p. Provisions and contingent liability
A provision is recognised when an enterprise has a present obligation as a result of past event; 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 and adjusted to reflect the current best estimates.
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.
Provisions for onerous contracts, i.e., contracts where the expected unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it, are
recognised when it is probable that an outflow of resources embodying economic benefits will be
required to settle a present obligation as a result of an obligating event, based on a reliable estimate of
such obligation.
q. Cash Flow Statement
Cash flows are reported using indirect method, whereby net profit before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and financing activities of the
Company are segregated.
r. Cash and Cash equivalents
Cash and cash equivalents comprise of cash in hand and balances with bank and other short term
deposits / investments, that are readily convertible into known amounts of cash and are subject to
insignificant risk of changes in value.
(f) Aggregate number of bonus shares issued or buy back of shares during the year of five years immediately
preceding the reporting date:
The Company has issued 1,35,44,340, bonus shares in ratio of 19:5 i.e Nineteen (19) fully paid up bonus shares
for every Five (5) existing fully paid equity shares held by members on 20-02-2023 and no buy back of shares
during five years immediately preceding the year March 31,2025.
(g) Shares reserved for issue
under options
There are no shares reserved for issue under
options.
(h) Shares allotted as fully paid pursuant to contracts without payment being received in cash during 5 years
immediately preceding the reporting date
There are no shares allotted as fully paid pursuant to contracts without payment being received in cash during
5 years immediately preceding the year March 31,2025..
Nature of Security
Secured by Hyp. of Stock, Books Debts Present and Future and Plot at Vasanthapura industrial estate at
tumkur, karnataka and collateral of Land at Somapura Industrial Area industrial property at Mouja Naryal
Parwanoo.himachal pradesh
Secured by fixed deposit of Rs 1.10 crore
NOTES FORMING PART OF FINANCIAL
STATEMENTS
Personal Guarantee of 1. Mr. Suklal Jain 2. Mr. Praveen Kumar Suklal Jain 3. Mr. Vikas Kumar Suklal Jain 4.
Mr. Hitesh Jain 5. Smt. Nirmala Devi
Corporate Guarante of M/s Greenchef Manufacturers & distributors private limited
There are no charges or satisfaction of charges, which are yet to be registered with Registrar of Companies
beyond the statutory period
C. Loans and advances from related parties - terms of repayment and interest are as per mutual agreement
as per the company discretion
Secured by Hyp. of Stock, Books Debts Present and Future, plant & machinery and Plot at Vasanthapura
industrial estate at tumkur, karnataka and collateral of Land at Somapura Industrial Area,Industrial
property at Mouja Naryal Parwanoo,himachal pradesh
Secured by fixed deposit of Rs 1.10 crore
Personal Guarantee of 1. Mr. Suklal Jain 2. Mr. Praveen Kumar Suklal Jain 3. Mr. Vikas Kumar Suklal Jain 4.
Mr. Hitesh Jain 5. Smt Nirmala Devi
Corporate Guarantee of M/s Greenchef Manufacturers & distributors private limited
There are no charges or satisfaction of charges, which are yet to be registered with Registrar of Companies
beyond the statutory period
32 There are no proceedings that have been initiated or pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time) (earlier Benami Transactions
(Prohibition) Act, 1988) and the rules made thereunder
33 The Company has not been declared willful defaulter by any bank or financial institution or any other lender
34 The company has no transaction with companies struck off under section 248 of the companies Act, 2013 or Section 560 of the
companies Act, 1956
36 The Company does not have any transaction not 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 (such as, search or survey or any other relevant
provisions of the Income-tax Act, 1961). Further, there was no previously unrecorded income and no additional assets were
required to be recorded in the books of account during the year.
37 The company is covered under section 135 of the companies Act, 2013 governing provisions of Corporate Social Responsibility.
38 The Company has neither traded nor invested in Crypto currency or Virtual Currency during the period ended March 31,2025.
Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in
Crypto Currency or Virtual Currency.
39 In respect of the Working Capital loans from banks, which are secured by hypothecation of current assets, viz. inventories, book
debts and receivables, the quarterly statements of current assets fried by the Company with banks are not in agreement with
the books of account,the summary of reconciliation and reasons of material discrepancies is disclosed below
41 The Short term funds in the nature of Bank Overdraft has been used for construction purpose of factory at Vasanthnarsapura.
Further, we wish to submit that as per AS-16, Borrowing costs include interest paid on short-term borrowings such as working
capital finance that existed when the qualifying asset was being purchased, constructed or produced. One may argue that
working capital finance was not used or meant for financing the construction or acquisition of the asset. This argument is not
however tenable within the framework of AS-16. Para 8 of AS-16 which establishes a key test reads as follows: The borrowing
costs that are directly attributable to the acquisition, construction or production of a qualifying asset are those borrowing costs
that would have been avoided if the expenditure on the qualifying asset had not been made. A positive answer would indicate
the fulfillment of a critical condition for capitalisation. Therefore it is not necessary that a loan should have been taken
separately for the purpose of the qualifying asset. Cash may have been utilised from the existing working capital borrowings to
finance the acquisition/construction of the qualifying asset. Cash may have been generated from current operations and
diverted to finance the acquisition/construction of the qualifying asset. Had the cash been used to reduce the working capital
loan, the borrowing costs would have been lower. In such instances too, borrowing costs are required to be capitalised but only
to the extent the borrowing costs would have been avoided if the investment in the qualifying asset had not been made. This
supports our general knowledge that money is fungible, and therefore in the above situation one should not argue that the
investments in the qualifying assets were not made out of borrowings.. During the current financial year, short term funds in
the nature of Bank Overdraft amounting to Rs.483 Lacs have been utilized for construction purpose and the same is for long
term purpose. Further, the management wish to intimate that the reason for such utilization of short term funds for long term
purpose is on account of price escalation and delayed in implementation of project
42 Operating Leases:
The Company has taken premises on operating lease. The lease rentals debited to statement of profit and loss is Rs 25525199 /-
[Previous year Rs. 29625092/-).
49 Depreciation
Previously, Company employed the WDV method for depreciating its Property,plant & equipment. Under the WDV method,
depreciation expense is calculated as a fixed percentage of the asset's cariying amount each year, resulting in higher
depreciation charges in the initial years and progressively lower charges in subsequent years.
Upon review, the management has determined that the useful life of the assets is longer than previously estimated and that
these assets are expected to provide more consistent economic benefits over their useful lives. Consequently, the decision was
made to switch to the Straight Line Method [SLM], where depreciation is charged uniformly over the useful life of the asset
The impact of such change has resulted in decrease in depreciation expense by Rs 261.54 Lakhs for the year ended 31st March
2024
50 Prior year comparatives
Figures for the previous year has been regrouped or rearranged so as to make them comparable with the figures of the current
period.
51 Company has taken the land at village Yalladadlu - Tumkur for 99 Years Lease.
Lease Deed has been Registered in the name of company with KIADB (W.E.F) dated 22/11/2017.
52 Figures are rounded off to the nearest rupees.
Signatures to Notes 1 to 52
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