14. Provisions, Contingent Liabilities & Contingent Assets
Provisions for contingent liabilities are accounted for as follows:
Provisions for contingent liabilities are accounted for as follows:
• Recognition: A provision is recognized when:
o The company has a present obligation (legal or constructive) as a result of a past event. o It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.
o A reliable estimate can be made of the amount of the obligation, in accordance with AS 29, Provisions, Contingent Liabilities, and Contingent Assets.
• Contingent Liabilities:
o Contingent liabilities are disclosed, but not recognized, in the financial statements. These are potential o bligatons that arise from past events whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. o Contingent liabilities are disclosed in the financial statements unless the possibility of an outflow of resources is remote.
• Contingent Assets:
o Contingent assets are not recognized in the financial statements. They are disclosed when an inflow of economic benefits is probable.
15. Cash and Cash Equivalents
Cash and cash equivalents are accounted for as follows:
•
Definition: Cash and cash equivalents include cash on hand, demand deposits with banks, and short-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value, as per AS 3, Cash Flow Statements.
•
Recognition and Measurement:
o Cash and cash equivalents are initially recognized at cost.
o They are measured at face value or amortized cost, where appropriate, and reported on the balance sheet under current assets.
•
Cash Flow Statements:
o The company prepares a cash flow statement to provide information about the cash inflows and outflows from operating, investing, and financing activities. This statement is presented using the indirect method, adjusting net profit or loss for the effects of non-cash transactions and changes in working capital.
16. Earnings Per Share •
The earnings in ascertaining the Company's EPS comprises the net profit after tax attributable to equity shareholders and includes the post-tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax attributable to Equity Shareholders (including the post-tax effect of extra ordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relatng to the dilutve potental equity shares, by the weighted average number of equity shares which could have been issued on conversion of all dilutve potental equity shares. Potental equity shares are deemed to be dilutve only if their conversion to equity shares would decrease the net profit per share from contnuing ordinary operatons. Potental dilutve equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutve potental equity shares are determined independently for each period.
17. Investments
a) In Foreign Subsidiaries
Investments in foreign subsidiaries are accounted for as follows:
• Inital Recogniton: Investments in foreign subsidiaries are initally recognized at cost, which includes the purchase price and any directly attributable costs, in accordance with AS 13, Accountng for Investments.
• Subsequent Measurement:
• These investments are carried at cost less any impairment losses. The cost of investments includes the amount paid for acquisiton and any costs directly attributable to the acquisiton.
• The carrying amount of these investments is adjusted for any foreign currency translaton differences, as required by AS 11, The Effects of Changes in Foreign Exchange Rates.
• Foreign Currency Translation:
• The financial statements of the foreign subsidiaries are translated into Indian Rupees for consolidaton purposes. Assets and liabilites are translated at the closing rate, while income and expenses are translated at the average rate for the period.
• Exchange differences arising from the translaton of foreign subsidiary financial statements are recognized in other comprehensive income and are accumulated in a separate component of equity untl the disposal of the subsidiary.
• Dividends: Dividends received from wholly-owned foreign subsidiaries are recognized as income in the period they are declared.
• Impairment: The Company assesses its investments in wholly-owned foreign subsidiaries for impairment whenever there is an indicaton that the investment may be impaired. An impairment loss is recognized if the carrying amount of the investment exceeds its recoverable amount.
* Disclosures:
* The financial statements disclose the nature of the relationship with the foreign subsidiaries, the nature and extent of significant restrictons on the ability of the subsidiary to transfer funds to the
* parent in the form of cash dividends or repaying loans, and the parent's interest in the foreign subsidiaries.
* Additonal disclosures include the amount of any foreign exchange differences recognized in other comprehensive income and a summary of the financial positon and results of operatons of the foreign subsidiaries.
b)In Indian Subsidiaries Recognition
* Investments in other subsidiaries are recognized at cost.
Measurement
* Initial Measurement: At cost, which includes the purchase price and any directly attributable costs.
* Subsequent Measurement: Investments are accounted for using the cost method or equity method:
* Cost Method: Recorded at cost and not subsequently adjusted.
* Equity Method: Adjusted for the parent's share of the subsidiary's profit or loss, and other comprehensive income.
Ounng thft yearen^d 111 IMairh 7074 the {i>rr|uny has KsiJRd 73i,JKIrnoo erpity shams of PH ID hI prerrauniof INK /O pKf kIime** in rorifjlu'iiK:*: will rtsfuninKflic of msi:Ikxi 47 mil
swactnri ft/ of IIk Ae:I hikI llr inks fciirmcl tiranaci
Holes 1 Sirin l)ivisiiiri uf Shari' Capital of (j>m|uiiy
During the Year ended 31 March 2024 the corrpany is here by accorded tor the sub division 40,'WO {hwty Mm I housand Nine Hundred) l-qiuty share of te. I no/- (]rw Hundred
CJniy} each of the Qnnnpnrfy info 4,00,HOD {hour lakh Neely Pfene thousand) fqnty Shares of Ul 10/ (Rupees Tun Only) mdi fully paid, rri such a rniniiui llul 1 fOne) equity 'diuiu uf fts. 100/ [Rupees I kindred only) shal const itute lO (Ten) equity shares of Rs.lC/ (Rupees Ten Only) each of the Corrfuirvy, without altenng the aggregate arrounf of such raptal and share so uktUxI s'Iki'II bu entitled Ur puitidfxili: ri full dividend lu by deularud after sub dirvEoun uf equity shares.
UMJ De-fault er
His contpaiy ha s not b sen d sclarad a-s i wilful Defaulter by ary Financ iil Ini tituticn or bant as- it ths da te of B aliu: s c hs st.
Rein don-: hip with Struck off Co cup nudes
His -C amp anv do net ha v= anv transac tions withcompanie s s truck off. legittraticn ofehns'ses or s ntisfiictiou with Re sis rear of Co sup nudes (ROC)
His contpaiy ha s no p sndins chain as or satis fac don which ars ist to be registered w itli ths ROC beyond ths Statutorv period.
CudqUadcc with number afbjier ofcompanies
His conpaiy has -aomplisd w-ith ths provision of ths number of layers prescribed under clause (37) of section 2 of ths Act rsad with ths Comuanie; iRestrktien on number of I-aveis^ Rules. 2017.
Compliance with approved Scheuic(i) of Arrangements
Hisrs ais no £chsnES of AropgemeniE has bssn approved by ths Ccn^tsnt Authority in tsnit of sections 230 to 23 7 of ths C ompanies Act 2013.
De crepancyin utilization QfboiTQwings
His camparylE.fi used ths borr-tv-iriES from bahts and finartiaL institutions for ths specific poipcse for which, it was taken at ths balance sheet data. Hisis ars no discrepancy in utilisation of ben-t*-'mgs.
Utilisation ofB arrowed funds and share premium:
(A) His company has not ad Ýsane sd or loansd or invested funds (either borrow sd funds or shars premium or ary other sourcss or land of funds) to ary other perscn(s) or entitv^jes). including xreign sntitiss (Intanrediariss).
His conpary hav= not advanced or loansd or invested funds to ary ether person^) or entity(j.es). including foreign sntitiss (jntsrriEdiaries>w- ith ths under stand ins that ths intermediary shall
a) d-irscth'orindirs:tlyl2n.d or invest -in othsr persons or sntitiss idantifisd in ary manner whatsoevsr by or on bshalf of ths compary (Ultimate B ensfk-iaries); or
b) prwde ary suaiantss. security or ths like to or on bshalf of ths Ultimate Bensic-iariss;
His Compary has® not received ary fund from ary person(s) or sntily^as). including forsisn sntitiss (funding Party) with ths understanding (whether racordad tn w-ritrig or otherwise) diat ths Cnrrpany shall
a) d-ir3cth'cr-indirsctly1snd or -invest -in ether persons or entities identified in ary manner whatsoever by or on bshalf of ths Funding Party (Ultimate Beneficiaries; or;
b) provide ary suaiantss. security or ths like on bshalf of ths Ultimate B snsic-iariss.
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