P. Provisions & Contingencies
A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognised when the Company has a present obligation
(legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance
sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations
that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where the
likelihood of an outflow is remote, no disclosure or provision is made.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed, where
an inflow of economic benefits is probable.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable
is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured
reliably.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 recognised as a
finance cost.
Q. Income Taxes
Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the
extent it relates to items directly recognized in equity or in other comprehensive income.
Current tax
Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities
based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are
enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current
tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis
or to realize the asset and liability simultaneously.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable
temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements,
except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences.
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.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period 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.
Estimation of fair value
The company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current
prices in an active market for similar properties. Where such information is not available, the company considers information from a variety
of source including:
- Current prices in an active market for properties of different nature or recent prices of similar properties in less active markets,
adjusted to reflect those differences
- Capitalised income projections based upon a property's estimated net market income and a capitalisation rate derived from an
analysis of market evidence
The fair values of investment properties have been determined by an accredited registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017, holding the recognised and relevant professional qualification and has recent experience
in the location and category of the investment property being valued. The main inputs used are the local enquiries and prevailing market
trends adjusted for location, size, utility, condition and other factors having influence over the fair value. All resulting fair value estimates
for investment properties are included in level 3.
Note-1: Post employment benefits and other long term employee benefits in relation to Key Managerial Personnels have not been shown separately as these are
determined on actuarial basis for the company as a whole.
Note-2: Mr. Vishnu Prasad Muddana was appointed as Vice-President (Project) of the company w.e.f. July 1,2024. Subsequently, Mr. Vishnu Prasad Muddana has
been appointed as Chief Financial Officer of the company w.e.f. January 28, 2025. Therefore the managerial remuneration of Mr. Vishnu Prasad Muddana
includes the remuneration as Vice-President (Project) and Chief Financial Officer of the company.
39 SEGMENT INFORMATION
For management purposes, the company is organised into business units based on its products and services and has three reportable
segments, as follows:
- Trading segment comprise of trading of goods/commodities
- The real estate segment which comprise of activities in the real estate sector including development of real estate, trading of real estate
assets etc.
- The investment segment comprise of extending in form of intercorporate deposits of the surplus funds, investment in equity instruments
and other securities
- Unallocable segment comprise of activities which can not be allocated to any of the above three segments and none of the activities
meet the quantitative thresholds to produce a reportable segment. The source of revenue comprise majorly of interest income on fixed
deposits and miscellaneous income not allocable to reportable segments.
The fair value of the financial assets and liabilities is determined at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.
The management assessed that fair value of trade receivables, trade payables, cash and cash equivalents and other bank balances,
other financial assets and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments and the transactions being entered into at arm's length. In respect of loans, the fair value equals the carrying value as the
risk management mechanism established by the company indicates that no credit losses in the value of these loans. The fair value of
lease liabilities is also considered to be equal to its book value.
The fair value of investments in mutual fund is determined on the basis of NAV of mutual fund declared on the last day of the financial
year. The fair value of the equity instruments measured at FVTOCI is determined on the basis of the valuation report of an independent
valuer who determines the value as per the financials of the investee, use of available fair values of the investee's assets, assumptions
suitable to the method of valuation adopted and key data from the management of the investor for valuation purposes as obtained from
the investee.
43 FINANCIAL RISK MANAGEMENT
The Company's principal financial assets include investment in equity instruments and mutual funds, Inter-corporate deposits, trade
receivables, other receivables and cash & bank balances.
The Company's principal financial liabilities comprise trade payables, creditor for expenses and other financial liabilities. These other
financial liabilities mainly comprise of creditors for expenses and employee benefits payable.
The Company's activities expose it to credit risk and liquidity risk. The company is not exposed to any market risk, neither in form of
interest rate risk as the debt instruments issued by the company (i.e. intercorporate deposits) bear a fixed rate of interest as per the
inter-corporate deposit agreements nor any foreign exchange risk. The different types of risk the company is exposed to are as follows:
(i) Credit risk
Credit risk is the risk that customer or counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company's significant credit risk concentration is in its trade receivables and loans given [i.e. intercorporate
deposits (ICD)] and interest receivable thereon aggregating to ? 524.95 Lakhs as at March 31,2025 i.e. 2.15% (? 697.72 Lakhs
as at March 31,2024 i.e. 3.65%). The objective of managing counter party credit risk is to prevent losses in financial assets. The
Company assesses the credit quality of the ICD parties on regular basis by analysing their default pattern, reviewing annual financial
performance and creditworthiness as evident from their financial statements. The company regularly assesses the increase in risk of
default since initial recognition. The company considers a default of more than 6 months as an indicator for increased risk of default
requiring the assessment of expected credit losses and resulting impairment, if any. The company uses a provision matrix to compute
the expected credit losses (ECL) for trade receivables. The provision matrix takes into account internal and external credit risk factors
and the company's historical experience for customers.
However, as at the date of balance sheet all parties were regular in meeting their contractual obligations and none of the financial
assets are credit impaired. Credit risk on cash & cash equivalents and other bank balances is limited as the company holds these
deposits with scheduled banks with high credit ratings.
Investments are primarily in equity instruments of companies. The management regularly values the investments from independent
professional valuers to determine any impairment in the value of investments. Further, the company invests on short term basis in
mutual funds having high credit rating from domestic credit rating agencies.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The company does
not have any significant financial liability as at March 31,2025 or March 31,2024 and Company has enough liquid funds in the form
of cash and cash equivalents to meet its financial obligations as and when they become due. The Company manages its liquidity
risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
As at March 31 2025, the company had a working capital of ? 17851.92 lakh (Previous year ? 18199.84 lakh). Further, the company
has substantial pool of highly liquid financial assets like cash & cash equivalents, trade receivables and short term investments in
mutual funds aggregating to ? 1709.53 lakh (Previous year ? 1739.38 lakh) as against the total current liabilities of ? 1043.15 lakh
(Previous year ? 486.02 lakh) which clearly establishes very strong liquidity position of the company.
The maturity analysis of the financial liabilities of the company as at 31.03.2025 is given as below:
(v) The Company has no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the
tax assessments under the Income Tax Act, 1961 (43, 1961) during the year.
(vi) CORPORATE SOCIAL RESPONSIBILITY:
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas
for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and
rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the
company as per the Act. The funds were allocated to a charitable institution for spending towards healthcare promotion as covered
under activites specified in Schedule VII of the Companies Act, 2013.
(vii) The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(viii) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) No funds (which are material either individually or in the aggregate) have been received by the company from any person(s) or
entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
46 OTHER NOTES:
(i) Capital management: The company has only equity capital as the only source of capital and has no funds raised in form of
borrowings. The company aims at utilising the capital in the most optimum manner. Hence the comprehensive disclosures required
by Ind AS 1, in respect of capital management are not required.
(ii) As per the internal assessment of the company, there is no non financial asset and investment in associate accounted for in
accordance with IND AS 27 requiring allowance for impairment in compliance of IND AS 36 on “Impairment of Assets” other than
already provided for, if any.
(iii) Based on the information available with the company, there are no dues as at March 31, 2025 and March 31, 2024 payable to
enterprises covered under “Micro, Small and Medium Enterprises Development Act, 2006”. No interest is paid/payable by the
company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006.
(iv) Previous years figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/
disclosures.
As per our report of even date attached
For Oswal Sunil & Company For and on behalf of the Board of Directors of
Chartered Accountants OSWAL AGRO MILLS LIMITED
(Firm Registration No. 016520N)
Narinder Kumar Dhiraj Gupta
Nawin K Lahoty CEO and Whole-time director Director
Partner DIN : 01936066 DIN : 09240964
Membership No. 056931
Vishnu Prasad Muddana Payal Agarwal
Place : New Delhi Chief Financial Officer Company Secretary
Date : 21st May, 2025 PAN : AFNPM6955L M.No. 71645
UDIN : 25056931BMLDCQ6205
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