20. Provisions, Contingent Liabilities and Contingent Assets
i) Provisions are made when (a) the Company has a present legal or constructive 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.
ii) Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent liabilities is
disclosed in case of a present obligation from past events (a) when it is not probable that an outflow of resources will be
required to settle the obligation; (b) when no reliable estimate is possible; (c) unless the probability of outflow of
resources is remote.
iii) Contingent assets are not accounted but disclosed by way of Notes on Accounts where the inflow of economic
benefits is probable.
21. Current and Non-Current Classification
i) The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various
assets and liabilities into “Current" and “Non-Current".
ii) The Company presents assets and liabilities in the balance sheet based on current and non-current classification.
iii) An asset is current when it is (a) expected to be realised or intended to be sold or consumed in normal operating
cycle; (b) held primarily for the purpose of trading; (c) expected to be realised within twelve months after the reporting
period; (d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period. All other assets are classified as non-current.
iv) An liability is current when (a) it is expected to be settled in normal operating cycle; (b) it is held primarily for the
purpose of trading; (c) it is due to be discharged within twelve months after the reporting period; (d) there is no
unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other
liabilities are classified as non-current.
22. Segment Reporting
i) The Company has a business segment other than Manufacturing of Copper Pipes, Copper Rods and ferrous & non¬
ferrous metals, however it fails to fulfil the Segment Reporting criteria. Therefore, Segment Reporting is not provided.
23. Related Party Transactions
i) A related party is a person or entity that is related to the reporting entity preparing its financial statement
a) A person or a close member of that person's family is related to reporting entity if that person;
a. has control or joint control of the reporting entity;
b. has significant influence over the reporting entity; or
c. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
b) An entity is related to a reporting entity if any of the following conditions applies;
a. the entity and the reporting entity are members of the same group (which means that each parent, subsidiary and
fellow subsidiary is related to the others);
b. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a
group of which the other entity is a member);
c. Both entities are joint ventures of the same third party;
d. One entity is a joint venture of a third entity and the other entity is an associate of the third entity;
e. The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity
f. The entity is controlled or jointly controlled by a person identified in (a);
g. A person identified in (a)
h. The entity, or any member of a group of which it is a part, provides key management personnel services to the
reporting entity or to the parent of the reporting entity.
Has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of
the entity);
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related
party, regardless of whether a price is charged.
Close members of the family of a person are those family members who may be expected to influence,
or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on
behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of
a parent of the entity in respect of the entity.
c) Disclosure of related party transactions as required by the IND AS is furnished in the Notes on the Standalone Financial
24. Earning Per Share
i) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
25. Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty
The preparation of the Standalone Financial Statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions
are continuously evaluated and are based on management's experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
i) Judgements
In the process of applying the Company's accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:
a) Determination of Functional Currency
Currency of the primary economic environment in which the Company operates (“the functional currency") is Indian
Rupee (Rs) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed its
functional currency to be Indian Rupee (Rs) i.e. Rs in Lakhs.
b) Evaluation of Indicators for Impairment of Property, Plant and Equipment
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant
decline asset's value, significant changes in the technological, market, economic or legal environment, market interest
rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset
etc.) which could result in significant change in recoverable amount of the Property, Plant and Equipment.
ii) Assumptions and Estimation Uncertainties
Information about estimates and assumptions that have the significant effect on recognition and measurement of
assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.
a) Useful lives of Property, Plant and Equipment/Intangible Assets
Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after
taking into account estimated residual value. The useful lives and residual values are based on the Company's historical
experience with similar assets and taking into account anticipated technological changes or commercial obsolescence.
Management reviews the estimated useful lives and residual values of the assets annually in order to determine the
amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/amortisation for
future periods is revised, if there are significant changes from previous estimates and accordingly, the
unamortised/depreciable amount is charged over the remaining useful life of the assets.
b) Contingent Liabilities
In the normal course of business, Contingent Liabilities may arise from litigation and other claims against the Group.
Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated
as contingent liabilities. Such liabilities are disclosed in the Notes but are not recognised. Potential liabilities that are
remote are neither recognised nor disclosed as contingent liability. The management decides whether the matters need
to be classified as 'remote', 'possible' or 'probable' based on expert advice, past judgements, experiences etc.
c) Evaluation of Indicators for Impairment of Property, Plant and Equipment
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant
decline in asset's value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or
physical damage of an asset, poor economic performance of the idle assets etc.) which could result in significant change
in recoverable amount of the Property, Plant and Equipment and such assessment is based on estimates, future plans as
envisaged by the Company.
d) Provisions
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of
recognition and quantification of the liability requires the application of judgement to existing facts and circumstances,
which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to
take account of changing facts and circumstances.
26. Lease
The Company's lease asset classes primarily consist of leases for Land and Buildings and Plant & Machinery. The
Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and leases of low value assets. For these short-term and leases of low value assets, the Company
recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any
lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset.
A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an
index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.
27. Expenses for CSR
i) In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable
contribution is made to any agency to be spent by the latter on any of the activities mentioned in Schedule VII to the
Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss.
ii) In case, the expenditure incurred by the Company is of such a nature which gives rise to an asset, such an asset is
recognised where the Company retains the control of the asset and any future economic benefit accrues to it. A liability
incurred by entering in to a contractual obligation is recognised to the extent to which CSR activity is completed during
the year.
iii) the fair value or cost of the asset can be measured reliably.
28. Non current assets held for sale
Non-Current Assets are classified as Held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and sale is considered highly probable.
A sale is considered as highly probable when decision has been made to sell, assets are available for immediate sale in its
present condition, assets are being actively marketed and sale has been agreed or is expected to be concluded within 12
months of the date of classification. Non-current assets held for sale are neither depreciated nor amortised.
Assets and liabilities classified as Held for Sale are measured at the lower of their carrying amount and fair value less cost
of sell and are presented separately in the Balance Sheet.
Sub Note: 2
Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with
the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company.
There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in
payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of
payment made during the year or on balance brought forward from previous year.
(ii) Fair Value Measurement :
This note provides information about how the Company determines fair values of various financial assets. Fair Value of financial assets and liabilities that are not
measured at fair value (but fair value disclosures are required). Management considers that the carrying amounts of financial assets and financial liabilities
recognized in the financial statements approximate their fair values.
Financial Risk Management Objectives
While ensuring liquidity is sufficient to meet Company's operational requirements, the Company's financial management committee also monitors and manages
key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including
currency risk and price risk), credit risk and liquidity risk.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises
two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk
include FVTPL investments, trade payables, trade receivables, etc.
(ii) Liquidity Risk
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate
amount of committed credit facilities to meet the obligations when due.
Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management
also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities
and monitoring balance sheet liquidity ratios.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The
information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.
1) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees
Provident Fund Organisation established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948,
respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.
39.2 Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of
third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.
Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity
Act, 1972
As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.
(i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Financial statements through other
comprehensive income
(ii) Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailedbelow:
a) Asset Volatility :
(i) The plan liabilities are calculated using a discount rate; if plan assets under perform compared to the discount rate, this will create or increase a deficit
(ii) As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the liabilities.
b) Life Expectancy:
The majority of the plan's obligations are to provide benefits for the service life of the member, so increases in service life expectancy will result in an
increase in the plan's liabilities. This is particularly significant in the Company's defined benefit plans, where inflationary increases result in higher
sensitivity to changes in service life expectancy.
41 Certain Balance of Debtors, Creditors, Loans & Advances for Capital expenditures are non- moving / sticky . However in view of the management, the same is
recoverable / payable. Hence no provision for the same is made in the books of accounts.
42 In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business
and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.
43 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for, but the same are awaited till the date
of audit. Thus, the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts submitted by the company
and are subject to confirmation from the respective parties.
44 The figures for the previous period are re-classified/ re-arranged / re -grouped, wherever necessary so as to be in conformity with the figures of the current
period's classification/disclosure.
45 Segment Reporting
The Company has a business segment other than Manufacturing of Copper Pipes, Copper Rods and ferrous & non-ferrous metals, however it fails to fulfil the
Segment Reporting criteria. Therefore, Segment Reporting is not provided.
46 Benami Transactions
There is no proceedings 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.
47 Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institutions or other lender.
48 Transactions with Struck off Companies
As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has outstanding balance with the Company Struck Off
either under section 248 of the Act or under Section 560 of Companies act 1956.
49 Satisfaction of Charge/Creation of Charge
There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.
50 Number of Layers of Subsidiary
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of
layers) Rules, 2017.
51 Undisclosed Transactions
As stated & confirmed by the Board of Directors, The Company does not have 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 survey or any other relevant
provisions of the Income Tax Act, 1961.
52 Loan or Investment to Ultimate Beneficiaries
As stated & Confirmed by the Board of Directors, 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:
(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
53 Loan or Investment from Ultimate Beneficiaries
As stated & Confirmed by the Board of Directors ,The Company has 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:
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
54 Utilization of Term Loans
The Company has applied term loans for the purpose for which the same was obtained during the year.
55 Title deeds of Immovable Property
The title deeds of immovable properties are in the name of the company, except the lease hold premises, if any.
56 Security of current assets against borrowings
The Company has been sanctioned working capital limits from a bank on the basis of security of the current assets. Quarterly returns or statements filed by the
Company with such bank are not in agreement with the books of accounts.
57 Intangible Assets under Development
The company do not have any intangible assets under development , therefore disclosure related to ageing, is not applicable.
58 Audit Trail
The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions recorded in the software.
59 Crypto Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Notes referred to herein above form an integral part of the Financial Statements
For Piyush J. Shah & Co. For and on behalf of the Board of Directors
Chartered Accountants
FRN :- 121172W
Satish A. Mehta Manan Gajjar
Jainam K. Shah Director Director
Partner DIN :- 01958984 DIN :- 09659075
M. No.:- 166122
UDIN:- 25166122BMGUCF2439
Place :- Ahmedabad Shashwat Shah Anuja Jain
Date :- 28th May, 2025 CFO Company Secretary
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