1 Corporate Information
The standalone financial statements comprise of financial statements of Sawaca Bussiness Machines Limited for the year ended March 31,2025. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company’s shares are listed on BSE, a recognised stock exchange, in India. The registered office of the company is located at 45, Chinubhai tower, Opp. Handloom House, Ashram Road, Ahmedabad - 380009. The company is engaged in the business of sale of various chemical products and scarp material and investment and trading activity in shares. These Financial Statements have been approved for issue by the Board of Directors at their meeting held on 30th September 2025.
2 Basis of preparation
i Statement of Compliance with IND AS
The standalone financial statements for the year ended March 31,2025 of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and as amended time to time.
The standalone financial statements are prepared in Indian Rupeess and all values are rounded to the nearest lakhs, except where otherwise indicated. Any dispcrepancies in any table between any totals and sums of amounts are due to rounding off
ii Accounting Convention and Basis of measurement
The standalone financial statements have been prepared on a historical cost basis, on the accrual basis of accounting except for certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
3 Summary of Significant Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in the financial statements unless otherwise stated
i Property, Plant and Equipment (PPE)
Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and impairment loss, if any. Such cost include
purchase price, borrowing cost and any cost directly attributable to bringing assets to its location and working condition or its intended use.
Depreciation on Tangible Assets, PPE is charged on WDV method as per the useful life prescribed in Part C of Schedule: it of the Companies Act, 2013 and in the manner specified
therein. The residual values, useful lives and methods of depreciation of property plant and equipment are reviewed at each financial year end and adjusted prospectively, if any.
Depreciation on fixed assets added/ disposed off/ discarded during the year is provided on a pro-rata basis with reference to the month of addition/disposal/discarding.
ii Inventories
Net Realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated costs necessary to make sale.
iii Finance Cost
Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A Qualifying asset is one that necessarily
takes a substantial periost of time to get ready for its intended use or sale.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
iv Revenue Recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.
However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.
Sale of products
Revenue from the sale of products is recognised when the significant risks and rewards of ownership of the products have passed to the buyer, usually on delivery of the products. Revenue from the sale of products is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Sale of Service
Revenue from services rendered is recognised as and when services are rendered and related costs are incurred in accordance with the agreement.
Interest Income
For all financial assets measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.
v Employee Benefit Expenses Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
Post- Employment Benefits
The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related services.
The gratuity liability is paid in terms of insurance premium and the company does not have any liability once the contribution in tems of premium is paid.
vi Foreign currencies
Company has not made any forign transaction during the year.
vii Taxes on Income
Tax on Income comprises current tax. It is recognised in statement of profit and loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax
Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is recognized for the future tax consequences of deductible temporary differences between the carrying values of assets and liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or substantively enacted as on reporting date. Deferred tax liability are generally recorded for all temporary timing differences.
viii Provisions, contingent liablity and contingent Assets
Provisions are recognised 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 the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised 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.
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.
Contingent liability is disclosed in case of:
a) a presnt obligation arising from past events, whne it is not probable that an outflow of resources will be require to settle the obligation; and
b) a present obligation arising from past events, when no reliable estimate is possible,
Contingent assets are disclosed whn an inflow of economic benefits is probable.
ix Earning per share
Basic Earning per share is calculated by dividing the Net Profit after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Diluted EPS is computed by dividing the profit after tax, as adjusted for dividend, interest and other charges to expenses or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basis EPS and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
x Regrouping
The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to to the amounts and other disclosures relating to the current year.
xi Title deeds of Immovable Property not held in name of the Company
Title deeds of all immovable properties and lease agreements for all the leased premises are held in the name of the Company.
There are no instance of immovable property in which the immovable property is jointly held with others.
xii Loans and Advances given to Related Parties
The company has not granted Loans and Advances in the nature of loans to promoters, Directors, KMPs and the related parties either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of employment.
xiii Details of Benami Property held
The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
xiv Relationship with Struck off Companies
Based on the information available with the management, the company does not have any transactions with struck-off companies.
xv Registration of Charge
The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.
xvi Compliance with number of layers of comapanies
The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
xvii Disclosure where company has given loan or invested to other person or entity to lend or invest in another person or entity
The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign Entities (intermediaries), with the understanding that the intermediary shall;
i) 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
ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
xvii Disclosure where company has received fund from other person or entity to lend or invest in other person or entity
The company has not received any funds from any other person(s) or entity(is), including foreign Entities (intermediaries), with the understanding (whether recorded in writing or otherwise) that the Company shall;
i) 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
ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
xviii Undisclosed Income
The Company does nothave any transactions which is not recorded in the books of accounts but 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).
xix Details of Crypto Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
xx Wilful Defaulter
The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.
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