s) Provisions, Contingent liabilities and Assets
i. Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and are liable estimate can be made of the
amount of the obligation. The expense relating to a provision is presented in the Statement of
Profit and Loss net of any reimbursement.
ii. Contingent Liabilities
Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the
future events not wholly within the control of the company or (ii) Present obligations arising
from past events where it is not probable that an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount of the obligation cannot be made.
iii. Contingent Assets
Contingent Assets are not recognized in the financial statements. Contingent Assets if any are
disclosed in the notes to the financial statements.
t) Significant Accounting Judgements, Estimates and Assumptions:
The preparation of the financial statements requires 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. The key assumptions concerning
the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are described below. The Company based on its assumptions and
estimates on parameters available when the financial statements were prepared. However, existing
circumstances and assumptions about future developments may change due to market changes or
circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
Property, plant and equipment and Intangible Assets:
Management reviews the estimated useful lives and residual values of the assets annually in order
to determine the amount of depreciation to be recorded during any reporting period. The useful lives
and residual values as per Schedule II of the Companies Act, 2013 or are based on the Company’s
historical experience with similar assets and taking into account anticipated technological changes,
whichever is more appropriate.
Recognition of deferred tax assets:
The extent to which deferred tax assets can be recognized is based on an assessment of the
probability of the future taxable income against which the deferred tax assets can be utilized.
Contingencies:
Management has estimated the possible outflow of resources at the end of each annual reporting
financial year, if any, in respect of contingencies/claim/litigations against the Company as it is not
possible to predict the outcome of pending matters with accuracy.
Fair value measurements and Impairment of financial assets:
The impairment provisions for financial assets are based on assumptions about risk of default and
expected cash loss. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company’s past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.
Recoverability of trade receivable:
Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit
rating of the counterparty, the amount and timing of anticipated future payments and any possible
actions that can be taken to mitigate the risk of non-payment.
Provisions:
Provisions and liabilities are recognised in the period when it becomes probable that there will be
a future outflow of funds resulting from past operations or events and the amount of cash outflow
can be reliably estimated. The timing of recognition and quantification of the liability require the
application of judgement to existing facts and circumstances, which can be subject to change. Since
the cash outflows can take place many years in the future, the carrying amounts of provisions and
liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.
22. In the opinion of the Board, current assets, loans and advances have a value on realization in the
ordinary course of business at least equal to the amount at which they are stated. The balances
of Loans and advances, Deposits, Sundry Creditors and Unsecured Loans and are subject to
confirmations and adjustments, if any.
23. The company has not received information from the suppliers regarding their status under the
micro, small and medium enterprises development act, 2006. Hence, disclosure, if any, relating
to amount unpaid as at the balance sheet date together with interest paid or payable as per the
requirement under the said act have not been made.
24. No Provision has been made in these accounts in respect of liabilities that may arise on account of
Gratuity to the employees, as the same is accounted on applicability.
25. Contingent Liabilities and Capital Commitments:
A court case (Suit no.894 of 1986) is going on by the company along with a group company against
LIC of India for the Ridge Road Property for which an amount of Rs.44.63 lakhs is included in
Inventory as per Note no. 4 and further no provision for diminution in value, if any is considered as
the matter is sub-judice.
26. Segment Reporting:
As the company operates in only one business the disclosure requirements under Accounting
Standard 17 - ‘’Segment Reporting” is not applicable.
27. As per Indian Accounting Standard 24 “Related Party Disclosures” , the disclosure of Related
Parties and transactions with them are given below:
A. List of related parties and nature of relationship
I. Key Management personnel and Relatives:
a. Mr. Nitin S Kedia (Director)
b. Mr. Vijay Kumar Khowala (Director & Chief Financial Officer)
c. Mr. Ravi Vimal Nevatia (Independent Director) (Resigned w.e.f 5th April, 2023)
d. Mrs. Barkharani Harsh Nevatia (Independent Director) (Resigned w.e.f 5th April,
2023)
e. Ms. Jayprakash Preethi (Independent Director)
f. Mr. Rajkumar Mawatwal (Independent Director)
g. Mrs. Ashita A. Karodia (Company Secretary)
II. Enterprise over which Key Management Personnel are able to exercise significant
influence:
a. Nitin Castings Limited.
b. Rajshila Construction LLP
Note:
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- If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.
Fair value of financial assets and financial liabilities that are not measured at fair value (but
fair value disclosures are required)
The Management considers that the carrying amount of financial assets and financial liabilities
recognized in the financial statements approximate their fair values.
29. Financial Risk Management Framework
Risk Management
The Company’s objectives when managing capital are to safeguard their ability to continue as a
going concern, so that they can continue to provide returns for shareholders and benefits for other
stakeholders and maintain an optimal capital structure to reduce the cost of capital. For the purpose
of the Company’s capital management, capital includes issued equity capital, and all other equity
reserves attributable to the equity holders of the parent. The primary objective of the Company’s
capital management is to maximize the shareholders’ value. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants.
No changes were made in the objectives, policies or processes for managing capital during the
years ended March 31, 2024.
The Company manages financial risk relating to the operations through internal risk reports which
analyze exposure by degree and magnitude of risk. These risks include market risk, credit risk and
liquidity risk. The Company does not enter into or trade financial instruments including derivative
financial instruments for speculative purpose.
Credit Risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and
deposits with banks and other financial instruments. For banks and other financial institutions, only
high rated banks/ financial institutions are accepted. The balance with banks, loans given to related
parties, loan given to employees, security deposits are subject to low credit risk and the risk of
default is negligible or nil. Hence, no provision has been created for expected credit loss for credit
risk arising from these financial assets, The Company considers the probability of default upon
initial recognition of asset and whether there has been a significant increase in the credit risk on an
ongoing basis throughout each reporting period, To assess whether there is a significant increase
in credit risk the company compares the risk of a default occurring on the assets as at the reporting
date with the risk of default as at the date of initial recognition. It considers available reasonable
and supportive forward-looking information, for ex. External credit rating (to the extent available),
actual or expected significant adverse changes in business, financial or economic conditions that
are expected to cause a significant change to borrowers ability to meet its obligations.
The credit risk on investment in mutual funds is limited because the counter parties are reputed
banks or funds sponsored by reputed bank
Liquidity Risk Management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which
has established an appropriate liquidity risk management framework for the management of the
Company’s short term, medium term and long-term funding and liquidity management requirements.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.
34. Information regard to other matter specified in Schedule III of Companies Act, 2013 is either nil or not
applicable to the company for the year.
35. Events after reporting date
There have been no events after the reporting date that requires disclosure in these financial
statements.
36. Previous year figures have been regrouped/ rearranged where necessary to conform to current
year’s classification.
As per our Report of even date attached
For Jhunjhunwala Jain & Associates LLP For Kedia Construction Co. Limited
Chartered Accountants
Firm' Registration No : 113675W/W100361
(CA Priteesh Jitendra Jain) Vijay Kumar Khowala Nitin Kedia
Partner Wholetime Director & CFO Director
Membership No. 164931 DIN - 00377686 DIN: 00050749
Ashita Koradia
Place: Mumbai Company Secretary
Date : 17th May, 2024 MN: ACS-63680
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