h) Provisions, Contingent Liability and Contingent Assets
Disputed liabilities and claims against the company including claims raised by fiscal authorities
(e.g. Sales Tax, Income Tax, Excise, GST etc.) pending in appeal / court for which no reliable
estimate can be made and or involves uncertainty of the outcome of the amount of the
obligation or which are remotely poised for crystallization are not provided for in accounts but
disclosed in notes to accounts. However, present obligation as a result of past event with
possibility of outflow of resources, when reliable estimation can be made of the amount of
obligation, is recognized in accounts in terms of discounted value, if the time value of money is
material using a current pre-tax rate that reflects the risk specific to the liability. No contingent
asset is recognized but disclosed by way of notes to accounts.
i) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured, regardless of when the payment is
being made. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties
collected on behalf of the Government such as Goods and Services Tax, etc.
Rendering of Services
Revenue from rendering of services is recognized as per the terms of the contract with
customers when related services are performed and when the outcome of the transactions
involving rendering of services can be estimated reliably.
Dividend Income
Dividend Income is accounted for when the right to receive the same is established, which is
generally when shareholders approve the dividend.
Interest Income
Interest Income on financial assets measured at amortised cost is recognised on a time-
proportion basis using the effective interest method.
Other Income
Other income is recognised when no significant uncertainty as to its determination or realisation
exists.
j) Cash Flows and Cash and Cash Equivalents
Statement of cash flows is prepared in accordance with the indirect method prescribed in the
IND AS 7. For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks, other
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 book overdrafts. However, Book overdrafts are shown within borrowings
in current liabilities in the balance sheet for the purpose of presentation
k) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• The profit attributable to owners of the Company
• By the weighted average number of equity shares outstanding during the financial
year, adjusted for bonus elements in equity shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic
earnings per share to take into account:
• The after 'income-tax' effect of interest and other financing costs associated with
dilutive potential equity shares, and
• The weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.
l) Segment Reporting
Based on "Management Approach" as defined in IND AS 108 - Operating Segments, the
Management evaluates the Company's performance and allocates the resources based on an
analysis of various performance indicators by business segments.
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.
m) Foreign Currency Transactions
In preparing the financial statements of the Company, transactions in foreign currencies, other
than the Company's functional currency are recognised at the rates of exchange prevailing at
the dates of the transactions. At the end of each reporting period, monetary assets and
liabilities denominated in foreign currencies are translated at the rate prevailing at that date.
Non-monetary items that are measured in terms of historical cost in a foreign currency, are not
retranslated.
Exchange differences on monetary items are recognised in the Statement of Profit and Loss in
the period in which these arise except for:
• exchange differences on foreign currency borrowings relating to assets under
construction for future productive use, which are included in the cost of those assets
when they are regarded as an adjustment to interest costs on those foreign currency
borrowings; and
• exchange differences on transactions entered into in order to hedge certain foreign
currency risks.
n) Events occurring after the balance sheet date
Assets and liabilities are adjusted for events occurring after the reporting period that provides
additional evidence to assist the estimation of amounts relating to conditions existing at the end
of the reporting period.
Dividends declared by the Company after the reporting period are not recognized as liability at
the end of the reporting period. Dividends declared after the reporting period but before the
issue of financial statements are not recognized as liability since no obligation exists at that
time. Such dividends are disclosed in the notes to the financial statements.
o) Financial Instruments
i. Recognition and initial measurement
All financial assets and financial liabilities are initially recognized when the Company
becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item
not at fair value through profit and loss (FVTPL), transaction costs that are directly
attributable to its acquisition or issue.
ii. Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at
• amortized cost;
• Fair Value through Other Comprehensive Income (FVOCI) - equity investment; or
• Fair Value Through Profit and Loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition, except if and
in the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:
• the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding.
On initial recognition of an equity investment that is not held for trading, the Company
may irrevocably elect to present subsequent changes in the investment's fair value in
OCI. (designated as FVOCI - equity investment). This election is made on an investment-
by-investment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described
above are measured at FVTPL. This includes all derivative financial assets. On initial
recognition, the Company may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if
doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.
Financial assets are not reclassified subsequent to their initial recognition, except if and
in the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortized cost if it meets both of the following
conditions and is not designated as at FVTPL:
• the asset is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest (SPPI) on the principal amount
outstanding.
On initial recognition of an equity investment that is not held for trading, the Company
may irrevocably elect to present subsequent changes in the investment's fair value in
OCI. (designated as FVOCI - equity investment). This election is made on an investment-
by-investment basis.
Investments in subsidiary company:
Investments in subsidiary company are carried at cost less accumulated impairment
losses, if any. Where an indication of impairment exists, the carrying amount of the
investment is assessed and written down immediately to its recoverable amount. On
disposal of investments in subsidiary company, the difference between net disposal
proceeds and the carrying amounts are recognised in the Standalone Statement of
Profit and Loss.
All financial assets not classified as measured at amortized cost or FVOCI as described
above are measured at FVTPL. This includes all derivative financial assets. On initial
recognition, the Company may irrevocably designate a financial asset that otherwise
meets the requirements to be measured at amortized cost or at FVOCI or at FVTPL if
doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model
for measurement and recognition of impairment loss on the following financial assets
and credit risk exposure:
• Debt instruments measured at amortised cost e.g., bank deposits
• Trade receivables
• Other financial assets not designated as FVTPL
For recognition of impairment loss on other financial assets and risk exposure, the
Company determines whether there has been a significant increase in the credit risk
since initial recognition. If credit risk has not increased significantly, 12- month ECL is
used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves
such that there is no longer a significant increase in credit risk since initial recognition,
then the entity reverts to recognising impairment loss allowance based on 12-month
ECL.
ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive
(i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected
credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12-month ECL is a portion of the lifetime ECL which results
from default events that are possible within 12 months after the reporting date.
The Company follows 'simplified approach' for recognition of impairment loss allowance
on Trade receivables (including lease receivables). The application of simplified
approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECL at each reporting date,
right from its initial recognition.
Financial liabilities
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial
liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or
it is designated as such on initial recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any interest expense, are recognized in
profit or loss. Other financial liabilities are subsequently measured at amortized cost
using the effective interest method. Interest expense and foreign exchange gains and
losses are recognized in profit or loss. Any gain or loss on de-recognition is also
recognized in profit or loss
De-recognition
Financial assets
The company de-recognizes a financial asset when the contractual rights to the cash
flows from the financial asset expire, or it transfers the rights to receive the contractual
cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the company neither
transfers nor retains substantially all of the risks and rewards of ownership and does not
retain control of the financial asset.
If the company enters into transactions whereby it transfers assets recognized on its
balance sheet, but retains either all or substantially all of the risks and rewards of the
transferred assets, the transferred assets are not derecognized.
Financial liabilities
The company de-recognizes a financial liability when its contractual obligations are
discharged or cancelled, or expire. The company also de-recognizes a financial liability
when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on the modified terms
is recognized at fair value. The difference between the carrying amount of the financial
liability extinguished and the new financial liability with modified terms is recognized in
profit or loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the
balance sheet when, and only when, the company currently has a legally enforceable
right to set off the amounts and it intends either to settle them on a net basis or to
realize the asset and settle the liability simultaneously.
p) Recent accounting pronouncements which are not yet effective (Standards issued but not yet
effective)
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards)
Amendment Rules, 2023 dated March 31, 2025 to amend the following Ind AS which are
effective from 01 April 2025., as below:
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.
During 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 lease back transactions, applicable
from April 1, 2024. The Company has assessed that there is no significant impact on its financial
statements,
On May 9, 2025, MCA notifies the amendments to Ind AS 21 Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning on or after April 1, 2025. The
Company is currently assessing the probable impact of these amendments on its financial
statements.
33 Financial risk management
The Company's activities expose it to a variety of financial risks, including credit risk, and liquidity risk. The Company's primary risk
management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk
management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same.
The Company's risk management is governed by policies and approved by the board of directors. The Company identifies,
evaluates and hedges financial risks in close co-operation with the Company's operating units. The Company has policies for
overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use
of non-derivative financial instruments.
The audit committee oversees how management monitors compliance with the company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit
committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.
I Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers. Credit risk is managed 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. The history of trade receivables shows a negligible provision for bad and
doubtful debts. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of
expected losses in respect of trade and other receivables and investments. The company has adopted simplified approach of ECL
model for impairment.
i) Trade Receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of
the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. The Company with various activities as mentioned above manages credit risk. An impairment analysis is
performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The
Company does not hold collateral as security.
ii) Financial assets that are neither past due nor impaired
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance
with the Company's assessment of credit risk about particular financial institution. None of the Company's cash equivalents,
including term deposits (i.e., certificates of deposit) with banks, were past due or impaired as at each balance sheet date.
Cash and cash equivalents
The company holds cash and cash equivalents of Rs. 38.31 at March 31, 2025 (March 31, 2024: Rs. 33.79 lakh) The cash and cash
equivalents are held with bank and cash on hand.
II Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The level of
liquidity risk is very low considering the fact that the company relies on operating cash flows and owned equity. Currently the
company has borrowed funds from bank mainly for day to day business needs (i.e. Cash Credit Facilities are being availed by the
company).
Further the Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring
the forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company manages
its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
III Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-
sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company
is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and commodity risk.
a) Interest Risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. In order to optimize the Company's position with regards to the interest income and interest expenses and to
manage the interest rate risk, treasury performs
a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial
instruments in it total portfolio.
With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion
of loans and borrowings and excluding loans on which interest rate swaps are taken.Interest rate risk is the risk that the fair value
or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure
to the risk of changes in market interest rates related primarily to the Company's short-term borrowings with floating interest
rates. Company's treasury department monitors the interest rate movement and manages the interest rate risk based on its
policies.
34 Due to Micro, Small and Medium Enterprise
Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED), certain disclosers are required to be made
relating to Micro, Small and Medium enterprises. On the basis of the information and records available with management,
outstanding dues to the Micro and Small enterprise as defined in the MSMED Act, 2006 are disclosed as below:
35 Capital Management:
The Company's capital management is intended to maximise the return to shareholders and benefits for other stakeholders for
meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the
capital structure i.e. the debt and equity balance.
The Company monitors the capital structure on the basis of net gearing ratio and maturity profile of the overall debt portfolio of
the Company.
41 The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
42 The Company do not have any transactions with companies struck off.
43 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
44 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
45 The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or
46 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
47 The Company have 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,
48 The company has not used accounting software for maintaining its books of accout which has a feature of
recording audit trail (edit log) facility and the same has not been operated throughout the year for all relevant
transactions recorded in the software. Additionally, the audit trail of prior year(s) has not been preserved by the
Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the
respective years.
49 Subsequent Events:
Subsequent to Balance Sheet Date, there are no events occurred which require disclosure or adjustments in the
standalone financial statements.
50 Approval of the Financial
The Standalone Financial Statements were approved for issue by the board of directors on May 30, 2025.
51 Previous year's figures have been regrouped/re-arranged/recasted, wherever necessary, so as to make them comparable
with current year's figures.
For, H S K & CO LLP For and on behalf of the Board of Directors
Chartered Accountants
FRN: 117014W/W100685 SD/- SD/-
Jignesh Shah Nehal Shah
SD/- Whole-time Director Director
CA. Sudhir S. Shah DIN:02112343 DIN: 07869702
Partner
Membership No. 115947 SD/
UDIN: 25115947BMKZNZ8973 Rima Dalal
Place : Ahmedabad Company Secretary
Date : May 30,2025 Place : Ahmedabad
Date : May 30,2025
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