k) Provisions
The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the obligation. 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 in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
l) Earnings per share
Basic earnings per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average
number of shares outstanding during the year. Diluted earnings per share amounts are computed after adjusting the effects of all dilutive
potential equity shares except where the results would be anit-dilutive. The numbers of shares used in computing diluted earnings per share
comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number
of equity shares, which could have been issued on the conversion of all dilutive potential equity shares.
The management assessed that Cash and Cash equivalents, loans, trade payables and other current liabilities/assets approximate their carrying amounts largely due to the short-term maturities of these instruments.
Note 20: Financial risk management
The company’s activities exposes it to credit risk.
A) Credit risk
The company is exposed to credit risk, which is the risk that counter party will default on its contractual obligation resulting in a financial loss to the company. Credit risk arises from cash and cash equivalents, financial
assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to loans given
i) Credit risk management
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether
there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and
supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business.
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligations.
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit
Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan of the Company. Where loans or receivables have been written off. the
Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
a) Contingent liabilities
During the earlier years the company had initially received Show Cause Notice demanding duty of Rs. 1.45,65.801/- which in view of the department escaped assessment
on import of sulphur for the chemical division in the year 2004-2005 to 2005-2006. Representations were made disputing the charge of the duty. During the previous years
order had been received from Custom Authorities raising Demand of Rs. 75,49,799/-. The company had filed appeal against the same. The Commissioner (Appeals) via
order dated 24.03.2021 set aside the demand raised and remanded the matter back to the original adjudicating authority for re-assessment However, as a matter of
prudence the directors decided to continue the provision of Rs. 36,41,450/- made in the previous year. Balance of Rs. 39,08,349/- (Previous Year Rs. 39,08,349/-) is shown
as Contingent Liabilities.
In the view of management IND AS 19- Employee benefits i.e Employee's Provident fund .Bonus .Employee's State Insurance Act,1938
Gratuity Act is not applicable to Company
Note 25:0eferred Tax
Deferred tax assets are recognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available
except that deferred tax assets arising on account of unabsorbed depreciation and losses are recognised if there is virtual certainty that sufficient
future taxable income will be available to realise the same, therefore managment has not recognised deferred tax assets during the year
No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition)
Note 27: Act, 1988 (45 of 1988) and rules made thereunder.
The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act,
Note 28: 1956-
Note 29: The Company has neither traded nor invested incrytpo currency or virtual currency during the year.
Note 30:Reclassification/Regrouping of figures
The Previous year figures have been regrouped/reclassified, whenever necessary to conform to the current presentation as per the Schedule III of
Companies Act 2013.
As per our report of even date attached
KANU DOSHI ASSOCIATES LLP
CHARTERED ACCOUNTANTS FOR AND ON BEHALF OF THE BOARD
Firm's Registration Numbar: 104746VWW100096
KUNAL VAKHARIA VISHAL THAKKAR BHAVIKA THAKKAR
PARTNER MANAGING DIRECTORCFO DIRECTOR
MEMBERSHIP N0.148916 DIN No 09798551 DIN No 09854905
ANJALI BAMBORIA
COMPANY SECRETARY
PLACE : MUMBAI PLACE : MUMBAI
Date: 28th May, 2024 Date: 28th May. 2024
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