2.16 Provisions, Contingent Liabilities and Contingent Assets
(i) Provision is recognized in respect of obligations where, based on
the evidence available, their existence at the Balance Sheet date is
considered probable.
(ii) Provision is recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably
estimated.
(iii) Provisions are not recognised for future operating losses.
(iv) Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future
events not wholly within the control of the Company.
(v) A contingent asset is not recognized in the financial statements.
(vi) Provisions and contingent liabilities are reviewed at each balance
sheet date.
2.17 Segment Reporting
Primary Segment
Based on the guiding principles given in the Ind AS-108 “Segment
Reporting” issued by ICAI, the Company’s segments are running
of amusement parks and trading in earthing & lightning protection
systems.
Revenue and expenses have been accounted for on the basis of their
relationship to the operating activities of the respective segment.
Segment Identification
Business segments have been identified on the basis of the nature
of products/ services, the risk return profile of individual business,
the organizational structure and the internal reporting system of the
company.
The operating segments are reported after taken into consideration of
aggregation criteria and quantitative threshold as mentioned in Para 12
and 13 of Ind AS 108.
2.18 Earnings Per Share
Basic earnings per share is computed by dividing the profit/ (loss) after
tax (including the post tax effect of extra ordinary items, if any) by the
weighted average number of equity shares outstanding during the
year.
Diluted earnings per share is computed by dividing the profit/ (loss)
after tax (including the post tax effect of extra ordinary items, if any) by
the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of
equity shares which could be issued on the conversion of all dilutive
potential equity shares.
2.19 Cash and Cash Equivalents
Cash and cash equivalents in the Balance sheet comprise cash on
hand, cheques on hand, balance with banks on current accounts and
short term, highly liquid investments with an original maturity of three
months or less and which carry insignificant risk of changes in value.
For the purpose of the Cash Flow Statement, Cash and cash equivalents
consist of Cash and cash equivalents, as defined above and net of
outstanding book overdrafts as they are considered an integral part of
the Company’s cash management
2.20 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payment and item of income or expenses associated with
investing or financing flows. The cash flows operating, investing and
financing activities of the company are segregated.
2.21 Investment Property:
An investment property shall be measured initially at its cost. Transaction
costs shall be included in the initial measurement.
The cost of a purchased investment property comprises its purchase
price and any directly attributable expenditure. Directly attributable
expenditure includes, for example, professional fees for legal services,
property transfer taxes and other transaction costs
Cost model after initial recognition, an entity shall measure all of its
investment properties in accordance with Ind AS 16’s requirements
for cost model, other than those that meet the criteria to be classified
as held for sale (or are included in a disposal group that is classified
as held for sale) in accordance with Ind AS 105, Non-current Assets
Held for Sale and Discontinued Operations. Investment properties that
meet the criteria to be classified as held for sale (or are included in a
disposal group that is classified as held for sale) shall be measured in
accordance with Ind AS 105.
When measuring the fair value of investment property in accordance
with Ind AS 113, an entity shall ensure that the fair value reflects, among
other things, rental income from current leases and other assumptions
that market participants would use when pricing investment property
under current market conditions.
This Standard requires all entities to measure the fair value of
investment property, for the purpose of disclosure even though they
are required to follow the cost model. An entity is encouraged, but not
required, to measure the fair value of investment property on the basis
of a valuation by an independent valuer who holds a recognized and
relevant professional qualification and has recent experience in the
location and category of the investment property being value
2.22 Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active
market and cannot be measured based on quoted prices in active
markets is determined using valuation techniques including the net
assets value (NAV) model. The Group uses its judgment to select a
variety of method / methods and make assumptions that are mainly
based on market conditions existing at the end of each financial year.
The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgment is required
in establishing fair values. Judgments include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions
about these factors could affect the reported fair value of financial
instruments.
2.23 Insurance claims and liquidated damages
Insurance claims are accounted as and when admitted/settled.
Subsequent changes in value, if any, are provided for.
2.24 Ind AS 116: Leases
Effective April 01,2019, the Company has adopted lnd AS 116 “Leases”,
applied to all lease contracts existing on April 01, 2019 using the
modified retrospective method. Accordingly, the Company recognizes
right-of-use asset at the date of initial application. The right-of-use asset
is measure equal to the lease liability, adjusted by the amount of any
prepaid or accrued lease payments relating to that lease recognized in
the balance sheet immediately before the date of initial application.
The Company evaluates if an arrangement qualifies to be a lease as
per the requirements of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses significant judgement in
assessing the lease term (including anticipated renewals) and the
applicable discount rate.
The Company determines the lease term as the non-cancellable period
of a lease, together with both periods covered by an option to extend the
lease if the Company is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if the Company is
reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease, it considers all relevant
facts and circumstances that create an economic incentive for the
Company to exercise the option to extend the lease, or not to exercise
the option to terminate the lease. The Company revises the lease term
if there is a change in the non-cancellable period of a lease.
The discount rate is generally based on the incremental borrowing rate
specific to the lease being evaluated or for a portfolio of leases with
similar characteristics
A lease that transfers substantially all the risks and rewards incidental to
ownership to the lessee is classified as a finance lease. All other leases
are classified as operating leases.
Company as a lessee
The Company accounts for each lease component within the contract
as a lease separately from non-lease components of the contract and
allocates the consideration in the contract to each lease component on
the basis of the relative stand-alone price of the lease component and
the aggregate stand-alone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use
the underlying asset for the lease term at the lease commencement date.
The cost of the right-of-use asset measured at inception shall comprise
of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement date
less any lease incentives received, plus any initial direct costs incurred
and an estimate of costs to be incurred by the lessee in dismantling
and removing the underlying asset or restoring the underlying asset
or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any remeasurement of the
lease liability. The right-of-use assets is depreciated using the straight¬
line method from the commencement date over the shorter of lease term
or useful life of right-of-use asset. The estimated useful lives of right-of-
use assets are determined on the same basis as those of property,
plant and equipment. Right-of-use assets are tested for impairment
whenever there is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the statement of
profit and loss.
The Company measures the lease liability at the present value of the
lease payments that are not paid at the commencement date of the
lease. The lease payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that rate cannot
be readily determined, the Company uses incremental borrowing rate.
For leases with reasonably similar characteristics, the Company, on
a lease by lease basis, may adopt either the incremental borrowing
rate specific to the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include fixed payments,
variable lease payments, residual value guarantees, exercise price of a
purchase option where the Company is reasonably certain to exercise
that option and payments of penalties for terminating the lease, if the
lease term reflects the lessee exercising an option to terminate the
lease. The lease liability is subsequently remeasured by increasing the
carrying amount to reflect interest on the lease liability, reducing the
carrying amount to reflect the lease payments made and remeasuring
the carrying amount to reflect any reassessment or lease modifications
or to reflect revised in-substance fixed lease payments. The company
recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement
of profit and loss depending upon the nature of modification. Where
the carrying amount of the right-of-use asset is reduced to zero and
there is a further reduction in the measurement of the lease liability, the
Company recognises any remaining amount of the re-measurement in
statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116
to short-term leases of all assets that have a lease term of 12 months or
less and leases for which the underlying asset is of low value. The lease
payments associated with these leases are recognized as an expense
on a straight-line basis over the lease term.
Company as a lessor
At the inception of the lease the Company classifies each of its
leases as either an operating lease or a finance lease. The Company
recognises lease payments received under operating leases as
income on a straight- line basis over the lease term. In case of a
finance lease, finance income is recognised over the lease term based
on a pattern reflecting a constant periodic rate of return on the lessor’s
net investment in the lease. When the Company is an intermediate
lessor it accounts for its interests in the head lease and the sub-lease
separately.
It assesses the lease classification of a sub-lease with reference to the
right-of-use asset arising from the head lease, not with reference to
the underlying asset. If a head lease is a short-term lease to which the
Company applies the exemption described above, then it classifies the
sub-lease as an operating lease.
33.01 Financial risk management objectives and policies
The Company’s principal financial liabilities include Trade payable and other financial liabilities. The main purpose of these financial liabilities is to
finance the Company’s operations. The Company’s principal financial assets include Trade receivables, Cash and cash equivalents and other financial
assets that derive directly from its operations. The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management
oversees the management of these risks and the appropriate financial risk governance framework for the Company. The senior management provides
assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company’s policies and risk objectives.
The Board of Directors reviewed policies for managing each of these risks, which are summarized below:
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three types of risk: interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk.
(i) Interest rate risk
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 relates primarily to the Company’s borrowings obligations with floating interest
rates but the financial implication is not material.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The
Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency denominated payables on
account of import and receivables of export value but the financial implication is not material.
(iii) Regulatory risk
There is no regulatory risk in the business operations of the company.
(iv) Commodity price risk
Prices of commodity are subject to fluctuation. The earthing material price is subject to some fluctuation but it is not a regular feature. Its prices are
more or less stable. The Company mitigates this risk by properly planning of stock in hand and sale orders.
(v) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company has a follow up policy in place with parties, thereby the credit default risk is significantly mitigated.
The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making
these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as
forward looking estimates at the end of each balance sheet date. Financial assets are written off when there is no reasonable expectation of recovery,
however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognized in the Statement of Profit
and Loss.
(vi) Trade receivables
Trade receivables are non-interest bearing and are generally on credit terms of 30 to 90 days. An impairment analysis is performed at each balance
sheet date on an individual basis for major clients.
(vii) Liquidity Risk
Liquidity risk refers to the probability of loss arising from a situation where there will not be enough cash and/or cash equivalents to meet the needs
of depositors and borrowers, sale of illiquid assets will yield less than their fair value and illiquid assets will not be sold at the desired time due to
lack of buyers. The primary objective of liquidity management is to provide for sufficient cash and cash equivalents at all times and any place in
the world to enable us to meet our payment obligations. The company is maintaining cash credit limit to a reasonable level to meet out the current
obligation.
33.12 Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable
to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders
or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s
policy is to keep the gearing ratio between 3% and 10%. The Company includes within net debt, interest bearing loans and borrowings, trade and
other payables, less cash and short term deposits.
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market
prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are
included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) 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. This is the case for unlisted equity
securities and investment in private equity funds, real estate funds.
ii. Valuation techniques used to determine fair value
Specific valuation techniques used to value financial instruments include :
• Quoted equity investments - Quoted closing price on stock exchange
• Mutual fund - net asset value of the scheme
• Alternative investment funds - net asset value of the scheme
• Unquoted equity investments - NAV on the last audited financials available of the companies.
• Private equity investment fund - NAV of the audited financials of the funds.
• Real estate fund - net asset value, based on the independent valuation report or financial statements of the company income approach or market approach
based on the independent valuation report.
iii. Financial instruments not measured at fair value
Financial assets not measured at fair value includes cash and cash equivalents, trade receivables, loans and other financial assets. These are financial assets
whose carrying amounts approximate fair value, due to their short-term nature. Additionally, financial liabilities such as trade payables and other financial
liabilities are not measured at FVTPL, whose carrying amounts approximate fair value, because of their short-term nature. Fair value measurements using
significant unobservable inputs (level 3)
33.19 Additional Regulatory disclosures.
i) During the financial years ended March 31,2024, and March 31,2023, the company has not revalued its property, plant and Equipment.
ii) During the financial years ended March 31,2024, and March 31,2023, the company has not revalued its intangible assets.
iii) The Company has been sanctioned working capital limits from Banks/financial institutions on the basis of security of Company’s own fixed deposits.
Therefore, during the financial years ending March 31,2024, and March 31,2023, the company is not required to file the Quarterly return/ statements
of current assets with banks and financial institutions.
iv) The company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with companies (Restriction on number
of layers) rule 2017.
v) During the financial years ended March 31,2024, and March 31,2023, no Scheme of Arrangements related to the company has been approved by the
Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
vi) Utilisation of Borrowed funds and share premium:
a The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to any
other person or entity, including foreign entity (Intermediaries), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall:
i. 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
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity
(Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall:
i) 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
ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 and rules made thereunder, as at 31 March 2024 and 31 March 2023.
viii) The Company has not been declared willful defaulter by any bank or financial Institution or other lender, in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India, during the year ended 31 March 2024 and 31 March 2023.
ix) There is no creation or satisfaction of charges which are pending to be filed with ROC as at 31 March 2024 and 31 March 2023.
x) The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2024, and March 31,
2023.
xi) The Company does not have any transactions 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). No
previously unrecorded income and related assets have been recorded in the books of account during the year.
xii) The auditors have expressed an unmodified opinion on the standalone financial statements of the Company for the financial years ended March 31,
2024, and March 31,2023.
xiii) There are no items of income and expenditure of exceptional nature for the financial years ended March 31,2024, and March 31,2023.
xiv) Corporate Social Responsibility
The Ministry of Corporate Affairs has notified Section 135 of the Companies Act, 2013 on Corporate Social Responsibility with effect from 1st April 2014.
the provisions of the said section in not applicable the Company during the financial year 20022-23 & 2023-24.
33.20 Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with current year’s classification/disclosure.
33.21 The amounts reflected as “0 & -” in the financial information are values with less than rupees five hundred.
As per our report of even date
For Agiwal & Associates For & on behalf of the Board
Chartered Accountants
FRN: 000181N
P. C. Agiwal T. B. Gupta Anupam Mehrotra
Partner Managing Director Whole Time Director
Membership No. 080475 DIN: 00106181 DIN: 08608345
R. C. Pandey S. C. Jain
Place: New Delhi Company Secretary Chief Financial Officer
Date: 24/05/2024 PAN: AJRPP6072H PAN: AANPJ7826N
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