1.8. Provisions and contingent liabilities
Provisions are recognized when the Company
has a present obligation (legal or constructive) as
a result of a past event, 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. These are reviewed at each year end
and reflect the best current estimate.
Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either not
probable that an outflow of resources will be
required to settle the obligation or a reliable
estimate of the amount cannot be made.
Contingent liabilities are not provided for and
are disclosed by way of notes.
Provisions, contingent liabilities and commitments
are reviewed at each Balance Sheet date.
1.9. Fair Value Measurement
The Company measures financial instruments
such as investments at fair value at each Balance
Sheet date.
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value
measurement is based on the presumption that
the transaction to sell the asset or transfer the
liability takes place either:
♦ In the principal market for the asset or liability, or
♦ In the absence of a principal market, in the most
advantageous market for the asset or liability
The principal or the most advantageous market
must be accessible by the Company.
The fair value of an asset or a liability is
measured using the assumptions that market
participants would use when pricing the asset or
liability, assuming that market participants act
in their economic best interest.
A fair value measurement of a non-financial
asset takes into account a market participant's
ability to generate economic benefits by using the
asset in its highest and best use or by selling it to
another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximizing the use of relevant
observable inputs and minimizing the use of
unobservable inputs.
1.10 Financial Instruments
A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.
a) Financials Assets
Initial recognition and measurement
All Financial Assets are initially recognized at
transaction price when the Company becomes
party to contractual obligations. The transaction
price includes transaction costs unless the asset
is being fair valued through the Statement of
Profit and Loss.
Subsequent measurement
Management determines the classification of an
asset at initial recognition depending on the
purpose for which the assets were acquired. The
subsequent measurement of financial assets
depends on such classification.
Financial Assets are classified as those measured at :
a) Amortised cost,
b) At fair value through Other Comprehensive
Income,
c) At fair value through Profit or Loss
Financial Assets at Amortized Cost
A 'Financial Asset' is measured at the amortized
cost if both the following conditions are met:
a) The asset is held within a business model
whose objective is to hold asset for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.
After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest rate (EIR) method.
Amortized cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
EIR. The EIR amortization is included in finance
income in the Statement of Profit and Loss.
Financial Assets at fair value through Profit or
Loss
FVTPL is a residual category for Financial
Assets. Any Financial Assets, which does not
meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at
FVTPL.
In addition, the Company may elect to designate
a Financial Asset, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is allowed only if doing
so reduces or eliminates a measurement or
recognition inconsistency (referred to as
'accounting mismatch').
The classification depends the business model
of the entity for managing financial assets and
the contractual terms of the cash flows.
Equity Instruments
All equity investments in scope of Ind AS 109 are
measured at fair value. The Management of the
Company has elected to present fair value gains
and losses on such equity investments through
Profit or Loss.
Changes in the fair value of financial assets at
fair value through profit or loss are recognized
in the Statement of Profit and Loss.
De-recognition of Financial Assets
A Financial Asset (or, where applicable, a part of
financial asset or part of a group of similar
financial assets) is primarily derecognized
when:
♦ The rights to receive cash flows from the
asset have expired, or
♦ The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay to a
third party under a 'pass-through'
arrangement~ and either
(a) the Company has transferred substantially
all the risks and rewards of the asset, or
(b) the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset, but has transferred
control of the asset.
Impairment of Financial Assets
The Company assesses at each reporting date
whether a financial asset (or a group of financial
assets) such as investments, trade receivables,
advances and security deposits held at amortised
cost and financial assets that are measured at
fair value through other comprehensive income
are tested for impairment based on evidence or
information that is available without undue cost
or effort. Expected credit losses are assessed and
loss allowances recognised if the credit quality
of the financial asset has deteriorated
significantly since initial recognition.
Reclassification of Financial assets
The Company determines classification of
financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification of financial assets like equity
instruments and financial liabilities is made. For
financial assets which are debt instruments, a
reclassification is made only if there is a change
in the business model for managing those assets.
Changes to the business model are expected to
be infrequent. The Company's senior
management determines change in the business
model as a result of external or internal changes
which are significant to the Company's
operations. Such changes are evident to external
parties. A change in the business model occurs
when the Company either begins or ceases to
perform an activity that is significant to its
operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first
day of the immediately next reporting period
following the change in business model. The
Company does not restate any previously
recognized gains, losses (including impairment
gains or losses) or interest.
b) Financial Liabilities
Initial recognition and measurements
All financial liabilities are initially recognised at
fair value of the respective contractual obligations.
Subsequent Measurement
Financial liabilities are subsequently measured
at amortised cost. Any discount or premium on
redemption /settlement is recognised in the
Statement of Profit and Loss as finance cost over
the life of the liability using the effective interest
method and adjusted to the liability figure
disclosed in the Balance Sheet.
De-recognition of Financial Liabilities
Financial liabilities are derecognised when the
liability is extinguished, that is, when the
contractual obligation is discharged, cancelled
and on expiry. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification is
treated as the recognition of the original liability
and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the Statement of Profit & Loss.
1.10. Trade and Other Payables:
These amounts represent liabilities for goods and
services provided to the Company prior to the
end of financial year which are unpaid. The
amounts are unsecured and usually paid within
30 days of recognition. Trade and other payables
are presented as current liabilities unless
payment is not due within 12 months after the
reporting period.
1.11. 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.
Interest income
Interest income is accounted on accrual basis at
the contractual rates.
1.12. Income Tax
Current income tax
The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting year. The
Management periodically evaluates positions
taken in tax returns with respect to situations in
which applicable tax regulation is subject to
interpretation. It establishes provisions where
appropriate on the basis of amounts expected to
be paid to the tax authorities.
Deferred Income Tax
Deferred income tax is provided using the
Balance Sheet approach, which focuses on
temporary differences between the carrying
amount of an asset or liability in the Balance
Sheet and its tax base. The tax effect is calculated
on the accumulated timing differences at the end
of an accounting year based on prevailing
enacted or substantially enacted regulations.
Deferred income tax assets are recognized only if
there is reasonable certainty that they will be
realized and are reviewed for the appropriateness
of their respective carrying values at each Balance
Sheet date.
1.13. Employee benefits
Short-term Employee Benefits:
All employee benefits payable within 12 months
of service such as salaries, wages, bonus, ex-
gratia, medical benefits etc. are recognised in the
year in which the employees render the related
service and are presented as current employee
benefit obligations within the Balance Sheet.
Termination benefits are recognised as an expense
as and when incurred.
Short-term leave encashment is provided at
undiscounted amount during the accounting
period based on service rendered by employees.
Any excess or short provision in respect of the
same is recognized in the Statement of Profit and
Loss in the subsequent years.
Defined Contribution Plan
Retirement benefit in the form of contribution to
fund is defined contribution plan. The Company
provides specific percentage of the payroll costs
as contribution payable to the fund and the same
is considered as expense. The Company does not
have employees exceeding 20. Hence, the
provisions of Employees Provident Fund and
Miscellaneous Provision Act, 1952 and Employees
State Insurance Act, 1948 are not applicable.
Defined Benefit Plan
The Company does not have employees exceeding
10. Hence, the provisions of Gratuity Act, 1972
are not applicable.
1.14. 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
period. Earnings considered in ascertaining the
EPS is the net profit for the period and any
attributable tax thereto for the period.
1.15. Rounding off Amounts
All amounts disclosed in the Financial Statements
and notes have been rounded off to the nearest
lakhs as per the requirement of Schedule III to the
Companies Act, 2013, unless otherwise stated.
1.16. Recent Ind AS pronouncements
The Ministry of Corporate Affairs has notified
Companies (Indian Accounting Standards)
Amendment Rules, 2023 dated 31st March 2023
to amend the following Ind AS which are effective
for annual periods beginning on or after 1st April
2023. The company has given effect to these
amendments during the year.
(i) Definition of Accounting Estimates -
Amendments to Ind AS 8
The amendments clarify the distinction
between changes in accounting estimates,
changes in accounting policies and the
correction of errors. It has also been clarified
how entities use measurement techniques
and inputs to develop accounting estimates.
The amendments had no impact on the
company's financial statements.
(ii) Disclosure of Accounting Policies -
Amendments to Ind AS 1
The amendments aim to help entities provide
accounting policy disclosures that are more
useful by replacing the requirement for
entities to disclose their 'significant'
accounting policies with a requirement to
disclose their 'material' accounting policies
and adding guidance on how entities apply
the concept of materiality in making decisions
about accounting policy disclosures.
The amendments have had an impact on the
Company's disclosures of accounting policies,
but not on the measurement, recognition or
fpiresentation of any items in the Company's
nancial statements.
(iii) Deferred Tax related to Assets and Liabilities
arising from a Single Transaction -
Amendments to Ind AS 12
The amendments narrow the scope of the
initial recognition exception under Ind AS 12,
so that it no longer applies to transactions
that give rise to equal taxable and deductible
temporary differences such as leases.
The amendments had no impact on the
company's financial statements.
Notes:
i) In accordance with the Ind AS 36 on 'Impairment of Assets, the Company has reassessed the carrying
amounts of its Property, plant and equipment and is of the view that no further impairment / reversal is
considered to be necessary in view of its expected realisable value.
ii) The Company has not revalued its Property, Plant and Equipment during the Financial Year 2023-24 and
2022-23.
iii) The Company does not have any immovable property, hence the disclosure requirements with respect to
title deed are not applicable.
Note 25 : Segment Information
Operating segments are defined as components of an enterprise for which discrete financial
information is available that is evaluated regularly by the Company, in deciding how to allocate
resources and assessing performance.
At present, the Company doesn't have any significant business activities. Hence, no separate
disclosure has been made for segment reporting as per IND AS 108 "Operating Segments"
Note 27 : Financial Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk.
This note explains the sources of risk which the entity is exposed to and how the entity manages the
risk and the impact of hedge accounting in the financial statements.
Note 28 : Deferred Tax
In the absence of virtual uncertainty of sufficient future taxable income, the Company has not
recognized deferred tax asset on unabsorbed depreciation and carry forward losses under the Income
Tax Laws.
Note 29 : Disclosure requirement under MSMED Act, 2006
As required to be disclosed under Micro, Small & Medium Enterprises Development Act, 2006 and to
the extent such parties are identified on the basis of information available with the Company, there are
no Micro enterprises or Small scale enterprises to whom the Company owes any due which are
outstanding for more than 45 days as at 31st March 2024.
Note 31 : In earlier years, the Company had advanced Inter Corporate Deposits ('ICD') to Williamson
Financial Services Limited ("the recipient Company"). Considering the financial position of the
recipient Company, the management had decided not to recognise interest income on the same. In the
previous financial year, without prejudice to any of the legal rights and remedies available to recover
the outstanding amounts, the Management decided to recognise full provision against the outstanding
amount. During the year the Company recovered Rs. 15 Lakhs against the said loan. Accordingly,
provision created in earlier years has been written back to this extent and the effect of the same has
been presented in "Other Income".
Note 32 : The Company has filed appeals before the Hon'ble Bombay High Court against disallowance of set¬
off of brought forward business losses, unabsorbed depreciation and business expenditure for the
Assessment Years 2007-08, 2009-10, 2010-11 and 2011-12. The outcomes of these appeals are still
pending, however, the tax liability for these years have been fully paid.
Note 34 : Other Disclosures
a) Trade Payables, Current Liabilities and Security Deposits are subject to confirmation and reconciliation
from respective parties and consequential reconciliations and adjustments arising therefrom, if any.
The management, however, does not expect any material deviation.
b) In the opinion of the Management, the value of realization of Current and Non-Current Assets in the ordinary
course of business would not be less than the amount at which they are stated in the Balance Sheet.
c) There are no significant subsequent events that would require adjustments or disclosures in the
Financial Statements as on the date of approval of the Financial Statements.
d) Details of Benami Property held
No proceedings have been initiated or are pending against the Company as at 31st March, 2024 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.
e) Disclosure in relation to undisclosed income
The Company does not have any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year ended 31st March, 2024 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).
f) Registration of Charges
The Company does not have any charges or satisfaction which is yet to be registered with the Registrar
of Companies beyond the statutory period.
g) Corporate Social Responsibility
The provisions of Section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility
are not applicable to the Company.
h) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended
31st March, 2024 and 31st March, 2023.
i) Relationship with Struck off Companies
During the year, the Company did not have any transactions with companies struck off u/s 248 of the
Companies Act, 2013 or u/s 560 of the Companies Act, 1956.
j) Utilisation of Borrowed Funds and Share Premium
During the year ended 31st March 2024, the Company has not advanced or loaned or invested funds
(either borrowed funds or share premium or any other sources or kinds of funds) to any other person (s)
or entity(ies).
During the year ended 31st March, 2024, the Company has not received any fund from any person(s) or
entity(ies), including foreign entities with the understanding (whether recorded in writing or otherwise)
that the company shall directly or indirectly lend or invest or provide any guarantee or security.
k) Previous Year figures have been rearranged/ regrouped wherever necessary to correspond with the
current year's classification/disclosures.
For and on behalf of the Board of
The Standard Batteries Limited
For V. Singhi & Associates (Naveen Taparia) (Pradip Bhar) (Gaurang S. Ajmera)
Chartered Accountants Partner Director Director
Firm Registration No. : 311017E Membership No. : 058433 DIN : 01039198 DIN : 00798218
Shamrao R. Landge Hiren U. Sanghavi
Place : Kolkata Chief Financial Officer Company Secretary
Date : 30th May, 2024 Membership No. : ACS5586
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