The assessments undertaken in recognising provisions and contingencies have been made in accordance with theapplicable Ind AS. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balancesheet date and are adjusted to reflect the current best estimate.
Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognizedwhen the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that anoutflow of resources, that can be reliably estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cashflows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of thetime value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized inthe statement of profit and loss as a finance cost.
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.There are certain obligations which management of the Company has concluded, based on all available facts andcircumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated ascontingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Althoughthere can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is notexpected that such contingencies will have a material effect on its financial position or profitability.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits isprobable.
Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows”, whereby profit/(loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past orfuture cash receipts or payments. The cash flows from operating, investing and financing activities of the Company aresegregated based on the available information.
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating DecisionMaker “CODM” of the Company.
The Company presents assets and liabilities in statement of financial position based on current/non-current classification.The Company has presented non-current assets and current assets before equity, non-current liabilities and currentliabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by MCA.
i. An asset is classified as current when it is:
a) Expected to be realised or intended to be sold or consumed in normal operating cycle,
b) Held primarily for the purpose of trading,
c) Expected to be realised within twelve months after the reporting period, or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelvemonths after the reporting period.
ii. All other assets are classified as non-current.
iii. A liability is classified as current when it is:
a) Expected to be settled in normal operating cycle,
c) Due to be settled within twelve months after the reporting period, or
d) There is no unconditional right to defer the settlement of the liability for at least twelve months after thereporting period.
iv. All other liabilities are classified as non-current.
v. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash orcash equivalents.
vi. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transactionbetween market participants at the measurement date. The fair value measurement is based on the presumption thatthe transaction to sell the asset or transfer the liability takes place either:
• In the principal market for asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricingthe asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non financial asset takes into account a market participant’s ability to generate economicbenefits by using the asset in its highest and best use or by selling it to another market participant that would use theasset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data areavailable to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservableinputs.
Other Fair Value related disclosures are given in the relevant notes.
Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a fullunderstanding of the Company’s financial performance.
The preparation of Financial Statements requires management to make estimates and assumptions that affect thereported balances of assets, liabilities and disclosure of contingent liabilities at the date of the financial statementsand reported amounts of income & expenses during the periods. Although these estimates and assumptions used inaccompanying financial statements are based upon management’s evaluation of relevant facts and circumstances as ofdate of financial statements which in management’s opinion are prudent and reasonable, actual results may differ fromestimates and assumptions used in preparing accompanying financial statements. Any revision to accounting estimatesis recognized prospectively from the period in which results are known/ materialise in accordance with applicable Indianaccounting standards.
Information about estimates and assumptions that have the most significant effect on recognition and measurement ofassets, liabilities, income and expenses is provided below.
The following are Significant Management Judgements in applying the Accounting Policies of the Company that havethe most significant effect on the Financial Statements.
The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internalfactors which could result in deterioration of recoverable amount of the assets.
The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates.The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,based on Company’s past history, existing market conditions as well as forward looking estimates at the end of eachreporting period.
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount andtiming of future taxable income. Given the wide range of business relationships and the long term nature and complexityof existing contractual agreements, differences arising between the actual results and the assumptions made, or futurechanges to such assumptions, could necessitate future adjustments to tax income and expense already recorded. TheCompany establishes provisions, based on reasonable estimates. The amount of such provisions is based on variousfactors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entityand the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending onthe conditions prevailing in the respective domicile of the companies.
Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The amount received in excess of Par Value of the equity shares is recognised in Securities Premium Reserve. In case ofequity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share isaccounted as securities premium reserve.
Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specifiedpercentage of net profit every year before any dividend is declared. The reserve fund can be utilised only for limited purposesas specified by RBI from time to time and every such utilisation shall be reported to the RBI within specified period of time fromthe date of such utilisation.
General Reserve represents the Statutory Reserve, this is in accordance with Corporate law wherein a portion of profit isapportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company candeclare dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of theCompany.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or otherdistributions paid to shareholders.
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financialstatements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classifiedits financial instruments into the three levels prescribed under the accounting standard. An explanation of each level followsunderneath the table.
The fair value of financial instruments as referred to in note above has been classified into three categories depending on theinputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identicalassets or liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements).
The categories used are as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniqueswhich maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy levels as at the end of the reportingperiod.
The Company’s businesses are subject to several risks and uncertainties including financial risks. The Company’s documentedrisk management polices, act as an effective tool in mitigating the various financial risks to which the business is exposed toin the course of their daily operations. The risk management policies cover areas such as interest rate risk, counterparty andconcentration of credit risk and capital management.
The Company’s senior management oversees the management of these risks. The senior professionals working to managethe financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board ofDirectors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financialrisk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured andmanaged in accordance with Company policies and Company risk objective.
The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’sexposure to and management of these risks are explained below.
The Company is mainly exposed to the interest rate risk due to its investment in term deposits with banks. The Companyinvests in term deposits for a period of up to five year. Considering the short-term nature, there is no significant interest rate riskpertaining to these deposits.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’slong-term debt obligations with floating interest rates and term deposits. The Company’s fixed rate borrowings and deposits arecarried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carryingamount nor the future cash flows will fluctuate because of a change in market interest rates.
The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate of borrowings.
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company.The Company has adopted a policy of obtaining sufficient collateral, where appropriate, as a means of mitigating the risk offinancial loss from defaults.
The Company is exposed to credit risk from its operating activities (primarily its investing activities including deposits with banksand cash and cash equivalents.
For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks. The carrying valueof the financial assets other than cash represents the maximum credit exposure.
None of the Company’s cash equivalents, including flexi deposits with banks, are past due or impaired.
The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis ofassumptions, inputs and factors specific to the class of Financial Assets.
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’sapproach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurringunacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024and 31st March, 2023
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operationalneeds. Any short term surplus cash generated, over and above the amount required for working capital management and otheroperational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interestbearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns oninvestments while ensuring sufficient liquidity to meet its liabilities.
The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscountedcash flows along with its carrying value as at the Balance Sheet date.
In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 and the Companies Act, 2013, theoutstanding Interest due thereon interest paid etc to these enterprises are required to be disclosed. However, these enterprisesare required to be registered under the Act. In absence of information about registration of the enterprises under the above Act,the required information could not be furnished.
As per the provisions of section 135 of the Companies Act, 2013, the Company is not falling in the criteria as is prescribed in thesaid section and as such, CSR is not applicable during this year.
The Promoter’s Financial Support by way of Inter Corporate Deposits of ' 5,908.58 Lakh (previous year ' 5,808.37 Lakh) fromtime to time helps the Company to meet with any financial requirement including, expenses for operational activities, althoughthe existing accumulated loss is ' 7,452.93 Lakh (previous year ' 7,346.64 Lakh) and negative net worth of ' 5,985.23 Lakh(Previous year ' 5,878.94 Lakh) and accordingly the financial statements are prepared on Going Concern Basis.
No proceedings have been initiated on or are pending against the Company for holding benami property under the BenamiTransactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Company has not been declared Willful defaulter by any bank or financial institution or government or any governmentauthority.
iii. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previousfinancial year.
(v) Utilization of borrowed funds and share premium
A. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreignentity(ies) (Intermediary (ies)) with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other person(s) or entity (ies) identified in any manner whatsoever by or onbehalf of the Company (Ultimate Beneficiary (ies)) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary (ies)
B. The Company has not received any fund from any person(s) or entity(ies), including foreign entity(ies) (FundingParty) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other person (s) or entity (ies) identified in any manner whatsoever by oron behalf of the Funding Party (Ultimate Beneficiary (ies)) or
b. provide any guarantee, security or the like on behalf of the (Ultimate Beneficiary (ies))
(vi) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments underthe Income Tax Act, 1961, that has not been recorded in the books of account.
(vii) Details of Crypto currency or Virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(viii) Valuation of Property, Plant and Equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or bothduring the current or previous year.
(ix) Registration of charges or satisfaction with Registrar of Companies:
Details of Charges pending for satisfaction as at 31st March 2024 & as at 31st March 2023, which are yet to be registeredwith Registrar of Companies beyond the statutory period, however, as at 31st March 2024, there are no charges to beregistered with Registrar of Companies.
The Company has no borrowings during the year from banks and financial institutions.
(xi) The Company has not declared or paid dividend during the year 2023-24.
(i) Previous year figures have been regrouped/rearranged wherever, considered necessary.
Chartered Accountants Chairman Director Director
(ICAI Firm Reg. No: 000129N) DIN : 00022964 DIN : 01060575 DIN : 00022941
Place: New Delhi Place: New Delhi Place: New Delhi
Preeti Basniwal Date : 22nd May 2024 Date : 22nd May 2024 Date : 22nd May 2024
Partner
Membership No. 531468 Vishnu Singhal Bipin B Bhavsar Hinal R Mehta
Place: New Delhi Independent Director Chief Executive Officer Company Secretary
Date : 22nd May 2024 DIN: 02421372 Place: Mumbai & Compliance Officer
Place: New Delhi Date : 22nd May 2024 A25618
Date : 22nd May 2024 Place: Mumbai
Date : 22nd May 2024
Shreeram G Garde
Chief Financial OfficerPlace: MumbaiDate : 22nd May 2024