12. Provisions:
A provision is recognized when the Company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent 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 future events not wholly within the control of the Company. 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 reliable estimate of the amount cannot be made, is also termed as contingent liability. A contingent asset is neither recognized nor disclosed in the financial statements.
13. Employee Benefits
Short term employee benefits are recognized on an accrual basis.
Leave encashment
The leave obligations cover the company's liability for casual leaves and earned leaves. These liabilities are treated as current liabilities since the company has the policy to compulsorily en cash the un availed leaves at the end of quarter in which they are credited to the employee's leave balance.
14. Post Employee Benefits:
i. Defined Benefit Plans: Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial valuation, which is done based on project unit credit method as at the balance sheet date. The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / (asset) are recognized in other comprehensive income. In accordance with Ind AS, re-measurement gains and losses on defined benefit plans recognized in OCI are not to be subsequently reclassified to statement of profit and loss. As required under Ind AS compliant Schedule III, the Company transfers it immediately to retained earnings.
15. Earnings per share
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per shares is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per shares and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
16. Segment information:
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Group's chief operating decision maker is the Chief Executive Officer and Managing Director.
The Group has identified business segments: 1) IT Hardware & 2) Software Development Service Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated since associated revenue of the segment or manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as un allocable expenses.
The assets and liabilities of the Group are used interchangeably amongst segments. Allocation of such assets and liabilities is not practicable and any forced allocation would not result in any meaningful segregation. Hence assets and liabilities have not been identified to any of the reportable segments.
Rights, restrictions and preferences attached to equity shares
Each shareholder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by directors is subject to the approval of shareholders in the ensuring annual general meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note 16 (C): Sub Division of Equity Shares
1. The subdivision of existing equity share of face value of Rs.10/- (ten) each fully paid up into two equity shares of face value of Rs.5/- (Five) each fully paid up has been approved by the members of the Company held on 09th September 2023 and the Board of Directors have approved (Fixed) Tuesday, 26th September 2023. as the Record date for determining the eligibility of the shareholders for sub-division/ split of equity shares.
Note 16 (D): Increase in Authorised Share Capital
Increase in Authorised Share Capital: During the current financial year 2022-23 the company has increased its authorised equity share capital by amount of Rs Rs.920 Lakhs by incurring legal expenses of Rs.8.74 Lakhs
Note 16 (E): Rights Issue of Shares
The Board of Directors of the company in their meeting held on November 18, 2022, approved to issue equity shares by way of a rights issue to the existing shareholders of the Company for an amount of Rs. 1,642 Lakhs in the ratio of 44 Rights Equity Shares for every 5 fully paid-up Equity Shares held on the record date of January 25, 2023 in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, the Companies Act, 2013 and other applicable laws (''Issue'). The objective of the Issue, subject to finalization by the Board of Directors, is to, inter-alia, meet the Long Term Working Capital Requirements for Trading of Computers, general corporate purposes and to meet the share issue expenses.
A Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk and other price risk, such as equity price risk. Financial instruments affected by market risk include FVTPL investments Market risk is attributable to all market risk sensitive financial instruments. The finance department undertakes management of cash resourc esensuring compliance with market risk limits.
(i) 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.As the company doesnot have any Debts/Borrowings. Hence the Company is not exposed to interest rate risk associated with Term Loan and working Capital Facility.
(ii) Equity price risk
The Company’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.
B Credit risk
Credit Risk is the risk that counter party will not meet its obligations under a financial instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and unbilled revenue) and from its financing activities including deposits with banks and financial institutions, investments, foreign exchange transactions and other financial instruments.
i Trade receivables
Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for clients. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.
Credit risk exposure
The Company’s credit period generally ranges from 30 - 60 days are as below.
10) The Board of Directors have considered and recommended, a final dividend of Rs.0.75 Paise [Seventy- five Paisa Only] per equity share of face value of Rs.05/- (Rupees Five) each i.e @15% on the equity shares in the capital of the Company for the financial year 2023-2024 ended 31st March 2024, subject to the approval of the Shareholders (Members) of the Company at the ensuing Thirty- Fifth (35th) Annual General Meeting of the Company.
11) Other Statutory Information:
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company have not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding 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 company (Ultimate Beneficiaries) or
b. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
v) The Company have not received any fund from any person or entity, 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 on behalf of the Ultimate Beneficiaries.
vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
12) Previous year's figures have been regrouped / re-arranged wherever necessary. Some of the balances are subject to confirmation.
13) In the opinion of the Management, the balances shown under Sundry Debtors, Loans and Advances have approximately the same realizable value as shown in Accounts.
Party balances are subject to confirmation.
Signatures to Notes 1 to 35 As per our report of even date attached
For Paresh Jairam Tank & Co. For and on behalf of the Board of Directors
Chartered Accountants Firm Reg. No: 139681W
CA Paresh Jairam Tank Mr. Sunil Raisoni Mr.Pritam Raisoni
Partner Managing Director Chief Financial Officer
Membership No: 103605 DIN No. 00162965
UDIN:24103605BKEBER6109
Mrs. Archana Bhole Ms. Harsha Bandhekar
Director Company Secretary
DIN No. 06737829 Membership No. A54849
Nagpur, 30th May, 2024 Nagpur, 30th May, 2024
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