l) Provisions and Contingent Liabilities and
Contingent Assets
The Company recognizes a provision where there
is a present obligation as a result of past event
that probably requires an outflow of resources and
a reliable estimate can be made of the amount of
the obligation and accordingly all known liabilities
wherever material are provided for. These
estimates are reviewed at each reporting 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 however the existence of which will
be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company.
A contingent asset is disclosed, where an inflow
of economic benefits is probable. Contingent
assets are not recognised in financial statements
since this may result in the recognition of income
that will never be realised. However, when the
realisation of income is virtually certain, then the
related asset is not a contingent asset and is
recognised.
m) Employee Benefits
(i) Employee benefits like salaries, wages etc.
payable wholly within twelve months of
rendering the service are classified as short¬
term employee benefits. A liability is
recognised for the amount expected to be
paid when there is a present legal or
constructive obligation to pay this amount
as a result of past service provided by the
employee and the obligation can be
estimated reliably.
(ii) Contribution towards provident fund and
employee state insurance is made to the
regulatory authorities, where the Company
has no further obligations. Such benefits are
classified as defined contribution plans as
the Company does not carry any further
obligations, apart from the contributions made
on a monthly basis. Such contributions are
charged to the statement of profit and
loss for the period of service rendered by the
employees.
(iii) Short-term employee benefits are recognized
as an expense in the Statement of Profit &
Loss of the year in which the related service
is rendered.
(iv) Gratuity liability is defined benefit obligation
and is provided for on the basis of an actuarial
valuation on projected method made at the
end of the financial year. The Company has
created a trust under the Group Gratuity
Scheme with the Life Insurance Corporation
of India (LIC) and amount paid/payable in
respect of the present value of liability for
past services is charged to the Statement
of Profit & Loss every year. The difference, if
any, between the actuarial valuation of the
gratuity of employees at the year end and the
balance of funds with LIC is provided for as
liability in the books.
n) Borrowing Costs
Borrowing costs that are attributable to the
acquisition or construction of qualifying assets
are capitalized as part of the cost of such assets.
All other borrowing costs are charged to revenue
in the period in which they are incurred.
o) Foreign Exchange Transactions
(i) Assets and liabilities relating to foreign
currency transactions remaining unsettled
at the year-end are converted into Indian
rupees at closing rates and any gain or loss
arisen is adjusted in Statement of Profit
and Loss.
(ii) Gains/losses arising out of fluctuations in
foreign exchange rates between the
transaction date and settlement date are
recognized in the Statement of Profit and Loss
under the head "Exchange Rate Fluctuation".
(iii) The difference between the forward rate and
the exchange rate on date of inception of a
forward contract in respect of forward
contracts with underlying assets or liabilities
is recognized as income or expense and is
amortized over the life of the contract.
(iv) Forward exchange contracts entered to hedge
the foreign currency risk are marked to market
as at the year end and the resultant exchange
gain or loss is recognised in the Statement
of Profit & Loss.
(v) Non-monetary foreign currency items are
carried at cost and accordingly the investment
in foreign subsidiary is expressed in Indian
Currency at the exchange rate prevailing at
the date of the transaction.
p) Assessment of risks
The Company follows the process of assessing
the financial risks relating to its business activities.
Its principal financial liabilities comprising
borrowings, trade and other payables etc. are part
of its working capital for the purpose of its business
operations and for the purpose of funding its
principal financial assets including cash and cash
equivalents, trade receivables and security
deposits directly derived from its operations. The
Company is exposed to credit risk, liquidity risk
and market risk summarised as under:
Credit Risk:
Credit risk may arise on not meeting of its financial
obligations by other party, primarily relating to trade
receivables and may lead to financial loss to the
Company. Companyduring the course of its
business operations to reduce the risk with trade
receivables, follows the mechanism of setting
credit limits to respective parties and reviews
their outstanding on time to time basis to access
the likely impairment.
Liquidity Risk:
Liquidity risk may result in not meeting Company's
financial obligations and to mitigate the same and
meet its financial obligations in timely manner the
Company reviews its Trade Payables and other long
term and short-term financial liabilities on time to
time basis and manages the resources availability
of cash and cash equivalents and credit lines and
borrowing facilities from banks.
Market Risk
Market risk may be the risk of fair value of
Company's assets and liabilities on account of
change in foreign exchange rates and applicable
rate of interest on borrowings having variable
interest terms. Exposure of the Company to
foreign exchange risk majorly relates to its
operating activities to the extent denominated
in foreign currency and the Company goes for
forward exchange contracts to mitigate the risk.
Similarly to get de-risked to maximum extent from
changes in variable rate of interest, depending upon
its funds utilization plan on time to time basis the
Company further gets the part of related facilities
converted into fixed rate for specific period.
Price Risk:
Key raw materials used in the manufacturing of
footwear are EVA, PU material etc. are subject to
price volatility depending upon the fluctuation in
the price of crude oil and it's derivatives. To mitigate
the pricerisk the Company takes several measures
including continuous monitoring the price trend of
key materials, value engineering of goods and
passing of the cost on the product wherever
required in timely manner.
q) Fair Value Measurement
The fair value of the assets and liabilities are
assessed at balance sheet date considering normal
circumstances as per the following:
a) Cash and cash equivalents, bank balances
other than cash and cash equivalents, trade
receivables, trade payables, borrowings and
other financial assets and liabilities at their
carrying amount due to their short-term
nature.
b) Financial assets and liabilities with fixed and
variable interest rates are evaluated by the
Company based on parameters such as
interest rates and individual credit worthiness
of the counterparty.
c) Assessment by the Management about the
carrying value of financial assets including
leasehold rights and obligations due to be
amortised.
d) Forward exchange contracts using exchange
rates at the balance sheet date.
r) Provision for Taxation
Provision for taxation is made taking into
consideration the provisions of Income Tax Act,
1961. Adjustment, if any, arising out of the
assessment is made in the year the assessment
is completed. Current tax assets and liabilities
are offset when there is a legally enforceable
right to set-off the recognised amounts and there
is an intention to settle the asset and the liability
on a net basis
Income tax expense represents the sum of current
and deferred tax. Tax expense is recognised in the
statement of profit and loss except to the extent
that it relates to items recognised directly in equity
or other comprehensive income, in such case the
tax expense is also recognised directly in equity or
in other comprehensive income.
Any subsequent change in income tax on
items initially recognised in equity or other
comprehensive income is also recognised in
equity or other comprehensive income, such
change could be for change in tax rate.
s) Provision for Deferred Taxation
Deferred tax is recognised on temporary timing
differences between the carrying amount of assets
and liabilities in the balance sheet and the
corresponding tax bases used in the computation
of taxable profit and are accounted for using the
balance sheet approach.
Deferred tax liabilities are recognised for all taxable
temporary timing differences and deferred tax
assets are recognised for all deductible temporary
timing differences, carry forward tax losses and
allowances to the extent it is probable that future
taxable profits will be available against which those
deductible temporary differences, carry forward tax
losses and allowances can be utilised.
Deferred tax asset and liabilities are measured
at the tax rates that are expected to apply in
the year when the asset is realised or liability is
settled, based on tax rates and tax laws that have
been enacted or substantially enacted at the
reporting date.
The carrying amount of deferred tax asset, if any,
is reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available against
which the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when
there is legally enforceable right to set-off current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority
and no deferred tax asset is recognized as on the
date of reporting.
35. Based on the recommendation of the Nomination and
Remuneration Committee, the Board of Directors
proposed a special incentive of ' 300 lakhs for three
Executive Directors in recognition of their performance
for the financial year ended 31st March 2025. The
proposal was approved by the shareholders through
a postal ballot process concluded on 22nd May 2025.
However, in its meeting held on 28th May 2025, the
Board, after reviewing the financial results for the
said financial year, decided to withhold the
disbursement of the approved incentive, which was
also waived by the concerned Directors. Consequently,
the said incentive has not been recognised as an
expense, nor has any provision been made in the
Statement of Profit and Loss for the year ended
31st March 2025.
36. In the opinion of the Board and to the best of its
knowledge, the value of realization of current assets,
loans and advances in the ordinary course of business
would not be less than the amount at which they
have been stated in the Balance Sheet. However,
confirmation/reconciliation of some customers balance
is pending as on the date of signing of the financial
statement.
37. During the course of its business the Company usually
extends credit terms for more than six months to some
of its customers more particularly to overseas and
institutional customers and during the year ended 31st
March, 2025 the outstanding for more than six months
from customers has increased to ' 2323.85 Lakhs
as against ' 1,884.61 Lakhs as on 31st March, 2024.
38. Against the arbitrary deductions and claims made by the
appropriate authority on account of shortages, delayed
deliveries, etc., an amount of ' 436.57 Lakhs was
withheld while releasing payments ' 2,246.32 during the
financial year 2022-23. These deductions pertained to a
government tender supply executed by the Company
during the financial year 2019-20, with a total invoice
value of ' 2,682.88 Lakhs.
Against the said arbitrary deductions, the Company had
filed a petition before the Hon'ble High Court of Andhra
Pradesh seeking the appointment of an Arbitrator, which
was duly allowed. Pursuant to the arbitration proceedings,
an award has been passed in favour of the Company by
the Learned Arbitrator vide order dated 26th December
2024, granting a claim amount of ' 1,173.74 Lakhs,
including interest. The award also entitles the Company to
further interest @ 8% p.a. from the date of the award
until actual realization.
However, the awarded amount has not been recognized
in the financial statements for the year ended 31st March
2025, and will be accounted for on realization basis, net
of the share attributable to related vendors. As on the
date of signing of the balance sheet, the Company is in
the process of filing an execution petition before the
Hon'ble District Judge, Vijayawada, for enforcement of
the award.
As disclosed in earlier periods, the above said deductions
amounting to ' 436.56 Lakhs had been written off in the
financial year 2022-23 i.e the year of receipt, after
adjusting ' 268.82 Lakhs against outstanding dues
payable to the related vendors. Accordingly, there is no
impact on the profit and loss statement for the financial
year 2024-25 on this account.
40. Provision for doubtful debts:
During the year out of overdue outstanding towards
customers and advances to vendors, the Company
has considered debts/advances aggregating to
' 782.79 Lakh (Previous year ' 437.12 Lakh) as
doubtful debts/advances/securities and also has
withdrawn ' 40.24 Lakh (Previous year ' Nil Lakh
out of the provisions made in the earlier years for
the same and has written off as bad debts ' 37.54 Lakh
(Previous year ' Nil Lakh). Further the difference of
the provision made and amount withdrawn during
the year, detailed as under, has been charged to
Statement of Profit & Loss for the year and the balance
has been carried in the balance sheet.
43. The Company has taken various retail stores and
warehouses under operating lease arrangements.
The lease agreements generally have an escalation
clause and there are no subleases. These leases are
generally not non-cancellable and are renewable by
mutual consent on mutually agreed terms. There are
no restrictions imposed by lease agreements.
The leasehold rights are depreciated/amortized using
the straight line method from the commencement
date over the shorter of lease term or useful life of
right to use.
44. The Company implemented the Ind-AS-116 with
effect from 1 stApril, 2019 and accordingly is
considering all the persisting leasehold rights having
maturity for more than 12 months including entered
during the year 2024-25 at its present value as
Intangible Rights in Schedule of Fixed Assets and is
amortizing the leasehold rights on year on year basis.
During the year 2024-25 the Company has
capitalized/(adjusted)the present value of leasehold
rights entered during the year (net of terminated)
for ' 2,420.68 Lakhs (Previous year ' 2,446.58 Lakhs)
and has amortized the leasehold rights (net of
terminated) for ' 1936.62 Lakhs (Previous year
' 2,076.26 Lakhs).
Further while amortizing the leasehold rights for
the year, decrease in leasehold obligations agreed
with the some of the landlords has not been
factored being temporary in nature and the said
decrease in leasehold obligations aggregating to
' 91.50Lakhs (Previous year ' 186.39 Lakhs) has been
passed on through Profit & Loss account for the year.
54. Contemplating the long-term benefits for unlocking
the shareholders' value through acquisition of the
tangible and intangible assets including business
rights of two partnership firms, in which few Directors
of the Company are interested as partners, namely
Liberty Enterprises (LE) & Liberty Group Marketing
Division (LGMD), the Company had entered into a
Memorandum of Understanding (MOU) on March 31,
2015, with these two Partnership Firms for acquisition
of their respective business of footwear. Since then,
due to certain technical reasons, this MOU and the
subsequent MOU for the related matter have not
been materialized to the envisaged extent. The
Company, keeping in view the protection of its
shareholders interest and alsoto ensure long term
continuance of the arrangements with these
partnership firms till materialization of the acquisition
of their respective business of footwear has extended
the validity of earlier executed agreements and is
assessing the business rights of the two firms with its
availability till March 2028.
During the year in terms of above referred
arrangements, the Company has paid/provided for
franchise fee of ' 115 Lakh (Previous year ' 115 Lakh)
to LE and ' 750.00Lakh (Previous year ' 756.03 Lakh)
to LGMD and in terms of the renewed agreement
dated April 3, 2013 of the Company with Liberty
Footwear Co. (LFC), another Partnership Firm of the
group and owner of trademarks "LIBERTY", for granting
exclusive rights of usage of the trademark "LIBERTY"
for a period of fifteen years from April 1,2013 onwards,
the Company has paid/provided for trademark license
fee of ' 1,649.93 Lakh (Previous year ' 1,377.43 Lakh)
to LFC.
As disclosed in the previous financial year i.e. 2022-23,
certain partners of Liberty Enterprises (LE), Liberty
Group Marketing Division (LGMD) and Liberty Footwear
Company (LFC) had issued notices to the Company
seeking termination of the ongoing franchise/
trademark license arrangements with effect from
April 1, 2023. The Company has franchise/trademark
license arrangements with LE, LGMD and LFC since
2003 duly renewed from time to time with latest
arrangements dated 29th March, 2018 in case of
LE and LGMD and 3rd April 2013 in case of LFC and
all the said arrangements are valid till 31st March, 2028
subject to renewal on mutually agreed terms on or
before expiry of the existing tenure. The Company, in
response to termination notice of partners of LE, LGMD
and LFC, duly reiterated its contractual rights to
continue the use of tangible and intangible assets of
the said partnership firms until March 31, 2028, as per
the respective agreements in force.
Invoking the arbitration clauses embedded in the
agreements with LGMD and LFC, the Company
initiated legal proceedings and filed petitions under
Section 9 of the Arbitration and Conciliation Act, 1996
before the appropriate court at Karnal. Considering
the Company's submissions, the Hon'ble Court, vide
its orders dated March 16, 2023 and July 20, 2023
respectively, directed all parties to maintain status
quo until further orders.
Subsequently, the Company also filed applications
under Section 11 of the Arbitration and Conciliation
Act, 1996 before the Hon'ble Punjab and Haryana High
Court seeking appointment of arbitrators, which were
duly allowed. As on the date of signing of these
financial statements:
- The Learned Arbitrator, in the matter of LGMD and
the Company, has passed an award confirming
continuation of the existing arrangement with
LGMD until its validity period.
- The arbitral proceedings in the matter of LFC and
the Company are currently ongoing and is pending
for adjudication before the Learned Arbitrator.
The Company continues to operate under the
framework of the original agreements, and the above
developments have been considered in the preparation
of these financial statements.
Further to ensure the usage of the right available under
these agreements continued beyond 31st March,
2028, the Board of Directors of the Company while
approving the financial statement for the previous year
had also considered for seeking extension of its
existing arrangements of Franchise/ Royalty beyond
31st March 2028 subject to mutual understanding
and the related legal compliance. Though based upon
the understanding had with some of the partners of
respective firms as well as overall assessment of the
above-referred ongoing arbitration proceeding, the
Company is quite hopeful about continuation of the
existing arrangements even beyond 31st March, 2028
and/or acquisition of the related intangible assets of
the respective firms over a period of time, however to
avoid any probable risk in case of non-materialization
of the above understanding well within the reasonable
period, the Board of Directors of the Company are also
contemplating an alternative strategy to ensure the
consistency of its business.
55. During the year, Sh. Adesh Kumar Gupta, the erstwhile
CEO & Executive Director (the Petitioner) along with
few other shareholders (the Petitioners), had filed
a Petition No. CA No. 179/2023 and CP No.
89/Chd/Hry/202 before the Hon'ble National Company
Law Tribunal (NCLT) at Chandigarh u/s 241 & 242 of the
Companies Act, 2013 against his removal initiated in
accordance to the provisions of Section 169 of the
Companies Act 2013 also alleging certain acts of
oppression and mismanagement on the part of the
Company and its management.
The Company contested the same by rebutting all
his allegations duly leveling counter allegations
against him.
The above referred petitions filed by the erstwhile
CEO & Executive Director were dismissed by the
Hon'ble Bench vide its order dated 20/11/2023 on the
technical ground of maintainability being not having
adequate shareholding for filing the petition and the
Petitioners have preferred their appeal before the
Hon'ble National Company Law Appellate Tribunal
(NCLAT) against the order passed by the NCLT,
Chandigarh and have also been dismissed by the
Hon'ble NCLAT. As per the information available with
the Company, the Petitioners have preferred an
appeal before Hon'ble Supreme Court of India.
However, the same is yet to be listed as on the date
of signing of this balance sheet.
56. During the year 2023-24 owing to some reservations
emerged subsequently with the supplies viz.-a.-viz.
billed by few of the Company's vendors, payments
against their supplies were put on hold for the want
of few more details/supporting required for releasing
the payments. In the meanwhile, due to earlier
availability of multi authorisation with the authorised
signatories the part payment against the these
supplies was released to the vendors by one of the
signatory ignoring the board mandate of the joint
signatures for release of payment through bank. The
cheques issued were not as per the authorisation
matrix approved by the board and also not as per
the bank mandate due to which it got dishonoured
by the bank.
Against such dishonoring the concerned vendors have
filed criminal complaints under Section 138 of the
Negotiable Instrument Act, 1881 against three of the
Executive Directors and the Company as well before
the Judicial Magistrate at Panipat (Haryana). The
related matter with the vendors is yet to be concluded
and meanwhile to protect the interest of the respective
Directors, the Company has preferred a revision before
the Hon'ble High Court infew of the related matters
which is pending before the Hon'ble High Court for
adjudication. The Company is further pursuing for
similar course in rest of matters as well.
Also in the previous year, the erstwhile CEO and
Executive Director Sh. Adesh Kumar Gupta has
incurred unapproved expenses for ' 15.39 Lakhs. The
Company has considered this amount as recoverable
from him. Accordingly the advance recoverable in cash
or kind or for the value to be received and considered
good aggregating to ' 733.14 Lakhs vide Note no. 11 of
financial statements includes the same. Sh. Adesh
Kumar Gupta, in his defamation suit filed before the
Hon'ble Delhi High Court against Sh. Sunil Bansal,
erstwhile Executive Director and Sh. Adish Gupta,
Executive Director, has referred these expenses to
support some contention of the said suit. The same
were vehemently objected by the Company and the
related matter is pending before the Hon'ble Delhi
High Court for adjudication.
57. Out of the total vehicles registered in the name of
the Company few vehicles having current book value
of ' 147.38 Lakhs which are earlier given to the
former employees of the Company are not in the
possession of the Company and the legal proceedings
are being initiated for the recovery of the possession
of its vehicles.
58. During the year 2023-24, there had been a fire incident
in one of the block of Company's Central Warehouse
(CWH) situated in rented premises in Panipat (Haryana)
on February 07, 2024 due to electric short-circuit which
had resulted in complete damage of stocks of finished
goods and packing materials stored there for the value
aggregating to ' 1763.92 Lakhs. In addition there had
been a complete loss of rented building of particular
block including additions made by the Company on the
superstructure and plant & machinery (including petty
& office equipment) having tentative value of ' 150.79
Lakhs including third party claim for loss of property
estimating to ' 65 Lakhs (net of salvage). Against the
reported loss, claim filed and the management's
estimated recoverable amount of insurance claim
for ' 1,425 Lakhs, during the year the Company has
received the gross claim for ' 1,353.35 Lakhs wit
no consideration of loss of Input Tax Credit (ITC) against
the goods lost and liability discharged by the Company
aggregating to ' 145.04 Lakhs. Accordingly the
differential of claim estimated and realized amounting
to ' 71.45 Lakhs, amount of GST liability discharged
for ' 145.04 Lakhs and the amount spent on
reconstruction of the particular block of the rented
building over and above the estimated amount of
' 65 Lakhs i.e. ' 29.03 Lakhs has been charged to Profit
& Loss account for the year under Exceptional Items.
59. During the year the Company, in its exercise to
physically verify and rationalize its gross block, has
further leveled out its fully depreciated Gross Block
of Tangible Assets (Not under Lease) aggregating
to ' 1,278.44 Lakhs (Previous year ' 4,606.95 Lakhs),
detailed hereunder, and the Sale/Adj. during the
year aggregating to ' 1,278.44 Lakhs (Previous year
' 4,958.65 Lakhs) in Note No. 2-Fixed Assets includes
the same:
61. The assessment of the Company in respect of Income
Tax is completed up to the Assessment Year 2023-24
under faceless scrutiny assessment in accordance
to the provisions of section 143(3) of the Income Tax
Act, 1961 vide order dated 18.03.2025.
62. a) Assessment Year 2020-21
i. Scrutiny Assessment
The Company's assessment for the Assessment
Year 2020-21 was completed under scrutiny by
the National Faceless Assessment Unit (NFAC)
vide order dated 27.03.2023. The assessed
income was determined at ^4,038.41 lakhs as
against the returned income of ^2,014.05 Lakhs.
The variation primarily arose due to arbitrary
disallowances and additions, particularly by
treating recurring revenue expenditure in the
nature of trademark license fees paid/payable
annually as per long-standing agreements
effective since 2003 and on prevailing terms since
2013 as expenditure of enduring nature. These
disallowances were made by misinterpreting
the agreements, overlooking applicable legal
provisions, ignoring detailed submissions made
during the course of assessment proceedings
(including virtual hearings), and disregarding the
Company's past 16 years of assessment history.
The Company has preferred an appeal before the
appropriate appellate authority and, based on legal
opinion and existing precedents in Company's
matter for assessment year 2023-24, is confident
of a favourable outcome.
ii. Grievance petition before Jurisdictional
Local Committee on High-Pitched Scrutiny
Assessment & Related WRIT Proceedings
In addition to the above, considering the high-
pitched and unreasonable nature of the
assessment framed for AY 2020-21, the Company
had filed a grievance petition before the
Jurisdictional Local Committee constituted by
the CBDT, intended as an administrative additional
remedy for such cases under both faceless and
traditional regimes. However, the grievance was
disposed of in a cursory and mechanical manner,
without granting an opportunity of hearing or
considering the substance of the petition.
Aggrieved by this, the Company filed Civil Writ
Petition (CWP No. 6536 of 2024) before the
Hon'ble High Court of Punjab & Haryana. The
petition was dismissed, with liberty granted to
raise all its grounds/argumentswith regard to
challenge the assessment order before the
appellate authority. A subsequent Review Petition
(RA-CW-136-2024) was also dismissed. The
Company then filed a Special Leave Petition (SLP)
before the Hon'ble Supreme Court of India (Diary
No. 26631/2024), which was also disposed of
without interference, while directing the CIT
(Appeals) [NFAC-Appeals] to dispose it of as
expeditiously as possible. A Review Petition
against this order has been filed by the Company
before the Hon'ble Supreme Court on 29.03.2025
(Diary No. 16721/2025).
iii. Revision Proceedings u/s 263 of the Income
Tax Act, 1961
The Income Tax Department has initiated revision
proceedings under Section 263 of the Income Tax
Act, 1961, against the scrutiny assessment order
dated 27.03.2023, vide order dated 28.03.2025.
The Company has challenged this revision order
by filing an appeal before the Hon'ble Income Tax
Appellate Tribunal (ITAT), New Delhi on
02.04.2025, which is presently pending for
adjudication.
b) Assessment Year 2016-17 (Reassessment
u/s 148A)
Further, proceedings were initiated by the Assessing
Officer under Section 148A(d) of the Income Tax
Act, 1961, vide order dated 05.04.2023, alleging
escaped income amounting to ' 1,557.99 lakhs for
Assessment Year 2016-17. The alleged issues pertain
to salary payments of ' 64.07 lakhs, foreign
remittances of ' 1,454.43 lakhs, and export shipping
bills amounting to ' 39.48 lakhs, based on data
uploaded on the Income Tax Department's Insight
portal. These proceedings have been stayed by the
Hon'ble High Court of Punjab & Haryana in CWP
No. 13252 of 2023 filed by the Company. The next
date of hearing is scheduled for 20.08.2025.
63. For the current year, a Deferred Tax Liability has been
recognized based on cumulative timing differences
amounting to ' 51.25 lakhs (Previous year: ' Nil),
primarily arising due to differences in depreciation
as per the Income Tax Act, 1961 and the Companies
Act, 2013. The recognition of deferred tax is in
accordance with the applicable accounting standards
71. As per Company's assessment about recoverability
and carrying values of its assets comprising of
receivables, inventories, plant and equipment,
intangible assets, it expects to recover the carrying
amount of these assets.
72. The current year and previous year figures have been
rounded off to the nearest lakh of rupee upto two
decimal places unless stated otherwise.
73. The Company does not hold any benami property and
no proceedings have been initiated or pending against
the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and the
rules made thereunder.
74. The Company has duly filed Quarterly returns or
statements, Unaudited and Audited as the case may
be, of its current assets with the banks and are in
agreement with its books of accounts.
75. The Company is not declared as willful defaulter by
any bank in accordance with the guidelines on wilful
defaulters issued by the RBI.
76. The Company has not entered into any transactions
with companies struck off under section 248 of the
Companies Act, 2013. This is determined to the
extent of such parties have been identified on the
basis of information available with the Company.
77. The Company has duly registered all the charges or
satisfaction thereof with Registrar of Companies (ROC)
within the statutory period.
78. The number of layers prescribed under clause (87)
section 2 of the Companies Act, 2013 read with
Companies (Restriction on number of Layers) Rules,
2017 is not applicable to the Company
79. During the year, no scheme of arrangements has been
approved by the competent authority in terms of
sections 230 to 237 of the Companies Act, 2013.
80. The Company has not advanced or loaned or invested
funds to any other persons (intermediaries) with the
understanding that the intermediary shall directly or
indirectly lend or invest in other persons or provide
any guarantee in any manner whatsoever on behalf
of the Company (ultimate beneficiary). The Company
has also not received any fund from any persons with
the understanding that the Company shall directly
lend or invest or provide any guarantee to any other
persons on behalf of the funding party.
81. The Company does not have any transactions which
are 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.
82. During the year, the Company has not traded or invested
in crypto currency or virtual currency.
83. The Company has not revalued its property, plant and
equipment or intangible assets or both during the
current or previous year.
84. Fair Value Measurements
Fair value of financial assets and liabilities is normally
determined by references to the transaction price or
market price and in case of non-reliably determinable,
the Company determines the same using valuation
techniques that are appropriate in the circumstances
and for which sufficient data are available, maximising
the use of relevant observable inputs and minimisin
the use of unobservable inputs as per the following:
a. Foreign exchange forward contracts are valued
using market observable inputs such as foreign
exchange spot rates and forward rates at the
end of the reporting period.
b. Unquoted equity instruments where most recent
information to measure fair value is not
determinable, cost has been considered as best
estimate of fair value.
c. The carrying amount of other 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 any significant
difference that the carrying amounts would be
significantly different from the values that would
eventually be received or settled.
Fair Value Hierarchy
To provide an indication about the reliability of the
inputs used in determining fair value, the Company has
classified its financial instruments into the three levels
prescribed as per Ind-AS 113 "Fair Value Measurement":
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