18. Provisions, Contingent liabilities and Contingent
Assets
Provisions are recognized when there is a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation. Provisions are reviewed at each balance sheet
date and are adjusted to reflect the current best estimate.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, 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 possible obligations whose
existence will only be confirmed by future events not wholly
within the control of the Company, or present obligations
where it is not probable that an outflow of resources
will be required, or the amount of the obligation cannot
be measured with sufficient reliability. Information on
contingent liability is disclosed in the Notes to the Financial
Statements.
Contingent assets are not recognised but disclosed when
the inflow of economic benefits is probable. However,
when the realisation of income is virtually certain, then
the related asset is no longer a contingent asset, but it is
recognised as an asset.
19. Claims
Claims against the Company not acknowledged as debts
are disclosed after a careful evaluation of the facts and
legal aspects of the matter involved.
20. Government Grant
Government grants are recognised where there is
reasonable assurance that the grant will be received and all
attached conditions will be complied with.
A government grant that becomes receivable as
compensation for expenses or losses incurred in previous
period(s). Such a grant is recognised in profit or loss of the
period in which it becomes receivable.
Government grants shall be recognised in profit or loss on
a systematic basis over the periods in which the Company
recognises as expenses the related costs for which the
grants are intended to compensate.
Government grants related to assets are presented in the
balance sheet as deferred income and is recognised in
profit or loss on a systematic basis over the expected useful
life of the related assets or other relevant basis.
Government grants by way of financial assistance on the
basis of certain qualifying criteria are recognised as they
become receivable.
I n the unlikely event that a grant previously recognised is
ultimately not received, it is treated as a change in estimate
and the amount cumulatively recognised is expensed in the
Statement of Profit and Loss.
21. Revenue Recognition
Revenue from Contracts with Customers
Revenue is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the
revenue can be reliably measured.
Revenue from Contract(s) is recognised by following five
steps model from revenue recognition as prescribed in Ind
AS 115 which namely are identifying of the contract(s)
with a customer; identifying the separate performance
obligation in the contract; determining the transaction
price; allocating the transaction price to each separate
performance obligation and recognising revenue when
(or as) each performance obligation is satisfied. The model
specifies that revenue should be recognised when (or as)
an entity transfer control of promised goods or services to
a customer at the amount to which the entity expects to be
entitled in exchange of those goods or services.
Revenue is measured at the fair value of the consideration
received or receivable for goods supplied and services
rendered, net of returns, rebates and discounts to customers.
Revenue exclude Goods & Services Tax (GST) and amounts
collected on behalf of third party or Government, if any.
Sale of Goods
Most of the Company's revenue is derived from selling
goods with revenue recognised at a point in time when
control of the goods is transferred to the customer and
retains none of the significant risks and rewards of the
goods in question.
As per Ind AS 115, the Company determines whether
there is a significant financing component in its contracts.
However, the Company has decided to use practical
expedient provided in Ind AS 115 and not to adjust the
promised amount of consideration for the effects of a
significant financing components in the contracts, where
the Company expects, at contract inception that the
period of completion of contract terms are one year or
less. Therefore, for short-term advances, the company does
not account for a financing component. No long - term
advances from customers are generally received by the
Company.
Sale of Service
Revenue from sale of services is recognised at an amount
entitled in exchange for transferring services at a point in
time to a customer.
Contract Balances
Trade Receivables
A trade receivable is recognised for the company's right
to an amount of consideration, in exchange of goods or
services transferred to a customer, that is unconditional i.e.
only the passage of time is required before payment of the
consideration is due.
Contract Liabilities
A Contract liability is recognised for the consideration paid
by a customer before the transfer of goods or services
to the company. The contract liabilities are recognised as
revenue when the company performs under the contract.
Interest Income
I nterest income is accrued on using on a time basis by
the effective interest rate with reference to the principal
outstanding.
Dividend Income
Dividend income from investments is recognised when the
shareholder's right to receive payment has been established
i.e. in case of interim dividend, on the date of declaration
by the Board of Directors; whereas in case of final dividend,
on the date of approval by the shareholders.
Export Incentives
Export Incentives are recognised when certainty of receipt
is established.
Insurance Claim
I nsurance claims are accounted for on the basis of claims
admitted / expected to be admitted and to the extent that
the amount recoverable can be measured reliably and it is
reasonable to expect ultimate collection.
Other Income
Other income is accounted for on accrual basis except
where the receipt of income is uncertain and, in such cases,
it is accounted for on receipt basis.
22. Employee benefits
The Company makes contributions to both defined benefit
and defined contribution schemes which are mainly
administered through/by duly constituted and approved
Trusts and the Government.
Defined Contribution Scheme
I n case of provident fund administered through Regional
Provident Fund Commissioner, the Company has no
obligation, other than the contribution payable to the
provident fund.
In case of members of constituted and approved trusts, the
Company recognises contribution payable to such trusts
as an expense including any shortfall in interest between
the amount of interest realised by the investment and the
interest payable to members at the rate declared by the
Government of India.
The Company's contributions paid / payable during the year
to provident fund administered through Approved Trust,
Regional Provident Fund Commissioner, Superannuation
Fund and Employees' State Insurance Corporation are
recognised in the Statement of Profit and Loss as an
expense when employees have rendered services entitling
them to contributions.
Defined Benefit Scheme
Gratuity: Cost of providing the Benefit is determined on
an actuarial basis at the end of the year and charged to
Statement of Profit and Loss. The cost of providing these
benefits is determined by independent actuary using the
projected unit credit method.
Re-measurements, comprising of actuarial gains and losses
and the effect of the asset ceiling, (excluding amounts
included in net interest on the net defined benefit liability
and return on plan assets), are recognised immediately in
the balance sheet with a corresponding debit or credit to
retained earnings through other comprehensive income in
the period in which they occur. It is included in retained
earnings in the statement of changes in equity and in the
balance sheet.
Short-term Employee Benefits
The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered
by employees are recognised during the year when the
employees render the service. These benefits include
salaries, wages, performance incentive and compensated
absences which are expected to occur within twelve
months after the end of the period in which the employee
renders the related service. The cost of such compensated
absences is accounted as under:
Leave encashment: Accrued Leaves are encashed annually
at the end of the calendar year and not accumulated.
Provision for the same is done on the basis of leaves
accrued as at the end of the reporting period.
23. Taxes on Income
Income tax comprises Current and Deferred Tax. It is
recognised in the Statement of Profit or Loss except to the
extent that it relates to business combination or to an item
recognised directly in other equity or in other comprehensive
income. Tax relating to items recognised directly in equity/
other comprehensive income is recognised in respective
head.
Current Tax
Current income tax assets and/or liabilities comprise those
obligations to, or claims from, fiscal authorities relating to
the current or prior reporting periods, that are unpaid at
the reporting date. Current tax is payable on taxable profit,
which differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws
that have been enacted or substantively enacted by the end
of the reporting period.
Current tax assets and current tax liabilities are offset only if
there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle
the liability on a net basis or simultaneously.
Deferred Tax
Deferred tax is recognised on differences between the
carrying amounts of assets and liabilities in the Balance sheet
and the corresponding tax bases used in the computation
of taxable profit and are accounted for using the liability
method. Deferred tax liabilities are generally recognised
for all taxable temporary differences, and deferred tax
assets are generally recognized for all deductible temporary
differences, carry forward tax losses and allowances to the
extent that it is probable that future taxable profits will
be available against which those deductible temporary
differences, carry forward tax losses and allowances can be
utilised. Deferred tax assets and liabilities are measured at
the applicable tax rates. Deferred tax assets and deferred
tax liabilities are off set, and presented as net.
Deferred tax assets and deferred tax liabilities are offset
only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation
authority.
The carrying amount of deferred tax assets is reviewed at
each Balance Sheet date and is adjusted to the extent that
it is no longer probable that sufficient taxable profit will be
available to allow all or part of the asset to be recovered.
24. Dividend Distribution
Dividends and interim dividends payable to a Company's
shareholders are recognized as changes in equity in the
period in which they are approved by the shareholder's
meeting and the Board of Directors respectively.
25. Statement of Cash Flow and Cash & Cash Equivalents
Cash flows are stated using the indirect method, whereby
profit/loss 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
items of incomes and expenses associated with investing or
financing flows. The cash flows from operating, investing
and financing activities of the Company are segregated.
and exclude item which are not available for general use on
the date of balance sheet.
Cash and cash equivalents include cash and cheques in
hand, bank balances, demand deposits with banks and
other short term highly liquid investments that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value where
original maturity is three months or less and exclude item
which are not available for general use on the date of
balance sheet.
26. Earnings per share
Basic earnings per share is computed by dividing the profit /
(loss) after tax (including the post-tax effect of extraordinary
items, if any) by the weighted average number of equity
shares outstanding during the year. Diluted earnings per
share is computed by dividing the profit / (loss) after tax
(including the post-tax effect of extraordinary items, if any)
as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating
to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving
basic earnings per share and the weighted average number
of equity shares which could have been issued on the
conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net
profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be converted
as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares
are adjusted for the proceeds receivable had the shares
been actually issued at fair value (i.e. average market value
of the outstanding shares). Dilutive potential equity shares
are determined independently for each period presented.
The number of equity shares and potentially dilutive equity
shares are adjusted for share splits / reverse share splits and
bonus shares, as appropriate.
27. Exceptional Items
An item of income or expense which by its size, nature,
type or incidence requires disclosure in order to improve
an understanding of the performance of the Company is
treated as an exceptional item and disclosed as such in the
financial statements.
28. Segment Reporting - Operating Segment
The Company's operating segments are established on
the basis of those components of the Company that are
evaluated regularly by the Board of Directors (the 'Chief
Operating Decision Maker' as defined in Ind AS 108
- 'Operating Segments'), in deciding how to allocate
resources and in assessing performance. These have been
identified taking into account nature of products and
services, the differing risks and returns and the internal
business reporting systems.
Revenue and Expenses have been identified to a segment
on the basis of relationship to operating activities of the
segment. Revenue and Expenses which relate to enterprise
as a whole and are not allocable to a segment on reasonable
basis have been disclosed as "Un-allocable"
Segment Assets and Segment Liabilities represent Assets
and Liabilities in respective segments. Assets and liabilities
that cannot be allocated to a segment on reasonable basis
have been disclosed as "Un-allocable".
29. Recent Indian Accounting Standard (Ind AS)
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2026,
MCA has notified amendment to Ind AS 21 The Effects of
Changes in Foreign Exchange Rates, effective from 1 April
2025. These amendments define currency exchangeability,
provide guidance on estimating spot exchange rates
when a currency is not exchangeable and include related
disclosure requirements. The Company has reviewed the
new pronouncements and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.
(i) Building include Gross Block Rs. 30.40 Lacs (March 31,2025 Rs. 30.40 Lacs) and Net block Rs. 17.33 Lacs (March 31, 2025: Rs.
17.78 Lacs) in respect two flats, purchased by the company in earlier years, title deed in respect of which is yet to be executed.
{refer Note no. 51(a)}
(ii) Building further include Gross Block Rs. 734.30 Lacs (March 31, 2025 Rs. 734.30 Lacs) and Net Block Rs. 657.80 Lacs (March
31, 2025 Rs. 671.80 Lacs) in respect of capital expenditure incurred by the company on rented premises.
(iii) Furniture & Fixtures include Gross Block Rs. 196.16 Lacs (March 31, 2025: Rs. 196.16 Lacs) and Net Block Rs. 158.38 Lacs
(March 31, 2025 Rs. 178.09 Lacs) in respect of capital expenditure incurred by the company on rented premises.
(iv) Leased Assets
The Company has obtained land(s) on long-term lease basis for a period ranging from 70 to 99 years. The Company has paid
the entire lease premium as an upfront consideration at the commencement of the lease. Consequently, there are no future
lease payments payable, and no lease liability has been recognized. The upfront premium paid constitutes the cost of the Right-
of-Use (ROU) asset. There are no restrictive covenants or options to purchase the asset at the end of the lease term.
(v) Assets given as security for borrowings
All the items of Property, Plant and Equipment of the Company have been given to lenders as security for various borrowing
facilities.
(C) Terms and rights attached to equity shares
The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to
one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company,
after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the
shareholders.
(A) Capital Reserve
It represent the gain of capital nature which mainly include the excess of value of net assets acquired over consideration paid
by the company for business combination in earlier years.
(B) Securities Premium
Securities premium is used to record the premium on issue of shares. This reserve is utilized in accordance with the provisions
of the Act.
(C) General Reserve
The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant
to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies
Act, 2013.
(D) Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends paid or
other distributions out of reserves to shareholders.
(E) Other Comprehensive Income - Others
It represent gain/(loss) on Unquoted Long Term Investments recognised on fair value through other comprehensive income.
Security and Repayment terms:
(a) The classification of loans between current liabilities and non-current liabilities continues based on repayment schedule under
respective loan agreements as no loans have been recalled due to non compliance of conditions under any of the loan
agreements.
(b) Secured rupee term loans from banks: Secured against first and exclusive charge over the assets purchased out of loan. Secured
collaterally by extension of charge over remaining block assets and current assets of the company. Further secured by personal
guarantee of promoter director of the company (Mr Mukhtarual Amin, Mr. Zafarul Amin & Mrs Sahina Mukhtar).
(c) Loans availed from banks in INR carry interest rate of One year Repo Rate spread-concession (i.e 8.05% as at March 31,2026)
and repayable in 54 Equated Monthly Instalments (EMIs) starting from April 2024.
(d) Vehicle Loans availed from banks in INR carry interest rate of Repo Rate spread (i.e 7.55% as at March 31,2026) and repayable
in 36 Equated Monthly Instalments (EMIs) starting from February, 2026.
(a) Government Grant under IDLS, the deferred grant income is recognized in Statement of Profit and Loss on a systematic basis
over the useful life of asset on which such grant is received subject to compliance of other terms & conditions of the scheme.
(b) Under EPCG scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over
a specified period of time apart from maintaining average export growth. In case such commitments are not met, the Company
would be required to pay the duty saved along with interest to the regulatory authorities. The deferred grant income is
recognized in Statement of Profit and Loss on a systematic basis over the periods in which the related performance obligations
are fulfilled.
(A) Security
Working Capital Loans are primarily secured by hypothecation of present and future Current Assets and Actionable Claims (viz.
Inventories, trade receivable / book debts, outstanding monies, receivable claims, bills and materials in transit.
These are further collaterally secured by extension of charge over moveable and immoveable properties of the company.
Further secured by personal guarantee of promoter director of the company (Mr Mukhtarual Amin, Mr. Zafarul Amin & Mrs
Sahina Mukhtar).
(B) Rate of Interest
INR working capital credit facilities carry interest rates ranging from 7.50% to 8.05% p.a. (as at March 31,2025: from 6.35%
to 10.35% p.a.) (i.e. Repo Rate/TBLLR-12 months spread-concession). Foreign Currency Loan (Buyers Credit) carry interest
rate of 4.25% p.a. (as at March 31, 2025: 4.55% p.a.)
Unsecured Loan from associate and other related parties carries interest ranging from 7.00% to 8.50%
Above claims are likely to be decided in favour of the company, hence not provided for.
The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and
timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company or
the claimants as the case may be and therefore it cannot be estimated accurately. The Company does not expect any reimbursement
in respect of above contingent liabilities.
35. Disclosure pursuant to Ind AS 19 “Employee Benefits”:
(a) Defined Contribution Plan
The employees of the Company are members of a state-managed retirement benefit plans namely Provident fund and Pension
and Employee State Insurance (ESI) operated by the Government of India. The Company is required to contribute a specified
percentage of payroll costs to the retirement benefit and ESI schemes.
The only obligation of the company with respect to such retirement and other benefit plan is to make the specified contributions.
The Company has recognized the following amounts in the Income Statement during the year under 'Contribution to staff
provident and other funds' (refer note 28)
(b) Defined Benefit Plan
The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with LIC. The
present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method, which recognises
each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to
build up the final obligation.
(H) Risk Exposure - Asset Volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield,
this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government
securities.
These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable level.
A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity
securities.
The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.
(I) Actuarial assumptions
Actuarial valuation as at the year-end was done in respect of the aforesaid defined benefit plans based on the following
assumptions:
ii) Mortality rates considered are as per the published rates in the India Assured Lives Mortality (2012-14).
iii) Leave policy: Leave balance as at the end of the calendar year is encashed and balance leaves earned thereafter to the extent
not availed by the employees are provided in the accounts.
iv) The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term
that matches that of the liabilities.
v) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over entire
life of the related obligation.
37. (A) Exceptional Item financial year 2025-26: The company has investment of Rs. 1,785.39 Lacs as at 31.03.2026 (As at
31.03.2025: Rs. 1,785.39 Lacs) in the shares of Linea De Seguridad SLU, a wholly owned subsidiary of the company (WOS). Further
the company has Trade Receivable amounting to Rs. 97.34 Lacs (As at 31.03.2025: Rs. 130.86 Lacs) & Advance of Rs. 26.16 Lacs
(As at 31.03.2024: Rs. 22.10 Lacs) from/to the WOS. The net worth of WOS has substantially eroded due to operational losses and
in view of the fact, the management has considered that there may be possibility of impairment in carrying value of investment.
Accordingly, the management has performed an impairment assessment and estimated the recoverable amount of its Investment
in WOS using 'Discounted Cash Flow Valuation Model' (DCF). DCF is complex and involve the use of significant estimates and
assumptions of the management that are dependent on expected future market and economic conditions. As per the assessment
done by the management and valuation specialist, Impairment loss of Rs. 402.50 Lacs (Previous year NIL) has been recognised based
on the value in use as on March 31, 2026. Such impairment loss has been disclosed as Exceptional Item in the statement pf profit
and loss for the year. The accumulated impairment loss on investments in WOS as of March 31,2026 is Rs. 402.50 Lacs (March 31,
2025: NIL)
(B) Exceptional Item financial year 2024-25, amounting to Rs. 620.17 Lacs (income) represent profit on sale of Land and Building
(property). Operation of one of the unit along with entire plant & machinery has been shifted to another location for better
synergies and efficiency in operations; and the property has been disposed off to have additional liquidity for business operations
of the company.
38. Expenditure on Corporate Social Responsibility (CSR)
In pursuance of the provisions of the Companies Act, 2013 and CSR Policy of the Company it is required to spend two percent
of the average net profits for the three immediately preceding financial years towards CSR activities. Details of expenditure on
corporate social responsibility activities as per Section 135 of Companies Act, 2013 read with schedule III are as below:
41. Financial Instruments
(i) Capital Management
The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and
short-term goals of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and
other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings.
The Company's policy is aimed at combination of short-term and long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt
portfolio of the Company.
The capital structure of the company consists of debt, which includes the borrowings including temporary overdrawn balance,
cash and cash equivalents including short term bank deposits, equity comprising issued capital, reserves and non-controlling
interests. The gearing ratio for the year is as under:
(ii) Categories of financial instruments
Calculation of Fair Values
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and
assumptions were used to estimate the fair values of financial instruments:
a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment
as at the Balance Sheet date.
b) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes
and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit
risk of the Company (since the date of inception of the loans).
c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities
is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining
maturities.
d) Cash and cash equivalents, trade receivables, other financial assets, trade payables, and other financial liabilities have fair
values that approximate to their carrying amounts due to their short-term nature.
Fair value measurements recognized in the balance sheet:
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair
value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or
liabilities.
- Level 2 fair value measurements are those derived from inputs other than quoted prices included within 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 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that
are not based on observable market data (unobservable inputs).
(iv) Financial risk management objectives:
The Company's principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The
main purpose of these financial liabilities is to raise finance for the Company's operations. The Company has various financial
assets such as trade receivables, cash and short term deposits, which arise directly from its operations.
The main risks arising from Company's financial instruments are foreign currency risk, credit risk, market risk, interest rate risk
and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.
(a) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and
other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to
their respective carrying amount.
Trade and Other receivables
Customer credit is managed by each business unit subject to the Company's established policies, procedures and control
relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term
upto 30 to 150 days. Credit limits are established for all customers based on internal rating criteria. Outstanding customer
receivables are regularly monitored.
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. Loss rates are based on actual credit loss experience and past trends.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks and derivative contracts.
The Company held cash and cash equivalents of Rs. 1454.79 Lacs at March 31,2026 (March 31, 2025: Rs. 760.51 Lacs). Cash
and cash equivalents are held with reputable and credit-worthy banks.
I ndividual risk limits are set for each counterparty based on financial position, credit rating and past experience. Credit limits
and concentration of exposures are actively monitored by the Management of the Company.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired
(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 types of risk: currency risk, interest rate risk and price risk.
(I) Foreign currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of
the Company is Indian Rupee. Company's exposure is mainly denominated in USD, GBP and Euro. The exchange rates have
changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has put in
place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks. The
Company uses derivative instruments (mainly foreign exchange forward contracts) to mitigate the risk of changes in foreign
currency exchange rate.
The Company do not use derivative financial instruments for trading or speculative purposes.
(II) Interest rate risk:
I nterest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the
reference rates could have an impact on the Company's cash flows as well as costs. The Company also uses a mix of interest
rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short-term
loans.
Interest rate sensitivity analysis:
As at March 31, 2026 interest bearing financial liability stood at Rs. 11,483.01 Lacs (March 31 2025: 13,821.40 Lacs), was
subject to variable interest rates. Increase/decrease of 50 basis points in interest rates at the balance sheet date would result in
decrease/increase in profit before tax of Rs. 57.42 Lacs (March 31,2025: Rs. 69.11 Lacs).
The risk estimates provided assume a parallel shift of 50 basis points interest rate. This calculation also assumes that the change
occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end
balances are not necessarily representative of the average debt outstanding during the period.
This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
Fair value of financial instruments:
All financial assets are initially recognized at fair value of consideration paid. Subsequently, financial assets are carried at fair
value or amortized cost less impairment. Where non-derivative financial assets are carried at fair value, gains and losses on
re-measurement are recognized directly in equity unless the financial assets have been designated as being held at fair value
through profit or loss, in which case the gains and losses are recognized directly in the standalone statement of profit and loss.
Financial assets are designated as being held at fair value through profit or loss when it is necessary to reduce measurement
inconsistency for related assets and liabilities. All financial liabilities other than derivatives are initially recognized at fair value of
consideration received net of transaction costs as appropriate (initial cost) and subsequently carried at amortized cost.
(III) Liquidity risk:
The Company follows a Conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth,
efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent
capital expenditure. The Company has a overdraft facility with banks to support any temporary funding requirements.
The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from
operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
Liquidity table:
Liquidity tables drawn up based on the cash flows of financial liabilities based on the earliest date on which the Company can
be required to pay is disclosed at Note no. 51.
(IV) Other price risk:
The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2026. Equity
investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.
(V) Equity price sensitivity analysis:
There is no exposure to equity price risks as at the reporting date or as at the previous reporting date.
43 . There is no amount due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2026.
44. Disclosure pursuant to Ind AS 37 "Provisions, Contingent Liabilities and Contingent assets”:
The company has recognised contingent liabilities as disclosed in Note 34 above and as such no provision is required to be
made. No provision was outstanding as at the beginning and at the end of the year.
45. Disclosure pursuant to Ind AS 105 "Non-current assets held for sale and discontinued
operations”:
There are no such asset held for sale and discontinued operations.
(E) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognized as per
Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are lump sum amounts provided on
the basis of actuarial valuation, the same is not included above. Further, the value of perquisite, as per Income Tax law, has not
been included in aforesaid disclosure.
(F) No amount has been written off/back or provided as doubtful debts during the year in respect of related parties.
(vi) Terms & Conditions and Settlement
The transactions with the related parties are made on term equivalent to those that prevail in arm's length transactions.
The assessment is under taken each financial year through examining the financial position of the related party and in the
market in which the related party operates. Outstanding balances at the year end are un-secured and settlement occurs in cash.
The company has made donation to its related party in line with the requirement of Section 135 of the Companies Act, 2013.
The expenditure has been approved by the CSR committee of the company.
50. Disclosure pursuant to Ind AS 108 “Operating Segment”
Business Segment
(A) The Company has determined following reporting segments based on the information reviewed by the Company's Chief
Operating Decision Maker ('CODM').
(a) Leather and Leather Products comprises Finished Leather, Leather Shoes, Leather Uppers and other Leather Goods.
(b) Textile Garments comprises Textile garments, riding accessories etc.
The above business segments have been identified considering:
(a) the nature of products
(b) the differing risks and returns
(c) the internal organization and management structure, and
(d) the internal financial reporting systems
52. Additional Regulatory Information
Additional Regulatory Information pursuant to Clause (6L) of General Instructions for preparation of Balance Sheet as given in Part
I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given
elsewhere in any other notes to the Financial Statements.
(a) Title deeds of Immovable Property not held in name of the Company
The title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where
the Company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial
statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date
except for the following:-
(c) Revaluation of Property, Plant & Equipment and Intangible Assets
The Company has not revalued any of its Property, Plant & Equipment and Intangible Asset, during the year.
(d) Details of Benami Property held
The company do not have any Benami Property, where any proceeding has been initiated or pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder.
(e) Borrowings from banks or financial institutions on the basis of security of current assets
The Company has a Working Capital limit of Rs 20900 Lacs from PNB, comprising of Fund-based limits of Rs. 14300 Lacs and
non-fund-based limits of Rs 6600 Lacs. For the said facility, the Company has submitted Stock and debtors statement to the
bank on monthly basis as also the Quarterly Information Statements. The difference between value as per books of accounts
and as per quarterly statements submitted with lenders are as under:
(f) Wilful Defaulter
The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful
defaulter at any time during the financial year or after the end of reporting period but before the date when the financial
statements are approved.
(g) Relationship with Struck off Companies
The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act,1956.
(h) Registration of charges or satisfaction thereof with Registrar of Companies
There is no charges or satisfaction thereof yet to be registered with Registrar of Companies beyond the statutory period as on
the date of Balance Sheet excepting the following charges:
(i) Compliance with number of layers of companies
There is no non-compliance of provisions regarding the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017.
(j) The company has not advanced or loaned or invested funds to any other person(s) or entity (is), including foreign
entities (intermediaries), with the understanding that the intermediary shall;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(k) The Company has not received any funds 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;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(l) Undisclosed income
The Company does not have any transactions which is not recorded in the books of accounts but 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).
(m) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
(n) Compliance with approved Scheme(s) of Arrangements
During the year, no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013.
53. Events occurring after the balance sheet date:
No adjusting or significant non adjusting events have occurred between the reporting date and date of authorization of financial
statements.
54. Audit Trail (Edit log)
The Company has used 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. Further no
instance of audit trail feature being tampered with was noted in respect of accounting software(s) where the audit trail has been
enabled at the database level.
Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record retention
to the extent it was enabled and recorded in the respective years.
56. Figures of the previous year have been regrouped/rearranged wherever required in order to make them comparable with
those of current year; however, such regrouping/rearrangement is not material. Figures have been rounded off to the nearest
rupees in lacs.
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