v PROVISIONS, CONTINGENT LiABHTV & CONTINGENT ASSETS
Provision is recognised when:
-The Company has a present obligation as a result of a past event,
-A probable outflow of resources is expected to settle the obligation and
-A reliable estimate of the amount of the obligation can be made.
Reimbursement of the expenditure required to settle a provision is recognised as per contract provisions or when it is virtually certain
that reimbursement will be received.
Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
1- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
2 -Level 2 — Valuation techniques for which the lowest level Input that is significant to the lair value measurement is directly or
indirectly observable
3 -Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine
whether the change is reasonable.
For the purpose of lair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
x FINANCIAL INSTRUMENTS
1) Financial assets NIL
2 ) Finacial Liabilities
A Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, or as payables, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of financial liability not recognised at FVTPL, transaction
cost that are attributable to the acquisition of financial liability. The subsequent measurement of financial liabilities depends on their
classification, which is described below
B Subsequent measurement Financial Assets
i) Financial liabilities at Amortised Cost
Financial liabilities at amortised cost represented by trade and other payables, security deposits and Loans etc are initially recognized
at fair value, and subsequently carried at amortized cost using the effective interest rate method. Under the effective interest method,
the future cash payments are exactly discounted to the initial recognition value using the effective interest rate. The cumulative
amortization using the effective interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liability over the relevant period of the
financial liability to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective
interest method is recognized as interest expense over the relevant period of the financial liability. The same is included under finance
ii) Financial liabilities at FVTPL
The company has not designated any financial liabilities at FVTPL.
C De-recognition
A financial liability is derecognised 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 a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognised in the statement of Profit & Loss.
xi BORROWINGS
Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the
borrowings using the effective interest method.
Interest Free Borrowings are recognised at carrying cost whose period of repayment is uncertain or undefind. The Company has
measured the borrowings from directors at cost in the financial statements. __
xii EMPLOYEE BENEFITS
til Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in Profit & Loss account in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
xiii CASH FLOW STATEMENTS
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the available information.
xiv GOING CONCERN ASSUMPTION
The company have accumulated losses which in result eroded the entire net w'orth of the company and the labilities of the company
has exceeded the assets of the company as at Balance sheet date. There is no business activity in the company during the year which
clearly indicated the existence of material uncertainty that may cast significant doubt on the company’s ability to continue as a going
concern. However, the financial statements of the company have been prepared on a going concern. The company has started
exploring the future plans for cany out business operations in the F.Y.2024-25.
IV ROUND-OFF
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of
Schedule ill, unless otherwise stated.
xvi The accounting policies that are currently not relevant or material to the company have not been disclosed. When such accounting
policies become relevant or material and have significant impact, the same shall be disclosed. -----
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