Trade receivables of ^16,43,049 pertain to the business prior to takeover of the Company. An allowance of ^3,31,190 has been created against these balances, and the net amount of ^13,11,859 is considered recoverable. Management is pursuing recovery; in case of non-recovery, the balances may be written off in subsequent periods.
On current year debtors, the Company has applied its policy of providing for ECL at 0.01% of outstanding receivables, amounting to ^5,146, which has been recognized in the Statement of Profit and Loss.
Terms / Rights attached to Equity shares:
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Nature and Purpose of Reserves
i. General Reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required.
ii. ) Capital Reserve
The Companies Act, 2013 requires the company to create capital reserve based on statutory requirement. This reserve is not available for capitalisation/declaration of dividend/ share buy-back.
iii. ) Forfieted Shares
The Amount received in shares forfieted.
Note 23: Regrouping / Reclassification
Previous year's figures have been regrouped & rearranged, wherever necessary to correspond with the current year's classification. Note 24: Segment Reporting
Company is engaged in the business of Trading of various items and incidental activities thereto which, in the context of Ind AS 108 on Operating Segments, constitutes a single reportable segment.
Fair Value of Financial Assets measured at amortised cost:
i. The Carrying amounts of Trade and Other Receivables and Cash and Cash equivalents are cosndered to be the same as their fair values, due to their short term nature. The Carrying amounts of loans are considered to be close to their fair values.
ii. Financials Liabilities measured at amortised cost: The Carrying amount of Trade and Other Payables are considered to be the same as their fair values due to their short term nature.
Note 24 : Financial Risk Management
The Company's activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance, the Company's risk management is carried out by a corporate treasury and corporate finance department under policies approved by the board of directors and top management. Company's treasury identifies, evaluates and mitigates financial risks in close cooperation with the Company's operating units. The board provides guidance for overall risk management, as well as policies covering specific areas. The table below gives the summarised view of the financial risk managed by the Company :
A. Credit Risk
Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered. There are no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive looking forward 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 counterparty's ability to meet its obligations
iv. Significant changes in the value of the collateral supporting the obligation or in the quality of the third party guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or 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.
B. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements and maintaining debt financing plans.
Financing arrangements
The Company had access to bank overdraft facilities. These facilities may be drawn at any time and may be terminated by the bank without notice.
C. 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. Since the Exposure to interest rate risk
The Company's deposits and Investments are all at fixed rate and carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because a change in market interest rates.
Note 27: Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. Management monitors the return on capital as well as the debt equity ratio and make necessary adjustments in the capital structure for the development of the business. The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day - to - day needs. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
Gearing Ratio- There is no Debts in the company as on 30.09.2025and 31.03.2025 .Thus ,Gearing Ratio is Nil as on 30.09.2025 and 31.03.2025
Note 28: Contingent Liability
There are no contingent liabilities in the company
Note 29 :
There is no availability of information about the amount dues to small/micro undertaking, we are unable to comment that the interest if any is due to such undertaking or not.
Note 30:
Balances are relied upon as per books of accounts wherever the confirmations from debtors /creditors /Loans /Advances are not available
Note 31:
As certified by the Management there is no obligation in respect of gratuity and leave encashment during the year Note 32:
Previous year figures have been regrouped and rearranged wherever necessary to confirm with the current year presentation.
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