24. Provisions, Contingent liabilities and Capital Commitments
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.
25. 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.
In 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.
26. Revenue Recognition
Sale of Goods and services
Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the
consideration which the Company expects to receive in exchange for those goods.
Revenue from the sale of goods is recognised at the point in time when (a) control is transferred to the customer,
which is mainly upon delivery in case of domestic sales and on issuance of Shipping Bill in case of export sales.
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 from the sale of goods excludes amounts collected on behalf of third parties, such as Goods & Services Tax
(GST).
Interest Income
Interest 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.
Export Incentives
Export Incentives are recognised when certainty of receipt is established.
Insurance Claim
Insurance 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.
27. 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
In 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.
Leave encashment: 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.
28. Research and Development Expenditure
Expenditure on research of revenue nature is charged to Statement of Profit and Loss and that of capital nature is
capitalized as fixed assets.
29. Taxes on Income
Current tax is the amount of tax payable determined in accordance with the applicable tax rates and provisions of
the Income Tax Act, 1961 and other applicable tax laws.
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.
Current and deferred taxes relating to items directly recognised in reserves are recognised in reserves and not in the
Statement of Profit and Loss.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax. Accordingly, MAT is recognised as an deferred tax asset in the Balance Sheet
when it is probable that future economic benefit associated with it will flow to the Company.
30. Dividend Distribution
Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are
approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
31. Cash Flow Statement
Cash flows statement is prepared as per the Indirect Method specified in Ind AS 7 on Cash Flows. Cash and cash
equivalents (including bank balances) shown in statement of cash flows exclude item which are not available for
general use on the date of balance sheet.
32. 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.
33. Segment Reporting
Operating segments are reported in consistent manner with the internal reporting provided to the Chief Operating
Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing
performance of the Company.
34. 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, 2025,
MCA has notified amendments to Ind AS - 117 Insurance Contracts. Ind AS 116 - Leases, relating to sale and
leaseback transactions and consequential amendments to other standards which are not material, applicable to
the Company w.e.f. April 1, 2024. 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.
On 7 May 2025, MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2025, which made
certain amendments 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 does not expect this
amendment to have any significant impact in its financial statements.
(i) Leasehold Land (Right-to-use Assets)
The lease term in respect of assets acquired under finance leases expires within 70 to 99 years.
(ii) 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.
(iii) The management has carried out an exercise of identifying the asset that may have been impaired, during the year, in respect of each cash
generating unit. On the basis of review carried out by the management, there was no impairment loss on fixed assets during the year.
(B) Terms and rights attached to equity shares
The company has only one class of equity shares having a par value of Re. 1/- 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.
34. Expenditure on Corporate Social Responsibility (CSR)
Provisions of the Companies Act, 2013 in respect of Corporate Social Responsibility (CSR) is not applicable to the company.
35. Disclosure pursuant to Ind AS 17 "Leases":
(a) Where the company is Lessor
Finance Lease: The Company has not entered into any such lease arrangements.
(b) Where the company is Lessee
The company has lease arrangement for various land leases (Right-to-use Assets) for terms of 30 years and 90 years . The details are as under:
36. 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:
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).
(iii) 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 0 to 120 days credit term. 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.26.61 Lacs at March 31, 2025 (March 31, 2024: Rs. 40.08 Lacs). Cash and cash equivalents are held
with reputable and credit-worthy banks.
Individual risk limits are set for each counter-party 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 ofthe Company is Indian Rupee.
Company's exposure is mainly denominated in USD, GBP and Euro. 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:
Interest 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, 2025 interest bearing financial liability (secured loan from banks) stood at Rs. 1,980.08 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. 9.90 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 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.
(IV) Other price risk:
The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2025. 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.
37. There is no amount due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2025.
38. Disclosure pursuant to Ind AS 37 "Provisions, Contingent Liabilities and Contingent assets":
There is no contingent liabilities as disclosed in Note 32 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.
39. 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.
41. 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.
(b) Fair Value of Investment Property
The Company do not have any Investment property.
(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.
(f) Wilful Defaulter
The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful 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.
(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 TaxAct, 1961 ( such as, search or survey or any other relevant provisions of the Income TaxAct,
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.
47. Figures of the previous year have been regrouped/rearranged wherever required in order to make them comparable with
those of current year. Figures have been rounded off to the nearest rupees in lacs.
As per our attached report of even date For and on behalf of the Board
For Kapoor Tandon & Co.
Chartered Accountants
Firm Registration No. 000952CC
Veqarul Amin Iftikharul Amin
Managing Director Director
DIN:00037469 DIN:00037424
Divyank Nigam
Partner
M. No. 438443
Habibullah Khan Sharad Chandra Shukla
Place: Kanpur CFO Company Secretary
Date: 30-05-2025
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