xii) Contingent liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation..
xiii) Related Party Transactions
A related party transaction is a two-party contract which is accompanied by a pre-existing business relationship or mutual interestt:
xiv) Provision for Tax & Deferred Tax Liability: Provision for deferred tax has been accounted in accordance with Ind AS 12 ‘Income Taxes’
xv) Foreign Exchange: (Amount in Lakhs)
FOB Value of Exports during the year - Rs. 13013.92/-CIF Value of Imports during the year - Rs. 389490.67/-
xvi) xvi) There are no Micro Small and Medium Enterprises to whom the company owes dues, as at 31st March 2024. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company
xvii) As on 31.03.2024 the company had Advance received of Rs. 32963.86 Lakh from debtors outstanding for more than 365 days. The same has been considered as deposit as per Sub rule (xii) Rule-2 of the Acceptance of Deposits by Companies Rules, 2014
xviii) During the year under consideration the company has considered Net Sales of Rs. 577415.05 Lakh which are in GST portal in the month of April of FY 2024-25. Since the gross inflow of economic benefits receivable by the company for the said transaction is in FY 2023-24, therefore the same has been recorded in current reporting period
xix) The Company has paid Remuneration to its director as per Section 197 of Companies Act 2013. Following are the details of Remuneration paid to director (Other than Directors Sitting Fees).
xxiii) During the year under review there is a contingent liability of Rs.21.70 Lakh of income tax assessment year 201617. As per the Share Purchase Agreement between the Acquirer and the Seller dated 09th August 2018, any liability other than those disclosed in the Audited Balance Sheet of the Company as on 31.03.2018, shall paid by the Seller.
xxiv) In the opinion of the Board and to the best of their knowledge and belief, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of the business, and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.
xxv) Financial risk management:
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors are responsible for overseeing the Company’s risk assessment and management policies and processes.
a) Credit Risk: Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company’s credit risk arises from accounts receivable balances. Accounts receivable balances outstanding as on reporting date amount to Rs.92,060.18 Lakhs which pertains to the amount receivable from a non related party.
The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.
b) Liquidity risk: Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.”
c) Market risk- foreign exchange: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, deposits, trade receivables and other financial instruments.
d) Interest rate risk: The Company’s policy is to minimize interest rate cash flow risk exposures on long-term financing. As at 31 March 2024, the Company is not exposed to any risk pertaining to the changes in market interest rates.
e) Price Risk: The Company does not deal in trading in shares/commodity market. Therefore, The Company is not exposed to fluctuations in share price arising on purchase/ sale of shares.
(i) Details of Benami Property Held: According to the information and explanations given to us, the Company does not have any Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.
(ii) Willful Defaulter: According to the information and explanations given to us, the Company has not been declared a willful defaulter by any bank or financial institution or other lender.
(iii) Relationship with Struck off companies: According to the information and explanations given to us, the Company does not have any transactions with struck off companies.
(iv) Registration of Charges/Satisfaction with ROC: According to the information and explanations given to us, the Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(v) Details of Crypto currency or virtual currency: According to the information and explanations given to us, the Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(vi) Utilisation of borrowed funds and share premium:
1) According to the information and explanations given to us, the Company have 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
(c) The Company have not entered any transaction for which declaration have to be given for relevant provision of the Foreign Exchange Management Act,1999 (42 of 1999) and Companies Act as well as there is no violation of the Prevention of Money -Laundering Act,2002.
2) According to the information and explanations given to us,the Company have 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.
(c) The Company have not entered any transaction for which declaration have to be given for relevant provision of the Foreign Exchange Management Act,1999 (42 of 1999) and Companies Act as well as there is no violation of the Prevention of Money -Laundering Act,2002.
(vii) Undisclosed Income: According to the information and explanations given to us, the Company does not have any transaction which is not recorded in the books of accounts that 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).
(xxvii) Previous year’s figures have been regrouped, recast wherever necessary
As per our report of even date attached For and on Behalf of the Board
For M/s Taori Sandeep & Associates.
Chartered Accountants
F.R. No. 007414C
Atul Jain Adarsh Munjal Hanosh Santok
Partner Whole Time Director Director
M.No. 048920 DIN : 07304004 DIN : 08554687
Place : Mumbai Dhwani Desai Ashish Parkar
Dated : 27.05.2024 Company Secretary (ACS - A63688 ) Chief Financial Officer
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