xiii Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past events and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate
can be made of the amount of obligation. Provisions (excluding gratuity and compensated absences) are determined based on
management's estimate required to settle the obligation at the Balance Sheet date. In case the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost. These are reviewed at each Balance Sheet date and adjusted to
reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. A contingent liability
also arises, in rare cases, where a liability cannot be recognised because it cannot be measured reliably.
Contingent assets are disclosed in the financial statements.
xix Operating Segment
Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker
(CODM).The Company has identified its Managing Director as CODM which assesses the operational performance and position of the
Company and makes strategic decisions.
xx Application of new and amended standards:
The company has adopted, with effect from April 1, 2024, the following new and revised standards and interpretations. Their adoption has
not had any significant impact on the amounts reported in the financial statements.
(i) MCA has issued amendments to IND AS 116 concerning sale and leaseback contracts. The amendment specifies the requirements for a
seller-lessee in measuring the lease liability arising from a sale and leaseback transaction. It ensures that the seller-lessee does not
recognize any amount of the gain or loss related to the right of use it retains.
* During the period the Company has issued share by way of Right share on September 09, 2024. The number of share was issued is 14,03,182 at the price of Rs 32 per
share.
b.Terms/rights attached to equity shares:
i) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.
ii) The Company declare and pays dividend in Indian Rupees. Each equity shareholder has the same right of dividend.
iii) In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
iv) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Hire purchase loans amounting to Rs 4.83 lakhs ( PY 6.52 Lakhs ) are secured by hypothecation of respective vehicle financed. The loan carries interest @ 15.25% p.a. The
loan is repayble in 60 monthly instalments starting from September 10, 2022 to August 10, 2027.
Facility from Bank of Maharashtra ( BOM )
Cash Credit from BOM amounting to Rs. 559.01 Lakhs (PY Rs. 557.78 Lakhs) carries interest rate @ 14.80% p.a. is secured by 1st Hypothecation charge on Stocks,
Receivable & all current assets and collaterally secured by Equitable Mortgage of Commercial Property of Directors and others. It is further secured by Personal Guarantee of
Directors of the Company and other individual.
Note: Reason for difference in value reported to bank and that mentioned in books is as follows:
The reason for differences in inventories is because the company has recongnised the unbilled revenue in trade receivable as well as inventory, secondly the inventory is
shown in stock statement at full value whereas in the financial statement it is shown at realisable value.
The reason for difference in Advance to suppliers is because the same was not furnished in the stock statement.
The reason for difference in Trade payable is due to invoice received after the submission of stock statement in in Q-1 and Q-4 and for Q-2 & Q-3 excess provision was made
for expenses.
38 Financial risk management objectives and policies
Risk management framework
A wide range of risks may affect the Company's business and operational / financial performance. The risks that could have significant influence
on the Company are market risk, credit risk and liquidity risk. The Company's Board of Directors reviews and sets out policies for managing
these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company's operational
and financial performance.
i. Market risk
Market Risk is 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, interest rate risk and other price risk.
ii. Currency risk
The Company is not much exposed to currency risk.
iii. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances. To
manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic
trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial
instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business
environment in which the entity operates. The Company uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating
agencies, financial condition, ageing of accounts receivable and the Company's historical experience for customers.
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant increase in credit risk on other financial instruments of the same counterparty
v) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan
with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to
recover the receivable due, When recoverable are made, these are recognised as income in the statement of profit and loss.
The Company measures the expected credit loss of trade and other receivables 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) Cash and cash equivalents and Other
The Company held cash and cash equivalents and other bank balances of Rs.6.02 Lakhs at 31st March 2024 (PY Rs.3.72 lakhs). The cash and
cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing.
iv. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's total debt obligations with
floating interest rates.
The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the Company is as follows:
vi. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Company's short, medium and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing
facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
vii. Other price risk
The Company is not exposed to any other price risk.
40 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the
equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns
for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the
dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio
which is total debt divided by total capital plus total debts.
30 Segment reporting as required under Indian Accounting Standard 108, “Operating Segments”
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, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the
Managing Director of the Company. The Company operates only in one Business Segment i.e. “Construction Contracts”, hence does not have any
reportable Segments as per Ind AS 108 “Operating Segments”.
Information about major customers - There are 2 customers from whom the revenues is generated by 10 % or more of Company's Total Revenue during
the year by an amounting to Rs 696.70 Lakhs ( PY 490.93 lakhs ).
31 Liabilities in respect of gratuity is accounted for on cash basis which is not in conformity with Indian Accounting Standard (IndAS)19 on Employee Benefits
which requires that Gratuity Liabilities be accounted for on accrual basis.
37 Fair Value Measurement
A. Accounting classification and fair values
The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of
these instruments
(b) Fi nanci al i nstruments wi th fixed and vari able i nterest rates are evaluated by the Company based on parameters such as i nterest rates and i ndivi dual credit worthi ness of the counterparty. Based on thi s
evaluation, allowances are taken to account for the expected losses of these receivables.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial
assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.
If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3.
B. Fair Value Hierarchy.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
41 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013
1. The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company
for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
2. The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.
3. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013
read with the Companies (Restriction on number of layers) Rules, 2017.
4. Utilisation of borrowed funds and share premium
I. 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.
II. The Company has 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.
5. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or
survey), that has not been recorded in the books of account.
6. The Company has not traded or invested in crypto currency or virtual currency during the year.
7. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory
period.
8. The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
9. The Company has not entered into any transaction with the struck off companies under section 248 companies Act , 2013.
42 Prior year comparatives
Previous year's figures have been regrouped or reclassified, to conform to the current year's presentation wherever considered necessary.
As per our attached report of even date
For S G C O & Co. LLP For and on behalf of the Board
Chartered Accountants Vishvprabha Ventures Limited
FRN No.:112081W/W100184
SD/- SD/- SD/_ SD/_ SD/-
Suresh Murarka Mitesh Thakkar Paresh Desai Ajay Kumar Singh Rudrabahadur Bhujel
Partner Managing Director Whole time Director Chief Financial Officer Company Secretary
Mem. No. 44739 (DIN:06480213) (DIN:08602174)
Place : Mumbai Place : Dombivali, Thane
Date : May 30, 2025 Date : May 30, 2025
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