1.17. Provisions and Contingent Liabilities
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past
event exists and it is probable that an outflow of resources embodying economic benefits will be required
to settle such obligation and the amount of such obligation can be reliably estimated.
If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.
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 embodying economic benefits or the
amount of such obligation cannot be measured reliably. When there is a possible obligation or a present
obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote,
no provision or disclosure is made.
1.18. Employee Benefits
Short Term Employee Benefits
Employee benefits payable wholly within twelve months of receiving employee services are classified
as short-term employee benefits. These benefits include salaries and wages, bonus, short term
compensated absences, ex-gratia, etc. The undiscounted amount of short-term employee benefits
to be paid in exchange for employee services is recognized as an expense as the related service is
rendered by employees.
Other long-term employee benefit obligations
Entitlements to annual leave and sick leave are recognized when they accrue to employees. Sick
leave can only be availed while annual leave can either be availed or encashed subject to a restriction
on the maximum number of accumulation of leave. The Company determines the liability for such
accumulated leaves using the Projected Accrued Benefit method with actuarial valuations being
carried out at each Balance Sheet date. Remeasurements as a result of experience adjustments and
changes in actuarial assumptions are recognized in the Statement of Profit and Loss.
Defined Privilege Leave Benefit plan
Entitlements to annual leave, which are expected to be availed and encashed within 12 months
from the end of the year are treated as short term employee benefits. The obligation towards the
same is measured at the expected cost of leave encashment as the additional amount expected
to be paid as a result of the unused entitlement as at the year end. Leave encashment, which are
expected to be availed or encashed beyond 12 months from the end of the year are treated as
other long-term employee benefits.
The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the
end of each year. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the
year in which they arise.
Post-Employment Benefits
Defined Contribution plans
Defined contribution plans are employee state insurance scheme and Government administered
pension fund scheme for all applicable employees and superannuation scheme for eligible
employees.
Provident Fund scheme
Defined Contribution Plans such as Provident Fund etc., are charged to the Statement of Profit
and Loss as incurred. The contributions are made to a government administered Provident Fund
towards which the Company has no further obligations beyond its monthly contributions.
Recognition and measurement of defined contribution plans
The Company recognizes contribution payable to a defined contribution plan as an expense in
the Statement of Profit and Loss when the employees render services to the Company during
the reporting period. If the contributions payable for services received from employees before
the reporting date exceed the contributions already paid, the deficit payable is recognized as a
liability after deducting the contribution already paid. If the contribution already paid exceeds
the contribution due for services received before the reporting date, the excess is recognized
as an asset to the extent that the prepayment will lead to, for example, a reduction in future
payments or a cash refund.
Defined Benefit plans
Defined Benefit Gratuity plan
The Company operates a defined benefit gratuity plan for employees. The company contributes
to a separate entity (a fund) towards meeting the gratuity obligation.
Planned assets are invested in debt instruments.
Recognition and measurement of Defined Benefit plans
The cost of providing defined benefits is determined using the Projected Unit Credit method with
actuarial valuations being carried out at each reporting date. The defined benefit obligations
recognized in the Balance Sheet represent the present value of the defined benefit obligations as
reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined
benefit obligations resulting from this calculation) is recognized representing the present value
of available refunds and reductions in future contributions to the plan.
All expenses represented by current service cost, past service cost, if any, and net interest
on the defined benefit liability / (asset) are recognized in the Statement of Profit and Loss.
Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses
and the return on the plan assets (excluding amounts included in net interest on the net defined
benefit liability/asset), are recognized in Other Comprehensive Income. Such remeasurements
are not reclassified to the Statement of Profit and Loss in the subsequent periods.
The Company presents the above liability/(asset) as current and non-current in the Balance
Sheet as per actuarial valuation by the independent actuary; however, the entire liability towards
gratuity is considered as current as the Company will contribute this amount to the fund within
the next twelve months.
1.19. Cash and Cash Equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand,
bank balances, demand deposits with banks where the original maturity is three months or less and other
short term highly liquid investments net of bank overdrafts which are repayable on demand as these form
an integral part of the Company’s cash management.
1.20. Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise,
events after the balance sheet date of material size or nature are only disclosed.
1.21. Key Accounting Estimates And Judgments
The preparation of the Company’s financial statements requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Critical accounting estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below:
Income taxes
The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits
for the purpose of paying advance tax, determining the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax positions (Refer Note 28).
Property, Plant and Equipment
Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected
useful life and the expected residual value at the end of its life. The useful lives and residual values of
Company’s assets are determined by the management at the time the asset is acquired and reviewed
periodically, including at each financial year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact their life, such as changes in technical
or commercial obsolescence arising from changes or improvements in production or from a change in
market demand of the product or service output of the asset.
Defined Benefit Obligation
The costs of providing gratuity and other post-employment benefits are charged to the Statement of
Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit is
derived from the employees’ services. The costs are assessed on the basis of assumptions selected by the
management. These assumptions include salary escalation rate, discount rates, expected rate of return on
assets and mortality rates. The same is disclosed in Note 34 ‘Employee benefits’.
Fair value measurement of Financial Instruments
When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques,
including the discounted cash flow model, which involve various judgments and assumptions.
Estimation of fair value
The best evidence of fair value is current prices in an active market for similar properties. Since investment
properties leased out by the Company are cancellable and non-cancellable leases, the market rate
for sale/purchase of such premises are representative of fair values. Company’s investment properties
are at a location where active market is available for similar kind of properties. Hence fair value is
ascertained on the basis of market rates prevailing for similar properties in those location determined
by an independent registered valuer, as defined under Rule 2 of The Companies (Registered Valuers and
Valuation) Rules 2017, and consequently classified as a level 2 valuation.
c) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 2/- per share. Each Equity
Shareholder is entitled to one vote per share. In the event of liquidation of the Company, the equity
shareholders will be entitled 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
shareholders. The final dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
Notes:
(1) Cash credit facility,Bank Guarantee, Export Packing Credit facility from the State Bank of India are secured
by the Pledge/Hypothecation of stock, book debts, Plant & Machineries and collateral secured by equitable
mortgage of Land and Building situated at Unit I situated at-C/1-39/13-16, GIDC, Naroda, Unit- II situated
at Plot no 11 & 12, Hitendranagar Sahakari Audyogik Vasahat Ltd., Nr Gujarat Agro, N H Road, Naroda, &
Unit- IV situated at Phase - III, Plot no 17/1, Naroda, GIDC, Ahmedabad of Mazda Limited, Mutual Fund as
margin money for bank guarantee and also personally guaranteed by Mrs. Shanaya Mody Khatua, who is
the whole time director of the company.
(2) Bank Guarantee & Overdraft facility from ICICI Bank are secured by providing Mutual funds as Collateral
security.
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.
Types of inputs for determining fair value are as under:
Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted prices
(unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted
equity shares, and mutual fund investments.The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the
counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on 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. This is the case for unlisted equity securities included in level 3.
B. Measurement of fair values
i) Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3.
ii) Transfers between Levels 1 and 2
There have been no transfers between Level 1 and Level 2 during the reporting periods.
iii) Transfer out of Level 3
There were no movement in level 3 in either directions during the financial year ending on 31 March, 2026
and 31 March, 2025.
C. Financial risk management
The Company’s financial liabilities comprise mainly of borrowings, trade payables and other payables. The
Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances
with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’)
oversee the management of these financial risks. The Risk Management Policy of the Company formulated
by the Board, states the Company’s approach to address uncertainties in its endeavor to achieve its stated
and implicit objectives. It prescribes the roles and responsibilities of the Company’s management, the
structure for managing risks and the framework for risk management. The framework seeks to identify,
assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s
financial performance.
The following disclosures summarize the Company’s exposure to financial risks and information regarding
use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been
provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash
flows and financial position of the Company.
1) 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 three types of risks: interest rate risk,
currency risk and other price risk. Financial instruments affected by market risk includes borrowings,
investments, trade payables, trade receivables, loans and derivative financial instruments.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Since the Company has insignificant
interest bearing borrowings, the exposure to risk of changes in market interest rates is minimal.
The Company has not used any interest rate derivatives.
b) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
due to changes in foreign exchange rates.The Company operates, in addition to domestic
markets, significantly in international markets through its sales and services in overseas and
purchases from overseas suppliers and is therefore exposed to foreign exchange risk arising
from foreign currency transactions, primarily with respect to the USD & GBP. The Company does
not enter into any derivative instruments for trading or speculative purposes.
The sources of foreign exchange risk are outstanding amounts payable for imported raw
materials, capital goods and other supplies denominated in foreign currency.The Company is
also exposed to foreign exchange risk on its exports. Most of these transactions are denominated
in US dollars.
(ii) Foreign Currency Risk Sensitivity
The Company is mainly exposed to changes in USD & GBP. The below table demonstrates the
sensitivity to a 5% increase or decrease in the USD and GBP against INR, with all other variables held
constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the
reporting date. 5% represents management’s assessment of reasonably possible change in foreign
exchange rate.
c) Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes
in market traded price. Other price risk arises from financial assets such as investments in equity
instruments. The Company is mainly exposed to the price risk due to its investments in mutual
funds recognised at FVTPL. As at 31st March, 2026, the carrying value of the investments in
mutual funds amounts to Rs 6279.30 Lacs ( Rs.8700.57 Lacs as at 31st March, 2025 ). The details of
such investments in mutual funds are given in Note 5. The price risk arises due to uncertainties
about the future market values of these investments.
The Company is also exposed to price risk arising from investments in equity instruments
recognised at FVTOCI. As at 31st March, 2026, the carrying value of such instruments recognised
at FVTOCI amounts to Rs. 241.80 Lacs (Rs 219.15 Lacs as at 31st March, 2025). The details of such
equity instruments are given in Note 5.
The Company has laid policies and guidelines which it adheres to in order to minimise price risk
arising from investments in mutual funds.
The Company is mainly exposed to change in market rates of its investments in mutual funds
recognised at FVTPL. A sensitivity analysis demonstrating the impact of change in market prices
of these instruments from the prices existing as at the reporting date is given below:
If the prices had been higher/lower by 10% from the market prices existing as at 31st March, 2026,
gain in the Statement of Profit and Loss for the year ended 31st March, 2026 would increase/
decrease by Rs.627.93 Lacs (2024-25- Rs. 870.05 Lacs) with a corresponding increase/decrease in
Total Equity of the Company as at 31st March, 2026. 10% represents management’s assessment
of reasonably possible change in prices.
2) 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 resulting in a financial loss to the Company.To manage this, the
Company periodically assesses financial reliability of customers and other counter parties, taking into
account the financial condition, current economic trends, and analysis of historical bad debts and ageing
of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
The Company considers Credit risk arises primarily from financial assets such as trade receivables,
investment in mutual funds, derivative financial instruments, other balances with banks, loans.
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances
with banks is limited and there is no collateral held against these because the counterparties are banks
and recognised financial institutions with high credit ratings assigned by the credit rating agencies.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor
failing to engage in a repayment plan with the Company. Where loan 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.
The Company measures the expected credit loss of trade receivables and loan from individual customers
based on historical trend, industry practices and the business environment in which the entity operates.
Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on
collection of receivable is not material hence no provision considered.
3) Liquidity Risk
Liquidity risk is the risk that the company will encounter in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The approach of the
company to manage liquidity is to ensure , as far as possible, that Company will have sufficient liquidity to
meet their respective liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risk damage to their reputation. The company assessed the concentration
of risk with respect to refinancing its debt and concluded it to be low.
The table below summarises the maturity profile of the company’s financial liabilities based on contractual
undiscounted payments.
NOTE 30 : CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued capital and all other equity
reserves attributable to the equity shareholders of the Company. The primary objective of the Company when
managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital
structure so as to maximize shareholder value.
As at 31st March, 2026, the Company has only one class of equity shares and has no debt. Consequent to such
capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an
optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into
business based on its long term financial plans.
The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
Proposed Dividend:-
The Board of Directors at its meeting held on 26th May, 2026 have recommended a payment of final dividend
of Rs. 4.00 (Four Rupees only) per equity share of face value of Rs. 2 each for the financial year ended
31st March, 2026. The same amounts to Rs. 801 Lacs.
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not
recognised as a liability.
Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act,
2006” is based on the information available with the Company regarding the status of registration of such
vendors under the said Act, as per the intimation received from them. There are no overdue principal amounts
/ interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no
delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no
interest paid or outstanding interest in this regard in respect of payment made during the year or on balance
brought forward from previous year.
NOTE 34 : EMPLOYEE BENEFITS1) Post- employment benefits :
The Company has the following post-employment benefit plans:
1.1) Defined contribution plans
The Company has certain defined contribution plans. Contributions are made to provident fund in India
for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered
provident fund administered by the government. The obligation of the Company is limited to the amount
contributed and it has no further contractual nor any constructive obligation. The expense recognised
during the period towards defined contribution plan is Rs.55.28 Lacs (PY:- Rs.54.23 Lacs).
1.2) Defined benefit gratuity plan
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of
gratuity payable on retirement/termination is the employees last drawn basic salary per month computed
proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a
funded plan and the Company makes contributions to recognised funds in India.
As per Actuarial Valuation as on 31st March, 2026 and 31st March, 2025 recognised in the financial
statements in respect of Gratuity Benefits:
2) Other Long term employee benefits :2.1) Defined Privilege Leave Benefit plan
Entitlements to annual leave, which are expected to be availed or encashed within 12 months from the
end of the year are treated as short term employee benefits. The obligation towards the same is measured
at the expected cost of leave encashment as the additional amount expected to be paid as a result of the
unused entitlement as at the year end. Entitlements to annual leave, which are expected to be availed or
encashed beyond 12 months from the end of the year are treated as other long term employee benefits.
The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the end of
each year. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which
they arise.
As per Actuarial Valuation as on 31st March, 2026 and 31st March, 2025 recognised in the financial
statements in respect of Privilege Leave Benefit:
Note:-
With effect from November 21, 2025 ,The Government of India notified four labour Codes- The Code on
Wages 2019, The Industrial Relations Code, 2020, the code on Social Security, 2020 and The Occupational
Safety, Health and Working Conditions Code, 2020-consolidating existing labour laws. The company has
assessed that there is no material impact of these changes on financial results of the company.
The Company continues to monitor the finalisation of Central/State Rules and clarifications from
the Government of India on several aspects of the New Labour Code and would provide appropriate
accounting treatment based on these developments as required.
A) Description of Segment and Principal activities:
The Company's Board of Directors monitors the operating results of the below business segments
separately for the purpose of making decisions about resource allocation and performance assessment
and has identified two reportable segments of its business:
B) Segment Revenue and Expenses:
Revenue and Expenses have been identified to a segment on the basis of operating activities of the
segment. Revenue and Expenses which relate to common activities and are not allocable to segment on
reasonable basis have been disclosed as "Unallocable”.
C) Segment Assets and Liabilities:
Segment assets & liabilities include those directly identifiable with their respective segments.
Unallocable assets & liabilities represent the assets and liabiities that relate to the company as a whole
and not allocable to any segment .
D) Information about geographical areas:
The Company has identified its geographical segments as India and Outside India.
E) Information about major customers:
Revenue contributed by any single customer does not exceed ten percent of the Company’s total revenue,
for the year ended 31 March 2026 and 31 March 2025.
A. Where the company is Lessee
The Company's leasing arrangements are in respect of operating leases for premises (Office, factory etc.).
These lease arrangements range for a period of 11-12 months. Most of the lease agreements are renewable
for further period on mutually agreeable terms.
NOTE 40 : ADDITIONAL REGULATORY INFORMATIONi) TITLE DEEDS
The title deeds of all the Immovable properties, (other than immovable properties where the Company
is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the
financial statements included in property, plant and equipment and capital work-in-progress are held in
the name of the Company as at the balance sheet date.
ii) REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
The Company has not undertaken any revaluation of Property, Plant & Equipments / Intangible assets
during the year.
iii) DETAILS OF BENAMI PROPERTY
The company does not hold any benami property as defined under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against
the company for holding any benami property.
iv) BORROWINGS OBTAINED ON THE BASIS OF SECURITY OF CURRENT ASSETS
Quarterly returns or statements of current assets filed by the Company with banks are in agreement with
the books of accounts.
v) WILFUL DEFAULTER
The Company is not declared wilful defaulter by any bank or financial institutions or lender.
vi) RELATIONSHIP WITH STRUCK OFF COMPANIES
The company does not have any transaction with companies struck off under section 248 of the Companies
Act, 2013, during the current year and in the previous year.
vii) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES
The Company does not have any charges or satisfaction of charges which is yet to be registered with
Registrar of Companies beyond the statutory period.
viii) UTILISATION OF BORROWED FUNDS/ADVANCES
The Company has 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:
(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.
ix) 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.
x) UNDISCLOSED INCOME
The Company does not have any such transaction which is 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).
xi) DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
E. (i) The Company does not carry any provisions for Corporate social responsibility expenses for current
year and previous year.
(ii) The Company does not wish to carry forward any excess amount spent during the year.
(iii) The Company does not have any ongoing projects as at 31st March, 2026.
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