g) Provisions, Contingent liabilities and contingent assets:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
All known Liabilities, wherever material, are provided for and Liabilities, which are disputed, are referred to by way of Notes on Accounts.
h) Employee Benefits Expense Short Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period when the employees render the services.
Post-Employment Benefits Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation.
The liability in respect of gratuity and other post-employment benefits is as per actuarial valuation and
spread over the period during which the benefit is expected to be derived from employees’ services.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
i) Taxes on Income
Provision is made for income tax liability estimated to arise on the results for the year at the current rate of Tax in accordance with Income Tax Act, 1961.
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
j) Foreign currencies transactions and translation
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of custom clearance (as per Bill of Entry) for import of goods.
Exchange differences arising on settlement or translation of monetary items are recognized in the Statement of Profit and Loss.
k) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable net of discounts, considering contractually defined terms and excluding taxes or duties collected on behalf of the government.
Sale of goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer which is usually when the goods are loaded in vehicle and are ready for dispatch after clearance. No revenue is recognized if there are significant uncertainties regarding recovery of the amount due, associated costs or the possible return of goods.
Interest income
Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest rate applicable.
Fixed Deposits
Fixed deposit interest is accounted as per statement/documents issued by banks inclusive of related tax deducted at source.
Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.
l) Current versus non-current classification
All assets and liabilities have been classified as current or non-current as per company’s normal operating cycle and other criteria set out in the Schedule III to the Act.
m) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of twelve months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
n) Trade receivables
These amounts represent assets for goods and services provided by the Company prior to the end of the financial year which are unpaid by the customers of the company.
o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share, if any. Diluted earnings per share adjusts the figures used in determination of basic earnings per share to consider the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a later date.
p) Segment reporting
The Company is engaged in the single operating segment which is trading. There are no separate reportable segments as per Ind AS 108 - Operating Segments.
q) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within the credit period allowed. Trade and other payables are presented as current liabilities unless payment is not due within twelve (12) months after the reporting period.
r) Offsetting
Financial Assets and Financial Liabilities are offset, and the net amount is presented in the balance sheet when, and only when, the Company has a legally enforceable right to set off the amount and it intends, either to settle them on a net basis or to realize the asset and settle the liability simultaneously.
s) Cash flow statement
Cash flows are reported using the indirect method, whereby profit/ loss 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 flows. The cash flows from operating, investing and financing activities of the Company are segregated.
t) Financial Instruments
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.
Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss and ancillary costs related to borrowings) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”) on the basis of following:
> the entity’s business model for managing the financial assets and
> the contractual cash flow characteristics of the financial asset.
Amortised Cost:
A financial asset shall be classified and measured at amortised cost if both of the following conditions are met:
> the financial asset is held within a business model whose objective is to hold financial assets 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.
Fair Value through OCI:
A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met:
> the financial asset 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.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through OCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or ‘other financial liabilities.’
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL:
Gains or Losses on liabilities held for trading are recognised in the Statement of Profit and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Impairment of financial assets:
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. The Company assesses on a forward-looking basis the expected credit loss associated with its assets. The impairment methodology applied depends on whether there has been a significant increase in credit risk. In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The application of a simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.
De-recognition of financial assets:
The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
l Critical Accounting Judgements and Key Sources of Estimation Uncertainty
The preparation of the Company’s Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the next financial years.
2.4 In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
2.5 Micro Small and Medium Enterprises
The Company has called for complete information from all the vendors during the year regarding their status as small-scale/micro industrial undertaking however, response from most of them is still awaited and based on information received regarding the status of the vendors there are no amounts outstanding for more than Rs.1,00,000/- for more than 30 days.
2.6 The figures of the previous period/year have been regrouped/reclassed to make them comparable with those of the current period/year wherever considered necessary.
9.2 Terms/Rights attached to Equity Shares
The Company has only one class of equity shares having face value of Rs.10 per share. Each holder of Equity Share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
9.3 Other details
a) There are No ( Previous year - No) rights, preference and restriction attaching to each class of shares including restruction on the distribution of dividend and the repayment of capital.
b) There are nil number of shares (Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.
c) There are nil number of shares (Previous year Nil) reserved for issue under option and contracts /commitment for the sale of shares/ disinvetment including the terms and amounts.
NOTE: 27 RELATED PARTY DISCLOSURE
(a) Disclosure of Related Parties and relationship between the parties.
1. Associates: There is no associates of the company
2. Key Management Personnel (KMP)
Mr. Vijay Kumar, Managing Director
Mr. Chakshu Goyal, Whole Time Director
Mr. Tilak Raj, Director
Ms. Neelam Rani, Director
Mr. Sahil Aggarwal, Director upto 29 January 2024
3. Relatives of the Key Management Personnel
Ms. Deepika, Relative of director of the company Ms. Prerna Goyal, Relative of director of the company
4. Enterprises in which Key Management Personnel and relative of such personnel is able to exercise significant influence or Con
a) CoalMantra Private Limited
b) Sharp Projects Private Limited
c) Offingo Private Limited
G. Details of Benami Property held
No proceedings have been initiated against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988 ) and the rules made thereunder.
H. Company has taken borrowings from banks or financial institutions on the basis of security of current assets
Working Capital loans from banks are primarily secured by hypothecation of entire present and future tangible current asset of the company and personally guaranteed by a director of the company.
I. Wilful Defaulter
The company has not been declared wilful defaulter by any bank or financial institution or other lender.
J. Relationship with Struck off Companies
There is no struck off company associated with the company or any of the director of the company.
K. Registration of Charges
All charges, modification, and satisfaction is registered with the Registrar of companies within the statutory period.
L. Compliance with number of layers of companies
The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of layers) Rules, 2017 and has not exceeded the limit.
M. Compliance with approved scheme(s) of Arrangements
The company has not entered in any arrangement prescribed under 230 to 237 of the Companies Act, 2013
N. Utilisation of Borrowed funds and Share Premium
The company has utilised borrowed funds and share premium only for the purposes for which it were obtained. No diversion of funds is made by the comapany from any fund received from any person(s) or entity(ies) including foreign entity(ies).
O. Details of Crypto Currency or virtual Currency
The company has not traded or invested in crypto currency or virtual currency during the financial year.
For K R Aggarwal & Associates For and on behalf of Board of Directors of
Chartered Accountants lndia Umk^
Firm Registration No. 030088N
Kanika Aggarwal Vijay Kumar Chakshu Goyal
Partner Manging Director & CFO Whole Time Director
Membership No. 539337 DIN: 00574900 DIN: 03126756
UDIN:
Place: Ludhiana Prabhjot Kaur
Date: 14 May 2024 Company Secretary & Compliance Officer
M. No. ACS 26715
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