xxiv) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.
Provisions are not discounted to present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the
current best estimates.
xxv) Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. 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.
xxvi) Earnings per Share
The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the
period by the weighted average number of equity shares outstanding during the period.
The number of shares used in computing diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share, and also the weighted average number of equity shares which
could be issued on the conversion of all dilutive potential equity shares
xxvii) Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle
(determined at 12 months) and other criteria set out in Schedule III of the Act.
xxviii) Cash Flows
Cash flows are reported using the indirect method, where by net 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 cash flows. The cash flows from operating,
investing and financing activities are segregated.
xxix) Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating
Decision Maker (CODM).
xxx) Exceptional Items
When items of income and expense within statement of profit and loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the
nature and amount of such material Items are disclosed separately as exceptional items.
xxxi) Recent accounting pronouncement
The Ministry of Corporate Affairs (“MCA”) notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 on 13 August 2025 (published in the Official Gazette on 19 August 2025). The following
amendments have been notified by the MCA with effect from 01 April 2025 for the preparation and presentation
of financial statements
• Ind AS 1 (Classification of liabilities as current or non-current and non-current liabilities with covenants);
• Ind AS 7 and Ind AS 107 (Disclosures for supplier finance arrangements); and
• Ind AS 12 (Global implementation of OCED Pillar Two model rules).
• Ind AS 21 (Lack of Exchangeability)
The above amendments have no significant impact on the financial statements for the year ending 31 March 2026.
Estimation of Fair value :
The above valuation of the Investment Properties are in accordance with the Ready Reckoner rates as prescril
by the Government of Maharashtra for the Purpose of levying Stamp Duty.Since the Valuation is based on
Published Ready Reckoner rates, the Company has Classified the same under Level 2
iii) Leasing arrangements
The Company has entered into various non cancellable leasing agreements. There is an escalation clause in
lease agreement during the lease year in line with expected general inflation. There are no restrictions impo:
by lease arrangements. There are no contingent rents. The total Future minimum lease rentals receivable at
balancesheet date are as under (for non cancellable Lease Period only)
a) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of ? 10 /-per share. Each holder of equity
share is entitled to one vote per share.
In the event of liquidation of the Company, the holder 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.
Capital Redemption Reserve
Represent Reserve created during the buyback of Equity Shares and it is non distributable Reserve.
Capital Reserve
During amalgamation / merger approved by Honourable Court, the excess of net assets taken over the Consideration
paid, if any, is treated as Capital Reserve.
General Reserve
The reserve arises on transfer portion of the net profit pursuant to the earlier Provisions of the Companies Act, 1956.
Mandatory transfer to general reserve is not required under the Companies Act, 2013.
Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders.
I. Nature of Security
1. Overdraft From H.D.F.C Bank is Secured Against Fixed Deposits of the Company.
2. Working Capital Loan From HDFC Bank is Secured Against the Hypothecation of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of
Scaffolding Division situated at Murbad.
3. Export Packing Credit Against Confirmed Orders From HDFC Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future of Drum Closure Division Situated at Murbad.
4. Export Packing Credit Against Confirmed Orders From Kotak Mahindra Bank is Secured Against the
Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad &
Amravati
5. Export Packing Credit Against Confirmed Orders From CITI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
6. Export Packing Credit Against Confirmed Orders From ICICI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future of Textile Division situated at Murbad & Amravati
7. Working Capital Loan from ICICI Bank is Secured Against the Hypothecation of Stock & Book Debts Both
Present & Future of Textile Division situated at Murbad & Amravati
8. Export Packing Credit Against Confirmed Orders From IDBI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
9. Export Packing Credit Against Confirmed Orders From HSBC Bank is secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
10. Export Packing Credit Against Confirmed Orders From DBS Bank is secured Against the Hypothecation of
Stock & Book Debts Both Present & Future of Drum Closure Division Situated at Murbad.
II. Quarterly Statements of Current Assets filed by the Company with Banks are in agreement with the Books
of Accounts.
Note
1) The transactions with related parties are made on terms equivalent to those that are Prevailing in arm's Length
transactions. Outstanding balances at the year end are unsecured. The Company has not recorded any impairment
of receivables relating to amounts owned by the related Parties. This assessment is undertaken each Financial year
through examining the Financial Position of the related party and the market in which the related Party operates
2) Loan given to subsidiaries have been utilised for the Purposes for which Loan have been advanced by the Parent
Company.
3) Guarantee Provided to the Lenders of the Subsidiaries are for availing working capital Facilities from the lender
banks
* excludes Provision for Gratuity & Compensated leave for Key Managerial Personnel as Separate Actuarial
Valuation is not available
Defined Benefit Plans
The Company has the following Defined Benefit Plans
Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement
plan (“The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested
employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or
termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to
the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes contribution
to the gratuity fund administered by Aditya Birla Sunlife Insurance Company Limited under their respective Group
Gratuity Schemes.
Note 32 : Segment Reporting
Ind AS 108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and major customers.Based on the
management approach as defined in Ind AS 108, the chief operating decision maker (CODM) evaluates the companies
performance and allocates resources based on an analysis of various performance indicators by business segment
and geographic segment. Accordingly, information has been presented both along business segment and geographic
segment.The accounting principle used in the preparation of financial statements are consistently applied to record
revenue and expenditure in individual segments,and are as set out in the significant accounting policies.
The Company has identified Drum Closures,Scaffoldmgs,Yam & Fabric as primary business segments of the Company
The above business segments have been identified considering :
i) The nature of the product
ii ) The deferring risk and returns
iii) The internal financial reporting systems
The Geographical Segments considered for Disclosure are as Follows
a) Revenue within India includes Revenue from Sales of Products (including Scrap) & Services to Customers Located
within India and earnings in India.
b) Revenue outside India includes Revenue from Sales of Products & Services to Customers Located outside India
and earnings outside India and export Incentive benefits.
Revenue and expenses have been accounted for based 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 Particular
segments on a reasonable basis, have been included under “Unallocable”. Inter segment transfer, are accounted for at
competitive market prices, charged to unaffiliated customer for similar goods.
Note 33: Fair Value Measurements
A. Financial instruments by category and fair value hierarchy :
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - 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 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs)
B. Measurement of fair values
The following methods and assumptions were used to estimate the fair values of financial instruments :
i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables,
bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely
due to the short-term maturities of these instruments.
ii) The fair values of the equity / Mutual Fund investments which are quoted, are derived from quoted market
prices in active markets.
Note 34 : Financial Risk Management
Risk management framework
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company’s primary risk management focus is to minimize potential adverse effects of all the risk on its financial
performance. The Board of Directors and the Audit Committee are responsible for overseeing the Company’s risk
assessment and management policies and processes.
The Company's has exposure to the following risks arising from financial instruments:
Ý Credit risk ;
Ý Market risk ; and
Ý Liquidity risk
1. Credit Risk
The Credit risk arises from the possibility that the counter party may not be able to settle their obligations as
agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.
Individual risk limits are set and periodically reviewed on the basis of such Information.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the company. The Company categorises a trade receivable for write off when a
debtor fails to make contractual payments or on case to case basis. Where trade receivables have been written
off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognized as Income in the statement of profit or loss.
The Company measures loss rate for trade receivables from Individual customers based on the historical trend,
industry practices and the business environment in which the entity operates. Loss rates are based on Past Trends.
Based on the historical data, no probable loss on collection of receivable is anticipated & hence no provision is
considered.
In case of Credit risks from balances with banks and financial institutions, the Company attempts to limit the credit
risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit¬
rating agencies.
In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other
counterparties. The Company's maximum exposure in this respect is the maximum amount that the Company would
have to pay if the guarantee is called upon. The maximum exposure relating to financial guarantees instruments is
disclosed in note no 28 (contingent liabilities).
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 mainly of currency risk and interest rate risk. Financial Instrument
affected by Market risks includes loans and borrowings and foreign Currency Receivables and payables. The
Company has set processes and policies to assess, control and monitor the effect of the risk on the financial
performance of the company.
i) Currency Risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the
relevant period.The Company is exposed to currency risk on account of its operating and financing activities.
The functional currency of the Company is Indian Rupee. The senior management personnel are responsible for
identifying the most effective and efficient ways of managing by entering into forward contracts and monitored
by board of directors.
b) Foreign Currency Risk Sensitivity
A reasonably possible strengthening / (weakening) of the Indian Rupee against various below currencies at
31st March would have affected the measurement of financial instruments denominated in those currencies
and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates.The Company has exposure to Interest rate risk, arising principally
on changes in Treasury Bills rates / SOFR rates. As the Percentage of Borrowings with Floating Interest rate
is very small as Compared to Total Borrowings & hence the interest rate risk for the Company as whole is
very Low.
3. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligation on time, or at a
reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet obligation when
due. The Company maintains flexibility in funding by maintaining availability under committed credit lines. The
Management monitors rolling forecasts of the Company's Liquidity position and cash and cash equivalents on the
basis of the expected cash flows.The Company assessed the Concentration of risk with respect to its debt and
concluded it to be low.
Notes
Earnings for Debt Service= Earnings before Interest Cost, depreciation and amortisation, exceptional items and tax.
Debt service = Interest Cost for the year Principal repayment of Long Term debt Liabilities within one year.
Cost of Goods Sold = Cost of Materials Consumed Purchases of Stock in trade Changes in inventories Manufacturing
and operating expenses
Working Capital = Current Assets -Current Liabilities
Earnings before Interest & Taxes = Profit after exceptional items and before tax Interest Cost
Capital Employed = Shareholder Equity Total debt -Deferred tax liability
Note 38 : Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami Property
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year
(v) The Company has not advanced or loaned or invested funds to any other persons or entities including foreign
entities (intermediaries) with the understanding that the intermediary shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company ( Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(vii) The Company does not have any such transactions which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( such
as search or survey or any other relevant provisions of the Income Tax Act, 1961.
Note-39 Other Accompanying Notes
1) The Figures have been rounded off to the nearest lakhs of Rupees upto two decimal Places.
2) . Previous Year Figures have been regrouped / rearranged where ever necessary to make them Comparable with
the Current year Figures
3) . Note 1 to 39 Forms an Intergral Part of the Financial Statements
|