k) Provisions
Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, 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. When a provision is expected to be
reimbursed, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the
Statement of Profit and Loss net of any reimbursement.
l) Contingencies
A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises where a reliable estimate of the amount of the
obligation cannot be made.
Contingent assets are not recognized but are disclosed where an inflow of economic
benefits is probable. The estimation of financial effect in respect of contingent liabilities and
contingent assets wherever not practicable, is not disclosed and such fact is accordingly
stated. .
m) Financial instruments
Financial assets
All financial assets are recognized initially at fair value. However in case of financial assets
that are not recorded at fair value through profit or loss; the transaction costs that are directly
attributable to the acquisition of issue of such financial assets are added to the value of the
financial assets.
Financial assets presently held by the Company are classified as Debt instruments at
amortized cost
After initial measurement, such financial assets are subsequently measured at amortized
cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included in finance income in the profit or loss. The
losses arising from impairment are recognized in the statement of profit or loss. This
category generally applies to trade and other receivables.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss on the following financial assets and credit
risk exposure:
i. Financial assets that are debt instruments, and are measured at amortised cost e.g.,
loans, debt securities, deposits, trade receivables and bank balance
ii. Trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind AS 18.
The company follows 'simplified approach' for recognition of impairment loss allowance
on Trade receivables or contract revenue receivables. ECL impairment loss allowance (or
reversal) recognized during the period is recognized as income/ expense in the Statement
of profit and loss (P&L). This amount is reflected under the head ‘other expenses' in the
P&L.
Financial liabilities
The Company's financial liability consists of trade and other payables, loans and borrowings
and bank overdrafts.
All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs, if any.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in profit or loss when
the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss. This category generally applies to interest¬
bearing loans and borrowings.
n) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
short-term deposits with a maturity of three months or less, highly liquid investments that are
readily convertible into known amounts of cash which are subject to an insignificant risk of
changes in value.
o) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before extraordinary items
and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available
information.
p) Employee benefits
Short Term Employee Benefits: *
All employee benefits payable within twelve months of rendering the service are classified as
short term employee benefits and they are recognized in the period in which the employee
renders the related service. The Company recognizes the undiscounted amount of short
term employee benefits expected to be paid in exchange for services rendered as a liability
(accrued expense) after deducting any amount already paid.
Retirement benefit costs and termination benefits and other long term employee
benefits
Defined Benefit Plans
Provision for Gratuity and Leave Salary is made on the basis of Actuarial Valuation at the
end of the Financial Year.
q) Earnings per Share (EPS)
Basic earnings per share is calculated by dividing net profit or loss after tax for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.
Upon discontinuation of an operation the basic and diluted amount per share for the
discontinued operation is separately reported, as applicable.
r) Cash Dividend
The Company recognizes a liability to make cash distributions to shareholders when the
distribution is authorized and the same is no longer at the discretion of the Company. As per
corporate laws in India, a distribution is authorized when it is approved by the shareholders.
A corresponding amount is recognized directly in equity.
(ii) Rights & Restrictions attached to shares
(a) The Company has only one class of share capital namely Equity Shares having face value of Rs 10/- each The equity shares have right,
preferences and restrictions which are in accordance with the provisions of law, in particular the Companies Ad,2013
(b) In respect of every equity share (whether fully paid or partly paid except where calls are in arrears) .voting right shall be in the same
proportion as the capital paid up on such equrty share bears to the total paid up equity capital of the company.
(c) The dividend proposed by Board Of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting
.except in case of interim dividend.
(d) In the event of liquidation . the shareholders of equity shares are eligible to receive the remaining assets of the company after
distribution of all preferential amounts, in proportion to their shareholdings.
(Ill) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates: NIL
The* oMiiwi'y gives warranty on certain pioducts However, the Company has not mane any piovij.on lor warranty coat* based on the port »'t-'w'ce anil malenalily ol ttie amounts
Involved
Note 33 : S*u"*»"'t Repotting
The Company is •n9*n«*l in trading of Eladncal & El*s= J/untc wjfirtfl Intnjsnunits only and therefore tliere are no reporteN# Segment.
Note 34 : Employee Benefits:
General Pen'-ripltun of Defined Benefit Plan
Thq Com Janfhas^Zm a.x ,.unt,ng tor provision on * ^nl of leave encashment on leinement t -art on actuarial valuation earned out as at the Balance Shaat data
The liability fur Die leave encashment on retirement as at 31st March 2024 IB Rs. 65 56/- (31 it March 3C23 i* R* 103 04/-).
The Confoanyopera'es gratuity plan wherein every employee IS enhllerl to the benefit equivalent to one month Salary last drawn for each completed year of service depending Upon the
dale of joining the same Is payable on death, separation from se.vlce, or reli.emenf, whichever is earlier. The benefit yens after five years of continuous seivlce. Dunng the year, the
ciia/ye on ac< '"jnt of Gratuity has t>*»»n chaiged to Statement of Profit and Lmt
Nolo 37 : Pair values
Tha management haa ai»«u«d that Its financial *«&«** and liabilities like ca:.h and cash equivalent*, trado receivable*, Uoce payable*, bank overdrafts and oilier Current liab*""HS
approximate their carrying amounts largely doe 10 the short-term maturities of tt>»»o Instrument*.
Note 38 : Financial risk Management objectives and policies
The Company's principal financial liabilities, other ll»an derivatives, comprise of loans and borrowings, tied* and ether payables The main purpr «e of these financial llabtmiee Is to
fmai ice the Company'* op«< ai*<ms.
The Company’s pnnc*pal financial ** »•!* Include loans, trade and other re a-vables. and cu>h and cash equivalents that donva directly fiom its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company has a R<*k Management Policy which covers risk o* > - *aled with the financial ai d liabilities.
The risk management pokey is approved by tlie B aid of Directors The form of the Risk Management Policy is to at »-«* the unpredictability of the financial envlroment & to mitigate
potential advo< so effect* on the financial performance of the Company
(ft) fifth . ... . ^ ,
Maiket riak is the risk that tho fair valuo of future cash flows of a financial instrument w*ll fluctuate of changes In market pin Maikoi risk computes three types Of risk
Interest rale nsk. currency risk and ether price risk, such as equity price risk and com • -Tty risk The Company’s activities #*p™«'S H't primarily lo Ihe financial risk of changes in
foreign cuuency risk.
(I) Interest Rale Ri*k:
Ths Company's borrowing* are primarily In fi.-d rate Merest bearing Inveslmanls Hence tho Company is not signiricaiilly eipoiedlo Inleie.l Rule Risk.
Note 45 ‘.Additional Reporting requirement as per amendment in Schedule III of the Company's Act 2013 :
i) Details of Benami Property held
No proceedings have b**n initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Ad. 1&»8 (45 of l&nfl) a* ,d Ruins
marie thereunder.
ii) Title d*eds of immovable properties not held In name of tho company
There are no immovable properties which are not held in name of the company.
Ill) Valuation of Property, Plant & Equipment, intarrgiblo asset and investment property
The Company has not revalued its property, plant and equipment (including rrght-cf-use a>vets) or mletugibie a? -"is during the current or previous year.
Iv) Borrowings from Banks or Financial Institution on tho basis of Security of Current Assets
No Borrowings were made from Banks or Finetnual InbMufion on the basis of Security of Current Assets
v) Wilful Defaulter
The Company has not been deplored wilful defaulliv by any bunk or financial inr*ti*ulinns or government or any government authority
vi) Relationship with stnick off Companies
The Company has no transe> >•' >nfi with the Companies struck off under the Compan ds Act, 2013
vii) Compliance with approved schemc(s) of arrangement*
The Company has not entered into any scheme of auaiMjenwut winch has on ac counting impact on current or previous financial year,
viil) Undisclosed Incomo
There is no income surrendered or disclosed as Income duiirig the current or prev; us year in the las assessments under the Income Tax Act, 1$61, that has not been recorded In the
books of account.
ix) Derails Of cypto Currency Of virtual Currency
The Company has not traded or lnveti*d In crypto currency or virtual currency during the current or previous yoar
X) Utilisation Of Bouuwed funds and share premium
The Company ha6 utilised borrowed fund fui the purp* *e as specified in the terms of tarn ti<ms.
Nule 47 : The figure* a* on the lianalllon date and previou* year have been re-arranged and rejrciuped nvlretever ne i-.jry and for practicable to make Ihem comparable wUhlhoceof
thecuiieul year.
As per our report of even data attached Por and on behalf of tho Board of Olreclore of
For RANK and Aeeodete* KUSAM ELECTRICAL INDUSTRIES LIMITED
Chartered Accountants \ .
\CM Firm Registration No. 10SSI9W c I / ( /
CA Rahul Nahata - * ' Na.in C. taUy/ T Chandmal P. Gollya
P*rtn*r ff^VTTX^ Director Director
Mambarahlp No: 116511 ((^f II/ \U>\\ DIN: 00164681 DIN:001678«
|f || c ^ f
Place: Mumbai y' ^'/ Naval Jha Amruta K. Lokhande
Data: 15th May, 2024 rwT' Chief Financial officer Company Secretary
M. No.: A38254
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