(I) Provisions and Contingencies Provisions:
Provisions are recognised when there is a present obligation (legal or constructive] as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are discounted to its present value as appropriate.
Contingent Liabilities:
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.
(J) Revenue recognition
Revenue is measured at fair value of the consideration received or receivable. Revenue is recognized when (or as] the Company satisfies a performance obligation by transferring a promised good or service (i.e. an asset] to a customer. An asset is transferred when (or as] the customer obtains control of that asset.
When (or as] a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration] that is allocated to that performance obligation.
The Company applies the five-step approach for recognition of revenue:
i. Identification of contract(s] with customers;
ii. Identification of the separate performance obligations in the contract;
iii. Determination of transaction price;
iv. Allocation of transaction price to the separate performance obligations; and
v. Recognition of revenue when (or as] each performance obligation is satisfied.
(K) Other income:
Interest: Interest income is calculated on effective interest rate, but recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend: Dividend income is recognised when the right to receive dividend is established.
(L) Finance Cost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.
(M) Earnings per share (EPS):
Basic EPS is 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. For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of additional equity shares that would have been outstanding are considered assuming the conversion of all dilutive potential equity shares. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period.
(N) Employee benefits
i. Provident Fund
Retirement benefit in the form of Provident Fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense when an employee renders the related service.
ii. Gratuity
The Management has decided to gratuity will be accounted in profit & loss A/c in each financial year when the claim is recognized by the company which is against the prescribed treatment of AS -15. The Quantum of provision required to be made for the said retirements benefits can be decided on actuarial basis and the said information could not be gathered. To the extent of such amount, the reserve would be lesser.
(O) Fair Value Measurement:
The Company measures financial instruments such as investments in quoted share, certain other investments etc. at fair value at each Balance Sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets:
Initial recognition
Financial assets are recognised when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables and other specific assets are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Profit and Loss.
Subsequent measurement
Financial assets, other than equity instruments, are subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:
i. The entity’s business model for managing the financial assets and
ii. The contractual cash flow characteristics of the financial asset.
De-recognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Financial Liabilities:
Initial Recognition and Subsequent Measurement
All financial liabilities are recognised initially at fair value and in case of borrowings and payables, net of directly attributable cost. Financial liabilities are subsequently 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. Changes in the amortised value of liability are recorded as finance cost.
De-recognition
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
Figures in financial statement have been regrouped and / or rearranged where ever necessary.
16. The Company has not revalued its Property, Plant and Equipment for the current year.
17. There has been no Capital work in progress for the current year of the company.
18. There is no Intangible assets under development in the current year.
19. The balances of Trade payables, Trade Receivable and loans and advances are subject to confirmation by respective parties.
20. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.
21. In the opinion of the Board of Directors, provisions for depreciation and all liabilities are adequate and not in excess of the amount reasonably necessary.
22. Wherever external evidence in the form of cash memos / bills / supporting are not available, the internal vouchers have been prepared, authorized and approved.
23. Statement of Management
(i) The current assets, loans and advances are good and recoverable and are approximately of
the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
(ii) Balance Sheet, Statement of Profit and Loss and Cash Flow Statement read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.
24. The Company has not advanced or loaned to or invested in funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a. directly or indirectly lend to 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
25. The Company has not received any fund from any person(s] or entity(is], including foreign entities (Funding Party] with the understanding (whether recorded in writing or otherwise] that the Company shall
a. directly or indirectly lend to 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.
26. The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of Companies act 1956.
27. The company is in compliance with the number of layers prescribed under clause (87] of section 2 of company’s act read with companies (restriction on number of layers] Rules, 2017.
30. Earnings Per Share:
The Company reports basic and diluted earnings per share (EPS] in accordance with the Accounting Standard 20 prescribed under The Companies (Accounting Standards] Rules, 2006 (as amended]. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.
31. Notes forming part of accounts in relation to Micro and small enterprise
1. Based on information available with the company, on the status of the suppliers being Micro or small enterprises, on which the auditors have relied, the disclosure requirements of Schedule III to the Companies Act,2013 with regard to the payments made/due to Micro and small Enterprises are given below :
The company has initiated the process of obtaining the confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006] but has not received the same in totality. The above information is compiled based on the extent of responses received by the company from its suppliers.
32. Details of crypto currency and virtual currency.
Company has not traded or invested in crypto currency or virtual currency during the financial year.
35. Compliance with approved scheme of Arrangements.
Company does not have made any arrangements in terms of section 230 to 237 of companies act 2013, and hence there is no deviation to be disclosed.
36. Utilization of borrowed funds and share premium.
As on March 31, 2024 there is no unutilized amount in respect of any issue of securities and long term borrowing from banks and financial institution. The borrowed funds have been utilized for the specific purpose for which the funds were raised.
37. Corporate social responsibility (CSR).
The section 135 (Corporate social responsibility] of companies Acts, 2013 is not applicable to the company.
As per our report on even dated attached
For D G M S & Co. For, Artificial Electronics Intelligent Material Limited
Chartered Accountants Formerly known as Datasoft Application Software
(India) Limited
Atul B Doshi
Partner Eswara Rao Nandam Uma Nandam
Director & CFO Director Whole-time Director
M.No102585 DIN:02220048 DIN:02220048
F.R.N. 0112187W Place: Mumbai
UDIN: 24102585BJZYEW1449 Pratibha Dhanuka Uma Nandam
Date: 27/05/2024 Company Secretary Chief Financial Officer
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