e. Provisions & Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.
A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognized in the financial statements. A contingent asset is disclosed where an inflow of economic benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits will arise, the assets and related income are recognized in the period in which the change occurs.
Onerous Contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before such a provision is made, the company recognizes any impairment loss on the assets associated with that contract.
f. Revenue
i. Sale of Products
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer,recovery of the consideration is reasonably certain, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably and stated net of Goods & Services Tax, Sales Tax, VAT, trade discounts and rebates.
ii. Income From Service :
Recognizes revenue in the statement of profit & loss proportionately with the degree of completion of service as per the contract with the customer.
iii. Income From Subscriptions:
Subscription income is recognized using the time proportion method for the charges agreed
with the customer.
iv. Interest Income or Expense
Interest income or expense is recognized using the effective interest method on time proportion method.
v. Dividend Income
Dividend income is recognized when the company's right to receive dividend is established, which is generally when shareholders approve the dividend.
g. Cost Recognition
Cost and expenses are recognized when incurred and have been classified according to their nature. The costs of the company broadly categorized in Raw material costs, Processing costs, storage costs, employee benefit expenses, selling and administrative and other expenses and depreciation and other amortization cost. Employee benefit expenses include employee compensation, allowances paid, contribution to provident fund and staff welfare and employee event expenses. Administrative and other expenses include fees to external consultants, facility expenses, travel expenses, communication expenses, repairs and maintenance, insurance, foreign exchange loss and other expenses.
h. Inventory
Inventories are valued at lower of cost or net realizable value.
Inventories of raw material, consumables and stores and spares are valued at cost as per FIFO method. Cost does not include duties and taxes that are subsequently recoverable.
Cost for the purpose of finished goods and material in process is computed on the basis of cost of material, labour and other related overheads or Net realizable whichever is lower.
i. Income Tax
Income tax comprises current and deferred income tax. Income tax expense is recognized in the statement of profit and loss.
i. Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. Current tax for current year and prior periods is recognized at the amount expected to be paid or recovered from the tax authorities, using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts and it is intended to realize the asset and settle the liability on a net basis or simultaneously.
ii. Deferred Tax & MAT
Deferred tax liability is recognized, subject to the consideration of prudence on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. Where there is unabsorbed depreciation or carry forward of losses, MAT Credit, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.
Minimum Alternate Tax credit is recognized as an asset only when and to the extent there is convincing evidence thatthe Company will pay normal income tax during the specified period. The Company reviews the same at each balancesheet date and writes down the carrying amount of mAt Credit Entitlement to the extent there is no longer convincingevidence to the effect that the Company will pay normal Income Tax during the specified period.
j. Borrowing Cost
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.
k. Cash & Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and shortterm deposit, which are subject to an insignificant risk of changes in value.
l. EBITDA
The company presents earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expense, finance costs and tax expense.
m. Earnings per share
Basic Earnings per share is calculated by dividing net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to the equity share holders by the weighted average number of equity shares outstanding during the period adjusted for the effects of all dilutive potential equity shares.
n. Prior Period Expenditure:
The change in estimate due to error or omission in earlier period is treated as prior period items. The items in respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not treated as prior period expenditure.
o. Extra-Ordinary Items:
The income or expenses that arise from event or transactions which are clearly distinct from the ordinary activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the impact of the same on current profit can be perceived.
p. Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006
Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro and Small Enterprises.
The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2022 as Micro, Small or Medium enterprises. Consequently, the amount paid/payable to these parties could not be ascertainable.
There are no micro and small enterprises, as defined in the micro and small enterprises development act, 2006, to whom the company owes dues on account of principal amount together with the interest and accordingly no additional disclosures have been made. The above information regarding micro and small enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
q. Employee Benefits:
The company at present does not have any defined benefit plan or defined contribution plan including the gratuity liability as the company has not reached the threshold limit for applicability basing on the number of employees.
b) Terms/right attached to equity shares
The Company has only one class of equity shares having par value of Rs.10/- per share. All equity shares rank pari passu in terms of the voting rights and dividend. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of 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.
30 Previous Year Figures
Previous year figures have been regrouped/reclassified, where necessary, to conform to this year's classification.
31 Rounding Off
Depending upon the Total Income of the company, the figures appearing in the Financial Statements have been rounded off to the nearest Thousands or decimals thereof.
As per our report of even date For and on Behalf of the Board of Directors of
For DHANUNJAYA & HARANATH M/s CONTAINE TECHNOLOGIES LIMITED
Chartered Accountants ICAI Firm Reg., No: 014288S
Sd/- Sd/-
Sd/- ANAND KUMAR SEETHALA BOTCHA BHAVANI
DHANUNJAYA KUMAR ALLA Managing Director Wholetime Director
Partner DIN:01575973 DIN:02299110
Membership No. 206446
UDIN: 24206446BKANVH7050 Sd/- Sd/-
JANARDHAN MANDALA NIKITHA SARDA
Place: Hyderabad CFO (KMP) Company Secretary (KMP)
Date: 29.05.2024
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