(i) The Company has adopted Previous Generally Accepted Accounting Principles (GAAP) as the deemed cost as per the exemption under Ind AS 101. Accordingly, the company has set the Net Block as per Previous GAAP as on 1 April, 2024 as the Gross block under Ind AS.
(ii) Assets pledged as security Exclusive charge of PNB Bank over Commericial Office located at Lower Parel, Mumbai. Exclusive charge of Axis Bank over Industial Property 503/A, R S No 32/P located at Halol. Pari pasu charge of PNB Bank with Axis Bank on Industrial Shed No 121/8, 121/9, 121/20, 121/21, 121/22 GIDC Kalol, on Industrial Shed 121/23, 121/24 GIDC Kalol and Flat no. B-302, Shivam Residency Tower, Vadodara. These assets are subject to the terms and conditions of the respective financing and security documents executed with the lending banks.
(iii) Specific Vehicle is hypothecated as security against Vehicle Loan.
(iv) The Company has not revalued any of its Property, plant and equipment during the year.
(v) The Right of use asset is on account of two leasehold lands acquired by the company for the balance lease period of 78 years and 83 years and the lease premium for the same was paid in full at the inception of the lease. The leasehold land is carried at cost less accumulated amortization.
Note: The company had given loan to the Associate Company for business purpose. The company has charged the interest on above loan at a rate of 10% p.a. The company has received 2,500 Equity shares at price of Rs. 19,000 per shares on account of conversion of unsecured loan given to associates company as on 25th March ,2025 as per the approval of board resolution dated 08th November, 2023.
This includes Advance for material given to White Gold Technologies LLP amounting to Rs.Nil (Rs. P.Y. 379.47 lakhs) (1st April 2024: Rs 227.77 lakhs) in which the director of the company is partner.
Note: Short term loans and advances due by directors or other officiers of the company or any of them either sevarally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member is ? Nil (previous year ? Nil)
The Company has only one class of equity share having a par value of ?10 per share. In the event of liquidation of Companies, the holders of equity shares will be entitiled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders. Each Shareholder of Equity share is entitaled to one vote per share.
(i) Pursuant to Section 52 of the Companies Act , 2013 , Securities Premium account has been utilized against share issue expenses related to Issue management fees, professional fee and other expenses incurred amounting to Rs. 75.00 Lakhs related to the preferential issue of equity shares during the previous year ended 31st March 2025.
(ii) During the year , the Company had converted the 8,60,000 Convertible Equity warrants into Equity Shares on receipt of balance amount of Rs 1960.80 Lakhs towards Share Warrants.
(iii) The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013. On 20th May 2025, final dividend of Rs 0.50 per share (Total dividend Rs. 74.60 lakhs) were proposed by the board of directors which is paid in FY 2025-26 after the approval of shareholders in General Meeting. ( Total Dividend paid in P.Y. Rs 70.30 Lakhs)
Note (i) : Terms of Loans and Security details Secured Loan from Bank-Axis Bank:
Facility Granted: Rs 5000 lakhs (Fund Based Rs 800 lakhs and Non-Fund Based Rs 4200 lakhs)
Rate of Interest: Repo rate 2.75%
Security details:The above facility is primarily secured by hypothecation charge on entire present and future current asset of the company and by way of first charge on the entire movable fixed assets of the company. Exclusive charge of Axis Bank over Industial Property 503/A, R S No 32/P located at Halol as collateral security. Further, the Axis Bank has pari-pasu charge with PNB Bank on Industrial Shed No 121/8, 121/9, 121/20, 121/21, 121/22, 121/23, 121/24 GIDC Kalol and Flat no. B-302, Shivam Residency Tower, Vadodara as collateral security. The facility is further secured by way of lien on fixed deposits of original value of Rs.513.00 Lakhs. The facility is further secured by way of lien on LIC policy in name of Mr. Ankur Shah having surrender value of Rs. 62.00 Lakhs. The facility is further secured by way of personal guarantee of the Managing director Mr. Ankur Shah.
Punjab National Bank:
Facility Granted: Rs 1900 lakhs (Fund Based Rs 400 lakhs and Non-Fund Based Rs 1500 lakhs)
Rate of Interest: Repo rate Mark up 2.65% BSP 0.10% Spread 0.50%.
Security details:The Above facility is primarily secured by paripassu hypothecation charge on entire stock and book debts of the company and by way of exclusive charge over Commericial Office located at Lower Parel, Mumbai as collateral security and Also collaterally secured by way of paripassu charge with Axis Bank Limited on immovable properties situated at Industrial Shed No. 121/8, 121/9, 121/20, 121/21, 121/22, 121/23 & 121/24 GIDC Kalol and Flat no B-302, Shivam Residency Tower. Further , the facility is secured by Fixed deposit of original value Rs. 129.87 Lakhs and personal guarantee of Managing director Mr. Ankur Shah.
41 Disclosure under Indian Accounting Standards
(A) Employee Benefit Plans:
Defined benefit plan:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss.
The following table sets out the status of the gratuity plan and the amounts recognised in the Company's financial statements as at 31st March.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
Other long term Benefit:
The Company's Long Term benefits includes Leave Encashment payable at the time of retirement subject to , policy of maximum leave accumulation of company. The scheme is not funded.
(B) Recognition, measurement and disclosures related to Leases:
(i) As Lessee
(a) Short term Leases
The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less), cancellable long-term leases and for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The expense relating to payments not included in the measurement of the lease liability for short term leases is ? 64.36 Lakhs. (PY. ?. 82.16 Lakhs).
(b) Finance Leases:
The Right of Use (ROU) asset has been created on account of prepayments made by the company towards lease building.
(C) Segment Reporting
Operating segments have been identified based on the internal reports regularly reviewed by the Chief Operating Decision Maker ("CODM”) for the purpose of allocating resources and assessing performance, in accordance with Ind AS 108 - Operating Segments.
The Defence Products Segment constitutes the Company's principal business activity. The Dairy Products Segment represents a relatively small portion of the Company's operations and does not meet the quantitative thresholds prescribed under paragraph 13 of Ind AS 108 for separate reportable segment disclosure.
Accordingly, the Company has only one reportable operating segment, being the Defence Products Segment. Segment-wise information in respect of revenue, results, assets and liabilities has therefore not been presented separately, as the information for the sole reportable segment is the same as that disclosed in the financial results.
The CODM reviews the operating performance of the Company on a consolidated basis, and the segment information presented above appropriately reflects the manner in which the Company's business is managed
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible B22on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
There are no transfers between levels 1 and 2 during the year.
The Company's policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.
ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments.
- the fair value of the remaining financial instruments is determined using discounted analysis.
All of the resulting fair value estimates are included in level 1 or 2 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counter party or own credit risk.
The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, borrowings, capital creditors and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.
The Company's principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company's principal financial assets include loans , trade and other receivables and cash and short-term deposits that arise directly from its operations.
The Company has exposure to credit risk, liquidity risk and market risk arising from financial instruments.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company's activities.
The Company monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
(A) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables.
(i) Trade receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
(ii) Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Maturities of financial liabilities
The tables herewith analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for:
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
For the purpose of Company's Capital Management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the share holders and make adjustments to it in light of changes in economic conditions or its business requirements. The Company's objective is to safe guard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to share holders through continuing growth and maximise the share holders value. The Management and Board of Directors monitor the return of capital as well as the level of dividend to share holders.
The Company determines the amount of capital required on the basis of annual planning and budgeting and its plan for working capital and long-term borrowings. The funding requirements are met through equity, internal accruals and a combination of both long-term and short-term borrowings.
46 Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Transition to Ind AS
These are the Company's first Financial Statements prepared in accordance with Ind AS.
The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31st March, 2026, the comparative information presented in these financial statements for the year ended 31st March, 2025 and in the preparation of an opening Ind AS balance sheet at 1st April, 2024 (The Company's date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).
An explanation of how the transition from previous GAAP to Ind AS has affected the Company's financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.
A.1 Ind AS optional exemptions
Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) and Intangible Assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities.
Accordingly, the Company as elected to measure all of its PPE and Intangible Assets at their previous GAAP carrying value.
A.2 Ind AS Mandatory Exceptions
A.2.1 Estimates
An entity's estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April, 2024 are consistent with the estimates as at the same date made in conformity with previous GAAP.
A.2.2 De-recognition of financial assets and liabilities
Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity's choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
A.2.3 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
C. Notes to First time adoption
1 Right of Use Assets and Lease Liability
Effective 1st April 2024, the Company has adopted Indian Accounting Standards (Ind AS) 116 - "Leases” using the "Modified Retrospective Approach” where at the date of initial application, the Lease Liability is measured at the present value of remaining lease payments discounted at the incremental borrowing rate at the date of initial application and Right-of-use Asset has been recognised at an amount equal to the lease liability. Accordingly, the Company recognised Lease liabilities of Rs. 78.54 and corresponding Right-of-use Assets at an amount equal to the lease liability. Further, This results in decreases of profit by Rs. 5.66 Lakhs as of the 31st March 2025.
2 Provision for Gratuity and Leave encashment
Under the previous GAAP, Gratuity is measured & recognised on actuarial valuation basis for all the employees except for some of the employee. Under Ind AS, Gratuity is now measured for all the employees of the company. The Gratuity have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended 31st March, 2025. This results in increase in profit by Rs. 2.81 lakhs as at 31st March, 2025 and decrease in the reserves by Rs. 9.66 Lakhs as at 1st April, 2024. Further, actuarial gains on remeasurement of the net defined benefit have been regrouped to Other Comprehensive Income (OCI) resulting in Decreases in profit by Rs. 4.47 lakhs as at 31st March, 2025.
Under the previous GAAP, leave encashment is measured based on actual valuation. Under Ind AS, Leave encashment is required to be measured through actuarial valuation as per requirement of Ind AS. The leave encashment have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended 31st March, 2025. This results decreases in profit by Rs. 0.62 Lakhs as at 31st March, 2025 and decrease in the reserves by Rs. 1.67 Lakhs as at 1st April, 2024.
3 Retained Earnings
Retained earnings as at 1st April, 2024 has been adjusted consequent to the above Ind AS adjustments.
4 Deferred tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
5 Actuarial Gain/ Loss
Under the previous GAAP, actuarial gains and losses were recognised in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit of liability/ asset which is recognised in other Comprehensive Income. Consequently, the tax effect of the same has also been recognised in Other Comprehensive Income under Ind AS instead of Profit and Loss.
6 Other Comprehensive Income
Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as "Other Comprehensive Income”, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.
i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.
ii. The Company does not have any transactions with companies struck off.
iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv. The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
v. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding 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 to or on behalf of the Ultimate Beneficiaries.
vi. The Company has not received any fund from any person(s) or entity(ies), 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.
vii. The Company does not have any such transaction which is not recorded in the books of accounts and 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).
viii. The company holds all the title deeds of immovable property in its name.
ix. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
x. The company is not declared as willful defaulter by any bank or financial Institution or other lender.
Employee Stock Option Plan (ESOP)
The share-based payment plan is an employee option plan. The options are equity settled options.
Pursuant to the approval by the shareholders in the annual general meeting of company held on 13th August, 2024, the board or any commitee as may be authorised by the Board, was authorisedto create and grant from time to time, in one or more tranches, "Employee Stock Option Plan 1” for not exceeding 3,00,000 equity shares for the benefit of the employee of the company. The resolution also accorded approval for the Board of Directors, to formulate the Scheme as per broad parameters outlined in the resolution. Pursuant to Scheme framed, the company has granted options to eligible employees of the company under plan. All Stock Options are time based and not linked to any performance. Each options entitle for one equity share. Additionally, the scheme received in-principle approval from the National Stock Exchange (NSE) as on 17th October 2024.
52. In respect of the year ended 31st March 2026, the Board of Directors has proposed a final dividend of Rs. 1.25 per share be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend would result in total cash outflow of Rs. 186.67 lakhs. (PY Dividend Rs 0.50 per Share and total cash outflow of Rs 70.30 lakhs)
53. The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 20th May, 2026. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.
54. Previous year's figures have been reworked, regrouped. Rearranged and reclassified wherever necessary.
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