ii) Provision for obsolete/ old inventories is made, wherever required.
iii) In view of substantially large number of items in work- in- progress, it is not feasible to maintain the
status of movement of each item at shop floor on perpetual basis. The Company, however, physically
verifies such stocks at the end of the year and valuation is made on the basis of such physical verification.
9a. Write downs of inventories (net of reversal) related to old stock of finished goods amounted to Rs
48.34 (Previous year 138.59). It is recognised as expense during the year and included in Changes in
inventories of finished goods, stock-in-trade and work-in-progress in statement of profit and loss.
9b. Inventories are hypothecated to secure borrowings. Refer to Note No. 21.
10. Trade Receivables
Accounting Policy
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary
course of business. If the receivable is expected to be collected within a period of 12 months or less
from the reporting date (or in the normal operating cycle of the business, if longer), they are classified
as current assets otherwise as non-current assets. Trade receivables are measured at their transaction
price unless it contains a significant financing component.
Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original
maturity of three months or less for the purposes of the Cash Flow Statement, cash and cash equivalents
is as defined above, net of outstanding bank overdrafts. In the balance sheet, bank overdrafts are shown
within borrowings in current liabilities.
14. Current Tax Assets (Net)
Accounting Policy:
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. It is measured using
a. Terms and Rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company,
the holders of equity shares will be entitled to receive remaining assets of the Company in proportion
to the number of equity shares held by the shareholders. There is no restriction on distribution of
dividend. However dividend other than interim dividend, is subject to the approval of the shareholders
in the Annual General Meeting.
Nature and purpose of other reserves/ other equity
Securities Premium represents the amount received in excess of par value of equity share and can be
utilized in accordance with the provisions of the Companies Act, 2013.
General Reserve represents appropriation of a portion to general reserves out of the profits voluntarily to
meet future contingencies. The said reserve is available for payment of dividend to shareholders as per the
provisions of the Companies Act, 2013.
Capital reserve represents forfeited amount of Equity Share Capital and can be utilised in accordance with
the provision of the Companies Act 2013
Retained Earnings represents profits earned by the Company after transfer to general reserve and payment
of dividend to shareholders.
The lease payments that are not paid at the commencement date are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in
the Company, the lessee's incremental borrowing rate is used, being the rate that the individual lessee
would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms, security and conditions.
Lease payments included in the measurement of the lease liability comprise:
• Fixed lease payments (including in-substance fixed payments) payable during the lease term and
under reasonably certain extension options, less any lease incentives;
• Variable lease payments that depend on an index or rate, initially measured using the index or rate
at the commencement date;
• The amount expected to be payable by the lessee under residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option
to terminate the lease.
The lease liability is presented as a separate line in the Balance Sheet.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the
lease payments made.
The Company re measures the lease liability (and makes a corresponding adjustment to the related
right-of-use asset) whenever:
• The lease term has changed or there is a change in the assessment of exercise of a purchase option,
in which case the lease liability is re measured by discounting the revised lease payments using a
revised discount rate.
• A lease contract is modified and the lease modification is not accounted for as a separate lease,
in which case the lease liability is re measured by discounting the revised lease payments using a
revised discount rate.
19. Non Current Provisions
Accounting Policy:
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past
event and it is probable that it is required to settle the obligation, and a reliable estimate can be made
20. Deferred Tax Liabilities (Net)
Accounting Policy:
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. Deferred
tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are
generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part
of the asset to be recovered. Unrecognized deferred tax assets are reassessed at each reporting date
and recognised to the extent that it has become probable that future taxable profits will be available
against which they can be used.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Securities:-
Primary: Exclusive Hypothecation 1st charge on the entire current assets of company (both present &
future) comprising stock of raw materials, stock in process, finished goods, stores, receivables etc. including
the goods in transit and all other miscellaneous current assets, and receivables at all units of the company
and bills drawn by the company and submitted to the Bank for discounting.
Collateral:
i) Exclusive 1st charge by way of hypothecation of entire moveable fixed assets of the borrower including
plant and machineries, equipment, vehicles, and other moveable fixed assets both present and future
of the Company at Guna, Baddi and Rajgarh units.
ii) Exclusive 1st equitable mortgage charge over land and building in the name of the company situated
at Baddi unit, Plot No. 121, Baddi, Tehsil Nalagarh , Solan, Himachal Pradesh - 175 205 measuring 34.90
28. Revenue from Operations:
Accounting Policy:
a) The Company recognizes revenue when it satisfies a performance obligation in accordance with
the provisions of contract with the customer. This is achieved when control of the product has
been transferred to the customer, which is generally determined when title, ownership, risk of
obsolescence and loss pass to the customer and the Company has the present right to payment, all
of which occurs at a point in time upon shipment or delivery of the product. The Company considers
shipping and handling activities as costs to fulfil the promise to transfer the related products and
the customer payments for shipping and handling costs are recorded as a component of revenue.
Performance Obligation is achieved when:
i) the Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
ii) the Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
iii) the amount of revenue can be measured reliably;
iv) it is probable that the economic benefits associated with the transaction will flow to the
Company; and
v) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that performance obligation. The transaction
price of goods sold and services rendered is net of variable consideration on account of various
discounts and schemes offered by the Company as part of the contract. Shipping and handling
amounts invoiced to customers are included in revenue and the related shipping and handling
costs incurred are included in freight and forwarding expenses when the Company is acting as
principal in the shipping and handling arrangement. No element of significant financing is deemed
present as the sales are made with a credit term, which is consistent with market practice. Sales
exclude Goods and Service Tax.
b) Revenue (other than sale) is recognised to the extent that it is probable that the economic benefits
will flow to the company and the revenue can be reliably measured. Export incentives and
subsidies are recognized when there is reasonable assurance that the Company will comply with
the conditions and the incentive will be received.
c) Interest other than interest on overdue debts from customers, is recognised on time proportion
basis.
^Includes on account of written down of stores and spare parts amounting Rs. Nil (Previous Year-
Rs.15.96 lakhs)
36. Current Tax
Accounting Policy:
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. It is measured using
tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are
offset only if, the Company:
a) Has a legally enforceable right to set off the recognised amounts; and
b) Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
37. Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number ofequity shares outstandingduring the year.The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus
issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that
have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
38. Contingent liabilities, contingent assets and commitments
Accounting Policy:
A contingent liability is a possible obligation that arises from a past event, with the resolution of
the contingency dependent on uncertain future events, or a present obligation where no outflow is
probable. Major contingent liabilities are disclosed in the financial statements unless the possibility
of an outflow of economic resources is remote. Contingent assets are not recognized in the financial
statements but disclosed, where an inflow of economic benefit is probable.
benefit plan for qualifying employees. Under the plan, the Company is required to contribute a
specified percentage of payroll cost to the retirement benefit plan to fund the benefits. During the year
the Company has contributed to Government Provident Fund Rs.510.53 (Previous year Rs. 513.15).
(ii) Defined Benefit Plan:
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount
of gratuity payable on retirement/termination is the employees last drawn basic salary per month
computed proportionately for 15 days salary multiplied for the number of years of service subject to
maximum limit of Rs. 20 Lakhs. Gratuity liability is being contributed to the Group Gratuity-cum-Life
Assurance Cash Accumulation Policy administered by the LIC of India.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation
for gratuity were carried out as at 31st March, 2026. The present value of the defined benefit obligations
and the related current service cost and past service cost, were measured using the Projected Unit
Credit Method.
A. Based on the actuarial valuation obtained in this respect, the following table sets out the status of the
gratuity plan and the amounts recognised in the Company's financial statements as at balance sheet
date:
F. Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such
Company is exposed to various risks as follow -
a) Salary Increases- Actual Salary increases will increase the plan's liability. Increase in salary increase
rate assumptions in future valuation will also increase the liability.
b) Investment Risk: If Plan is funded then asset liablity mismatch and actual investment return on
assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan's liability.
d) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumption in
the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change
of withdrawal rates at subsequent valuations can impact Plan's liability.
*Shivalik Solid Waste Management Limited
19,000 (Previous Year '19000') Equity Share of Rs. 10 each
B. Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are:
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
There are no financial assets or financial liabilities which are required to measure at fair value using
recurring fair value measurements.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes
listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of
all equity instruments (including bonds) which are traded in the stock exchanges is valued using the
closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market (for example,
traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize
the use of observable market data and rely as little as possible on entity-specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument
is included in level 3.
There are no transfers between level 1 and level 2 during the year
The management considers that carrying amount of financial assets and financial liabilities are at
amortised cost which approximates to their fair value.
II. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk;
- market risk; and
- currency risk
Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The board of directors has established the processes to ensure
that executive management controls risks through the mechanism of property defined framework.
The Company's risk management policies are established to identify and analyze the risks faced by
the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed by the board annually to reflect changes in
market conditions and the Company's activities. The Company, through its training and management
standards and procedures, aims to maintain a disciplined and constructive control environment in
which all employees understand their roles and obligations.
The Company's Audit Committee oversees compliance with the Company's risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal
Audit undertakes regular reviews of risk management controls and procedures, the results of which are
reported to the Audit Committee.
i. 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
receivables from customers.
The carrying amount of financial assets represents the maximum credit exposure.
The Company monitor credit risk very closely both in domestic and export market.
The Management impact analysis shows credit risk and impact assessment as low.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry and country in which customers operate.
The Company management has established a credit policy under which each new customer is analyzed
individually for creditworthiness as per the Company's standard payment and delivery terms and
conditions.The Company's review includes market check, industry feedback, past financials and external
ratings, if they are available. Sale limits are established for each customer and reviewed periodically.
More than 60 % of the Company's customers have been transacting with the Company for over
four years. In monitoring customer credit risk, customers are reviewed according to their credit
characteristics, including whether they are an individual or a legal entity, their geographic location,
industry and existence of previous financial difficulties.
In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109
Financial Instruments for recognition of impairment loss allowance. The application of simplified
approach does not require the Company to track changes in credit risk. The Company calculates the
expected credit losses on trade receivables using a provision matrix on the basis of its historical credit
loss experience.
The carrying amount net of credit loss allowances of trade receivables is Rs. 3307.70 (31st March, 2025
- Rs. 3604.83)
ii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company's
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity
to meet its liabilities when they are fallen due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company's reputation
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
obligations when due and to close out market positions. Due to the dynamic nature of the underlying
businesses, Company treasury maintains flexibility in funding by maintaining availability under
committed credit lines.
Management monitors rolling forecasts of the Company's liquidity position (comprising the undrawn
borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This
is generally carried out at unit level and monitored through caproate office of the Company in
accordance with practice and limits set by the Company. These limits vary by location to take into
account requirement, future cash flow and the liquidity in which the entity operates. In addition, the
Company's liquidity management strategy involves projecting cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.
Provision against disputed Statutory dues not considered above as outflow depends upon conclusion
of legal procedings
The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows
relating to financial liabilities held for liquidity / credit management purposes and which are not usually
closed out before contractual maturity.
The interest payments on variable interest rate loans in the table above reflect market forward interest
rates at the reporting date and these amounts may change as market interest rates change.
iii. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates
- will affect the Company's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters,
while optimizing the return.
The Company generally uses derivatives like forward contracts to manage market risks on account
of foreign exchange. All such transactions are carried out within the guidelines set by the Board of
Directors.
iii (a). Currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD and small exposure in EUR and GBP. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the
company's functional currency (INR). The risk is measured through a forecast of highly probable foreign
currency cash flows. The objective of the hedges is to minimize the volatility of the INR cash flows of
highly probable forecast transactions by hedging the foreign exchange inflows on regular basis.
Currency risks related to the principal amounts of the Company's foreign currency payables, if any, are
partially hedged using forward contracts taken by the Company.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Company's
policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign
currencies at spot rates when necessary to address short-term imbalances.
iii. (b) Interest rate risk
The Company's main interest rate risk arises from long-term borrowings with variable rates, which
expose the Company to cash flow interest rate risk. During 31st March, 2026 and 31st March, 2025, the
Company's borrowings at variable rate were denominated in Indian Rupees and US Dollars.
Currently the Company's borrowings are within acceptable risk levels, as determined by the
management, hence the Company has not taken any hedge to mitigate the interest rate risk and
movement in foreign currency.
Exposure to interest rate risk
The interest rate profile of the Company's interest-bearing financial instrument is as follows
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 50 basis points in interest rates at the reporting date would have
increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that
all other variables, in particular foreign currency exchange rates, remain constant.
45. Balances of certain trade receivables and trade payables are in the process of confirmation and/or
reconciliation.
46. Segment Reporting
According to Ind AS 108, identification of operating segments is based on Chief Operating Decision
Maker (CODM) approach for making decisions about allocating resources to the segment and assessing
its performance. The business activity of the company falls within one broad business segment viz.
"Textile" and substantially sale of the product is within the country. The Gross income and profit from
the other segment is below the norms prescribed in Ind AS 108. Hence, the disclosure requirement of
Ind AS 108 of 'Segment Reporting' is not considered.
47. Capital management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Management monitors the return on
capital as well as the level of dividends to ordinary shareholders. The following table summarises the
capital of the Company :
As the company's networth or turnover or net profit criteria for applicability of Corporate Social
Responsibility (CSR) under section 135(1) of the Companies Act, 2013 is below the threshhold limit
in the preceeding financial year , therefore the company is not statutorily required to incur any
expenditure for the year under section 135(5) of the Companies Act, 2013 relating to Corporate Social
Responsibility (CSR).However, in previous year 24-25 the company has voluntarily incurred expenditure
amounting to Rs. 70.92 lakh towards CSR activities during the year.
49. Dividend
The Board of directors in their meeting held on 26th May, 2026, have not recommended any dividend.
50. The figures for the previous periods have been regrouped/rearranged, wherever considered
necessary, to conform current year classifications.
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