2.3.12 Provisions, Contingent Liabilities and
Contingent Assets

a Provisions

Provisions involving substantial degree of estimation
in measurement are recognised when there is a
present obligation (legal or constructive) as a result
of past events and it is probable that there will be an
outflow of resources.

• If the effect of the time value of money is material,
provisions are discounted using equivalent period
government securities interest rate.

• Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

b Contingencies

• Contingent liabilities are disclosed when there is a
possible obligation arising from past events, 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 or a present obligation that arises
from past events where it is either not probable that
an outflowof resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liabilities is disclosed in the
Notes to the Financial Statements.

• Contingent assets are not recognised in the books of
the accounts but are disclosed in the notes. However,
when the realisation of income is virtually certain,
then the related asset is no longer a contingent asset,
but it is recognised as an asset and the
corresponding income is booked in the Statement of
Profit and Loss.

2.3.13 Taxation

• Income tax expense represents the sum of Current
Tax and Deferred tax. Tax 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 cases the tax
is also recognised directly in equity or in other
comprehensive income.

• Current tax provision is computed for Income

calculated after considering allowances and
exemptions under the provisions of the Income Tax
Act 1961. Current tax assets and current tax liabilities
are off set and presented as net.

• Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Balance sheet and the corresponding tax bases used
in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable
temporary differences, and deferred tax assets are
generally recognised for all deductible temporary
differences. Deferred tax assets and liabilities are
measured at the applicable tax rates. Deferred tax
assets and deferred tax liabilities are off set, and
presented as net.

2.3.14 Cash and cash equivalents

Cash and cash equivalents include cash in hand and
at bank, deposits held at call with banks.

For the purpose of the Statement of Cash Flows, cash
and cash equivalents consists of cash and balance
with bank in current account.

2.3.15 Financial instruments - initial recognition,
subsequent measurement and impairment

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

a Financial Assets

• Financial Assets are measured at amortised cost or
fair value through Other Comprehensive Income or
fair value through Profit or Loss, depending on the
judgment of the management for managing those
financial assets and the assets' contractual cash flow
characteristics.

• Subsequent measurements of financial assets are
dependent on initial categorisation. For impairment
purposes, financial assets are assessed individually.

De-recognition of financial Asset

A financial asset is primarily derecognised (i.e. removed from

the balance sheet) when:

• The rights to receive cash flows from the asset have
expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through'
arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of
the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.
When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership.

Impairment of financial assets (other than fair value)
In accordance with Ind AS 109, the Company applies expected
credit loss (ECL) model for measurement and recognition of
impairment loss on the following financial assets and credit
risk exposure:

Financial assets that are debt instruments, and are measured
at amortised cost e.g., loans, debt securities, deposits, trade
receivables and bank balance

Trade receivables:

• A receivable is classified as a ‘trade receivable' if it is
in respect to the amount due from customers on
account of goods sold or services rendered in the
ordinary course of business. Trade receivables are
recognised initially at fair value and subsequently
measured at amortised cost , less expected credit
loss if any.

• Impairment is made for the expected credit losses.
The estimated impairment losses are presented as a
deduction from the value of trade receivables and the
impairment losses are recognised in the Statement of
Profit and Loss under “Other expenses”.

• Subsequent changes in assessment of impairment
are recognised in ECL and the change in impairment
losses are recognised in the Statement of Profit and
Loss under “Other Expenses”.

• Individual receivables which are known to be
uncollectible are written off by reducing the carrying
amount of trade receivables and the amount of the
loss is recognised in the Statement of Profit and Loss
under “Other Expenses”.

• Subsequent recoveries of amounts previously written
off are credited to “Other Income”.

Investments in Equity Instruments

• Investments in Equity Instruments have been valued
at their fair values through Profit and Loss, as on the
closing date. The fair value has been taken from the
stock exchange where the shares are listed.
Investments have also been made in NSC deposits,
which have been carried at their book values.

b Financial liabilities

At initial recognition, all financial liabilities other than
those valued at fair value through profit and loss are
recognised at fair value less transaction costs that
are directly related to the issue of financial liability.
Transaction costs of financial liability carried at fair
value through profit or loss are expensed in profit or
loss.

Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading. The Company has not
designated any financial liabilities upon initial measurement
recognition at fair value through profit or loss.

Financial liabilities measured at amortised cost

After initial recognition, interest free Security Deposits and

other financial liabilities are valued at Amortised cost using

Effective Interest Rate method (EIR Method). The EIR
amortisation is included in finance costs in the Statement of
Profit and Loss. Any difference between the proceeds (net
of transaction costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings using the
effective interest method.

Trade and other payables

A payable is classified as ‘trade payable' if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. 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 presented as current liabilities
unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair
value and subsequently measured at amortised cost using
the effective interest method.

De-recognition of financial liability

A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. The
difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party
and the consideration paid is recognised in profit or loss as
"Other Income" or "Finance Expense".

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the consolidated balance sheet if there
is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

2.3.16 Intangible assets

Intangible assets have been shown at cost, less
accumulated amortisation and impairments, if any.

2.3.17 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Company is principally is engaged in the business
of manufacture and sale of pets and other Plastic
Products and there are no other reportable segments.

2.4 CRITICAL ACCOUNTING ESTIMATES,
ASSUMPTIONS AND JUDGEMENTS

The estimates and judgements used in the preparation
of the financial statements are continuously evaluated
by the Company and are based on historical
experience and various other assumptions and factors
(including expectation of future events) that the
Company believes to be reasonable under the existing
circumstances. Differences between actual results
and estimates are recognised in the period in which
the results are known/materialised.

The said estimates are based on the facts and events
that existed as at the reporting date, or that which
occured after the date but provide additional evidence
about the conditions existing at the reporting date.

a Property, plant and equipment

• Management assesses the remaining useful lives
and residual value of property, plant and equipment.
Management believes that the assigned useful lives
and residual value are reasonable.

b Income taxes

• Management judgment is required for the calculation
of provision for income taxes and deferred tax
assets and liabilities.

• The Company reviews at each balance sheet date
the carrying amount of deferred tax assets. The
factors used in estimates may differ from actual
outcome which could lead to significant adjustment
to the amounts reported in the standalone financial
statements.

c Contingencies

• Management judgement is required for estimating
the possible outflow of resources, if any, in respect
of contingencies/claim/litigations against the
Company as it is not possible to predict the outcome
of pending matters with accuracy.

d Impairment of accounts receivable and

advances

• Trade receivables carry interest and are stated at
their fair value as reduced by appropriate
allowances for expected credit losses. Individual
trade receivables are written off when management
deems them not to be collectible. Impairment is
recognised for the expected credit losses.

e Employee benefit expenses

• Actuarial valuation for gratuity liability of the
Company has been done by an independent
actuarial valuer on the basis of data provided by
the management and assumptions used by the
actuary. The data so provided and the assumptions
used have been disclosed in the notes to accounts.

f Discounting of Security deposit, and other

long term liabilities

• For majority of the security deposits received, the
timing of outflow, as mentioned in the underlying
contracts, is not substantially long enough to
discount. The treatment would not provide any
meaningful information and would have no material
impact on the financial statements.

g Government Grants

Grants from the government are recognized are
fair value where there is reasonable assurance
that the grant will be received and the company will
comply with all attached conditions.Government
grants relating to the purchase of property, plant
and equipment are included in non-current liabilities
as deferred income and are credited to Profit and
Loss on a straight - line basis over the expected
lives of related assets and presented within other
income.

37 FINANCIAL RISK MANAGEMENT

The Company's activities expose it to a variety of financial
risks i.e. Market Risk, Liquidity Risk and Credit Risk.

The Company's board of directors has overall
responsibility for the establishment and oversight of the
Company's risk management framework.

A. Market risk

Foreign Currency Risk:

• There are no currency rate risk on the Company since all
the transactions are done in the functional currency (INR)
and the Company has not taken any loans or borrowings
from the market in foreign currency.

• Interest Rate Risk:

The exposure of the Company's borrowing to interest
rate charges at the end of the reporting period is on the
amount of outstanding balance of cash credit facilities
from State Bank Of India. The interest rates are linked to
1 year MCLR and are changed at the time of annual
renewal. The rates will either increase or decrease
depending on changes in RBI's and Bank's policies.

• Price Risk:

The Company faces price risk due to change in price of
Raw Materials from time to time. To shield itself from
them, all sales contracts and orders are variable to
changes in prices from time to time. They are based on
the price of raw materials at the beginning of each
month or weighted average price of last 3 months.

B. Liquidity Risk

• Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities and the
availability of funding to meet obligations when due.
Management monitors rolling forecasts of the company's
liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company's objective
is to at all times maintain optimum levels of liquidity to
meet its cash requirements.

C. Credit risk

• Credit risk is the risk of financial loss to the Company if a
customer fails to meet its contractual obligations, and
arises principally from the Company's receivables from
customers. The carrying amounts of financial assets
represent the maximum credit risk exposure.

• Assets are written off when there is no reasonable
expectation of recovery. The Company write offs debtors
when they fail to make contractual payment greater than
a reasonable limit post due.

• The Company considers the probability of default upon
initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis
throughout each reporting period. To assess whether
there is a significant increase in credit risk the Company
compares the risk of a default occuring on the asset as at
the reporting date with the risk of default as at the date
of initial recognition. It considers available reasonable
and supportive forwarding-looking information.

Trade and Other Receivables

Credit risk refers to the risk of default on its obligation by the

counter party resulting in financial loss. The maximum

exposure to the credit risk at the reporting date is primarily

from trade receivables amounting to Rs. 873.45 Lakhs, Rs.
871.88 Lakhs and Rs. 1090.21 Lakhs as at March 31,
2024, March 31, 2023 and March 31, 2022, respectively. The
Company's exposure to credit risk is influenced mainly by the
individual charactersticts of each customer. The management
also considers the factors that may influence the credit risk of
its customer base, including the default risk of the industry.
The Company monitors its exposure to credit risk on an ongoing
basis at various levels. Outstanding customer receivables are
regularly monitored.

Due to the geographical spread and the diversity of the
Company's customers, the Company is not subject to any
significant concentration of credit risks at balance sheet date.

Cash and Cash Equivalents and Bank Deposits

Credit risk related to cash and cash equivalents and bank deposits
is managed by only accepting highly rated banks and diversifying
bank deposits accounts in different banks across the country.

Cash Credit Facilities

Cash credits facilities from State Bank Of India, Jhotwara
Industrial Area Branch, Jhotwara ( Jaipur) together with interest
and other charges thereon, is secured by mortgage of
company's land and building together with plant and
machinery thereon both present and future and by way of a
hypothecation charge over all movable assets including book
debts, stock etc. of the company and secured by personal
guarantee of two directors of the company. Cash credit is
payable on demand and carries interest rate @ 9.50%- 10.15%
p.a. on monthly rest.

38 CAPITAL RISK MANAGEMENT
Objective

The primary objective of the Company's capital management
is to maximize the shareholder value. i.e. to provide maximum
returns to the shareholders. The Company's primary objective
when managing capital is to ensure that it maintains an efficient
capital structure and healthy capital ratios and safeguard the
Company's ability to continue as a going concern in order to
support its business and provide maximum returns to the
shareholders. The Company also proposes to maintain an
optimal capital structure to reduce the cost of capital. No
changes were made in the objectives, policies or processes
during the year ended March 31, 2024 and March 31, 2023.

Policy

The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and
the rules and regulations framed by the Government under
whose control the Company operates.

Process

The Company manage its capital by maintaining sound/
optimal capital structure financial ratios, such as net debt-to-
equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. Debt-to-equity ratio as of
March 31, 2024 and March 31, 2023 is as follows:

40 CONTINGENT LIABILITIES

1 Rs. 11,13,549/- deposited with Revenue Board, Ajmer
under Protest towards appeal against Stamp Duty
Demand. The Board has awarded decision in
Company's favour. Refund of the same is under
process.

2 The SBI has debited by Rs. 78,72,933/- towards interest
which is pending with appropriate authority. The same
will be reversed on the approval of appropriate authority

* Company does not have any capital commitments during
the reported years.

42 Relationship with Struck off Companies:

Company has no transactions with companies struck
off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

43 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 sources or find of funds) to any other person(s)
or entity(ies). Including foreign entities (intermediaries)
with the understanding (whether recored in writting or
otherwise)that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons
or entities indentified 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.

B The Company has not received any funds from any
person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recored
in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons
or entities indentified in any manner whatsoever by or
on behalf of the funding party (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries.

44 Compliance with Approved Scheme(s) of
Arrangements:

No Scheme of arrangement has been approved by the
competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013, hence this is not applicable.

45 Details of Crypto Currency or Virtual Currency:

The Company has not traded or Invested in crypto
currency or virtual currency during the current or
previous year.

46 Registration of Charges or Satisfaction with
registrar of Companies:

There are no charges or satisfaction yet to be registered
with Registrar of Companies beyond the statutory period.

47 Compliance with Number of Layers of Companies:

The Company Complies with the number of layers
prescribed under clause (87) of Section 2 of the Act
read with Companies (restriction on Number of Lauers)
Rules, 2017.

48 The Company has changed its technique for the
measurement of the value of finished goods and restated
the respactive financial statement. Due to restatement
figures for the previous period's has been regrouped/
recast wherever necessary to conform with the current
year presentation.

In terms of our separate Audit Report of even date For & on behalf of the Board

For S.R. Goyal & Co. RAJIV BAID VARUN BAID CS GAJANAND GUPTA

Chartered Accountants DIN:00212265 DIN:08268396 CFO &

FRN : 001537C CHAIRMAN & MANAGING EXECUTIVE DIRECTOR COMPANY SECRETARY

DIRECTOR

CA A.K. Atolia

Partner
M.NO. 077201

UDIN : 24077201BKEQDW1156
Place : JAIPUR
Dated: 30.05.2024