2.9 Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates. If the effect of the time value of money
is material, provisions are discounted using a current pre-tax rate that reflects, when appropri¬
ate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.
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 outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot
be made. Contingent assets are neither recognized nor disclosed in the financial statements.
A contingent liability recognized in a business combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the amount that would be recognized in
accordance with the requirements for provisions above or the amount initially recognized less,
when appropriate, cumulative amortization recognized in accordance with the requirements for
revenue recognition.
2.10 Financial instruments
All financial instruments are recognized initially at fair value. Transaction costs that are attributable
to the acquisition of the financial asset (other than financial assets recorded at fair value through
profit or loss) are included in the fair value of the financial assets. Purchase or sales of financial
assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trade) are recognized on trade date. While, loans
and borrowings and payables are recognized net of directly attributable transaction costs.
For the purpose of subsequent measurement, financial instruments of the Company are
classified in the following categories: non derivative financial assets comprising amortized cost,
debt instruments at fair value through other comprehensive income (FVTOCI), equity instru¬
ments at FVTOCI or fair value through profit and loss account (FVTPL) and non derivative
financial liabilities at amortized cost or FVTPL.The classification of financial instruments depends
on the objective of the business model for which it is held. Management determines the
classification of its financial instruments at initial recognition.
(a) Non-derivative financial assets
(i) Financial assets at amortized cost
A financial asset is measured at amortized cost if both of the following conditions are met:(a)
the financial asset is held within a business model whose objective is to hold financial assets
in order to collect contractual cash flows and(b) the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest (SPPI)
on the principal amount outstanding. They are presented as current assets, except for those
maturing later than 12 months after the reporting date which are presented as non-current
assets.Financial assets are measured initially at fair value plus transaction costs and subse¬
quently carried at amortized cost using the effective interest method, less any impairment loss.
Amortized cost are represented by trade receivables, security deposits, cash and cash
equivalents, employee and other advances and eligible current and noncurrent assets.
(ii) Financial assets at FVTPL
FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as FVTPL.In addition the
Company may elect to designate the financial asset, which otherwise meets amortized cost or
FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or
recognition inconsistency. The Company has not designated any financial asset as FVTPL.
(b) Non-derivative financial liabilities
i) Financial liabilities at amortized cost
Financial liabilities at amortized cost represented by borrowings, trade and other payables are
initially recognized at fair value, and subsequently carried at amortized cost using the effective
interest rate method.
(ii) Financial liabilities at FVTPL
Financial liabilities at FVTPL represented by contingent consideration (if any) are measured at fair
value with all changes recognized in the statement of profit and loss.
2.11 Earnings per Share
Basic earnings per share (EPS) are calculated by dividing the net profit / (loss) after tax for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year.
Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with
the weighted average number of shares that could have been issued on the conversion of all dilutive
potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they
have been issued at a later date. The diluted potential equity shares have been adjusted for the
proceeds receivable had the shares been actually issued at fair value i.e. average market value of
outstanding shares.
The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares,
as appropriate. In calculating diluted earnings per share, the effects of anti dilutive potential equity
shares are ignored. Potential equity shares are anti-dilutive when their conversion to equity shares
would increase earnings per share or decrease loss per share.
2.12 Functional and presentation currency
The financial statements are presented in Indian Rupees (INR), which is also the Company’s
functional currency.
2.13 Foreign currency translation
On initial recognition, all foreign currency transactions are translated into the functional currency using
the exchange rates prevailing on the date of the transaction. As at the reporting date, foreign
currency monetary assets and liabilities are translated at the exchange rate prevailing on the Balance
Sheet date and the exchange gains or losses are recognised in the Statement of Profit and Loss.
2.14 Revenue from contracts with customers
The Company has revenue from sale of products which includes finished goods and sale of services
in the form of job work charges. The Company manufactures highly specialized forged and machined
finished goods as per specification provided by the customers and based on the schedules from
the customers. The Company recognizes revenue from sale of finished goods at a point in time
based on the terms of the contract with customers which varies for each customer. Determination
of point in time includes assessment of timing of transfer of significant risk and rewards of ownership,
establishing the present right to receive payment for the products, delivery specifications included
in company terms, timing of transfer of legal title of the asset and determination of the point of
acceptance of goods by customer.
2.15 Rounding off Amounts
All amounts disclosed in financial statements and notes have been rounded off to the nearest Lakhs
as permitted in Schedule III of the Act, unless otherwise stated.
The right-of-use assets are initially recognized 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.
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. Right of use assets are
evaluated for recoverability whenever events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e.the higher of the fair value less cost to sell and the value-in use) is
determined on an individual asset basis unless the asset does not generate cash flows that
are largely independent of those from other assets.In such cases,the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.The lease liability
is initially measured at amortized cost at the present value of the future lease payments.The
lease payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates in the country of domicile of these
leases.Lease liabilities are remeasured with a corresponding adjustment to the related right of
use asset if the Companychanges its assessment if whether it will exercise an extension or
a termination option.
NOTE 31 EMPLOYEE BENEFITS
A Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of
ex-gratia are recognised in the period in which the employee renders the related service. A liability
is recognised for the amount expected to be paid when there is a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
B Defined contribution plan
The Company makes contributions towards provident fund to a defined contribution retirement
benefit plan for qualifying employees. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the benefit plan to fund the benefits. Contribution paid for
provident fund are recognised as expense for the year :
C Defined benefit plan
Gratuity (funded)
The employees’ gratuity fund scheme is a defined benefit plan. The present value of the obligation
is determined based on actuarial valuation using the projected unit credit method, which recognises
each year of service as giving rise to additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation.
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972
(as amended). Employees who are in continuous service for a period of 5 years are eligible for
gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied for the number of years
of service. The gratuity plan is a funded plan and the Company makes contributions to Life Insurance
Corporation(LIC).
The present value of the defined benefit obligations and the related current service cost and past
service cost, were measured using the Projected Unit Credit Method.The plan assets are also
managed by the Life Insurance Corporation (LIC).
D Compensated absences
The employees can carry-forward a portion of the unutilised accrued compensated absences and
utilise it in future service periods or receive cash compensation on termination of employment. Since
the compensated absences do not fall due wholly within twelve months after the end of the period
in which the employees render the related service and are also not expected to be utilized wholly
within twelve months after the end of such period, the benefit is classified as a long-term employee
benefit.
The obligation in respect of compensated absences is provided on the basis of an actuarial valuation
carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each
period of service as giving rise to an additional unit of employee benefit entitlement and measures
each unit separately to build up the final obligation. The obligation is measured at the present value
of estimated future cash flows. The discount rates used for determining the present value of the
obligation under defined benefit plan is based on the market yields as at the balance sheet date
on Government securities, having maturity periods approximating to the terms of the related
obligations. Actuarial gains and losses are recognized in other comprehensive income, net of taxes,
for the period in which they occur.
To the extent the Company does not have an unconditional right to defer the utilization or
encashment of the accumulated compensated absences, the liability determined based on actuarial
valuation is considered to be a current liability.
NOTE 35 DISCLOSURE AS PER IND AS-108 SEGMENT REPORTING_
The Company operates in Single segment hence requirements of Ind AS 108 is not
applicable to the same.
NOTE 36 REGROUPING OF FIGURES_
The previous year figures have been recast/ regrouped whenever considered
necessary to facilitate comparison with revised Schedule III.
NOTE 37 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
1 CAPITAL MANAGEMENT
The Company’s objective for capital management is to maximise shareholder value, safe¬
guard business continuity and support the growth of the Company. The Company deter¬
mines the capital requirement based on annual operating plan and other strategic investment
plans. The funding requirements are primarily met through equity and operating cash flows
generated. The Company aims to manage its capital efficiently so as to safeguard its ability
to continue as a going concern and to optimise returns to all its shareholders.
Fair Value Hierarchy
Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices)
Level 3 inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
3 Financial Risk Management Objectives
The activities of the Company expose 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.
(i) 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, investments and derivative financial instruments.
(ii) 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.
(iii) Management of Price risk:
Investments in unlisted equities and preference shares are susceptible to market price risk,
arising from changes in availability of future free cash flow which may impact the return and value
of the investments. The Company has no such investments
(iv) Management of currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company has no foreign currency trade
receivables and is therefore not exposed to foreign exchange risk.
(v) Management of Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterpart to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s
receivables from customers, deposits and loans given, investments and balances at bank.
The Company measures the expected credit loss of trade receivables based on historical
trend, industry practices and the business environment in which the entity operates. Expected
credit loss is based on actual credit loss experienced and past trends based on the historical
data.
The Company does not have any significant concentration of credit risk.
The average credit period on sales is 45 days. No interest is charged on overdue trade
receivables.
The management has evaluated that there will be no credit loss in respect of Trade Receiv¬
ables.
(vi) 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 robust cash management system in place.
(A) List of Related Parties and Relationships:
1) Kev Management Personnel
Mr. Rakesh M. Kumar, Managing Director
Mrs. Bindu Chowdhary, Non-Executive Director
Mrs. Ritu Joshi, Non-Executive Director
Mr. Ajay Arora, Non-Executive Independent Director*
Mr. Satish Sharma, Non-Executive Independent Director
Ms Niveta Sharma, Non-Executive Independent Director
Mrs. Amita Arora, Non-Executive Independent Director**
Mr. Sandeep Kumar, Company Secretary
Mr. A.P.S. Grover, Chief Financial Officer
‘Resigned w.e.f. 21.08.2024
“Appointed w.e.f. 31.08.2024
2) Relative to Kev Management Personnel
Mr. Siddharth Joshi
3) Shareholder holding 10% shares during previous F.Y.
Mr. Prem Lai
4) Entities in which Directors are interested
Jandwani Poly Products Pvt. Ltd.
Jitya Enterprises Pvt Ltd (Formerly known as Jay Dee Holdings Pvt Ltd)
Susoka Enterprises Pvt. Ltd (Formerly known as Natrajan Investments & Finance Pvt Ltd)
Samedha Enterprises Pvt Ltd (Formerly known as Gee Cee Investments and Finance Pvt. Ltd.)
Divyendu Enterprises Pvt Ltd (Formerly known as Alacrity Holdings Pvt. Ltd)
Kanjam Enterprises Pvt Ltd (Formerly known as R Kumar Investments and Finance Pvt Ltd)
(APS GROVER) (SANDEEP KUMAR) (RAKESH M. KUMAR) (RITU JOSHI)
Chief Financial Officer Company Secretary Managing Director Director
M. No. F9075 DIN 00066497 DIN 01598873
AUDITORS’ REPORT
As per our separate report of even date
FOR RATTAN KAUR & ASSOCIATES
Chartered Accountants
(Firm Regn. No.: 022513N)
Place: Derabassi (RATTAN KAUR)
Date : 30/05/2025 PARTNER
UDIN: 25513530BMJONU1149 Membership No. 513530
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