3.7 Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources, and a reliable estimate can be made of the amount of the obligation. 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. The Company also discloses present obligations for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
3.8 employee benefits
Liabilities for salaries and wages, including non-monetary benefits if any, are recognized as liabilities (and expensed) and are measured at the amounts expected.
3.9 Fair value measurement
The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.
Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the accessible principal market or the most advantageous accessible market as applicable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input that is significant to the fair value measurement as a whole.
For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.
3.10 Statement of Cash Flows
Statement of Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The statements of cash flows from operating, investing and financing activities of the Company are segregated.
3.11 Earnings Per Share (EPS)
The basic EPS is computed by dividing the profit after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted EPS, profit after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
3.12 Nature and purpose of other equity
(i) Retained earnings
Retained earnings represent the surplus in profit and loss account and appropriations.
(ii) Reserve fund in terms of section 45-IC (1) of the Reserve Bank of India Act, 1934
Reserve fund is created as per the terms of section 45-IC (1) of the Reserve Bank of India Act, 1934 as a statutory reserve. Appropriation from this Reserve Fund is permitted only for the purposes specified by RBI.
(iii) Other comprehensive income On equity investments
The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated in the FVOCI equity investments reserve. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognized.
On debt investments
The Company recognizes changes in the fair value of debt instruments held with a dual business objective of collect and sell in other comprehensive income. These changes are accumulated in the FVOCI debt investments reserve. The Company transfers amounts from this reserve to profit or loss when the debt instrument is sold. Any impairment loss on such instruments is reclassified to Profit or Loss.
4. Recent accounting pronouncements
Indian Accounting Standard (Ind AS) 1 - Presentation of financial statements - This amendment aims to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their 'significant accounting policies' with a requirement to disclose their 'material accounting policy information' and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures
The Company is currently assessing its accounting policy information disclosures to ensure consistency with the amended requirements. The Company does not expect this amendment to have any material impact in its financial statements.
Indian Accounting Standard (Ind AS) 8 - Accounting Policies, Changes in Accounting Estimates and Errors -This amendment has changed the definition of a “change in accounting estimates” to a definition of “accounting estimates”. The amendment clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. It also, explains the difference between estimation techniques and valuation techniques by way of examples to provide clarity. The Company does not expect this amendment to have any material impact in its financial statements
(a) Indian Accounting Standard (Ind AS) 12 - Income taxes
This amendment narrows the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognized for all deductible and taxable temporary differences associated with leases and decommissioning obligations
This amendment has done away with the recognition exemption on initial recognition of assets and liabilities that give rise to equal and offsetting temporary differences.
The Company does not expect this amendment to have any material impact in its financial statements has context menu.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimated using a valuation technique.
To show how fair values have been derived, financial instruments are classified based on a hierarchy of valuation techniques.
This note describes the fair value measurement of both financial and non-financial instruments.
Valuation framework
The Company has an internal fair value assessment team which assesses the fair values for assets qualifying for fair valuation.
The Company's valuation framework includes:
• Benchmarking prices against observable market prices or other independent sources.
• Development and validation of fair valuation models using model logic, inputs, outputs, and adjustments.
These valuation models are subject to a process of due diligence and validation before they become operational and are continuously calibrated.
Valuation methodologies adopted.
Fair values of financial assets, other than those which are subsequently measured at amortized cost, have been arrived at as under:
• Fair values of investments held for trading under FVTPL have been determined. using quoted market prices of the underlying instruments.
• Fair values of strategic investments in equity instruments designated under FVOCI have been measured.
The Company has determined that the carrying values of cash and cash equivalents, bank balances, trade receivables, short term loans, floating rate loans, investments in equity instruments designated at FVOCI, trade payables, short term debts, borrowings, bank overdrafts and other current liabilities are a reasonable approximation of their fair value and hence their carrying value are deemed to be fair value.
34. Additional disclosures in Notes to Accounts as per Sch III - refer notification dated 24th March 2021 As per RBI.
The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of the Company, same are not covered:
a) The Company has not traded or invested in crypto currency or virtual currency during the financial year
b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under
c) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority
d) The Company has not entered into any scheme of arrangement
e) No satisfaction of charges are pending to be filed with ROC
f) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
g) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity (“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 on behalf of the Ultimate Beneficiaries;
The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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
35. The company has not entered into any transaction with companies struck off under companies act 2013.
For S C Mehra & Associates LLP For and on behalf of the Board of
Firm Regn No.: 106156W/W100305 Abhinav Capital Services Limited
Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
CA Deepak M. Oza Chetan Karia Kamlesh Kotak Ms. Reshma Matele
Partner Director Director Company Secretary
Membership No.: 045890 DIN: 00015113 DIN: 00012755 Membership No. 65306
UDIN: - 23045890BGVFHT2958
Place: Mumbai Sd/-
Date: 29th May 2023 Ritu Mohatta
CFO
DIN:08860676
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