x) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation (legal or constructive) as a
result of past events and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can be
made of the amount of obligation. Provisions (excluding gratuity and compensated absences) are
determined based on management's estimate required to settle the obligation at the Balance
Sheet date. In case the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost. These are reviewed at
each Balance Sheet date and adjusted to reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events,
whose existence would be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company. A contingent liability also
arises, in rare cases, where a liability cannot be recognised because it cannot be measured
reliably.
xi) Cash Flows
Cash flows are reported using the indirect method, where by net profit 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 cash flows. The cash flows from operating, investing and financing activities are
segregated.
Note 36 : Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to
the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
the Managing Director of the Company. The Company operates only in one Business Segment i.e.
“Investment and Finance”, hence does not have any reportable Segments as per Ind AS 108
“Operating Segments”.
Note 37 : Financial instruments - Fair values and risk management
The fair value of the financial assets are included at amounts at which the instruments
could be exchanged in a current transaction between willing parties other than in a forced
or liquidation sale.
The following methods and assumptions were used to estimate the fair value
a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade
payables, other current liabilities, approximate their carrying amounts largely due to the short¬
term maturities of these instruments
b) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the counterparty.
Based on this evaluation, allowances are taken to account for the expected losses of these
receivables.”
B. Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that
are not based on observable market data.
Financial Risk Management
Risk management framework
A wide range of risks may affect the Company's business and operational / financial
performance. The risks that could have significant influence on the Company are market risk,
credit risk and liquidity risk. The Company's Board of Directors reviews and sets out policies for
managing these risks and monitors suitable actions taken by management to minimise potential
adverse effects of such risks on the company's operational and financial performance.
Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk.
Currency risk
The Company is not much exposed to currency risk.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company's
trade and other receivables, cash and cash equivalents and other bank balances. To manage this,
the Company periodically assesses financial reliability of customers, taking into account the
financial condition, current economic trends and analysis of historical bad debts and ageing of
accounts receivable. The maximum exposure to credit risk in case of all the financial instruments
covered below is restricted to their respective carrying amount.
Note 38 : Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and
all other equity reserves attributable to the equity holders of the Company. The Company strives
to safeguard its ability to continue as a going concern so that they can maximise returns for the
shareholders and benefits for other stake holders. The aim to maintain an optimal capital
structure and minimise cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust the
capital structure, the Company may return capital to shareholders, issue new shares or adjust
the dividend payment to shareholders (if permitted). Consistent with others in the industry, the
Company monitors its capital using the gearing ratio which is total debt divided by total capital
plus total debts.
Note : For the purpose of computing total debt to total equity ratio, total equity includes equity
share capital and other equity and total debt includes long term borrowings, short term
borrowings, long term lease liabilities and short term lease liabilities.
Note 39 : Corporate Social Responsibility
The Provision for CSR are not applicable as per Section 135 of Companies act 2013.
Note 40 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE
COMPANIES ACT, 2013
1. The Company does not have any benami property held in its name. No proceedings have been
initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
2. The Company has complied with the requirement with respect to number of layers as
prescribed under section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of layers) Rules, 2017.
3. Utilisation of borrowed funds and share premium
(i) 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 Company (Ultimate Beneficiaries) or
b. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(ii) 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.
4. There is no income surrendered or disclosed as income during the year in tax assessments
under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the
books of account.
5. The Company has not traded or invested in crypto currency or virtual currency during the
year.
6. The Company does not have any charges or satisfaction of charges which is yet to be
registered with Registrar of Companies beyond the statutory period.
7. During the year, the company has not announced any dividend during the year.
8. The Company has not been declared wilful defaulter by any banks.
Note 41 : Prior year comparatives
Previous year's figures have been regrouped or reclassified, to conform to the current year's
presentation wherever considered necessary.
For, S K Bhavsar & Co. For & on behalf of the Board of Directors of
Chartered Accountants Ardi Investment and Trading Co Ltd
Firm Registration No. 145880W
Sd/- Sd/- Sd/-
Shivam Bhavsar Gautam Sheth Shvetalven Dataniya
Proprietor (Managing Director) (Director)
Membership No. 180566 (DIN: 06748854) (DIN: 09629900)
UDIN: 24180566BKEZJQ6151
Sd/- Sd/-
Atul Shah Parth Patel
(Chief Financial officer) (Company Secretary)
Place: Ahmedabad Place: Ahmedabad
Date: May 30, 2024 Date: May 30, 2024
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