j) Provisions
A provision is recognized when an enterprise has a present obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in
respect of which a reliable estimate can be made. Provisions are not discounted to its present
value and are determined based on best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
k) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period.
30. During the current year the Company experienced good recovery in the business with
improvement in financial performance and liquidity position. The Management has secured
cash reserve to enable the Company to meet its obligations as they fall due and for its
operational need. The Group has assessed future projections and based on estimates,
expects to recover the carrying amount of these assets. Considering various mitigating
factors, the management does not see any risks in the ability to continue as a going
concern and meeting its liabilities as and when payable. Accordingly, the financial
statements have been prepared on going concern basis. The Company will closely monitor
any material changes to future economic conditions to assess any possible impact on the
Company.
31. The Company has invested 100 (Rs. In Thousand) in equity capital of its wholly owned
domestic subsidiary - Sanghvi Beauty and Salons Private Ltd and had also granted
unsecured loan aggregating to (Rs. In Thousand) 51,379.37/-. In addition to this, the
subsidiary company has been incurring losses and its net worth as on March 25, is negative
(Rs. In Thousand) 41,757.27/- The Management has considered that erosion in net worth is
temporary and expects improvements in operations after the conditions return to normal
32. The Company has invested 97.50 (Rs. In Thousand) in the equity share capital of its
subsidiary - Sanghvi Fitness Private Limited and given unsecured wloan of (Rs. In
Thousand) 11,030.21/- The subsidiary company has been incurring losses for past few years
and its net worth as on March 25, is negative (Rs. In Thousand) 6,211.80/-. The Management
has considered that erosion in net worth is temporary.
33. The company has given the advances to its subsidiaries to incur operating expenses as
per normal trade practice. Such advances are interest free and not prejudicial to the
interest of the company. Accordingly, these advances are not considered as loans.
35. Previous year's figures are rearranged/ regrouped wherever necessary.
As per our attached report on even date
For B K Khare and Co. For and on behalf of Board of Directors
Chartered Accountants Sanghvi Brands Limited.
Firm Registration Number - 105102W (Formerly Known as SANGHVI BRANDS
PRIVATE LIMITED)
Sd/- Sd/- Sd/- Sd/-
Amit Mahadik Kruti H. Shah Darpan N Sanghvi Narendra R Sanghvi
Partner Company Secretary Director Director
M.No. 125657 DIN: 02912102 DIN: 02912085
Place: Pune Place: Pune Place: Pune Place: Pune
Date: 27 May, 2025 Date: 27 May, 2025 Date: 27 May, 2025 Date: 27 May, 2025
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