1.13 Provisions, Contingent Liabilities &ContingentAssets
Provisions are recognized when thecompany has a present obligation
(legal or constructive) as a result of a past event, and it is probable that
an outflow of economic benefits will be required to settle the obligation
and a reliable estimate of the amount of the obligation can be made.
Where the time value of money is material, provisions are stated at the
present value of the expenditure expected to settle theobligation.
All provisions are reviewed at each bala nee sheet date and adjusted to
reflect the current bestestimate.
Where it is not probable that an outflow of economic benefits will be
required, or the amount cannot be estimated reliably, the obligation is
disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, wnose existence
will only be confirmed by the occurrence or non-occurrence of one or
more future uncertain events not wholly within the control of the
company, are also disclosed as contingent liabilities unless the
probability of outflow of economic benefits is remote
Contingent Assets are not recognised in the financial statements.
However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is
appropriate.
1.14 Earnings per share
Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding
during the period. Diluted earnings per shares is computed by dividing
the profit after tax by the weighted average nu mber of equity shares
considered for deriving basic earnings per shares and also the
weighted average number of equity shares that could have been
issu ed u pon con version of all dilutive potential eq uity s hares.
1.15 Judgements, Estimates and Assumptions
The preparation of the financial statements in conformity with Ind AS
requires management to make estimates, judgements and
assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of financial statements and
the amount of revenue and expenses during the reported period.
Applications of accounting policies involving complex and subjective
judgements and the use of assumptions in these financial statements
have been disclosed. Accounting estimates could change from period
to period. Actual results could differ from those estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimate are recognised in the period in which
the estimates are revised and, if material, their effects are disclosed in
the notes to the financial statements.
1.15.1 Judgements
In the process of applying the Company's accounting policies,
management has made the following judgements, which have the
most significant etfecton the amounts recognised in the consolidated
financial statements:
1.15.1.1 Formulation ofAccounting Policies
Accounting policies are formulated in a manner that result in financial
statements containing relevant and reliable informationabout the
transactions, other events and conditions to which they apply. Those
policies need not be applied when the effect of applying them is
immaterial.
In the absence of an Ind AS that specifically applies to a transaction,
other event or condition, management has used its judgement in
developing and applying an accounting policy that results in
information that is:
a) relevant to the economic decision-making needs or users and
b) reliable in thatfinancial statements:
(i) represent faithfully the financial position, financial
performance and cash flows of the entity, (ii) reflect the
economic substance of transactions, other events and
conditions, and not merely the legal form; (iii) are neutral,
i.e. free from bias; (iv)are prudent; and (v) are complete in
all material respects ona consistent basis
In making the judgement management refers to, and considers the
applicability of, thefollowingsources in descending order:
(a) the requirements in Ind ASs dealing with similar and related issues;
and
(b) the definitions, recognition criteria and measurement concepts for
assets, liabilities, income and expenses in the Framework.
In making the judgement, management considers the most recent
pronouncements of International Accounting Standards Board and in
absence thereof those of the other standard-setting bodies that use a
similar conceptual framework to develop accounting standards, other
accounting literature and accepted industry practices, to the extent that
thesedo not conflict with thesources in above paragraph.
1.15.1.2 Materiality
Ind AS applies to items which are material. Management uses
judgment in deciding whether individual items or groups of item are
material in the financial statements. Materiality is judged by reference
to the size and nature of the item. The deciding factor is whether
omission or misstatement could individually or collectively influence
the economic decisions that users make on the basis of the financial
statements. Management also uses judgement of materiality for
determining the compliance requirement of the Ind AS. In particular
circumstances either the nature or the amount of an item or aggregate
of Items could be the determining factor. Further an entity may also be
required to present separately immaterial items when required bylaw.
1.15.2 Estimates and assumptions
The key assumptions concerning the future and other key sources of
estimation uncertainty at the reporting date, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The
Company based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
1.15.2.1 Impairment of non-financial assets
There is an indication of impairment if, the carrying value of an asset or
cash generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use.
Company considers individual PPE as separate cash generating units
for the purpose of test of impairment. The value in use calculation is
based ona DCF model. The cash lows arederived from the budget for
the next five years and do not include restructuring activities that the
Company is not yet committed to or significant future investments that
will enhance the asset's performance of the CGU being tested The
recoverable amount is sensitive to the discount rateused forthe DCF
model as well as the expected future cash-inflows and thegrowth rate
usedforextrapolation purposes.
1.15.2.2Taxes
Deferred tax assets are recognised for unused tax tosses to the extent
that it is probable that taxable profit will be available against which the
losses can be utilised. Significant management judgement is required
to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits
tog ether with future tax pla nning strategies.
1.15.2.3 Defined benefit plans
The cost of the defined benefit gratuity plan and other post¬
employment medical benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of
the discount rate, future sa lary i ncreases and mortality rates.
Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting
date. The parameter most subject to change is the discount rate. In
determining the appropriate discount rate for plans operated in India,
the management considers the interest rates of government bonds in
currencies consistent with the currencies of the post-employment
benefit obligation.
1.15.2.4 Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on quoted
prices in active markets, their fair value is measured using valuation
techniques Including the DCF model. The Inputs to these models are
taken from observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instrum ents.
1.16 Recent Accounting Pronouncement
On 31 st March, 2023, Ministry of Company Affairs has amended
the Companies (Indian Accounting Standards) Amendment Rule,
2023, applicable from 1 stAprll,2023, as below:
Ind AS 103-Business Combination:
The amendment required the newdisclosureinrespectofdateon
which the transferee Obtains the control of the transferor. The
company does not expect the amendments to Flave any impact in
its financials.
Ind AS 107- Financial Instruments Disclosure:
The companies (Indian Accounting Standards) Amendment Rule
2023 has amended paragraph21 and paragraph B5of Ind AS
107, thereby requiring companies to disclose their Material
Accounting Policy Disclosure rather than their significant accounting
policy The company does not Expect the amendments to have any
impactin its financials.
Ind AS 1 - Presentation of Financial Statements:
The a mendment states that:
- Companies should disclose the material accounting policies rather
thanthe significant accounting Policies.
- Clarifies that accounting policies relate to immaterial transactions,
other events or conditions are themselves are immaterial and
therefore need not to be disclosed. The company does not expect
the amendments to have any impactin its financials.
Ind AS 8- Accounting Policies, Changes in Accounting Estimates
and Errors:
The amendment rule 2023 inserted the definition of accounting
estimate and omitted the change in Accounting estimate. But
thecompany does not expecttheamendmentstohaveanyimpact
in its Financials.
Ind AS 12 -Income Taxes:
Amendment RULE 2023 have issued certain amendments to Ind AS
12. The amendments have been made to narrow the scope of In Itlal
recognition exemption ,i.e., it no longer a pply to transactions that, on
initial recognition .give rise to equal taxable and deductible temporary
difference .With effect from 1st April, 2023 , the initial recognition
exemption will be read asunder:
-At the time oftransaction , affect neither accounting profit nor taxable
profit (tax loss);
- At the time of transaction, does not give rise to equal taxable and
deductible temporary difference.
The company does not expect the amendments to have any impact in
its financials.
27 FINANCIAL RISK MANAGEMENT OBJECTIVES:
The Company nas a system-based approach to risk management, anchored to policies and procedures and Internal financial controls
aimed atensunng early Identification, evaluation and management of key financial risks (such as market nsk, credit risk and liquidity nsk)
that may arise as a consequence of Its business operations as well as Its Investing and financing activities. Accordingly, the Company's
nsk management framework nas trie objective of ensuring that such nsks are managed within acceptable and approved risk parameters In
a dlsclplned and consistent manner and In compliance wltn applicable regulation. It also seeks to drive accountability In this regard.
Liquidity Risk:
The company current assets aggregate to Rs 304.19 Lacs( P.Y. 2022-23 Rs 304.44 Lacs) Including Trade receivable , cash and cash
equivalent, loans and other financial assets of Rs 235.75 Lacs ( RY. 2022-23 Rs 247.74 lacs) against aggregate current liability Rs 60.94
lacs ( P.Y. 2022-23 Rs 65.0llacs) on the reporting date.
Further, while the company's total equity stands 275.21 lacs ( P.Y. 228.10 lacs) It has borrowing of Rs 48 lacs ( PY. 2022-23 Rs 88 lacs ).
In such circumstances liquidity risk, or the risk that the company may not be able to settle or meet Its obligations as they become due does
not exist.
Market Risks:
The Company is not an active investor in equity markets.
Foreign Currency Risk:
The Company has no exposure in foreign currency and therefore ,the company does not have foreign currency risk.
Credit Risk:
The Company’s historical experience of collecting
FAIR VALUE MEASUREMENT:
Fair value hierarchy:
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3:
Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The fair value of trade receivables, trade payables and other Current financial assets and liabilities is
considered to be equal to the carrying amounts of these items due to their short-term nature.
30 The company did not enter any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560
of the Companies Act, 1956. There is no outstanding balanceswith struck off companies.
31 The company did not held any Benami Properties and no proceedings has been initiated or pending against the company for holding
any benami property under the Benami Transactions (Prohibiton) Act, 1988 (45 of 1988) and rules made thereunder.
32 The company has complied with number of layers of company.
33 The company has not entered into any scheme of arrangements and no scheme of arrangements has been approved by the
Competent Authority in terms of section 230 to 237 of Companies Act, 2013.
34 Figures of previous year have been regrouped and recasted to conform to the layout of the accounts for the current year.
35 Approval of Financial Statements:
The Financial Statements were approved by the Board of Directors on 27.05.2024
As per our report of even date attached
For P. L. Tandon & Co.
Chartered Accountants DINESH KHANDELWAL K.N. KHANDELWAL
Registration No 000186C (Director-Finance & CFO) (Chairperson)
VW ioov* DIN 00161831 DIN I 00037250
P.P. SINGH SATYANSHA DUBEY V.N. KHANDELWAL ASHOK GUPTA
(Partner) (Company Secretary) (Whole Time Director) (Independent Director)
Membership No. 072754 M. No. A67216 DIN : 00161893 DIN : 00135288
Place: Kanpur
Date: 27.05.2024 i _ _ i
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