2.12 Provisions
Provisions are recognised when the Company has a
present obligation (iegai or constructive) as a resuit of a
past event, it is probabie that the Company will be
required to settie the obiigation, and a reiiabie estimate
can be made of the amount of the obiigation.
The amount recognised as a provision is the best estimate
of the consideration required to settie the present
obiigation at the end ofthe reporting period, taking into
account the risks and uncertainties surrounding the
obiigation. When a provision is measured using the cash
flows estimated to settie the present obiigation, its
carrying amount is the present vaiue of those cash flows
(when the effect ofthe time vaiue of money is materiai).
When some or all of the economic benefits required to
settie a provision are expected to be recovered from a
third party, a receivabie is recognised as an asset if it is
virtuaiiy certain that reimbursement will be received and
the amount ofthe receivabie can be measured reliably.
2.13 Contingent liabilities
Contingent liabilities are disclosed in notes when there is a
possible obligation that arises from past events and whose
existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control ofthe entity.
2.14 Financial instruments
Other financial assets and financial liabilities
Other financial assets and financial liabilities are
recognised when Company becomes a party to the
contractual provisions of the instruments.
Initial recognition and measurement:
Other financial assets and financial 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 of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in
statement of profit and loss.
Subsequent measurement
Financial assets at amortised cost
Financial assets are subsequently measured at amortised
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 contractual terms of financial
asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal
amount outstanding.
Financial assets at fair value through other
comprehensive income
Financial assets are measured at fair value through other
comprehensive income if these financial assets are held
within business whose objective is achieved by both
collecting contractual cash flows on specified dates that
are solely payments of principal and interest on the
principal amount outstanding and selling financial assets.
Financial assets at fair value through profit or
loss
Financial assets are measured at fair value through profit or
loss unless it measured at amortised cost or fair value
through other comprehensive income on initial
recognition. The transaction cost directly attributable to
the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognised in
the statement of profit and loss.
Financial liabilities
Financial liabilities are measured at amortised cost using
effective interest rate 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.
Equity instruments
An equity instrument is a contract that evidences residual
interest in the assets of the company after deducting all of
its liabilities. Equity instruments recognised by the
Company are recognised at the proceeds received net off
direct issue cost.
2.15 Segment
egments have been identified taking into account the
nature of products, the differing risks and returns, the
organizational structure and the internal reporting
system. Operating segments are defined as components
of an enterprise for which discrete financial information is
available that is evaluated regularly by the chief operating
decision maker (CODM) in deciding how to allocate
resources and assessing performance. The Company's
CODM is the Managing Director. The Company is mainly
engaged in the business of audio, video and automation
(together know as "AV and Automation"). Considering the
nature of business and financial reporting of the Company,
the Company has only one segment viz: AV and
Automation and the business operations of the Company
are only in India. Accordingly, disclosure under Ind AS 108
"Operating Segements" is not applicable to the Company.
2.16 Earnings per share
Basic earnings per share are computed by dividing
statement of profit and loss attributable to equity
shareholders of the company by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the net
profit after tax by the weighted average number of equity
shares considered for deriving basic EPS and also
weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued
at a later date. Dilutive potential equity shares are
determined independently for each period presented.
2.17 Statement of Cash flows
Cash flows are reported using the indirect method,
whereby profit / (loss) before tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing
activities of the Group are segregated based on the
available information.
2.18 Operating cycle
Based on the nature of products / activities of the
Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents, the
Company has determined its operating cycle as 12 months
for the purpose of classification of its assets and liabilities
as current and non-current.
(a) AH property, plant and equipment are owned by the Company unless otherwise stated.
(b) None of the above assets of the Company have been provided as security requiring any charges or satisfaction to be registered with the
Registrar of Companies, other than those disclosed in these financial statements.
(c) None of the above assets of the Company have been subject to any adjustment towards revaluation during the above mentioned reporting
periods.
(d) There are no proceeding initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988(45 of 1988) and rules made thereunder.
The management assessed that the carrying amounts of financial assets and financial liabilities recognised in the financial statements at
amortised cost will reasonably approximate their fair values.
38.02 Fair value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or
unobservable and consist of the following three levels:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2-Inputs other than quoted prices included within 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 assets or liabilities that are not based on observable market data (unobservable inputs).
The Company does not have any financial assets and financial liabilities which are held at fair values as at above reported periods.
38.03 Financial risk management objectives
The Company is exposed to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's principal financial liabilities
comprise loans and borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the
Company's operations. The Company's principal financial assets include investments, loans, trade and other receivables, cash and short¬
term deposits that derive directly from its operations. The below notes presents information about the Company's exposure to each of the
above risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of
capital. Further quantitative disclosures are included throughout these financial statements.
38.04 Risk management framework
"The Company's activities makes it susceptible to various risks. The Company has taken adequate measures to address such concerns by
developing adequate systems and practices. The Company's overall risk management program focuses on the unpredictability of markets
and seeks to manage the impact of these risks on the Company's financial performance. The Board of Directors has overall responsibility
for the establishment and oversight of the Company's risk management framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect
changes in market conditions and the Company's activities. The Company, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and
obligations."
38.5 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the
Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return. The Company is exposed to interest rate risk arising
mainly from debt. The Company is exposed to interest rate risk because the fair value of fixed rate borrowings and the cash flows
associated with floating rate borrowings will fluctuate with changes in interest rates. The Company is also exposed to foreign currency risk
on certain transactions that are denominated in a currency other than the company's functional currency; hence exposures to exchange
rate fluctuations arise. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates.
38.6 Credit Risk
The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company's exposure to
credit risk primarily relates to trade receivables. The Company monitors and limits its exposure to credit risk on a continuous basis. The
Company's credit risk associated with trade receivable is primarily related to customers not able to settle their obligation as agreed upon.
To manage this, the Company periodically reviews the financial reliability of its customers, taking into account their financial condition,
current economic trends and analysis of historical bad debts and ageing of trade receivables.
(a) Trade receivables
Trade receivables represent the most significant exposure to credit risk and is managed by the Company through policies, procedures and controls
relating to customer credit risk management. Outstanding trade receivables are monitored at regular intervals. Impairment analysis is performed at
each reporting date on individual customer basis.
The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, Financial Instruments which permits
the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision
matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been
incorporated into the determination of expected credit losses. The Company has taken dealer deposits which are considered as collateral and these
are considered in determination of expected credit losses, where applicable.
38.07 Liquidity risk
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 short term and long term cash flows, and by matching the maturity
profiles of financial assets and liabilities.
Liquidity analysis for non-derivative liabilities
The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay. The table include repayment of principal amounts. The contractual maturity is based on the earliest
date on which the Company may be required to pay.
(i) Loans and advances in the nature of loan granted to promoters, directors, KMPsand related parties: Nil
(H) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender.
(Hi) The 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 (a) 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
(iv) 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 whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(v) The Company does not have any 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
Tax Act, 1961).
(vi) The Company did not have any material transactions with companies struck-off under Section 248 of the Companies Act, 2013 or section
during the financial years 31st March 2025 and 2024.
(vii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year 2024-25 and 2023-24.
(viii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies ('ROC') beyond the statutory
period,
(ix) There is no Indian Subsidiary Companies, hence disclosure as prescribed under Clause (87) of Section 2 of the Companies Act 2013 read with
Companies (Restrictions on number of Layers) Rules, 2017 is not applicable
See accompanying notes to the financial statements ( Note 1-40)
As per our report of even dated attached n,-
for MKUK & Associates For and on behalf of the Board
Chartered Accountants
Firm's Registration No: 050113S
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