2B.7) Provision for liabilities and charges, Contingent liabilities and Contingent Assets
The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.
Provisions represent liabilities to the Company for which the amount or timing is uncertain.
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal
course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment
or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the
financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected
that such contingencies will have a material effect on its financial position or profitability.
Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is probable.
2B.7) Earning Per Share
In arriving at the EPS, the Company’s net profit/ loss after tax before adjustment of Other comprehensive income, computed in terms of the Ind AS, is divided by
the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ‘Basic EPS’. There are no
potential equity shares in existence during the current and previous period therefore Basic & Diluted EPS are similar.
2B.10) Balance of Trade Receivable includes Nil (Previous Year Rs. Nil) which is neither overdue nor any provision has been made in the accounts as the
Management is hopeful of recovery.
2B.11) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMP and other related parties that are repayable on
demand or without specying any terms or period of repayment.
2B.12) There are no Scheme of Arrangements approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013 during the year
2B.13) There are no Scheme of Arrangements approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013 during the year
2B.14) The Compant do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 during of the years.
2B.15) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.
2B.16) The Company did not have any transactions with Companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies
Act, 1956 considering the information available with the company.
2B.17)The Company has not been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institution on the basis of
security of current assets at any point of time during the year.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale.
C. Financial Risk Management
C.i. Risk management framework
A wide range ofrisks may affect the Company’s business and operational or financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk.
The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the
company’s operational and financial performance.
C.ii. 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 trade and other
receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current
economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their
respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms
in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in the credit risk on an on-going basis through each reporting period. To
assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on assets as at the reporting date with the risk of default as at the date of initial recognition. It
considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written offwhen there is a no reasonable expectations ofrecovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written
off, the Company continues to engage in enforcement activity to attempt to recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity
operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
Financial Assets are considered to be of good quality and there is no significant increase in credit risk
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances as stated in Note No. 09. The cash and cash equivalents are held with bank with good credit ratings and financial institution
counterparties with good market standing.
C.iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management ofthe Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk
by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
C.iv. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate
risk and other price risk.
C.iv.a Currency risk
The Company is not exposed to any currency risk on account of its operating and financing activities. The functional currency ofthe Company is Indian Rupee. Our exposure are mainly denominated in INR's
Only. The Company’s business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years
presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.
C.iv.b 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 is exposed to interest rate risk through the
impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.
As per our report of even date
FOR R SONI & COMPANY For and on behalf of the Board of Directors of Svaraj Trading and Agencies Limited
Chartered Accountants
FRN: 130349W Sd/- Sd/-
Harendra Gupta Shankar Das Vairagi
Sd/- Managing Director Director
Rajesh Soni DIN: 05335662 DIN: 01869965
Partner
M.No. : 133240 Sd/- Sd/-
UDIN: 24133240BKAVGI9944 Rajesh Jivanlal Purohit Poonam Tewani
Place: MUMBAI Chief Financial Officer Company Secretary
Date: 30th May, 2024_PAN : AHFPP2116A_M.No.: A51510
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