11. PROVISIONS AND CONTINGENT LIABILITIES
Provisions requiring a substantial degree of estimation in measurement are recognized, if in the
opinion of the Management, there is a probability that a present obligation as a result of past
events will result in an outflow for the Company in the future. Contingencies, the outcome of
which is not certain, have been disclosed in these notes as Contingent Liabilities. Contingent
Assets are neither recognized nor disclosed in the financial statements.
12. IMPAIRMENT OF ASSETS
Assessment of Impairment of Assets (as covered under AS-28 Impairment of Assets) is done as at
the Balance Sheet Date considering external and internal impairment indicators. If there is an
indication that an asset may be impaired, its recoverable amount is estimated and the impairment
loss duly provided for.
13. INVESTMENTS
Investments, which are readily realizable and intended to be held for not more than one year
from the date on which such investments are made, are classified as current investments. All
other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price
and directly attributable acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a decline other than temporary in
the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.
14. USE OF ESTIMATES
The preparation of financial statements required the management to make estimates and
assumptions that affect the reported balance of assets and liabilities, revenues and expenses and
disclosures relating to contingent liabilities. The Management believes that the estimates used in
the preparation of financial statements are prudent and reasonable. Future results could differ
from these estimates. Any revision of accounting estimates is recognized prospectively in the
current and future periods.
15. CONTINGENT LIABILITIES AND PROVISIONS
Provisions are recognized only when there is a present obligation as a result of past events and
when a reliable estimate of the amount of obligation can be made.
Contingent Liability is disclosed for
a) Possible obligation which will be confirmed only by future events not wholly within the control
of the Company or
b) Present obligations arising from the past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.
c) Contingent Assets are not recognized in the financial statements since this may result in the
recognition of income that may never be realized.
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 that the likelihood of outflow of resources is remote, no
provision or disclosure is made.
16. EARNINGS PER SHARE:
In determining the Earnings Per share, the company considers the net profit after tax which does
not include any post tax effect of any extraordinary / exceptional item. The number of shares used
in computing basic earnings per share is the weighted average number of shares outstanding as at
31 March, 2024.
17. DERIVATIVES
The Company is exposed to foreign currency fluctuations on foreign currency assets and
forecasted cash flows denominated in foreign currency. The Company tries to limit the effects of
foreign exchange rate fluctuations by following risk management policies including use of
derivatives. For this the Company enters into forward exchange contracts, where the counter¬
party is a Bank. Theses forward contracts are not used for trading or speculation purposes.
In case of forward contracts the gain or loss arising on exercise of option or settlement or
cancellation are recognized in the Statement of profit and loss for the period. The forwards
contracts outstanding as at the balance sheet date, if any, are marked-to-market and
corresponding exchange gain or loss recognized on the same.
In case of derivative transactions in currency futures, the net gain or loss is recognized in the
Statement of Profit and Loss on settlement. In case of outstanding contracts as at the balance
sheet date, the same are also marked-to-market and corresponding gain / loss recognized on the
same.
4. Figures have been rearranged and regrouped wherever practicable and considered necessary.
5. The management has confirmed that adequate provisions have been made for all the known
and determined liabilities and the same is not in excess of the amounts reasonably required to be
provided for.
6. The balances of trade payables, trade receivables, loans and advances are unsecured and
considered as good are subject to confirmations of respective parties concerned.
7. Employee benefits:
The Company has adopted the Accounting Standard 15 (revised 2005) on Employee Benefits as
per an actuarial valuation carried out by an independent actuary. The disclosures as envisaged
under the standard are as under:
8. Realizations
In the opinion of the Board and to the best of its knowledge and belief, the value on realization of
current assets and loans and advances are approximately of the same value as stated.
9. Contractual liabilities
All other contractual liabilities connected with business operations of the Company have been
appropriately provided for.
10. Amounts in the financial statements
Amounts in the financial statements are rounded off to nearest lakhs. Figures in brackets indicate
negative values.
11. Impact of Audit Qualifications/Observations in Statutory Auditor's Report on Financial
Statements
There has been no audit qualifications/observations in Statutory Auditor's Report for the period
ended on 31st March 2024, which requires adjustments in financial statements.
12. ( I ) Material Adjustments
Appropriate adjustments have been made in the financial statements, whenever required, by
reclassification of the corresponding items of assets, liabilities and cash flow statement, in order to
ensure consistency and compliance with requirement of Schedule VI and Accounting Standards.
13. Material Regrouping in Financial Statements
Appropriate adjustments have been made in the Summary Statements, wherever required, by a
reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in
order to bring them in line with the groupings as per the audited financials of the Company
prepared in accordance with Schedule III and the requirements of the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009 (as amended).
However no material regroupings carried out in financial statements.
1. Terms/rights attached to equity shares:
i. The company has only one class of shares referred to as equity shares having a par value of Rs. 10/-
as at 31st March, 2025.
ii. Each holder of equity shares is entitled to one vote per share. All shares rank pari passu with
reference to all rights relating thereto.
iii. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. The amount
distributed will be in proportion to the number of equity shares held by the shareholders.
1. The Credit Facilities from HDFC bank are secured by way of charge on Book Debts, Stocks, FDRs,
Plant and Machinery and Land & Building situated at Village Mangarh, Kohara Machhiwara Road,
Ludhiana Punjab. The facilities are also collaterally secured by way of Equitable Mortgage of House
No. 461, Near G S Motors Workshop, Jagjit Nagar, Threekay Road, Ludhiana in the name of Smt.
Rekha Mittal and further collaterally secured by way of Personal Guarantees of Smt. Rekha Mittal
and the Directors of the Company viz. Sh. Rajan Mittal and Sh. Parmod Gupta and M/s Auto
International
1. The amount taken as Unsecured Loan from the Directors of the Company is usually payable on
demand. Interest has been paid @ 9% per annum for the period ended on 31st March 2025.
1. Amount due to entities covered under Micro, Small and Medium Enterprises as defined in the Micro,
Small, Medium Enterprises Development Act, 2006, have been identified on the basis of information
available with the Company. Management is in process of complying information from their suppliers
regarding their status under the MSME act.
2. Ageing of the Supplier, along with any amount involved in disputes as required by Schedule III of
Companies Act, 2013 is disclosed below after it becomes due for payment. In case of no credit terms
defined the break-up of age wise supplier balance is given below after considering from the date of
transactions.
41. BORROWING COSTS :
No Borrowing Costs were eligible for capitalization during the year.
42. SEGMENT REPORTING :
With respect to Accounting Standard-17, the Management of the Company is of the view that the
products offered by the Company are in the nature of forgings, and its related products, having the
same risks and returns, same type and class of customers and regulatory environment. Hence, the
business of production of forgings and its related products belong to one business segment only.
45. IMPAIRMENT OF ASSETS:-
In absence of any indications, external or internal, as to any probable impairment of assets, no
provision has been made for the same during the year under report, in accordance with the
requirement of Accounting Standard - 28 on "Impairment of Assets"
46. CRYPTO CURRENCY / VIRTUAL CURRENCY :-
The Company has not traded or invested in Crypto Currency or Virtual Currency during the Financial
Year.
47. NO UNDISCLOSED INCOME :-
There are no transactions which are not recorded in books and have been surrendered or disclosed
as income during the year in Income Tax Assessments.
All figures are rounded off to lacs unless otherwise stated.
For Jasminder Singh & Associates For and on behalf of Board of Directors
Chartered Accountants For Forge Auto International Limited
FRN:016192N
CA. Jasminder Singh Rajan Mittal
Partner (Managing Director)
Mem No: 096895
Parmod Gupta
Place: Ludhiana (Chairman and Whole time Director)
Date: 30.05.2025
UDIN:25096895BMGYHO7444 Gautam Kanchan
(CFO)
Medhavi Sharma
(Company Secretary)
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