PROVISION, CONTINGENT LIABILITIES ANDCONTINGENT ASSETS
Provisions: Provisions are recognized when there is a present obligation as result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities : Contingent liabilities are not provided for in the books but are disclosed by way of notes in the financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Contingent Assets: Contingent Assets are neither recognized nor disclosed in the financial statements. EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after tax (and include post tax effect of any extraordinary items.) The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises of the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises of the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.
RELATED PARTY TRANSACTIONS
Related party transactions are transfer of resources or obligations between related parties, regardless of whether a price is charged. Parties are considered to be related, if one party has the ability, directly or indirectly, to control the other party of exercise significant influence over the other party in making financial or operating decisions. Parties are considered to be related if they are subject to common control or common significant influence.
SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided by Chief Financial Officer and Director of the Company jointly and responsible for allocating resources, assess the financial performance of the Company and make strategic decisions.
The Company has identified one reportable segment “trading of textile products” based on information reviewed by them.
DIVIDEND:
Dividend declared is provided in books of account when the same is approved by shareholders’.
EMPLOYEE BENEFITS
• Short-term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 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.
• Post Employee Obligations
The Company operates the following post-employment schemes:
• Defined contribution plans such as provident fund.
• Gratuity obligations
The Company had an obligation towards gratuity - a defined benefit retirement plan covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of an employment of an amount equivalent to 15 days salary payable for each completed years of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service and is payable thereafter on occurrence of any of above events.
As per information provided by the Company, there are no employees who have served more than 5 years.
• Defined contribution plans
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.
FOREIGN CURRENCY TRANSACTIONS
Initial Recognition:
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Subsequent Recognition:
As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. All monetary assets and liabilities in foreign currency are reinstated at the end of accounting period. Exchange differences on reinstatement of all monetary items are recognised in the Statement of Profit and Loss.
FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
FINANCIAL ASSETS
Initial recognition and measurement
All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets are initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
? Classification
For the purpose of subsequent measurement, the Company classifies financial assets in following categories:
• Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses, if any. Interest income and impairment are recognized in the Statement of Profit and Loss.
• Financial assets at fair value through other comprehensive income (FVTOCI)
These assets are subsequently measured at fair value through other comprehensive income (OCI). Changes in fair values are recognized in OCI and on DE recognition, cumulative gain or loss previously recognized in OCI is reclassified to the Statement of Profit and Loss. Interest income calculated using EIR and impairment loss, if any, are recognized in the Statement of Profit and Loss.
• Financial assets at fair value through profit or loss (FVTPL)
These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognized in the Statement of Profit and Loss.
Financial assets are not reclassified subsequent to their recognition except if and in the period the Company changes its business model for managing for financial assets.
De-recognition
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.
Any gain or loss on derecognition is recognized in the Statement of Profit and Loss.
Impairment of financial assets
The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, lease receivable, trade receivable other contractual rights to receive cash or other financial assets. For trade receivable, the Company measures the loss allowance at an amount equal to life time expected credit losses. Further, for the measuring life time expected credit losses allowance for trade receivable the Company has used a practical expedient as permitted under Indian AS 109. This expected credit loss allowance is computed based on provisions, matrix which takes into account historical credit loss experience and adjusted for forward looking information.
FINANCIAL LIABILITIES
Initial recognition and measurement
All financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at amortized cost unless at initial recognition, they are classified as fair value through profit or loss. In case of trade payables they are initially recognize at fair value and subsequently, these liabilities are held at amortized cost, using the Effective interest method.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortized cost or FVTPL.
A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in the Statement of Profit and Loss.
Financial liabilities other than classified as FVTPL, are subsequently measured at amortized cost using the effective interest method. Interest expense is recognised in Statement of Profit and Loss. Any gain or loss on derecognition is also recognised in the Statement of Profit and Loss.
De-recognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on subsequently different terms, or the terms of an existing liability are subsequently modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of the new liability. The difference in the respective carrying amount is recognize in the Statement of Profit & Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the assets and settle the liabilities simultaneously.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount presented in the Earnings per share Basic earnings per share
Basic earnings per share is calculated by dividing:
? the profit attributable to owners of the Company
? by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:
? after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares
The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, and other current financal assets and lattes approximate their carrying amounts largey due to the short-term maturities of these Instruments.
The fair value of the financal assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing partes, other than in a forced or liquidation sate.
The following methods and assumptions were used to estimate the fair values:
i) Long-term fxed-rate recevables/borrowngs are evaluated by the Company based on parameters such as interest rates, specific country rsk factors, individual creditworthiness of the customer and the rsk characters of the financed project. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.
ii) Fair values of the Company's interest-bearing borrowings and bans are determined by using DCF method using dscount rate that reflects the ssuer's borrowing rate as at the end of the reporting period. The own non- performance rsk as at March 31, 2024 was assessed to be
iii) The fair values of the unquoted equity shares, f any have been estimated using a dscounted cash few model. The valuaton requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility, the probabilties of the various estimates within the range can be reasonably assessed and are used in management's estimate of fair value for these
"28" Financial Risk Management
The Company's principal financal liabilites, comprise loans and borrowings, trade and other payables. The main purpose of these financial labilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financal assets include bans, trade and other receivabbs, and cash and short-term deposits that derive directly from its operatons.
The Company's activities expose it to a variety of financal risks: credit risk, liquidity risk and interest rate risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financal performance.
The Board of Directors reviews and agrees polices for managing each of these risks, which are summarised beow:
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent osses in financial assets. The Company assesses the credit quality of the counter parties, taking into account their financial position, past experience and other factors. Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the defaut risk of the industry and country in which the customer operates, afeo has an infbence on credit risk assessment. In additon, receivable balances are montered on an ongoing basis with the resut that the Company's exposure to Bad debt is not significant. Abo the Company doesnot enter into sales transaction with customers having credit loss history. There are no significant Credit risk with related parties of the Company. The Company's is exposed to Credit risk in the event of non payment of customers. Credit risk concentration with respect to Trade
Receivabtes is mitigated by the Company's brge customer base. Adequate expected credt osses are recognised as per the assessment.
The history of Trade receivabtes shows an allowance for bad and doubtful debts of Rs Nil ( Nil as at March 31,2023). The Company has made afowance of Rs Nil ( Nl as at March 31,2023) against Trade receivable of Rs. 24.99 bcs ( Rs. 23.60 bcs as at March 31,2023).
Bank Deposits
The company maintains its cash and cash equivalents and bank deposits with reputed and highly rated bank. Hence, there is no significant credt risk on such deposts.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The company does not expect any losses from non- performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obigations as they become due. The Company manages its liquidity risk through credt limts with banks.
The Company's corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and
policies related to such risks are overseen by senior management.
The working capital position of the Company is given
"29" Capital management
The Company's policy s to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital. The Company's objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.
"31" Events Occurring After Balance - Sheet
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of finance statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 30th May,2024 there were no subsequent events to be recognised or reported that are not already disclosed."
"32" Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chef Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments.
The Company's only business segment s in Herbal , Ayurvedic and Agro Commodity ,hence the disclosure of segment wise information as required by Ind AS 108 on "Segment Reporting" s not applicable .
"33" Contingent Liabilities and Commitment
"34" Compliance with number of layers of companies: . The Company does not have any Subsidiary Company.
"35" Registration of charges or satisfaction with Registrar of Companies - There is no charge created by the Company.
"36" Relationship with Struck off Companies: Not Applicable
"37" Wilful Defaulter : The Company has not been declared as Wilful Defaulter by any Bank or Financial Insttutions or Government or any Government Authority
"38" Details of Benami Property held : No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder
"39" Capital WIP : Not Applicable
"39" Intangible assets under development : Not Applicable
"40" In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value of realization equivalent to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in the accounts for all the known liabilities.
"41" Previous Years Figures have been re-grouped/ re-arranged wherever consider necessary.The Companies has complied the above accounts based on the revised/modified schedule III as applicabk for the accounting period 2023-24. The disclosure requirement are made in the notes to accounts for by way of additional statements. The other disclosure required by the Companies Act, are made in the notes to accounts.
(a) Details of crypto currency or virtual currency
The Company has nether traded nor invested in Crypto currency or Virtual Currency during the year ended March 31, 2024 and March 31, 2023. Further, the Company has also not received any deposts or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.
(b) Undisclosed income
During the year ended March 31, 2024 and March 31, 2023, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(c) Loans or advances to specified persons
The Company has granted loans or advances in nature of loans to promoters/directors/KMPs/Related parties (as defined under the Companies Act, 2013) for the period ended March 31, 2024 and March 31, 2023.
(d) Compliance with numbers of layers of companies
The Company is in compliance with the number of layers of companies in accordance with cause 87 of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the period ended March 31, 2024 and March 31, 2023.
(e) Utilisation of borrowed funds and share premium
During the year ended March 31, 2024 and March 31, 2023, the Company has not advanced or loaned or invested funds (ether borrowed funds or share premium 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:
i) directly or indirectly lend or invest in other persons or entties identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
During the year ended Ma rch 31, 2024 and March 31 ,20a3, the Company has not receved any fund from any person(s) or entity(ies), including foreign entties (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 enttes identifed 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.
(f) Relationship with struck off companies
The Company does not have any transactions with the companies struck off under secton 248 of the Companes Act, 2013 or section 560 of the Companes Act, 1956 during the year ended March 31, 2024 and March 31, 2023.
(g) The Company has not been declared Wilful Defaulter by any bank or financial instituton or government or any government authority.
(h) No proceeding have been intiated nor pending against the company for holding any benami property under the Benami T ransactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.
(i) Others:
a) Balances of Sundry Creditors, Debtors, Receivables / Payables from / to various partes / authortes are subject to confirmation from the respective parties, and necessary adjustments if any, will be made on its reconciliation
b) In the Opinon of the Board of Directors the aggregate value of current assets on realizaton in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.
c) Previous year's figures have been re-arranged and re-grouped, wherever necessary to make them comparabe wth those of current year.
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