(S) Provisions, contingent liabilities and contingent assets
(i) Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a
provision is presented in the statement of profit and loss.
(ii) Contingent liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognised because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognised because it cannot be measured reliably. The Company
does not recognise a contingent liability but discloses its existence in the financial statements.
(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.
(T) Investments
On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in
Other Comprehensive Income, except for mutual fund which is fair value through Statement of Profit and
Loss.
Investment in subsidiaries which are of equity in nature carried at cost in the separate financial statements.
(U) Trade receivables
Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment.
(V) T rade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and
subsequently measured at amortised cost using effective interest rate method.
(W) Operating Cycle
Based on the nature of products/activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and liabilities as current and non current.
(X) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees
Lakhs (upto two decimals), unless otherwise stated as per the requirement of Schedule III (Division II).
Credit Risk Management
The Company source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit
approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company
estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated
based on historical data of the Company. The company has provisioning policy for expected credit losses.
(B) Liquidity Risk
Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. To mitigate this risk, the Company maintains sufficient liquidity by way
of working capital limits from banks.
(C) Market risk
Foreign currency risk
The Company operates in domestic market. The company also has export. The company is having natural hedging as its exports are more than its imports. Hence foreign
currency risk towards export is insignificant.
The Company imports certain materials which is significantly less with respect to total raw material procurement. Currently, Company does not hedge this exposures as it has
natural hedging due to company being net exporter. Nevertheless, Company may wish to hedge such exposures.
(ii) Interest rate risk
The company's main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk. Company's policy is to maintain most of its
borrowings at fixed rate using interest rate swaps to achieve this when necessary. During the year March 31,2025, the Company's borrowings at variable rate were denominated in ?.
The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows
will fluctuate because of a change in market interest rates.
(ii) Defined Benefit Plan
fa) Gratuity:
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days/one month salary last drawn for each completed year of service depending on
the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service. The company has taken
valuation from independent actuary who have used the projected unit credit method to determine the liability.
(b) Leave encashment:
The Company has a policy on leave eancashment which is applicable to all. The expected cost of accumulating leave eancashment is determined based on the policy taken by the
company from LIC which provides information on the obligation of the Company.
The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. These risks may impact the obligation of the Company.
The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. These risks may impact the obligation of the Company.
48 Leases:
The company's major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 4.24 Lakhs
(Previous Year: Rs.4.24 Lakhs) are charged as Rent and shown under the Note No. 38 “Other Expenses”. These leasing arrangements, which are cancelable, range between eleven
months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.
The Company's major leasing arrangements are in respect of investment properties given on leave and licence basis. These leasing arrangements, which are cancellable, is for the period
of 1-2 years and are usually renewable by mutual consent at mutually agreed terms and conditions. The aggregate rentals of Rs. 26.42 Lakhs (Previous Year: Rs.20.44 Lakh) collected
as Licence Fees and shown under Note No. 32 "Other Income".
The company has identified that there were no leases which are in the nature of Right-to-use and hence no lease liability is recognised in the financial statements.
53 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of
Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active
consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.
54 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three
financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare,
destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per
the Act. The funds were utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
58 a) 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:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
b) The Company have 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:
i. 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
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
59 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of account
60 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
61 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
62 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority
63 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
64 No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
65 The Company has borrowings from banks on the basis of security of current asstes and quarterly returns or statements of current assets filed by the Company with banks are in
agreement with the books of account
66 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.
For ML BHUWANIA AND CO LLP For and on Behalf of the Board
Chartered Accountants
FRN: 101484W/ W100197
Vijay Kumar Jain Girdhari Lal Modi Kumar Jay Modi
Partner Managing Director Jt. Managing Director
Membership No. 108374 DIN: 00027373 DIN: 00059396
Place: Mumbai Ramesh M. Kothari Pooja B. Sinha
Dated: 27 May 2025 Chief Financial Officer Company Secretary
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