J. Provision, Contingent liabilities and Contingent Assets: -
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is
reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by the best estimate of the likely future outflow of economic benefits
required to settle the obligation at the reporting date.
Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent
liability is also made when there is a possible obligation or a present obligation that may, but probably will not,
require an outflow of resources.
Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its
existence in the financial statements.
K. Cash and Cash Equivalents: -
Cash and cash equivalents comprises cash at banks and short term deposits that are readily convertible into cash
and which are subject to an insignificant risk of changes in value.
L. Borrowing Cost: -
Borrowing cost that are directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial year of time to get ready for its intended use or sale are capitalised as part of the
cost of the respective asset. Costs incurred in raising funds are amortized equally over the period for which the
funds are acquired. All other borrowing costs are expensed in the period they occur.
M. Related Party Disclosures: -
Related parties as defined under Accounting Standard - 18 'Related Party Disclosures’ have been identified
based on representations made by management and information available with the Company. All transactions
with related parties are in the ordinary course of business and on arms' length basis.
N. Foreign Currency Transactions: -
Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates in effect at
the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase of current assets
like Raw Material etc. are included in the Statement of Profit and Loss. Revenue, expense and cash-flow items
denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction.
O. Cash Flow Statement: -
The cash flow Statement has been prepared under the “Indirect Method” as set out in Accounting standard
-3 “Cash Flow Statement” whereby net profit before tax is adjusted for the effects of the transactions of a non
cash nature and any deferral or accrual of past or future cash receipts or payments. The cash flow from regular
operating, investing and financing activities of the company are segregated.
P. Employee Benefits: -
Short term employee benefits: -
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the
amount expected to be paid if the Company has 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.
Post-Employment Benefits: -
a. Defined Contribution Plans (ESIC/PF): -
A defined contribution plan is a post-employment benefit plan under which a Company pays fixed contribution
into a separate entity and will have no legal or constructive obligation to pay further amounts.
Obligations for contributions to defined contribution plans are expensed as the related service is provided.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future
payments is available.
b. Defined benefit Plans (Gratuity): -
The Company pays gratuity to the employees who have completed five years of service with the Company at the
time when employee leaves the Company.
As per AS 15 the detailed actuarial valuation of the present value of defined benefit obligations may be made
at intervals not exceeding three years. The company has made valuation of the present value of defined benefit
obligations recently for the period 1st April, 2023 to 30th June, 2023.
However, from the date of valuation and the balance sheet date 31st March, 2025, there has been no material
transactions and other material changes in the circumstances (Including changes in interest rates). Hence, the
provision of gratuity as of 31st March, 2025 has made on estimated basis.
Q. Leases: -
The company has taken factory (Bhosari Unit) on lease and classified as an Operating lease and lease rentals are
recognized on a straight-line basis over the lease term, the same is expired on 30/09/2024. Refer note no. 35 of
the financial statements.
R. Segment Reporting: -
The Company is having revenue; from its customers which are located outside India; of more than 10% of its
total revenue. Accordingly, as per AS-17 Segment Reporting, the company has identified geographic segment as
its reportable segment.
The company has maintained records for cost of material consumed, employee cost and other expenses incurred
for manufacturing of goods in ERP system for all the products.
However, the company manufactures the same products which are sold in Indian Market and outside India at
similar cost of product manufacturing. Accordingly, the expenses incurred on export segment is not identifiable.
Similarly, Assets of outside India is identifiable to the extent of Continent Wise Outstanding Trade Receivables
only.
However, revenue generated for the products varies on the basis of sale price of domestic sale and export sale.
Accordingly, we have disclosed geographic Segment Revenue and Segment Assets in table below for Domestics
(India) and Export (Outside India): -
S. Subsequent Events occurred after the Balance sheet date: -
No subsequent events are occurred after the balance sheet date.
T. Corporate Social Responsibility (CSR): -
Pursuant to Section 135 of the Companies act, 2013, applicable companies are required to allocate at least 2% of
their average net profit for the immediately preceding three financial years towards CSR activities.
CSR activities encompass areas specified in Schedule VII of the Companies Act, 2013, including eradication of
hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation,
environment sustainability, disaster relief, and rural development projects.
Funds allocated for CSR activities are primarily directed towards specific projects throughout the year, as ap¬
proved by the CSR Committee established in accordance with Section 135 of the Companies Act, 2013.
U. Current and Non-Current Classification: -
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading.
• Expected to be realised within twelve months after the reporting period, or
• Cash or 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.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
The company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities
3. SIGNIFICANT ACCOUNTING, JUDGEMENTS ESTIMATES AND ASSUMPRIONS: -
In the application of the Company's accounting policies, Management is required to make judgements, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty: -
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a material adjustment to the carrying amount of assets
and liabilities within the next financial year:
(i) Useful lives of property, plant and equipment and intangible assets: -
The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage
of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes,
etc. The Company reviews the useful life of property, plant and equipment and intangible assets as at the end
of each reporting period. This reassessment may result in change in depreciation and amortisation expense in
future periods.
Others: -
1. Regrouping - Figures have been rearranged and regrouped wherever practicable and considered necessary.
2. Benami property - The Company does not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property
3. Struck Off Co. - The Company has performed the assessment to identify transactions with struck off companies
as at 31st March, 2025 and identified no company with any transactions.
4. Crypto / Virtual currency - The Company has not traded or invested in crypto currency or virtual currency
during the financial year.
5. Fund Advanced - No funds have been advanced or loaned or invested either from borrowed funds or share
premium or any other sources or kind of funds by the Company to or in any other person or entity, including
foreign entities ('Intermediaries’), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, 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 provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries.
6. Funds Raised - No funds have been received by the Company from any person or entity, including foreign en¬
tities ('Funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatso¬
ever by or on behalf of the Funding Party ('Ultimate Beneficiaries’) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
7. Willful default - The Company has not been declared willful defaulter by any bank or financial institution or
Government or any Government authority
8. Provisions - The management has confirmed that adequate provisions have been made for all the known and
determined liabilities and the same is not in excess of the amounts reasonably required to be provided for.
9. Trade payables/ Trade Receivable - The balances of trade payables, trade receivables, loans, and advances are
unsecured and considered good and are subject to confirmations of the respective parties concerned.
10. Realizations - In the opinion of the Board and to the best of its knowledge and belief, the value on the realization
of current assets and loans and advances are approximate of the same value as stated.
11. Contractual liabilities - All other contractual liabilities connected with the business operations of the Company
have been appropriately provided for.
For Shri Balaji Valve Components Limited
(Formerly Known as Shri Balaji Valve Components Private Limited)
Sd/- Sd/-
LAXMIKANT SADASHIV KOLE SHRINIVAS LAXMIKANT KOLE
(Managing Director & Chairman) (Whole Time Director & CFO)
(DIN: 05110323) (DIN: 10119216)
Date: 26th August, 2025
Place: Pune
|