2.6 Provisions and contingent liabilities
Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required
to settle the present obligation at the Balance sheet date.
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.
The Company records a provision for decommissioning costs. Decommissioning costs are provided at the present
value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost
of the particular asset. The cash flows are discounted at a current pre- tax rate that reflects the risks specific to
the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized in the
statement of profit and loss as a finance cost. The estimated future costs of decommissioning are reviewed
annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are
added to or deducted from the cost of the asset.
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 or a reliable estimate of the amount cannot be
made.
2.7 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and demand deposits with
an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and
demand deposits.
2.8 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
(A) Financial assets
(i) 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 profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial
assets measured at amortised cost.
(ii) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
a) at amortized cost; or
b) at fair value through other comprehensive income; or
c) at fair value through profit or loss.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows.
Debt Instruments: Subsequent measurement of debt instruments depends on the Company's business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement categories into
which the Company classifies its debt instruments.
Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment
that is subsequently measured at amortised cost is recognised in profit or loss when the asset is derecognised or
impaired. Interest income from these financial assets is included in finance income using the effective interest
rate method (EIR).
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash
flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and
interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying
amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and
foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial
asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to
Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets
is included in other income using the effective interest rate method.
Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured
at fair value through profit or loss. Interest income from these financial assets is included in other income.
Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading and contingent consideration recognised by an acquirer in a business combination to
which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument- by-instrument basis. The classification is made on initial
recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to
P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in
the profit and loss. The Company has currently exercised irrevocable option to classify its investment in equity
instruments of PQR Private Limited. Other than this no other equity instrument qualifies definition of financial
asset in case of the Company.
(iii) Impairment of financial assets
In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and
FVOCI.
For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there
is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on 12 month ECL.
Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of
a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that
are possible within 12 months after the year end.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR.
When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument
(including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases
when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use
the remaining contractual term of the financial instrument.
In general, it is presumed that credit risk has significantly increased since initial recognition if the payment is more
than 30 days past due.
ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the
statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented
as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance
reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment
allowance from the gross carrying amount.
(iv) Derecognition of financial assets
A financial asset is derecognized only when
a) the rights to receive cash flows from the financial asset is transferred or
b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.
Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all
risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.
(B) Financial liabilities
(i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and
at amortized cost, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of
directly attributable transaction costs.
(ii) Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using
the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are
derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included as finance costs in the Statement of Profit and Loss.
(iii) Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the Statement of Profit and Loss as finance costs.
(C) Embedded derivatives
An embedded derivative is a component of a hybrid (combined) instrument that also includes a non- derivative
host contract - with the effect that some of the cash flows of the combined instrument vary in a way similar to a
standalone derivative. Derivatives embedded in all other host contract are separated if the economic
characteristics and risks of the embedded derivative are not closely related to the economic characteristics and
risks of the host and are measured at fair value through profit or loss. Embedded derivatives closely related to
the host contracts are not separated.
Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the
cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through
profit or loss.
(D) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where 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. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.
2.9 Contributed equity
Equity shares are classified as equity share capital. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
2.10 Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered
in ascertaining the Company's earnings per share is the net profit or loss for the year after deducting preference
dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding
during the year and for all the years presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares, that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects
of all dilutive potential equity shares.
2.11 Rounding off amounts
All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as per
requirement of Schedule III of the Act, unless otherwise stated.
19 Relationship with struck off compaines under section 248 of the Compaines Act, 2013 or section 560 of
Companies Act 1956,
The Company does not have any transactions with struck-off companies
20 Registration of Charges or satisfaction with Registrar Compaines
The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.
21 Compliance with number of layers of compaines
The Company has no subsidiary hence, clause (87) of section 2 of the Companies Act 2013 read with
Companies (Restrictions on number of Layers) Rules, 2017 is not applicable.
22 Utilization of borrow fund
I) The Company has not advance or loaned or invested fund 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"
(II) The Company has not received any funds 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 to or on behalf of the Ultimate Beneficiaries.
23 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
24 Undisclosed Income
The Company does not have any undisclosed income which is not recorded in the books of account that has
been surrendered or disclosed as income during the year (previous 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.
25 Corporate Social Responsibility
The provisions with respect to Corporate Social Responsibility are not applicable to the Company as the
Company does not fall within the purview of the Section 135 of the Companies Act, 2013 and Rules made
thereunder.
26 Events after the reporting period
There are no significant subsequent events between the year ended 31 March 2024 and signing of financial
statements as on 30 May 2024 which have material impact on the financials of the Company.
27 Approval of financial statements
The financial statements were approved for issue by the Board of Directors on 30 May 2024.
28 The Code on Social Security 2020 (‘the Code') relating to employee benefits, during the employment and post¬
employment, has received Presidential assent on 28 September 2020. The Code has been published in the
Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on 13
November 2020. However, the effective date from which the changes are applicable is yet to be notified and
rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the
Code and will give appropriate impact in the financial statements in the period in which, the Code becomes
effective and the related rules to determine the financial impact are published.
28 In view of there being subtantial carry forward of losses and unabsorbed depreciation available to the Company
under Income Tax Law, no provision for tax has been made in the accounts.
29 No sitting fees have been paid / provided to the directors for attending the meeting of the Board and Committee
meetings.
30 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by
Schedule III of the Act.
See acompanying notes to the financial statements 1-31
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For THAKUR, VAIDYANATH AIYAR & CO. For and on behalf of Board of Directors of
Chartered Accountants V. R. Woodart Limited
Firm Registration No.:000038N CIN: L51909MH1989PLC138292
C V Parameswar Rashmi Anand Sanjay Anand
Partner Whole-time Director Non-Executive Director
M. No: 011541 DIN : 00366258 DIN: 01367853
Place : Mumbai Shagufta Sadikot Anwar Shaikh
Date : 30-May 2024 Company Secretary CFO
M No: A72982
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