q. PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognised when the Group 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 Group 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 Group does not recognise a contingent liability but discloses
its existence in the Standalone financial statements.
r. 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) Other Long-Term Employee Benefit Obligations
The liabilities for compensated absences are not expected to be settled wholly within twelve months after the end of the
period in which the employees render the related service. These obligations are therefore measured as the present value
of expected future payments to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method less fair value of plan assets as at balance sheet date. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating to the terms of the related
obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions are recognised
in profit and loss.
The obligations are presented as provisions in the balance sheet as the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to
occur.
(iii) Post-Employment Obligations
The Group operates the following post-employment schemes:
(a) Defined benefit plan (Gratuity)
(b) Defined contribution plans (Provident Fund)
(iv) 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.
(v) Defined Contribution Plans (Provident Fund)
The Group pays provident fund contributions to publicly administered provident funds as per local regulations. The
Group 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.
s. 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.
t. 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.
u. EARNINGS PER SHARE
Basic Earnings Per Share
Basic earnings per share is calculated by dividing the profit or loss for the year attributable to equity to the owners
of the Group by the weighted average number of equity shares outstanding during the year.
The Group does not have any dilutive potential equity shares.
v. ROUNDING OF AMOUNTS
All amounts disclosed in the Standalone financial statements and notes have been rounded off to the nearest lakhs
upto two decimal places as per the requirement of Schedule III, unless otherwise stated.
w. NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP
The Ministry of Corporate Affairs notified new standards or amendments to existing standards under the Companies
(Indian Accounting Standards) Rules, as issued from time to time.
The Group applied the following amendments for the first time during the current year, which are effective from 1
April 2024:
i) Amendments to Ind AS 116 - Lease liability in a sale and leaseback
The amendments require an entity to recognise lease liability, including variable lease payments which are not linked to
an index or a rate, in a way that does not result in a gain on the Right of Use asset it retains.
ii) Introduction of Ind AS 117
MCA notified Ind AS 117, a comprehensive standard that prescribes recognition, measurement, and disclosure
requirements, to avoid diversities in practice for accounting insurance contracts. It applies to all companies, i.e., to all
"insurance contracts” regardless of the issuer. However, Ind AS 117 is not applicable to entities which are insurance
companies registered with IRDAI.
2.1. CRITICAL ESTIMATES AND IUDGEMENT
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 Group'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.
The areas involving critical estimates or judgements are:
• Estimates of defined benefit obligation
• Estimate of useful life of property, plant and equipment
• Measurement of Contingent Liabilities
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 Group and that are believed to be
reasonable under the circumstances.
2.2. STANDARDS ISSUED RUT NOT YET EFFECTIVE
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. There are no such recently issued standards or
amendments to the existing standards for which the impact on the Standalone Financial Statements is required to be
disclosed.
(iii) Variable Lease Payments
Some property leases contain variable payment terms that are linked to sales generated from a store. Variable payment terms are used for a variety of reasons, including minimising the fixed costs
base for newly established stores. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs.
(iv) Extension and Termination Options
Extension and termination options are assessed at the inception of the lease and reviewed periodically.
(v) Residual Value Guaranteed
There are no residual value guaranteed in the lease contracts.
(vi) For maturity analysis of lease liabilities refer note 41(B).
Nature and Purpose of Reserves
(a) Securities Premium: Securities premium is used to record the premium on issue of shares and premium on conversion of
warrants. The reserve is utilised in accordance with the provisions of the Act.
(b) FVOCI Debt Instruments: The fair value changes of investment in bonds are accumulated within the FVOCI debt
instruments within equity. The Company transfers amounts from this reserve to retained earnings when the relevant
debentures are sold.
(c) General Reserve : General Reserve created in earlier years is available for use in accordance with the Act.
Note :
a) Kotak Mahindra Bank CC Account
The Bank overdraft is primarily secured by exclusive charge on all existing and future receivables / current assets/ moveable assets and
first and exclusive equitable mortgage charge on residential Property situated at B 32 to 43, Mahapura Sanganer, B Block, Garden
Estate, Jaipur, Rajasthan - 302029 in the name of Anuj Mundhra & Vandana Mundhra and Sunita Devi Mundhra. Further, it is secured
by personal guarantee's of Anuj Mundhra, Vandana Mundhra, Sunita Devi Mundhra & Dwarka Dass Mundhra and other collateral
owners. The Applicable rate of interest on CC limit is Repo rate 3% p.a.
(A) Compensated absences
The entire amount of the provision of Rs.4.24 lakhs (31 March 2024: Nil) is presented as current, since the Group does not
have an unconditional right to defer settlement for any of these obligations.The following amounts reflect leave that is not
expected to be taken or paid within the next 12 months.
(B) Defined contribution plans
The Group has defined contribution plan for its employees' retirement benefits comprising Provident Fund & Employees’ State
Insurance Fund. The Group and eligible employees make monthly contribution to the above-mentioned funds at a specified
percentage of the covered employees salary. The obligation of the
Group is limited to the amount contributed and it has no further contractual or any constructive obligation. The expense
recognised during the year towards
provident fund is Rs. 5.32 lakhs (31 March 2024: Rs. 3.96 lakhs). The expense recognised during the period toward
Employees 'State Insurance is Rs.2.49 lakhs
(31 March 2024: Rs 2.64 lakhs).
(C) Post-employment obligations
Defined benefit plans- Gratuity
The Group 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 above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes
in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions use in preparing the sensitivity analysis did not change compared to the prior period.
(vi) Risk exposure
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant on which are detailed below:
Interest rate risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan's
debt investments.
Salary escalation risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase
in the salary of the plan participants will increase the plan’s liability.
Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on
government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.
Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during
and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
(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 which are
traded in the stock exchanges is valued using the closing price as at the reporting period.
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. There are no
instruments categorised 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. There are no instruments categorised in level 3. There are no transfers between levels 1 and 2 during the year. The
Company'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, other financial
assets, other financial liabilities, short term borrowings, lease liabilities are considered to be the same as their fair values,
due to their short-term nature.
Majorly the security deposits and fixed deposits are redeemable on demand. Hence the fair values of security deposits and
bank deposits are approximately equivalent to the carrying amount. The Non-current borrowings are carried at amortised
cost. There is no material difference between carrying amount and fair value of non-current borrowings as at 31 March
2024 and 31 March 2025.
Other note:
The investment in equity shares of subsidiary are measured at cost. Refer note 4 for further details.
(iii) Financial risk management
The Group's activities expose it to market risk, liquidity risk and credit risk. The Group's board of directors has overall re
establishment and oversight of the Group's risk management framework.
(A) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group'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 Group 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 year. To assess whether there is a significant increase in credit risk the Group 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.
T rade and other receivables
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. 3552.65 lakhs and Rs.
2197.67 lakhs as at 31 March 2025 and 31 March 2024, respectively. The Group'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
Group has a credit risk management policy in place to limit credit losses due to non-performance of financial counterparties
and customers. The Group monitors its exposure to credit risk on an ongoing basis at various levels. Outstanding customer
receivables are regularly monitored. The Group closely monitors the acceptable financial counterparty 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 Group's customers, the Group is not subject to any significant
concentration of credit risks at balance sheet date. On account of adoption of Ind AS 109, the Group uses a simplified
approach (lifetime expected credit loss model) for the purpose of computation of expected credit loss for trade receivables.
The Group calculates expected credit loss on its trade receivables using 'allowance matrix' and also takes into account
'delay risk' on 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 Group uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on the Group's past history, existing market conditions as well as forward looking estimates at the end of
each reporting year. For trade receivables only, the Group 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.
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 Group'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.
(ii) Price risk
The Group's exposure to price risk arises from investments held by the Group and classified in the balance sheet as fair value through Profit
and Loss. To manage its price risk arising from investments, the Group diversifies its portfolio.
Sensitivity
The table below summarises the impact of increases/decreases of the Company's profit for the year and other equity.
The analysis is based on the assumption that the fair value of investments had increased by 5% decreased by 5% with all other variables held
constant. The Group on a regular basis monitors the changes in interest rate in the market to manage the portfolio of variable rate borrowings.
43. 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 31 March 2025 and 31 March 2024.
The Company has complied with the debt covenants as per the terms of borrowing facilities throughout the reporting period.
44. The Company has not entered into any transaction with the struck off Companies.
45. Note on audit trail
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for Companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring Companies, which uses accounting software
for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring
that the audit trail cannot be disabled.
The Company has maintained its books of account in accounting software having the audit trail (edit log) facility, and the same was duly
enabled. However, due to a technical issue, the edit log was not being captured for a certain period. The matter was identified during a
periodic review and was immediately rectified.
47. 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.
(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 not 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 borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the group
with banks and financial institutions are in agreement with the books of accounts.
Notes Forming part of Financial Statements
(Amount in Rs lacs, unless otherwise stated)
(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.
48. Previous year’s figures have been reclassified to conform to current year’s classification.
For P C Modi & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration Number: 000239C
Sd/- Sd/- Sd/-
HEMANT KOUSHIK ANUJ MUNDHRA VANDANA MUNDHRA
Partner Chairman & Managing Director Whole -Time Director
Membership Number: 412112 DIN: 05202504 DIN: 05202403
Sd/- Sd/-
DWARKA DASS MUNDHRA GUNJAN JAIN
Chief Financial Officer Company Secretary
Place: Jaipur
Date: 24 May, 2025
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