i) Figures in brackets represents cash outflow from respective activities.
ii) The above Cash Flow Statement has been prepared under the "Indirect Method” as set out in Indian Accounting Standard - 7 cn Cash Flow Statement notified under the Companies (Accounting Standard) Rules, 2006.
iii) Previous year figures have been regrouped/rearranged whereever found necessary to make them comparable with those of the current year.
The accompanying notes are an integral part of the Standalone financial statements.
Pursuant to the enactment of the Companies Act 2013, the company has applied the estimated useful life as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated/ amortised over the revised/ remaining useful lives.
NOTE 10. 4
The Company has not issued any securities convertible into equity / preference shares.
NOTE 10.5
During any of the last five years from the period ended 31st March 2025.
a. ) No shares were allotted as fully paid up pursuant to contract(s) without payment being received in cash.
b. ) No shares were allotted as fully paid up by way of bonus shares.
c. ) No shares were bought back.
NOTE 10.6
Each holder of equity shares is entitled to one vote per share.
20.1 Contingent Liabilities and Commitments
In Continuation of the disclosure made in the financial statements of the financial year 2024-2025 dated 07/20/2024 the standoff between New Owners and Management continues hence the new management estimates the unknown liabilities of the Company not recorded in the Books from Investors, Government Agencies and third parties at 50 crores.
B. A lien of 2.33 crores has been marked on ICICI Bank Account by GST departement for demand raised for FY 2018-19 and 2019-20
20.2 Due to continuation standoff between New Owners and management and the Old Owners and management, the new owners and management is not in a position to state whether any amount payable to Micro, Small and Medium Enterprises is overdue or not and whether there are any cases of delays in payments to Micro, Small and Medium Enterprises or of interest payments due to delays in such payments or not. Due reasons described above they are still in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprise Development
20.7 In Continuation of the disclosures made in Financial Statements of the Financial Year 2023-2024 made by Previous Auditor there is no update on the standoff between New Owners and management and the old owners and management continues. Hence the New Owners and Management are still unable to themselves comment or provide verifiable evidence on the reliability of assets, liability and results of Financial Operations. As on the date of our report the New management is still in the process of seeking clarity on the Financial position and operation of the company from the previous management and alternate means.
The Fair Value of the Financial Assets and Liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. The following methods and assumptions were used to estimate the fair values :
1. The company has disclosed financial instruments such as Trade Receivables, Cash and Cash Equivalent , other bank balances, trade payables, other financials assets and liabilities at carrying value because their carrying amounts are reasonable approximation of the fair values due to their short-term nature.
2. Financial Instruments with Fixed and Variable Interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables
20.9 Capital Management
Equity share capital and other equity are considered for the purpose of Company’s Capital Management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the company is based on management’s judgement of its strategic and day to day need with a focus on total equity so as to maintain investor, creditors and market confidence.
The management and Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
20.10 Financial Risk Management objectives and policies
The Company’s principal financial liabilities, comprise of Trade Payables. The main purpose of these financial liabilities is to finance the company’s operations. The Company’s principal financial assets includes investments, loans, trade and other receivables, cash and cash equivalents and other bank balances that are derived directly from its operation.
The Company’s Financial risk management is an integral part of how to plan and execute its business strategies. The company is exposed to market risk, credit risk and liquidity risk.
The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the company are accountable to the Board of Directors and Audit Committee
The process provides assurance to the company’s senior management that the company’s financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.
The management reviews and agrees policies for managing each of these risk which summarized as below :
(a) 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 Prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risks and commodity price risk. Financial instruments affected by market risks include borrowings, security deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2025. The analyses 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. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2025
(i) Inherent Rate Risk
Interest Rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Company’s financial liabilities comprises of trade and other payables; however these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation.
(b) Credit Risk
Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Credit Risk from balances with banks and financial institutions is managed by the company’s finance department in accordance with the Company’s policy. Investments of Surplus Funds are made in bank deposits, bonds, debentures and mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party’s potential failure to make payments.
The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company.
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks (d)Liquidity Risk
Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its Cash and Liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short term bank deposits, short term investments and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the company’s
20.11 Previous year figures have been regrouped/ reclassified whatever it considered necessary
21 OTHER STATUTORY INFORMATION
i. The company has not revalued its Property, Plant and Equipment during the year. Further Details of Land dislcosed in the Financial is not available to us.
ii. The company has not granted Loans or Advances in the nature of Loans to Promoters, directors, KMPs and the related parties.
iii. The Company have capital work-in-progress and the same is disclosed in notes of accounts. Further details of Same is not available to us.
iv. The Company Doesn't have any Intangible Asset under Development during the Year.
v. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.
vi. The Company does not have any transactions with companies struck off. Details same is not available on records
vii. The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
viii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
ix. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
x. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
xi. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority. Details has not been avaibale on records with Current Management
xii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Interemediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsover by or on behalf of the company (Ultimate Beneficiaries ) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
xiii. The 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 :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsover by or on behalf of the Funding Party (Ultimate Beneficiaries ) or
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
xiv. The Company has not undertaken any such transaction which is 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 T ax Act, 1961.
xv. The company is not covered under Section 135(Corporate Social Responsibility) of the companies act, 2013.
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