(h) Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability.
Product warranty expenses: The estimated liability for product warranties is recorded when products are sold. These estimates are
established using historical information on the nature, frequency and average cost of warranty claims and management estimates
regarding possible future incidences based on actions on product failures. The timing of outflows will vary as and when warranty claim
will arise, being typically up to four years.
(i) Foreign Currency
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency denominated
monetary assets and liabilities are re-measured into the functional currency at the exchange rate prevailing on the balance sheet date.
Exchange differences are recognized in the Statement of Profit and Loss except to the extent, exchange differences which are regarded
as an adjustment to interest costs on foreign currency borrowings, are capitalized as part of borrowing costs.
(j) Income Taxes
Income tax expense comprises current and deferred taxes. Income tax expense is recognized in the Statement of Profit and Loss except
when they relate to items that are recognized outside profit or loss (whether in other comprehensive income or directly in equity), in
which case tax is also recognized outside profit or loss. Current income taxes are determined based on respective taxable income of
taxable entity.
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values
of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Such
deferred tax assets and liabilities are computed for the taxable entity. Deferred tax assets are recognized to the extent that it is probable
that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry¬
forwards and unused tax credits could be utilized.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized
or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax
assets and liabilities on a net basis.
(k) Earnings Per Share
Basic earnings per share has been computed by dividing profit/loss for the year by the weighted average number of shares outstanding
during the year.
Partly paid up shares are included as fully paid equivalents according to the fraction paid up. Diluted earnings per share has been
computed using the weighted average number of shares and dilutive potential shares, except where the result would be anti-dilutive.
(l) Employee Benefits
i) Gratuity
Gratuity is a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days
salary payable for each completed year of service. Vesting occurs upon completion of five years of service. SITL have no obligation
towards gratuity.
ii) Provident Fund and ESI
In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund and
ESI, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage
of the covered employees' salary. The contributions, as specified under the law, are made to the provident fund and pension fund
set up. SITL have no obligation towards Provident Fund & ESI.
(m) Dividends
Any dividend declared or paid by the Company for any financial year is based on the profits available for distribution as reported
in the statutory financial statements of Space Incubatrics Technologies Limited (Standalone) prepared in accordance with Generally
Accepted Accounting Principles in India, or Indian GAAP or Ind AS. Indian law permits the declaration and payment of dividend
out of profits for the year or previous financial year(s) as stated in the statutory financial statements of Space Incubatrics Technologies
Limited (Standalone) prepared in accordance with Generally Accepted Accounting Principles in India, or Indian GAAP or Ind AS
after providing for depreciation in accordance with the provisions of Schedule II to the Companies Act. However, in the absence
of inadequacy of the said profits, it may declare dividend out of free reserves, subject to certain conditions as prescribed under the
Companies (Declaration and payment of Dividend) Rules, 2014. Accordingly, in certain years the net income reported in these financial
statements may not be fully distributable.
(n) Investments in Subsidiaries, Joint Ventures and Associates
Investments in Subsidiaries, Joint Ventures and Associates are measured at cost as per Ind AS 27 - Separate Financial Statements.
NOTE - 28 Additional Information to the financial statements
28.1 Confirmation of balances from some of parties appearing under the head current liabilities, sundry debtors, loans and advances are
awaited.
28.2 In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the
ordinary course of business and the provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
28.3 The Statutory Auditors of Sybly International FZE, a wholly owned subsidiary of Space Incubatrics Technologies Limited, have reported
that "A material uncertainty exists and that may cast significant doubt on the establishment ability to continue as a going concern"
28.4 Auditors of M/s Sybly Industries Limited have reported the material uncertainty of going concern. The company has outstanding loans
and advances of Rs. 5.46 Crore as on 31.03.2024 and the timely realisation of the same may be affected. However, No provision for
doubtful debt has been made in our books of accounts since in the opinion of the board of directors, it will realised in due course of time.
28.5 As per assessment made by the company, the foreign subsidiary namely M/s Sybly International FZE has turned into a loss investment
in the financial year 2022-23 and any amount including the Loan receivable from the subsidiary, is not recoverable. During the Financial
year 2022-23 the company has made a provision of Impairment Loss on the carrying amount of the Investment of Rs, 7.29 Lakhs and
Provision of Unrecoverable Loan Receivable of Rs. 5675.87 lakhs and write off provision of Currency Fluctuation Reserve of Rs. 2454.18
Lakh .
Note : During the financial year 2022-23 theres was a exceptional loss of Rs. 3228.98 Lakh so the ratios may not accurately reflect the true
state of the business and have become incomparable in the present context.
28.16 There is no proceeding initiated or pending under the Benami Transactions (Prohibition) Act, 1988 for the Benami Properties.
28.17 There are no working capital advances / loans from any bank or financial institution and company does not hold any inventory.
28.18 Company has not revalued its Property Plant and Equipments (PPE) and Capital Work in Progress (CWIP) during the year.
28.19 The company is not declared as a wilful defaulter by any bank or financial Institution.
28.20 The Company does not have any relationship with any struck off company.
28.21 There is no pending registration of charges or pending satisfaction of charge with Registrar of Companies (ROC) beyond statutory
limits.
28.22 The Company has not undertaken any Scheme of the arrangement during the year.
28.23 The Company has not borrowed any funds from Bank/NBFCs, and its share are issued at face value and therefore there is no share
premium.
28.24 The Company has not surrendered or disclosed any transaction, as "not" recorded in the accounts, as income in the tax assessment
during the year.
28.25 Company does not hold or transact in any Crypto Currency or Virtual Currency
28.26 There are no intangible assets under development in the company.
SIGNATURE TO NOTES 1 TO 28
For and on behalf of Board of Directors
Sd/- Sd/- Sd/-
(NISHANT MITTAL) (MAHESH CHAND MITTAL) (KHUSHBU SINGHAL)
Managing Director Director Company Secretary & CFO
(Din : 02766556) (DIN : 00284866) (Memb. No. A25992)
Flat No.603, Tower-2, Orange County, Flat No.603, OC-2, Orange County, Ahinsa
Ahinsa Khand-1, Near Aditya Cinemas, Khand-1, Indirapuram,
Indirapuram, Shipra Sun City, Ghaziabad - 201014 (U.P.)
Ghaziabad - 201014 (U.P.)
PLACE : Muradnagar As per our separate report of even date
DATE : 27th May, 2024 annexed.
For V. S. Gupta & Co.,
Chartered Accountants,
Sd/-
(CA. Hemant Kumar Gupta)
Partner.
Membership No. 071580
Firm Reg. No. 00724C
UDIN: 24071580BKETLP1710
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