• Provisions and Contingent Liabilities
A provision Is recognized when the Company has a present obligation as a result of past events, and it is
probable that an outflow of resources will be required to settle the obligation in respect of which a reliable
estimate can be made. If the effect of the time value of money is material, provisions are discounted using an
appropriate discount rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognized as a finance cost
Contingent liabilities are disclosed in the Notes to the Standalone Financial Statements, Contingent liabilities
are disclosed for:
I) possible obligations which will be confirmed only by future events not wholly within the control of the
Company, or
ill present obligations arising from past events where It Is not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be
made
• Borrowing costs
Borrowing costs are interest, and other costs that the Company incurs in connection with the borrowing of funds
and is measured concerning the effective interest rate (EIB) applicable to the respective borrowing. Borrowing costs
Include interest costs measured at EIR and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the Interest cost.
Borrowing costs, allocated to qualifying assets, about the period from commencement of activities relating to
constructlon/development of the qualifying asset up to the date of capitalization of such asset are added to the
cost of the assets. Capitalization of borrowing costs is suspended and charged to the Statement of Profit and loss
during extended periods when active development activity on the qualifying assets Is interrupted, All other
borrowing costs are recognized as an expense In the period which they are incurred.
Ý Earnings per share
Basic earnings per share are computed by dividing the profit after tax by the weighted average number of equity
shares outstanding during the year The weighted average number of equity shares outstanding during the year is
adjusted for the events for bonus issue, bonus element in a rights issue to existing shareholders, share split and
Diluted earnings per share is computed by dividing the profit/(loss) after tax as adjusted for dividend, interest anti
other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares,
by the weighted average number of equity shares considered for denying basic earnings per share and the weighted
average number of equity shares which coufd have been issued on conversion of all dilutive potential equity shares
• Insurance claims:
Insurance claims are accounted for by claims admitted/expected to be admitted and to the extent that the amount
recoveiable can be measured reliably and it is reasonable to expect the ultimate collection
• Goods and Services tax input credit
Goods and Services tax input credit is accounted for in the books in the period In which the underlying service
received is accounted and when there is reasonable certainty in availing/ utilizing the credits
• Segment reporting:
The Company operates in one reportable business segment, i.e. "Trading in Solar Panels" Hence as per Ind AS 108,
disc losers of the segment Is not applicable to it.
• Taxes on Income
Provision for current muime taxes is made on taxable income at the rate applicable to the relevant assessment
year. Deterred taxes are recognized for future tax consequences attributable to timings difference between the
financial statements, determination of income and their recognition for tax purpose. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized for tax purposes. The effect on deferred tax assets and
liabilities ot a change in tax rates is retogni/ed in Profit and Loss Account usmR the tax rates and tax laws that have
been enacted or substantively enacted by balance sheet date.
Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty of
realization of such assets Considering tins, the company has applied for provision for deferred tax
25. SIGNIFICANT ACCOUNTING ASSUMPTIONS
The preparations of the linantial statements in conformity witn Ind AS requires management to make judgments,
estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities, and
accompanying disclosures Including disclosures of contingent liabilities. Uncertainty about these assumptions may result
m an outcome that requires a material adjustment to the carrying amount of assets or liabilities affected m a future
period The estimates and associated assumptions are based on historical experiences and various other factors that
are believed to be reasonable under the circumstances existing when the financial statements were prepared The
estimates and assumptions are reviewed on the ongoing basis. The revision to accounting estimates Is recognized in the
year in which the estimates ore revised and in any future affected.
A) ESTIMATES AND ASSUMPTION
The key assumptions that concerning the future and other key sources of estimation on reporting date, which
may cause a material adjustment to the carrying amount of assets and liabilities within the next hnanciol year,
are listed below, the company bnsed Its estimates and assumptions on parameters available when financial
statements are made Fxlstlng circumstances and assumptions about future circumstances may change due to
market change or circumstances arising beyond the control of the company
(I) Useful lives of property, plont and Equipment
The company reviews the useful life of its property, plant and equipment at the end of each reporting period
I'it,) Defined Benefit Plans
The cost of defined benefit gratuity plan and other post employment and the present value of the gratuity
obligations are determined using actuarial valuations. An actuary makes assumptions which may differ from
the actual developments in the future These include the determination of discount rate, future salary increase,
mortality rate. Due to the complexity of the valuations, a defined benefit obligation is highly sensitive changes
in jtmv. assumptions All assumptions are reviewed at enrh reporting date.
The parameter most subject to change is The discount rat* In determining the appropriate discount rate, the
management considers the interest rates of government bonds
The mortality ra(p is based on publicly available mortality tahies of India. Future salary and gratuity increase are
based on expected future inflation rates In India.
Details of Gratuity valuations are given in Note 17.
liii) Provision for inventories
Provision is made m the financial statements for slow and non moving inventories based on estimate regarding
their usability.
fn/J Impairment of Trode Receivables
To measure lifetime expected credit loss allowances ot trade receivables, the company has used practical
^ peimilted under Ind AS 109. The expected credit loss allowance is made on a provision matrix
,ed on experience and adjusted for forward looking information
29. There is no contingent liability outstanding on 31 March 2024 and 31 March 2073.
30. Financial risk management:
The Company has exposure to the following risks ansing from financial instruments: •
• Credit risk;
• liquidity risk;
• Market risk
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 Risk Management Committee, which is responsible
for developing and monitoring the Company's risk management policies. The committee reports to the board of
directors on its activities.
The Company's risk management policies arp established to identify and analyses the risks fared by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits Risk management policies and
systems are reviewed periodically to reflect changes in market conditions and the Company's activities. The Company,
B^Jhrough its training, standards and procedures, aims to maintain a disciplined and constructive control environment In
Wch all employees understand their roles and obligations
'nwVLdit committee oversees how management monitors compliance with the Company's risk management policies
^^^rfitfV.'cedures and reviews the adequacy of rhe risk management framework about the risks faced by the Company
#7/3 JJdlt 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 the audit committee,
a) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument Tads to
meet its contractual obligations, and arises principally from the Company’s receivables from customers and Investment
securities Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal couise of business. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments Trade receivables The Company's exposure to credit risk is influenced
mainly by the individual characteristics of each customer The demographics of the customer, including the dpfault risk
of the industry and country in which the customer operates, also influences credit risk assessment. Credit risk is
managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business
Expected credit loss assessment The Company allocates each exposure to a credit risk gr jde based on a variety ot data
that is determined to be predictive of the risk of loss (p.g. timeliness of payments, available press information etc ) and
applying experienced credit judgment.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses Historical trends of impairment of trade receivables do not reflect any significant
credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone anv
substantial change, the Company expects the historical trend of minimal credit losses to continue
Cash and cash equivalents
As at the year end, the Company held cash and cash equivalents of Rs. 1,07,227 / (previous year Rs. 1,58,957/ )
The cash equivalents are held with banks
Other financial assets
Other financial assets are neither past due nor impaired,
b) 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 hy delivering cash or another financial asset. The Company's approach to managing liquidity is
to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company enjoys an overdraft limit from the bank.
The Company invests its surplus funds In bank fixed deposit which carry no/low mark to market risks. The Company
monitors funding options available In the debt and capital markets to maintaining financial flexibility
Exposure to liquidity risk
The following aie the remaining contractual maturities of financial liabilities at the reporting date The amounts are
gross and undiscounted and include estimated interest payments and exclude the impact of netting agreements
The details of contractual maturities of significant liabilities as of 31 March 2024 follow.
Amount (Rs.)
c) Market Risk
Market risk is the nsk that changes in market price* - such as foreign exchange rates, interest rates and equity prices -
will affect the Company's income or the value of its holdings of financial Instruments Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. We
are exposed to market risk primarily related to interest rate change However it does not ronstitute a significant risk
Hence, the sensitive analysis is not given
<i) Currency risk
The Company Is exposed to currency risk on account of its operations with other countries. The functional currency of
the Company is Indian Rupee The exchange rate between the Indian rupee and foreign currencies has changed
substantially in recent periods and may continue to fluctuate m the future However, the overall impact of foreign
currency risk on the financial statement is not significant.
f xposure to Currency risk Following Is thp currency profile of non-derivative financial assets and financial liabilities'
d) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. The fair value interest rate risk
Is the risk of changes .n fair values of fixed interest bearing financial assets or borrowings because of fluctuations In the
Interest rates if such assets/borrowlngs are measured at fair value through profit or loss. The cash flow interest rate risk
^js the lisk that the future cash flows of floating interest-bearing borrowings will fluctuate because of fluctuations in the
^T^erest rates, Exposure to interest rate risk Company's interest rate risk arises from borrowings and finance lease
“SSljHBtions. The Interest rate profile of the Company's interest bearing borrowings is as follows
The risk Estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as
applicable to the borrowings summarized above This calculation also assumes that the change occurs at the balance
sheet date and has been calculated based on risk exposures outstanding as at that date The period end balances are
not necessarily representative of the average debt outstanding during the period.
|e) Commodity rate risk
The Company’s operating activities involve the provision of services. Hence, it is not exposed to the commodity risk.
31. CAPITAL MANAGEMENT
For the Company's capital management, capital includes issued capital and all other equity capital and all other equity
reserves attributable to the equity holders of the company. The primary objective of the capital policy of the company
to safeguard the Company's ability to remain a going concern and maximize the shareholder value
The Company manages its capital structure and makes adjustments in the light of changes in economic conditions,
annual operating plans and long term and other strategic investment plans To maintain or adjust the capital structure,
the Company may adjust the amount of dividend paid to the shareholders, return capital to shareholders or issue new
shares. The current capital structure is through equity with no financing through borrowings. The company is not subject
to any externally imposed capital requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended on 31 March
2024 and .31 March 2023.
32. There are no immovable properties whose title deeds are not held in the name of company.
33. The Company has not revalued it’s revalued its Property, Plant and Equipment during the year.
34 No fresh Loans and Advances 3re granted to Directors, ICMPs, Promoters and related parties as denned under
Companies Act, 2013.
35. There is no capital in progress during the year.
*36. There is no intangible assets during the development.
37. There are no proceedings being initiated or pending against the Company for holding any Benami property under
the Benami Transactions IProhibition) Act, 1988 and rules made thereunder
38. The Company is not required to file quarterly returns or statementsofeurrent assets with banks nr financial
institutions.
39 The Company b not declared as willful defaulter by the Bank or financial Institutions or any other lender
40 The Company does not have any transactions with companies struck off under Section 248 of Companies Act, 2013
41 There is no registration or satisfaction of charge vet to be registered with Registrar of Companies.
42. The provisions of Section 2(87) read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable
to the company,
43. Ratio Analysis
40.1. Current Ratio
The cur rent ratio indicates a company's overall liquidity position. It is widely used by banks In making decisions
regarding die advancing of working capital credit to their diems. Both of these numbers can be found in a Company's
balance sheet.
Current Ratio = Total Current Assets/Total Current Liabilities
Current Ratio for FY 2023 24 is 15 84 times (PY 2022 23 - 1 19) times There is no significant change In the current ratio
during the year.
40.2. Debt Equity Ratio
Debt to equity ratio compares a Company's total debt to shareholders equity Both of Ihose numbers can he found in a
Company's balance sheet.
Debt fquliv Ratio - Total Debt* 100/Share Holder s Equity
Debt Equity Ratio lor TY 2023-24 is Nil (PY 2022-23 - Ni(| rn«re is no significant change in die ratio.
40.3 Debt Service Coverage Ratio
Debt 5ervice coverage ratio Is used to analyses the firm's ability to payoff current interest and instalments.
Debt Service Coverage Ratio * Far rungs available for Debt Service/Debt Service
Fanning for Debt Service - Net Profit after laves ♦ Non-cash operating expenses like depreciation and other
arnortirations Interest ♦ other adjustments like loss on sale of fixed assets etc
Debt service Interest & Lease Payments ♦ Principal Repayments. No repayments is considered for loan repayable on
demands.
"Net Profit alter tax means reported amount ol "Profit / (loss! lor the periodJ and n does not Include items of other
comprehensive income
The Debt Service Coverage Ratio for FY 2023 24 is Nil (PY2022-23 Nil) Ihcre is no significant change in the rado.
40 4 Return on Equity (ROE)
It measures the profitability of equity funds Invested In the Company The ratio reveals how profitability of the equity
holders' funds have been utilized by the Company. It also measures the percentage return generated to equity-holders,
The ratio Is computed as
•
ROE = Net Profit after Taxes-Preference Dividend (if any)* 100/ Average Shareholder's Equity
1 he Return on Equity lor FY 2023-24 is 0 1744 (PY 2072 23 0.20%|) The change in ratio is due to reduction .n loss and
Increase In profit,
40 S. Inventory Turnover Ratio
This ratio also known as stock lurnover ratio and it establishes the teladonshtp between the cost of goods sold during
the period oi sales during the period and average inventory field duung the period it measures the efficiency with
winch a Company utilises or manages its inventory.
Inventory Turnover Ratio * Sales/Avcrage Inventory
Average Inventory (Opening Inventory * Closing Inventory)//
Inventory Turnover Ratio lor FY 2023-24 is Nil times IPY 2022-23 - Nil times).
Ýw. Tt»eie is no significant change in the ratio
40 6. Trade receivable Turnover Ratio
r*SSSi4' I ®i.|P measures the efficiency at which the firm ts managing the receivables.
Net credit sales consist of gross cred't sales minus sales return
Trade receivables includes sundry debtors and bill's receivables Average trade debtors - (Opening Closing balance / 2
Trade Receivable Turnover Ratio is FY 2023-24 Is Nil in (PY 2022-23 - Nil) The Change is due to changed credit policy of
the company.
40 7 Trade Payables Turnover Ratio
It Indicates the number of times sundry creditors have been paid during a penoo. It Is calculated to judge the
requirements of cash for paying sundry creditors. It is calculated by dividing the net credit purchases by average
creditors
Trade Payables Turnover Ratio = Net Credit Purchase s/Average Trade Payables
Net credit purchases consist of gross credit purchases minus purchase return
Average trade Payables* (Opening * Closing balance / 2
Trade Payable Turnover Ratio is FY 2023-24 Nil limes (PY 2022 23 - 66.61 times). The Change it, due to changed credit
policy of the company.
40.R. Net Capital Turnover Ratio
It Indicates a company’s effectiveness In using its working capital The working capital turnover ratio Is calculated as
follows Net Sales divided by the average amount of working capital during the same period
Net Capital Turnover Ratio - Net Sales/ Working capital
Net Sales shall be calculated as total sales minus sales returns Working capital shall be calculated as current assets
minus current liabilities.
Net Capital Turnover Ratio FY 2023-24 2B 68 times (PY 2022 23 120.22 times). The change is due to Increased
turnover,
40 9 Net Profit Ratio
It measures relationship between Net profit and Sales of the business.
Net profit Ratio * Net proflt/Sales
Net profit shall be after tax.
Net sales shall be calculated as total sales minus sales returns.
Net profit lor FY 2023 24 Is 0.0020% (PY 2022 23 0.0039%)). There Is no significant change In the ratio during the year
40.10. Return on Capital Employed
Return on c apital employed Indicates the ability of a company's management to generate returns for both the debt
holders and the equity holders Higher the ratio, more efficiently Is the capital being employed by the company to
generate returns.
Return on Capital Employed * Earning Before Interest and Taxes * 100/Capital Employed
( apital Employed - Tangible Net worth* Total Debt ♦ Differed Tax Liability
The return on Capital Employed for FY 2023 24 is 0 17% (PY 2022-73 - 0.20%). The change is due to increase In the
profit
40.11. Return on Investments
Return on investment (ROt) is a financial ratio used to calculate the benefit an investor will receive in relation to their
investment cost. The higher the ratio, the greater the benefit earned.
ROI = Cash Profit *lOO/Total Investments
Cash Profit Net Profit after taxes Non-cash operating expenses like deoreLi^Uun and other amortisations * other
adjustments like loss on sale of Fixed assets etc.
Total Investments - Average Fixed Assets »Closing Balance of Working Capital Balance
the Average Fixed Assets is calculated as average of opening Fixed Assets and closing Fixed Assets. The value of fixed
assets has been taken as per books net of depreciation.
The Return on Investments for FY 2023 24 Is S.79YC (PV 2022-23 4S.46tt) The change is due to Increase in the profit
41. The Board has approved the Scheme of amalgamation during the year. The scheme is pending for approval with BSE
limited The same will be placed before shareholders for approvals, once the same has been approved by the SEBI and
Stock Exchange. The necessary entries will be made iri the books of accounts when the competent authority will approve
the scheme
42. The company has not advanced or loaned or invested funds (either burrowed funds or share premium or any other
sourtes or kind of funds) to any other person(s) or entity(ics). Including foreign entities (Intermediaries) with the
understanding (whether recorded In writing nr otherwise) that the Intermediary shall directly or indirectly lend or invest
In other persons or entities identified in any manner whatsoever by or on behalf ot the company (Ultimate Beneficiaries)
or (ji) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
43. The company has not received any fund from any person(s) or entity(les), including foreign entities (Funding Party) with
the understanding (whether recorded In writing or otherwise) that the company shall (I) directly or Indirectly lend or
invest in other persons or entitles identified In any manner whatsoever by or on behalf ot the Funding Party (Ultimate
Beneficiaries) or (li| provide any guarantee, security or the like on behalf of the i lltimate Beneficiaries
46. There Is no income which has not been recorded In the bonks of accounts has been surrendered or disclosed as Income
during the year under the tax assessments under Income tax Art, 1%1
47 The r.om|iany has not traded or invested In virtual currency or crypto currencies during the year
For, Krutesh Patel & Associates FOR AND ON BEHALF OF THE BOARD OF DIRECTOR
CharteKddAccmmtants vo
j/vY.
KriitesJ^atel (Omprakash Jain) (Ravindra Jain)
JfmrXner If i^1:1003851 Managing Director Director
M. No. 140047 lUgl I MQ(*7 J ** If DIN; 0017136S EMN: 00412684
Firm Reg No. 1008b5w\\*\' ’ J^JJ
Place ; Ahmedabad M** : Ahmedabad f’U/? ’. ^vk
•Date : 16lh May 2024 Oate : 16,h May 2024 |:Nl{Af*(c,^(4f);fT'|j
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