1.14 Provisions, Contingent Liabilites and Contingent Assets
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.
Provisons for legal claims, service warranties, volume discounts and returns 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 not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to anyone item included in the same class of obligations.
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. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passgae of time is recognised as interest expense.
A contingent assets is disclosed and not recognised, where an inflow of economic benefits is probable.
1.15 Employee benefits
Short-term obligation
Liabilities for salaries, including non monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee's sendees upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled The liabilities are presented as current employee benefit obligations in the balance sheet.
Other long-term employee benefits obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related sendee. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up lo the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Reineasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Post employment obligation
The Company operates the following post-employment schemes: defined benefit plan, i.c., gratuity, defined contribution plans such as provident fund.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in the statement of profit and loss. Remeasurement gains and losses arising front experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting front plan amendments or curtailments are recognised immediately in profit or loss as past service cost.
Defined contribution plans
The Company pays provident fund and employee state insurance contributions to government administered Employee Provident Fund Organisation and Employee State Insurance Corporation respectively. The Company has no further payment obligations onc e the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
1.16 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
1.17 Earnings per share
Basic earnings per share is calculated by dividing: the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of ail dilutive potential equity shares.
1.18 Inventories
Inventories represents the WIP in respect of Project Management Consultancy Services in progress and remained unbilled. Inventories have been valued at cost.
1.19 Accounting for Joint Venture Operations
The Financial Statements reflect the share of the Company's assets and liabilities as well as income and expenditure of Joint Venture. Operations which are accounted for according to the participating interest of the company as per the various Joint Venture Agreements on a line by line basis along with similar items in the company's financial statements.
1.20 Provision for current and deferred tax
Provision for current and deferred tax is made after taking into consideration benefits admissible under the Provision of Income Tax Act 1961. Deferred tax resulting from timing differences "between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable/virtual cer tainty that asset will be realized against future taxable profits.
Note 2 Critical Accounting Judgements, Estimates and Assumptions
The preparation of the financial statements requires management to exercise judgment and to make estimates and assumptions. These estimates and associated assumptions are based on historical experiences and various other factors that 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. Revision to accounting estimates are recognised in the period in which the estimate is revised if the revision affect only that period, or in the period of the revision and future periods if the revision affects both current and future period.
The areas involving critical estimates or judgements arc as under:
a Estimation of current tax expenses and payable:
Taxes recognized in the financial statements reflect management's best, estimate of the outcome based on the facts known at the balance sheet date. These facts include but are not limited to interpretation of tax laws of various jurisdictions where the Company operates. Any difference between the estimates and final tax assessments will impact the income tax as well the resulting assets and liabilities.
b Estimated fair value of unlisted securities:
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on the market conditions existing at the end of each reporting period.
c Useful lives of property, plant and equipment and Intangible assets:
Depreciation and amortization is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortisation charges.
d Estimation of defined benefit obligation:
The liabilities of the company arising from employee benefit obligations and the related current service cost, are determined on an actuarial basis using various assumptions.
e Impairment of financial assets (including trade receivables):
Allowance for doubtful receivables represent the estimate of losses that could arise due to inability of the Customer to make payments when due These estimates are based on the customer ageing, customer category, specific credit circumstances and the historical experience of the group as well as forward looking estimates at the end of each reporting period.
f Estimation of Provisions and contingencies:
Provisions are liabilities of uncertain amount or timing recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable. Contingent liabilities are possible obligations that may arise from past event whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events which arc not fully within the control of the Company. The Company exercises judgement and estimates in recognizing the provisions and assessing the exposure to contingent liabilities relating to pending litigations. Judgement is ncccssaiy in assessing the likelihood of the success of the pending claim and to quantify the possible range of financial settlement. Due to this inherent uncertainty in the evaluation process, actual losses may be different from originally estimated provision.
5.01 The company has made investment of Rs. 12.00 Croces (excluding cumulative interest of Rs.3.40 Crores accrued thereon), in Unquoted fully compulsory convertible debentures as at repotting dale. The management docs not deem necessary to make any' provision for impairment of expected Losses, if any, in accordance with lnd-As-109 "Financial Instruments*. Sucfi investments in mining companies are long term and strategic in nature, have large value of explored mining reserves and based on the expected cash Hows in the said companies , registered external valuers have.valued the shares of the said companies above par value and are considered good and fully recoverable. Hence no provision for impairment in value of Investment Is required
5.02 Regarding investment of Rs. 90.00 Lakhs standing in equity shares of unlisted company being erstwhile subsidiary company has not earned profit in previous year ending on 31/03/2023. However the company has positive net worth as per audited balance sheet for the year ending 31/3/2023 and (here h no diminution in the value of investment and hence no provision for impairment loss is required.
(ii) The Company's share in the total value of the assets and liabilities as at Rs 31st March, 2024 is Rs. ‘47.30 Lakhs (Previous year 201.79 Lakhs) and Rs. 73.09 Lakhs (Previous Year R>. 73.11 Lakhs) respectively and in the income, expenditure and net profit / ( Loss) before tax for the year ended 31st March. 2024 of the above Joint Ventures amounts to Rs. 0.00 Lakhs (Previous Year Rs. 0.00 Lakhs). Rs. 0.13 Lakhs (Previous Year Rs. 0.23 Lakhs) and Rs. 0.13 Lakhs (Previous Year Loss Rs. 0.23 Lakhs) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.
NOTE 36
The Company has not entered Into any derivative contracts arid accordingly there are no outstanding derivative contacts as on 31st March, 2024. The Company does not have any foreign currency exposure as on 31st March, 2024.
NOTE 37 Balances under sundry creditors, imprest accounts .sundry debtors .salary payable and loans and advances are subject to confirmation from the said parties.
NOTE 38 Previous Years figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year,
4s per ow Report ot e«en date For and on behalf of Board of Directors
Foe, NARESH PATAOIA & COMPANY
Chartered Accountant
Firm Reg No 10693CW
Sdi. SdA Sdf.
CA NARESH PATADIA SIDDMARTH P SHAH KAUSTU8H PRAKASH PAUNIKAR
Proprietor Director Director
ManbtflMp No. 035620 DIN: 05304116 I»t: C8621592
Date: 21MM024
Placo: Nagpur
UDIN : 2<03:C20BKQGZX4994
Srft. Sdf-
Rani Mahethwarl CHANDRASMEKAR BASESHANKAR
Currpany Secretary Chief financial Offlcei
Membership No. A54149
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