p) 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 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
any one item included in the same class of obligations may be small.
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 passage of time is recognised as interest expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company
or a present obligation that is not recognised because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognised because it cannot be measured reliably. The Company does not recognise a
contingent liability but discloses its existence in the standalone financial statements.
q) Employee Benefits
i) Short-Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within
twelve months after the end of the period in which the employees render the related service are recognised in
respect of employees' services up to 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.
ii) Post-Employment Obligations
The Company operates the following post-employment schemes:
(a) Defined benefit plan (Gratuity)
(b) Defined contribution plans (Provident Fund).
Defined Benefit Plan (Gratuity)
The liability recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of
the defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated
annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation 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.
Re-measurement gains and losses arising from 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 from plan amendments or curtailments
are recognised immediately in profit and loss as past service cost.
Defined Contribution Plans
The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once 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.
r) Contributed Equity
Equity Shares are Classified as Equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
s) 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.
t) Earnings Per Share
Basic Earnings Per Share
Basic earnings per share are calculated by dividing the profit or loss for the year attributable to equity to the
owners of the Company by the weighted average number of equity shares outstanding during the year.
The Company does not have any dilutive potential equity shares.
u) Rounding of Amounts
All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest
thousands upto two decimal places as per the requirement of Schedule III, unless otherwise stated.
Note 2: Critical Estimates and Judgement
The preparation of standalone financial statements requires the use of accounting estimates which, by definition,
will seldom equal the actual results. Management also needs to exercise judgement in applying the Company's
accounting policies. This note provides overview of the areas that involved a higher degree of judgement or
complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions
turning out to be different than those originally assessed. Detailed information about each of these estimates
and judgements is included in relevant notes together with information about the basis of calculation for each
affected line item in the standalone financial statements.
Critical Estimates and Judgements
The areas involving critical estimates or judgements are:
• Estimates of defined benefit obligation - Note 14
• Estimate of useful life of fixed assets - Note 3(a)
Estimation and judgements are continuously evaluated. They are based on historical experience and other
factors including expectation of future events that may have a financial impact on the Company and that are
believed to be reasonable under the circumstances.
(A) Leave Obligation
The amount of the provision is presented as current and non-current based on past experience, the
Company does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months.
(B) Defined Contribution Plans
The Company has defined contribution plan for its employees' retirement benefits comprising Provident
Fund & Employees' State Insurance Fund. The Company and eligible employees make monthly
contribution to the above mentioned funds at a specified percentage of the covered employees salary.
The obligation of the Company is limited to the amount contributed and it has no further contractual
or any constructive obligation. The expense recognised during the period towards Employees' State
Insurance is Rs. 0.29 Lacs (March 31,2024: Rs.0.76 Lacs).
(C) Post-Employment Obligations
Defined Benefit Plans- Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a
unfunded plan.
Note:
1. The base liability is calculated at discount rate of 6.55% per annum and salary inflation rate of 0.00%
per annum for all future years.
2. Liabilities are very sensitive to salary escalation rate, discount rate & withdrawal rate.
3. Liabilities are very less sensitive due to change in mortality assumptions. Hence, sensitivities due to
change in mortality are ignored.
iv. Risk Exposure: Through its defined benefit plans, the Company is exposed to a number of
risks, the most significant of which are detailed below:
Interest Rate Risk: The plan exposes the Company to the risk of fall in the interest rates. A fall in the interest
rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an
increase in the value of the liability (as shown in financial statements)
Salary Escalation Risk: The present value of the defined benefit plan is calculated with assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have
a bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumption in valuation of the
liability. The Company is exposed to the risk of the actual experience turning out to be worse.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirement of the Payment of Gratuity
Act, 1972 (as amended from time to time). There is a risk of change in regulation requiring higher gratuity
payouts.
Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This
may arise due to non-availability of enough cash / cash equivalent to meet the liabilities or holding of
illiquid assets not being sold in time.
v. Defined Benefit Liability and Employer Contributions
The Company's best estimate of contribution towards post-employment benefit plans for the year ended
March 31, 2026 are Rs. 39.95 Lacs (year ended March 31, 2025 are Rs. 34.91 Lacs)..
The expected maturity analysis of undiscounted gratuity is as follows:
Note 1 : Dues to Micro and Small Enterprises (MSME) have been determined to the extent such parties
have been identified on the basis of information collected by the management.
Note 2: No interest has been provided in the books of account for delayed payments to suppliers registered
under the MSMED Act, 2006
34. Corporate Social Responsibility Expenditure
The Company has incurred expenditure on CSR activities like promotion of education. Such direction and
guidance have been driven by principled approach, under which the Company spends for CSR activities.
**The fair values of the investments is measured using quoted prices or NAV declared by mutual funds and
are classified as level 1 fair values in the fair value hierarchy.
(i) Fair Value Hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity
instruments (including debentures) which are traded in the stock exchanges is valued using the closing
price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
Notes to the Standalone Financial Statements for the year ended 31st March 2025
(Amount in Rs lacs, unless otherwise stated)
There are no transfers between levels 1 and 2 during the year.
The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the
end of the reporting period.
(ii) Fair Value of Financial Assets and Liabilities Measured at Amortised Cost
The carrying amounts of Trade Receivables, Trade Payables, Cash and Cash equivalents, Other Bank
Balances, Loan (Current), Other Financial Assets (Non-current), Other Financial Liabilities, are considered to
be the same as their fair values, due to their short-term nature.
Majorly the security deposits and bank deposits are redeemable on demand and hence the fair values of
security deposits and bank deposits are approximately equivalent to the carrying amount.
The Borrowings (Current), Lease Liabilities (Including Current portion) are carried at amortised cost. There
is no material difference between carrying amount and fair value of Borrowings (Current), Lease Liabilities
(Including Current portion) as at 31 March 2025 and 31 March 2024.
38. Financial Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk.
The Company's board of directors has overall responsibility for the establishment and oversight of the
Company's risk management framework.
(A) 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. The carrying amounts of financial assets represent the maximum credit risk exposure.
A default on a financial asset is when the counterparty fails to make contractual payments as per agreed
terms. This definition of default is determined by considering the business environment in which entity
operates and other macro-economic factors.
Assets are written off when there is no reasonable expectation of recovery. The Company writes off debtors
when they fail to make contractual payment greater than 5 years past due.
The Company considers the probability of default upon initial recognition of asset and whether there has
been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess
whether there is a significant increase in credit risk the Company compares the risk of a default occurring
on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers
available reasonable and supportive forwarding-looking information.
Credit risk refers to the risk of default on its obligation by the counter party resulting in financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivable amounting to
Rs. 1711.71 lacs and Rs. 330.58 lacs as at 31 March 2025 and 31 March 2024, respectively. The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The management also considers the factors that may influence the credit risk of its customer base,
including the default risk of the industry and country in which customers operate. The Company has a
credit risk management policy in place to limit credit losses due to non-performance of financial counter
parties and customers. The Company monitors its exposure to credit risk on an ongoing basis at various
levels. Outstanding customer receivables are regularly monitored. The Company closely monitors the
acceptable financial counter party credit ratings and credit limits and revise where required in line with the
market circumstances.
Due to the geographical spread and the diversity of the Company's customers, the Company is not subject
to any significant concentration of credit risks at balance sheet date.
On account of adoption of Ind AS 109, the Company uses a simplified approach (lifetime expected credit
loss model) for the purpose of computation of expected credit loss for trade receivables.
Significant Estimates: The impairment provisions for financial assets disclosed above are based on
assumptions about risk of default and expected loss rates. The Company uses judgment in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company's past history,
existing market conditions as well as forward looking estimates at the end of each reporting period. For
trade receivables only, the Company applies the simplified approach permitted by Ind AS 109, "Financial
Instruments", which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Management judgment is required for assessing the recoverability of trade receivables and the valuation
of the allowances for impairment of trade receivables. The Company makes impairment allowance for trade
receivables based on an assessment of the recoverability of trade receivables. Allowances are applied to
trade receivables where events or changes in circumstances indicate that the balances may not be
collectible. The impairment allowance is estimated by management based on historical experience and
current economic environment, The Company assesses the expected credit losses by calibrating historical
experience with forward-looking estimates. This may include information regarding the industry in which
debtors are operating, historical and post year-end payment records, as well as creditworthiness of debtors.
Cash & Cash Equivalents and Bank Deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly
rated banks and diversifying bank deposits accounts in different banks across the country.
Other Financial Assets Measured at Amortised Cost
Other financial assets measured at amortised cost includes security deposits and others. Credit risk related
to these other financial assets is managed by monitoring the recoverability of such amounts continuously.
(B) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding to meet obligations when due. Management monitors rolling forecasts of the
Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of Financial Liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of
netting agreements.
To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. The
majority of the Company equity investment is publicly traded.
39. Events Occurring After the Reporting Period
In respect of the financial year ending March 31, 2025, no events are required to be reported which occurred
after the reporting period.
39. Capital Management
The Company's objectives when managing capital are to:
• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and
• Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. No changes were
made in the objectives, policies or processes for managing capital during the year ended March 31, 2025 and
March 31, 2024.
The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the
reporting period.
Dividends
The Company have not paid Dividend for Current and Previous Financial Year.
41. The Company has not entered into any transaction with the struck off Companies.
42. Capitalisation of expenditure incurred in development of Software
The Company has capitalized employee benefits expenses that are directly attributable to the
development of intangible assets, primarily software development. These costs form part of the development
phase and meet the recognition criteria.
During the year ended March 31,2025 employee benefits expense amounting to Rs 590.27 lacs (March 31,
2024: Rs 289.83 lacs) has been capitalized as part of intangible assets under development. These costs pertain
to salaries of technical staff engaged in development activities. The amortization of such capitalized salary
costs commences once the asset is available for use and is included under depreciation and amortization
expense in the Statement of Profit and Loss. The management performs regular assessments to ensure that
the recognition criteria are consistently met and that the development projects continue to be technically and
commercially feasible.
1. Net Debt = Total Borrowings
2. Earnings = Net Profit Before Tax Depreciation and Amortization Finance Cost Non-Cash Expense
3. Net Finance Charges = Interest and Principal Repayments Including Lease Payments
4. Average Net worth Calculated on the year end closing basis.
5. Average Inventory Calculated on the year end closing basis.
6. Average Working Capital = Current Assets - Current Liabilities.
7. Capital Employed = Total Assets - Current Liability
44. Additional Regulatory Information Required by Schedule III of Companies Act, 2013
i. Details of Benami Property:
No proceedings have been initiated or are pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
ii. Utilization of Borrowed Funds and Share Premium:
A. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium
or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) 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 funding party (ultimate beneficiaries) or
b. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
c.
B. The Company has not received any funds 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 to or on behalf of the ultimate beneficiaries.
iii. Compliance with Approved Scheme(s) of Arrangements:
No scheme of arrangement has been approved by the Competent Authority in terms of Sections 230
to 237 of the Companies Act, 2013, hence, this is not applicable.
iv. Undisclosed Income:
There are no transactions not recorded in the books of account that have been surrendered or
disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961.
v. Details of Crypto Currency or Virtual Currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.
vi. Valuation of Property, Plant and Equipment and Intangible Assets:
As the Company has chosen cost model for its Property, Plant and Equipment (Including Right-of-
Use Assets) and Intangible Assets, the question of revaluation does not arise.
vii. Loans or Advances to Specified Persons:
The Company has granted loans or advances in the nature of loans to promoters, directors, KMPs or
the related parties (as defined under Companies Act, 2013).
viii. Borrowings Secured Against Current Assets:
The Company has no Borrowings secured against Current Assets.
ix. Willful Defaulter:
The Company has not been declared Willful Defaulter by any bank or financial institution or
government or any government authority.
x. Registration of Charges or Satisfaction with Registrar of Companies:
There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the
statutory period.
xi. Compliance with Number of Layers of Companies:
The Company complies with the number of layers prescribed under clause (87) of Section 2 of the
Act read with Companies (Restriction on number of Layers) Rules, 2017.
xii. Utilization of Borrowings Availed from Banks and Financial Institutions:
The borrowings obtained by the Company have been utilized for the purpose for which the same was
obtained.
45. Previous year's figures have been reclassified to conform to current year's classification.
For Amit Ramakant & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration Number: 009184C
AMIT AGARWAL CHANDAN GARG KAPIL GARG
Partner Chairman & Managing Director Whole Time Director
Membership Number: 077407 (DIN: 06422150) (DIN: 07143551)
SANJEEV MITTAL VASU AJAY ANAND
Chief Financial Officer Company Secretary
Place: Jaipur Place: Jaipur
Date: 29 May 2025 Date: 29 May 2025
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