i. Risk management framework
The company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the mechanism of property defined framework.
The Company's risk management polices are establised to identify and analyze the risks faced by the Company, to set appropriate risk limites and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company's Audit Committee oversees compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to its Audit Committee.
ii. 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 receivables from customers and losn given.
The carrying amount of following financial assets represents the maximum credit exposure.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The Company Management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the company's standard payment and delivery terms and conditions are offered.
iii. 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 assets. The Company's approach to managing liquidity is to ensure, as fas as possible , that it will have sufficient liquidity to meet its liabilites when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damange to the Company's reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the cash flows generated from operations to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the Company's treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position comprising the undrawn borrowing facilities and cash and cash equivalent on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set by the company. In additon, the Company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets nacessary to meet these, monitoring balance sheet liquidty ratios against internal and external requlatory requirements and maintaining debt financing plans.
iv. Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company' s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market exposures withing acceptable parameters, while optimising the return.
Currency risk : As company does not deals in foreign currencies, therefore this risk mitigates for the company.
Commodity risk: As company deals in services sector , therefore this risk mitigates for the company.
Interest Risk: As the Company does not have any borrowings from outsider, therefore this risk mitigates for the company.
Note 35 : CAPITAL MANAGEMENT
The Company manages its capital to ensure that is will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Compnay consits of Zero debt and having only equity and internal accurals.
Note No 38 : All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and othei set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.
Note No 40 : Other Statutory Information
i) The Company has not traded or invested in crypto currency or virtual currency during the year.
ii) 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.
iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as survey or survey), that has not been recorded in the books of account.
iv) 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.
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 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
vii) The Company has not been declared wilful defaulter by any banks / financial institution or government or any government authority.
viii) The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets during the current year or previous year.
ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
x) The Company has not obtained any term loans from banks and financial institution during the year.
xi) The Company does not have any transactions and outstanding balances during the current as well previous year with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
Note No 41 : Fixed Assets transferred at Book value of INR 38.77 Lacs (approx) from Keerti Institute India Private Limited against the Loan Receivable as per the Board Meeting held on March 22, 2024.
Note No 42 : Ratio : As per " Annexure A"
Note No 43 : Figures of the previous year have been regrouped, reclassified and/or rearranged whenever necessary to compare with the figures of the current year.
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