18. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent liabilities is
disclosed in case of a present obligation from past events
(a) when it is not probable that an outflow of resources will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of resources is remote.
Provisions are made when
(a) the Company has a present legal or constructive obligation as a result of past events;
(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
and
(c) a reliable estimate is made of the amount of the obligation.
Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts where the inflow of economic
benefits is probable.
19. Current And Non- Current Classification:
The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various
assets and liabilities into "Current” and “Non-Current”.
The Company presents assets and liabilities in the balance sheet based on current and non-current classification.
An asset is current when it is
(a) expected to be realised or intended to be sold or consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realised within twelve months after the reporting period
(d) Cash and 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.
A liability is current when
(a) it is expected to be settled in normal operating cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months after the reporting period
(d) there is 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.
20. Earning Per share:
Earnings per share are calculated by dividing the net profit or loss before OCI for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party,
regardless of whether a price is charged. Close members of the family of a person are those family members who may be
expected to influence, or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf
of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the
entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise)
of that entity.
The Company has not provided and paid interest on delayed payment to MSME as per the provisions of the MSME Act, 2006. It was
informed by the Management that the vendors have agreed to accept delayed payment without any interest and have not raised any
objection. The impact of the same on the Profit and Loss for the year could not ascertain as the company has not calculated the
amount of interest payable.
The above Information has been determined to the extent such parties have been identified on the basis of information available with
the company.
Note:- 36 Quarterly Returns submitted to Banks
The company has been sanctioned working capital limits in excess of five crores rupees, in aggregate, from banks on the basis of
security of current assets. Differences between Quarterly returns or statement filed by the company with banks and books of account
are as follows:
Note 38: Fair Value Measurement
Capital management
The company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through
optimisation of debt and equity balance
The capital structure of the company consists of net debt ( borrowings as detailed in Note 14 & Note 15 and offset by cash and bank balances) and total
equity of the company
The Company is not subject to any externally imposed capital requirements.
The Company's audit committee reviews the capital structure of the company on a quarterly basis. As part of this review, the committee considers the cost of
capital and the risks associated with each class of capital
Notes:-
1. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of
their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be
received or settled.
2. Finance income and finance cost by instrument category wise classification :-
i) Interest income of Rs.4.17 Lakhs (P.Y. Rs.0.93 Lakhs) on financial instrument at amortised cost.
ii) Interest expense of Rs. 168.82 Lakhs (P.Y.Rs. 151.09 Lakhs) on borrowing at amortised cost.
Note 39: Financial risk management objectives & Policies
The Company’s financial liabilities comprise long term borrowings, short term borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company s operations. The Company’s financial assets include trade and other receivables, cash and cash equivalents, and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a board of
Directors that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Companys
management that the Company’s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in
accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market
risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The
Companys exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. The Company has a treasury
department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the
Company.
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of
credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The Companys exposure to credit
risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is
analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure
to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 8 as the Company does not hold collateral as security. The
Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.
Refer note no 8 for ageing of trade receivable as of 31st March, 2025 and 31st March, 2024.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits,
and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks
that have high ratings. The Company’s treasury department authorizes, manages, and oversees new transactions with parties with whom the Company has no
previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision
making processes, such as the approval of the board of directors.
Note:- 41
During the Year Company has sold its Factory land and building after doing some repair work amounting to Rs.34.42 lakhs & Rs.24.69 lakhs respectively out
of which Rs.44.55 lakhs has been paid in cash.
Also Plant and Machinery in that building have become very old, obsolete, and of no future use to the company. Many of the assets are no longer in good
working condition. The company has retained only the necessary fixed assets and left all fixed assets with land free of cost amounting to Rs.12.54 lakhs.
Also K.E.B deposit of Rs. 21.80 lakhs and K.I.A.D.B deposit of Rs.0.87 lakhs respectively has been writen off along with the same as these were part and
partial of land and building which has been sold.
Note42. Additional Disclosures relating to the requirement of revised schedule III
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and Rules made thereunder.
(ii) Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iii) Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2025 and 31st March, 2024 which needs to be recorded!
in the books of account.
(v) Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(vii) The charges for the all the borrowings from the banks and financial institutions are properly registered with the Registrar of the companies and there is
no charges which is pending for satisfaction which are yet to be registered with the registrar of the companies beyond the statutory period.
(viii) Relationship with struck off companies
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year. |
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities (Intermediaries) with the
understanding that the Intermediary shall: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall: (a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
Note 43. Ratio Analysis & Its Elements
Refer Annexure
Note 44.
Previous year5 s figures have been rearranged and/or regrouped, wherever necessary.
Note 45.
The financial statements have been approved by the Audit Committee at its meeting held on 28th May, 2025 and by the Board of Directors on the same date.
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