NOTE
24 FAIR VALUE MEASUREMENTS '
The fair value of the assets and liabiliti es are included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in forced or
liquidation sale. The following methods and assumptions were used to estimate the fair
values:
Fair Value of cash and current deposits, trade and other current receivables, trade payables,
other current liabilities and other financial instruments approximate their carrying amounts
largely due to the short term maturities of these instruments.
The different levels of fair value have been defined
below:
Level 1: Quoted (Unadjusted) prices in active markets for identical assets
or liabilities.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly
Level 3: T echniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.
NOTE 25 Financial Risk Management
The Company's financial risk management is an integral part of how to plan and execute its
business strategies. The Company's financial risk management policy is set by the Managing
Board. The financial risks are identified, measured and managed in accordance with the
Company's policies on risk management. Key financial risks and mitigation plans are reviewed by
the board of directors of the Company.
A. MARKET RISK
Market risk is the risk of loss of future earnings, fair value of future cash flows that may result
from a change in the price of financial instrument. The value of a financial instrument may
change as a result of changes in the interest rates, equity prices and other market changes that
may effect market sensitivity instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments and deposits, loans and borrowings.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. In order to balance the Company's position
with regards to interest income and interest expense and to manage the interest rate risk,
management performs a comprehensive interest rate risk management. The Company has no
interest bearing borrowings hence it is not exposed to significant interest rate risk as at the
respective reporting dates. They are therefore not subject to interest rate risk, since neither the
carrying amount nor the future cash flows will fluctuate because of change in market interest
rates.
Price Risk
Price risk arises from exposure to equity securities prices from investments held by the
Company. The Company does not have any investments in equity shares.
B. CREDIT RISK
Credit risk is the risk that customer or counter-party will not meet its obligation under the
contract, leading to financial loss. Credit risk arises from trade receivables and other financial
assets.
Other Financial Assets
There is no credit risk exposure with resp ect to other fi nancial assets as they are either
supported by legal agreement or are with Nationalized banks.
- Deposits are held with Electricity Department, hence the risk of default is considered to be
negligible.
- Loans to Others are supported with legal agreements, hence there is no credit risk involved.
Provision for Expected Credit
losses
Financial Assets are considered to be of good quality an d there is no
credit risk to the Company.
C. LIQUIDITY RISK
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Group's approach to managing liquidity is to ensure as far as possible, that it will have
sufficient liquidity to meet its liabilities when they are due.
Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on
the basis of expected cash flows. The Company takes into account the liquidity of the market in
which the entity operates.
Contractual Maturities of financial liabilities
The tables below provide details regarding the remaining contractual maturities of financial
liabilities at reporting date based on contractual undiscounted payments.
26 Capital Risk Management
The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a
going concern and to optimize returns to shareholders. The capital structure of the Company is
based on management's judgment of the appropriate balance of key elements in order to meet its
strategic and day-to-day needs. We consider the amount of capital in proportion to risk and
manage the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets. The Company's policy is to maintain a stable and strong
capital structure with a focus on total equity so as to maintain creditors and market confidence
and to sustain future development and growth of its business. There in no change in the
Company capital structure since previous year.
Revenue from Contracts with
27 Customer
Ind AS 115 Revenue with contracts with Customers, mandatory for reposrting periods beginning
on or after April1,2018 replaces existing revenue recognition requirements. Under the modified
restrospective approach there were no adjustments required to the retained earnings as at
April1,2018. Application of Ind AS 115 did not have any impact on recognition and measurment
of revenue and related items in the financial results.
31 Segment information
The company is operating in only one product i.e. leather garments and accessories. Hence there is no
need to present financial information segment wise as required by AS-17.
information segement wise as required under Indian Accounting
Standard -108.
For D.V. Mittal & Co. For OSCAR GLOBAL LIMITED
Chartered Accountants
ROHIT SINGHAL PAWAN CHADHA KARAN KANIKA VERMA
(Partner) WHOLE TIME CHAIRMAN & MANAGING
DIRECTOR & CFO DIRECTOR
Membership No.516295 DIN: 00415795 DIN : 00034343
FRN : 002997N
NITASHA SINHA
PLACE: NEW DELHI COMPANY
SECRETARY
DATE: Membership No.
23/05/2024 A27439
|