Level l: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments(including bonds) which are traded in the stock exchanged is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2 :Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the counter derivatives) is determined using valuation techniques which maximize 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 as observable, the insturment is included in level 2.
Level 3 : If one or more of the significant inputs is not based on observable data, the insturment is included in level 3. This is the case for unlisted equity securities, contigent consideration and indemnification assets.
(iii) As per Ind AS 107 "Financial InstrumentiDiselosure", fair value disclosures are not required when the carrying amounts reasonably approximate the fair value. Accordingly fair value disclosures have not been made for the following Financial instruments:-
1. Trade receivables
2. Cash and cash Equivalent
3. Loans
4. Borrowings
5. Trade paybles
6. Capital creditors
7. Other paybles
Note 37 : Financial risk management
The company's few portion of activities are expose to variety of financial risks i.e. credit risk and liquidity risk.The company's financial instruments (excluding receivables from related parties) are influenced mainly by the individual characteristics of each customer.The company's exposure to credit risk is concentration of risk from the top few customers and the demographics of the customers.
(A) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is prmarily trade receivables from customers other than goverment entities.These Trade receivables are typically unsecured and are derived from revenue earned from domestic and foreign customers. Credit risk is managed through credit approvals, establishing credit limits and continously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expexcted creidt loss model to assess impairment loss or gain the company uses a matrix to compute the expected credit loss allowance for trade receivable.
(B) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the
underlying businesses, the company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company's liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set by the company. These limits vary by locations to take into account the liquidity of the market in which the entity opeartes. In addition, the company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Note 38 : Capital mangement
(a) Risk management
The company's objectives when managing capital are to:
-safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
-maintain an optiamal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return on capital to shareholders or issue new shares.The company monitors capital using gearing ratio, which is net debt divided by total Equity. Net debt comprises of long term and shortterm borrowings less cash and bank balances. Equity includes equity share capital and reserves that are managed as capital. The gearing at the end of reporting period was as follows:
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MOTE - no
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i.
ii.
iii.
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CONTINGENT I JAB 1LITIES
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31st M arch 20 25
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31st March 2024
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Guarantees given by Company's Bankers on behalf of the Company.
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-
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Claims against the Company not acknowledged as debts:
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a) Sales Tax
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b) Custom Duty
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cl ESI
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964
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964
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Corporate Guarantees given by Company
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-
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-
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However as per management perception, the above liabilities will not devolve upon the company in future.
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NOTE-da
Segement Reporting As per Ind AS 108 "Operating Segments "
Based on the policy set out under Significant Accounting Policy, the company follows "management Approach " for the purpose of deciding operating segments .The operating results of company as whole is regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated and to assess its performance, Accordingly, the company has decided to consider company as a whole as one operating segments.
The Company Secretary has not been considered as a related party as she is not having tire authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly.
NOTE - aa Micro, Small and Medium Enterprises (MSME) Dues Disclosure
There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for a period of more than 45 days as at the balance sheet date. The above information and that given under Current liabilities regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.
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