e) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognised in respect of obligations where, based on the evidence available, their
existence at the Balance Sheet date is considered probable. Contingent Liabilities are shown by
way of Notes to Accounts in respect of obligations where, based on the evidence available, their
existence at the Balance Sheet date is not considered probable, hence not provided for. Contin¬
gent assets are not recognised in the accounts.
f) Revenue Recognition:
Revenue from sale of goods is recognised when all the significant risks and rewards of ownership
in the goods are transferred to the buyer as per the terms of the contract, there is no continuing
managerial involvement with the goods and the amount of revenue can be measured reliably.
The Company retains no effective control of the goods transferred to a degree usually associated
with ownership and no significant uncertainty exists regarding the amount of the consideration
that will be derived from the sale of goods. Revenue is measured at fair value of the consideration
received or receivable, after deduction of any trade discounts, volume rebates and any taxes or
duties collected on behalf of the government which are levied on sales such as sales tax, value
added tax, etc.
Income from export incentives such as duty drawback and premium on sale of import licenses,
and lease license fee are recognised on accrual basis.
Income from services rendered is recognised based on agreements/arrangements with the cus¬
tomers as the service is performed in proportion to the stage of completion of the transaction at
the reporting date and the amount of revenue can be measured reliably.
Effective from 1 April, 2018 the Company has adopted Ind AS 115 "Revenue from Contracts with
Customers".
g) Employee Benefits:
Defined benefit plans
Defined benefit plans, the amount recognised as 'Employee benefit expenses' in the Statement
of Profit and Loss is the cost of accruing employee benefits promised to employees over the year
and the costs of individual events such as past/future service benefit changes and settlements
(such events are recognised immediately in the Statement of Profit and Loss). The amount of
net interest expense calculated by applying the liability discount rate to the net defined benefit
liability or asset is charged or credited to 'Finance costs' in the Statement of Profit and Loss. Any
differences between the interest income on plan assets and the return actually achieved, and
any changes in the liabilities over the year due to changes in actuarial assumptions or experience
adjustments within the plans, are recognised immediately in 'Other comprehensive income' and
subsequently not reclassified to the Statement of Profit and Loss.
The defined benefit plan surplus or deficit on the Balance Sheet comprises the total for each
plan of the fair value of plan assets less the present value of the defined benefit liabilities (using
a discount rate by reference to market yields on government bonds at the end of the reporting
period).
All defined benefit plans obligations are determined based on valuations, as at the Balance Sheet
date, made by independent actuary using the projected unit credit method. The classification of
the Company's net obligation into current and non-current is as per the actuarial valuation report.
h) Foreign Currency Transactions:
a) Transactions in Foreign currency are initially recorded at the exchange rate at which the
transaction is carried out.
b) Monetary Financial Assets and Liabilities related to foreign currency transactions remaining
outstanding at the year end are translated at the year end rates.
c) Non-monetary items which are carried at historical cost denominated in a foreign currency
are reported using the exchange rate at the date of the transaction.
d) Any income or expense on account of exchange difference either on settlement or on trans¬
lation at the year end is recognized in the Statement of Profit & Loss.
e) In case of items which are covered by forward exchange contracts, the difference between
the year end rate and the rate on the date of the contract is recognized as exchange dif¬
ference. The premium or discount on forward exchange contracts is recognized over the
period of the respective contract.
i) Research & Development Expenditure:
Revenue expenditure is charged to Statement of Profit & Loss and Capital expenditure is added to
the cost of fixed assets in the year in which it is incurred.
j) Borrowing Costs:
Borrowing Costs that are attributable to the acquisition or construction of qualifying non financial
assets are capitalised as part of the cost of such assets. A qualifying such asset is one that neces¬
sarily takes a substantial period of time to get ready for intended use. All other borrowing costs
are charged to Statement of Profit and Loss in the period in which they are incurred.
k) Income Taxes:
Income-tax expense comprises Current tax /Minimum Alternate Tax (MAT) and Deferred tax
charge or credit. Provision for Current Tax/ MAT is made on the assessable income at the tax rate
applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is
calculated by applying tax rate and tax laws that have been applicable to the relevant assessment
year. The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax
laws that have been depreciation under tax laws, are recognised only if there is a virtual certain¬
ty of its realization, supported by convincing evidence. Deferred tax Assets on account of other
timing differences are recognised only to the extent there is a reasonable certainty that the assets
can be realized in future.
l) Impairment of Non Financial Assets:
Impairment loss, if any, is recognised to the extent, the carrying amount of assets exceed their
recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in
use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life.
Impairment losses recognised in prior years are reversed when there is an indication that the im¬
pairment losses recognised no longer exist or have decreased. Such reversals are recognised as
an increase in carrying amount of assets to the extent that it does not exceed the carrying amount
that would have been determined (net of amortization or depreciation) had no impairment loss
been recognised in previous years.
After impairment, depreciation or amortization on assets is provided on the revised carrying
amount of the respective asset over its remaining useful life.
m) Operating Cycle:
All Financial Assets and Liabilities have been classified as current or non-current as per the Com¬
pany's normal operating cycle and other criteria set out in the Schedule III to the Companies' Act,
2013. Based on the nature of services provided and time between the rendering of services and
their realization in cash and cash equivalents, the Company has ascertained its operating cycle as
less than 12 months for the purpose of current and non-current classification of financial assets
and liabilities.
n) Cash flow statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the
effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing
flows. The cash flows from operating, investing and financing activities of the Company are seg¬
regated.
o) Segment Reporting:
Segments are identified based on the dominant source and nature of risks and returns and the
internal organization and management structure. The accounting policies adopted for segment
reporting are in line with the accounting policies of the Company. In addition, the following spe¬
cific accounting policies have been followed for segment reporting:
(a) Inter segment revenue is accounted for based on the transaction price agreed to between
segments which is primarily market led.
(b) Revenue and expenses are identified to segments on the basis of their relationship to the
operating activities of the segment. Revenue and expenses, which relate to the enterprise
as a whole and are not allocable to segments on a reasonable basis, have been disclosed as
"Un-allocable".
p) Earnings per Share:
i) Basic earnings per share
A basic earnings per share is calculated by dividing:
• The profit/(loss) attributable to owners of the Company
• By the weighted average number of equity shares outstanding during the financial
year.
ii) Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per
share to take into account.
• The after income tax effect of interest and other financing costs associated with dilu¬
tive potential equity shares, and
• The weighted average number of additional equity shares that would have been out¬
standing assuming the conversion of all dilutive potential equity shares.
D. Capital Management
Equity share capital and other equity are considered for the purpose of Company's capital management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise
returns to shareholders. The capital structure of the Company is based on management's judgment of its
strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market
confidence.
The management and the Board of Directors monitor the return on capital as well as the level of dividends to
shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.
NOTES:
i) Submission of Quarterly Returns or Statement of Current Assets:
a) The Company has filed the monthly Statements of current assets with the banks/Financial Institutions
and the same are in agreement with the books of accounts;
ii) Terms of Redemption / Repayment:
a) Term Loans:
i) During the year 2024-25, Kotak Mahindra Bank Ltd (KMBL) has enhanced the Cash Credit Limit from
' 10 Crore to ' 15 Crore and LC facilities, from ' 18.19 Crore to ' 23.19 Crore. The Company has
availed LC facilities of ' 20.48 Crore so far. KMBL has also granted an adhoc Cash Credit facility of ' 3
Crore in 2024-25, repayable within 90 days from the date of disbursement.
ii) During the year 2021-22, the Company has availed Working Capital Term Loan of ' 1.92 Crore re¬
spectively under Emergency Credit Line Gaurantee (ECLG) Scheme of National Credit Guarentee
Trustee Company Ltd, through Kotak Mahindra Bank Ltd, in the backdrop of COVID 19 pandem¬
ic and said loan '1.92 Crore is repayble in 60 months (with moratorium of 24 months) by way of
monthly instalments comencing from February, 2022.
iii) Unsecured loans from promoters ' 13.75 lacs and certain bodies corporate ' 11.25 lacs are repaya¬
ble after the repayment of all settled dues of secured creditors are made pursuant to the Rehabili¬
tation Scheme sanctioned by its Order dated 10th June, 2010 of the erstwhile BIFR. As per the said
sanctioned scheme of erstwhile BIFR, no interest is payable on above loans.
iv) Amount relating to Current Matuirities has been calculated on the basis of existing repayment
schedule of lenders.
v) Car Loan from banks (other than schedule banks) repayable in monthly installments from October,
2020 to July, 2029 for respective cars covered under above loan.
iii) Nature of Security:
a) Term Loans:
i) The Term Loan from Kotak Mahindra Bank Ltd is secured by first and exclusive charge on all existing
and future movable and immovable fixed and current assets of the company and personal gauran-
tee of promoter.
ii) The Company presently enjoys facilities like Working Capital limit of '15 Crore as part of the overall
credit facilities granted by Kotak Mohindra Bank Ltd, secured by first and exclusive charge on all
existing and future movable and immovable fixed and current assets of the Company
iii) Working Capital Term Loan under ECLG Scheme is secured by second charge on all existing and
future movable and immovable fixed and current assets of the Company.
iv) Car Loan from banks ( other than schedule banks) are secured by the hypothecation of the cars.
iv) Loan from Bodycorporate include ' 5822.84 lakhs relating to related party. Refer Note No. 34
Note:
i) During the year 2024-25, the above Contingent Liability for Income Tax Demand made by Income Tax Author¬
ity and the Company has suit filed against such demand at Hon'ble High Court, Kolkata, vide W.P.A No. 12504
dated 25th April, 2024 and the same has been settled by the Commissioner of Income Tax (Appeals), Income
Tax Department vide Order No-ITBA/NFAC/S/250/2024-25/ 1067006969(1) dated 25.07.2024.
ii) The above Contingent Liabilities for Sale Tax Demands includes demands made by Sale Tax Authorities from
time to time, under Appeals.
As against above demands the Company has deposited ' 37.79 lakhs under protest.
iii) The above Contingent Liabilities for Excise Demands includes demands made by Central Excise Authorities
from time to time, under Appeals.
As against above demands the Company has deposited ' 2.50 lakhs under protest.
iv) The above Contingent Liabilities for GST Demands includes demands made by Goods Service Tax Authorities
from time to time, under Appeals.
As against above demands the Company has deposited ' 18.47 lakhs under protest.
v) A sum amounting to ' 416.65 lakhs has been paid as advance in respect of above contracts remaining to be
executed on Capital Account and not provided for.
b) Defined Benefit Plan :
i) Post employment and other long-term employee benefits in the form of gratuity and leave encash¬
ment are considered as Defined Benefit Obligation. The present value of obligation is determined
based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The
amount of defined benefits recognized in the Balance Sheet represent the present value of the obli¬
gation as adjusted for unrecognized past service cost and as reduced by the fair value of plan assets.
ii) Provident Fund in respect of certain employees is contributed to a fund set up by the Company
which is treated as a Defined Benefit Plan since the Company has to meet the interest shortfall.
There is no interest shortfall as at the year end. As advised by an independent actuary, it is not
practical or feasible to actuarially value the liability considering that the rate of interest is notified by
the Government . Accordingly other related disclosures in respect of Provident Fund have not been
made.
iii) Any asset resulting from this calculation is limited to the discounted value of any economic benefits
available in the form of refunds from the plan or reductions in future contributions to the plan.
The amount recognized in the Profit and Loss Account for the year in respect of Employees Benefit
Schemes based on actuarial reports is as follows :
37 The Company has not recognised Deferred Tax Assets (Net) as per Ind As -12, regarding 'Acounting for Taxsa-
tion'estimation of future in view of consistent tax losses and existance of future profit with reasonable certain-
ity.
38 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
39 Additional Regulatory Informations
i) The title deeds of Immovable Property held during the financial year in name of the Company.
ii) During the financial year company has not revalued its Property, Plant and Equipment.
iii) None of the Loans or Advances in the nature of loans as at 31st March,2025 is granted to the promoters,
directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly
with any other person,that are: (a)repayable on demand or (b)without specifying any terms or period of
repayment.
iv) There are no intangible asset is under development during the current as well previous financial year.
v ) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
vi) During the year the Company has been sanctioned working capital limits in excess of five crore rupees in
aggregate from banks or finacial institutions.
The Company has filed quarterly returns for security of current assts in respect of existing working capital
loan which are agreement with the books of accounts.
vii) The company has not been declared wilful defaulter by any bank or financial Institution or other lender.
viii) The company did not have any transaction with companies struck off under Section 248 of companies
Act, 2013.
ix) Registration of charges or satisfaction with Registrar of Company (ROC):
In following cases charges or satisfaction yet to be registered with ROC beyond the statutory
period
41 The previous year's figures have been re-worked, regrouped, rearranged and reclassified wherever necessary and
practicable . Amounts and other disclosures for the preceding year are included as an integral part of the current
year financial statements and are to be read in relation to the amounts and other disclosures relating to the cur¬
rent year.
As per our report of even date For and on behalf of Board of Directors
For KHANDELWAL RAY & CO Sunil Khaitan Parmanand Tiwari
Chartered Accountants Managing Director Director
Firm Registration No.302035E
CA. Milan Kumar Chakravarti
Partner
Membership No.050293
Kolkata S. J. Sengupta S. K. Kejriwal
Dated: 22nd May, 2025 President & CFO Company Secretary
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