e. Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows
(representing the best estimate of the expenditure required to settle the present obligation at the balance
sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The unwinding of the discount is recognized as finance cost. Expected future
operating losses are not provided for.
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 not wholly within the control
of the Company. Where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
possibility of an outflow of economic benefits is remote.
f. Revenue from operations:
Revenue is recognised on the basis of approved contracts regarding the transfer of goods or services to
a customer for an amount that reflects the consideration to which the entity expects to be entitled in
exchange of those goods or services.
Sale of goods/ services
Revenue from the sale of the goods/services is recognised when deliver}' has taken place and control
of the goods has been transferred to the customer or obligations of services has been fulfilled
according to the specific term that have been agreed with the customer and when there are no longer
any unfulfilled obligations.
Revenue is measured after deduction of any discounts, price concessions, volume rebates and any
taxes or duties collected on behalf of the government such as goods and services tax, etc. The
Company accrues for such discounts, price concessions and volume rebates based on historical
experience and specific contractual terms with the customer.
g. Cusli uml cash equivalents
for the purpose of presentation in the statement ut cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to known amounts of cash and which
arc subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown
within borrowings in current liabilities in the balance sheet.
h. Income tax
Income tax comprises current and deferred tax. Current tax expense is recognized in statement of profit or
loss except to the extent that it relates to items recognized directly in other comprehensive income or equity,
in which case it is recognized in other comprehensive income or equity.
/. Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount
of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date. Current tax assets and current tax
liabilities are offset only if there is a legally enforceable right to set off the recognised amounts,
and it is intended to realize the asset and settle the liability on a net basis or simultaneously.
i. Earnings per share
Basic earnings per equity share is computed by dividing:
• The net profit attributable to equity shareholders of the company
• By the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account:
• The after-income tax effects of interest and other financial costs associated with dilutive potential
equity shares, and
• The weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.
j. New and Amended Standards:
The accounting policies adopted in the preparation of the financial statements are consistent with those
followed in the preparation of the Company's annual financial statements for the year ended March 31,
2024, except for amendments to the existing Indian Accounting Standards (Ind AS). The Company has
not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
The Ministry of Corporate Affairs notified new standards or amendment to existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.
The Company applied following amendments for the first-time during the current year which are
effective from 1 April 2024:
Introduction of Ind AS 117
MCA notified Ind AS 117, a comprehensive standard that prescribe, recognition, measurement and
disclosure requirements, to avoid diversities in practice for accounting insurance contracts and it
applies to all companies i.e., to all "insurance contracts" regardless of the issuer. However, Ind AS 117
is not applicable to the entities which are insurance companies registered with IRDAI.
Additionally, amendments have been made to Ind AS 101, First-time Adoption of Indian Accounting
Standards Ind AS 101, Rusiness Combinations, Tnd AS 105, Non-current Assets Held for Sale and
Discontinued Operations, Ind AS 107, Financial Instruments: Disclosures, Ind AS 109, Financial
Instruments and Ind AS 115, Revenue from Contracts with Customers to align them with Ind AS 117.
The amendments also introduce enhanced disclosure requirements, particularly in Ind AS 107, to
provide clarity regarding financial instalments associated with insurance contracts.
Amendments to Ind AS 116 -Lease liability in a sale and leaseback
The amendments require an entity to recognise lease liability including variable lease payments which
are not linked to index or a rate in a way it does not result into gain on Right of use asset it retains.
The Company has reviewed the new pronouncements and based on its evaluation has determined that
these amendments do not have a significant impact on the Company's Financial Statements.
Capital reserve
The 5% Cumulative Redeemable Preference Shares amounting to Rs. 73,000 thousands consisting of 7,30,000 shares of Rs 100 each, were due for
redemption in the month of January, 2007. Based on the offer given to preference shareholders regarding variation in terms of preference shares and
iredemption letter, the Preference Shareholders unanimously approved the offer in their meeting and accordingly, out of Rs 73,000 thousands waiver has
been given for Rs 85 per share amounting to Rs 62,050 thousands and the remaining amount of Rs 15 per share amounting to Rs 10,950 thousands has
been redeemed by way of payment to preference shareholders. Accordingly, Capital Reserve of Rs. 62,050 thousands is created on waiver of Rs. 85 per
share.
General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance
with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up
capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction
of Companies Act 2013. the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However,
the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.
18 Going Concern
The Company has accumulated losses of Rs. 237,167.21 thousands as on Mar 31,2025 (Rs. 234,644.72 thousands as on March 31,2024) and its net worth has been fully eroded,
the Company has suferred net Losses of Rs.2522.49 thousands and incurred loss of Rs. 1796.84 thousands during the current and previous year respectively and, the Company 's
current liabilities exceeded its current assets by Rs. 21,095.71 and Rs. 18,324.19 thousands as at the balance sheet date of current year and previous year respectively.The
Company has severely curtailed its operations due to meagreness of funds and adverse market conditions. The Company was not allowed to carry Non-Banking Financial
Business due rejection of its application by the Reserve Bank accordingly,The operations of the Company are restricted to realization of debtors or advances. These conditions,
indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. However, The management is
negotiating with certain parties for realizing some of the assets and is hopeful of generating funds for this business. 1 he accounts ol the company have been prepared on a
“going rnnrern” hasis on an assumption ft promises made hy the management that adequate finances and opportunities would he available in the foreseeable future to enable
the company to start operating on a profitable basis. In view of the above, the accounts of the Company have been prepared on a going concern basis.
20 No Employee Benefits Schemes such as Gratuity, Provident Fund & other staff welfare schemes are applicable on the Company during the reporting year. Accordingly no
provision has been made during the reporting period as mandated by “Ind AS 19 on Employees Benefits”.
21 Based on Company's assessment on current and expected future recoverability of losses, there is no reasonable certainity of realisation of current and accumulated losses,
hence the Company has not recognized deferred tax assets on termporary differnces.
22 Earnings per share (EPS)
Basic and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares
outstanding during the year.
The following reflects the income and share data used in the basic and diluted EPS computations:
The management assessed that cash and cash equivalents, other bank balances, trade receivables, trade payables and other current financial liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is included 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.
Fair value hierarchy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input
that is insignificant to the fair value measurements as a whole.
Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : Valuation techniques for which the lowest level inputs that has a significant effect on the fair value measurement are observable, either directly or indirectly.
Level 3 : Valuation techniques for which the lowest level input which has a significant effect on fair value measurement is not based on observable market data.
25. Financial risk management objectives and policies
The Company’s principal financial liabilities comprise of borrowings, other payables and provisions. The Company’s principal financial assets include
receivables and cash and cash equivalent.
A. Market risk
Market risk is the risk that the fair value of future cash Hows of a financial instrument will fluctuate because of change in market price. Market risk
comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
However, as the Company does not have any outstanding floating rate interest bearing long term and short term debts at the balance sheet date.
Therefore, a change in interest rates on the reporting date would neither affect profit or loss nor affect equity.
Fair value sensitivity analysis for fixed rate instruments
The Company does not have any fixed rate financial assets and liabilities at fair value through profit and loss as on date. Therefore, a change in interest
rates at the reporting date would neither affect profit or loss nor affect equity.
B. Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its financing activities, including deposits with banks. Management has a credit policy in place and the exposure
to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.
An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on exchange losses historical data. The
maximum exposure to credit risk at the reporting dale is the carrying value of each class of financial assets disclosed below. The Company does not
hold collateral as security. The Company evaluates the concentration of risk with respect to financing activities as low on the basis of past default rates
of its customers.
C. Liquidity risk
he Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of long term and short term borrowings
and cash credit facilities. The table below summarises the maturity profile of the Company’s financial liabilities based on contracted undiscounted
payments.
27. Mavvana Sugars Limited (The Parent Company) has also entered into a Share Purchase Agreement (SPA) dated February 25, 2021 jointly with Mr.
Prameet Singh Sood and Ms. Aveen Kaur Sood (Acquirer)to sell its entire shareholding i.e. 85,07,814 equity shares of face value of Rs. 10/- each
representing 75% of total paid up equity share capital of the SIEL Financial Services Limited (SFSL), on a mutually agreed price of Rs 0.13 per shares
for a total consideration of Rs 1,110 thousands, which has been received by the Parent Company on February 25, 2021. During the year ended March
31.2022 the above shares are transfered to Acquirer and Mavvana Sugars Limited ceased to Holding Company of the Company
28. No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorization.
29. There are no present obligations requiring provision in accordance with the guiding principles as enunciated in 1ND AS -37, as it is not probable that
an outflow of resources embodying economic benefits will be required.
31. Additional disclosures as required under schedule III of the Companies Act 2013.
(i) Company is not holding any immovable property as of 31/3/2025 and 31/3/2024 and accordingly disclosure related to title deed not held in the name of
company is not applicable.
(ii) The Company is not having any Capital-work-in progress as of 31/3/2025 and 31/3/2024 and accordingly disclosure related to CW1P where completion
is overdue or has exceeded its cost compared to its original plan is not applicable to the company.
(iii) 'fhe company does not hold any Investment Property in its books of accounts, so fair valuation of investment property is not applicable.
(iv) The Company has not revalued any of its Property, Plant & Equipment including Right of use assets and Intangible assets in the current year &.
previous year.
v) The company has not granted any loans or advances to promoters, directors. KM P's and the related parties that are repayable on demand or without
specifying any terms or period of repayment
(vi) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
property.
vii) Company is not having any transaction with the Companies struck off under the Section 248 of the Companies Act 2013 or Section 560 of the
Companies Act 1956.
(viii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(ix) The company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.
(x) fhe Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of
security of current assets. Accordingly filing of stock statement is not applicable to the Company.
(xi) flic Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(xii) The Company have 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
(xiii) 4 he Company have not received any fund other than above 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,
(8lv) Die Company have not any such transaction which is not recorded in the books ot accounts that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
0<v) 1 he pmviaimvt nf r.lninr (117) of vrtirm ? of thr Art n ml nidi iIm. Cuni|.iriiiiei (Roll it,lion on uuuibei ofLaywih) Rulwt.. 2017 mu util ii|i|illuilhlu in tin.'
company as per Section 2(45) of the Companies Act,2013.
(xvi) 1 here were no scheme of Arrangements approved by the competent authority during the year in terms of section 230 to 237 of the Companies Act,
2013.
32. Audit frail: The Company has used an accounting software for maintaining its books of account for the financial year ended March 31, 2025 which
does not have a feature of recording audit trail (edit log) facility.
33. Ihe figures of the previous year have been regrouped/recasted. wherever considered necessary, to confirm to the current year classification
'lor S.K. Mehta & Co. For and on behalf of the Board of Directors of
Chartered Accountants For CMX Holdings Limited
Firm Registration No. 000478N (Formerly known as S1EL FINANCIAL SERVICES LIMITED)
Partner /co/ \ J V \ Aveen Kaur Sood^fTTV^v^ Amit Kumar
M. No. 087002 I * 1 FRN;0004?bNJ *1 Diieclui /Sk'—EMrcciur
\Q \ New Delhi / <?/ DIN 02638453/'V \>Y)IN 09757887
M )§
f ter
Place . Gurugram / Sonal Vyas Deepak Kumar Rustagi
Dale : 05/05/2025___Company Secretary_Chief Financial Officer_
|