4. Segment Reporting
The Company is primarily engaged in the business of consultancy advisory in the field of information technology and allied sectors. The Company operates in only one business segment and therefore, Accounting Standard 17 - "Segment Reporting" issued by the Institute of Chartered Accountants of In dia i s not a pplica b le to the co mpa ny.
5. Earnings per Share ['EPS']
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity Shares outstanding during the year.
Diluted EPS are calculated by dividing the profit for the year attributable to the Equity holders of the Company by weighted average number of Equity Shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
6. Taxes on Income Current Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously.
On 20 September 2019, the Government of India, vide Taxation Laws (Amendment) Ordinance 2019, inserted section 115BAA in the Income Tax Act, 1961, which provides domestic companies an option to pay Income Tax at reduced rates effective April 2019, subject to certain conditions. The tax expenses for the year ended March 31, 2025, have been provided for at such reduced rates.
Deferred Tax
Deferred tax is provided on temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences except for the following:
• Tax payable on the future remittance of the past earnings of subsidiaries where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
7. Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.
For the purpose of Cash Flow Statement, cash and cash equivalents consists of cash and bank balances reported under Current Assets.
8. Contingent Liabilities
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.
Contingent liabilities as on the Balance Sheet date are highlighted below: Nil
12.1. Additional disclosures pursuant amendments under the Companies Act, 2013 vide Notification dated 24 March 2021.
12.2. The Company does not hold or own immovable property. The shares in the society are in the name of the Directors.
12.3. No immovable property has been revalued during the year.
12.4. The Company has not made any loans or advances in the nature of loans to promoters, directors, Key Managerial Personnel and the related parties. Therefore, the disclosure relating to loans and advances given to the above referred persons along with the amounts outstanding, is not furnished.
12.5. There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
b. There are no intangible assets whose completion is overdue or whose cost has exceeded its original plan.
12.7. The Company has no borrowings from Banks or Financial Institutions on the basis of security of current assets. The bank loans have been repaid during the year. Hence, the relevant disclosure is not required to be furnished.
12.8. The Company has not been declared a wilful defaulter by any Bank or Financial Institution or other lender. Hence the disclosures under this clause are not applicable to the Company.
12.9. The Company has no relationship with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956. Hence the disclosures under this clause are not applicable.
12.10. There are no charges or satisfaction of charges pending beyond the statutory period defined under the Companies Act, 2013. Hence the disclosures under this clause are not applicable to the Com pany.
12.11. The Company does not have any subsidiary companies or associates or joint ventures. Hence, there are no layers of Companies. Therefore, the relevant disclosures under this clause are not applicable to the Company.
Reasons for variance above 25%:
There is an increase in current liabilities due to salary expenses of March 2025 not paid by March 2025.
Reasons for variance above 25%:
There is an increase in debt because the Company has obtained an overdraft facility of INR 1.71 crores and the Company has issued bonus shares also during the year, as a result of which the net worth of the company has increased.
Reasons for variance above 25%:
The company floated an Initial Public Offer in the previous financial year for which the Company incurred an expense of INR 91.27 lakhs. That expense in not incurred in the current year, as a result of which there is an increase in the profits of the company.
d. Return on Equity Ratio = Net profit after tax divided by Equity
Reasons for variance above 25%:
The company floated an Initial Public Offer in the previous financial year for which the Company incurred an expense of INR 91.27 lakhs. That expense in not incurred in the current year, as a result of which there is an increase in the profits of the company. Further, the company has issued bonus shares due to which the equity has increased.
!. Inventory turnover ratio is not applicable since there is no inventory
Reasons for variance above 25%:
The company floated an Initial Public Offer in the previous financial year for which the Company incurred an expense of INR 91.27 lakhs. That expense in not incurred in the current year, as a result of which there is an increase in the profits of the company.
k. Return on Investment = Income from investment divided by the closing balance of the investment - Not Applicable
12.13. There is no scheme of Arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013. Therefore, the disclosures under this clause are not applicable to the Company.
12.14. The Company has not raised funds by way issuing shares during the Initial Public Offering at a premium.
12.15. The Company has not received any funding from any foreign person, entity or parties with the understanding (whether recorded in writing or otherwise) that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party. Hence the disclosures under this clause are not applicable.
12.16. There are no transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961. Hence, the disclosures required under this clause are not applicable to the Company.
12.17. The Company is not covered under section 135 of the Companies Act, 2013 with relation to Corporate Social Responsibility. Hence, the relevant disclosures required under the Companies Act 2013 are not applicable to the Company.
12.18. The Company has not traded or invested in crypto currency or virtual currencies during the financial year. Hence the disclosures required under the clause are not applicable to the Company.
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