k) Provisions, contingent liabilities and contingent assets
Provisions represent liabilities for which the amount or timing is uncertain. Provisions are recognized when the
Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is
recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and
are adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognised because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits
is probable.
l) Employee benefit schemes
(i) Short-term employee benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified as
short-term employee benefits. These benefits include salaries and wages, performance incentives and
compensated absences which are expected to occur in next twelve months. The undiscounted amount of
short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the
related service is rendered by employees.
(ii) Post-employment benefits
Defined contribution plan
Post employment and other long-term benefits are recognized as an expense in the statement of Profit and
Loss of the year in which the employees has rendered services. The Expense is recognized at the present value
of the amount payable determined using actuarial valuation technique. Actual gain and losses in respect of
post employment and other long term benefits are recognized in the statement of Profit and loss.
Payments to defined contribution retirement benefits schemes are charged as expenses as and when they fall due.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are initially measured at fair value. Transaction costs that are attributable to the acquisition of
the financial assets (other than financial assets at fair value through profit and loss) are added to or deducted from
the fair value measured on initial recognition of financial asset. The transaction costs directly attributable to the
acquisition of financial assets at fair value through profit and loss are immediately recognised in the statement of
profit and loss. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date
that the Company commits to purchase or sale the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories as below:
Debt instruments at amortised cost
A 'debt instrument' is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income
in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and
loss. This category generally applies to trade and other receivables.
Debt instrument at Fair Value through Other Comprehensive Income
A 'debt instrument' is classified as at the FVOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and
b) The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses and reversals and foreign exchange gain or loss in the
statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in
other comprehensive income is reclassified from equity to the statement of profit and loss. Interest earned
whilst holding fair value through other comprehensive income debt instrument is reported as interest income
using the EIR method.
Debt instrument at Fair Value through Profit and Loss
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or
FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as 'accounting mismatch'). The Company has designated its
investments in debt instruments as FVTPL. Debt instruments included within the FVTPL category are measured at
fair value with all changes recognized in the statement of profit and loss.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is
primarily derecognised when the rights to receive cash flows from the asset have expired.
Impairment of financial assets
The Company follows 'simplified approach'as per Ind AS 109 where the company provides for losses based on
lifetime Expected Credit losses at each reporting date right from initial recognition.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of profit
and loss, loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
All financial liabilities are recognised initially at fair value and, in the case of financial liabilities at amortised cost, net
of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial instruments.
Subsequent measurement
Financial Liabilities at Fair Value through Profit and Loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge
relationships as defined by Ind AS 109.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not
subsequently transferred to profit or loss. However, the Company may transfer the cumulative gain or loss within
equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. The Company
has designated forward exchange contracts as at fair value through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Gains and losses are recognised in statement of profit and loss when the liabilities
are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.
n) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and in hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above.
o) Cash dividend distributions to equity holders
The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
p) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss before OCI for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive
potential equity shares.
q) Share-based payment arrangement
Equity-settled share-based payments to employees are measured at the fair value of the equity instruments/ option at
the grant date.
The fair value determined at the grant date of the equity settled share-based payments is expensed on a straight line
basis over the vesting period, based on the Company's estimate of equity instruments that will eventually vest, with a
corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number
of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in
statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding
adjustment to the share options outstanding reserve.
r) Segment Reporting - Identification of Segments
An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are regularly reviewed by the company's chief operating
decision maker to make decisions for which discrete financial information is available. Based on the management
approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company's performance and
allocates resources based on an analysis of various performance indicators by operating segments.
s) Current/Non current classification
An asset is considered as current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle, or
• Expected to be realized within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
All other assets are classified as non-current.
A liability is considered as current when it is:
• Expected to be settled in normal operating cycle, or
• Due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement ofthe liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
t) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities ofthe Company are segregated.
u) Use of estimates and critical accounting judgements
The preparation of the financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of contingent assets and liabilities at the date ofthese financial statements
and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these
estimates under different assumptions and conditions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and future periods affected.
Notes
(I) Security:
Following securities have been provided ranking parripassu between lenders for Rupee Term Loans and ECB along with working Capital
borrowings mentioned in Note no. 19 given hereinafter :
a) First charge by way hypothecation on all the tangible Fixed Assets including moveable plant and machinery, machinery spares, tools
and accessories, Equipment’s, Electrical Installations, furniture, fixtures, vehicles, Office Equipment’s and all other moveable assets,
both present and future
b) First charge by way mortgage on all the Fixed Assets including immovable properties land and building located at (i) Plot no. 1 and
4, Atgaon Industrial Complex, Village: Atgaon, Taluka Shahpur, Mumbai Nasik Road, Dist. Thane, Maharashtra of the company and
(ii) Plot No. 4 at Chalisgaon MIDC, Maharashtra.
c) First charge by way hypothecation on all the current assets including but not limited to stocks of raw materials, work in progress,
semi-finished and finished goods, consumable stores including book debts, bill whether documentary or clean, outstanding monies,
receivables of the Borrower, both present and future;
d) First charge over all accounts, including, the Trust and Retention Account and the Sub-Accounts (or any account in substitution
thereof) and all funds from time to time deposited therein,
e) A first charge by way of pledge of 1,43,98,096 shares of Bharat Wire Ropes Ltd. held by Gyanshankar Investments And Trading
Company Private Limited
f) Personal Guarantees of Managing Director and Jt. Managing Director
g) Corporate Guarantee of Gyanshankar Investment and Trading Company Private Limited.
(ii) Security:
The security is by hypothetication of respective Vehicle
(iii) Repayment Schedule:
Rupee Term Loans ECB are repayable in 46 quarterly structured Instalments commenced from 31-12-20
(iv) Repayment Schedule:
The loan is repayable in 60 equated monthly installments commenced from 05.05.2023.
(v) The Govt. of Maharashtra under Package Scheme of Incentive has extended to the Company, the incentive of sales tax deferral scheme
pursuant to which the sales tax attributable to the sales effected out of production for a period of 8 Years 9 Months from 01.05.2003 to
31.01.2012 is deferred (interest free). The deferred sales tax in respect of above is based upon the sales tax returns. The amount for each year
deferred is payable in 5 equal annual instalments from Financial Year 2014-15 to 2025-26.
31) Financial Risk Management
The Company’s activities expose it to credit risk, liquidity risk and market risk.
(I) Credit risk
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase
in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default
as at the date of initial recognition.
a) Trade receivables
Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Outstanding customer receivables are regularly monitored. The company uses a simplified approach as per Ind AS 109 and an
impairment analysis is performed at each reporting date on an individual basis for significant clients.
(II) Liquidity risk
The Company maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and bank
loans (comprising the undrawn borrowing facilities below) by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
b) Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities for
All non derivative financial liabilities and derivative financial instruments for which the contractual maturities are essential
for an understanding of the timing of the cash flows
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not material.
Note : Explanation for change in ratio by more than 25%
i. Net Profit has reduced on account of reduction net sales realisation, increase in manpower cost and fuel cost.
ii Return on Capital employed reduced on account of reduction in profitability and increase in net worth.
iii Return on equity reduced on account of reduction in profitability
iv Return on Investments variation is on account of movement in share price.
v Current ratio decreased on account of increasse in utilisation of short term borrowings and availment of extra credit from
suppliers to fund increae of current assets.
vi Trade Receivable Turnover ratio variation is on account of increase of debtors at the year end.
46) Additional Regulatory Information Required by Schedule III
i. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made
thereunder.
ii. The company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
iii. The company does not have any transactions with companies struck- off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
iv. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
v. 1. 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
2. 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 group 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 There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
vii The Company have not any such transaction which is not recorded in the books or 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.
47) Previous year's figures have been regrouped or reclassified to conform with the current years' presentation wherever considered
necessary.
As per our report of even date attached
FOR NGS & CO. LLP. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No 119850W
Ashok A. Trivedi Managing Director Whole Time Director Chief Executive °fficer
Partner Murarilal Mittal Sushil Sharda Mahender Singh Arora
Membership No : 042472 DIN: 00010689 DIN: 03117481 PAN : AABPA9704C
Date. 19th May 2025 Chief Financial Officer ComPany Secretary
Date: * ^ 2025 Rakesh Kumar Jain Govinda Soni
place: Mumbai PAN: ABBPJ5834H PAN: CCFPS0647Q
UDIN: 25042472BMGYYX5085
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