analysis, available quoted market price and dealer quotes and val¬
uation report etc. The method of assessing fair value results in general approximation of value and such value
may never actually be realised.
Fair Values are categorized into different levels in a fair value hierarchy based on the inputs used in the valua¬
tion techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in 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: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
When measuring the fair value of an asset or liability, the company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset ora liability fall into different levels of the fair
value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.
q. IncomeTax
The income tax expense or credit for the period is the tax payable on the current period's taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses. The current income tax charge is calculated
on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the coun¬
tries where the Company operate and generate taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. De¬
ferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted
by the end of the reporting period and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses. De¬
ferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised
in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.
r. New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance
of the Company's Financial Statement are disclosed below:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,
2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
company.
The Company's financial liabilities include Loan and borrowing, security deposits, retention money and Trade & other
payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's financial
assets include investments, trade & other receivables, deposits and cash & cash equivalents.
The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks
to minimize potential adverse effects on the Company's financial performance. The Company uses derivative financial
instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instruments for
trading or speculative purposes.
The Company's activities expose it to Credit Risk, Liquidity Risk, Market Risk, and Equity Price Rise. The Company has
a Risk management policy and its management is supported by a Risk management committee that advises on risks
and the appropriate financial risk governance framework for the Company. The Risk management committee provides
assurance to the Company's management that the Company's risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company's policies
and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below.
A. Credit Risk-A risk that counterparty may not meet its obligations under a financial instrument or customer contract,
leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its operating and
financial activities.
Customercreditriskis managed by the respective marketing department subjecttotheCompany'sestablished policy,
procedures and control relating to customer credit risk management.The Company reviews the creditworthiness of
these customers on an on-going basis. The Company estimates the expected credit loss on the basis of past data,
experience and policy laid down in this respect. The maximum exposure to the credit risk at the reporting date is
the carrying value of the trade receivables disclosed in Note 9 (Nine) as the Company does not hold any collateral
as security. The Company has a practice to provide for doubtful debts as per its approved policy.
An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on
historical data of credit losses.
The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
cash credits, Term loans among others.
C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of
changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may result
from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.
(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will
fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company's
exposure to the risk of changes in foreign exchange rates relates primarily to the Company's import and foreign
currency loan/ derivatives operating activities. The Company, as per its risk management policy, uses foreign
exchange and other derivative instruments primarily to hedge foreign exchange exposure. The management
monitors the foreign exchange fluctuations on a continuous basis.
Derivative instruments and un-hedged foreign currency exposure:
The Company does not enter into any derivative instruments for trading or speculative purposes.
(ii) Interest rate risk-The Company's exposure to the risk of changes in market interest rates relates primarily to
long term debt. The Company is not exposed to such risk as on 31st March, 2025.
The Company's objective when managing capital (defined as net debt and equity) is to safeguard the Company's
ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders,
while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding.
The Company manages its capital structure and makes adjustments to it, in taking into consideration the economic
conditions and strategic objectives of the Company.
For the purpose of the Company's capital management, capital includes issued capital, share premium and all other
equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short
term deposits.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches of the financial covenants of any interest bearing loans and borrowing for
reported periods.
a. The company has no immovable property whose title deeds are not held in the name of the company and it also
has no such immovable property which is jointly held with others,.
b. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to whether the
revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered
Valuers and Valuation) Rules, 2017 is not applicable to the Company.
c. No proceedings 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, the company for the
financial year 2024-25.
d. The Company has taken borrowings from banks or financial institutions on the basis of security of current assets
(Term Deposits) during the financial year ended 31 03 2025.
e. The Company is not declared as willful defaulter by any bank or financial Institution or other lender.
f. The company has not entered into any transactions with companies which are struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year ended on 31 st March,2025.
g. The Company satisfied all the charges on the assets of the Company, except for Rs. 3.89 Lakhs for which whole
amounts of Rs. 3.89 Lakhs paid to the Charge Holder (Governor of Odisha) and the Company is having "No Objection
Certificate from the Charge Holder, the Company is pursuing the charge holder to file satisfaction of charge to
Registrar of Companies.
h. During the year Company has not 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)
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 (Ultimate Beneficiaries) or
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; the company.
i. During the year Company has not received any fund 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.
j. The Company has no such transaction which are not recorded in the books of accounts during the year and also
there are not such unrecorded income and related assets related to earlier years which have been recorded in the
books of account during the year.
k. The Company has not traded or invested in Crvoto currency or Virtual Currency durina the financial year
a. Previous year figures are regrouped and rearranged wherever necessary.
As per our Report of even date
For AMK & Associates Virendraa Bangur Rajesh Kumar Singhi
Chartered Accountan ts Director Executive Director & CFO
FRN:327817E (Din:00237043) (Din:01210804)
Bhupendra Kumar Bhutia
M. No. 059363 Puja Guin
Place: Kolkata Company Secretary
Date: 24th April 2025 ICSI Mem. No. ACS - 29481
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