xiv) Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent
liabilities are disclosed in respect of possible obligations that may arise from past events but their existence is confirmed
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company. Contingent Assets are neither recognized nor disclosed in the financial statements. However, contingent
assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the assets and
related income are recognized in the period in which the change occurs.
xv) Cash & Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash
that are subject to an insignificant risk of change in value and having original maturities of less than three months or less
from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of cash in hand and balance with
banks including margin money .
xvi) Borrowing Cost
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Profit and Loss account.
xvii) Income Tax
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the period.
Current Tax
Deferred Tax
xviii) Leases
As Lessee
Accounting for finance leases
Leases of Property, Plant and Equipment, if any, where the Company, as lessee has substantially all risks and rewards
of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as
Property, Plant and Equipment and the related liability is recognized under borrowings. At inception of the lease, finance
leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum
lease payments. Minimum lease payments made under finance leases are apportioned between the finance expense
and the reduction of the outstanding liability.
Accounting for operating leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee
are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease
term.
xix) Earning Per Share
Basic Earning Per Share is calculated by dividing the net profit for the period attributable to equity shareholders by
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average
number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.
xx) Fair value measurement
The Company measures financial instruments, such as,derivatives 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
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the company. The company uses valuation
techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and
liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest
level input that is signifi cant to the fair value measurement as a whole) at the end of each reporting period. The
Company determines the policies and procedures for both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets
held for distribution in discontinued operations.
xxi) Cash Flow Statement
Cash Flow are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of
a non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular
revenue generating, financing and investing activities of the company are segregated.
xxii) Key accounting estimates and judgements
The preparation of the Company’s financial statements requires the management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
23 Disclosure as per Ind AS 108 'Operating Segment'
There is no separate reportable segment as the company is predominantly engaged in only one segment therefore, Indian Accounting standard-108 to Operating
Segment issued by the Institute of Chartered Accountants of India, is not applicable to it.
24 Disclosure as per Ind AS 113 'Fair Value Measurement'
The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents and other financial assets and liabilities are considered
to be the same at their Fair values, due to their short term nature.
25 Details of dues to Micro, Small and Medium enterprises defined under the MSMED Act, 2006
The company has not received any information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006.
Hence disclosure, if any, relating to the amount paid as at the year end together with interest payable/paid as required under the said act has not been furnished.
(In current year as well as in Previous year).
26 Disclosure as per Ind AS 107 'Financial instrument disclosure'
A Capital Management
Risk management
For the purpose of Company's Capital Management , Capital includes issued equity share capital.
'Net Debt' (total borrowings net of cash and cash equivalents and other bank balances) divided by 'Total Equity (as shown in the Balance sheet, inluding non¬
controlling interest).
B Financial Risk management
Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the company's risk management framework.
The Company has exposure to the following risks arising from financial instruments:
- credit risk (see(i);
- liquidity risk (see(ii); and
- market risk (see(iii).
i) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises
principally from the Company's receivables from customers and investments.
a) The carrying amount of financial assets represents the maximum credit risk as on reporting date
Trade receivables and other financial assets
The Company has established a credit policy under which new customer is analysed individually for creditworthiness before the Company's standard payment and
delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, credit agency information,
industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require
approval from the appropriate authority as per policy.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether
thay are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial
difficulties.
b) Provision for Expected credit loss:
(i) Financial assets for which loss allowance is measured using 12 month expected credit losses.
With regard to all financial assets with contractual cash flows, other than trade receiables, management belives these to be high quality assets with negligble credit
risk. The management believes that the parties from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk
of default is negligible and accordingly no provision for excepted loss has been provided on these financial assets.
(ii) Financial assets for which loss allowance is measured using life time expected credit losses
The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.
Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit
risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss.
ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash
or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company's treasury department is responsible for managing the short-term and long-term liquidity requirements. Short term liquidity situation is reviewed daily
by the treasury deparment. Longer term liquidity position is reviewed on a regular basis by the Company's Board of Directors and appropriate decisions are taken
according to the situation.
iii) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's income or the value of its holding
of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising
the return.
xii Utilisation of Borrowed funds and Share Premium
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries") with the
understanding whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries). The Company has also not received any fund from any parties (Funding Party)
with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries
xiii Undisclosed Income
The company does not have any undisclosed Income
xiv Corporate Social Responsibility
As per section 135 company required to spent a prescribed amount in CSR project if company fall within the definition of
Section 135. However Company is not falling under section 135. hence the CSR provison is not applicable to the company.
xv Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31,
2024 and March 31, 2023.
29 The financials statements are approved bv the Board on 30 Mav. 2024
F or and of Behalf of Board of Directors of
F or SGR & Associates LLP Kalpa Commercial Limited
Chartered Accountants
FRN No. 022767N
Mukul Jindal Ishant Malhotra
Sanjeev Kumar Director Director
Partner Din : 07229720 Din : 06459062
M. No. 507365
Date : 30th May 2024
Place : New Delhi Jayesh Seth
UDIN : 24507365BKDBNQ 7021 CFO
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