e) Provisions, contingent liabilities and contingent assets
Provisions
Provisions are recognised when there is a present obligation (legal or constructive) as a result
of a past event and it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. The expense relating to provision is presented in the statement of profit and
loss. Provisions are reviewed at each balance sheet date.
Contingent Liabilities
A contingent liability is a possible obligation that arises from the past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the entity or a present obligation that is not recognised
because it is probable that an outflow resources will be required to settle the obligation or it
cannot be measured with sufficient reliability. The Company does not recognise a contingent
liability but discloses its existence in the financial statements.
Contingent Liabilities for Current Year is disclosed in Notes No .33
Contingent Assets
Contingent Assets are neither recognised nor disclosed. However, when realisation of the
income is virtually certain, related asset is recognised.
f) Revenue Recognition
Revenue is recognised and reported to the extent possible that the economic benefits will flow
to the company and the revenue can be reliably measured.
Interest Income
Interest Income is recorded using Effective Interest Rate (EIR) for all the instruments
measured at amortised cost. EIR is the rate that exactly discounts the estimated future cash
payments or receipts over the expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the financial assets or to the amortised
cost of financial liability.
Dividend Income
Dividend Income is recognised when the right to receive payment is established.
g) Inventories (Stock in Trade)
Closing Stock of Shares and Securities have been valued at Cost or market value/fair,
whichever is lower. In case of unquoted shares, fair value is taken at breakup value of
shares as per the last available balance sheet of the concerned company. In case of Mutual
Funds, the NAV (net asset value) of the unit is considered as market value /fair value.
h) Borrowing Costs
Interest on borrowing cost is recognized on a time proportion basis into account the
amount outstanding and at the rate applicable on the borrowing. Ancillary expenditure
incurred in connection with the arrangement of borrowings is amortized over the tenure
of the respective borrowings. An unamortized borrowing cost remaining if any is fully
expensed off as and when the related borrowing is prepaid or cancelled.
i) Employee Benefits Expenses
Short Term Employee Benefits
Short Term Employee Benefits are recognized as an expense at the undiscounted
amount in the statement of profit and loss for the year in which related services are
rendered.
j) Earnings Per Share (EPS): -
Basic earnings per share is calculated by dividing the net Profit or Loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings per share, the net Profit or Loss for the year
attributable to the equity shareholders and weighted average number of share outstanding if
any are adjusted for the effects of all dilutive potential equity shares
k) Financial Instruments: -
A financial instrument is any contract that gives rise to financial asset of one entity and a
financial liability or equity instrument of another equity.
Financial Assets
Initial Recognition and Measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets
not recorded at fair value through value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. Trade Receivables are initially measured
at the transaction price. Regular way of purchase and sale of financial assets are accounted
for at trade date.
Subsequent Measurement
For the purposes of subsequent measurement, financial assets are classified in three
categories.
• Amortised Cost
• Fair Value through Other Comprehensive Income (FVTOCI)
• Fair Value through Profit or loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition, except if and in the
period the Company changes its business model for managing financial assets.
Measured at Amortised Cost: A financial asset is measured at amortised cost if it is held
within a business model whose objective is achieved by both collecting contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost
using the effective interest rate (EIR) method.
Measured at FVTOCI: A financial asset is measured at FVTOCI if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling the
financial assetsand the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest (SPPI) on the principal amount
outstanding.
Financial assets included within the FVTOCI category are measured initially as well at each
reporting date at fair value. Fair value measurement is recognised in Other Comprehensive
Income.
Measured at FVTPL: A financial asset which is not classified in any of the above categories
are measured at FVTPL.
Financial assets included within the FVTPL category are measured at fair value with all
changes recognised in the statement of profit and loss.
De-recognition
The Company derecognizes a financial asset only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and the transfer qualifies
for de-recognition under Ind AS 109.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for the
measurement and recognition of impairment loss for financial assets.
ECL is the weighted average of the difference between all the contractual cash flows that are
due to the Company in accordance with the contract and all the cash flows that the Company
expects to receive, discounted at the original effective interest rate, with the respective risks of
default occurring as the weights. When estimating the cash flows, the Company is required to
consider:
-All contractual terms of the financial assets (including prepayment and extension) over the
expected life of the assets
-Cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
Trade Receivables
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses that result from all possible default events over the
expected life of a financial instrument.
Lifetime ECL are the expected credit losses resulting from all possible default events over the
expected life of a financial asset. 12 month ECL area portion of the lifetime ECL which result
from default events that are possible with 12 months from the reporting date, ECL are
measured in a manner that they reflect unbiased and probability weighted amounts
determined by a range of outcomes, taking into account the time value of money and other
reasonable information available as a result of past events, current conditions and forecast of
future economic conditions.
Financial Assets
In respect of other financial assets, the Company assesses if the credit risk on those financial
assets has increased significantly since initial recognition. If the credit risk has not increased
significantly since initial recognition, the Company measures the loss allowance at an amount
equal to 12- month expected credit losses, else at an amount equal to the lifetime expected
credit losses.
While making the assessment, the Company uses the change in the risk of a default occurring
over the expected life of the financial asset. To make the assessment, Company compares the
risk of a default occurring on the financial asset as at the balance sheet date with the risk of a
default occurring on the financial asset as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort that is
indicative of significant increases in credit risk since initial recognition. The Company assumes
that the credit risk on a financial asset has not increased significantly since initial recognition if
the financial asset is determined to have low credit risk at the balance sheet date.
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are at initially recognised at fair value plus any transaction cost that are
attributable to the acquisition of the financial liabilities except financial liabilities at fair value
through profit or loss which are initially measured at fair value.
Subsequent Measurement:
For the purpose of subsequent measurement, financial liabilities are classified in following
categories: -
• Fair Value through Profit or loss (FVTPL)
• Amortised Cost
Measured at FVTPL: A financial liability is classified as at FVTPL. It is classified as held for
trading or it is derivative or it is designated as such on initial recognition. Financial liabilities
as at FVTPL are measured at fair value and net gains and losses, including any interest
expense is recognised in profit and loss.
Measured at Amortised: Other financial liabilities are subsequently measured at amortised
cost using the effective interest rate method.
Derecognition
The Company derecognizes a financial liability (or a part of financial liability) only when the
obligation specified in the contract discharged or cancelled or expires.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet
when there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle the liability simultaneously.
Impairment of non-financial assets
At the end of each reporting period, the company reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to the individual cash-generating units, or otherwise they are allocated to the
smallest group of cash generating units for which a reasonable and consistent allocation basis
can be identified.
Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated less that its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised immediately in the Statement of Profit and Loss,
unless the relevant asset at a revalued amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a cash
generating unit) is increased to the revised estimate of its recoverable amount , but so that the
increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss has been recognised immediately in the Statement of Profit
and Loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of
the impairment loss is treated as a revaluation increase.
l) Fair Value
Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date,
regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company
takes in to account the characteristics of the asset or liability if market participants would
take those characteristics into account when pricing the asset or liability at the
measurement date. Fair value for measurement and or disclosure purposes in the
financial statements is determined on such basis.
In addition, for financial reporting purposes, fair value measurements are categorized
into Level 1, 2, or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair value
measurements in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly;
• Level 3 inputs are unobservable inputs for the asset or liability
m) Event after reporting date
Where the events occurring after the Balance Sheet date provide evidence of conditions
that existed at the end of the reporting period, the impact of such events adjusted within
the financial statements. Otherwise, events after the Balance Sheet date of material size
or nature are only disclosed
n) Investment in subsidiary
Investment in subsidiary are carried at cost less accumulated impairment losses, if any.
Where an indication of impairment exists the carrying amount of the investment is
assessed and written down immediately to its recoverable amount. The recoverable
amount is the higher of an asset's fair value less cost of disposal and value in use. On
disposal of the investments the difference between net disposal proceeds and the
carrying amount is recognised in Statement of Profit and Loss.
o) Segment Reporting
Operating Segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker (CODM) of the Company. The CODM is
responsible for allocating resources and assessing performance of the operating
segments of the Company.
Operating segments are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. As per requirement of Ind AS 108
"Segment Reporting" no disclosures are required to be made since the Company's
activities consists of a single business segment.
Financial assets and financial liabilities measured at fair value in the Statement of Profit and Loss are grouped into three Levels of a fair value hierarchy.
The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: Unobservable inputs for the asset or liability
(i) The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and
27 small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the
Memorandum in accordance with the 'Micro, Small and Medium Enterprise Development Act, 2006 ('the Act'). Accordingly, the disclosure in respect of the
amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company.
(ii) Based on the information / documents available with the company, no interest provisions / payments has to be made by the Company to micro
enterprises and small enterprises creditors and thus, no related disclosures as required under Section 22 of the Micro, Small and Medium Enterprises
Development Act, 2006 are made in these accounts.
28 During the year, the Company is not covered under Section 135 of Companies Act 2013, with respect to Corporate Social Responsibility
29 Financial Risk Management
The Company's business activities expose it to a variety of financial risks such as credit risks, liquidity risk and market risks. The Company's focus is to
foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. This note explains the
sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the standalone financial statements.
(a) Credit Risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly
by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of
customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and
bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortised cost .
Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time
internal control system in place ensure the amounts are within defined limits.
i) Trade Receivables
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The
allowance account in respect of trade and other receivables is used to record impairment losses unless the Company is satisfied that no recovery of the
amount owing is possible. At that point, the financial asset is considered irrecoverable and the amount charged to the allowance account is written off
against the carrying amount of the impaired financial asset.
As the Company does not hold any collateral, the maximum expense to credit risk for each class of financial instrument is the carrying amount of that
class of financial instrument presented on the statement of financial position. Impairment of trade receivables is based on expected credit loss model
(simplistic approach) depending upon the historical data, present financial conditions of customers and anticipated regulatory changes. Company
does not hold any collateral in respect of such receivables.
ii) Financial Instruments and Cash Deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits.
Other financial assets measured at amortized cost . Credit risk related to these other financial assets is managed by monitoring the recoverability of
such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
Credit Risk Exposure
The gross carrying amount of financial assets, net of any impairment losses recognised represents the maximum credit exposure. The maximum
exposure to credit risk as at 31 March 2024 and 31 March 2023 was as follows:
(b) Market Risk
Market risk is the risk of potential adverse change in the Company's income and the value of Company net worth arising from movement in foreign
exchange rates, interest rates or other market prices. The Company recognises that the effective management of market risk is essential to the
maintenance of stable earnings and preservation of shareholder value. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the overall returns.
(i) Foreign Currency Risk
Foreign currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Foreign currency risk
arises when transactions are denominated in foreign currencies.
The Company operates locally in INR and is not exposed to foreign currency risk
(ii) Price Risk
The Company is mainly exposed to the price risk due to its investment in equity instruments. The price risk arises due to uncertainties about the future
market values of these investments.
(c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial
instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a
financial asset quickly at close to its fair value.
The Company has an established liquidity risk management framework for managing its short term, medium term and long-term
funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of
the maturities of financial assets and liabilities. It manages the liquidity risk by maintaining adequate funds in cash and cash
equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its
normal operating commitments in a timely and cost-effective manner.
Maturities of financial liabilities
The following table shows the remaining contractual maturities of financial liabilities at the reporting date. The amounts reported
are on gross and undiscounted basis and includes contractual interest payments. Balances due within 12 months equal their
carrying balances as the impact of discounting is insignificant.
30 Capital Management
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity
shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern
and to maintain an optimal capital structure so as to maximize shareholder value.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return
capital to shareholders or issue new shares.
32 Other Additional Regulatory Information as required by amended Schedule III :
Disclosure in relation to undisclosed income : The Company have not any such transaction which is not recorded in the books of accounts that has been
(a) surrendered or disclosed as income during the period ending 31st March,2024 and also for the period ending 31st March,2023 in the tax assessments
under the Income T ax Act, 1961 (such as, search or survey or any other relevant provisions of the Income T ax Act, 1961).
Relationship with Struck off Companies : There were no transactions with the struck of companies during the year ended 31 March 2024 and 31 March
(b) 2023
Details of Benami Property held : The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company during the period ending 31st March,2024 and also for the period ending 31st March,2023 for holding any Benami property.
Registration of charges or satisfaction with Registrar of Companies (ROC) : The Company do not have any charges or satisfaction which is yet to be
(d) registered with ROC beyond the statutory period, during the period ending 31st March,2024 and also for the period ending 31st March,2023.
Details of Crypto Currency or Virtual Currency : The Company have not traded or invested in Crypto currency or Virtual Currency during the period
(e) ending 31st March,2024 and also for the period ending 31st March,2023
Utilisation of Borrowed Fund & Share Premium :
I. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.
(f)
II. The Company have not received any fund 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 on behalf of the
Ultimate Beneficiaries.
33 Figures for the previous year have been regrouped / reclassified wherever necessary to conform to current period's classification
As per our report of even date For and on behalf of the Board of Directors of
For K. K. Chanani & Associates Siddha Ventures Limited
Chartered Accountants
Registration No. 322232E
SD/- SD/- SD/-
Krishna Kumar Chanani Laxmipat Sethia Siddharth Sethia
Partner Managing Director Director
Membership No: 056045 DIN : 00413720 DIN : 00038970
SD/- SD/-
Place : Kolkata Nikita Agarwal Sumon Paul
Date : 28 May 2024 Company Secretary CFO
UDIN: 24056045BKBIJA8568 M. No: A63474 PAN:BXPPP8249J
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