1.20 Provisions, Contingent Liabilities and Contingent Assets (Ind AS
37):
Provisions are recognised in the balance sheet when the company has
a present obligation (legal or constructive) as a result of a past event,
which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is
based on the best estimate of the expenditure required to settle the
present obligation at the balance sheet. Where the time value of
money is material, provisions are made on a discounted basis.
Disclosure for Contingent liabilities is made when there is a possible
obligation or present obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the
company or a present obligation that arises from the past events
where it is either not probable that an outflow of resources embodying
in economic benefits will be required to settle or a reliable estimate of
amount cannot be made.
Disclosure for Contingent assets are made when there is possible
asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity.
However Contingent assets are neither recognized nor disclosed in
the financial statements.
1.21 Prior Period and Extraordinary and Exceptional Items:
(i) All Identifiable items of Income and Expenditure pertaining to prior
period are accounted through ‘'Prior Period Items''.
(ii) Extraordinary items are income or expenses that arise from events or
transactions that are clearly distinct from the ordinary activities of the
enterprise and, therefore, are not expected to recur frequently or
regularly. The nature and the amount of each extraordinary item be
separately disclosed in the statement of profit and loss in a manner
that its impact on current profit or loss can be perceived.
(iii) Exceptional items are generally non-recurring items of income and
expenses within profit or loss from ordinary activities, which are of
such, nature or incidence.
1.22 Financial Instruments (Ind AS 107 Financial Instruments:
(Disclosures)
I. Financial assets:
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value.
Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities, which are not at fair
value through profit or loss, are adjusted to the fair value on initial
recognition.
B. Subsequent Measurement
a) Financial assets measured at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a
business model whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
b) Financial assets at fair value through other comprehensive
income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business
model whose Objective is achieved by both collecting contractual cash
flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount
outstanding.
c) Financial assets measured at fair value through profit or loss
(FVTPL)
A Financial asset which is not classified in any of above categories are
measured at FVTPL e.g., investments in mutual funds. Financial
assets are reclassified subsequent to their recognition, if the Company
changes its business model for managing those financial assets.
Changes in business model are made and applied prospectively from
the reclassification date which is the first day of immediately next
reporting period following the changes in business model in
accordance with principles laid down under Ind AS 109 -Financial
Instruments.
II. Financial Liabilities
A. Initial recognition
All financial liabilities are recognized at fair value and in case of
borrowings, net of directly attributable cost. Fees of recurring nature
are directly recognized in the Statement of Profit and Loss as finance
cost.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective
interest method. For trade and other payables maturing within one
year from the balance sheet date, the carrying amounts approximate
fair value due to the short maturity of these instruments.
1.24 Operating Segments (Ind AS 108)
Operating segment is a component of an entity:
a. That engages in business activities from which it may earn revenues
and incur expenses (including revenues and expenses relating to
transactions with other components of the same entity).
b. Whose operating results are regularly reviewed by the entity's chief
operating decision maker to make decision about resources to be
allocated to the segments and assess its performance, and
c. For which discrete financial information is available.
The Company is engaged in Construction and project related activity.
As there are no separate reportable segments, Segment Reporting as
per Ind AS -108, “Operating Segments” is not Applicable.
1.25 Events After the Reporting Period (Ind AS 10)
Events after the reporting period are those events, favorable and
unfavorable, that occur between the end of the reporting and the date
when the financial statements are approved by the Board of Directors
in case of a company, and, by the corresponding approving authority in
case of any other entity for issue. Two types of events can be identified:
a. Those that provide evidence of conditions that existed at the end of
reporting period (adjusting events after the reporting period);
b. Those that are indicative of conditions that arose after the reporting
period (non-adjusting events after the reporting period).
An entity shall adjust the amounts recognized in its financial
statements to reflect adjusting events after the reporting period.
As per the information provided and Books of Accounts no such events
are identified during the reporting period. Hence Ind AS 10 Events
After the Reporting Period is not applicable.
1.26 Construction Contracts (Ind AS 11)
Construction contract is a contract specifically negotiated for the
construction of an asset or a combination of assets that are closely
interrelated or interdependent in terms of their design, technology, and
function or their ultimate purpose or use.
The company is engaged in Construction and project related activity,
hence Ind AS 11 “Construction Contract” is applicable.
1.27 Income Taxes (Ind AS 12)
The Tax Expense for the period comprises of current and deferred tax.
• Current Tax:
Current Tax Assets and Liabilities are measured at the amount
expected to be recovered from or paid to the Income tax authorities,
based on tax rates and laws that are enacted at the Balance Sheet
date.
• Deferred Tax:
Deferred tax liabilities are recognized for all timing differences.
Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the Company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported by
convincing evidence that they can be realized against future taxable
profits.
At each reporting date, the Company re-assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax asset to
the extent that it has become reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The Company writes-down the carrying amount of
deferred tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
New and Amended Standards
1.28 Amendment to Ind AS 116: COVID -19 Related Rent
Concessions:
The amendments provide relief to lessees from applying Ind AS 116
guidance on lease modification accounting for rent concessions
arising as a direct consequence of Covid-19 pandemic. As a practical
expedient, a lessee may elect not to access whether a Covid-19
related rent concession from a lessor is lease modification. A lessee
that makes this election accounts for any change in lease payments
resulting from COVID-19 related rent concession the same way it
would account for the changes under Ind AS 116, if changes were not
lease modifications. This Amendment had no impact on the
standalone financial statements of the Company.
1.29 Amendment to Ind AS 1 and Ind AS 8: Definition of material:
The Amendments provide a new definition of material that states
“information is material if omitting, misstating or obscuring it is
reasonably be expected to influence decisions that the primary uses of
general-purpose financial statements make on the basis of those
financial statements, which provide financial information about
specific reporting entity”. The amendments clarify that materiality will
depend on the nature of magnitude of information, either individually or
in combination with other information, in the context of the financial
year statements. A misstatement of information is material if it could
reasonably be expected to influence decisions made by the primary
users. These amendments had no impact on standalone financial
statements of the company.
1.30 Amendment to Ind AS 107 and Ind AS 109: Interest Rate
Benchmark Reform:
The amendments to Ind AS 109 Financial Instruments: Recognition
and Measurements provide number of reliefs, which apply to all
hedging relationships that are directly affected interest rate
benchmark reform. A hedging relationship is affected if the reform
gives raise to uncertainty about the timing and/or amount of bench
mark -based cash flow of hedging items or hedging instrument. These
amendments have no impact on the standalone financial statements
of the company as it does not have any interest rate hedge relation.
The amendment to Ind AS 107 prescribe the disclosure which entities
are required to make for hedging relationship to which the reliefs as per
the amendments in Ind AS 109 are apply. This amendment had no
impact on the standalone financial statement of the company.
28. Consolidated and Separate Financial Statement (Ind AS 27):
The company has one subsidiary company for the current reporting
period. Hence consolidate and separate financial statement are
applicable.
29. Investments in Associates (Ind AS 28):
The company has made no investments in any of its associates during
the reporting period. This accounting standard has no financial impact on
the financial statements for the current reporting period.
30. Interest in Joint Ventures (Ind AS 31)
The company has no interest in any Joint ventures. This accounting
standard has no financial impact on the financial statements for the
current reporting period.
32. Derivative instruments and un-hedged foreign currency exposure:
a) There are no outstanding derivative contracts as at March 31,2024 and
March 31,2023.
b) Particulars of Un-hedged foreign currency exposure is: Nil.
33. Loan Funds:
Secured Loans - Nil
34. Confirmation of Balances:
Confirmation letters have been issued by the company to Trade
Receivables, Trade Payables, Advances to suppliers and others
advances requesting that the confirming party responds to the company
only if the confirming party disagrees with the balances provided in the
request and however the company has not received any letters on
disagreements.
The information has been given in respect of such vendors to the extent they
could be identified as micro and small enterprises on the basis of information
available with company.
As per the information provided / submitted by the Company, there are no
dues to Micro, Small and Medium Enterprises covered under (‘MSMED' Act,
2006).
42. Financial Risk Management
In course of its business, the company is exposed to certain financial risk
such as market risk (Including currency risk and other price risks), credit
risk and liquidity risk that could have significant influence on the
company's business and operational/financial performance. The Board
of directors reviews and approves risk management framework and
policies for managing these risks and monitor suitable mitigating actions
taken by the management to minimize potential adverse effects and
achieve greater predictability to earnings.
43. Credit Risk
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 only dealing with creditworthy counterparties and
obtaining sufficient collateral, where appropriate, a means of mitigating
the risk of financial loss from defaults.
The company makes an allowance for doubtful debts/advances using
expected credit loss model.
44. Liquidity risk
Liquidity risk refers to the risk that the company cannot meet its financial
obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as pre
requirements. The Company's exposure to liquidity risk is minimal as the
promoters of the company is infusing the funds based on the
requirements.
45. Other Statutory Information
i. The Company does not have any Benami property, where any
proceeding has been initiated or pending against the company for
holding any Benami property.
ii. The Company does not have any transactions with companies struck off
iii. The Company does not have any charges or satisfaction which is yet to
be registered with ROC beyond the statutory period.
iv. The Company has not traded or invested in Crypto currency or Virtual
Currency during the financial year.
v. The Company has not been declared wilful defaulter by any bank or
financial institution or government or any government authority.
vi. The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with
the understanding that the Intermediary shall:
a. 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
b. provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
vii. The Company has not received any fund from any person(s) or
entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the
Company shall:
a. 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
b. provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
viii. The Company does not have any such transaction which is 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.)
46. Financial figures have been rounded off to nearest rupee and regrouped
wherever is necessary.
47. Notes 3 to 42 forms part of Balance Sheet and have been authenticated
As per our report of even date F o r and on behalf of the Board of Directors of
For N G RAO & Associates ABHISHEK INFRAVENTURES LIMITED.
Chartered Accountants
Firm Reg No. 009399S ^ ^
Sd/_ NAGARAJU NOOKALA RAHUL ERRAMSHETTY
m Director Director
R.a° G DIN:09083708 DIN:03639105
Membership No. 207300
UDIN: 24207300BKARLD4614
Sd/- Sd/-
Place: Hyderabad Ra m a chandra Murthy Adiraju Ritu Sharma
Date : 30.05.2024 CFO Company Secretary
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