l) Provisions. Contingent Liabilities and Contingent fiSSSIS.
Provisions arc recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Hie expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
( onnngcnt liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain fiiturc events not wholly within ,hc control of the Company or a present obligation that arises from past event, where it « either not probable that an outflow of resources cull be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent Assets are not recognised in the financial statements. Contingent Assets if any, ate disclosed in the notes to the financial statements.
m) Intangible Assets
Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.
Intangible \sscls are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired The amortisation period and the amortisation method for an intangible asset are reviewed at least at the end of each reporting period Changes m the expected useful life or the expected pattern of consumption of future economic benefits embodied u, the asset are consider* to modify the amortisation period or method as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible is recognised m the statement of profit and loss account-
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and arc recognised in the statement of profit or loss when the asset is derecognised.
n) Employee Benefits
ij Short - term employ ee benefits
Ml employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries wages. • performance incentives etc. are recognised at actual amounts due in the period in which the employee renders the related service. I he undiscounted amount of shortterm employee benefits to he paid in exchange for employee services is recognized as an expense as the related service is rendered by employees.
ip Post Employment IVm fits
Defined Benefit Plan : The cost of providing benefit like gratuity is determined using the actuarial valuation using the projected unit credit method earned out as at the balance sheet date. Actuarial gain or loss are recognised immediately in tile Profit or Loss Account or Other comprehensive income.
Ml expenses represented bv current semee cost, past service cost, .f any, and net interest expense / (income) on the net defined benefit liability / (assert are recognised in the Statement' of Profit and Loss. Remeasurements of the net defined benefit hab.l.ty / (asset) comprising actuarial gams and losses arc recognised immediately m Other Comprehensive Income (OC1).
When the benefits of a plan are changed or when a plan is curtailed, the resulting change ... benefit that relates to past service or the gain or loss m. curtailment is recognised immediately in the Statement of Profit and Loss, il.e Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
lii) Other lone term employment benefits
Compensated absences : Compensated absences which arc not expected to occur within twelve months after die end of the period m which the employee renders the related services are recognised as a liability a. the present value of the defined benefit obligation a. the balance sheet date as determined by an independent actuary based on projected unit credit method, The discount rates used for determining the present value of the obligation under other long term employment benefits plan, are based on the market yields on Government securities as at the balance sheet date.
a. Statutory reserve (created pursuant to Section 45-IC of the Reserve Bank of India Act, 1934)
Statutory reserve represents the Reserve F und created under section 45-IC of the Reserve Bank of India Act, 1934. lTie Company is required to transfer a sum not less than twenty percent of its net profit every year as disclosed in tlic statement of profit and loss. Hie statutory reserve can be utilized for the purposes as may be specified by the Reserve Bank of India front time to time.
b. Retained earnings
Retained earnings represents total of all profits retained since Company’s inception. Retained earnings are credited with current year profits, reduced by losses, if any, dividend payouts, transfers to General reserve or any such ocher appropriations to specific reserves. It also includes impact of remeasurement of defined benefit plans.
c. Securities Premium
Securities premium represents premium received on issue of shares. This amount can be utilised in accordance with the provisions of the Companies Act, 2013.
IrifinU rate risk:
A fall in the discount rate which is linked to the G.Scc. Rate will increase the present value of the liability requiring higher provision.
.S alar) R.isk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Asset 1Jability Matching Risk:
'Fhe plan faces the ALM risk as to the matching cash flow, entity has to manage pay-out based on pay as you go basis from own funds.
.4 I o reality risk:
Since the benefits under the plan is nor pavable for life time and payable till retirement age only, plan does not have any longevity risk.
The most recent actuarial valuation of plan assets and present value of defined benefit obligation of gratuity was carried out as at 31st March 2024. Fhe present value of defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method. The following table summaries the net benefit expense recognised in the Statement of Profit & l.oss, the details of the defined benefit obligation and the funded status of the Company’s gratuity plan:
b) Fair value hierarchy
Tlic fair value of financial instruments as referred to in note (a) above have been classified into three categories depending on the inputs used in the valuation technique. Hie hierarchy gives the highest priority ro quoted prices in active markets for identical assets or liabilities (larvel l measurements) and lowest priority to unobservable inputs
lTie categories used are as follows.
Level 1 - Quoted prices ’unadjusted) for identical assets and liabilities in an -active markets.
Level 2 - Inputs other rh.in quoted prices included in l^evel 1 that are observable tor the asset or liability, either directly (as prices') or indirectly (derived from prices)
Level 3 Inputs tor the asset or liability' that are not based on observable market data (unobservable inputs)
c) Measurement of Fair Value
The fair values of financial assets and liabilities are included at rhe amount rliar would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Methods and assumptions used to estimate the fair values are consistent in all the years. 'Hie following methods and
i) llic fair values of investments in mutual fund units is based on Hie net asset value (f.\ \\”) as stated by the issuers of mutual funds Net Asset values represent rhe price at which the issuer will issue further units in rhe mutual fund and the price at which issuers will redeem such units from the investors.
li) Tin* Management assesses that fair values of trade receivables, cash and cash equivalents, other bank balances, loans, trade payables, current borrowings, other current liabilities and other financial liabilities (current), approximate to ihtir earn ing amounts largely due to the short-term maturities of these instruments.
ni) The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are n reasonable approximation of their fair values since the Company does not anticipate that the earn ing amount would be significantly different from the values that would eventually be received or settled.
d) Risk Management Framework
Tilt Company's business activities expose it to a variety of financial risks, namely credit risk, liquidity risk and market nsks. Marker risks comprise currency nsk and interest rate risk The Company's Senior Management and Key Management Personnel have rhe ultimate responsibility for managing these nsks. The Management has a process to identify and analy se the risks faced by rhe Company, to set appropriate risk limits and to control and to monitor risks and adherence to these limits Risk Management policies and systems are reviewed regularly t<> reflect changes in market conditions and Company's activities Further. Audit Committee undertakes regular reviews of Risk Management Controls and Procedures.
v CrcdiLjasls
Credit risk is the risk that a customer or counterparty fails to meet its contractual obligations resulting in financial loss to the Company The Company is exposed to credit risk from its operating activities (trade & other receivables) and from its financing activities including investments in mutual fluids, deposits with hanks and financial institutions and financial instruments. Credit risk has always been managed by the Company through credit approvals and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption offnd AS 109, the Company has adopted expected lifetime credit loss model to assess file impairment loss, and is positive of rhe renhsibihry of rhe other trade receivables and other Financial Asset
/ jjlilts , Tt'jdf. C~ olbtr Revel mbit s
Credit risk from trade & other receivables is managed by establishing credit limits, credit approvals and monitoring creditworthiness of the customers. Outstanding cdSromcr receivables arc rcgularlv monitored. 'Hit Company has computed credit loss allowances based on Expected Credit bnss Model* which excludes transactions with subsidiaries The ageing of trade receivables is as follows:
r.i,|ui<,iny n<k
Utjuiditv risk is the risk th.it the Company will face in meeting its obligations associated with its financial liabilities. Hie Company s approach ro managing liquidity is to ensure that it will have sufficient Kinds to meet its liabilities when due without incurring unacceptable losses.
The following tables detailed the Company’s remaining contractual maturities of financial liabilities as at the reporting date with agreed repayment periods. 1 he tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest dare on which the Company can be retired to pay. The table includes both interest and principal cash flows.
ni; Market, usk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market paces. Marker risk composes Currency Currency risk
l ilt Company’s operations arc only in India which results in nr. foregin currency risk exposure.
Interest rare risk
The company has no borrowings and investments in interest bearing instruments. Hence, company has no interest rate risk exposure.
31 Capital Management
The Company’s objective is to maintain appropriate levels of capital to support its business strategy raking into account the regulatory, economic and commercial environment. The Company aims to maintain a strong capital base to support the risks inherent to its business and growth strategies. I he Company endeavours to maintain a higher capital base than the mandated regulatory capital at all times.
33 Other matters
Information with regard to other matters specified Schedule III of the Act, is either nil or not applicable to the Company lor the year.
34 Previous years' figures have been regrouped / restated wherever necessary to conform to current year's classification
35 Other Notes:
aj The Company does nor have any Benami property, where .ui\ proceeding has been mi hared or pending against rhe Company for holding am bcnami propern'
I' flic quarterly information sraremenr filed by rhe Company- wirh banks or financial institutions are in agreement with the books of accounts.
c) The Company has not been declared n> Wilful defaulter by any Banks, Financial institution or Other lenders.
dj Hie Company does not have any charges or satisfaction which is yet to be registered with HOC beyond rhe statutory period.
e) The provision related to number of layers as prescribed under section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable to Company.
f: The Company have not advanced or given loan or invested funds to any other person 's* or entirv'ics). including foreign entities (Intermediaries) with rhe understanding that the Intermediary shall directly or indirectly lend or invest in or her persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or rhe like to or on behalf of the l-lrimarc Beneficiaries except loans or advances given in normal course of business.
gj The Company have nor received any fund from any person(s) or entity jes). including foreign entities (Funding Pam-, with the understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or mvesr in other persons or entities identified in an\ manner whatsoever by or on behalf of the Funding Parry (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries except loans or advance1 given in normal course of business
li; Tlie Company: does nor have any such transaction which is nor recorded in the books of accounts that has been surrendered or disclosed as income during the year m rhe rax assessments under the Income Tax \ct, 1% 1 (such as, search or survey or any other relevant provisions of rhe Income Tax \ct, 1961).
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The t 'ompany have nor traded or invested in Crypto currency or Virtual Currency during the financial year
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