17. Provisions :
Provisions for legal claims, warranties, discounts and returns are recognised when the
Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be
required in settlement is determined by considering the class of obligations as a whole. A
provision is recognised even if the likelihood of an outflow with respect to any one item
included in the same class obligations may be small.
Provisions are measured at the present value of management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense.
18. Contingent liability :
A disclosure for a contingent liability is 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 that the likelihood of outflow of resources is
remote, no provision or disclosure is made.
19. Revenue Recognition :
Revenue is measured at the fair value of the consideration received or receivable reduced for
customer discounts, rebates granted, other similar allowances, goods and services tax (GST)
and duties collected on behalf of third parties.
The Company recognises revenue when the Company has transferred the significant risks
and rewards of ownership of the goods to the buyer which generally coincides when the
goods are despatched in accordance with the terms of sale, the Company retains neither
continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold, the amount of revenue can be reliably measured and it
is probable that future economic benefits will flow to the Company.
Revenue is recognised on satisfaction of performance obligation upon transfer of control of
the promised goods or services to a customer in an amount being the transaction price that
reflects the consideration which the company expects to receive in exchange for those goods
or services. The performance obligation in case of sale of goods is satisfied at a point in time
which is generally at the time of delivery.
Interest and dividend income
Interest income is recognised in statement of profit and loss using effective interest method.
Dividend income is recognised when the Company's right to receive dividend is established.
20. Retirement and other employment benefits :
Short term employee benefits
Liabilities for salaries, wages and performance incentives including non- monetary benefits
that are expected to be settled wholly within twelve months after the end of the period in
which the employees render the related service are recognised in respect of employees'
services up to the end of the reporting period and are measured at the amounts expected to
be paid when the liabilities are settled. The liabilities are presented as current employee
benefits obligations in the Balance Sheet.
Long term employee benefits
Defined contribution plans :
The Company has Defined Contribution Plans for its employees such as Provident Fund,
Employee's State Insurance, etc. and contribution to these plans are charged to the Statement
of Profit and Loss as incurred, as the Company has no further obligation beyond making the
contributions.
Defined benefit plans :
Gratuity: The liability or asset recognised in the balance sheet in respect of defined benefit
gratuity plans is the present value of the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The defined benefit obligation is calculated annually
by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting
period on government bonds that have terms approximating to the terms of the related
obligation. The net interest cost is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognised in the period in which they occur, directly in other
comprehensive. They are included in retained earnings in the statement of changes in equity
and in the balance sheet. Changes in present value of the defined benefit obligation resulting
from plan amendments or curtailments are recognised immediately in profit or loss as past
service cost.
21. Taxes of Income :
Tax expense for the period, comprising current tax and deferred tax, are included in the
determination of the net profit or loss for the period. Current tax is measured at the amount
expected to be paid to the tax authorities in accordance with prevailing income tax law.
Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted, at the time of reporting.
Current taxes are recognised in statement of profit or loss, except when they relate to items
recognised in other comprehensive income or equity, in which case the tax is recognised in
other comprehensive income or equity. Income tax assets and liabilities are presented
separately in the Balance Sheet except where there is a right of set-off within fiscal
jurisdictions and an intention to settle such balances on a net basis.
Deferred taxes
Deferred tax is provided using the liability method on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the Balance Sheet at the
reporting date.
Deferred tax assets and liabilities are measured based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date and are expected to apply in the
year when the related deferred tax asset is expected to realise or the deferred tax liability is
expected to settle.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit
or loss (either in other comprehensive income or in equity). Deferred tax items are
recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity.
Deferred tax assets and deferred tax liabilities are set off if a legally enforceable right exists
to set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxation authority.
22. Earnings per Share :
The earnings considered in ascertaining the Company's earnings per share comprise of the
net profit / (loss) after tax for the period. The number of shares used in computing the basic
earnings per share is the weighted average number of shares outstanding during the period.
The number of shares used in computing diluted earnings per share comprises the weighted
average share considered for deriving basic earnings per share, and also the weighted
average number of shares, which would have been issued on the conversion of dilutive
potential equity shares, if any.
23. Fair value measurement :
Fair value is 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 fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset
or liability
The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants
act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.
All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based on the
lowest level input that is significant to the fair value measurement as a whole :
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable
24. Segment reporting :
Since the Company is has only one business/ operating segment, no further disclosure is
given.
25. Earnings per share :
The Company presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary
shareholders of the Company by weighted-average number of ordinary shares outstanding
during the year, adjusted for own shares held. Diluted earnings per share is determined by
adjusting the profit or loss attributable to ordinary shareholders and weighted-average
number of ordinary shares outstanding during the year, adjusted for own shares held, for the
effects of all dilutive potential ordinary shares, which comprises convertible instruments and
share options (if any) granted to employees.
26. Previous figures have been reclassified/regrouped wherever necessary.
For and on behalf of the Board of Directors
Mr. Pankaj N Saxena Mr. Chaitanya Dhareshwar
Managing Director Director
DIN :10289985 DIN :06653029
Date : 30-05-2024 Date : 30-05-2024
Place : Jamnagar Place : Mumbai
Mr. Ankur T Khona Mr. Sumit Patidar
Chief Financial Officer Company Secretary
Pan No : DLVPK8223E Pan No : 4680G
Date : 30-05-2024 Date: 30-05-2024
Place: Mumbai Place: Mumbai
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