2.17 Provisions, Contingent Liabilities, Contingent Assets and commitments
(a) Provisions:
Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required
to settle the present obligation at the Balance sheet date and are not discounted to its present value.
(b) Contingent Liabilities:
Contingent liabilities are 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 or 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.
(c) Contingent Assets:
Contingent Assets are neither recognised nor disclosed in the financial statements
(d) Commtments:
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets
2.18 Accounting for Taxes on Income
(a) Current tax
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions
of the Income-tax Act, 1961
Deferred tax assets and liabilities are recognised by computing the tax effect on timing differences which
arise during the year and reverse in the subsequent periods. Deferred tax assets against unabsorbed depreciation
and carried forward loss under tax laws, are recognised only to the extent that there is virtual certainty supported
by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets
can be realised. Deferred tax assets on other timing differences are recognised only to the extent that there is a
reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets
can be realised.
(b) Current and Deferred tax is measured based on the provisions of tax laws and tax rates enacted or substantively
enacted as at the Balance Sheet date.
2.19 Government Grants
The Company has received government grants related to revenue expenses, which are deducted from related
revenue expenses for the year.
2.20 Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits with banks
Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash
and which are subject to insignificant risk of changes in value
Note:
1. The Company has increased its authorised share capital from INR 10 crores to INR 25 crores on 16 December 2023.
2. The Company has issued 66.50 lakhs bonus shares dated 29th December 2023 to its existing shareholders as 7 shares for every 10 shares held as on
record date 20th December 2023, effect of this bonus issue has been considered to calculate EPS.
(d) The company has only one class of shares referred to as equity shares having at par value Rs. 10/- each holder of equity shares is entitled to one vote
per share. In the event of liquidation, the ordinary shareholders are entitled to receive the remaning assets of the company after payment of all
prefrential amounts, in proportion to their shareholdings.
(e) The Company does not have any Holding Company/ Ultimate Holding Company.
(f) No Ordinary Shares have been reserved for issue under options and contracts/commitments for the sale of shares/disinvstments as at the Balance
Sheet date.
(g) No Shares have been bought back by the company during the period of 5 years precceding the date as at which the Balance Sheet is prepared.
(h) No Securities converted into Equity/preference Shares have been issued by the Company during the year.
(i) No Calls are unpaid by any Director or Officer of the Company during the year.
(j) Further there are no shares that have been alloted by the Company without payment being received in cash, or by way of bonus shares as on Balance
Sheet date except as disclosed in note (c) above.
(k) During the financial year ended March 31, 2025, Company has completed an initial public offerings (IPO) of 57,95,200 equity shares of face value Rs.
10/- at an issue price of Rs. 87/- per share (including equity shares of 1,28,000 with a face value of Rs. 10/- each at an issue price of Rs. 82/- per share
under employee reservation) which comprises of fresh equity issue of 57,95,200 shares aggregating to Rs. 5035.42 lakhs . Further, against the
expenses related to IPO, Rs. 493.81 was debited against Securities Premium Account as per Section 52 of Companies Act,2013. Pursuant to the IPO ,
the equity shares of company have got listed on the SME Platform of National Stock Exchange "(NSE-Emerge)" on August 02, 2024
a1 The Company has received orders dated 30 October 2023 from Central Goods and Service Tax (CGST) Department, Udaipur for the wrong availment of Input
tax credit amounting INR 181.44 lakhs for financial year 2018-19, 2019-20 and 2020-21 plus an equal amount of penalty. The Company has filed appeal
against these order with the Honorable Appellate Authority CGST, Jodhpur on 25 January 2024. The Company has received the final order from the authority
dated 09 October 2024 in favour of the Company.
a2 The Company has received multiple orders from the Goods and Service Tax (SGST) Department for excess input-tax credit availed and/ or tax liability
inlcuding interest and others. The Company has filed appeals in some cases and is in process of filing the appeal against other cases with the Honorable
Appellate Authority. The management believes that basis of ground of appeals, and the chances of quashing the order are higher than confirmation of order
by the Honorable Appellate Authority, accordingly, no liability has been provided.
(b) Commitments
The Company has imported plant and machinery under EPCG scheme without paying custom duty, as a consequences in the event that certain terms and
conditions are not fulfilled, the company is committed to pay the consequential taxes, levies etc. The Company has issued required Bank Guarantee in favour
of DGFT (Director General of Foreign Trade) against the same. The outstanding bank guarantee as on 31 March 2025 is INR 29.70 lakhs (31 March 2024 : INR
100.70 lakhs). The total export obligation against these licenses is USD 44,38,667 (31 March 2024: USD 86,08,560). The Company has completed obligations
under some of the licenses and redemption is under process.
34.1 #Explanation for change in the ratios by more than 25%:
(b) The Debt-Equity ratio has decreased, as Shareholders' fund has increased due to profits and issue of shares in the current year, further the debt is
also reduced due to repayment of term loans and working capital loans remain in line with previous year. Accordingly, the gap between
shareholders' fund and borrowings has increased which has reduced the debt-equity ratio.
(d) The Return on Equity has decreased drastically as Company has issued new equity shares in the current year however the profit of the Company
has not increased to that extent in the current year.
(h) The Net Capital Turnover Ratio is decreased as during the year average net working capital has increased because Company has issued new shares
through intial public offer and some part of that funds were used for working capital due to which the net working capital at the end of current
period has increased drastically.
(i) The Net Profit ratio is decreased as during the current year though the company has seen growth in its Net Sales but margins have reduced due to
lower gross margins in current year.
(j) The Return on Capital Employed has decreased as Company has issued new equity shares in the current year however the earnings before interest
and tax of the Company has not increased to that extent in the current year.
35 Disclosures as per amendments in Schedule III of Companies Act,2013 with notification issued on 24th March 2021:
Information required against additional disclosures as per amendments in Schedule III of Companies Act, 2013 are as under:-
(a) Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XMI)(Y)(i))
There are no immovable properties owned by the company whose title deeds are not held in its name.
(b) Revaluation of Property, Plant & Equipment (Para a(ii)(XMI)(Y)(ii))
During the year under review the company has not revalued its property, plant & Equipment (Including right of use assets).
(c) Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XNI)(Y)(iii))
The Company has not provided any loans and advance to the parties covered under this clause other than those disclosed under note number 28.
(d) Details of Benami property held (Para a(ii)(XNI)(Y)(vi))
No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 and rules made thereunder.
(f) Willful Defaulter (Para a(ii)(XNI)(Y)(viii))
The company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.
(g) Relationship with struck of Companies (Para a(ii)(XNI)(Y)(ix))
There are no transactions (Including Investment in Securities / Shares held by Struck off company & Other Outstanding balances) with companies
struck off u/s 248 of the Companies Act 2013, or section 560 of the Companies At, 1956.
(h) Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))
There are no charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.
(i) Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi))
The company has not made violation of requirements related to number of layers of companies as prescribed under clause 87 of Section 2 read
with Commpanies (Restriction of number of Layeers) Rules 2017.
(j) Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XNI)(Y)(xiii))
Not applicable
(k) Utilization of Borrowed funds and share premium (Para a(ii)(XNI)(Y)(xiv))
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other persons(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
(l) Undisclosed Income (Para a(iii)(ix))
Company has not surrendered or disclosed any transaction which was not recorded in the books of accounts as income during the year in the tax
assessment under the Income Tax Act.
(m) Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))
The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
38 The Company's finished goods are eligibile for RODTEP (Remission of Duties or Taxes on Export Products
Scheme) since 01 January 21, however these benefits are in form e-scrip which are freely transferrable. To get
these e-scrips in account, the Company should have an E-Scrip account with ICEGATE. The Company's RODTEP E-
Scrip account was activated in December 2022 and accordingly the RODTEP export incentive is accounted from
01 January 21 to 31 March 2023 is accrued/ deemed to be accrued in previous year. The balance of RODTEP
scrips/ scrips to be issued is recognized as Export Incentive Receivable under Short-term loans and advances.
39 The Company has been sanctioned, working capital limits in excess of Rs. 5 Crore from Bank/ Financial
Institution on the basis of security of current assets etc., during the year, the company has submitted the
statement of stock and book debts which are in agreement with books of accounts, except minor
immaterial discrepancies.
40 Previous year's figures have been regrouped, rearranged and reclassified, wherever considered necessary, and
are rounded off to nearest lakhs, in order to confirm to the current year's presentation.
For A. Bafna & Co. Esprit Stones Limited
Chartered Accountants [Earlier known as Esprit Stones Private Limited]
Firm Reg. No. : 003660C CIN: U74999RJ2016PLC056284
Sd/- Sd/- Sd/-
Vivek Gupta Sunil Lunawath Nitin Gattani
Partner Managing Director Joint Managing Director
Sd/- Sd/-
Place : Udaipur Prakash Manghani Anjali Pandey
Date : 15 May 2025 CFO Company Secretary
ICSI Membership Number : A45660
|