B.13. Provisions and Contingent Liabilities:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past
event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.
The amount recognized as provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when the effect of time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognized as an asset it is virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.
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 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 the obligation or a reliable estimate
of the amount cannot be made.
B.14. Financial Instruments:
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions
of the instruments and are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and liabilities (other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the fair value of the financial assets or liabilities
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in profit and loss.
(A) Financial Assets
a) Initial Recognition and Measurement
All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded
at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of
the financial asset. However, trade receivables that do not contain a significant financing component
are measured at transaction price.
b) Subsequent Measurement
(i) Financial Assets Carried at Amortised Cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose
objective is to hold the asset in order to collect 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 on the principal amount outstanding.
(ii) Financial Assets at Fair Value through Other Comprehensive Income (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 financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
(iii) Financial Assets at Fair Value through Profit or Loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.Fair
value changes on an equity instrument is recognised in 'other income' in the standalone statement
of profit and loss unless the Company has elected to measure such instrument at FVTOCI.
(iv) Investment in Subsidiaries, Associates and Joint Ventures
The Company accounts for its investments in subsidiaries, associates and joint venture at cost
as per requirements of Ind AS 27.
c) Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement
of Profit and Loss, except for those equity investments for which the Company has elected to present
the value changes in 'Other Comprehensive Income'.
d) Derivative Financial Instruments
Derivative financial instruments such as forward contracts, option contracts and cross currency
swaps to hedge its foreign currency risks are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently re-measured at their fair value with changes in fair
value recognised in the Statement of Profit and Loss in the period when they arise.
e) Impairment of Financial Assets
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss
(FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:
* The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting date);
OR
* Full lifetime expected credit losses (expected credit losses that result from all possible default
events over the life of the financial instrument).
For trade receivables Company applies 'simplified approach' which requires expected lifetime losses
to be recognised from initial recognition of the receivables. The Company uses historical default rates
to determine impairment loss on the portfolio of trade receivables. At every reporting date these
historical default rates are reviewed and changes in the forward booking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
f) Derecognition of Financial Assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109 - Financial Instruments.
For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision
for impairment and exchange difference, if any, (on debt instrument) are recognised in Profit or Loss
and changes in fair value (other than on account of above income or expense) are recognised in
Other Comprehensive Income and accumulated in Other equity. On disposal of debt instruments at
FVTOCI, the cumulative gain or loss previously accumulated in Other equity is reclassified to Profit
and Loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to
Profit and Loss on disposal of investments.
(B) Financial Liabilities
a) Initial Recognition and Measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance
cost.
b) Subsequent Measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade
and other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.
c) De-Recognition
Financial liabilities are derecognized when, and only when, the obligations are discharged, cancelled
or have expired. An exchange with a lender of a debt instruments with substantially different terms
is accounted for as an extinguishment of the original financial liability and recognition of a new
financial liability. Similarly, a substantial modification of the terms of an existing financial liability is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of a financial liability derecognized
and the consideration paid or payable is recognized in the Statement of Profit and Loss.
d) Foreign Exchange Gains and Losses
Financial liabilities denominated in a foreign currency and are measured at amortized cost at the
end of each reporting period, the foreign exchange gains and losses are determined based on the
amortized cost of the instruments and are recognized in the Statement of Profit and Loss.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of the reporting period. For financial liabilities
that are measured at fair value through profit or loss, the foreign exchange component forms part of
the fair value gains or losses and is recognized in the Statement of Profit and Loss.
B.15. Cash and Cash Equivalents:
Cash and cash equivalents comprise cash in hand and unencumbered, highly liquid bank and other balances
(with original maturity of three months or less) that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
B.16. Statement of Cash Flow:
Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities.
Cash flow from operating activities is reported using indirect method, adjusting the net profits for the effects
of:
(i) Transactions of a non-cash nature.
(ii) Any deferrals or accruals of past or future operating cash receipts or payments.
(iii) Items of income or expense associated with investing or financing cash flows.
(iv) Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items
which are not available for general use as on the date of Balance Sheet.
B.17. Events after Reporting Date:
Where 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 is adjusted within the financial statements. Otherwise, events
after the Balance Sheet date only of material size or nature are disclosed.
B.18. Earnings per Share:
The Company reports basic and diluted earnings per share (EPS) in accordance with Indian Accounting Standard
33 "Earnings per Share". Basic EPS is computed by dividing the net profit or loss attributable to ordinary equity
holders of the parent entity by the weighted average number of equity shares outstanding during the period.
Diluted EPS is computed by dividing the net profit or loss attributable to ordinary equity holders of the parent
entity by weighted average number of equity shares outstanding during the year as adjusted for the effects of
the effects of all dilutive potential ordinary shares dilutive potential equity shares (except where the results are
anti-dilutive).
C. Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under the
Companies (Indian Accounting Standards) Rules from time to time. For the year commencing April 1, 2025, MCA
has notified amendments to Ind AS 1 - Presentation of Financial Statements (relating to classification of liabilities
and covenant conditions), Ind AS 7 - Statement of Cash Flows and Ind AS 107 - Financial Instruments: Disclosures
(relating to supplier finance arrangements), and Ind AS 12 - Income Taxes (relating to introduction of temporary
exception for recognition of deferred tax on top-up tax under global minimum tax rules). The Company has reviewed
these amendments and based on its evaluation has determined that they do not have any significant impact on its
financial statements.
Note 2.2 Fair Value measurement of the Company's investment properties
The fair value of the Company's investment properties as at 31st March, 2026 have been arrived at on the basis of a
valuation carried out by Shubh Lakshmi Valuers, independent valuer not related to the Company. Shubh Lakshmi Valuers
is registered with the authority which governs the valuers in India, and has appropriate qualifications and experience
in the valuation of properties in the relevant locations. The fair value was determined based on the market enquiry
approach that reflects recent land rates for similar properties. Details of the Company's investment properties and
information about the fair value hierarchy as at 31st March, 2026 is as follows:
* There was no change in Issued, Subscribed and Paid up share capital of the Company during the year and the
immediately preceding financial year.
10.01 Rights, Preferences and Restrictions
Equity Shares
i. The Company has only one class of equity shares referred to as equity shares having a par value of Rs. 1. Each holder
of equity shares is entitled to one vote per share.
ii. In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding. At present, there is no outstanding
Preference Shares.
Nature and Purpose of Reserves
Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders.
Capital Reserve: The excess of fair value of net assets acquired over consideration paid in a common control transaction
is recognised as capital reserve. The Company had recognised capital reserve representing the difference between the
net identifiable assets acquired and consideration paid, on amalgamation of Vareli Trading Company Limited with the
Company.
Other Comprehensive income: Other comprehensive income comprises items of income and expense (including
reclassification adjustments) that are not recognised in profit or loss as required or permitted by other Ind AS.
Items of Other Comprehensive Income
i) Remeasurements of Net Defined Benefit Plans: Differences between the interest income on plan assets and the
return actually achieved, and any changes in the liabilities over the year due to changes in actuarial assumptions or
experience adjustments within the plans, are recognised in 'Other comprehensive income' and subsequently not
reclassified to the Statement of Profit and Loss.
(a) New Labour Code:
Consequent to introduction of New Labour Codes w.e.f. 21st November 2025, pending promulgation of rules in
this regard, the Company on provisional basis made its assessment. Based on management assessment and the
best information available, and in line with the Institute of Chartered Accountants of India (ICAI) guidance, the
incremental impact of these changes is not material to the financial statements for the year ended 31st March 2026.
Further, the Company will assess the financial implications, if any, against these codes and will account for the same,
subsequent to promulgation of the related Rules.
(b) Defined Contribution Plan:
The Company has Recognized Rs.8.98 Lakhs for Provident Fund contribution in the Statement of Profit and Loss for
the year ended March 31, 2026 (Previous Year Rs.8.35 Lakhs)
(c) Defined Benefit Plan:
The present value of obligation is determined based on actuarial valuation. These plans typically expose the
Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
i) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds.
Plan investment is a mix of investments in government securities, and other debt instruments.
ii) Interest Risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan's investments.
iii) Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan's liability.
iv) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's
liability
A description of methods used for sensitivity analysis and its Limitations:
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously.
The method used does not indicate anything about the likelihood of change in any parameter and the extent of the
change if any.
25.02 Corporate Social Responsibility:
(a) In compliance with the guidelines prescribed under Section 135 of the Companies Act, 2013, the Company
has constituted a Corporate Social Responsibility (CSR) Committee of the Board. The CSR Committee of
the Company has laid down the policy to meet the Corporate Social Responsibility. The CSR Policy includes
any activity that may be prescribed as CSR activity as per the Rules of the Companies Act, 2013.As per
section 135 of the Companies Act, 2013 ('Act'), a Company, meeting the applicability threshold, needs to
spend at least 2% of its average net profit for the immediately preceding three financial years on corporate
social responsibility (CSR) activities.
(b) For the F.Y. 2025-26, the provisions of Section 135 (1) of the Companies Act, 2013 were applicable. The
amount has been spent by the Company during the Financial year 2025-26 Rs.17.50 Lakh (Previous year:
Rs.10.60 Lakh) towards the CSR activities.
(c) The Company has spent an aggregate amount of Rs.17.50 Lakh (Previous Year Rs.10.60 Lakh) for
Conservation of natural resources, contribution to R & D, Rural Development, Promoting education and
healthcare etc.
Note: 28 Contingent Liabilities:
The Company does not have any claims or contingent Liabilities for the year. (Previous year: NIL)
Note: 29 Capital Management:
The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal
capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may
issue new shares or sell assets to reduce debt. The capital structure of the Company consists of debt and total equity of
the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product
and other strategic investment plans. The funding requirements are met through equity, External-commercial borrowings
and short-term borrowings. The Company's policy is aimed at combination of short-term and long-term borrowings. The
Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt
portfolio of the Company.
30.01 Categories of Financial Instruments and Fair Value Measurement:
This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial instruments into the three levels prescribed under the Ind AS 113
- Fair Value Measurement. An explanation of each level is as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3 - Unobservable inputs for the asset or liability.
The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade
receivables and trade payables at carrying value because their carrying amounts are a reasonable approximation of
the fair values due to their short term nature.
30.02 Financial Risk Management Framework:
Market Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk:
Currency Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
Interest Rate Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates.
Other Price Risk: The risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar
financial instruments traded in the market.
Credit Risk: The risk of financial loss arising from counterparty failure to repay or service debt according to
the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits
and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining
necessary approvals for credit. Outstanding customer receivables are regularly monitored. The Company maintains
its cash and cash equivalents and deposits with banks having good reputation and high quality credit ratings.
In addition, the Company is exposed to credit risk in relation to deposits related to lease premises. These deposits
are not past due or impaired.
Liquidity Risk: The risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
"The Company does not have any sanctioned borrowing facilities as of the reporting date"
Foreign Currency Risk Management:
The Company undertakes transactions denominated in foreign currencies and consequently, exposures to exchange
rate fluctuations arise. Exposure to currency risk relates primarily to the company's operating activities and
borrowings when transactions are denominated in a different currency from the Company's functional currency.
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss
and other comprehensive income and equity, where any transaction references more than one currency or where
assets/liabilities are denominated in a currency other than the functional currency of the Company. The Company
evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
Foreign Currency Exposure:
The Company does not have Foreign Currency exposure as on reporting date.
Note: 31 Leases:
The Company has elected below practical expedients on transition to Ind AS 116:
a) Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
b) Applied the exemption not to recognise right of use assets and lease liabilities with less than 12 months of lease
term on the date of initial application.
c) Excluded the initial direct costs from the measurement of right of use asset at the date of initial application.
d) Elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for
contracts entered into before the transition date, the Company relied on its assessment made applying Ind AS 17
Leases.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a
period of time in exchange for consideration.
e) The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have
a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease payments
associated with these leases are recognised as an expense on a straight line basis over the lease term.
Note 1: Considering the nature of operating activities of the Company , all sales and purchase transactions are
realised/settled on immediate basis. Accordingly, no trade receivables and trade payables related to
operations remain outstanding as at the reporting date and hence the Trade Receivables Turnover Ratio and
Trade Payables Turnover Ratio are not applicable.
2: Lease Liability has not been considered for calculating Debt Equity Ratio.
Note: 33 Segment Reporting:
The Company's business segment consists of a single segment of "Commodity Trading" in accordance with Ind AS 108
- 'Operation Segments' notified pursuant to the Companies (Indian Accounting Standard) Rules, 2015. Information with
respect to geographical segment, to the extent applicable is as follows:
Note: 35 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st
March, 2026.
Note: 36 Contribution to Political parties during the year 2025-26 is Rs.Nil (Previous Year Rs.Nil).
Note: 37 The Company has No borrowings from banks or financial institutions on the basis of security of current assets.
Note: 38 Additional Regulatory Information
Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as
given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and
other than those given elsewhere in any other notes to the Financial Statements.
i. The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters,
directors, KMPs, related parties, which are repayable on demand or where the agreement does not specify any
terms or period of repayment.
ii. There are no proceeding initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder as at March 31st 2026.
iii. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
iv. Ratios - Refer Note 32.
v. The Company has 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.
vi. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding, 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 to or on behalf of the Ultimate Beneficiaries.
vii. The Company has not been declared Wilful Defaulter by any bank or financial institutions or any other lender.
viii. The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013.
ix. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
x. The company has not revalued its property, plant equipment (including right of use assets) or intangible assets or
both during the current or previous year.
xi. The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India.
Additional Information
Additional Information pursuant to Clause 7(l) of General Instructions for preparation of Statement of Profit and
Loss as given in Part II of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent
relevant and other than those given elsewhere in any other notes to the Financial Statements.
i. The Company does not have any transaction which is not recorded in the books of accounts but 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).
ii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note: 39 Consequent to introduction of New Labour Codes w.e.f. 21st November 2025, pending promulgation of rules
in this regard, the Company on provisional basis made its assessment. Based on management assessment and the best
information available, and in line with the Institute of Chartered Accountants of India (ICAI) guidance, the incremental
impact of these changes is not material to the financial results for the quarter and year ended 31st March 2026. Further,
the Company will assess the financial implications, if any, against these codes and will account for the same, subsequent
to promulgation of the related Rules.
Note: 40 The proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts)
AmendmentRules 2021 requires companies, which uses accounting software for maintaining its books of accounts, to
use only such accounting software which has a feature of recording audit trail of each and every transaction, creating
an edit log of each change made in the books of accounts along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.The Company has used accounting software for maintaining its books
of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the respective software. Further, where the audit trail (edit log) facility was
enabled and operated at operational level but not on database level, the audit trail feature has not been tampered with.
Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention .
Note: 41 Figures for the previous year have been regrouped/reclassified/restated wherever necessary.
Note: 42 The financial statements are approved by the Company's Board of Directors on 26th May, 2026.
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