XIII. Provisions and contingencies:
A provision is recognized when the company has a legal
and constructive obligation as a result of a past event, for
which it is probable that cash outflow will be required
and a reliable estimate can be made of the amount of the
obligation. A contingent liability is disclosed when the
Company has a probable obligation where it is not probable
that an outflow of resources will be required to settle it.
Contingent assets are neither recognized nor disclosed.
XIV. Taxation:
(a) Direct Taxes:
Tax expense for the year, comprising Current Tax if
any and Deferred Tax are included in determining the
net profit for the year.
A provision is made for deferred tax for all timing
differences arising between taxable incomes and
accounting income at currently enacted tax rates.
Deferred tax assets are recognized only if there is
reasonable certainty that they will be realized and are
reviewed for the appropriateness of their respective
carrying values at each balance sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as
contingent depending upon the merit of each
case and/or receiving the actual demand from
the department.
XV. Impairment Loss:
Impairment Loss, if any, is provided to the extent the
carrying amount of assets exceed their recoverable
amounts. Recoverable amount is that which is higher of an
asset's net selling price and its value in use. Value in use is
the present value of estimated future cash flows expected
to arise from the continuing use of the assets and from its
disposal at the end of its useful life. Net Selling Price is the
amount obtainable from sale of the asset on arm's length
basis between knowledgeable and willing parties less the
cost of disposal.
"# A liability is classified as current if, as on the Balance Sheet date, the Company does not have an unconditional right to defer its settlement for
12 months after the reporting date. The following may be noted with respect to borrowings:
(a) The Company would need to evaluate breaches, if any, of terms and conditions of the loans to determine if such a breach would require
classification of the loan under current liabilities, as it may be possible that the Company may not have the right to defer settlement.
However, if the breaches are considered minor and the bank has not recalled the loan anytime before the date of approval of the financial
statements, the Company could continue to classify the loan as non-current.
(b) Liabilities / borrowings that, at the option of the counterparty, are required to be settled by issuance of equity instruments do not affect the
classification of the underlying liability / borrowing.
@ Details of loans and advances to related parties should be given in accordance with the disclosure requirements contained in AS 18 Related
Party Disclosures
Borrowings for which the Company has not provided any security but only guarantees or other personal securities (shares or other assets) by
directors, promoters, other shareholders or others have been provided for the borrowings, should be classified as unsecured.
Loans and advances should include those advances which are in the nature of loans."
*Note : Refer note no. 38 of Notes To Accounts for information regarding terms of repayment and security.
(e) During the reporting period, the Punjab National Bank and State Bank of India have withdrawn the concessional interest rate previously
extended to the Company and charged interest of Rs. 44.24 lacs and Rs. 739 lacs respectively at Normal rates and debited interest for
the respective current period. However, the Company has not accepted and contested the Bank's arbitrary decision and submitted
request for reinstatement of the concessional rate, asserting that the excess interest is unwarranted.
Pending resolution of the matter, the Company has recorded the differential interest debited by the Bank under Other Current
Assets, as it believes the charge is not justified. As of the reporting date, the matter remains unresolved and under consideration
by the Bank. Given the uncertainty of the outcome and the unconfirmed nature of the liability, no provision has been made in the
books of account.
27. In terms of Accounting Standard 28 - Impairment of Assets issued by ICAI the Management has reviewed its Property Plant & Equipment's
and the difference between the carrying amount and recoverable value of relevant assets was not material. Hence, provision for impairment
loss is not considered necessary to be made in the books.
28. Expenditure towards Corporate Social Responsibility (CSR) activities:
In accordance with the provisions of Section 135 of the Companies Act, 2013, Schedule VII and Companies (Corporate Social Responsibility
Policy) Rules, 2014 as amended,the Board of Directors of the Company had constituted a Corporate Social Responsibility (CSR) Committee. In
terms of the provisions of the said ACt, the Company was required to spend of Rs.22.94 Lakhs towards CSR activities during the year ended
31st March, 2025. The Company was Spend Rs.24.50 Lakhs For CSR Expanse the Company has incurred following expenditure towards CSR
activities for the benefit of general public andin the neighborhood of the Company.
39. The Board of Directors has recommended final dividend for the financial year 2024-25 on Equity Share Capital 5% (Rs. 0.5 Per Equity of face
value of Rs.10/- each) subject to approval of the shareholders in the ensuing Annual General Meeting ( AGM )
40. Other Statutory Information
The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property.
The Company do not have any transactions with companies struck off.
The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
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:
(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
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:
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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Company have not 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 surveyor any other relevant
provisions of the Income Tax Act, 1961
@ In September bank report, Debtors have been considered Net of Trading Debtors.
*These differences are mainly due to following reasons:-
(a) Provision of expenses being not considered in statements submitted to bank,
(b) Inventory and Trade Receivables:- Mainly due to change in the basis of valuation of inventories, effects of exchange rate fluctuations,
etc. during the course of audit.
As per our attached report of even date For and on belhalf of the Board of Directors
For Mahendra N. Shah & Co. Pashupati Cotspin Limited
Chartered Accountants
FRN: 105775W
Chirag M. Shah Saurinbhai J. Parikh Tushar R. Trivedi
Partner - Membership No. F 045706 Managing Director Whole Time Director
Membership No. F 045706 (DIN: 02136530) (DIN: 06438707)
Hareshkumar Shah Bijal Thakkar
Chief Financial Officer Company Secretary
Place: Ahmedabad Place: Ahmedabad Place: Ahmedabad
Date: 20/05/2025 Date: 20/05/2025 Date: 20/05/2025
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