vi) Provisions, Contingent Liabilities and Contingent Assets
Disclosure of contingencies as required by the Indian accounting standard is furnished in the Notes on accounts.
. Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources
. embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an
outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes. Contingent
assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and
is recognized as an asset. Information on contingent liabilities is disclosed in the notes to the financial statement. A contingent asset is disclosed '
. ’ where an inflow of economic benefits is probable.
vii) Financial Instruments
(a) Financial Assets
Initial recognition and measurement
The company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. All financial
assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or
loss are added to the fair value on initial recognition. Purchase and sale of financial assets are accounted for at trade date.
Subsequent Measurement : Non-derivative financial instruments
Financial assets carried at amortized cost (AC)
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to
collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective
is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.
(b) Financial liabilities
Initial recognition and measurement
The Company’s financial liabilities include trade and other payables, loans and borrowings etc. All financial liabilities are recognized initially at
fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs, if any.
Offsetting of Financial Liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right
to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Derecognition of financial instruments
. The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the ,
' financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized
from the company's balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
viii) Operating Cycle
(a) The Company presents its assets and liabilities in the balance sheet based on current/noncurrent classification which is based upon the
Company's operating cycle. The Company has identified twelve months as its operating cycle.
(b) An asset is treated as current when it is:
(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;
(ii) Held primarily for the purpose of trading;
, (iii) Expected to be realized within twelve months after the reporting period; or
(iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting '
period.
(c) A liability is treated as current when :
(i) It is expected to be settled in normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period, or
(iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
(d) Deferred tax assets and liabilities are classified as non-current assets and liabilities.
ix) Borrowing Costs
. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time
to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in
' which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
’x) Cash and cash equivalents '
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve
months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits. '
xi) Fair Value Measurement
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:
(i) In the principal market for asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest. L _
A fair value measurement of a non- financial asset takes into account a market participant’s ability to generate economic benefits by using the
asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, .
described as follows, based on the lowest level input that is material to the fair value measurement as a whole:
Level 1 - Quoted(unadjusted) market prices in active markets for identical assets or liabilities
Level 2- Valuation techniques for which the lowest level input that is material to the fair value measurement is directly or indirectly observable
Level 3- Valuation techniques for which the lowest level input that is material to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have
occurred between levels in the hierarchy by reass ssing categorization (based on the lowest level input that is material to fair value measurement
as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics
/ , and risks of the asset or liability and the level of the fair value hierarchy as explained above.
xii) Rounding Off
These Stanalone financial statements are presented in Rs and all values are rounded to nearest Lakh ,Except when otherwise indicated. '
2 Financial risk management
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Company's activities.
a) Credit Risk
Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks,
foreign exchange transactions and other financial instruments.
i) Trade Receivables _
Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance
with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by Trade
Receivable buyout facility without recourse, letters of credit and other forms of security.
An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The
Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables and contract assets as
low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
b) 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 three type of risks: Foreign exchange risk, Interest rate risk and other price risk.
Interest Rate Risk '
The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest
rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. The Company
mitigates this risk by regularly assessing the market scenario and finding appropriate fi nancial instruments like Interest Rate Swap.
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the
risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is managed centrally through well-established
trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of
purchase.
c) Liquidity Risk
Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining
sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to
meet the liquidity needs.
3 Capital Management
The Company’s objective with respect to capital management is to ensure continuity of business while at the same time provide reasonable returns to its
various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into
account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and
borrowings, both short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor
capital.
5 Commitments and Contingencies
The Company is involved in certain appellate and judicial proceedings (including those described below) concerning matters arising in the normal course
of business. The proceedings in respect of these matters are in various stages. Management has assessed the possible obligations arising from such claims
against the Company, in accordance with the requirements of Indian Accounting Standard (Ind AS) 37 and based on judicial precedents, consultation with
lawyers or based on its historical experiences. Accordingly, Management is of the view that based on currently available information no provision in
addition to that already recognised in its financial statements is considered necessary in respect of the below:
6 Management Assesment on Tax Litigation .
During the year ,the business premises of the company had been searched by the GST authorities in the connection with some information in their _
possesion .As a result of the search ,the Gst authority had alleged that the company had claimed fruadlent ineligible credit of GST in earlier year and
accoridngly ,passsed an order under Section 74 of CGST Act, 2017 dated January 16 2025 directing the company to deposit the ineligible input credit of
GST amounting to Rs 96.14crores along with interest of Rs 98.42 crores and penalty aggregating to Rs 96.14 crores aggregating to total demand of Rs
290.70 Crores.
The managment is of strong view that the company had availed the Gst Input credit legibly and the allegation made by the Gst Authority are not '
teneable.The company is in the process of seeking legal recourse agnist the demand and in the interim filed a rectified application before the Authorites
concerned requesting availment of said input credit and further based on legal advice, this liability will not crysatlize.Accordingly ,no provision for the
liability has been considered necessary by the managment in thses accounts.
10 Dividend
The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The
remittance of dividends outside India is governed by Indian law on foreign exchange is also subject to witholding tax at applicable rates. The Company
has not paid any dividend during the year ended March 31,2024 and March 31, 2025.
12 Non-adjusting event
Pursuant to the requirements of Ind AS 10 - Events after the Reporting Period, the Company has evaluated subsequent events from the balance sheet
date till the date of approval of the financial statements. The following material non-adjusting event was identified:
Accrual of Interest on Outstanding Dues to MSME Creditors: 12.57 Lakhs
As per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, interest is payable on delayed payments to
suppliers registered under the said Act. Between the balance sheet date (i.e., March 31, 2025) andthe date of approval of these financial statements (i.e.,
May 29, 2025), an amount of ^ 12.57 Lakhs has accrued as interest on such outstanding dues.
Since this interest has accrued after the reporting date and does not relate to conditions existing as on the balance sheet date, it is considered a non- '
adjusting event as defined under Ind AS 10. Accordingly, no adjustment has been made in the financial statements for the year ended March 31, 2025.
However, the same has been disclosed in these notes for the sake of transparency and compliance.
27 Prior year's figures have been regrouped, wherever necessary, to conform to the current year's presentation.
28 The Company has not traded or invested in crypto currency or virtual currency during the year and previous year.
29 There are no borrowing costs to be capitalised as at 31 March 2025 (31 March 2024: ^ Nil).
As per our Report of even date attached
For KAPG & Associates For and on behalf of the Board of Directors
Chartered Accountants
(Karun Agarwal) (Ashok Kalra) (Sanjeev Chhaudha)
Partner Managing Director Director
FRN : 032569N, M.No. : 519869 (DIN 09024019) (DIN 08932721)
Place : New Delhi (Manoj Kumar Jangir) (Yogender Kumar Sharma)
Date : 29th May 2025 CFO & Director Company Secretary
UDIN: 25519869BMNYRP7560_(DIN 08069170)
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