1.10 Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to
settle the obligation, in respect of which a reliable estimate can be made. If the effect of time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage
of time is recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of
resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present
obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements, however they are disclosed where the inflow of economic benefits is probable. When the
realisation of income is virtually certain, then the related asset is no longer a contingent asset and is recognised as an asset.
1.11 Earning Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of
equity shares outstanding during the period.
1.12 Dividend
Provision is made for the amount of any dividend declared on or before the end of the reporting period but remaining undistributed at the end of the reporting
period, where the same has been appropriately authorised and is no longer at the discretion of the entity. The Unpaid Dividend for FY 2014-15 amounting to FIs.
1,60,214/- yet to be transferred to Investor's Grievances Protection Fund Account.
Nature & purpose of other equity and reserves :
a) Securities Premium
This reserve representsthe premium on issue of shares and can be utilized inaccordarvce with the provisions of the Companies Act, 2013.
b) General Reserve
The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act wherein certain percentage of profits were
required to be transferred to General Reserve before declaring dividends. As per Companies Act 2013, the requirement to transfer profits to General Reserve
is not mandatory. General Reserve is a free reserve available to the Company.
t) Retained Earnings
Retained Earnings represent accumulated earnings transferred to reserves overthe years. Dividend is paid on Equity Shares for FY 2023-24 in FY 2 024-2 5
2.31 Financial Risk Management
The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The
Company's senior management has the overall responsibility for establishing and governing the Company's risk management framework.
The Company has constituted a core Management Committee, which is responsible for developing and monitoring the Company's risk
management policies. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to
set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the
policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
A Liquidity Risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities.The Company's approach
in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024 and 31st
March, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis. The Company
regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any shortterm
surplus cash generated, over and above the amount required for working capital management and other operational requirements, is
retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly
marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to
B Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk; interest rate risk, currency risk and other price risk. Financial instruments affected by market risk
include loans and borrowings and deposits.
i) 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. This risk exist mainly on account of borrowings of the Company. However, all these borrowings are at fixed interest rate and
hence the exposure to change in interest rate is insignificant.
ii) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company is not exposed to significant foreign currency risk as at the respective reporting dates.
C Credit Risk
Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and other financial assets.
i) Trade Receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to
customer credit risk management. An impairment analysis is performed at each reporting date on an individual basis for major trade
receivables.
ii) Other Financial Assets
Credit risk from balances with banks and financial institutions is managed by the Company in accordance with the Company's policy.
D Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments
affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the
maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
2.32 Segment Reporting
The company operates in a single line of business i. e. Real Estate Project Advisory and Development and construction of Real Estate Projects
and also in a single geographic environment within India, Hence there is no reportable segment information with respect to provision of Ind
As 108 "Segment Reporting".
For Pravin Chandak & Associates For Zodiac Ventures Limited
Chartered Accountants
Sd/- Sd/- Sd/-
CA. Pravin Chandak limit R. Shah Sunita Shah
Patner (Managing Director) (Director)
Membership No.: 049391 (DIN-01580796) (DIN-03099290)
Firm Reg. No.: 116627W
Sd/- Sd/-
Place:- Mumbai VipulKhona Rustom Aspi Deboo
Date:- 30-May-2025_(CFO)_(Company Secretary)_
|