(o) Accounting For Provisions, Contingent Liabilities &
Contingent Assets
In conformity with Ind AS 37, a provision is recognized
when the Company has a present obligation (legal
or constructive) as a result of a past event and it is
probable that an outflow of resources will be required
to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted
to its present value and are determined based on
best estimate required to settle the obligation at
the balance sheet date. These are reviewed at each
balance sheet date adjusted to reflect the current
best estimates.
Contingent liabilities are not recognized in the
financial statements. A contingent asset is neither
recognized nor disclosed in financial statements.
(p) Leases
The Company, as a lessee, recognizes a right-
of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial
amount of the lease liability adjusted for any lease
payments made at or before the commencement
date, plus any initial direct costs incurred and
restoration cost, less any lease incentives received.
The right-of-use assets are subsequently depreciated
over the shorter of the asset's useful life and the lease
term on a straight-line basis. In addition, the right-
of-use asset is reduced by impairment losses, if any.
The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. When a lease liability is remeasured, the
corresponding adjustment of the lease liability is
made to the carrying amount of the right-of-use asset,
or is recorded in profit or loss if the carrying amount
of the right-of-use asset has been reduced to zero.
(q) Segment reporting
Company is operating only in one business segment
i.e. operation of e-waste recycling business in
organised manner, the requirement to give segment
reporting as per Ind AS Accounting Standard 108
on Operating Segment issued by the Institute of
Chartered Accountants is not applicable.
(r) Earnings per share
Basic earnings per share is computed by dividing
profit or loss attributable to equity shareholders
of the Company by the weighted average number
of equity shares outstanding during the period.
The Company did not have any potentially dilutive
securities in any of the periods presented.
(s) Audit Trail
Enhancing Accountability and Transparency:
Implementation of Audit Trail
The Company had implemented an audit trail system
within our Company's software which has impact on
books of accounts with effect from April 01, 2023.
This implementation underscores our commitment
to transparency, accountability, and data integrity.
Audit trail has been implemented for all transactions
recorded in the software throughout the year.
By capturing and documenting critical events
and activities within our systems, we ensure a
comprehensive record that enhances security,
facilitates compliance, and supports effective
decision-making.
In addition, audit trail data is preserved in the system
as per statutory requirement for record retention.
The Company's dedication to maintain a robust audit
trail reflects ongoing efforts to uphold the highest
standards of governance and security across all
aspects of business operations.
Backup Schedule and Data Preservation:
The Company is following a backup schedule and
data preservation protocol within the organization.
The Company's backup schedule entails frequent
and systematic backups of critical data assets to
safeguard against potential data loss or corruption.
This proactive approach ensures that valuable
information remains protected and accessible in the
event of unforeseen circumstances. The Backup for
the accounting software is done on a Daily basis and
preserved at Disaster Recovery (DR) site located at
Mumbai.
(t) Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
March 31, 2026, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.
Explanatory notes:
(i) Current Ratio - Increased from 2.54 in FY 2025 to 4.10 in FY 2026 due to increase in current assets by ?29.44
Cr, mainly on account of higher trade receivables and cash & bank balances during the year.
(ii) Inventory Turnover Ratio - Increased from 0.73 to 0.93 mainly due to higher cost of goods sold/consumption
during the year resulting in improved inventory rotation.
(iii) Trade Receivables Turnover Ratio - Decreased from 7.28 to 4.14 due to increase in average trade receivables
during the year as compared to growth in revenue.
(iv) Trade Payables Turnover Ratio - Decreased from 7.61 to 1.79 mainly due to increase in average trade payables
owing to higher outstanding vendor balances at year end.
(v) Net Capital Turnover Ratio - Decreased from 2.24 to 1.37 due to increase in working capital.
i. Transaction with Struck off Companies
The company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act,
iii. Details of Benami Property held
The Company does not have any Benami property, where any proceeding has been intiated or pending against
the company for holding any Benami property.
iv. Title deeds of all immovable properties
Title deeds of all immovable properties appearing in the books of company are held in company own's name.
v. Registration of charge or satisfaction of charge with Registration of Companies (ROC)
The company does not have any charges or satisfaction which is yet to registered with ROC beyond the statutory
period.
vi. Wilful Defaulter
The company has not been declared as willful defaulter by any bank or financial institution or other lenders.
vii. Details of Crypto Currency or Virtual Currency.
There are no trading or investment in Crypto currency or Virtual Currency during the financial year by the
company.
viii. Undisclosed Income
There are no transaction which are 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.
b Terms/Rights attached to equity shares
The Company has only one class of equity shares having a face value of Rs. 10/- each. Each holder of equity share is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. In the event of liquidation of
the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of
all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
G) Terms and conditions of transactions with related parties
1. The Company has been entering into transactions with related parties for its business purposes. Related party
vendors are selected competitively in line with other unrelated parties having regard to strict adherence to
quality, timely servicing and cost advantage.
2. The purchases from and sales to related parties are made on terms equivalent to and those applicable to all
unrelated parties on arm's length transactions. Outstanding balances payable and receivable at the year-end are
unsecured, interest free and will be settled in business transactions.
36. The Company was maintaining a demat and a trading account with Keynote Capital Limited for its investment in
equity shares in the secondary market. In the year 2013-14 Keynote misappropriated 20,56,234 nos. of shares worth
Rs. 4,48,55,092/- from its demat account and sold in the market under the pretext of an alleged recovery of debit
balance created by way of unauthorised transactions in the derivative segment. Immediately, the company filed a
complaint against Keynote with SEBI & NSE. The matter was referred to Arbitration and your company won at the two
levels of the Arbitration. Now the matter is pending before The High Court of Mumbai.
37. Balances of some of the trade receivables, trade payables and creditor of expenses, loans & advances (given and
taken) and loans are subject to confirmation from the respective parties. However, the management is of the view
that no material adjustments will be required in this regards.
(B) Fair Value Disclosure
A number of Company's accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities. The Company has established policies and procedures with respect to the
measurement of fair values.
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
- Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
or indirectly.
- Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
40. Financial risk management Framework
In the course of its business, the Company is exposed to certain Financial risks namely credit risk, interest risk, currency
risk & liquidity risk. The Company's primary focus is to achieve better predictability of financial markets and seek to
minimize potential adverse effects on its financial performance.
The financial risks are managed in accordance with the Company's risk management policy which has been approved by
its Board of Directors.
Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates etc. could affect the
Company's income or the value of its holdings of financial instruments including cash flow. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while maximizing the
return.
(a) Currency Risk
The Company's exposure to currency risk relates primarily to the Company's operating activities including anticipated
sales and purchases where the transactions are denominated in a currency other than the Company's functional
currency.
(b) Interest Rate Risk
The Company uses cash to manage the liquidity & fund requirements of its day-to-day operations. Further, certain
interest bearing liabilities carry variable interest rates. The Company's investments are primarily in fixed rate interest
bearing investments. Hence, the Company is not significantly exposed to interest rate risk.
Credit Risk
Credit Risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company's
exposure are continuously monitored.
Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and cash
equivalents, bank deposits and other financial assets. The maximum exposure to credit risk was Rs. 40.97 crores and Rs.
22.04 crores as at March 31, 2026 and March 31, 2025, respectively, being the total of the carrying amount of balances
with banks, bank deposits, investments, trade receivables, loans and other financial assets. None of the other financial
instruments result in material concentration of credit risk.
Liquidity Risk
Liquidity risk refers to the risk that the Company cannot 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 requirements. The
Company consistently generated sufficient cash flows from operations to meet its financial obligations including lease
liabilities as and when they fall due.
41. Capital Management
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. The primary objective of the company's capital management is
to maximize shareholder value. The Company determines the capital requirement based on annual operating plans and
long-term and other strategic investment plans. The funding requirements are met through equity and operating cash
flows generated. The Company is not subject to any externally imposed capital requirements.
42. The Company has reassessed its incremental borrowing rate (IBR) used for measurement of lease liabilities under Ind AS
116 - Leases. Pursuant to this reassessment, the IBR has been revised from 13.5% to 9.5%, effective from the current
quarter, to better reflect the prevailing market conditions and the Company's current borrowing profile. Accordingly,
the Company has remeasured its lease liabilities and corresponding right-of-use (ROU) assets as at 31 March 2026 and
on account of such remeasurement a net impact of 797.37 lakhs has been recognized in the Statement of Profit and
Loss for the quarter ended 31 March 2026.
43. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's
classification/ disclosure.
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