o) Provisions and contingent liabilities
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. The discount rate used to determine the present value is a pretax 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 passage of time is recognised as interest
expenses. 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 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.
36 Disclosures pursuant to Indian Accounting Standard -19 “ Employee Benefits”:
A Defined Contribution Plan:
The company has recognised as an expense in the profit and loss account in respect of defined contribution plan
- Provident Fund of Rs. 2,11,076/- (Previous year Rs.2,18,871/-) administered by the Government.
B Defined benefit plan and long term employment benefit
General Description:
- Gratuity (Defined Benefit Plan):
- Leave Wages:
The leave wages are payable to all eligible employees at the rate of daily salary/wages for each day of
accumulated leave and are paid during the financial year itself. Therefore no liability is accrued at the end of the
financial year for leave benefits as per practice followed by the company year to year.
“(1) Fair Value of financial Assets and Liabilities are measured at Amortized cost is not materially different from the
Amortized cost Furthers impact of time value of money is not Significant for the financial instrument classified as
current. Accordingly fair value has not been disclosed seperately. ”
Types of inputs are as under:
Input Level I : (Directly Observable) which includes quoted prices in active markets for identical assets such as quoted
price for an Equity Security on Security Exchanges
Input Level II : (Indirectly Observable) which includes prices in active markets for similar assets such as quoted price
for similar assets in active markets, valuation multiple derived from prices in observed transactions involving similar
Input Level III : (Unobservable) which includes management's own assumptions for arriving at a fair value such as
projected cash flows used to value a business etc.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the
significant unobservable inputs used.
Financial instruments measured at fair value
Type Valuation technique
Equity Valuation Based on exchange rates listed on NSE/BSE stock exchange
B Financial Risk Management:-
The Company has exposure to the following risks arising from financial instruments:
Ý Credit Risk ;
Ý Liquidity Risk ; and
Ý Market Risk
- Interest Rate Risk
- Equity Risk
Risk Management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The Company manages market risk through a treasury department, which evaluates and
exercises independent control over the entire process of market risk management. The treasury department
recommends risk management objectives and policies, which are approved by Board of Directors. The activities of this
department include management of cash resources, borrowing strategies, and ensuring compliance with market risk
limits and policies.
The Company’s Risk Management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk Management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company’s Risk Management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company.
i Credit Risk
Credit Risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company's receivables from customers, investments in
debt securities and loans.
Credit Risk also arises from cash held with banks, credit exposure to clients, loans and advances given. The maximum
exposure to credit risk is equel to the carrying value of the financial assets. The company assesses the credit quality of
counter parties taking into account their financial position, past experience and other factors.
Other Financial Assets
The Company maintains its Cash and Cash equivalents and Bank deposits with banks having good reputation, good
past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.
Trade Receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry has an influence on credit risk assessment.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit
worthiness of customers to which the Company grants credit terms in the normal course of business.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on
actual credit loss experience and past trends. Based on the historical data, as per management perceptions, there is no
loss on collection of receivable on reporting date and hence Provision for 10% of Trade Receivable due more than 180
Days and 20% of more than 365 days has been made as Expected Credit loss.
ii Liquidity Risk
Liquidity Risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
Financial Liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company’s reputation.
iii Market Risk
Market Risk is the risk that changes in market prices - such as interest rates and equity prices - will affect the
Company’s income or the value of its holdings of financial instruments. We are exposed to market risk primarily
related to interest rate risk. Thus, our exposure to market risk is a function of borrowing activities. The objective of
market risk management is to avoid excessive exposure in our borrowing and costs.
a) Interest Rate Risk
Interest Rate Risk is the risk that the fair value or future Cash Flows of a financial instrument will fluctuate because of
changes in market interest rates.
Exposure to Interest Rate Risk
The Company’s Interest Rate Risk arises from borrowings obligations. Borrowings exposes to fair value interest rate
risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of
the Company is as follows:-
b) Equity Risk
Company does not have any investments in equity. Hence Company is not exposed to such risk.
38 Capital Management
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level of
dividends to ordinary shareholders.
The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net
debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents.
Adjusted equity comprises all components of equity.
39 Details of Loan given, Investment made and Guarantee given covered u/s 186(4) of the Companies Act.
The Company has not given any loan, has not made any investment or not given any guarantee which covered under
section 186(4) of the Companies Act.
40 Other Amendments with respect to Schedule III
1. The company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.
2. The company is not declared as wilful defaulter by any bank or financial Institution or other lender.
3. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the
Companies Act, 2013.
4. The company has no 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.
5. The company have not traded or invested in Crypto currency or Virtual Currency during the year.
6. The company does not have any transactions with companies struck off.
7. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
8. The company have 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.
9. The company have 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.
41 According to the management’s evaluation of events subsequent to the balance sheet date, there were no significant
adjusting events that occurred other than those disclosed / given effect to, in these financial statements as of April 25,
2024.
42 Approval of the Financial Statements
The Financial Statements of the Company has been approved in the board meeting held on 25th April, 2024.
1) Net Debt represents Current Borrowings Non Current Borrowings -Cash and Cash Equivalents
2) Earnings available for debt service represents Profit Before Tax Interest on Debt Depreciation unrealised
Debt Service represents Interest on Debt Scheduled principal repayment of non-current borrowings Current
3) maturity of debt, if any.
4) Capital Employed represents Total Equity Borrowings Deferred Tax liabilities.
5) Income generated from invested funds represents Fair value gain / (loss) on investments in MF.
6) Average Invested funds represents Average Investments in MF.
FOR, M. R. PANDHI & ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No.112360W
A.R.Devani Ashish D. Panchal Kantaben D. Panchal
Partner Managing Director Director
Membership No.170644 Din : 00598209 Din : 00598256
UDIN : 24170644BKFENF9088
Kalpesh N. Kansara Aayushi P. Shah
CFO Company Secretary
Ahmedabad, 25th April, 2024 Ahmedabad, 25th April, 2024
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