2.12 Provisions, contingent liabilities 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, 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 Liabilities
A contingent liability is disclosed 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
Contingent assets are not recognised in the
financial statements. However, contingent
assets are assessed continually and if it is
virtually certain that an inflow of economic
benefits will arise, the asset and related income
are recognised in the period in which the
change occurs.
2.13 Revenue recognition
i. Revenue from contracts
Revenue from contracts priced on a time and
material basis are recognised as the related
services are rendered and the related costs are
incurred. Revenue from the end of the last
invoicing to the reporting date is recognized as
unbilled revenue.
Revenue from fixed price contracts is
recognised as per the 'percentage of
completon' method, where the performance
obligations are satisfied over time and when
there is no uncertainity as to measurement or
collectability of consideration.
FSTP 0 & M Contracts has been recognized as
revenue as per the Appendix D of Ind As 115.
Unbilled pertains to the contracts where the
Company completed it's performance
obligations and has got unconditional right for
the consideration, but the billing is due
because of the billing cycle.
ii. Revenue from services
Service income is recognised as per the terms
of contracts with the customer, when the
related services are performed and where the
service is rendered but not invoiced on account
of customer end compliances, the same is
recognised as unbilled revenue.
iii. Sale of goods
Revenue from sale of goods is recognised
when the significant risks and rewards of
ownership have been transferred to the buyer,
recovery of the consideration is probable, the
associated costs can be estimated reliably,
there is no continuing effective control or
management involvement with the goods, and
the amount of revenue can be measured
reliably.
Revenue from sale of goods is measured at the
fair value of the consideration received or
receivable, taking into account contractually
defined terms and excluding taxes or duties
collected on behalf of the government.
iv. Interest Income
Interest income is accrued on a time
proportion basis, by reference to the principal
outstanding and effective interest rate
applicable.
2.14 Employee Benefits Expense
i. 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.
ii. Post-Employment Benefits
Defined Contribution Plans
A defined contribution plan is a post-
employment benefit plan under which the
Company pays specified contributions to a
separate entity. The Company's contributions
to defined contribution plans are recognised
as an expense in the Statement of Profit and
Loss during the period in which the employee
renders the related service.
Defined Benefit Plans
The liability in respect of gratuity benefit is
determined using the Projected Unit Credit
Method based on acturiai valuation, performed
by an independent qualified actuary.
Re-measurement of defined benefit plans in
respect of post-employment are charged to the
Other Comprehensive income.
2.15 Finance cost
Borrowing costs that are directly attributable to
the acquisition or construction of qualifying
assets, which are assets that necessarily take
a substantial period of time to get ready for
their intended use or sale are capitalized as
part of the cost of such assets.
AH other borrowing costs are charged to the
statement of profit and loss for which they are
incurred.
2.16 Foreign currencies transactions and
translation
Transactions in foreign currencies are recorded
at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities
denominated in foreign currencies are
translated at the functional currency closing
rates of exchange at the reporting date.
Exchange differences arising on settlement or
translation of monetary items are recognised in
Statement of Profit and Loss except to the
extent of exchange differences which are
regarded as an adjustment to interest costs on
foreign currency borrowings that are directly
attributable to the acquisition or construction
of qualifying assets, are capitalized as cost of
assets.
Non-Monetary items thar are measured in
terms of historical cost in a foreign currency
are recorded using the exchange rates at the
date of transaction.
2.17 Tax Expenses
The tax expense for the period comprises
current and deferred tax. Tax expense is
recognised in Statement of Profit and Loss,
except to the extent that it relates to items
recognised in the comprehensive income or in
equity, in which case, the tax is also recognised
in other comprehensive income or equity.
Current tax
Current tax is the expected tax payable on the
taxable income for the year, using tax rates
enacted or substantively enacted at the
reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax
Deferred tax is recognised using the balance
sheet method on temporary differences
between the carrying amounts of assets and
liabilities in the financial statements and the
corresponding amounts used in the
computation of taxable profit.
Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply to
the temporary differences in the period in
which the liability is settled or the asset
realised, based on tax laws that have been
enacted or substantively enacted by the end of
the reporting period.
A deferred tax asset is recognised to the extent
that it is probable that future taxable profits will
be available against which the temporary
difference can be utilised. Deferred tax assets
are reviewed at each reporting date and are
reduced to the extent that it is no longer
probable that the related tax benefit will be
realised.
2.18 Leases
The Company assesses at contract inception
whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control
the use of an identified asset for a period of
time in exchange for consideration.
The Company applies a single recognition and
measurement approach for all leases, except
for shrot-term leases and leases of low-value
assets. The Company recognises lease
liabilities to make lease payments and right of
use assets representing the right to use the
underlying assets.
i. Right-to-use assets
The Company recognises right of use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right of use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of
lease liabilities The cost of right of use assets
includes the amount of lease liabilities
recognised, initial direct costs incurred, and
lease payments made at or before the
commencement date less any lease incentives
received. Right of use assets are depreciated
on a straight line basis ove the shorter of the
lease term and the estimated useful lives of the
assets. If ownership of the leased asset
transfers to the Company at the end of the
lease term or the cost reflects the exercise of a
purchase option, depreciation is calculated
using the estimated useful life of the asset.
The right of use assets are also subject to
impairment
ii. Lease Liabilities
At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to be
made over the lease term. The lease payments
include fixed payments (Including in substance
fixed payments) less any lease incentives
receivables, variable lease payments that
depend on an index or a rate, and amounts
expected to be paid under residual value
guarantees. The lease payments also include
the excercise price of a purchase option
reasonably certain to be excercised by the
Company and payments of penalties for
terminating the lease. If the lease term reflects
the Company excercising the option to
terminate. Variable lease payments that do not
depend on an index or a rate are recognised as
expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.
In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a
modification, a change in the lease term, a
change in the lease payments (e.g., changes to
future payments resulting from a change in an
index or rate used to determine such lease
payments ) or a change in the assessment of
an option to purchase the underlying asset.
iii. Short-term leases and leases of low-
value assets
The Company applies the short-term lease
recognition exemption to its short term leases
of office premises (i.e those leases that have a
lease term of 12 months or less form the
commencement date and do not contain a
purchase option). It also applies the lease of
low-value assets recognition exemption to
leases of office premises that are considered to
be low value. Lease payments on short-term
leases and leases of low-value assets are
recognised as expense on a straight line basis
over the lease term.
2.19 Earnings per share
The Company presents basic and diluted
earnings per share (“EPS") data for its ordinary
shares. Basic EPS is calculated by dividing the
profit or loss attributable to ordinary
shareholders of the Company by the weighted
average number of ordinary shares
outstanding during the period.
Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary
shareholders and the weighted average
number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares
except where the result would be anti dilutive.
2.20 Statement of Cash flows
Statement of Cash flows is prepared in
accordance with the indirect method
prescribed in Ind As- 7 Statement of
Cashflows.
Repayment terms and security details
1. Secured Loans
From NBFC
a. Tranche i of ECB loan is repayable in 5 years and carrying interest rate of 10.40% pa . Tranche ii of
ECB loan is repayable in 4 years and carrying interest rate of 9.50% pa. ECB loan is secured by (1)
hypothecation (Exclusive first charge) of Plant & Equipment at each of the 4 manufacturing plants
owned or leased by the Company, (2) All receivables of Andhra Pradesh FSM Package and the
Telangana FSM Package and (3) Personal Guarantees from Mrs. Namita Sanjay Banka, Managing
director & Mr. Sanjay Banka, Chairman and whole-time director.
b. Unlisted, Unrated, Secured, Redeemable Non-Convertible Debentures (NCDs) issues on a private
placement basis to the tune of Rs.430 lacs is repayable in 3 years and carrying interest rate of 4.20 %
pa over the India 10-Year Bond Yield. Loan principal will be repaid in three instalments at the end of
30 months (12.5%), 33 months (12.5%) and 36 months (75%). Secured with hypothecation of plant
and machinery of the STP plant at MyFlome Vihanga, Flyderabad, Present and future receivables
pertaining to the STP plant at MyFlome Vihanga, Flyderabad, and Present and future current assets
pertaining to STP business. Personal guarantees from Mr. Sanjay Banka, Ms. Namita Banka and Mr.
Vishal Murarka for all obligations under the facility.
c. Vehicle/Equipment loans is carrying an interest rate of 8.75%.
From Banks
a. Cash Credit facility of Rs.1500 lacs is for one year and repayable on demand and carrying interest
rate of EBLR 0.05% pa. The facility is secured by hypothecation of Stock & Book debts (1st
paripassu charge), pari passu first charge on movable fixed assets (excluding those funded by term
loan) exclusive charge on land & buildings situated in plot No.16 & 17 MSME, ibrahimpatnam,
exclusive charge on office building of the company located at Lakdi-ka-pool, exclusive charge on the
residential property of Mrs. Namita Banka, located at Lakdi-ka-pool and personal guarantees of Mr.
Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr. Vishal Murarka, CEO
and Executive Director, Mr. Akhilesh Tripathi Director.
b. Cash Credit facility of Rs.300 lacs from Bank is for one year and repayable on demand and carrying
interest rate of 9.80% pa. The loan is secured by hypothecation of Stock & Book debts (1st
paripassu charge), exclusive charge on industrial Land of the company located Aler and personal
guarantees of Mr. Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr.
Vishal Murarka, CEO and Executive Director and Mr. Akhilesh Tripathi Director.
c. Vehicle/Equipment loans from Bank is carrying an interest rate of 8.75% to 10.01 % pa.
2. Unsecured Loans
From Banks
a. Unsecured loans from Banks under Emergency Credit Guarantee Scheme carrying interest rate
ranging from 8.25% pa to 9.25% pa.
b. The company has utilised the loans borrowed during the year for the purpose for which it is obtained
as mentioned in the borrowing agreements.
c. There has been no default in repayment of any of the loans or interest thereon as at the end of the
year.
d. The company is not declared as a willful defaulter..
a. Defined contribution plan
Eligible employees of the Company receive benefits from a provident fund, which is a defined
contribution plan. The Company has no further obligations under the plan beyond its monthly
contributions. The Company contributed Rs.2,03,21,630/- (Previous year Rs. 1,87,72,775/-) towards
provident fund plan during the year ended 31 March 2025.
b. Defined Benefit Plan
Gratuity Plan
The Company provides for gratuity, a defined benefit plan ("Gratuity Plan") covering eligible employees.
The Gratuity Plan provides a lump sum gratuity payment to eligible employees of the company on
superannuation, death and permanent disablement . The amount of the payment is based on the
respective employee's last drawn salary and the years of employment with the Company.
The following table sets out funded status of the gratuity plan and the amounts recognised in the
Company's financial statements as at 31 March, 2025.
b. Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for as at
March 31,2025 is 19.06 lacs (March 31,2024 is Nil)
41. Capital Management
The company manages its capital to ensure that it will be able to continue as going concern while
creating value for share holders by facilitating the meeting of long term and short term goals of the
Company.
The company determines the amount of capital required on the basis of annual business plan coupled
long term and short term strategic investment and expansion plans.
The company monitors the capital by using net debt equity ratio. For this purpose, adjusted net debt is
defined as total debt less cash and bank balances.
As per the assessment undertaken by CODM, the aiiocation of resources and assessment of the
financial performance is undertaken at the company level. The Company has only one reportable
business segment, which is manufacturing, supplying and installation of Bio toilets and related AMOC
services. Accordingly, the amounts appearing in the financial statements relate to the Company's single
business segment
in course of its business, the company is exposed to certain financial risk such as market risk, credit risk
and liquidity risk that could have significant influence on the company's business and
operationai/financiai performance. The Board of directors and the Audit Committee reviews and
approves risk management framework and policies for managing these risks and monitor suitable
mitigating actions taken by the management to minimize potential adverse effects and achieve greater
predictability to earnings.
a. Credit risk
Credit Risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the company. The Company has a prudent and conservative process for managing its
credit risk raising in the course of its business activities. Credit risk is managed through continuously
monitoring the creditworthiness of customers and obtaining sufficient collateral, where appropriate, a
means of mitigating the risk of financial loss from defaults.
The company makes an allowance for doubtful debts/advances using expected credit loss model.
b. Liquidity risk
Liquidity Risk refers to the risk that the company will not be able to meet its financial obligations as they
become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risk to the Company's reputation.
The company has obtained fund and non fund based working capital loans from bank .The borrowed
funds are generally applied for company's own operational activities. The company manages the liquidity
and fund requirements for its day to day operations like working capital, suppliers /buyers credit.
d. Exchange rate risk
The company has no foreign operations and also ail the foreign payments are made in advance. Hence
the company is not exposed to exchange rate risk.
e. Interest rate risk
interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value
interest rate risk is the risk changes in fair values of fixed interest bearing investments because of
fluctuations in the interest rates. The company's exposure to the risk of changes in the market interest
rate relates primarily to the company's long term debt obligations with floating interest rates. The
company's interest rate exposure is mainly related to variable interest rates debt obligations.
The Company manages the interest rate risks by entering into different kinds of loan arrangements with
varied terms (e.g. fixed rate loans, floating rate loans, rupee term loans, etc.).
c. Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from
adverse changes in market rates and prices such as commodity prices, foreign currency exchange rates
and other market changes.
The Board of Directors are responsible for setting up of policies and procedures to manage market risks.
i. The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.
ii. The Company does not have any transactions with struck off companies.
iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period,
iv. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year
v. The Company has 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
vi. The Company has not received any fund 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,
vii. The Company has not entered in to any transaction which is not recorded in the books of 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).
viii. The Company has not been declared as wilful defaulter by any bank or financial institution or other
lender.
ix. The Company has complied with the number of layers prescribed under clause (87) of section 2 of
the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
x. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013, during the year.
48. The code of Social Security, 2020 ('Code') relating to employee benefits during employment and
post-employment received Presidential assent in September 2020 and its effective date is yet to be
notified. The Company will assess and record the impact of Code, once its effective.
49. Previous year's figures have been regrouped/ reclassified to conform to those of the current year.
The Financial statement of previous years was audited by a firm of Chartered Accountant other than
B.D. Saboo and Associates, Chartered Accountants.
As per our report of even date attached For and on behalf of Board of Directors of Banka Bioloo Limited
For B.D. Saboo and Associates
Chartered Accountants Sanjay Banka Namita Banka Vishal Murarka
Firm’s Registration No: 003505s Executive Chairman Managing Director CEO & Executive
DIN: 06732600 DIN: 05017358 Director
DIN:06729485
Shyam Sundar Modani
Partner |_vn Padmanabham Nitika Lakhotia
Membership No: 213530 Chief Financial Officer (CFO) Company Secretary- A61192
Place: Hyderabad
Date: May 28, 2025
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