•Loan accounts with HDFC Bank Limited is secured by primary security of Stock, Plant and machineries. Collateral charge on Land Situated at Survey no 108/1, Block Survey no 166/167.Village Mandali, District- Mahesana. Gujarat along with Factory Building of the company Also secured by general form of guarantee by the Director Mr. Parth Rashmikant Patel, Mr. Rashmikant Haribhai Patel and Mrs. Manjulaben Rashmikant Patel.
* HDFC Bank (GECL Loan) - Guaranteed Emergency Credit Line (GECL) is sanctioned in terms of Government of India, by way of Working Capital Term Loan. The facility is covered by' 100% Guarantee from NCGTC (National Credit Guarantee Trustee Company Limited (Ministry of Finance, Government of India) and is Guaranteed by Director Mr. Parth Rashmikant Patel, Mr, Rashmikant Haribhai Patel and Mrs Manjulaben Rashmikant Patel .The total tenor of loan is 60 Months with 24 months of moratorium period Furthermore, the loan is secured by way of extension of second ranking charge over existing primary and collateral, securities including mortgages created in favor of the Bank namely, Stock, Plant and machineries. Collateral charge on Land Situated at Survey no 108/1, Block Survey no 166/167.ViUage Mandali District- Mahesana, Gujarat along with Factory Building of the company.
* Loan accounts with Kotak Bank Limited is secured by First and pari passu hypothecation charge on all existing and future current assets/ moveable assets / moveable fixed assets of the company, to be shared with HDFC Bank.
First and exclusive registered mortgage charge on below immovable properties
- Plot No 151,152,162,163, Mehsana GIDC.Near Adarsh Agro Foods, Modhera Road, Mehsana, Gujarat 384002 owned by Equipments Ltd and by way of personal guarantee/s by the Director Mr. Parth Rashmikant Patel, Mr Rashmikant 11 a ribhaj..PatjL» (p \\
Manjulaben Rashmikant Patel and by way of Corporate guarantee/s of Apollo Techno Equipments Ltd. l/~~:/ \ /-A Vt
•Loan taken from related parties and corporates is payable on demand. 1*11
l * CUM- I col
•Cash Credit Account with HDFC Bank Limited is secured by primary security of Stock, Plant and machineries. Collateral charge on Land Situated at Survey no 108/1, Block Survey no 166/167 Village Mandali, District- Mahesana, Gujarat along with Factory Building of the company Also secured by general form of guarantee by the Director Mr. Parth Rashmikant Patel, Mr Rashmikant Haribhai Patel and Mrs. Maniulaben Rashmikant Patel.
* Loan accounts with Kotak Bank Limited is secured by First and pari passu hypothecation charge on all existing and future current assets/
moveable assets / moveable fixed assets of the company, to be shared with HDFC Bank.
First and exclusive registered mortgage charge on below immovable properties.
- Plot No 151,152.162,163, Mehsana GIDC.Near Adarsh Agro Foods, Modhera Road, Mehsana, Gujarat 384002 owned by Apollo Techno Equipments Ltd and by way of personal guarantee/s by the Director Mr. Parth Rashmikant Patel Mr. Rashmikant Haribhai Patel and Mrs. Manjulaben Rashmikant Patel and by way of Corporate guarantee/s of Apollo Techno Equipments Ltd
36. Employee Benefits Expenses as per IND AS - 19 :
Defined Contribution Plan - Provident Fund
Contributions to Defined Contribution Plans are recognised as expense when employees have rendered services entitling them to such benefits.
The Company has contributed an amount of ? 3,332.94 /- (Year 2023 - 24 : ? 3,000.57/-) towards provident fund during the year, which has been charged to the statement of profit and loss.
Defined Benefit Plan - Gratuity
The Company operates one Defined Benefit Plan, viz., Gratuity Benefit, for its employees. The Gratuity Plan provides tor a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary payable for each completed year of service as per the Payment of Gratuity Act.
I he entity has a defined benefit gratuity plan in India (funded). The entity's defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.
The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.
The Company has maintained a Group Gratuity Scheme for the benefit of its employees, which is funded through a Group Gratuity Insurance Policy issued by the Life Insurance Corporation of India (LIC).
Up to the financial year ended March 31, 2024, the provision for gratuity was made based on the actuarial assumptions and rates used by LIC's appointed actuary. The Company relied on the premium amount as communicated by LIC under the Group Gratuity Scheme as a basis for estimating the gratuity liability. This approach, while providing a general estimate, was limited in its ability to reflect the Company's specific employee profile, salary structure, and demographic assumptions.
From tlie financial year 2024-25 onwards, the Company has revised its methodology for recognizing gratuity liability. The provision is now made based on an independent actuarial valuation conducted by a qualified actuary, in accordance with the principles of Ind AS 19, as applicable. This change in estimation technique involves the use of more refined and entity-specific actuarial assumptions including discount rate, salary escalation, attrition rate, and mortality assumptions, diereby enabling a more accurate and fair representarion of the Company's gratuity obligation.
This transition provides enhanced transparency and improves the alignment of the CompaiVs financial reporting with best practices and regulatory guidance. It may result in variations in the as compared to prior years.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, vvMcfipftftesSame method as applied in calculating the Defined Benefit Obligation as recognised in the balance sfltet.
Gratuity is a defined benefit plan and entity is exposed to the Following Kisks: of the assets depending on the duration of asset.
ecu Rlsk. The present value of the defined benefit plan liability is calculated by reference to the future salaries of membens.^As s'u c h a n increase in the salary of the members more than assumed level wdl tncrease the plan s
liability.
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount: rate which fd”d by reference to market yields a, the end of the reporting penod on governm^t tad. If h return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in lndta, it . relatively balanced mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the etching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.
A separate trust fund is created to manage the Gratuity plan and the contribuh^^^flie trust fund is done as guided by rule 103 of Income Tax Rules, 1962
business rep.rbng system end secondary segment is identified based on dte geographical locatton o, dte customers as per MD AS .08 - 'Operating Segments'. The Company is principally engaged in a single business segment viz., 'Heavy Machinery".
““a CompL^f m malefactor. ot Horizontal D.rechona, Drill,„g Machine, Dtaphram Drilhng Rigs and its related moulds Since the Company's business hd„ widdn a single segment of ’Heavy Machinery', the Company has on. primary segment unde, the IND
AS 108 - 'Operating Segments'.
Geographical Segments
The geographical segment has been considered for disclosure as secondary segment.
The Company has disclosed financial instruments such as cash and cash equivalents, other bank balances, trade receivables, loans, other financial assets, borrowings, trade payables and other financial liabilities at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.
47 Financial Risk Management
The Company's activities expose it to market risk, liquidity risk and credit risk.
A) Credit Risk Management:
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in equity instruments, , other balances with banks, loans and other receivables.
Credit risk arising from other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.
Managomon, moniiors rolling forecaais of the Company", liquidity poaibon and caah and cab equivalent, on *0 baa,a of exacted riT addibon theCompany's liquiditymanagement policyinvolves pmiedingcash nowa m ma,o, eunoncoa and rlZ fe ievo, o, liquid JL necessary io moo, iboao. moni.onng balance shee, liquid!,, r.boa agabia, internal and externa,
regulatory requirements and maintaining debt financing plans.
48 Small & Micro Enterprise Disclosure
Under Micro Small Medium Enterprise Act, 2006, A company is required to disclose the details of outstanding payment due to Micro, Small & Medium Enterprise Creditors. As per the information and explanation provided to us and based on verification of details provided ? Nil/- is outstanding as at 31.03.2025 for payment of more than 45 days from the due date of payment.
SO Accounting for Branch
Company have a branch based at Chennai,Uttar Pradesh, Bhopal and KoIkata.Company sends goods to branches by adding certain margin on cost Branches does not maintain any separate books of accounts, goods sent to branch is recorded as sales in companies books and simultaneously the same is recorded as purchase in companies books. Figures of purchase and saleji^asieMi eliminated while preparing financial statements in order to derive actual figures of purchase & sales. Moreover Closing^tq^jolfeoodtflwiig with Branch as on balance sheet date was including Unrealized Profit, hence closing stock is reduced to thettfit/nl of/uArea!fflra\brofit included in closing stock lying with branch by giving necessary treatment in finance module of SAP. 11*1 1211
51 Subsidiary Company
The company has 100 % stake in Apollo Techno Equipment Limited.
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