20 Provisions, Contingent Liabilities and Contingent Assets.
Provisions are recognised only when:
a) The Company has a present obligation (legal or Constructive) as a result of a past event;
b) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
c) A reliable estimate can be made of the amount of the obligation.
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is discounted to the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
a) A present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and
b) A present obligation arising from past events, when no reliable estimate is possible.
Accordingly, Contingent liability related to the Corporate Guarantee given to one of its Associate (Cadcord Technology Private Limited) has been disclosed in Note No.42.
Contingent assets are disclosed where an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.
21 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of:
a) Changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;
b) Non-cash items such as depreciation, provisions, and deferred taxes, and;
c) All other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.
22 Earnings Per Share
Basic and Diluted earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders and weighted average number of shares outstanding during the period.
There are no potential equity shares in the books, and therefore diluted earnings per share are same as basic earnings per share.
1 None of the employees were in receipt of or are entitled to receive remuneration aggregating to more than Rs.1,02,00,000/- for the year or more than Rs.8,50,000/- per month, if employed for part of the year.
2 Outstanding balances as at 31st March, 2024 of Current & Non-Current Assets and Liabilities including Trade Receivables and Trade Payables are subject to confirmation.
3 In the opinion of the Board of Directors, the Company is dealing in different varieties of IT Hardware & its peripherals, Alkaline Water Ionizers, GPS Tracking Units, Solar Power Supply System and Consumer Electronic Goods etc. Day to day Quantitative Stock Records have been maintained properly.
4 All the Directors have drawn remuneration for the Accounting Year 2023-24 aggregating to Rs. 98,76,912/-C Previous Year's Figures have been regrouped / reclassified wherever necessary
The company adheres to a disciplined Capital Management Framework in order to safeguard it's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits to other stakeholders.
The company strategically manages its funds by :-
(i) Maintaining Diversity of Sources of Financing and spreading the maturity across periods in order to minimise liquidity risk.
(ii) Analysing and managing its financial market risks like foreign exchange, interest rates and commodity prices, and minimise the impact or market volatility on earnings.
(iii) Analysing the changes in macro economic factors affecting business environment and re-organising its capital structure accordingly to adapt to the ever changing dynamics of business environment.
(iv) Leveraging Optimally in order to maximise shareholder returns.
Property Loan of Rs.4,00,00,000 (Sanction Amount) is secured by way of exclusive first charge created on the concerned Property.The Balance loan as on March 31, 2024 is repayable in 5 monthly repayment of Rs.7.41 Lakhs. Interest to be serviced as and when debited. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan.
Term Loan (Guaranteed Emergency Credit Line) of Rs 2,50,00,000 (Sanction Amount) is secured by way of hypothecation of Stocks and Book Debts. The Balance as on 31st March, 2024 is repayable in 3 equated monthly installments of Rs 7,91,500/- each. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan.
Term Loan (Guaranteed Emergency Credit Line) of Rs 2,50,00,000 (Sanction Amount) is secured by way of hypothecation of Stocks and Book Debts. The Balance as on 31st March, 2024 is repayable in 33 monthly installments of Rs 6,94,444/- each. Interest as per Repo Linked Lending Rate (RLLR) is applicable on the said loan
The company derives revenue primarily from sale of IT Hardware & its peripherals, Alkaline Water Ionizers, and other Consumer Electronic Goods. It also derives revenue from renting of Alkaline Water Ionizers.
Revenue is recognised upon transfer of control of promised products or services to the customers in an amount that reflects the consideration the company expects to be entitled to, in exchange for those products or services.
Revenue from fixed-price, fixed-time frame contracts, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognised as per the percentage of completion method. When there is uncertainty as to the measurement of ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.Maintenace revenue is recognized over the term of underlying maintenance agreement.
The Company accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on allocation of discounts/ incentives to each of the underlying performance obligations that corresponds to the progress by the customer towards earning the discount/ incentive. The company presents revenue net of Indirect Taxes.
The company's Board of Directors has overall responsibility for establishment and oversight of the Company's risk management framework.
The Company, through three layers of defence viz: policies & procedures, review mechanism and assurance, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The audit committee oversees the formulation and implementation of Risk Management Policies. The risk and mitigation plan are identified, deliberated and reviewed at appropriate Forums.
Market Risk is the risk that changes in market prices-such as foreign exchange rates-will affect the company’s income or the value of Financial Instruments. The objective of Market Risk Management is to manage and control market risk exposure within acceptable parameters, while optimizing the return.
i. Foreign Exchange Risk
In General, the company is a net payer of Foreign Currency. Accordingly, changes in exchange rates and in particular a strengthening of Indian rupee will positively affect the Company's net results as expressed in Indian Rupees. The currency towards which the company is exposed to risk is US Dollars.
ii. 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’s exposure to changes in interest rates relates primarily to the Company’s Overdraft CC Account, Term loan and other working capital loans. The company’s total outstanding debt in local currency presented in the Financial Statements is a combination of fixed rate and floating rate Debts. For the portion of local currency debt on fixed rate basis, there is no interest rate risk. Floating Rate Debts are linked to domestic interest rate benchmarks issued by Reserve Bank of India like RLLR (Repo Linked Lending Rate).
i. Credit Risk
Credit Risk is the Risk of Financial Loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customers and other receivables.
Trade Receivable and other financial assets
The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into the contract, delivery terms and conditions of payments. The company's review includes external ratings (if they are available), financial statements, industry information and business intelligence.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.
ii. 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 cash or another financial asset. The Company manages liquidity risk by maintaining sufficient cash and bank balances and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.
The Company's Finance Department is responsible for managing the short term and long term liquidity requirements. Short term liquidity finance is reviewed daily by finance department. Long Term Liquidity position is reviewed on a regular basis by the board of directors and appropriate decisions are taken according to the situation.
The Company does not have any transaction not 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 relevant provisions of the Income Tax Act, 1961). Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year.
The company has not applied for any Schemes of Arrangements to any Competent Authority in terms of section 230 to 237 of the Companies Act, 2013.
1 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or any other person or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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.
2 No funds have been received by the Company from any person or entity, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF BOARD OF DIRECTORS
FOR JAIN SALIA & ASSOCIATES PANACHE DIGILIFE LIMITED
CHARTERED ACCOUNTANTS [ICAI FRNo. 116291W]
MR. AMIT D. RAMBHIA MR. NIKIT D. RAMBHIA
MANAGING DIRECTOR JOINT MANAGING DIRECTOR
DIN:- 00165919 DIN:- 00165678
CA JAYESH K. SALIA
PARTNER
(MEM NO. 044039)
MR. HARSHIL CHHEDA MR. NITESH M. SAVLA
COMPANY SECRETARY CFO & WHOLE TIME DIRECTOR
DIN:- 05155342
PLACE: MUMBAI
DATED: 28th May, 2024 PLACE: MUMBAI
UDIN : 24044039BKBLWN2100 DATED: 28th May, 2024