Ind AS 1.122 The preparation of the company's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, uicluding the accompanying disclosures, and the disclosure of contmgeut liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a mateiral adjustment to the carrying amount of assets or liabilities affected in liimre periods.
JUDGEMENTS
hi the process of applying the company's accountmg policies, management has made the following judgements, which have the most significant effect on the amomits recognised in the financial statements:
Useful lives of Property, plant aud equipment and Intangible assets
The Company reviews the useful life at the end of each reporting period. This re-assessment may result m change in depreciation'’ amortisation expenses in fimnc period
Contingencies
Contingent liabilities may arise fiom the ordinary course of business in relation to clauns against the Company, iucludmg legal cases, demands from income tax authorities authorities, non-submission of C-forms and other claims By then nanue. coutmgeucies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quaunun. of contuigencies uihereutlv involves the exercise of significant judgement aud the use of estimates regardmg the outcome of future events.
ESTIMATES AND ASSUMPTIONS
Ind AS The key assmuptious concerning the future and othei key sources of estimation micertainty at the rcportuig date, that have a
1.125 significant risk of causmg a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are
described below. The company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about fiinire developments, however, may change due to market changes oi circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.
Defined benefit plans (gratuity benefits)
The present value of the gratuity obligations and leave encashments ate determined usmg actuarial valuations .An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the deteiimnatiou of the discount rate, future salary increases aud retirement age Due to the complexities mvolved in the valuation and its long-term nanue. a defined benefit obligation is highly sensitive to changes in these assumptions All assmuptious are reviewed at each reporting date
The parameter most subject to change is the discount rate. In detennining the appropriate discount rate for plans operated m India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the postemployment benefit obligation The underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high quality coiporate bonds.
The mortality rate is based on publicly available mortality tables for the specific countries Those mortality tables tend to change only at mterval in response to demographic changes Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.
Further details about gratuity obligations are given in Note 33.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measuied based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model The inputs to these models are taken from observable markets where possible, but where tins is not feasible, a degree of judgement is required in establishing fair values Judgements include considerations of inputs such as liquidity risk, credit risk and volatility Changes in assumptions about these factors could affect the reported fan value of financial mstniments. See Note 44 aud 4? for further disclosures.
Income Taxes
The Company is subject to income tax laws as applicable in India. Significant judgment is required in detennining provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertam during the ordinary course of business. The Company recognizes liabilities for anticipated tax issues based on estimates of whether additional taxes will be due Where the final tax outcome of these matters is different fi om the amounts that were initially recorded, such differences will impact the income tax aud deferred tax provisions in the period in which such determination is made.
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C outiugeut I .labilities ftp tin- extent not prp>1dfd forj
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Particular*
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As at 31.03.2024
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As at 31.03.2023
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Chum agarnst the Company uot ackuowledped a* debts*
Guarantee given
Income- tax deiiiauds*0
Outstanding lettet of creviit
Pendma export obligation midcr EPCG scheme
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Total
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As per Section 135 of the Companies Act, 3013. a Corporate Social Responsibility (CSR) committee has been framed bv the Company The areas for CSR activities are promoting preventive health care, ptomoting education setting up old age homes foi senior citizens, ensuring environment sustainability and protecnon of flora and fauna training to promote rural sports and rnral development projects
Gross amount required to be spent bv the Company durmg the sear is Rs NIL (Previous veai Rs ml)_
41 OTHER STATUTORY INFORMATION
i) The Company does uol have any immovable property whose title deed is not held in name of the company
111 The Cornpany lias not valued any of its Property.Plant and Equipment t including Right to use Assets) during the year
iii) The company does not have any Beuanii property, where any proceeding has been initiated or pending against the company for holding any Beuanii property.
iv) The company has borrowings from the bank or financial institutions on the basis of security of current assets, the quareterly returns or statement of current assets filed with such bank financial insrinirion are reconciled with the books of accounts.
vi) The Company is not declared as willhil defaulter by any bank or financial institution (as defined under the Companies Act. 2013) or consortium thereof or other lender m accordance with the gmdelines on w illful defaulters issued by the Reserve Bank of India.
vii) The company has not done any tranachons with companies struck off under section 248 of the companies Act 2013 or section 560 of companies Act 1956.
vih) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the stanitorv period.
ix)
The Company lias complied with the number of layers for its holdmg in downstream companies prescribed undei clause (87) of section 2 of the Companies Act. 2013 read with the Companies (Restriction on number of Layers) Rules. 2017.
x)
Company has not advanced or loaned or invested funds to any other persou(s) or eutityus). me hiding 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 oil behalf of the Ultimate Beneficiaries
xi)
The Company has not received any hind from any person!s) or entity!is), including foreign entities (Funding Party) with the luiderstandmg (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified m any manner w hatsoever by or on behalf of the Fimding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
xii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income dining 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.
xiii) The Company lias not traded or invested in Crypto currency or Virtual Currency dining the financial year.
xiv) The company has uol granted any loan & advances in nature of loans to promotors. diiectors.KMPs ami related parties . either severally or jointly with any other person, that are
(a) Repayable on demand or
^^^^^^^b)jvithout_s£ecifViu2auyjennoijieriodofrejxi£ment^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^_i 42 Forward Contracts
The Company emeis into Derivative contracts in the nature of forward contracts taken in order to heJge its foreign currency exposure in respect of export u ade receivables Such denvame financial instruments are initially recognized at fair value on the date on winch forward contract is entered into and are subsequently re-measured at fair value Derivatives are carried as financial assets when die fan valuation on the date of re-measurement results into gain to the Company and financial liability vvlten the fan valuation results into loss to the Company.
43 Segment Information Segment Reporting
The Company's whole time diicctors examines the Company's performance They have determined "manufacturing of SHOESs" and its components to be its suigle reportable business segment
The company has common fixed assets for inauufnctunng goods for domestic and overseas market Hence separate figures for fixed assets additions to fixed cam lot be hum shed
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