(k) Provisions, contingencies and commitments
A provision is recognised 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 recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be
required in settlement is determined by considering the class of obligations as a whole. A
provision is recognised even if the likelihood of an outflow with respect to any one item
included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense.
A disclosure for contingent liabilities is made where there is:
(a) a possible obligation that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity; or
(b) a present obligation that arises from past events but is not recognized because it is not
probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; or the amount of the obligation cannot be measured with
sufficient reliability.
Commitments include the amount of purchase order (net of advances) issued to
parties for completion of assets.
(l) Employee benefit
Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognized in respect of employees' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the
balance sheet.
(m) Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised
and no longer at the discretion of the entity, on or before the end of the reporting period
but not distributed at the end of the reporting period.
(n) Earnings per share
Basic earnings per share is computed by dividing the profit/(loss) for the year by the
weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted for treasury shares,
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse
share split.
Diluted earnings per share is computed by dividing the profit/(loss) for the year as adjusted
for dividend, interest and other charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number
of equity shares which could have been issued on the conversion of all dilutive potential
equity shares. Potential equity shares are deemed to be dilutive only if their conversion to
equity shares would decrease the net profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be converted as at the beginning of the
period, unless they have been issued at a later date.
(o) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the
nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2. Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise
judgment in applying the company's accounting policies.
This note provides an overview of the areas that involved a higher degree of judgment or
complexity, and of items which are more likely to be materially adjusted clue to estimates
and assumptions turning out to be different than those originally assessed. Detailed
information about each of these estimates and judgments is included in relevant notes
together with information about the basis of calculation for each affected line item in the
financial statements.
The said estimates are based on the facts and events, that existed as at the reporting date,
or that occurred after that date but provide additional evidence about conditions existing
as at the reporting date.
Critical estimates and judgments
The areas involving critical estimates or judgments are:
• Estimated Fair value of financial instruments
• Estimated credit loss of trade receivables
Notes:
(i) No balances in respect of the related parties has been provided for/written off / written back, except
what is stated above
(ii) Related party relationship is as identified by the management and relied upon by the auditors.
19 Fair value measurements
(i) Fair value hierarchy
This section explains the judgments 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 group has classified its financial instruments into the three levels prescribed under the accounting
standard. An explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments
(including bonds) which are traded in the stock exchanges are valued using the closing price as at the reporting
period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximise the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the use of discounted cash flow for fair value at amortised cost
Note: There are no financial assets/liabilities categorized under Level 2 and Level 3
20 Financial risk management
The Company's activities expose it to business risk, interest rate risk, liquidity risk and credit risk. In order to
minimise any adverse effects on the financial performance, the company's risk management is carried out by a
corporate treasury and corporate finance department under policies approved by the board of directors and top
management.Company's treasury identifies, evaluates and mitigates financial risks in close cooperation with the
Company's operating units. The board provides guidance for overall risk management, as well as policies covering
specific areas.
(A) Credit Risk
Credit risk is managed at segment as well as Company level. For banks and financial institutions, only high rated
banks/institutions are accepted.
For other financial assets, the Company assesses and manages credit risk based on internal control and credit
management system. The finance function consists of a separate team who assess and maintain an internal credit
management system. Internal credit control and management is performed on a group basis for each class of
financial instruments with different characteristics.
The company considers whether there has been a significant increase in credit risk on an ongoing basis throughout
each reporting period. It considers available reasonable and supportive forward-looking information.
Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered
as part of the internal credit management system.
A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of
default is determined by considering the business environment in which entity operates and other macro-economic
factors.
Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates.Loss rates are based
on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not
material hence no additional provision considered.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding to meet obligations when due. Due to the dynamic nature of the underlying businesses, Company's
treasury maintains flexibility in funding by maintaining sufficient cash and bank balances available to meet the
working capital requirements. Management monitors rolling forecasts of the group's liquidity position (comprising
the unused cash and bank balances along with liquid investments) on the basis of expected cash flows. This is
generally carried out at Company level in accordance with practice and limits set by the group. These limits vary to
take into account the liquidity of the market in which the Company operates.
(i) Maturities of financial liabilities
The tables below analyse the group's financial liabilities into relevant maturity groupings based on their contractual
maturities for:
all non-derivative financial liabilities, and the amounts disclosed in the table are the contractual undiscounted cash
flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
(C) Market risk
(i) Price Risk
(a) Exposure
The Company's exposure to equity securities price risk arises from investments held by the Company and classified
in the balance sheet at fair value through OCI .
(b) Sensitivity
The table below summarizes the impact of increases/decreases of the BSE index on the Company's equity and
Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by
5 % with all other variables held constant, and that all the Company's equity instruments moved in line with the index.
21. Capital management
(a) Risk management
The Company's objectives when managing capital are to
1. 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
2. Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, reduce debt or sell assets.
25.Additional disclosure requirement as applicable to company as on 31st March 2024 as specified in revised
Schedule III of the companies act while preparation and presentation of financial statement is as follows:
i) The company has during the current financial year not undertaken revaluation its property and plant
and machinery
ii) There is no benami property held by the company
iii) There is no working capital loan taken by the company
iv) There is no wilful default by company in case of borrowings
v) There is no investment by company in crypto currency or virtual currency
vi) CSR is not applicable to company during the financial year 2023-24
vii) During the financial year 2023-2024, company has not done any transaction with companies struck off under
section 248 of the Companies Act 2013
viii) The Company has not entered into any scheme of arrangement during the fiancial year 2023-2024
26. Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to
or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company; or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
27. Contingent Liabilities In the opinion of the management, there is no contingent liability and adequate provision has
been made for all known liabilities, except interest and penalty as may arise.
28. Figures pertaining to previous year have been regrouped/reclassified wherever found necessary to conform to
current year presentation.
Signature to Notes No 1 to 28
As per our attached report of even date For and on behalf of the Board of Directors
For Bagaria & Co LLP of SW Investments Limited
Chartered Accountants Lalitha Cheripalli Pankaj Jain
(Firm Registration No. 113447W/W-100019) Wki°le Time D^ctoi- Director
(DIN: 07026989) (DIN: 00048283)
Vinay Somani Sandhya Malhotra Gautam Panchal
Partner ^ Director Director
Membership No. 143503 (Din: 06450511) (DIN: 07826634)
Place : Mumbai
Date : 27th May 2024 Pravin Musahib Shaily Dedhia
Chief Financial Officer Company Secretary
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