j) Provisions
A provision is recognised in the statement of profit and loss if, as a result of a past event, the
Company has a present legal or constructive obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will be required to settle the obligation. If the effect
of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Restructuring
A provision for restructuring is recognised in the statement of profit and loss when the Company
has approved a detailed and formal restructuring plan, and the restructuring either has
commenced or has been announced publicly. Future operating costs are not provided.
Onerous contracts
A provision for onerous contracts is recognised in the statement of profit and loss when the
expected benefits to be derived by the Company from a contract are lower than the unavoidable
cost of meeting its obligations under the contract. The provision 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 a provision is established, the Company recognises any
impairment loss on the assets associated with that contract.
Reimbursement rights
Expected reimbursements for expenditures required to settle a provision are recognised in the
statement of profit and loss only when receipt of such reimbursements is virtually certain. Such
reimbursements are recognised as a separate asset in the balance sheet, with a corresponding
credit to the specific expense for which the provision has been made.
Contingent liabilities and contingent assets
A disclosure for a contingent liability is made when there is a 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 recognised 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 asset and related income
are recognised in the period in which the change occurs.
k) Revenue Recognition
The Company's revenue is derived from sales of shares and other securites, service income and
income from providing financial services. Most of such revenue is generated from the sale of
securities. The Company has generally concluded that it is the principal in its revenue
arrangements.
Sale of goods/Securities
Revenue is recognized when the significant risks and rewards of ownership of the shares or
debentures have been transferred to the buyer, and there is no continuing managerial
involvement or effective control over the financial instruments. For a company trading shares,
revenue is realized when the ownership and control of the shares are effectively transferred to
the buyer, typically upon the execution and settlement of the transaction. Similarly, for trading of
debentures, revenue is realized when the debentures are sold, and the company no longer retains
significant risks and rewards associated w ith the ownership of the debentures.
Services
Revenue from services rendered, which primarily relate to financial services, is recognised in the
statement of profit and loss as the underlying services are performed. Upfront non-refundable
payments received under these arrangements are deferred and recognised as revenue over the
expected period over which the related services are expected to be performed.
Other Income
Other income consists of interest income on funds invested, dividend income and gains on the
disposal of assets. Interest income is recognised in the statement of profit and loss as it accrues,
using the effective interest method. Dividend income is recognised in the statement of profit and
loss on the date that the Company's right to receive payment is established. The associated cash
flows are classified as investing activities in the statement of cash flows. Finance cost consist of
interest expense on loans and borrowings.
Foreign currency gains and losses are reported on a net basis within other income and/or selling
and other expenses. These primarily include: exchange differences arising on the settlement or
translation of monetary items; changes in the fair value of derivative contracts that economically
hedge monetary assets and liabilities in foreign currencies and for which no hedge accounting is
applied; and the ineffective portion of cash flow hedges.
l) Borrowing Costs
Borrowing costs are recognised in the statement of profit and loss using the effective interest
method. The associated cash flows are classified as financing activities in the statement of cash
flows.
m) Income tax
Income tax expense consists of current and deferred tax. Income tax expense is recognised in the
statement of profit and loss except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities
are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements, except when the deferred
income tax arises from the initial recognition of goodwill or an asset or liability in a transaction
that is not a business combination and affects neither accounting nor taxable profits or loss at the
time of the transaction.
Deferred tax assets are recognized to the extent it is probable that taxable profit will be available
against which the deductible temporary differences and the carry forw ard of unused tax credits
and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences except in respect of
taxable temporary differences associated with investments in subsidiaries and foreign branches
w here the timing of the reversal of the temporary difference can be controlled and it is probable
that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period when the asset is realized or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting
date.
The Company offsets deferred tax assets and liabilities, where it has a legally enforceable right to
offset current tax assets against current tax liabilities, and they relate to taxes levied by the same
taxation authority' on either the same taxable entity, or on different taxable entities where there is
an intention to settle the current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realized simultaneously.
Deferred Tax includes MAT credit, if any and it is recognized as an asset only when and to the
extent there is convincing evidence that the Company will pay income tax higher than that
computed under MAT, during the period that MAT is permitted to be set off under the Income
Tax Act, 1961 for a specified period. Credit on account of MAT is recognized as an asset based on
the management's estimate of its recoverability' in the future.
n) Earnings per Share
The Company presents basic and diluted earnings per share ("EPS") data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders
and the weighted average number of ordinary shares outstanding for the effects of all dilutive
potential ordinary shares, which includes all stock options granted to employees.
o) Government Grants and Incentives
The Company recognises government grants only when there is reasonable assurance that the
conditions attached to them will be complied with, and the grants will be received. Government
grants received in relation to assets are presented as a reduction to the carrying amount of the
related asset. Grants related to income are deducted in reporting the related expense in the
statement of profit and loss.
Export entitlements from government authorities are recognised in the statement of profit and
loss as a reduction from "Cost of materials consumed" when the right to receive credit as per the
terms of the scheme is established in respect of the exports made by the Company, and where
there is no significant uncertainty regarding the ultimate collection of the relevant export
proceeds.
p) Treasury shares
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted
from equity. No gain or loss is recognised in statement of profit and loss on the purchase, sale,
issue or cancellation of the Company's own equity instruments. Any difference between the
carrying amount and the consideration, if reissued, is recognised in the securities premium.
q) Rounding Off
All amounts in Indian Rupees disclosed in the financial statements and notes have been rounded
off to the nearest Thousands unless otherwise stated.
r) Fair Value M easurement
The Company's accounting policies and disclosures require the determination of fair value, for
certain financial and non-financial assets and liabilities. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable,
further information about the assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability. Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or
liability or in the absence of a principal market, in the most advantageous market for the asset or
liability. The principal or the most advantageous market must be accessible by the Company. The
fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non-financial asset takes into account a
market participant's ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and
best use. The Company uses valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements at fair value on a
recurring basis, the Company determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each reporting period.
External valuers are involved for valuation of significant assets, such as assets acquired in a
business combination and significant liabilities, such as contingent consideration. Involvement
of external valuers is determined by the Management, based on market knowledge, reputation,
independence and whether professional standards are maintained.
16) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized for liabilities that can be measured only by using a substantial degree
of Estimation, if the company has a present obligation as a result of past event, a probable
outflow of Resource is expected to settle the obligation and the amount of obligation can be
reliably estimated.
Provisions, Contingent Liabilities are reviewed at each Balance sheet Date.
17) In the opinion of the Management, Current assets, Loans, and Advances have the value at
which they are Stated in the Balance Sheet, if realized in the ordinarily course of the Business.
18) As the Company has not received any intimation from "Suppliers" regarding their status
under Micro, Small and Medium Enterprises Development Act, 2006, whether there are any
outstanding balances for more than 45 days is not ascertainable
19) Subsequent Events.
There are no significant events that occurred after the balance sheet date.
20) Additional Regulatory information
L The Company is not in possession of any immovable property.
ii The Company has not revalued any of its Property, Plant and Equipment during the
year
iii. The Company has not granted any loans or advances in the nature of loans to
promoters, directors, KMPs and other related parties.
iv. There are no proceedings initiated or pending against the company for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made there under.
v. The Company has no borrowings from banks or financial institutions on the basis of
security of current assets and the quarterly returns or statements filed by the company
with such banks or financial institutions are in agreement with the books of account of
the Company.
vi. The Company is not declared as willful defaulter by any bank or financial Institution
or other lenders.
vii. The Company did not have any transactions with Companies struck off under Section
248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the
information available with the Company.
viii. There is no Scheme of Arrangements that has been approved in terms of sections 230
to 237 of the companies' act, 2013.
21) The Company does not have any transactions which are not recorded in the books of accounts
that has been surrendered or disclosed as income in the tax assessments under the Income
Tax Act, 1961 during the year.
22) The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial vear.
23) The company has not advanced/loans/invested or received funds (either borrowed funds or
share premium or any other sources or kind of funds to any other persons or entities,
including foreign entities (Intermediaries) with the understanding (whether recorded in
writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
24) The company has also 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
25) The Company is not covered under the provisions of section 135 of the Companies Act, 2013.
26) In the opinion of the management, the assets as shown in the financial Statements, have a
value on realization in the ordinary course of business of at least equal to the amount at which
they are stated in the balance sheet.
27) Balances in respect of some of the unsecured loans, and current liabilities are subject to
confirmation/reconciliation.
29) The following ratios are not applicable to the company:-
a. Debt service coverage ratio
b. Inventory Turnover Ratio
c. Trade receivables turnover ratio
d. Trade payables turnover ratio
e. Net capital turnover ratio
f. Net profit ratio
g. Return on investment Unquoted
30) Previous year's figures have been regrouped wherever necessary to conform to the layout
adopted in the current year.
31) Figures have been rounded off to the nearest Rupees in Lakhs.
SIGNATURE TO NOTES 1 To 31
As per our report of even date For and on behalf of the Board
For P. Murali & Co., M/s MARUTI SECURITES LIMITED
Chartered Accountants
Firm's Regn.No:007257S
A Krishna Rao B Srinivas K.Kavitha
Partner Director Director
M.No. 020085
Place: Hyderabad B Arun Garimella Rao Someshwara
Date: 30.05.2024 CFO Company Secretary
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