Provisions
General
Provisions are recognised 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.
When the Company expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted at a current pre-tax rate
that reflects the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
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.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of
the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
(a) Debt instruments at amortised cost
(b) Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through
profit or loss (FVTPL)
(c) Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Debt instruments at amortised cost
A ‘debt instrument' is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets 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 amortised cost using
the effective interest rate (EIR) method. Amortised 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
Debt instruments, derivatives, equity instruments and mutual fund investments at fair value through
profit or loss (FVTPL)
All derivatives and mutual fund investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at FVTPL. Equity instruments included within
the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit
& Loss.
Equity instruments measured at fair value through other comprehensive income (FVTOCI)
For all equity instruments other than the ones classified as at FVTPL, the Company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value.
The Company makes such election on an instrument-by-instrument basis. The classification is made
on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts
from OCI to Profit &Loss, even on sale of investment. However, the Company may transfer the
cumulative gain or loss within equity
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the balance sheet) when the rights to receive
cash flows from the asset have expired.
Impairment of financial assets
"The Company measures the expected credit loss associated with its assets based on historical
trend, industry practices and the business environment in which the entity operates or any other
appropriate basis. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit
or loss, loans and borrowings, financial guarantee contract payables, or derivative instruments.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term.
Financial liabilities designated upon initial recognition at fair value through profit or loss are
designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk
are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognised in the statement of profit or loss. The Company has not designated any
financial liability as at fair value through profit and loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the EIR method.
Amortised 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 amortisation is included as finance costs in the
statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Cash and Cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.
Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.
(c) The Company has only one class of equity shares having a par value of Rs10/- per share. Each
holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to
receive dividends as declared from time to time. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of
liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
(d) The authorized share capital has been increased from Rs.50 Lakhs to Rs.10 Crore in the AGM held
on 28th September 2024
(e) Shareholders holding more than 5 % of the equity shares in the Company :
Note 27:
Capital Risk Management
The Company aims to manages its capital efficiently so as to safeguard its ability to continue as a going
concern and to optimise returns to our shareholders.
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. We consider the amount of capital in
proportion to risk and manage the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets. 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.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as
to maintain investor, creditors and market confidence and to sustain future development and growth of its
business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.
Note 28:
Financial Risk Management
Financial risk management objectives and policies
The Company's principal financial liablities comprises of Borrowings & trade and other payables. The
main purpose of these financial liablities is to finance the company's activities.The Company's principal
financial assets include investment ,receivables,and cash and cash equivalents that derive directly from
its activities.
A. Market risk
Market risk comprises of three types of risk : interest rate risk, currency risk and other price risk,such
as commodity price fluctuation.Financial instruments affected by market risk include loans and
borrowings.
B. Credit risk
Credit risk Is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract,leading to a financial loss.The credit risk comprises of two types of risk: Customer
credit risk and Credit risk from balances with banks and financial institutions.
*The financial ratios for the year ended March 31, 2025, are not directly comparable with those of the
previous year, as the Company, during the year, added an additional business objective relating to the
trading, manufacturing, making, buying, selling, importing, exporting, and dealing in ornaments and
jewellery of all kinds, and commenced operations in the said line of business.
Additional Regulatory Information
1. The company has no Immovable Properties as on March 31,2025 whose Title Deeds are not held in
the name of the company and no immovable properties which are jointly held with others.
2. The company does not have any Investment Property as on 31st March 2025.
3. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to
whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the
Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable to the Company.
4. The Company does not have any intangible assets during the years ended 31st March 2025 and 31st
March 2024.
5. The Company does not have Capital Work In Progress (CWIP) therefore no CWIP completion
schedule shall be required to disclose.
6. The Company has no Intangible Assets under development as on 31st March 2025 and 31st March
2024.
7. No proceedings have been initiated or pending against the company for holding any benami property
under the Benami Transaction (Prohibition )Act 1988 (45 of 1988) and rules made there under.
8. The Company has no Borrowings from banks or finanacial institutions on the basis of security of
current assets , during the year ended 31st March 2025.
9. The Company is not declared as a wilful defaulter by any bank or financial institution or other lender.
10. The Company has no transactions with the companies struck off under 248 of Companies Act 2013 ,
or section 560 of Companies Act 1956.
11. The Company has no charges or satisfaction yet to be registered with ROC beyond the statutory
period.
12. The Company has no subsidiary. so, clause (87)of section 2 of the act read with Companies
(Restriction on number of layers )Rules , 2017 ia not applicable
13. The Company has not entered into any Arrangements in terms of section 230 to 237 of the
Companies Act, 2013.
14. (A) The Company has not directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries, , including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise).
(B) The Company has not directly or indirectly received any funds from any person (s)or entity (ies) ,
including foreign entities (funding party) or provide any guarante ,security other like on behalf of
the ultimate Beneficiaries.
15. There is no transactions recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the Tax Assessments under the Income Tax Act, 1961(Such as, search
or Survey or any other relevent provisions of the Income Tax Act,1961), unless there is immunity for
disclosure under any scheme. Also, there is no such previously unrecorded income and related
assets have been properly recorded in the books of account during the year.
16. Company is not covered under the prescribed limits of Section 135 of the Companies Act .
17. The Company has not traded or invested in Crypto Currency or virtual Currency during the year
ended 31st March 2025.
The accompanying notes are an integral part of the audited financial statements
As per our report of even date attached For and on behalf of the Board of Directors
For Sagar & Associates
Chartered Accountants
Firm ICAI Reg No : 003510S Sd/- Sd/-
Naveen Kumar Vanama Sudhakar Vanama
Sd/- Managing Director Director
CA A Manikanta Rayudu DIN: 09243947 DIN: 09702707
Partner
M. No: 243439 Sd/- Sd/-
UDIN: 25243439BMIJKQ6703 B. Kiran Kumar P. Vimala
Company Secretary Chief Financial Officer
Place : Hyderabad
Date : 20-05-2025
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