DIRECTORS’ REPORT Dear Shareholders,
Your Directors have pleasure in presenting the 1st Annual Report of Surya Roshni LED Lighting
Projects Limited (“Company”) , together with the Audited Accounts for the first financial year ended 31st March, 2020, comprised of the period 21st January, 2019 (date of incorporation)
to 31st March, 2020.
The Company is a wholly-owned subsidiary of Surya Roshni Limited (SRL), which was incorporated as Special Purpose Vehicle (SPV) in terms of LOA awarded to SRL by Directorate of Municipal Administration, Orissa (DMA) for execution of project of designing, implementing, operating, maintaining the Greenfield Pubic Street Lighting System along with other infrastructure including CCMS and automation.
1. FINANCIAL SUMMARY AND HIGHLIGHTS
The financial statements have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
The company’s financial performances for the year ended 31st March, 2020:
(Amount in Lakh Rs.)
Details 21st January, 2019 to
31st March, 2020
Revenue from operations 804.58
Other Income -
Profit/(Loss) before Depreciation, finance Cost, Exceptional items and tax Expense
84.67
Less: Depreciation/ Amortization/ Impairment -
Profit/(Loss) before finance Cost, Exceptional items and tax Expense
84.67
Less: Finance Costs 2.89
Profit /loss before Exceptional items and Tax Expense 81.78
Add/(less): Exceptional items -
Profit /loss before Tax Expense 81.78
Less: Tax Expense (Current & Deferred) 20.50
Profit /loss for the year (1) 61.28
Total Comprehensive Income/loss (2) -
Total (1+2) 61.28
Balance of profit /loss for earlier years -
Less: Transfer to Reserves -
Less: Dividend paid on Shares -
Balance carried forward 61.28
Earnings per Share Basic in Rs. 3.16
2. STATE OF COMPANY AFFAIRS
The Holding Company (SRL) has been awarded project by Directorate of Municipal Administration, Orissa (DMA) for designing, implementing, operating and maintaining the Greenfield Pubic Street Lighting System along with other infrastructure including CCMS and automation (Project) and the Project is required to be executed by the Company as SPV. Further SRL has executed Supply Installation Operation and Maintenance (SIOM) Agreement on 29th December 2018 with the Directorate of Municipal Administration, Orissa (DMA) and 21 Urban Local Bodies. As per terms of SIOM, the holding company executed shareholder agreement with the Company and also Novation Agreement with the DMA and the Company.
During the year, revenue from operations is Rs. 804.58 lakhs on execution of part of the Project.
3. CHANGE IN THE NATURE OF BUSINESS, IF ANY:
There was no change in the nature of business of the Company during the year under review.
4. DIVIDEND
Due to first financial year and operations are just started, the company does not propose any dividend for the first financial year ended 31st March, 2020.
5. TRANSFER TO RESERVES IN TERMS OF SECTION 134 (3) (J) OF THE COMPANIES ACT, 2013
During the year under review, no amount has been transferred to reserves.
6. MEETINGS OF BOARD OF DIRECTORS
The Board meets at regular intervals to discuss the business plans and strategies. First Board Meeting of the Company was held on 24th January, 2019 and subsequent six
Board meetings were held on 4th February, 2019, 21st May, 2019, 1st August, 2019, 28th
August, 2019, 14th November, 2019 and 12th February, 2020 during the first financial
year of the Company. The notice of Board meeting is given well in advance to all the Directors. The maximum interval between any two meetings was well within the maximum allowed gap of 120 days.
The names of members of the Board, their attendance at the Board Meetings are as under: -
Name of Directors along with DIN Number of Meetings attended/ Total Meetings held during the F.Y. 2019-20 -
KAUSTUBH NARSINH KARMARKAR (DIN: 00288642)
04/06
BHARAT BHUSHAN SINGAL (DIN: 08337381) 06/06
SUSHIL SINGHAL (DIN: 00006279) 06/06
7. CHANGES IN DIRECTORS AND KEY MANAGERIAL PERSONNEL DURING THE YEAR
The Composition of Board of Directors comprises of 3 Directors as enumerated below: Shri Kaustubh N Karmarkar
Shri Bharat Bhushan Singal Shri Sushil Singhal
Inductions
During the year under review, following persons were appointed as Directors of the company:
Name of the Directors
DIN Designation Date of Appointment
Shri Kaustubh Narsinh Karmarkar 00288642 Director 21/01/2019 Shri Bharat Bhushan Singal 08337381 Director 21/01/2019 Shri Sushil Singhal 00006279 Director 21/01/2019
As per the provisions of the Companies Act, 2013 and in terms of Section 152 of the Companies Act 2013, your above named esteemed directors, who were named as the First Directors by the Board of Directors at their meeting held on 21st January, 2019
are regularized as the Directors of the Company, who are liable to retire by rotation in the Extra Ordinary General meeting held on 26th February, 2019.
As per the provisions of Section 152(6)(c) of the Companies Act, 2013 Mr. Kaustubh Narsinh Karmarkar (DIN:00288642), retires by rotation at the ensuing Annual General Meeting and being eligible, seeks appointment. The Board recommends his re-appointment.
During the period under review, the Company was not required to appoint any Key Managerial Personal as referred in Section 203 of the Companies Act, 2013.
8. DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM
The provisions of Section 177 of the Companies Act, 2013 read with rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2013 for the constitution of Audit Committee is not applicable to the Company, as the said rules are exempted for the wholly owned subsidiaries.
The provision of establishment of Vigil mechanism are also not applicable to the Company.
9. MATERIAL CHANGES AND COMMITMENTS OCCURRED BETWEEN THE DATE OF BALANCE SHEET AND THE DATE OF BOARD’S REPORT
There have been no material changes and commitments which affect the financial position of the Company which have occurred between the end of the financial year to which this financial statement relates and the date of this report.
GLOBAL PANDEMIC – COVID-19
World Health Organisation (WHO) declared outbreak of Coronavirus Disease (COVID-19) a global pandemic on March 11, 2020. Consequent to this, Government of India declared lockdown on 24-03-2020 which had an impact on the business activities of the Company. On account of this, the Company has prepared cash flow projections and also, assessed the recoverability of receivables and contract assets using the various internal and external information up to the date of approval of these financial statements. On the basis of evaluation and current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets and does not anticipate any impairment to these financial and non-financial assets. The Company will continue to closely monitor any material changes to future economic conditions.
There are no other significant subsequent event items which require an adjustment in financial statements
10. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY JUDICIAL BODIES/REGULATORS /COURTS/ TRIBUNALS/ STATUTORY AND QUASI-JUDICIAL BODIES
During the year under review, there were no significant and material orders passed by the regulators or courts or Tribunals, which may impact the going concern status of the Company and its operations in future.
11. SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES AND THEIR PERFORMANCE
The company do not have any subsidiaries, joint venture or associates except the Holding Company namely Surya Roshni Limited, which holds 100% share capital of the Company during the year under review. Hence, NIL disclosure is made in AOC-1 and annexed as ANNEXURE- A to the report.
12. DEPOSITS
The Company has not accepted any deposit falling within the purview of Section 73 of the Companies Act, 2013 read with rules made thereunder.
13. STATUTORY AUDITORS
M/s. Ashok Kumar Goyal & Co, Chartered Accountants, Firm Registration No. 02777N was appointed as First Auditor of the Company in the first board meeting of the company held on 24th January, 2019 to hold the office of the Statutory Auditors of the
Company from the conclusion of first Board Meeting until the conclusion of the ensuing Annual General Meeting (“AGM”) and to conduct the Statutory Audit for the period ended 31st March, 2020.
Pursuant to the provisions of Section 139 of the Companies Act, 2013, M/s. Ashok Kumar Goyal & Co, Chartered Accountants, (Firm Registration No. 02777N) are recommended by the Board to be appointed as the Statutory Auditors of the Company to hold office for a term of five (5) years from the conclusion of 1st AGM General
Meeting held till the conclusion of 6th consecutive AGM of the Company to be held in
the year 2025.
The Company has received a certificate from them to the effect that their re-appointment, if made, would be within the limits prescribed under section 141(3) of the Companies Act, 2013.
14.SHARE CAPITAL A. Authorized Capital:
The Company was incorporated with initial Authorised capital of Rs.4,00,00,000 (Rupees Four Crore ) divided into 40,00,000 (Forty lakh) equity shares of Rs. 10/- each. Thereafter, during the financial year Company had altered authorised share capital to Rs. 5,00,00,000 (Rupees Five Crore) divided into 50,00,000 (Fifty lakh) equity shares of Rs. 10/- each in the Extra Ordinary General Meeting held on 13th June, 2019.
B. Issued, Subscribed & Paid – up Capital:
The Company was incorporated with initial capital of Rs. 5,00,000 (Rupees Five Lakh) divided into 50,000 (Fifty Thousand) equity shares. Thereafter, during the financial year, Company has issued Share Capital of Rs. 3,80,00,000 (Rupees Three Crore Eighty Lakh) comprising 38,00,000 (Thirty Eight Lakh) equity shares of Rs. 10/- (Rupees Ten only ) each fully paid-up to its Holding Company.
The Issued and Paid-up Capital of the Company as on March 31, 2020 stood at Rs. 3,85,00,000 (Rupees Three Crore Eight Five Lakh only) divided into 38,50,000 (Thirty Eight Lakh Fifty Thousand) equity shares of Rs. 10 (Rupees Ten only) each.
15.COMPLIANCE WITH SECRETARIAL STANDARDS
The Company complies with all applicable mandatory Secretarial Standards issued by Institute of Company Secretaries of India.
16.EXPLANATIONS ON EVERY QUALIFICATION BY AUDITOR IN HIS REPORT
The Auditor’s report is self-explanatory. The Auditors in their Independent Report on Financial Statements have not made any qualification, reservation or adverse remark or disclaimer. So, no comments is required from your directors pursuant to Section 134(3)(f) of the Companies Act, 2013.
17.SECRETARIAL AUDITOR REPORT
The Board has Voluntarily Appointed M/s Anjali Yadav & Associates, Company Secretaries, to undertake the Secretarial Audit of the Company as per the provisions of the Companies Act, 2013 for the Financial Year 2019-2020. The Secretarial Audit Report is under way and shall be presented before the board as and when issued by the Auditors.
18.EXTRACT OF ANNUAL REPORT
As per the provisions of section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, an extract of annual return in MGT 9 has been annexed with this report and marked as Annexure- B.
19.CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, AND FOREIGN EXCHANGE EARNINGS AND OUTGO
A. Conservation of Energy: Energy conservation dictates how efficiently a
company can conduct its operations and the company has recognized the importance of energy conservation in decreasing the deleterious effects of global warming and climate change. Being the first year the Company has initiates various energy efficient steps that strengthen the Company’s commitment towards becoming an environment friendly organization.
a. Energy conservation measures taken: Nil
b. Steps taken by the Company for utilizing alternate source of energy: Nil c. The Capital Investment on energy conservation equipment’s: Nil
B. Technology Absorption: Nil
1. Research and Development (R&D)
a. Specific areas in which R&D carried out by the company: Nil b. Benefits derived as a result of above R&D: Nil.
c. Future Plan of action: Nil d. Expenditure on R&D: Nil
2. Technology absorption, adaptation & innovation:
a) Efforts, in brief, made towards technology absorption, adaptation & innovation: Nil b) Benefits derived as a result of the above efforts, e.g. product improvement, cost
reduction, product development, import substitution etc.: Nil
c) In case of imported technology (imported during the last 3 years reckoned from the beginning of the financial year): Nil
C. Foreign Exchange earnings and outgo: The Company has no foreign exchange
earnings and no outgo transactions of during the current financial year.
a) Activities relating to exports, initiatives taken to increase export, development of new markets for products and services and export plans: Nil
b) Total foreign exchange used and earned (Rs. in lakh): Nil
20. LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
As per the provisions of section 186(4) read with Rule 11 of the Companies (Meetings of Board and its Powers) Rules, 2014, during the year under review, there were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013.
21. CONTRACTS OR ARRAGNEMENTS WITH RELATED PARTIES
Particulars of contracts or arrangements or transactions at arm’s length basis with related parties referred to in Section 188(1) of the Act in Form AOC- 2 is annexed to the report and marked as Annexure-C.
All contracts / arrangements / transactions entered by the Company during the first financial year with related parties were in the ordinary course of business and on arm’s length basis.
Your Directors draw attention of the members to Note No. 28 to the financial statement which sets out related party disclosure.
22. MANAGERIAL REMUNERATION
No Managerial Remuneration has been paid to the directors of the company as per the provision of Companies Act, 2013 during the reported period.
23. RISK MANAGEMENT POLICY
In line with the provisions of Section 134(3)(n) of the Companies Act, 2013 , the company have developed a Risk Management Policy for ensuring sustainable business expansion with stability and to promote an upbeat approach towards risk mitigation and minimization. The main objectives of the Risk Management Policy are:
To ensure that all the current and future material risk exposures of the Company are identified, assessed, quantified, appropriately mitigated, minimized and managed.;
To protect brand value through strategic control and operational policies; To establish a framework for the Company’s risk management process and to
ensure company- wide implementation;
To ensure systematic and uniform assessment of risks related with different functions of the Company;
To enable compliance with appropriate provisions / regulations, wherever applicable, through the adoption of best practices.
The Board assess several types of risks which the company is exposed to from time to time which includes the following:. Some of the risk as identified by the Board and their mitigation measures are as follows:
a. Technology Risk: The ever-evolving technology with continuous updation may
lead to product obsolescence, if not addressed regularly.
b. Regulatory Risk: Non-compliance to stringent regulatory and environment
norms may result in liabilities and loss of brand reputation.
c. Human Resources Risk: The Company needs adequate talent to run the
business. There is a risk labour unrest and maintaining good industrial relations.
Adequate mitigation plans are prepared in respect of above stated risk and no risks threatening the existence of the organisation have been identified.
24. MAINTENANCE OF COST RECORDS
As the provision of Section 148(1) of the Act read with Companies (Accounts) Rules, 2014 as amended from time to time are not applicable being the first financial year of the Company.
25. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS
The Company has in place adequate system of internal financial control for orderly and efficient conduct of its business including adherence to the Company policies, the safeguarding of its assets, the prevention and detection of frauds and error, the accuracy and completeness of the accounting records and the timely preparation of reliable financial disclosures.
26. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Since the Company do not fall under any criteria specified in sub-section (1) of section 135 of the Companies Act, 2013, it is not required to constitute a Corporate Social Responsibility (“CSR”) Committee.
27. DIRECTOR’S RESPONSIBILITY STATEMENT
Pursuant to Section 134(3) (c) of the Companies Act, 2013, your directors confirm that:
a) In the preparation of the annual accounts for the financial year ended 31st
March, 2020, the applicable Accounting Standards have been followed and there were no material departures from the Accounting Standards.
b) The directors have selected such accounting policies and applied them consistently and make judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the said financial year and of the profit and loss of the Company for the said financial year;
c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) The directors had prepared the annual accounts for the year ended 31st March,
2020 on a ‘going concern’ basis;
e) The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
28. FRAUD
During the year under review, there were no frauds reported by the Statutory Auditors to the Board under section 143(12) of the Companies Act, 2013.
The Company also did not note or encountered any incidence or indication for existence of fraudulent activities in Company during the first financial year ended 31st
March, 2020.
29. PARTICULARS OF EMPLOYEES - DISCLOSURE PURSUANT TO SECTION 197 AND RULE 5 OF COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 OF COMPANIES ACT, 2013
There was no employee who was drawing salary more than the limits prescribed Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Hence no disclosure is required.
30. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (“POSH Act”) and Rules made thereunder, the Company has formed an Internal Committee to address complaints pertaining to sexual harassment in the workplace. The Company policy mandates prevention of sexual harassment and to ensure a free and fair enquiry process with clear timelines for resolution.
Your Directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
31. ACKNOWLEDGEMENTS
Your company takes this opportunity to thank all the Shareholders and investors of the company for their continued support. Your directors wish to place on record their appreciation for the co-operation and support received from employees, staff and other people associated with the company and look forward for their continued support.
FOR AND ON BEHALF OF THE BOARD
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
KAUSTUBH NARSINH KARMARKAR BHARAT BHUSHAN SINGAL
DIRECTOR DIRECTOR
DIN: 00288642 DIN: 08337381
Place: New Delhi
Form AOC-1 (ANNEXURE-A)
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amounts in lakh Rs.)
Sl. No. Particulars Details
1. Name of the subsidiary NIL
2. The date since when subsidiary was acquired NIL 3. Reporting period for the subsidiary concerned, if
different from the holding company’s reporting period
NIL
4. Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries
NIL
5. Share capital NIL
6. Reserves & surplus NIL
7. Total assets NIL
8. Total Liabilities NIL
9. Investments NIL
10. Turnover NIL
11. Profit before taxation NIL
12. Provision for taxation NIL
13. Profit after taxation NIL
14. Proposed Dividend NIL
15. Extent of shareholding (%) NIL
Notes: The following information shall be furnished at the end of the statement:
1. Names of subsidiaries which are yet to commence operations - NIL
Part “B”: Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Name of associates/Joint Ventures Name 1 Name2
1. Latest audited Balance Sheet Date NIL NIL
2. Date on which the Associate/Joint Venture was associates or acquired
NIL NIL
3. Shares of Associate/Joint Ventures held by the company on the year end
NIL NIL
No.
Amount of Investment in Associates/Joint Venture
NIL NIL
Extend of Holding % NIL NIL
4. Description of how there is significant influence
NIL NIL
5. Reason why the associate/joint venture is not consolidated
NIL NIL
6. Net worth attributable to shareholding as per latest audited Balance Sheet
NIL NIL
7. Profit/Loss for the year NIL NIL
i. Considered in Consolidation NIL NIL
ii. Not Considered in Consolidation NIL NIL
1. Names of associates or joint ventures which are yet to commence operations - NIL
2. Names of associates or joint ventures which have been liquidated or sold during the year- NIL
FOR AND ON BEHALF OF THE BOARD
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
KAUSTUBH NARSINH KARMARKAR BHARAT BHUSHAN SINGAL
DIRECTOR DIRECTOR
DIN: 00288642 DIN: 08337381
Place: New Delhi
Form No. MGT – 9(ANNEXURE-B) Extract of Annual Return
As on financial year ended March 31, 2020
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rules 12(1) of the Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS
1. CIN U31200DL2019PLC344720
2. Registration Date 21/01/2019
3. Name of the Company Surya Roshni LED Lighting Projects Limited
4. Category/ Sub Category of the Company
Non- Government Company
5. Address of the Registered office and contact details
Flat No. 404, 4th Floor, 5 Rajendra Place,
Padma Tower-1, Near Metro Station, Delhi - 110008
Ph.: 011-47108000 Email : bbsingal@surya.in
6. Whether listed Company Unlisted
7. Name address and contact Details of Registrar and transferor
In House;
Flat No. 404, 4th Floor, 5 Rajendra Place,
Padma Tower-1, Near Metro Station, Delhi - 110008
Ph.: 011-47108000
II. PRINCIPLE BUSINESS ACTIVITY OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated: -
S. No Name and description of the main products/ services
NIC Code of the Product / Service
% of total turnover of the Company
III. PARTICULARS OF THE HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES S. No Name and address of the Company CIN Holding/Su bsidiary /Associate % of Share Held Applicable Section 01. Surya Roshni Limited, Regd. Office: Prakash Nagar, Sankhol, Bahadurgarh – 124507 (Haryana) L31501HR1973PLC007543 Holding Company 100% 2(46)
IV. SHARE HOLDING PATTERN (Equity Share Capital Break-up as percentage of total Equity)
i. Category wise Share Holding :
SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) Category of
Shareholders
No. of Shares Held at the beginning of the financial Year i.e. from
21stJanuary, 2019
No. of Share held at the end of the Year i.e. as at 31st March, 2020 % Change during the Year
DEMAT Physical Total % of total Shares
DEMAT Physical Total % of total Shares A. Promoter (1) Indian a) Individual/HUF - 60 60 0.12 - - - - - b) Central Government - - - - - - - - - c) State Government - - - - - - - - - d) Body Corporate - 49,940 49,940 99.88 - 3850,000 38,50,000 100.00 - e) Banks / FI - - - - - - - - - f) Any other - - - - - - - - -
Sub Total (A) (1)
: - - 50,000 50,000 100.00 - 38,50,000 38,50,000 100.00 - (2) Foreign - - - a) NRIs Individuals - - - - - - - - - b) Other Individuals - - - - - - - - -
c) Body corporates - - - - - - - - - d) Bank/ FI - - - - - - - - - e) Any other - - - - - - - - -
Sub Total (A) (2): - - - - - - - - - - Total ShareHolding of Promoter (A) = (A)(1)+(A)(2) - 50,000 50,000 100.00 - 38,50,000 38,50,000 100.00 - B. Public Share Holding - - - 1. Institutions - - - - - a) Mutual Funds - - - - - - - - - b) Banks/FI - - - - - - - - - c) Central Government - - - - - - - - - d) State Government - - - - - - - - - e) Venture Capital Funds - - - - - - - - - f) Insurance Companies - - - - - - g) FIIs - - - - - - h) Foreign Venture Capital Funds - - - - - - i) Other (Specify) - - - - - - Sun Total (B)(1) - - - - - - - - - 2. Non Institutions - - - - - -
(a) Bodies Corp. - - - - - - -
(i) Indian - - - - (ii) Overseas - - - - - - (b) Individuals - - - - - - -
(i) Individual Shareholders holding nominal share capital uptoRs. 1 lakh - - - - - - - (ii) Individual Shareholders holding nominal share capital exceeds of Rs. 1 lakh - - - - - - - © Other (Specify) - - - - - - - Sub-Total (B) (2) - - - - - - - Total Public Shareholding (B)=(B)(1)+(B)(2) - - - - - - - C. Shares held by Custodian for GDRs & ADRs - - - - - - - Grand Total (A+B+C) - 50,000 50,000 100.00 - 38,50,000 38,50,000 100.00 -
Note: 38,49,940 Equity Shares held by the holding Company Surya Roshni Limited in its name and 60 Equity Shares held by holding company in the name of nominees.
(ii) Shareholding of Promoters S.
No
Shareholders Name
Shareholding at the beginning of the year
Shareholding at the end of the Year % Change in Sharehold ing during the Year No. of Shares % of total Shares of the Compa ny % of Shares Pleged / encumbered to total Shares No. of Shares % of total Shares of the Compa ny % of Shares Pleged / encumber ed to total Shares 1 Surya Roshni Ltd 50,000 100.00 - 38,50,000 100.00 - - Total 50,000 100.00 - 38,50,000 100.00 - -
Note: Out of the above 38,49,940 Equity Shares held by the holding Company Surya Roshni Limited in its name and 60 Equity Shares held by holding company in the name of nominees.
(iii) Change in Promoters' Shareholding (please specify, if there is no change) Sl. No . Name of the Shareholders Shareholding at the beginning of the year
Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g allotment / transfer/bonus/ sweat
equity etc.)
Cumulative Shareholding during the year (since incorporation to 31-03-2020) No. of Shares at the beginning (21-01-2019) and end of the year (31-03-2020) % of total shares of the compa ny Date Increase / Decrease in shareholdi ng Reason No. of Shares % of total shares of the compa ny 1 Surya Roshni Limited 50,000 100 21-Jan-2019 - Subscriber 50,000 100 28-Aug-2019 38,00,000 Allotment 38,50,000 98.70 3850,000 100.00 31-Mar-2020 3850,000 100.00
Note: Out of the above 38,49,940 Equity Shares held by the holding Company Surya Roshni Limited in its name and 60 Equity Shares held by holding company in the name of nominees.
(iv) Shareholding Pattern of Top 10 Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs) S l. N o .
Name of the top 10 shareholders
Shareholding at the beginning of the year
Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g allotment / transfer/bonus/ sweat equity etc.)
Cumulative Shareholding during the year (21-01-2019 to 31-03-2020) No. of Shares at the beginning (21-01-2019) and end of % of total shares of the Date Increase / Decrease in shareholding Reason No. of Shares % of total shares of the company
(v) Shareholding of Directors and Key Managerial Personnel: Sr. No . Name of the Directors and KMP Director Identificati on No. (DIN) Shareholding at the beginning of the year
Shareholding at the end of the year % change in shareh olding during the year No, of Shares % of total shares of the company No, of Shares % of total shares of the company Nil V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment Secured Loans excluding deposits Unsecured Loans Total Indebtedness (in Rs.)
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid iii) Interest accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
· Addition Nil
· Reduction Net Change
Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid iii) Interest accrued but not due
Total (i+ii+iii) the year (31-03-2020) compa ny Nil
VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. No.
Particulars of the Remuneration
1 Gross Salary
(a) Salary as per the provisions contained in section 17(1) of the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
(c)Profits in lieu of salary under section 17(3) Income Tax Act, 1961
2 Stock Option
3 Sweat Equity Nil
4 Commission
- as % of profit - others, specify 5 Others
Total
Ceiling as per the Act
B. Remuneration to other directors:
Sl. No.
Particulars of the Remuneration
1 Independent Directors
Fees for attending board / committee meetings
Commission Others
Total (1)
2 Other Non-Executive Directors Nil
Fees for attending board / committee meetings Commission Others Total (2) Total (B) = (1) + (2)
Total Managerial Remuneration Overall Ceiling as per the Act
C. Remuneration to Key Managerial Personnel other than MD/ Manager/WTD Sl.
No.
Particulars of Remuneration Key Managerial Personnel
1 Gross Salary
(a) Salary as per the provisions contained in section 17(1) of the Income Tax Act, 1961
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
(c)Profits in lieu of salary under section 17(3) Income Tax Act, 1961
Nil 2 Stock Option 3 Sweat Equity 4 Commission - as % of profit - others, specify 5 Others Total (C)
PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: There were no penalties,
punishment or compounding of offences during the year ended March 31, 2020.
FOR AND ON BEHALF OF THE BOARD
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
KAUSTUBH NARSINH KARMARKAR BHARAT BHUSHAN SINGAL
DIRECTOR DIRECTOR
DIN: 00288642 DIN: 08337381
Place: New Delhi
FORM NO. AOC -2 (Annexure –C)
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014
Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transaction under third proviso thereto.
1. Details of contracts or arrangements or transactions not at Arm’s length basis.
S. No. Particulars Details
a) Name (s) of the related party & nature of relationship NIL
b) Nature of contracts/arrangements/transaction NIL
c) Duration of the contracts/arrangements/transaction NIL
d) Salient terms of the contracts or arrangements or transaction including the value, if any
NIL
e) Justification for entering into such contracts or arrangements or transactions’
NIL
f) Date of approval by the Board NIL
g) Amount paid as advances, if any NIL
h) Date on which the special resolution was passed in General meeting as required under first proviso to section 188
NIL
2. Details of contracts or arrangements or transactions at Arm’s length basis.
S. No. Particulars Details
a) Name (s) of the related party & nature of relationship Surya Roshni Limited, Holding Company
b) Nature of contracts/arrangements/transaction Purchase of Goods and Others
c) Duration of the contracts/arrangements/transaction 21-01-2019 to 31-03-2020
d) Salient terms of the contracts or arrangements or transaction including the value, if any
Purchase of Poles and LED Lights, Rs. 801.10 lakh
e) Date of approval by the Board 4th February, 2019 &
21st May, 2019
f) Amount paid as advances, if any NIL
FOR AND ON BEHALF OF THE BOARD
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
KAUSTUBH NARSINH KARMARKAR BHARAT BHUSHAN SINGAL
DIRECTOR DIRECTOR
DIN: 00288642 DIN: 08337381
Place: New Delhi
(Rs. In Lakh)
Particulars Note No. As at
31st March, 2020
I ASSETS
1 Non-current assets
a Other financial assets 5 66.56
2 Current assets
a Inventories 6 504.02
b Financial assets
(i) Trade receivables 7 400.11 (ii) Cash and cash equivalents 8 0.75 c Other current assets 9 108.68
Total Assets 1,080.12
II EQUITY AND LIABILITIES Equity Share capital 10 385.00 Other equity 11 61.28 LIABILITIES 1 Non-current liabilities -2 Current liabilities a Financial Liabilities (i) Trade payables
A) Total outstanding dues of micro enterprises and small
enterprises; B) Total outstanding dues of creditors other than micro
enterprises and small enterprises; 611.06 (ii) Other financial liabilities 13 2.07 b Other current liabilities 14 0.21 c Current Tax Liabilities (net) 15 20.50
Total equity and liabilities 1,080.12 Accompanying notes referred to above form an integral part of the financial statements
As per our report of even date For and on behalf of the board
For Ashok Kumar Goyal & Co.
Chartered Accountants
KAUSTUBH NARSINH KARMARKAR
(Firm Registration No.ICAI: 02777N) DIRECTOR
DIN :-00288642
CA. Ashok Kumar BHARAT BHUSHAN SINGAL
Partner FCA DIRECTOR
Membership no. 17644 DIN:- 08337381
Place : New Delhi. Date : 25th June, 2020
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED CIN :-U31200DL2019PLC344720
BALANCE SHEET AS AT 31ST MARCH, 2020
(Rs. In Lakh)
Particulars Note No.
For the period 21st January, 2019 to 31st
March, 2020
I Revenue from operations 16 804.58
II Other Income
-III Total Revenue (I+II) 804.58 IV Expenses
Cost of materials consumed 17 666.02 Employee benefits expense 18 21.98
Finance costs 19 2.89
Other Expenses 20 31.91
Total expenses 722.80
V Profit Before Tax ( III-IV) 81.78 VI Tax expense
Current Tax 20.50
Deferred tax
-VII Profit for the period ( V - VI) 61.28 VIII Other comprehensive income
(i) Items that will not be reclassified to profit or loss -(ii) Income tax relating to items that will
not be reclassified to profit or loss
-Total other comprehensive income
-IX Total Comprehensive Income(VII+VIII) 61.28 Earnings per equity shares (face value of Rs.10/-each)
1) Basic (in ₹) 3.16
2) Diluted (in ₹) 3.16
Accompanying notes referred to above form an integral part of the financial statements As per our report of even date For and on behalf of the board For Ashok Kumar Goyal & Co.
Chartered Accountants KAUSTUBH NARSINH KARMARKAR
(Firm Registration No.ICAI: 02777N) DIRECTOR DIN :-00288642 CA. Ashok Kumar
Partner FCA
Membership no. 17644 BHARAT BHUSHAN SINGAL
DIRECTOR
Place : New Delhi. DIN:- 08337381
Date : 25th June, 2020
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED CIN :-U31200DL2019PLC344720
STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 21ST JANUARY, 2019 TO 31ST MARCH, 2020
22 21
Particulars For the period 21st January, 2019 to 31st March, 2020 A. Cash Flow From Operating Activities
a. Net operating profit before tax 81.78 Adjustment for :
Finance cost 2.89 b. Operating profit before Working Capital changes 84.67
Adjustment for :
(Increase) / Decrease in Trade receivables (400.11) (Increase) / Decrease in Other financial assets (66.56) (Increase) / Decrease in Other assets (108.68) (Increase)/Decrease in Inventories (504.02) Increase / (Decrease) in Trade payables/ provisions 611.06 Increase / (Decrease) in Other financial liabilities 2.07 Increase / (Decrease) in Other Liabilities 0.21 (466.03) c. Cash generated from Operations before tax (a+b) (381.36) d. Net Direct Taxes paid -Net cash flow from operating activities A = (c+d) (381.36) B. CASH FLOW FROM INVESTING ACTIVITIES
Increase/(Decrease) in Non current Asset -Net cash flow used in investing activities -Net cash from operating and investing activities (A+B) (381.36) C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Share Capital 385.00 Finance cost (2.89) Net cash used in financing activities 382.11 Net cash (used) in/from operating, investing and financing activities ((A+B)+C) 0.75 Net increase/(decrease) in Cash & Cash equivalent 0.75 Opening balance -Closing balance of Cash & Cash equivalent (refer note no.8 ) 0.75 As p As per our report of even date
For and on behalf of the board For Ashok Kumar Goyal & Co.
Chartered Accountants
(Firm Registration No.ICAI: 02777N)
KAUSTUBH NARSINH KARMARKAR
DIRECTOR DIN :-00288642
CA. Ashok Kumar Partner FCA
Membership no. 17644
BHARAT BHUSHAN SINGAL
Place : New Delhi DIRECTOR
Date : 25th June, 2020 DIN:- 08337381
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
Cash Flow Statement for the period 21st January, 2019 to 31st March, 2020
(Rs. In Lakh) CIN :-U31200DL2019PLC344720
A. Equity share capital (Rs. In Lakh)
No. of Shares Amount
-38,50,000
385.00
B. Other equity (Rs. In Lakh)
Retained earnings Other comprehensive income Total
Balance as at 21st January, 2019 ( Date of Incorporation) - -
-61.28
- 61.28 Total comprehensive income for the period 21st January, 2019 to 31st March, 2020 61.28 - 61.28
Balance as at 31st March, 2020 61.28 - 61.28
As per our report of even date For and on behalf of the board
For Ashok Kumar Goyal & Co.
Chartered Accountants KAUSTUBH NARSINH KARMARKAR
(Firm Registration No.ICAI: 02777N) DIRECTOR
DIN :-00288642
CA. Ashok Kumar BHARAT BHUSHAN SINGAL
Partner FCA DIRECTOR
Membership no. 17644 DIN:- 08337381
Place : New Delhi.
Date : 25th June, 2020
Profit for the period 21st January, 2019 to 31st March, 2020 Particulars
Balance at the end of the reporting period
SURYA ROSHNI LED LIGHTING PROJECTS LIMITED
Statement of changes in equity for the period 21st January, 2019 to 31st March, 2020
As at March 31, 2020 Particulars
CIN :-U31200DL2019PLC344720
NOTES TO FINANCIAL STATEMENTS
1 Corporate and general information
2 Basis of preparation of Financial Statements and Use of Estimates
2.1 a) b) c) 2.2 2.3
3 Significant accounting policies 3.1Basis of Measurement
Surya Roshni LED Lighting Projects Limited (‘’the Company’’) is domiciled and incorporated on 21st January, 2019 in India is a wholly-owned subsidiary of Surya Roshni Limited. The registered office of Company is situated at 404, 4th Floor, Padma Tower-I, 5 Rajendra Place, New Delhi -110008 India. The Corporate Identification Number (CIN) of the Company is U31200DL2019PLC344720. The Company is the business of sale of Lightings, LED and Conventional Lighting goods etc. The Company also provide extended warranties for its LED Street Lighting.
Basis of preparation of Financial Statements
These financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. The Ind AS are prescribed under Section 133 of the Companies Act, 2013.Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Statement of Compliance
The financial statements have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013.
Use of Estimates
The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgements and assumptions. These estimate, judgements and assumptions affect the application of accounting policies and the reported balances of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Estimates and under lying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.
Key sources of estimations of uncertainty at the date of the financial statements, which may cause a material adjustments to the carrying amount of assets and liabilities in the next financial years; are in respect of useful life of PPE, provision for warranties, recognition of claim receivables and estimations of contingent assets and liabilities.
These financial statements have been prepared under the historical cost principle except for certain financial assets and liabilities which have been measured at fair value:
The financial statements are presented in Rupees in lakh, which is the Company’s functional and presentation currency and all amounts are rounded to the nearest Crore and two decimals thereof, except as stated otherwise.
Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is classified as current when it satisfies any of the following criteria: it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle.
it is held primarily for the purpose of being traded;
• It is expected to be realised within 12 months after the reporting date; or
• It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
All other assets are classified as non-current.
• A liability is classified as current when it satisfies any of the following criteria: • It is expected to be settled in the Company’s normal operating cycle; • It is held primarily for the purpose of being traded
• It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current only
Financial Year ended 31st March, 2020 is the first financial year of the Company comprises of the period from the date of incorporation i.e 21st January, 2019 to 31st March, 2020. Consequently corresponding previous years figures are not applicable for the financial statements of the financial period ended 31st March, 2020.
3.2Property, Plant and Equipment (PPE)
3.3Depreciation and Amortisation
i
ii
iii
iv
3.4Impairment of PPE and other non-financial assets
3.5Cash and cash equivalents
3.6Inventories
Inventories are carried in the balance sheet as follows:
Raw material At lower of cost or net realisable value Work-in Progress At lower of cost or net realisable value Finished Goods / Stock in trade At lower of cost or net realisable value Stores, spares and consumable At lower of cost or net realisable value
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of the purchase price (net of GST/ CENVAT / duty credits wherever applicable) and all direct costs attributable to bringing the asset to its working condition for intended use and includes the borrowing costs for qualifying assets if the recognition criteria's are met. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.
An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or retirement.
Capital work-in-progress includes cost of property, plant and equipment under installation as at the balance sheet date and the cost of Property, Plant and Equipment not put to use are disclosed under ‘Capital work-in-progress’. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets
Depreciation on the property, plant and equipment is provided over the useful life of assets which is coincide with the life specified in Schedule II to the Companies Act, 2013. if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of triple shift the depreciation will increase by 100% for that period.
Property, plant and equipment (PPE) which are added/ disposed- of during the year, depreciation is provided on pro-rata basis from (up- to) the date on which the PPE is available for use (disposed-off).
The residual values and useful lives of PPE are reviewed in every financial year considering the physical condition, benchmarking analysis or indicators for review of residual value and useful life of the respective assets and the same is adjusted prospectively. Lease hold land is amortised over the period of lease.
Free-hold land are not subject to amortisation.
Property, plant and equipment and other non-financial assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. If such assets are considered to be impaired, the impairment to be recognised in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss is recognised immediately in Statement of Profit and Loss.
Cash and cash equivalents includes cash in hand and Cheques / drafts in hand, balances with banks, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments. The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (IND AS ) 7 statement of cash flows.
The cost of inventories comprises of cost of purchase, cost of conversion and other related costs incurred in bringing the inventories to their respective present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
3.7Employee benefits
a) Defined Contribution Plan
i
ii
b) Defined Benefit Plan
c)
d)
3.8Foreign Currency Reinstatement and Translation
a) Functional and presentation currency
b) Transactions and balances
3.9Financial Instruments –
Subsequent Measurement:
i
Expenses and liabilities in respect of employee benefits are recorded in accordance with Ind-AS 19 – Employee Benefits.
Provident Fund: Contribution to the provident fund with the government at pre-determined rates is a defined contribution scheme and is charged to the statement of Profit and Loss when employees have rendered services entitling them to such benefit.
National pension scheme : Contribution to national pension scheme with the at pre-determined rates is a defined contribution scheme and is charged to the statement of Profit and Loss when employees have rendered services entitling them to such benefit.
Gratuity : The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company.
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.
The company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/ (asset) are recognised in other comprehensive income. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations is recognised in Other Comprehensive Income. The effect of any plan amendments are recognised in net profits in the Statement of Profit and Loss.
Long term employee benefits: Provisions for other long term employee benefits-compensated absences, a defined benefit scheme, is made on the basis of actuarial valuation at the end of each financial year and are charged to the statement of profit and loss. All actuarial gains or losses are recognised immediately in the statement of profit and loss.
Other Short-term employee benefits: All employee benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc. and the expected cost of bonus, ex-gratia are recognised during the period in which the employee renders related service.
The financial statements have been presented in Indian Rupees (INR), which is the Company’s functional and presentation currency.
Transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing on the balance sheet date and exchange gain and losses arising on settlement and restatement are recognised in statement of profit and loss. Non-monetary items are measured in terms of historical cost in foreign currencies and are therefore not retranslated.
Initial Recognition: The Company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to or deducted from the fair value on initial recognition.
Financial Assets Carried at Amortised Cost:A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
ii
iii
iv
De-recognition
Offsetting of Financial Instruments
3.10Derivative financial instruments:
3.11Borrowing costs a) b) 3.12 Taxation Current Tax i ii iii Deferred Tax
Financial Assets carried at Fair Value through other Comprehensive Income: A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the Balance Sheet approach for all taxable temporary differences to the extent that it is probable that future taxable profits will be available. Deferred tax assets and liabilities are measured at the applicable tax rates and tax laws those are enacted or substantively enacted. Deferred tax assets and deferred tax liabilities are set-off, and presented on net basis. The carrying amount of deferred tax is reviewed at each balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Financial Assets at Fair Value through Profit or Loss:A financial asset which is not classified in any of (i) & (ii) above categories are subsequently fair valued through profit or loss.
Financial Liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
The company de-recognises of financial assets when the contractual rights to receive cash flows from the financial asset expire or transfer the financial asset and transfer qualifies for de-recognition under IND AS 109.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished is recognised in profit or loss as other income.
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
The Company uses derivative financial instruments, such as forward contracts to hedge its foreign currency exposure. The recognizing of the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, on the nature of the item being hedged. Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.
Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.
All other borrowing costs are recognised as expense in the period in which they are incurred.
Income tax expense represents the sum of current tax and deferred tax. Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised directly in equity or other comprehensive income.
Pursuant to the Taxation Laws (Amendment) Act, 2019, tax rates have changed w.e.f. from 1st April, 2019, and accordingly, the company has exercised the option permitted under Section 115BAA of the Income-Tax Act, 1961 for reduced tax rates. Accordingly current tax expenses have been accounted for.
For the period ended 31st March, 2019, Current tax provision was computed on Income calculated after considering allowances and exemptions under the provisions of the applicable Income Tax Laws of that assessment year.
Provision for current income taxes and advance taxes paid are presented in the balance sheet after offsetting them on an assessment year basis.
