2.13 Provisions, Contingent liabilities and Contingent assets
A provision is recognized, if as a result of a past event, the company has a present legal obligation that
is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by the best estimate of the likely future outflow of economic
benefits required to settle the obligation at the reporting date.
Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for
a contingent liability is also made when there is a possible obligation or a present obligation that may
but probably will not require an outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure
is made.
Contingent assets are neither recognized nor disclosed in the financial statements.
However, Contingent assets are assessed regularly and when it becomes reasonably certain that inflow
of economic benefit will arise then same is recognised in books of accounts.
2.14 Contingencies and events occurring after the balance sheet date
Events that occur between balance sheet date and date on which these are approved, might suggest
the requirement for and adjustment(s) to the assets and the liabilities as at balance sheet date or might
need disclosure. Adjustments are required to assets and liabilities for events which occur after balance
sheet date which offer added information substantially affecting the determination of the amounts which
relates to the conditions that existed at balance sheet date.
2.15 Impairment of Assets
An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. The recoverable
amount is measured as the higher of the net selling price and the value in use determined by the present
value of estimated future cash flows. An impairment loss is charged off to profit and loss account as
and when asset is identified for impairment. The impairment loss recognized in prior accounting period
is reversed if there has been a change in the estimate of recoverable amount. An asset is treated
as impaired when carrying cost of assets exceeds its recoverable value. The recoverable amount is
measured as the higher of the net selling price and the value in use determined by the present value of
estimated future cash flow.
2.16 Foreign Currency Transactions
a. Initial Recognition:
Foreign currency transactions are recorded in the reporting currency by applying the exchange rate
between the reporting currency and the foreign currency at the date of transaction.
b. Conversion:
Foreign currency monetary items are reported using the closing rate.
c. Exchange Difference:
Exchange differences arising on the settlement of monetary items at rates different from those at
which they are initially recorded during the year or reported in previous financial statement are
recognized as income or as expenses at the end of the year by applying closing rate.
2.17 Earnings per Share
Basic earnings per share is calculated 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 net 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 shares that could have been issued upon
conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted for the proceeds receivable had the shares actually been
issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity
shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented.
In case of bonus issue the weighted average number of equity shares outstanding during the period and
for all periods presented should be adjusted for events, other than the conversion of potential equity
shares, that have changed the number of equity shares outstanding, without a corresponding change in
resources.
The company presents basic and diluted earnings per share in accordance with AS 20.
2.18 Government Grants:
Government grants are recognized when there is reasonable assurance that the company will comply
with the conditions attached to them and the grants will be received.
Government grants whose primary conditions that company should purchase, construct or oth¬
erwise acquired capital assets are presented by deducting them from carrying value of assets.
Grants related to the revenue are adjusted against expenses to the extent there is certainty to
receive.
Primary Security
Hypothecation of entire current assets of the borrower,both present and future on exclusive basis.
Collateral Security
Factory land and building Situated at Block No. 176P, 197 & 198, Shrinath Ind Estate, Vill Sampa,
Dehgam and Land Situated at Khata Number 466, Survey No 174, 175 and 175(3), Vill sampa, Deh-
gam. Hypothication of Entire Plant and Machinery of the borrower both present and future.
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,
Mr. Balkishan Shah,Mrs. Savita Shah and Mr. Yash Shah.
2- HDFC Bank
Auto Loan
The vehicle loans from banks are secured by hypothecation of vehicle purchased.
3- Kotak Mahindra Bank
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk¬
ishan Shah,Mrs. Savita Shah and Mr.Yash Shah.
4- Bajaj Finance
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk¬
ishan Shah,Mrs. Savita Shah and Mr.Yash Shah.
Primary Security
Facility provided by joint letter in favour of Bajajj Finance Limited(BFL) duly accepted By Minda Corp
and Aurangabad Electricals Limited and cash flows to be routed directly to BFL.
5- HSBC
Securities
Exclusive charge by way of Recourse on Receivable discounted by HSBC. (Recourse on Company)
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,
Mr. Balkishan Shah,Savita Shah,Yash Shah,Ayushi Shah and Savitaben Shah.
6-Federal Bank
Auto Loan
The vehicle loans from banks are secured by hypothecation of vehicle purchased.
Primary Security
First pari passu cahrge by way of Hypothetication on Current assets of the borrower,both present and
future for CASH CREDIT.Exclusive charge on plant and machines and movable fixed assets which are
purchased out of term loan sanctioned by The Federal Bank Ltd for TERM LOAN.
Collateral Security
First pari passu charge on factory land and building created out of term loan sanctioned by the Feder¬
al Bank Ltd. And Situated at Block No. 176P, 197 & 198, Shrinath Ind Estate, Vill Sampa, Dehgam.
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk¬
ishan Shah and Mr. Yash Shah.
Term Loan
The repayment term of loan is 60 Months Including Moratorium period of 6 Months. The Company has
taken last disburshment in April-2025 and the repayment schedule yet not decided.
Primary Security
First Pari Passu charge on plant and machines and movable fixed assets which are purchased out of
term loan sanctioned by The federal Bank Ltd.
Pari passu charge on factory building created out of term loan sanctioned by our bank and situated at
block no. 261,283 and 284 (Old block no. 176
Paiki 6,197 & 198), Shrinath Ind Estate,Vill Sampa,Dehgam,Dist Gandhinagar having total land area
of around 30290 sq. mtr. Owned by M/S Baheti
Recycling Industries Limited
Collateral Security
First Pari Passu charge on factory building created out of term loan sanctioned by our bank and situ¬
ated at block no. 261,283 and 284 (Old block no.
176 ,Paiki 6,197 & 198), Shrinath Ind Estate,Vill Sampa,Dehgam,Dist Gandhinagar having total land
area of around 30290 sq. mtr. Owned by M/S Baheti
Recycling Industries Limited.
Land situated at block no.253,251 and 255(old block no. 175 paiki,174 paiki 1 and 175 paiki 3),Vil-
lage Sampa,Sub District Dehgam, Dist. Gandhinagar
owned by M/S Baheti Recycling Industries Limited.
Axis bank has extended ECLGS and already enjoys second charge on existing primary and collateral
security except guarantees which shall continue.
Additional Shed created in last 12 mths adjacent to existing building structure collateral coverage
shall be maintained at minimum at 28 %
throughout the loan.
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk-
ishan Shah and Mr. Yash Shah.
7- Capsave Financial Private Limited
Securities
Cash collateral to the extent of 5% of the sanctioned amount in the form of a non-interest bearing
Security deposit.
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk-
ishan Shah and Mr.Yash Shah.
8- OXYZO Financial Service Limited
Securities
There is no any Security provided to OXYZO Financial Services Limited.
Personal Guarantee
There is no any Guarantee provided to OXYZO Financial Services Limited.
9- Ratnaafin Capital Private Limited
Personal Guarantee
All the above facilities have been secured against personal guarantee of Mr. Shankerlal Shah,Mr. Balk-
ishan Shah and Mr.Yash Shah.
Note: The Disclosure in respect of the amounts payable to Micro and Small Enterprises have been made
in the financial statements based on the information received and available with the Company. Further
in view of the Management, the impact of interest, if any, that may be payable in accordance with the
provisions of the Act is not expected to be material. The Company has not received any claim for interest
from any supplier as at the balance sheet date. These facts have been relied upon by the auditors.
30.4:
The company is operating only one business segment. Further, company primarily operates in India.
Therefore, no further information required to disclose as per "Accounting Standard-17-Segment Reporting.
30.5:
Previous year figures have been regrouped and rearranged wherever considered necessary.
30.6:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other resources or kind of funds)by the company to or in any other persons or entities, including
foreign entities("Intermediaries") with the understanding whether recorded in writing or otherwise that
the intermediary shall directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever (Ultimate beneficiaries) by or on behalf of the company or provide any guarantee,
security or the like on behalf of the Ultimate beneficiaries.
No funds have been received by the company from any persons or entities, including foreign entities
("Funding Parties") with the understanding whether recorded in writing or otherwise that the company
shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
("Ultimate Beneficiaries") by or on behalf of the funding parties or provide any guarantee, security or the
like from or on behalf of the Ultimate beneficiaries.
30.7:
The company has not entered any transactions with struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act,1956.
30.8:
There is no scheme of arrangements that has been approved in terms of section 230 to 237 of Companies
act,2013.
30.9:
There are no transactions that are not recorded in the books of account to be surrendered or disclosed
as income during the year in the tax assessments under the income tax act,1961.
30.10. Corporate Social Responsibility:
In compliance with the section 135 of Companies act,2013, the company has already spent amount of
Rs.15.00 lakhs towards CSR expenditure.
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
30.12:
No proceedings have been initiated or pending against the company for holding any benami property
under the benami transactions (prohibition) act,1988 (45 of 1988) and the rules made thereunder.
The company is capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date.
30.14:
In the opinion of the board and to the best of its knowledge and belief, the value on realization of current
assets and loans and advances are approximately of the same value as stated. The management has
confirmed that adequate provisions have been made for all the known and determined liabilities and the
same is not in excess of the amounts reasonably required to be provided for. All other contractual liabil¬
ities connected with business operations of the company have been appropriately provided for.
As per our Report of even date, For, Baheti Recycling Industries Limited
Sd/- Sd/-
For, JEEVAN JAGETIYA & CO Yash Shankerlal Shah Balkishan S. Shah
Chartered Accountants DIN: 09527701 DIN: - 03006486
FRN: - 121335W (Managing Director) (Managing Director)
Sd/- Sd/- Sd/-
Jeevan Jagetiya Mansi Darji Manoj Kumar Shah
Partner M No. A58172 (Chief Financial Officer)
Membership No: - 046553 (Company Secretary)
UDIN:25046553BMKQGU2846
Date: 05th May, 2025
Place: Ahmedabad
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