1 Corporate Overview :
Siyaram Recycling Industries Limited was incorporated in 2007 under the provisions of Companies Act
applicable in India. The company is situated at Lakhabaval village of Jamnagar District in the state of Gujarat.
Its shares are listed on Bombay Stock Exchange (BSE). The company is engaged in manufacturing of all kinds
of Brass Plumbing and Sanitary Components. The company caters domestic as well as International market.
The financial statements were approved and authorized for issue in accordance with a resolution of the
board of directors on 20th May, 2025. On 20th May, 2025 Board of Directors of the Company approved and
recommended the audited financial statements for consideration and adoption by the shareholders in its
Annual General Meeting.
1.1 IND AS 1- Presentation of Financial Statements and Schedule III:
The financial statements have been prepared to comply in all material respects in accordance with Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 [Companies (Indian
Accounting Standards) Rules, 2015] as amended from time to time and guideline issued by Securities &
Exchange Board of India (SEBI).
The financial statements have been prepared under historical cost convention on an accrual basis. The
accounting policies have been consistently applied by the Company with those used in the previous
year. The financial statements are presented in INR (which is the Company's functional and presentation
currency) and all values are rounded to the nearest lakhs (INR 1,00,000), except when otherwise indicated.
All assets and liabilities, other than deferred tax assets and liabilities, have been classified as current or
non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III
(Division II) to the Act. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Based on the nature of products and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months
for current and non-current classification of assets and liabilities.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh
as per the requirement of Schedule III, unless otherwise stated.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumption which are based upon Management's
evaluation of the relevant facts and circumstances as of the date of the financial statements that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
as at the financial statements and the results of operations during the reporting period. Future result
could differ from those estimates. The effects of change in accounting estimates are reflected in the
financial statements in the period in which the results are known and if material, are disclosed in the
financial statements.
Estimates and judgments are regularly revisited. Estimates are based on historical experience and other
factors, including futuristic reasonable information that may have a financial impact on the company.
1.2 IND AS 2-Inventories:
Cost of inventories have been computed to include all costs of purchases (including materials), cost of
conversion and other costs incurred in bringing the inventories to their present location and condition.
a Raw Materials and stores and spares are valued at lower of cost and net realizable value. However,
materials and other items held for use in the production of inventories are not written down below
cost if the finished products in which they will be incorporated are expected to be sold at or above
cost. Cost of raw materials and stores and spares is determined on a First-in-first out basis. Cost of
Raw Materials is Rs. 8409.04 Lacs and Cost of Store and Spares is Rs. 173.89 Lacs.
b Work-in-progress and finished goods are valued as lower of cost and net realizable value. Cost
includes direct materials and labour and a proportion of manufacturing overheads based on normal
operating capacity, incurred in bringing them to their respective present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to make the sale. Cost of Work in progress and
Finished Goods is Rs. 11,484.35 Lacs.
c Traded goods are valued at lower of cost and net realizable value. Cost include cost of purchase
and other costs incurred in bringing the inventories to their present location and condition. Cost is
determined on a First-in-first out basis.
d By-Products are valued at Net Realisable Value.
e Inventory of machinery spares and maintenance materials not being material are expensed in the
year of purchase.
1.3 IND AS 7-Cashflow Statements
Cash Flows are presented using indirect method, whereby profit/(loss) before extra ordinary 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 flow from operating, investing and financing activities of the
company is segregated based on the available information.
Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term
balances, highly liquid investment with maturity of 3 months or less that are readily convertible into cash.
1.4 IND AS 12-Taxes on Income:
(a) Current income tax expense comprises taxes on income from operations.
(b) Income tax payable in India is determined in accordence with the provisions of Income Tax Act, 1961.
(c ) Deferred tax expense or benefit is recognised on timing differences; being the difference between
taxable income and accounting income that originate in one period and are capable of reversal in
the subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax
laws prevailing as on the date of the Balance sheet.
(d) In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are
recognised to the extent there is virtual certainity that sufficient taxable income will be available in
future to realise such assets.
(e) The company offsets deferred tax assets and deferred tax liabilities, if it has a legally enforceable
right and these relate to taxes on income levied by the same governing tax laws.
1.5 IND AS 16- Property,Plant & Equipment:
(a) Tangible Fixed Assets are stated at cost, less accumulated depreciation and impairment loss, if any.
Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Each part of an item of property, plant and equipment with a cost
that is significant in relation to the total cost of the item is depreciated separately. When significant
parts of fixed assets are required to be replaced at intervals, the company recognizes such parts as
individual assets with specific useful lives and depreciates them accordingly. Any trade discounts
and rebates are deducted in arriving at the purchase price.
(b) Freehold Land is carried at Cost of Acquisition.
(c) Depreciation on Tangible assets is provided on Written down basis at the rates and in the manner
prescribed in Part C of Schedule II to the Companies Act, 2013. Depreciation on assets added /
disposed off during the year is provided on prorata basis with reference to the month of addition /
deduction. An item of property, plant and equiptment and any significant part initially recognised
is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. The Depreciable amount of an asset is allocated on a systematic basis over the useful
life of the asset.
(d) Subsequent costs are added to its asset's carrying value only if they increases the future benefits
from the existing asset will flow to the company. All other expenses on fixed assets, including repair
and maintenance expenditure and replacement expenditure of parts, are charged to Statement of
Profit and Loss for the period during the which such expenses are incurred.
(e) During the year there is Capital WIP of Solar of Rs. 174.48 Lacs as the asset is not put to use in current
financial year till 31st March 2025.
1.6 IND AS 18-Revenue Recognition
Revenue is recognised when control of goods and services have been transferred to the customer; at
an amount that can be reliably measured and reflects the consideration which the Company expects
to be entitled in exchange for those goods or services, it is also probable that future economic benefits
will flow to the Company. The timing of when the company transfers the goods or provide services may
differ from the timing of the customer's payment. Amounts disclosed as revenue are net of Goods and
Service Tax (GST) as Company collects goods and service tax on behalf of the government and therefore,
there are not economic benefits followings to the company.
(a) Sale of Goods
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership
of the goods have been passed to the buyer, i.e. control of goods it can be reliably measured and it
is reasonable to expect ultimate collection. Therefore revenue recognition generally corresponds
to the date when the goods are made available to the customer, or when the goods are released to
the carrier responsible for transporting them to the customer in the following manner:
i) Domestic sales are recognised at the time of dispatch from the point of sale;
ii) Export sales are recognised on the date as per terms of sale of every export contract and are
initially recorded at the relevant exchange rate prevailing on the date of the transaction.
Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining
benefits from goods.
The nature of contracts of the Company are such that no material part performance obligations
would remain unfulfilled at the end of any accounting period.
Financing component
Generally, the Company receives short term advances from its customers. The Company applies
the practical expedient for short-term advances received from customers. That is, the promised
amount of consideration is not adjusted for the effects of a significant financing component if the
period between the transfer of the promised good or service and the payment is one year or less.
Principal versus agent consideration in respect of freight/transportation charges
The Company, on behalf of its customers (especially export customers), dispatches goods to agreed
locations for an agreed fee. The Company has determined that the performance obligation of the
Company is to arrange for those goods and services (Company is an agent) to the customers and
hence the amount charged to the customer offset by freight charges/transport charges on export
paid to the freight service providers is shown as revenue and disclosed as other operating income
or other operating expenses, depending upon the results of the offsetting.
(b) Interest Income
Interest Income from a Financial Assets is recognised using effective interest rate method.
(c) Export Incentives/Income
Exports entitlements are recognised when the right to receive credit as per the terms of the schemes
is established in respect of the exports made by the Company and when there is no significant
uncertainty regarding the ultimate collection of the relevant export proceeds.
(d) Dividends
Dividends are generally recognised in the Statement of Profit and Loss only when the right to
receive payment is established.
1.7 IND AS 19-Employee Benefits:
The company makes defined contribution to Government Employee Provident Fund which is recognised
in the statement of profit and loss account on accrual basis. Payments to defined contribution retirement
benefit plans are recognized as an expense when employees have rendered the service entitling them
to the contribution.
Defined Benefit plans are recognised on accural basis. Actuarial gains and losses are identified through
re-measurement process of defined benefit liability and plan assets and recognised as income or
expense in Other Comprehensive Income.
1.8 IND AS 21-Foreign Currency Transactions:
(a) Initial Recognition:
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting curreny and the foreign currency at the
date of the transactions.
(b) Conversion:
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. At the year end, monetary assets and liabilities denominated in
foreign currencies are restated at the year end exchange rates. Non- monetary items, which are
measured in terms of historical cost denominated in a foreign currency, are reported using the
exchange rate at the date of the transactions. Non- monetary items, which are measured at fair
value or others similar valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined.
(c) Exchange Differences:
All exchange differences arising of transactions / settlement of foreign currency monetary items
are recognized as income or as expenses in the period in which they arise, where they relate to
acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.
(c) Foreign exchange Inflow and Outflow:
The Foreign Exchange earned in terms of actual inflows is Rs. 71,08,54,859/- during the year and the
Foreign Exchange outgo is Rs. 3,45,20,90,741/- during the year in terms of actual outflows.
1.9 IND AS 23-Borrowing cost:
Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of
borrowings and foreign exchange differences arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest costs.
Borrowing costs directly attributable to the construction of an qualifying asset that necessarily take
a substantial period of time to get ready for its intended use are capitalized as part of the cost of the
qualifying asset. Qualifying assets are assets that necessarily take a substantial period of time to get ready
for their intended use or sale. All of there borrowing costs are expensed in the period they are incurred.
In accordance with the requirements of IND AS - 24 on Related Party Disclosures, the names of the
related parties where control exists and with whom transactions have taken place during the year and
description of relationships as identified and certified by the management are given below:
Basic earnings per share is computed by dividing the net profit after tax by the weighted average number
of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares considered for deriving basic earnings
per share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
The carrying amounts of the Company's assets are reviewed at each Balance Sheet date if there is
any indication of impairment based on internal/external factors. If any such indication exists, an
impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable
amount. Impairment losses are recognized in the income statement in the period in which the
impairment is identified. At each reporting date, an entity assesses whether there is any indication
that an asset may be impaired.
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