(i) Fair Value Hierarchy
This section explains the judgements and estimates made in determining fair values of the financial instruments that are
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the company has classified financial
instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market ( for example traded bonds) is determined
using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable , the instrument is included in level 2
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
(iii) Fair value of financial assets and liabilities measured at amortized cost
As of March 31, 2025, March 31, 2024 the fair value of cash and bank balances, trade receivables, other current financial assets, trade
payables and other current financial liabilities approximate their carrying amount largely due to the short term nature of these
instruments.
For other financial assets(i.e. other non current financial assets and other non current financial liabilities) that are measured at
amortised cost, the carrying amounts approximate the fair value.
29 Financial risk management
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 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.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements.
a) Credit Risk
Credit risk is the risk that a counterparty fails to discharge its obligation to our Group. Our exposure to credit risk is influenced
mainly by cash and cash equivalents and trade receivables. We continuously monitor defaults of customers and other counterparties
and incorporate this information into its credit risk controls. However, majority of our total sales comprises of sales to Indian Railways
or PSUs, details of which are as under:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three type of risks: Currency risk, Interest rate risk and other price risk. Financial instruments affected
by market risk include loans, borrowings, term deposits, and investments.
Foreign Currency Risk
A significant portion of the payments are made by the Company towards consideration for acquiring rights to use intellectual
properties, reference designs and engineering services from abroad for development of its TCAS software and KAVACH equipments.
Such payments are denominated in foreign currency, mostly the Euro. Accordingly, we have currency exposures relating to forex
payments, other than in Indian Rupees, particularly the Euro. During the period ended March 2025 and March 2024, our net imports
of services amounted to ' 87.94 and ' 48.32 millions respectively, which constituted 78.43% and 62.65 % respectively, of the
aggregate of expenditure incurred on development of intangible assets.
We are exposed to risks in respect of price and availability of copper and PVC Compounds used for our manufacturing operations.
The prices of copper are linked to the international prices on the London Metal Exchange (LME) and the price of PVC Compounds
are directly linked the price of crude oil globally. As a result, our procurement cost and costs of goods sold tend to be impacted by the
movements of the LME and of crude oil benchmarks. Since the majority of our business is with government division or PSU, most of
the orders being executed by us contains price variation clause which may allow us to pass on changes in the cost of our primary raw
materials to our customers. However, we may not be able to do so immediately or fully, and so strong and rapid fluctuations in the
prices of these raw materials could affect our operating results.
c) Liquidity Risk
Liquidity risk is the risk that our Group will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash. Our 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. Our management monitors rolling forecasts of our liquidity position and cash and
cash equivalents on the basis of expected cash flows and the due dates for repayment of term loans. We are confident of managing
our financial obligation through available cash and bank balances, short term borrowings and liquidity management.
30 Capital Management
The Company's objective with respect to capital management is to ensure continuity of business while at the same time provide
reasonable returns to its various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference
to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done
through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings
less investments and cash and cash equivalents) to equity ratio is used to monitor capital.
5. The Company does not have any ongoing projects as at 31st March 2025
35 Dividend
The Company has not declares and pays dividends in during the period.
36 Employee benefits
(i) Defined benefit plan
a) Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. In case of death while in service, the gratuity is payable irrespective of vesting.
The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Group
makes contribution to recognised funds in India i.e. Life Insurance Corporation of India and Group Gratuity scheme.
Risk exposure:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to
various risks as follow -
A) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future
valuations will also increase the liability.
B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount
rate assumed at the last valuation date can impact the liability.
C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan's liability.
D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the
liabilities.
E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Plan's liability.
b) Compensated Leave Absences
The Company has provided for Acturial Liability for Earned Leave Liability of the Employees.
Risk exposure:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to
various risks as follow -
A) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future
valuations will also increase the liability.
B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount
rate assumed at the last valuation date can impact the liability.
C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan's liability.
D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the
liabilities.
E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Plan's liability.
37 LEASES
Where the Company is lessee
The Company has taken various assets on lease such as, plant & equipment, buildings, office premises, vehicles and computer
equipment. Generally, leases are renewed only on mutual consent and at a prevalent market price and sub-lease is restricted.
The Company has Adopted Ind AS 116 using the modified retrospective method of adoption. Consequently the company recorded
the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date
of transition and has measured right of use asset at an amount equal to lease liability adjusted for previously recognised prepaid or
accrued lease payments
42 Additonal Regulatory Information
42.1 Title deeds of immovable properties not held in the name of Company. Details of all the immovable properties (other than
properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose
deeds are not held in the name of the Company:
NIL
42.2 There are no investment in properties
42.3 The Company has not revalued its Property,Plant and Equipment during the year.
42.4 The Company has not revalued its intangible assets during the year.
42.5 The Company had not granted any Loans or advances to promoters, directors, KMPs and the related parties (as defined
underCompanies Act, 2013,) either severally or jointly with any other person
42.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of
Benami Transactions Act,1988 (Earliers titled as Benami transactions (Prohibitions) Act,1988
42.7 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the
books of accounts
42.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender
42.9 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under
section 530 of Companies Act,1956
42.10 No charges of satisfication are pending for registration with the Registrar of Companies (ROC)
42.11 With effect from April 01, 2023 the Ministry of Corporate Affairs (MCA) has made it mandatory for every company which
uses accounting software for maintaining its books of accounts to use only such accounting software which has a feature of
recording audit trail of each and every transaction, creating an edit log of each change made in books of accounts along with
the date of such changes were made and ensuring that the audit trail cannot be disabled.
The Company is using Accounting software for maintaining books of accounts for the FY 2024-25 which has a feature of
recording audit trail (edit log) facility and the same has been operated during the year for all relevant transactions recorded
in the software.
42.12 The Company have identified all the micro and small enterprises as per MSMED Act, 2006 and have made payments to them
generally within the time limit specified in Section 15 of the MSMED Act, 2006 except few cases. Out of the total Trade
Payables of Rs.104.85 Millions only Rs. 39.48 Millions is payable to Micro and small enterprises. Due to Voluminous transactions,
we are not able to calculate the amount of interest payable u/s 16 of MSMED Act hence, the same is not provided for in the
books of accounts. Consequently, said amount is not disclosed in notes to accounts as required by the section 22 of MSMED
Act, 2006. However there is no impact on taxable income as the Interest u/s 16 of MSMED Act, 2006 is not allowed as
deduction under Income Tax Act, 1961.
42.13 Company had issued 1,00,00,000 equity shares of Rs. 10/- each at premium of Rs. 280 per share total amounting Rs.
2,90,00,00,000/- have been received in the public issue account(out of which Rs. 18,03,15,699.23 expended as public issue
expenses) from proceeds of fresh equity shares. The utilisation of the Net proceeds is summarised as below:
44 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year
As per our Report of even date
For SANMARKS & ASSOCIATES For and on behalf of the Board of Directors of
CHARTERED ACCOUNTANTS QUADRANT FUTURE TEK LIMITED
(Santosh Kumar Agrawal) (Mohit Vohra) (Satish Gupta)
Partner Managing Director Chairman
FRN : 003343N, M.No. : 091127 (DIN 02534402) (DIN 06574539)
Place : Mohali (Amit Kumar Jain) (Pankaj)
Date : 24/05/2025 Chief Financial Officer Company Secretary
M.No. 53400
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