M. Contingent liabilities
The Company creates a provision where there is a present obligation as result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not require an outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is
made.
The Contingent Liabilities which are not recorded in the Financial Statements are as under:
a) The Company has imported Plant & Machinery under EPCG Scheme for which the company has
legal obligation to export goods within Six year from date of licenses, the details of licenses are as
follows:
*The company has obtained an extension from DGFT for fulfilling its export obligation, now extended
until 28.04.2026.
If the company is not able to comply with this export obligation then the company shall be liable to pay
custome duty of Rs. 1,84,52,971/-
In respect of EPCG License Nos. 330046421 dated 19.01.2017 and 330047328 dated 08.06.2017,
the Company has fulfilled the export obligation and submitted the closure applications to the DGFT.
However, as of the date of approval of the financial statements (May 13, 2025), the final closure
letters are awaited. Accordingly, in the absence of official confirmation from DGFT, the corresponding
amount has been disclosed as a contingent liability to the tune of Rs. 85,69,301/-
The company has taken Bank Guarantee from Punjab National Bank in favor of DGFT to the tune of
Rs. 73,69,200/- to obtain this Bank Guarantee the company has offered fixed deposit with PNB to the
tune of Rs. 18,43,050/-.
b) The Company has imported Raw Material under Advance Licenses Scheme and is under a legal
obligation to export goods within Eighteen Months from the date of license, however the company
was not able to fulfil these export obligations, hence the company has made an application to the
concerned authority to extent time period to enable it to fulfil the export obligations. This application
is not yet decided upon by the concern authority. The details of aforesaid advanced licenses are as
follows:
If the company is not able to comply with this export obligation then the company shall be liable to pay
custom duty of Rs. 1,17,15,662/-
The Company has taken Bank Guarantee from Punjab National Bank in favor of DGFT to the tune of
Rs. 32,72,000/- to obtain this Bank Guarantee the company has provided fixed deposit with PNB to
the tune of Rs. 10,33,000/- as collateral security.
c) The Company has not taken any Group Gratuity Policy or made any provision for likely Gratuity
Liabilities which may arise in future.
d) A potential tax liability of INR 1,647.79 lakhs may arise for the Financial Year 2017-18, in connection
with the appeal filed before the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal is
currently pending for disposal.
e) A potential tax liability of INR 1,133.57 lakhs may arise for the Financial Year 2017-18, in connection
with the appeal filed before the Commissioner of GST (Appeals) [Comm.(A)]. The appeal is currently
pending for disposal.
f) A potential tax liability of INR 164.50 lakhs may arise for the Financial Year 2018-19, in connection
with the appeal filed before the Commissioner of GST (Appeals) [Comm.(A)]. The appeal is currently
pending for disposal.
1) The Company has availed machinery term loan facility of INR 54.86 lakhs at the ROI of 9.50% for 5 years from
Mahindra & Mahindra Financial
Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 16.46 lakhs @ 8.50% and
Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 1.15
lakhs
2) The Company has availed machinery term loan facility of INR 206.00 lakhs at the ROI of 11.00% for 5 years
from Mahindra & Mahindra Financial
Services Limited against the charge on Plant & Machinery, Security Deposit of Rs. 20.60 lacs @ 7.50% and
Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI Repayment of INR 4.48
lakhs
3) The Company has availed term loan facility of INR 300.00 lakhs at the ROI of 11.75% for 3 years from Tata
Capital against the lien of Fixed Deposit of Rs. 150.00 lakhs and Personal Guarantee by Mr. Shravan Suthar
and Mr. Lalit Suthar against the EMI Repayment of 36 Months.
Unsecured Loans
1) Received from Directors & Directors Relative to the company. The terms and conditions of repayment of principal
and payment of interest are not specified. Hence, the same is considered as long-term and interest-free.
2) Business unsecured loan from Ambit Finvest Private Limited of INR 50.00 lakhs at the RO116.00% for 3 years
repayable in EMI of 1.75 lakhs
3) Business unsecured loan from HDFC Bank Limited of INR 35.15 lakhs at the RO115.00% for 3 years repayable
in EMI of 1.21 lakhs
4) Business unsecured loan from Hero Fincorp Limited of INR 30.15 lakhs at the RO117.00% for 3 years repayable
in EMI of 1.08 lakhs
5) Other loans represting interest rate at the 9.00%
The company has not defaulted on repayment of secured/ unsecured loans and interest during the year.
1) The Company has availed Medium term workig capital facility of INR 1100.00 lakhs at the ROI of 9.85% from
Punjab National Bank against the Hypothecation of Stock & Books Debts and Personal Guarantee by Mr.
Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar.
2) The Company has availed Medium term workig capital facility of INR 1900.00 lakhs at the ROI of 9.25% from
Axis Bank Ltd against the Hypothecation of entire Current assets & pari Pasu on Land, Building, Plant &
Machinery, Office Premises no 301 & Shop No 01 and 02 and Personal Guarantee by Mr. Shravan Suthar, Mr.
Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar.
3) The Company has availed Letter of Credit facility of INR 730.00 lakhs in the form Cash Margin FDR @ 15% from
Punjab National Bank against Personal Guarantee by Mr. Shravan Suthar,Mr. Lalit Suthar, Mr. Laxmichand
Suthar and Mr. Pankaj Suthar.
4) The Company has availed term loan facility of INR 323.00 lakhs at the ROI of 9.85% from Punjab National Bank
against the charge on Plant & Machinery, Factory Land & Building and Personal Guarantee by Mr. Shravan
Suthar,Mr. Lalit Suthar, Mr. Laxmichand Suthar and Mr. Pankaj Suthar against the repayment of INR 46.14
lakhs Quarterly.
5) The Company has availed machinery term loan facility of INR 54.86 lakhs at the ROI of 9.50% for 5 years from
Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of
Rs. 16.46 lakhs @ 8.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI
Repayment of INR 1.15 lakhs
6) The Company has availed machinery term loan facility of INR 206.00 lakhs at the ROI of 11.00% for 5 years from
Mahindra & Mahindra Financial Services Limited against the charge on Plant & Machinery, Security Deposit of
Rs. 20.60 lacs @ 7.50% and Personal Guarantee by Mr. Shravan Suthar and Mr. Lalit Suthar against the EMI
Repayment of INR 4.48 lakhs
7) The Company has availed term loan facility of INR 300.00 lakhs at the ROI of 11.75% for 3 years from Tata
Capital against the lien of Fixed Deposit of Rs. 150.00 lakhs and Personal Guarantee by Mr. Shravan Suthar
and Mr. Lalit Suthar against the EMI Repayment of 36 Months.
Unsecured loan
1) Business unsecured loan from Deutsche Bank of INR 39.7 lakhs at the ROI 17.00% for 5 years repayable in
EMI of 1.42 lakhs
2) Business unsecured loan from Ambit Finvest Private Limited of INR 50.00 lakhs at the RO116.00% for 3 years
repayable in EMI of 1.75 lakhs
3) Business unsecured loan from HDFC Bank Limited of INR 35.15 lakhs at the RO115.00% for 3 years repayable
in EMI of 1.21 lakhs
4) Business unsecured loan from Hero Fincorp Limited of INR 30.15 lakhs at the RO117.00% for 3 years repayable
in EMI of 1.08 lakhs
30 Event occuring after the Balance Sheet Date
To the best of knowledge of the management, there are no events occuring after the Balance sheet date that
provide additional information materially affecting the determination of the amount relating to the conditions
exisiting at the Balance sheet date that requires adjustment to the Assets or Liabilities of the Company.
31 In the opinion of the board and as certified by the management, all expenses charged to revenue and cash
transaction entered into are genuine and have been solely and exclusively incurred for the busniess of the
Company.
32 In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of
business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known
liabilities is adequate and not in excess of amount reasonably necessary.
33 Some of Trade Receivables, Trade Payables, Loans and advances and other current and non current are
subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given effect into the
books of accounts in the year of such adjustment.
These amounts have been accounted for as “Other Current Assets” in the Balance Sheet, pending final
resolution of the disputes. The management, based on legal advice, believes that there are valid grounds to
contest the demands and is hopeful of a favorable outcome. Accordingly, no provision has been made in the
books of account for these disputed amounts.
Contingent liabilities relating to the above matters, where applicable, have been separately disclosed in Note
2.M to the financial statements.
36 Other statutory information
i) The Company has not traded or invested in crypto currency or virtual currency during the year.
ii) The Company does not have any benami property held in its name. No proceedings have been initiated
on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
iii) There is no income surrendered or disclosed as income during the year in tax assessments under the
Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
iv) The Company does not have any charges or satisfaction of charges which is yet to be registered with
Registrar of Companies beyond the statutory period.
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 been declared wilful defaulter by any banks / financial institution or government or
any government authority.
viii) The Company has not revalued its property, plant and equipment (including right of use assets) or intangible
assets during the current year or previous year.
ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
x) The Company has not obtained any term loans from banks and financial institution during the year.
xi) The Company does not have any transactions and outstanding balances during the current as well
previous year with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
37 Ratios : As per Annexure “A”
38 Figures of the previous year have been regrouped, reclassified and/or rearranged whenever necessary to
compare with the figures of the current year.
Signatures to Notes 1 to 38
In terms of our report attached.
For N K Mittal & Associates For Durlax Top Surface Limited
Chartered Accountants
Firm Registration Number: 113281W
CA (Dr.) N K Mittal Shravan Suthar Lalit Suthar
Partner Managing Director Whole Time Director
Membership Number: 046785 DIN : 02985316 DIN : 02985324
Kalpana Joshi Komal Birla
Chief Financial Officer Company Secretary
Place : Mumbai
Date : 13th May, 2025
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