2.7 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
2.8 Cash and cash equivalents
Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise cash in hand and cash at bank including fixed deposit with original maturity period of three months and short-term highly liquid investments with an original maturity of three months or less.
2.9 Earnings per share
Basic earnings per share are 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. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
2.A CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of the financial statements requires management to make Judgements, estimates and assumptions about the reported amounts of assets and liabilities, and income and expenses that are not readily apparent from other sources. Such judgements, estimates and associated assumptions are evaluated based on historical experience and various other factors, including estimation of the effects of uncertain future events, which are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical judgements and estimations that have been made by the management in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognised in the financial statements and/or key sources of estimation uncertainty that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
a Income tax
As stated in Note 39, tax expense is calculated using applicable tax rates and tax laws that have been enacted or substantively enacted. In arriving at taxable profit and tax bases of assets and liabilities the Company adjudges taxability of amounts in accordance with tax enactments, case law and opinions of tax counsel, as relevant. Where differences arise on tax assessment, these are booked in the period in which they are agreed or on final closure of assessment.
b Recognition of deferred tax assets
Deferred tax assets are recognised for unused tax-loss carry forward and unused tax credits to the extent that realisation of the related tax benefit is probable. The assessment of the probability with regard to the realisation of the tax benefit involves assumptions based on the history of the entity and budgeted data for the future
c Useful lives of property, plant and equipment and, intangible assets
The Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.
Notes on Financial Ratio : (Explanation for change in ratio more than 25%)
1. Current Ratio
Decline in Current ratio is due to loss for the FY 2023-24
2. Debt - Equity Ratio
(a) The Company resorted to debt financing in order to meet statutory payments and other working capital requirments
(b) Other Equity reduced due to loss for the FY 2023-24
3. Return on Equity Ratio
Stamp duty payment on increase in authorised capital resulted into huge loss. Post management change, the Company is in the transition phase appointing employees at various level for expansion planing.
4. Return on capital employed
Stamp duty payment on increase in authorised capital resulted into huge loss. Post management change, the Company is in the transition phase appointing employees at various level for expansion planning.
26 The Previous year’s figures have been regrouped/ rearranged wherever necessary to conform to the current year's classification/disclosure.
27 In the opinion of the management and to the best of their knowledge and belief, the value on realisation ofTrade Receivables,Trade payables, Parties accounts and Other current assets in the ordinary course of business will not be less than the amounts at which they are stated in the Balance Sheet.
28 There is no liability on account of contracts to be executed on capital accounts as at the balance sheet date.
29 The company has not provided for current tax as the management is of the opinion that there is no taxable income during the year.
30 There are no transactions with struck off companies under section 248 or 560
31 No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.
32 The Company has complied with the no. of layers prescribed u/s 2(87) read with the applicable Rules
33 There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies Act 2013
34 The company has not advanced/loaned/invested or received funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 to or on behalf of the Ultimate Beneficiaries
35 There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
36 The company is not covered under section 135 of the Companies Act 2013
37 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year As per our report of even date attached
For Mahesh C Solanki & Co., For and on behalf of the Board of Directors of
Chartered Accountants Dr. Adv. Arikuzhiyan Samsudeen sd/-
FRNo. 006228C Chairman cum Non-Executive Director
sd/- sd/-
CA Vinay Kumar Jain su/
Memb No. 232058 Dr. Muhemmed Swadique
Partner Whole Time Director
UDIN: 24232058BKCZSN4806
sd/-
Place: Chennai, Ms. Heena Rangari
Date: 29-05-2024. Company Secretary cum Compliance Officer
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