(f) Provisions, Contingent liabilities and contingent assets:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present
value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not,
require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
All known Liabilities, wherever material, are provided for and Liabilities, which are disputed, are referred to by way of Notes on Accounts.
(g) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and balance with Bank.
(h) Earnings Per Share:
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is
adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation
of shares).
(i) Financial Instruments:
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. All the
financial assets and liabilities are measured initially at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial asset and financial liabilities (other than financial assets and liabilities carried at fair value through profit or loss) are added or
deducted from the fair value measured on initial recognition of financial asset or financial liability.
(j) (i) Classification and Measurement
(i) Recognition: Financial assets include Investments, Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents. Such
assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes
transaction costs unless the asset is being fair valued through the Statement of Profit and Loss
Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried at amortised cost or fair value (either
through other comprehensive income or through profit or loss). Such classification is determined on the basis of Company's business model
for managing the financial assets and the contractual terms of the cash flows.
The Company's financial assets primarily consists of cash and cash equivalents, trade receivables, loans to employees and security deposits
etc. which are classified as financial assets carried at amortised cost.
In respect of investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at
initial recognition may be made to present subsequent changes in fair value through other comprehensive income.
(ii) Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are
measured at amortised cost. A gain or loss on a financial assets that is subsequently measured at amortised cost is recognised in profit or loss
when the asset is derecognised or impaired. Interest income from these financial assets is recognised using the effective interest rate method.
(iii) Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade
receivables, the Company provides for lifetime expected credit losses recognised from initial recognition of the receivables.
(iv) Derecognition of financial assets
A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset or retains the
contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more
recipients.
(k) Cash flow statement
Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with
investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.
(l) Borrowing Costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds including interest expense
calculated using the effective interest method. Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of
those assets, until such time as the assets are substantially ready for their intended use or sale. Other income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation. Interest expense includes origination costs that are initially recognised as part of the carrying value of the financial liability and
amortized over the expected life using the EIR. It also include expenses related to borrowing which are not part of effective interest as not
directly related to loan origination.
(m) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Revenue,
expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under “Unallocated revenue/ expenses/
assets/ liabilities”.
(n) Financial Liabilities
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through
profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(o) Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the Ind AS requires the management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosure and the disclosure
of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected. Although these
estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have
the most significant effect on the amounts recognised in the financial statements is included in the notes.
(iii) MSME
The Company has not received any intimation from its suppliers regarding their status under The Micro, Small and Medium Enterprise
Development Act, 2006, hence no disclosure required under the said Act can be made.
(iv) Previous year's figures have been regrouped and rearranged wherever found necessary.
(v) The additional regulatory information has been attached as Annexure - I.
(vi) No provision for impairement loss has been made in respect of Sundry Debtors amounting to Rs.2,66,22,251/- which is outstanding for
more than 3 years and under sub-judice. Management considers the same fully recoverable as the judgement would be in favour of the
company as per legal opinion sought.
(I) Fair Value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at atomised cost and for which fair values are disclosed in the financial
statements, provide an indication about the reliability of inputs used in determining fair value. the Company has classified its
financial instruments into the three levels prescribed under the accounting standards.
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted price.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as lite as possible on entity-specifc estimates If all significant inputs
required to fair value an instruments are observable. the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
II) Valuation technique used to determine Fair Value
Specific valuation techniques used to value financial instruments include :
•the fair value of investments In quoted equity shares and mutual funds is measured at quoted price or NAV,
•the fair value of level 2 instruments is valued using inputs based on information about market participants assumptions and
other data that are available.
F) The Company uses accounting softwares for maintaining its books of account which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the accounting software. Further, there is no instance of
audit trail feature being tampered in respect of the accounting softwares. Additionally, the audit trail has been preserved by the Company as
per the statutory requirements for record retention.
i) The title deed of Immovable Property held by the company is in its own name.
ii) The company has not revalued its property, plant & equipment during the year.
iii) The company has no intangible assets.
iv) The company has not granted any loans or advances to promotors, directors, KMPs and the related parties (as defined under companies Act,
2013), either severally or jointly with any other person, that are repayable on demand or are without specifying any terms or period of
repayment.
v) There is no Capital-work-in progress at the year-end.
vi) There is no intangible assets under development at the year-end.
vii) The company has no benami property and no proceedings has been initiated or pending against the company for holding any benami
property under The Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.
viii) The company has taken borrowings from banks or financial institutions on the basis of security of current assets . Since borrowing is taken
against FD, no Quarterly return or statement of current assets is required to be filed by the company with banks or financial institutions.
ix) The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.
x) The company has no transactions with companies struck off u/s 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
xi) There is no pending case of any charge or satisfaction thereof, which is yet to be registered with ROC, beyond the statutory period.
xii) The company has not made any investment beyond the number of layers prescribed under clause 87 of section 2 of the Companie Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017
xiii) Ratio Analysis : Please refer Note No.- II attached herewith.
xiv) The company has not entered into any scheme of arrangement, approved by competent authority in terms of sections 230 to 237 of the
Companies Act, 2013.
xv) (A) 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 Funding Party
(Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(B) [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,
xvi) The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed
as income during the year in its tax assessments or under any other provisions of the Income Tax Act, 1961.
xvii) The provisions contained in Section 135 of the Companies Act, 2013 relating to CSR Activities are not applicable to the company for the
year under review.
xviii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
Signed in terms of our audit report of even date.
For Ranjit Jain & Co. For and on Behalf of Board of Directors
CHARTERED ACCOUNTANTS
FRN-322505E
Rajesh Kumar Kabra Ramawatar Kabra
CA ASHOK KUMAR AGARWAL (Director) (Director)
PARTNER (DIN : 00331305) (DIN : 00341280)
Membership No.056622
Place : Kolkata
Dated: 30/05/2025 Omprakash Agarwal Apeksha Agiwal
(Chief Financial Officer) (Company Secretary)
PAN-ADAPA6569R PAN-BJNPA2846K
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