Note 12.1: No loans are due from directors or other officers of the Company or any of them either severally or jointly with any other person. Further, no loans are due from firms or private companies in which any director is a partner, a director or a member, other than dues from related parties disclosed as mentioned in note 47.
No loans and advances are due from directors or other officers and related party of the Company Loans or advances in the nature of loans granted to promoters, directors, KMPS and the related parties (a) Repayable on demand or (b) without specifying terms of period of repayment.
Note 14.4
No Bonus Shares allotted during the period of five years immediately preceding the year .
Note 14.5
Other Disclosures - The Company has one class of equity shares having a par value @ ' 1 per share held. Each equity share holder is entitled to dividends as and when declared by the company. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amount in proportion to their share holding.
The Company has not allotted any bonus shares during the period of five years immediately preceeding March 31,2026.
The Company has not alloted any shares pursuant to contract without payment being received in cash.
There are no call unpaid on equity shares.
No shares have been reserved for issue on option.
No equity shares have been forfeitted.
1) Share Premium:
The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the provisions of the Act.
2) General Reserve
This includes the amount received from the Government under an incentive scheme for capital expansion and on the expiry of requiste period, the amount was transferred to it.
3) Retained Earnings:
This Reserve represents the cumulative profits of the Company and effects of re-measurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
(a) Cash Credit from UCO Bank:
Secured against equitable mortgage of land and building of the company situated at Kodiyat Road, Udaipur and by way of first charge of all current assets such as Raw Material, finished goods, work in progress, stores and spares, book debts and packing material etc. Also secured by way of personal guarantee of Mr. Daud Ali, Managing Director of the company. Rate of interest on cash credit as on 31.03.2026 is 9.20% p.a.
(b) Overdraft from ICICI Bank:
Secured against fixed deposit receipt of the company, rate of interest as on 31.03.2026 is 8.22 % p.a.
(c) There is no default in the payment of interest and principal.
(a) Car Loan from UCO Bank:
Secured against hypothecation of Car No. MH01DT5202 and rate of interest is 8.95% and personal guarantee of Mr. Daud Ali, Managing Director of the Company. Monthly instalment is ' 0.56 Lakhs and Last Instalment is on 28 th July 2028.
Secured against hypothecation of Car No. RJ27CM6324 and rate of interest is 8.30% Monthly instalment is ' 0.22 Lakhs and Last Instalment is on 12th October 2030.
(b) There is no default in the payment of interest and principal.
(b) Gratuity Plan
The Company participates in the Employees Group Gratuity - scheme of life insurance corporation limited, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on seperation/termination in terms of the payment of gratuity (amendment) Act, 1997, or as per the company's scheme whichever is more beneficial to the employees.
NOTE 34 - SEGMENTAL REPORTING
The Company has identified two reportable segment i.e Manufacturing and finance taking in to account nature of product. The accounting policies adopted for segment reporting are in line with accounting policy of the company.
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.
The Company has opted taxation under section 115 BAA of income tax act, as per provisions of this section minimum alternate tax is not payable.
1. Capital Management
The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.
3. FINANCIAL RISK MANAGEMENT
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance. The Company does regularly monitor ,analyze and manage the risks faced by the Company and to set and monitor appropriate risk limits and controls for mitigation of the risks.
A. MANAGEMENT OF MARKET RISK:
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes borrowings and investments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
(i) Management of 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. The Company does not have any exposure to interest rate risks since its borrowing and investment are all in fixed rate instruments.
(ii) Management of price risk:
The Company has no surplus for investment in debt mutual funds, deposits etc. The Company does make deposit with the banks to provide security against Overdrafts given by the banks. Deposit is made in fixed rate instrument. In view of this it is not susceptible to market price risk, arising from changes in interest rates or market yields which may impact the return and value of the investments.
B. MANAGEMENT OF CREDIT RISK:
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and foreign exchange transactions and financial instruments.
Credit risk from trade receivables is managed through the Company's policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed.
The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognised, where considered appropriate by responsible management.
C. MANAGEMENT OF LIQUIDITY RISK:
Liquidity risk is the risk that the Company may not be able to meet its present and future cash obligations without incurring unacceptable losses. The Company's objective is to maintain at all times, optimum levels of liquidity to meet its obligations.
The Company closely monitors its liquidity position and has a cash management system. The Company maintains adequate sources of financing including debt and overdraft from domestic and international banks and financial markets at optimized cost.
The Company's Current assets aggregate to ' 5892.86 lakhs (2025 - ' 5022.11 lakhs;) including Cash and cash equivalents and Other bank balances of ' 36.20 lakhs (2025 - ' 37.90 lakhs) against an aggregate Current liability of ' 2209.64 lakhs (2025 - ' 1430.99 Lakhs); Non-current liabilities due between one year to three years amounting to ' 15.69 lakhs (2025 -' 39.90 lakhs) and Non-current liability due after three years amounting to ' NIL (2025 - NIL;) on the reporting date. Further, while the Company's total equity stand ' 8391.82 lakhs (2025 -' 7942.46 lakhs), it has non-current borrowings of ' 15.69 lakhs (2025 - 39.90 lakhs). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.
D. Fair value measurement Fair value hierarchy
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.
The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.
There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.
NOTE 40
The company has utilized funds for the purpose for which they
were borrowed.
NOTE 41
Utilisation of Borrowed funds and share premium:
(a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source or kind of funds) to any other person(s) or entity(is), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) the the Intermediary (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 has not received any fund from any other person(s) or entity(ies), including foreign entities (intermediaries) 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 to or on behalf of the Ultimate Beneficiaries.
NOTE 42
No scheme of arragement has been approved by thecompetent
authority in terms of sections 230 to 237 of the Companies Act
2013.
NOTE 43
The Government of India notified the four Labour Codes ('New Labour Codes') effective November 21, 2025. The Ministry of Labour & Employment has also issued draft Central Rules and FAQS to help assess the financial impact of these changes. The Company has estimated and recognized the impact of implementation of the New Labour Codes under Employee benefits expense for the year ended 31 March 2026. The impact of the same is not material to for the year.
NOTE 44
The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.
NOTE 45
There is no transaction not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961. Further there is no previously unrecorded income and related assets requiring recording in the books of account during the year .
NOTE 46
The Company has no transactions with struck off under section 248 of the Companies Act. 2013 or section 560 of Companies Act.,1956.
NOTE 48
There are no Micro, Small and Medium Enterprises, to whom the Company owes dues (principal and/or interest), which are outstanding for more than 45 days as at the balance sheet date. During the year, there have been no payments made to Micro, Small and Medium Enterprises beyond 45 days. There were no amounts on account of interest due that were payable for the period where the principal has been paid but interest under the MSMED Act, 2006 not paid. Further, there were no amounts towards interest accrued that were remaining unpaid at the end of accounting year. Accordingly, there were no amounts due to further interest due and payable in the succeeding years. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.
NOTE 49
Balances of banks, sundry debtors and trade payables, current liabilities etc. as on March 31, 2026 are subject to confirmation and reconciliation.
NOTE 50
No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act.1988 and rules made there under.
NOTE 52
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
NOTE 53
In the opinion of the Management ,there is no impairment of assets in accordance with the Ind AS -36 as on the Balance Sheet date.
NOTE 54
There are no amounts due to be credited to Investor Education and Protection Fund in accordance with Section 125 of the Companies Act, 2013 as at the year end.
NOTE 55
There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.
NOTE 56
The financial statements were authorised for issue by the Board of Directors on 07.05.2026
NOTE 57
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs and decimal thereof as per the requirements of Schedule III, unless otherwise stated.
NOTE 62
Disclosures pursuant to section 186 (4) of the Companies Act, 2013
(i) No guarantee given.
(ii) No security has been provided.
(iii) Details of the loans provided during the year are as under:
NOTE 58
Previous year's figures have been reclassified/regrouped wherever necessary to conform with the current year's Financial Statements.
NOTE 59
The Company has used the borrowings from banks fro the specific purpose for which it was taken the balance sheet date.
NOTE 60
The Company has done an assessment to Identify Core Investment Company (CIC) [including CICs in the Company] as per the necessary guidelines of Reserve Bank of India [including Core Investment Companies (Reserve Bank) Directions, 2016]. The Company is not a CIC and no entities have been identified as CIC in the Group, of which Company is a part.
NOTE 61
The Company has assets (equipment etc.) with a lease term of 12 months of less. The Company applies the 'short term lease' recognition exemption for these leases. The company also has certain leases of assets of low value. The company applies 'low values lease' recognition exemption for these leases.
NOTE 63
The Parliament of India has approved the Code on Social Securties, 2020 (the code) which may impact the contributions by the company towards provident fund, gratuity and ESIC. The ministry of labour and employment has releases draft rules for the code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.
NOTE 64
Maintenance of Books of account under Section 128 of the Companies Act, 2013. The Company has defined process to take daily back-up of books of account maintained electronically and complied with the provisons of the Companies (Accounts) Rules, 2014 (as amended).
|