3.11 Provisions
A provision is recognized when the Company has a present
obligation as a result of past event and it is probable that
an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects current market assessments of the time
value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.
Provisions are not discounted to their present value and
are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates
are reviewed at each reporting date and adjusted to reflect
the current best estimates.
3.12 Contingent Liability
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed on
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognized because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably.
The Company does not recognize a contingent liability
but discloses its existence in the financial statements.
3.13 Contingent Asset
A contingent asset is a possible asset that arises from past
events and whose existence will be confirmed only on
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company. The Company does not recognize a contingent
asset but discloses its existence in the financial statements.
3.14 Foreign Currency
a Initial recognition
Foreign currency transactions are recorded in the
functional currency, by applying to the foreign
currency amount the exchange rate between the
functional currency and the foreign currency at the
date of the transaction.
b Conversion
Foreign currency monetary items are retranslated
using the exchange rate prevailing at the reporting
date. Non-monetary items, which are measured in
terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at
the date of the transaction.
c Exchange difference
All exchange differences are recognized as income or
as expenses in the year in which they arise.
3.15 Cash and cash equivalent
Cash and cash equivalents for the purposes of cash flow
statement comprise cash at bank (including demand
deposits) and in hand and short-term, highly liquid
investments with original maturities of three months or
less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in
value and bank overdrafts. Bank overdraft is shown within
cash and cash equivalents.
3.16 Earnings per share
Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
3.17 Segment Reporting
An operating segment is component of the Company
that engages in the business activity from which the
Company earns revenues and incurs expenses, for which
discrete financial information is available and whose
operating results are regularly reviewed by the chief
operating decision maker, in deciding about resources to
be allocated to the segment and assess its performance.
The Company's chief operating decision maker is the
Managing Director.
Assets and liabilities that are directly attributable or
allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as
un-allocable.
Revenue and expenses directly attributable to segments
are reported under each reportable segment. All
other expenses which are not attributable or allocable
to segments have been disclosed as un-allocable
expenses.
The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of the
Company as a whole.
3.18 Cash Flow Statement
Cash flows are reported using indirect method whereby
profit for the period is adjusted for the effects of the
transactions of non-cash nature, any deferrals or accruals
of past or future operating cash receipts and payments
and items of income or expenses associated with investing
and financing cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.
3.19 Exceptional items
Exceptional items include income or expenses that are
considered to be part of ordinary activities, however, are
of such significance and nature that separate disclosure
enables the user of the financial statements to understand
the impact in a more meaningful manner. Exceptional
items are identified by virtue of either their size or nature
so as to facilitate comparison with prior periods and to
assess underlying trends in the financial performance of
the Company.
3.20 Events after reporting date
Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted
within the financial statements. Otherwise, events after
the Balance Sheet date of material size or nature are
only disclosed.
4 Recent accounting pronouncements:
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has
determined that it does not have any significant impact
in its financial statements.
d Rights, preferences and restrictions :
i The Company has only one class of equity shares referred to as equity shares having a par value of ' 10. Each holder
of equity share is entitled to one vote per share.
ii Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting.
iii In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential
amounts exist currently. The distribution will be in proportion to the number of equity shares held by the
shareholders.
Nature and purpose of reserves
a Capital reserve
The Company recognises capital reserves on cancellation of partly paid up own equity shares.
b Securities premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions
of section 52 of the Companies Act, 2013.
c General reserve
The general reserve is a free reserve which is used from time to time to transfer profits from retained earnings for
appropriation purposes.
d Retained Earnings
Retained Earnings are the profits that the Company has earned net of amount distributed as dividend and including
adjustments on account of transition to IND AS.
e Equity Instrument through Other Comprehensive Income
The Company has elected to recognise changes in the fair value of investments in equity shares of the Company, wherein
KMP having control, in other comprehensive income. These changes are accumulated through Other Comprehensive reserve
within the equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities
are derecognised.
28.4 The trust is responsible for the governance of the plan.
28.5 Risk to the Plan
Following are the risk to which the plan exposes the entity :
A Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the
Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary
growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then
the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are
vested as at the resignation date.
B Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be
the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the
future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant
changes in the discount rate during the inter-valuation period.
C Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign / retire from the Company there can be strain on the cash flows.
D Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One
actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money.
An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed
to fluctuations in the yields as at the valuation date.
E Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation
/ regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher
benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same
will have to be recognized immediately in the year when any such amendment is effective.
35.2 The Fair value of current financial assets and current trade payables measured at amortized cost, are considered to be the
same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.
35.3 The carrying amount of non - current financial assets and non - current financial liabilities measured at amortized cost in
the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the
carrying amounts would be significantly different from the values that would eventually be received or settled. Hence, fair
value hierarchy is not given for the same.
35.4 There are no transfer between level 1, level 2 and level 3 during the year.
35.5 Valuation technique and observable inputs used to determine fair value in level 2
The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will
issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
The fair value of investment in investment property are based on valuation report.
35.6 The fair value of investment in equity shares of Applewoods Estate private Limited is based on cost approach. Fair value of
net assets used as unobservable input to determine the fair value. 1% change in the unobservable input used in fair valuation
has insignificant impact.
36 Financial Risk Management
The Company's activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The Company's
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Board of Directors has established a risk management policy 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 systems are reviewed periodically to reflect changes in market conditions and the Company's activities. The
Board of Directors oversee compliance with the Company's risk management policies and procedures, and reviews the risk
management framework.
A Market risk
The 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 currency risk, interest risk and other price risk.
i Foreign Currency Risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rate. The Company is exposed to foreign currency risk due to import of materials. The
Company measures risk through sensitivity analysis. As on March 31, 2025 no material outstanding amount is payable
for purchase of imported material.
ii Other Price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices (other than those arising from interest rate risk or currency risk). The Company is exposed to price risk
mainly because of investments in mutual funds and equity share classified as fair value through profit and loss. The
Company measures risk through sensitivity analysis. The Company's risk management policy is to mitigate the risk by
investments in diversified mutual funds.
C Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.
Credit risk arises primarily from financial assets such as trade receivables, investments in mutual funds,equity share, cash and
cash equivalent and other balances with banks.
In respect of trade receivables, credit risk is being managed by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. All trade receivables are also reviewed and assessed for default on a regular basis. The concentration of
credit risk is limited due to the fact that the customer base is large. There is no customer representing more that 10% of total
balance of trade receivables.
Credit risk arising from investment in mutual funds,equity share, cash and cash equivalent and other balances with bank is
limited as the counterparties are banks and recognised financial institution with high credit ratings.
The maximum exposure to the credit risk at the reporting date from trade receivables amounting to '4563.45 Lakhs as on
March 31, 2025 and ' 4738.9 Lakhs as on March 31, 2024.
42 In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the Consolidated
financial statements.
43 ADDITIONAL REGULATORY INFORMATION DISCLOSURES
43.1 Loans and advances granted to specified person:
The Company has not given any loans and advances in nature of loan to promoters, directors, KMPs and related parties.
43.2 Relationship with struck off companies:
The Company does not have any transaction and balance outstanding with struck off companies.
43.3 Wilful Defaulter
The Company is not declared as wilful defaulter by any bank or financial institution or other lender.
43.4 Utilisation of borrowed funds
The Company has not taken any borrowings from Banks / Financial Institutions during the period.
43.5 Registration of charges or satisfaction with Registrar of Companies (ROC)
During the year, no charge or satisfaction is to be registered with ROC beyond statutory period.
43.6 Details of Benami Property held
The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder, hence no proceedings initiated or pending against the Company under the said Act and Rules.
43.7 Utilisation of borrowed funds, share premium and other funds
The Company has not given any advance or loan or invested funds from borrowed funds or share premium or any other
sources with the understanding that intermediary would directly or indirectly lend or invest in other person or equity
identified in any manner whatsoever by or on behalf of the Company as ultimate beneficiaries or provide any guarantee or
security or the like to on behalf of ultimate beneficiaries.
The Company has not received any fund from any person or entity with the understanding that the Company would directly
or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiary) or provided any guarantee or security or the like on behalf of the ultimate beneficiary.
43.8 Compliance with number of layers of companies
In respect of Investment in subsidiary, the Company has complied with the number of layers prescribed under clause (87) of
section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
44 ADDITIONAL DISCLOSURES
44.1 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
44.2 Undisclosed Income
There is no transaction, which has not been recorded in books of accounts, that has been surrendered or disclosed as income
during the year in tax assessments under the Income Tax Act, 1961.
Material Accounting Policies and Notes to Standalone Financial Statements
As per our report of even date attached. For and on behalf of the Board,
For, Manubhai & Shah LLP FALGUNBHAI C. PATEL PARTHIV F. PATEL
Chartered Accountants (DIN: 00050174) (DIN: 00050211)
ICAI Firm Registration No. : 106041W/W100136 Chairman & Managing Director Managing Director
K.C. PATEL SANJAY KUMAR TANDON
Partner Chief Financial Officer
Membership No. 030083
Place : Ahmedabad Place : Ahmedabad
Date : May 29, 2025 Date : May 29, 2025
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