j) Provisions, Contingent liabilities and Contingent Assets
Provisions are recognised when there is a present obligation as a result of past events, it is probable that an outflow of resources will
be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present
value and are determined based on the best estimate required to settle the obligation at each Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the best current estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle
or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed
when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non
-occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be
realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.
k) Foreign currency transactions and translations
Items included in the financial statements are measured using the currency of the primary economic environment in which the
company operates (the functional currency). The company's financial statements are presented in Indian rupee (INR), which is also the
company's presentation and financial currency. These financial statements are presented in Indian rupees.
Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates
in effect at the balance sheet date. The gains or losses resulting from such translations are included in net profit in the statement of
profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date
of the transaction.
Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the
period in which the transaction is settled. Revenue, expense and cashflow items denominated in foreign currencies are translated into
the relevant functional currencies using the exchange rate in effect on the date of the transaction.
Forward Exchange Contracts
The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life
of contract. Exchange differences on such contracts except the contracts which are long-term foreign currency monetary items,
are recognised in the statement of profit and loss in the period in which the exchange rates change, any profit and loss arising on
cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.
l) Government Grant
Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will
be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that
the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income
in equal amounts over the expected useful life of the related asset.
When the company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released
to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual
instalments. When loans or similar assistance are provided by governments or related institutions, with an interest rate below the
current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially
recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of
the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.
m) Revenue recognition
With effect from 1 April 2018, the Company has adopted IND AS 115 'Revenue from Contracts with Customers' which introduces a new
five-step approach to measuring and recognising revenue from contracts with customers. Under IND AS 115, revenue is recognised on
satisfaction of performance obligation at an amount that reflects the consideration to which an entity expects to be entitled in exchange
for transferring goods or services to a customer. The Company has elected to apply the Cumulative catch up method in adopting IND
AS 115. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted.
Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related
disclosures. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and can be
reliably measured. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of
transaction and the specifics of each arrangement.
A. Sale of Goods
Revenue is recognized on satisfaction of performance obligation at an amount that reflects the consideration to which the
Company expects to be entitled in exchange for transferring goods to a customer.
B. Interest Income
For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income
is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the management
estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the
expected credit losses. Interest income is included in finance income in the statement of profit and loss.
n) 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.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-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-of-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 over the lease term. 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 receivable, 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 exercise price of a purchase option reasonably certain to be
exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising
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. The Company's lease liabilities are included in Interest-bearing
loans and borrowings
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 Land & building (i.e., those leases
that have a lease term of 12 months or less from 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 equipment 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.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included
in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same.
o) Income Tax
The income tax expense or credit for the year is the tax payable on the current year's taxable income based on the applicable income tax
rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities (including MAT) attributable to temporary differences
and to unused tax losses.
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets and
liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The
effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the year that includes
the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it
intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future
economic benefits in the form of availability of set off against future income tax liability. MAT is recognised as deferred tax assets in the
Balance Sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset
will be realised.
p) Cash flow statement
Cash flows are reported using the indirect method, whereby profit for the year 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 of the Company are segregated.
q) Financial instruments
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.
Financial Assets
Initial Recognition
All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially
measured at transaction price. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income
("FVOQ") or fair value through profit or loss ("FVTPL") on the basis of following:
• entity's business model for managing the financial assets and
• contractual cash flow characteristics of the financial asset.
Debt Instruments
Amortised Cost
A financial asset is subsequently measured at amortise cost, if the financial asset is held within a business model, whose objective is to
hold the asset in order to collect contractual cash flow and the contractual term of financial asset give rise on specified date to cash flow
that are solely payment of principal and interest on principal amount outstanding.
Fair Value through Other Comprehensive Income
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting
contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other
comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured
using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On derecognition, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to 'other income' in the Statement of Profit and Loss.
Fair Value through Profit or Loss
A financial asset is classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
through OCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
classification of the financial assets.
Financial Liabilities
Initial Recognition
Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit
and loss. In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost,
using the effective interest method.
Classification and Subsequent Measurement: Financial liabilities
Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through
profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. The Company
recognises a loss allowance for expected credit losses on financial asset. In case of trade receivables, the Company follows the simplified
approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The application of simplified
approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade
receivables using a provision matrix on the basis of its historical credit loss experience.
Derecognition of financial instruments
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers
the contractual rights to receive the cash flows from the asset. A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled or expires.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
r) Fair value measurements
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
• In the principal market for the asset or liability. Or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
Categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole;
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
s) Employee benefits
Defined contributions plan
Contributions to defined contribution schemes such as employees' state insurance, labour welfare fund, employees provident fund,
employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when
services are rendered by the employees. Company's provident fund contribution, in respect of certain employees, is made to a
government administered fund and charged as an expense to the Statement of Profit and Loss. The above benefits are classified as
Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.
Defined benefit plans
The Company's Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end of each
financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement
procedure as per Indian Accounting Standard (Ind AS) -19., 'Employee Benefits' The gratuity liability is covered through a policy taken
by a trust established under the group gratuity scheme with Life Insurance Corporation of India (LIC). The costs of providing benefits
under these plans are also determined on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined
benefit plans are recognized through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in
subsequent periods.
The Defined Benefit Plan can be short term or Long terms which are defined below:
(i) Short term Employee benefit
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service are recognised in respect of employees' services up to the
end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities
are presented as current employee benefits obligations in the balance sheet.
(ii) Long term Employee benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the employee
renders the related services are recognized as a liability at the present value of the defined benefit obligation at the balance sheet
date.
t) Segment reporting
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 business segments and geographic segments. The Company has two business segments i.e. manufacturing of Aluminium Extruded
products and manufacturing of Transmission and Distribution Line as per the management. However, as per the Ind AS- 108 "Operating
segments" specified under Section 133 of the Companies Act, 2013, there are no reportable operating or geographical segments
applicable to the Company.
u) Borrowings
Borrowings are measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using effective interest method. Fees paid on the establishment
of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will
be drawn down. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is
capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at
least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before
the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does
not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for
issue, not to demand payment as a consequence of the breach.
v) Earnings per share
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company
by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of
potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
w) Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting period.
The resulting gains / losses is recognised in the Statement of Profit and Loss immediately unless the derivative is designated and
effective as a hedging instrument, in which event the timing of recognition in profit or loss / inclusion in the initial cost of non-financial
asset depends on the nature of the hedging relationship and the nature of the hedged item.
The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge instruments. At
the inception of the hedge relationship, the Company documents the relationship between the hedge instrument and the hedged
item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge
or a cash flow hedge.
a) Fair value hedges -
Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss
immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The change in the fair value of the designated portion of hedging instrument and the change in fair value of the hedged item
attributable to the hedged risk are recognised in the Statement of Profit and Loss in the line item relating to the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer
qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk
is amortised to profit or loss from that date.
b) Cash flow hedges -
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised
in the other comprehensive income. The gains / losses relating to the ineffective portion is recognised in the Statement of Profit
and Loss.
Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the
hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a non¬
financial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included in the initial
measurement cost of the non-financial asset.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is reclassified when the underlying transaction is ultimately recognised. When an underlying
transaction is no longer expected to occur, the gains / losses accumulated in equity is recognised immediately in the Statement
of Profit and Loss.
a) The Company has neither issued nor bought back any shares during the financial year under review, hence there is no change in
number of shares outstanding at the beginning and end of the year.
b) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/
Associates.
c) There are NIL (Previous year NIL) shares reserved for issue under option and contracts / commitment for the sale of shares/
disinvestment.
d) During the period of five years immediately preceding the reporting date: No shares were bought back.No shares were issued for
consideration other than cash. No bonus shares were issued.
e) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.
f) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.
g) There are NIL (Previous year NIL) for forfeited shares as on the balance sheet date.
h) Rights/Preferences/Restrictions attached to Equity Shares
The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity shares is entitled to one
vote per share and the dividend, if proposed by the Board of Directors and approved by the Shareholder in the ensuring Annual
General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of
equity shares held by the shareholders.
(i) Nature of security for Secured Borrowings
a. Guarantee Emergency Credit Line (GECL) loan of Rs. 37 lacs includes Rs.37 lacs shown in Current maturities of Long Term
Borrowings from Punjab and Sind Bank to meet Working Capital requirement under COVID-19 situation with Existing Primary and
Collateral Security but excluding Personal/Corporate Guarantees.
b. Guarantee Emergency Credit Line (GECL) loan of Rs. 105 lacs includes Rs.105 lacs shown in Current maturities of Long Term
Borrowings from SBI Bank to meet Working Capital Term Loan(WCTL) requirement under COVID-19 situation with Existing Primary
and Collateral Security but excluding Personal/Corporate Guarantees.
c. Vehicle loans from banks are secured, in respect of respective facilities by way of Rs. 27 lacs includes Rs.6 lacs shown in Current
maturities of Long Term Borrowings from Punjab National are secured by hypothecation of vehicles purchased out of the said
loan.
Term loans from banks as on 31.03.2025 are secured, in respect of respective facilities by way of :
(i) Nature of security for Secured Borrowings
a. Guarantee Emergency Credit Line (GECL) loan of Rs. 39 lacs includes Rs.22 lacs shown in Current maturities of Long Term
Borrowings from Punjab and Sind Bank to meet Working Capital requirement under COVID-19 situation with Existing Primary and
Collateral Security but excluding Personal/Corporate Guarantees.
b. Guarantee Emergency Credit Line (GECL) loan of Rs. 17 lacs includes Rs. 17 lacs shown in Current maturities of Long Term
Borrowings from Axis bank to meet Working Capital Term Loan(WCTL) requirement under COVID-19 situation with Existing
Primary and Collateral Security but excluding Personal/Corporate Guarantees.
c. Guarantee Emergency Credit Line (GECL) loan of Rs. 16 lacs includes Rs.16 lacs shown in Current maturities of Long Term
Borrowings from Punjab National Bank to meet Working Capital requirement under COVID-19 situation with Existing Primary and
Collateral Security but excluding Personal/Corporate Guarantees.
d. Guarantee Emergency Credit Line (GECL) loan of Rs. 93 lacs includes Rs.56 lacs shown in Current maturities of Long Term
Borrowings from Punjab National Bank to meet Working Capital requirement under COVID-19 situation with Existing Primary and
Collateral Security but excluding Personal/Corporate Guarantees.
e. Guarantee Emergency Credit Line (GECL) loan of Rs. 246 lacs includes Rs.140 lacs shown in Current maturities of Long Term
Borrowings from SBI Bank to meet Working Capital Term Loan(WCTL) requirement under COVID-19 situation with Existing Primary
and Collateral Security but excluding Personal/Corporate Guarantees.
f. Vehicle loans from banks are secured, in respect of respective facilities by way of Rs. 32 lacs includes Rs.6 lacs shown in Current
maturities of Long Term Borrowings from Punjab National are secured by hypothecation of vehicles purchased out of the said
loan.
1. Security disclosure for the outstanding short-term borrowings as on 31 March 2026 :
Borrowings from banks are secured, in respect of respective facilities by way of :
a. Working Capital Loan from State Bank of India, Dhanlaxmi Bank, Bandhan Bank and Punjab National Bank is secured by way
of - i) First charge on of stock and receivables, Pledged of Fixed Deposit of Rs. 40 Lacs and all other current assets of the
Company, present and future on pari-passu basis among consortium Bankers. ii) First charge on entire fixed assets of the
Company on pari-passu basis among consortium Bankers. iii) By personal guarantees of the Chairman & Managing Director.
b. Security for Current Maturity of Long Term Debts- Refer Security stated in Notes 17.
2. Security disclosure for the outstanding short-term borrowings as on 31 March 2025 :
Borrowings from banks are secured, in respect of respective facilities by way of :
a. Working Capital Loan from State Bank of India, Axis Bank, Dhanlaxmi Bank and Punjab National Bank is secured by way of - i)
First charge on of stock and receivables, Pledged of Fixed Deposit of Rs. 40 Lacs and all other current assets of the Company,
present and future on pari-passu basis among consortium Bankers. ii) First charge on entire fixed assets of the Company on pari-
passu basis among consortium Bankers after reducing Punjab and Sind Bank share. iii) by personal guarantees of the Chairman &
Managing Director.
b. Security for Current Maturity of Long Term Debts- Refer Security stated in Notes 20.
Note No. 35 Material Accounting Judgements, Estimates and Assumptions
The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Judgements : In the process of applying the Company's accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the financial statements:
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active markets, their fair value is measured using other valuation techniques. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair
value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales
transactions, conducted at arm's length, for similar assets or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include
restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset's performance
of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes.
Note No. 36 Commitments & Contingent Liabilities
(A) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for:
At 31st March 2026, the Company had commitments of relating to estimated amount of completion of Property, Plant & Equipment-
(a) Bank Guarantees outstanding Rs.314 lacs (previous year Rs.427 lacs) and Letters of Credit issued by Banks on behalf of the Company
Rs. 1300 Lacs (Previous year Rs. 1497 lacs) against which Rs. 499 lacs (previous year Rs. 540 lacs) have been deposited with the Banks as
Margin Money.
(b) The Employees State Insurance Corporation (ESI) has raised a demand of Rs.3 lacs plus interest of Rs. Nil Lac (Rs. 108.81) per day w.e.f.
1.1.2004 for the period 1999-2000 to 2000-2001. The company has preferred an appeal against the demand at the Employees Insurance
Court, West Bengal. The Honorable Court has stayed the demand till final disposal of Company's appeal.
(c) The Divisional Bench of Hon'ble High Court, Calcutta has confirmed the demand of Rs. 646 Lacs for Financial Year 2012-13 to 2017-18
(Q1) against which company preferred an appeal to the Hon'ble Supreme Court.
(d) The Income Tax Department of India raised the demand of Rs. 23 Lacs for Assessment Year 2016-17 and Rs. 59 Lacs for Assessment Year
2018-19 against which company preferred an appeal to the Commissioner of Income Tax.
(e) The Goods and Service Tax Department of India raised the demand of Rs. 8 Lacs for the previous year 2018-19 and Rs. 45 Lacs for the
previous year 2019-20 against which company preferred an appeal to the First Appellate Authority.
Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service
for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied for the number of years of service.
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, mutual funds
that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as
at the reporting period.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is inlcuded in Level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case
for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
The carrying amounts of trade payables and cash and cash equivalents are considered to be the same as their fair values, due to short term
nature.
The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate. They are classified
as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
The fair values of non-current borrowings are based on discounted cash flows using a current borrowings rate. They are classsified as level 3
fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
Note No. 39 Financial Risk Management Objectives and Policies
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations and to support its operations. The Company's financial assets include trade and other
receivables, and cash & cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company's senior management oversees the management of these
risks. The company's senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial
risk governance framework for the Company. This financial risk committee provides assurance to the Company's senior management that the
Company's financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and
managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing
each risk, which are summarised as below:
(A) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risks. Financial instruments affected by market
risk include loans and borrowings in foreign currencies.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's
long term debt obligations with floating interest rates. The Company is carryg its borrowings primarily at variable rate. The
Company expects the variable rate to decline, accordingly the Company is currently carrying its loans at variable interest rates.
b) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument leading to a financial loss. The
Company is exposed to credit risk from its financing activites, including deposits with banks and financial institutions and other
financial instruments.
(i) Trade Receivables
Customer credit risk is managed by each business location subject to the Company's established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are
defined in accordance with the assessment both in terms of number of days and amount. Any Credit risk is curtailed with
arrangements with third parties.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addtion, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 09. The
Company does not hold collateral as security.
(ii) Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investment of surplus funds are made only with approved counterparties . The
Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2026 and 31 March 2025
is the carrying amount as illustrated in Note 37.
(B) Liquidity Risk
Liquidity risk refer to the risk that the Company may not able to meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per the requirement. The Company has obtained adequate
fund and non fund based working capital limits from its bankers. The Company maintains its surplus funds, if any, in deposits / balances
which carry low market risk. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly,
no liquidity risk is perceived.
Note No. 4p| Related Party Disclosure (As per Ind AS-24)
(a) Enterprise over which KMP and their Relatives exercise Significant Influence.
Name of Enterprises
Century Aluminium Mfg. Co. Ltd
Paramsukh Properties Pvt. Ltd
Atash Properties and Finance Limited
Terms and Conditions of Transactions with Related Parties:
The sales and purchase from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding
balance at the year-end are unsecured and interest free and settlement occurs in cash. This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.
In line with Circular No 04/2015 issued by Ministry of Corporate Affairs dated 10th March, 2015, loans given to employees as per the Company's
policy are not considered for the purposes of disclosure under Section 186(4) of the Companies Act, 2013.
There are no loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under
Companies Act, 2013,) either severally or jointly with any other person, that are: a) repayable on demand or b) without specifying any terms
or period of repayment.
Note No. 44 Segment Reporting
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 business segments
and geographic segments.
"For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the
shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital
to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents.
A CSR Committee has been formed by the Company as per the provisions of Section 135 of the Companies Act, 2013. The details of the
expenditure being incurred during the year on CSR activities are as under
Pre Goods & Service Tax (GST), the Company was enjoying certain benefits under Industrial Promotion Scheme (IPA) 2004 of West Bengal
State Government. Post GST, pending notification by the State Government, on prudent basis, the Company has not recognised any income
under the scheme from 1st July 2017 as the amount thereof is presently uncertainable. Subsequent to withdrawal of IPA scheme vide state
notification No. WB(Part-IV)2025/SAR-5 Dated 19.03.2025 by Govt. of West Bengal, claimed subsidy receivable from Govt of West Bengal
relating to years from 2013-14 to 2017-18 amounting to Rs. 1111 Lacs became doutful. In view of the withdrawal of the scheme by Govt. of
West Bengal retrospectively the company have written off subsidy receivable from accumulated reserve and surplus. However the Company
have filed an adjoiner application before the Honourable Supreme Court against withdrawal of IPA scheme.
Effective November 21,2025, the Government of India consolidated 29 existing labour regulations into four Labour codes, namely, The Code
on Wages, 2019, The Industrial Relations Code, 2020, The Code on Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020, collectively referred to as the 'New Labour Codes', The New Labour Codes has resulted in a one-time material increase
in provision for employee benefits on account of recognition of past service costs. Based on the requirements of New Labour Codes and the
ICAI clarification, the Company has assessed and accounted the estimated incremental impact of Rs. 79 Lacs (before tax) as Exceptional items
in the financial statement for the year ended March 31,2026.
Additional Regulatory Information
Schedule III also requires some additional regulatory information to be provided in financial statements. These are as below:
Note No. 53 Registration of charges or satisfaction with Registrar of Companies (ROC)
The Company has registered charges or satisfaction with Registrar of Companies within the statutory time period.
Note No. 54 Compliance with number of layers of companies
The Company has no subsidiary company, therefore nothing to report regarding compliance with layers of Companies under Clause (87) of
the Section 2 of the Act read with the Companies (Restriction on numbers of Layers) Rule, 2017.
Note No. 56 Utilisation of Borrowed funds and share premium:
The Company neither advance of loaned or investment funds nor received any funds (either borrowed funds or share premium or any other
sources or kind of funds) to/from any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise).
The Company has not given any Corporate Guarantee to any one during the financial year.
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560
of Companies Act, 1956 during the financial year.
The Company has borrowings from banks on the basis of security of current assets and quarterly returns or statements of current assets filed
by the Company with banks are materially in agreement with the books of accounts.
No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended
oe °. Schedule III:
a) Crypto Currency or Virtual Currency
b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
c) Immovable Property held in the name of Company except stated in Note no 53(a).
The Company has not declared willful defaulter by any bank or financial institution or others lender.
Previous period figures have been re-grouped / re-classified, where ever considered necessary.
|