j) Provisions, Contingent Liabilities and Contingent
Assets:
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of the
Company's resources embodying economic benefits and a reliable
estimate can be made of the amount of the obligation. A disclosure of
contingent liabilities is made when there is a possible obligation that
may, but probably will not, require an outflow of company's resources.
As a measure of prudence, the contingent assets are not recognised.
k) Cash and Cash Equivalents-For the Purpose of
Cash Flow Statements:
For the purpose of Cash Flow Statements, cash and cash equivalents
include Cash on Hand and Balances with Banks in the Current Account
and debit balance in Cash Credit Account.
l) Operating Cycle:
Based on the activities of the company and normal time between
incurring of liabilities and their settlement in cash or cash equivalents
and acquisition/right to assets and their realization in cash or cash
equivalents, the company has considered its operating cycle as 12
months for the purpose of classification of its liabilities and assets as
current and non-current.
m) Foreign Currency Transactions:
The transactions in foreign currency have been recorded using the
rate of exchange prevailing on the date of transactions. The difference
arising on the settlement/restatement of the foreign currency
denominated Current Assets/Current Liabilities into Indian rupees has
been recognized as expenses/income (net) of the year and carried to
the statement of profit and loss.
n) Government Grant/Subsidy:
Government Grants/Subsidy available to the Company are accounted
on the basis:
i) Where there is reasonable assurance that the company will
comply with the Conditions attached to them, and
ii) where such benefits have been earned by the Company and it is
reasonably certain that the ultimate collection will be made.
iii) nature of the grant i.e. whether in the nature of capital contribution
or in the form of revenue.
o) Insurance Claims:
Insurance claims are accounted for on the basis of claims admitted/
expected to be admitted and to the extent that there is no uncertainty
in receiving the claims.
p) Research and Development:
Expenditures on research phase is recognized as an expense when they
are incurred.
Expenditures on development phase are recognized as an intangible
asset if they are likely to generate probable future economic benefits
and the cost of the same can be measured reasonably and can be
attributed the intangible assets.
q) Investments:
The investment in Gold is intended to be held for a period exceeding
operating cycle of the business of the company and accordingly it is
classified as "Non-Current Investment" and has been carried at cost of
acquisition in the financial statements.
Investments in subsidiaries i.e. domestic and foreign have initially been
recognised at cost and subsequently carried at cost less accumulated
impairment losses measured at the end of each year, if any.
The investments in subsidiaries are intended to be held for a period
exceeding operating cycle of the business of the company and
accordingly it is classified as "Non-Current Investment" and has been
carried at cost of acquisition in the financial statements.
The investment in Associates is intended to be held for a period
exceeding operating cycle of the business of the company and
accordingly it is classified as "Non-Current Investment" and has been
carried at cost of acquisition in the financial statements.
r) Employee Benefit Expenses:
Short term employee benefits like wages, salaries, bonus and other
monetary and non-monetary benefits are recognized in the period
during which services are rendered by the employees and are
recognized at the value at which liabilities have been settled or are
expected to be settled.
The Company’s contribution to the Provident Fund and ESIC is remitted
as per the applicable provisions relating to the Employee Provident
Fund Scheme and ESIC and such contributions are charged to the
Statement of Profit & Loss of the period to which contributions relates.
The company's obligations towards gratuity, leave encashment or other
terminal benefits if any as may be applicable will be recognized in the
period in which such obligations with individual employee be settled.
s) Exceptional items:
An item of income or expense if which by its size, type, frequency of
occurrence within the normal business activities or incidence requires
disclosure in order to improve an understanding of the performance of
the Company or its financial performance is treated as an exceptional
item and disclosed as such in the financial statements.
t) Segment Reporting:
The Company identifies operating or business segments on the
basis of dominant source, nature of risks and returns and the internal
organization. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the Managing Director/
Chief Executive Officer who is Company's chief operating maker in
deciding how to allocate resources and in assessing performance.
u) Current/Non-Current Classifications:
The Company presents assets and liabilities in the financial statements
on the basis of their respective classifications into current and non¬
current.
Assets:
An asset is treated as current when it is:
• Expected to be realised or intended to be sold or consumed in
normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting
period
• Cash or cash equivalent unless restricted from being exchanged
or used to settle a liability for at least twelve months after the
reporting period.
All other assets are classified as non-current.
Liabilities:
A liability is treated as current when it is:
• Expected to be settled in normal operating cycle
• Held primarily for the purpose of trading
• Due to be settled within twelve months after the reporting period
• No unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.
All other liabilities are classified as non-current.
v) Events after reporting date:
Events occurring after the reporting date are recognized based on
those significant events both favourable and unfavourable, that
occurred between the balance sheet date and the date on which the
financial statements are approved by the Board of Directors. These
events can be those which provide further evidence of conditions
that existed at the balance sheet date and those which are indicative
of conditions that arose subsequent to the balance sheet date. The
events occurring after the balance sheet date which provide additional
information materially affecting the determination of the amounts
relating to conditions existing at the balance sheet date are adjusted
to the reporting the amounts in the financial statements or otherwise
appropriate disclosure is made in the financial statements.
- Common Security:
A. Primary Security
- First and Exclusive Charge by way of Hypothecation of Current
Assets and Movable Fixed Assets both present and future.
B. Collateral Security:
i. First and Exclusive Charge by way of Mortgage of Plot No. 123,
Devraj Industrial Park, Survey No. 114, Block No. 757 Paiki, Mouje:
Lambha, Taluka: Vatva, Dist.: Ahmedabad land admeasuring 15732
Square feet and Contruction Area 6845 Square Feet owned by
the Company.
ii. First and Exclusive Charge by way of Mortgage of Office No. 208,
2nd Floor, Dev Shruti Complex, Survey No. 3907 & 3908, TPSN-3,
Ellisbridge, FPN-442/1 & 442/2, Mouje Changispur, Tal: Sabarmati,
Dist.:Ahmedabad construction admeasuring 1317 Square Feet
owned by the Company.
C. ECLGS Loans further secured by way of:
First Charge in Favour of AU Small Finance Bank and Second
Charge in Favour of National Credit Guarantee Trustee Company
(NCGTC) of cash flows and security along with existing credit
facilities.
** Outstanding balances of term loans and working capital term
loans secured by personal/corporate guarantees of the following:
- Directors
Mr. Ritesh Vinay Patel
Mr. Vinay Rajnikant Patel
*** Terms of Repayment:
The principal amount of term loans/working capital term loans
to be paid as under:
i. Enterprises Term Loan A/c. No. AU - 9001231629009223- To be
repaid by 78 Monthly Instalment of ' 1,52,248 each inclusive of
interest.
ii. Enterprises Term Loan A/c. No. AU - 9001231629009333- To be
repaid by 69 Monthly Instalment of ' 89,022 each inclusive of
interest.
iii. Working Capital Term Loan A/c. No. ECLGS 9001160529009421-
To be repaid by 24 Monthly Instalment (Including May-22) of
' 58,623 each inclusive of interest.
iv. Working Capital Term Loan A/c. No. ECLGS 9001160529009521-
To be repaid by 54 Monthly Instalment including moratorium
period of 18 months (Including May-22) of ' 42,289 each inclusive
of interest.
**** Nature of Default, If Any:
No Defualt as on the Balance Sheet Date.
* Nature of Security
A. Axis Bank Limited
The working capital loans from Axis Bank secured as under:
B. AU Small Finance Bank
The working capital loans from AU Small Finance Bank secured
along with terma loans/working capital term loans as under:
- Common Security:
A. Primary Security
Axis Bank Limited
- Hypothecation of Entire Current Assets of the company both
present and future.
AU Small Finance Bank
- First and Exclusive Charge by way of Hypothecation of Inventory,
Book Debts, Current Assets and Movable Fixed Assets both
present and future.
B. Collateral Security:
Axis Bank Limited
- Charge by way of Mortgage of Plot No. 123, Devraj Industrial Park,
Survey No. 114, Block No. 757 Paiki, Mouje: Lambha, Taluka: Vatva,
Dist.: Ahmedabad land admeasuring 15732 Square feet and
Contruction Area 6845 Square Feet owned by the Company.
- Charge by way of Mortgage of Office No. 208, 2nd Floor, Dev Shruti
Complex, Survey No. 3907 & 3908, TPSN-3, Ellisbridge, FPN-442/1
& 442/2, Mouje Changispur, Tal: Sabarmati, Dist.:Ahmedabad
construction admeasuring 1317 Square Feet owned by the
Company.
Cash Margin:
- Pledge of FDR Equivalent to 15.00% of total limits.
AU Small Finance Bank
i. First and Exclusive Charge by way of Mortgage of Plot No. 123,
Devraj Industrial Park, Survey No. 114, Block No. 757 Paiki, Mouje:
Lambha, Taluka: Vatva, Dist.: Ahmedabad land admeasuring 15732
Square feet and Contruction Area 6845 Square Feet owned by
the Company.
ii. First and Exclusive Charge by way of Mortgage of Office No. 208,
2nd Floor, Dev Shruti Complex, Survey No. 3907 & 3908, TPSN-3,
Ellisbridge, FPN-442/1 & 442/2, Mouje Changispur, Tal: Sabarmati,
Dist.:Ahmedabad construction admeasuring 1317 Square Feet
owned by the Company.
** Outstanding balances of working capital secured by personal/
corporate guarantees of the following:
- Directors
Mr. Ritesh Vinay Patel
Mr. Vinay Rajnikant Patel
*** Terms of Repayment
To be Repaid on Demand
*** Nature of Default, If Any
No Defualt as on the Balance Sheet Date.
$ For Nature of Security, Terms of Repayment, Gurantee
Offered and Nature of Defaults Refer to Note No. 4.
c) Operating Segment:
The Company identifies operating segments on the basis of dominant
source, nature of risks and returns and the internal organization. The
operating segments are the segments for which separate financial
information is available and for which operating profit/loss amounts are
evaluated regularly by the Managing Director/Chief Executive Officer
who is Company's chief operating decision maker in deciding how to
allocate resources and in assessing performance.
The dominant source of income of the company from its activities
do not materially differ in respect of risk perception and the return
realized/to be realized. Even the geographical/regulatory environment
in which the company operates does not materially differ considering
the political and economic environment, the type of customers, assets
employed and the risk and return associated in respect of each of
the geographical area. So, the disclosure requirements pursuant to
"Segment Reporting" are not applicable.
d) Issue of Convertible Share Warrants:
The Board of Directors of the company at its meeting held on 28th
February, 2024 approved allotment of 57,00,000 warrants convertible
into 57,00,000 equity shares of face value of ' 10/- each at a price
of ' 175/- per share (including premium of ' 165/- per share) on
preferential allotment in compliance with the provisions of SEBI (ICDR)
Regulations, 2018 and amendments thereto and other applicable
regulations of SEBI and after obtaining necessary approvals from
Statutory Authorities including National Stock Exchange where the
shares of the company are listed on the basis of valuation obtained
from Registered Valuer. The offer of 57,00,000 warrants has been fully
subscribed by the allottees. The company had received ' 2,493.75 being
25.00% of the warrant issue price at the time of subscription which had
been separately disclosed in as "Money Received Against Issue of Share
Warrants" as part of Shareholder’s Fund in the Financial Statements. The
balance 75.00% amount is payable at the time of exercise of warrant(s)
by the Warrant-holder(s).
The share warrant holder of 12,30,070 warrants have fully paid up
remaining 75.00% during the current financial year which have been
converted into fully paid-up equity shares.
Further to above, some of the warrant holders have paid further
instalment of ' 1,611.66 during the year.
The outstanding balance of "Money Received Against Share Warrants"
as at the end of current financial year was ' 1,957.42.
e) Debtors From Operating Activities:
The company has initiated proceedings/taken actions for recovery
against the doubtful debtors amounting to ' 97.56/- (' 76.15/-
classified as non-current and ' 21.41/-classified as Current Trade
Receivable) (Previous Year ' 108.80/-). In view of the management of
the company, it is most likely that the company will be able to recover
the amount from the doubtful debtors and hence the company has not
made any provision against the doubtful debts of ' 97.56/- (Previous
Year ' 108.80/-).
However, considering the uncertainty over the time period over which
the amounts are expected to realized, the outstanding balances of
doubtful debts of ' 76.15 have been classified as long-term trade
receivables under the head "Other Non-Current Assets" in the balance
sheet and will be classified as short-term trade receivable if it is expected
with reasonable certainty that the amounts will be recovered within
twelve months from the end of the balance sheet date. The balance
amount of Trade Receivables of ' 21.41 has been classified as "Current
Trade Receivable".
f) Investment in Subsidiaries:
The company has made an investment during the preceding financial
year in an Indian Subsidiary company Rivita Solutions Private Limited
with 51% shareholding in the company. The cost of investment in
the company is ' 0.51. The investment in the company has been
recognized at cost and has been carried at cost of acquisition.
Further, the company had also made an investment of ' 543.84 during
preceding financial year in foreign subsidiary Felix Industries LLC, Oman
(Earlier Felix Industries LLC, Oman). The company has made further
investment of ' 1,737.85 in the said LLC during the current financial
year. The total investment in the LLC as at March 31, 2025 has been
' 2,281.70. The The company held 76.50% holding in the LLC as at the
end of the current financial year and the remaining stake has been held
by the resident of Oman. The investment has been recognized at cost
and has been carried at cost of acquisition.
The company has made an investment during the year in an Indian
Subsidiary company Felix WMC Private Limited with 55% shareholding
in the company. The cost of investment in the company is ' 0.55. The
investment in the company has been recognized at cost and has been
carried at cost of acquisition.
The company has made an investment during the year in an Indian
Subsidiary company Enovation Aquaprocess Private Limited with 85%
shareholding in the company. The cost of investment in the company
is ' 8.50. The investment in the company has been recognized at cost
and has been carried at cost of acquisition.
Further to above investment in the subsidiaries, the company has also
made an investment in an associate company Eco Vision Aqua Care
Private Limited amounting to ' 150.00 during the financial year holding
20.00% shares in the company. The investment in the company has
been recognized at cost and has been carried at cost of acquisition.
The above investments have been made on long term strategy basis to
improve the overall net-worth of the company and for value addition to
the investment made over the period of time.
g) The company has communicated suppliers to provide confirmations
as to their status as Micro, Small or Medium Enterprise registered under
the applicable category as per the provisions of the Micro, Small and
Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006).
The company has classified suppliers into Micro, Small and Medium
Enterprises as per the confirmations received by the company upto
the date of the financial statements and accordingly other suppliers are
classified as Non-MSME Suppliers irrespective of their status as per the
provisions of the Micro, Small and Medium Enterprises (Development)
Act, 2006 (MSMED Act, 2006).
h) In the opinion of the Board of Directors, Current Assets & Loans
and Advances have a value on realisation in the ordinary course of
business equal to the amount at which they are stated in the balance
sheet. In the opinion of the Board of Directors, claims receivable against
property/goods are realizable as per the terms of the agreement and/
or other applicable relevant factors and have been stated in the financial
statements at the value which is most probably expected to be realized.
i) All the balances of debtors and creditors, loans and advances
and unsecured loans are subject to confirmation and subsequent
reconciliation, if any.
(a) On Account of substantial realization from Fixed Deposits held margin, working capital limits availed during the year, increase in outstanding
balance of sundry creditors goods, expenses and capital goods as well as increase in advances received from customers pending supply or
provision of services during the current financial year compared to the preceding financial year.
(b) Resulted from increase in current liabilities, short-term and long-term borrowings during the current financial year.
(c) Though profit margins improved during the current financial year the increase in short-term and long-term borrowings has decreasing effect
on the debt service ratio.
(d) Resulting from Higher Average Inventory holding during the current financial year compared to the preceding financial year on account of
execution of pending orders.
(e) On Account of higher average trade receivable outstanding balance for the current financial year compared to the preceding financial year.
(f) On Account of higher average trade payable outstanding balance vis-a-vis purchases made in the current financial year compared to the
preceding financial year.
(g) Resulting from higher deployment of funds in short term loans and advances and other current assets vis-a-vis improvement in operational
activities during the current year compared to the preceding year having reducing effect on net capital turnover ratio.
(h) Availability of funds, better resources management, innovations in operational activities, execution of margin-oriented projects and further
built-up on operational efficiencies resulted into improvement in turnover and cost management having positive impact on net profitability.
l) Exceptional Items Recognised:
Current Financial Year INR NIL [Previous Financial Year INR NIL].
m) Relationship with Struck off Companies:
The company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies
Act, 1956, during the current year and in the previous year.
n) The Financial Statements were authorised for issue by the Board of Directors on 29th May, 2025.
o) No funds (which are material either individually or in the aggregate)
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 person(s) or entity(ies), including foreign
entities ("Intermediaries"), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
No funds (which are material either individually or in the aggregate)
have been received by the company from any person(s) or entity(ies),
including foreign entities ("Funding Parties"), with the understanding,
whether recorded in writing or otherwise, that the company shall,
whether, 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 provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
p) Statutory Information/compliance:
i. The Company have no such transaction which have not been
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.
ii. The Company has not traded or invested in Crypto Currency or
Virtual Currency during the financial year.
iii. No proceedings have been initiated or are pending against the
Company for holding any benami property under the Benami
Transactions (Prohibition) Act,1988 (45 of 1988) and rules made
thereunder.
iv. The Company has complied with the number of layers prescribed
under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.
v. The company has used an accounting software for maintaining
its book of account for the financial year ended March 31, 2025
as well as for the financial year ended March 31,2024 which has a
feature of recording audit trail (edit log) facility and the same has
been operational for the financial year 2024-25 as well as financial
year 2023-24 for all relevant transactions recorded in the software
ensuring that the audit trail feature in the software has not been
disabled throughout the relevant period as required by proviso to
sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014
read with the Companies (Accounts) Amendment Rules, 2021.
The company has used an accounting software for maintaining
its book of account which has the feature of preserving audit trail
for the period as required by section 128(5) of the Companies Act,
2013 read with relevant rules in this regard.
vi. The Company has not entered with any Scheme(s) of arrangement
in terms of sections 230 to 237 of the Companies Act, 2013.
q) The previous year's figures have been reworked, regrouped and
reclassified wherever necessary so as to make them comparable with
those of the current year.
The Financial Statements have been presented in Indian Rupee (?)
in Lakhs rounded off to two decimal points as per amendment to
Schedule III to the Companies Act, 2013 except number of shares, EPS
and otherwise stated.
The figures wherever shown in bracket represent deductions/negative
amount.
As Per our Report of Even Date
For and on Behalf of the Board For S N Shah & Associates
Felix Industries Limited Chartered Accountants
Firm Reg. No.: 109782w
Sd/- Sd/- Sd/-
Ritesh Patel Vinay Patel Firoj G. Bodla
[Managing Director] [Director] Partner
[Din: 05350896] [Din: 08377751] M. No. 126770
Sd/- Sd/-
Uday Chandulal Shah Hena Shah
[Chief Financial Officer] [Company Secretary]
Place: Ahmedabad
Dated: 29th May, 2025
UDIN: 25126770BMITGO5348
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