(p) 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.
(q) 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.
(r) 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.
(s) 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.
(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, 2025, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.
Explanatory notes:
(i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade
and Changes in inventories of finished goods, stock-in-trade and work-in-progress.
(ii) Non-Current Borrowings for the purpose of Long term debt to working capital ratio includes Current Maturities
of Non-Current Borrowings and excludes the same from Current Liabilities.
(iii) The reason for decrease in Current Ratio is due to increase in provision for income tax for FY 24-25.
(iv) The reason for Increase in Return on Equity Ratio is due to increase in net profit for the period.
(v) The reason for decrease in Inventory Turnover Ratio is due to significant rise in average inventory.
(vi) The reason for decrease in Trade Receivables Turnover Ratio is due to a significant rise in average receivables.
(vii) The reason for Increase in Trade Payables Turnover Ratio is due to significant decrease in average trade
payables.
(viii) The reason for decrease in Net Capital Ratio is due to a significant increase in working capital, which is greater
than revenue growth.
(ix) The reason for Increase in Interest Coverage Ratio is due to significant Increase in EBIT.
(x) The reason for Increase in Current Liability Ratio is due to increase in provision for income tax for FY 24-25.
(xi) The reasons for increase in Operating Margin is due to significant rise in the EBIT.
(xii) The reasons for decrease in Net Profit Margin is due to increase in tax expenses, which includes payment of
income tax of earlier financial year.
ii. 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.
In terms of our report attached For Eco Recycling Limited
For DMKH & Co B K Soni
Chartered Accountants Chairman & Managing Director (DIN 01274250)
Frim's Registration No : 116886W
Aruna Soni
Executive Director (DIN 01502649)
Anant Nyatee Shashank Soni
Partner (Membership No.: 447848) Executive Director & CFO (DIN 06572759)
Mumbai, May 24, 2025 Mumbai, May 24, 2025
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