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, 2025 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, 2025 is as follows: *There are two parcels of land at Vareli. One is classified as 'Freehold Land' under the Property, Plant & Equipment head, as there is no intention to sell it, and it is valued at cost. The second parcel is shown under the 'Investment Property' head, as it is held solely for capital appreciation, and it is also valued at cost. Therefore, the fair value mentioned above pertains to the land valued at cost under the head 'Investment Property'.
* There was no change in Issued, Subscribed and Paid up share capital of the Company during the year and the immediately preceding financial year.
11.01 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.
11.04 For the period of five years immediately preceding the date as at which the balance sheet is prepared, no shares are
i) Allotted any equity shares for consideration other than cash.
ii) Allotted as fully paid shares by way of bonus shares.
iii) Bought back.
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.
ii) Equity Instruments through Other Comprehensive Income: The fair value change of the equity instruments measured at fair value through other comprehensive income is recognised in Equity instruments through Other Comprehensive Income. Upon de-recognition, the cumulative fair value changes on the said instruments will not be reclassified to the Statement of Profit and Loss.
(a) Defined Contribution Plan:
The Company has Recognized Rs.8.35 Lakhs for Provident Fund contribution in the Statement of Profit and Loss for
the year ended March 31, 2025 (Previous Year Rs.7.32 Lakhs)
(b) 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.
(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. 2024-25, 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 2024-25 Rs.10.60 Lacs (Previous year: Rs. NIL) towards the CSR activities.
(c) The Company has spent an aggregate amount of Rs.10.60 Lakhs (Previous Year NIL) for promotion of national heritage, art and culture, Conservation of natural resources and Education etc.
Note: 29 Contingent Liabilities:
The Company does not have any claims or contingent Liabilities for the year. (Previous year: NIL)
Note: 30 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.
The Company is not subject to any externally imposed capital requirements.
Note: 31 Financial Instruments:
31.01 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.
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: 32 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.
f) The weighted average incremental borrowing rate applied to lease liabilities as at 1st January, 2024 is 9.15%.
(ii) The carrying value of the Rights-of-use Assets and depreciation charged during the year
For details pertaining to the carrying value of right of use of assets as on 31st March, 2025 is Rs. 157.02 Lakhs and previous year is Rs. 177.50 Lakhs and depreciation charged thereon during the year of Rs 20.48 Lakhs. (Previous year Rs.18.46 Lakhs).
Refer note -1 "Property, Plant & Equipments & Intangible Assets".
Note: 36
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2025.
Note: 37
Contribution to Political parties during the year 2024-25 is Rs.Nil (Previous Year Rs.Nil).
Note: 38
The Company has No borrowings from banks or financial institutions on the basis of security of current assets.
Note: 39 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.
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 33.
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: 40 Code on Social Security
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules to determine the financial impact are published.
Note: 41
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, 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: 42
Figures for the previous year have been regrouped/reclassified/restated wherever necessary.
Note: 43
The financial statements are approved for issue by the Company's Board of Directors on 27th May, 2025.
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