14. PROVISIONS & CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions 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 embodying economic benefits will be required to settle the obligation and the
amount can be reliably estimated. Provisions are not recognised for future operating losses, if any.
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 current pre¬
tax rate.The increase inthe provision dueto the passage oftime is recognised as interest expense.
Contingent liabilities are disclosed in the case of:
- a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to
settle the obligation;
- a present obligation arising from the past events, when no reliable estimate is possible;
- a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent Assets is disclosed when inflow of economic benefits is probable.
15. EARNING PERSHARE:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
(after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares
outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential
equity shares and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equityshares.
16. DIVIDEND:
Dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the
shareholders in a general meeting, or paid.
The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is authorized and
is no longer at the discretion of the Company and is declared by the shareholders. A corresponding amount is recognised
directly in equity.
The annual dividend proposed, if any, bythe Directors forms partofthe Directors' Report
17. BORROWING COSTS:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period oftime to get readyfor its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded asanadjustmenttothe borrowing costs.
18. CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short- term deposits with an
original maturity of three monthsorless, which aresubjectto insignificant riskof changes in value.
For the purpose of statement of cash flow, cash and cash equivalents consist of cash, short-term deposits as defined above,
bank overdrafts and short-term highly liquid investments that are readily convertible to known amounts of cash and which
aresubjectto insignificant riskof changes in value as they are considered as an integral partofthe Company's management.
19. SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares and
share options and buyback of ordinary shares are recognized as a deduction from equity, net of any tax effects.
20. GOVERNMENTGRANTS,SUBSIDIESAND EXPORT INCENTIVES:
Government Grants are recognised at their realizable value when there is reasonable assurance that the grant will be
received and all the attached conditions will be complied with.
When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related
costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in
equal amounts overthe expected useful life ofthe related asset.
Financial Instruments
Methods and assumptions used to estimate thefairvalues
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
currenttransaction between willing parties, otherthan in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
In respect of investments in listed equity instruments and mutual fund, the fair values represents available quoted market price or
net realisable value at the Balance Sheet date.
The carrying amounts of receivables and payables which are shortterm in nature such as trade receivables, other bank balances,
deposits, trade payables and cash and cash equivalents are considered to be the same as their fair values. Further, management
also assessed the carrying amount of certain non-current loans which are a reasonable approximation of their fair values and the
difference between the carrying amounts and fair values is not expected to be significant.
The fair values for long term loans, long term security deposits given and remaining non current financial assets were calculated
based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy
due to the inclusion of unobservable inputs.
The fair values of long term security deposits taken, non-current borrowings and remaining non currentfinancial liabilities are
based on discounted cash flows using a current borrowing rate.They are classified as level 3 fair values in the fair value hierarchy
due to the use of unobservable inputs.
For financial assets and liabilities that are measured atfair value, the carrying amounts are equal to the fair values.
Categories of financial instruments
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Note:41
Financial Risk Management
The Company's financial risk management is an integral part of howto plan and execute its business strategies. The Company's
financial risk management policy is set by the Managing Board. The details of different types of risk and management policy to
address these risks are listed below:
The Company's activities are exposed to various risks viz. Credit risk, Liquidity risk and Market risk. In order to minimise any
adverse effects on the financial performance of the Company, it uses various instruments and follows policies set up by the Board
of Directors/Management,
a. Credit Risk:
Credit risk arises from the possibility that counter party will cause financial loss to the Company by failing to discharge its
obligation as agreed.
Credit risks from balances with banks are managed in accordance with the Company policy. For derivative and financial
instruments, the Company attempts to limit the credit risk by only dealing with reputable banks having high credit-ratings
assigned by credit-rating agencies.
Based on the industry practices and business environment in which the Company operates, management considers that the
trade receivables are in default if the payment are more than 2 years past due.
Trade receivables primarily consists of Outstanding against exports sales and sales to certain domestic customers with no
significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is
taken for collection of overdue receivables.
b. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. The Company liquidity risk management policies include to, at
all times ensure sufficient liquidity to meet its liabilities when they are due, by maintaining adequate sources of financing
from both domestic and international banks at an optimised cost. In addition, processes and policies related to such risks are
overseen by senior management. The Company's senior management monitors the Company's net liquidity position
through rolling forecasts on the basis of expected cashflows.
The Company has sufficient sanctioned line of credit from its bankers / financers; commensurate to its business
requirements.The Company reviews its line of credit available with bankers and lenders from time to time to ensure that at all
point of time there is sufficient availability of line of credit to handle peak business cycle.
The Company pays special attention to the net operating working capital invested in the business. In this regard, as in
previous years, considerable work has been performed to control and reduce collection periods for trade and other
receivables, as well as to optimise accounts payable with the support of banking arrangements to mobilise funds and
minimise inventories,
c. 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. The Company is exposed in the ordinary course of business to risks related to changes in foreign currency
exchange rate and interest rate.
(i) Market Risk-Foreign Exchange
Foreign exchange riskarises on all recognised monetary assets and liabilities which are denominated in a currency other
than the functional currency of the Company. The Company has foreign currency trade payables and receivables.
However, foreign exchange exposure mainly arises from trade receivable and trade payables denominated in foreign
currencies.
Foreign currency risk is that risk in which the fair value or future cashflows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company operates internationally and a portion of its business is transacted
in several currencies and therefore the Company is exposed to foreign exchange risk through its overseas sales and
purchases in various foreign currencies. The Company hedges the receivables as well as payables by forming view after
discussion with Forex Consultant and as per polices set by Management.
(B) Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Companyfor holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) The Company have nottraded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding thatthe 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 have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) thatthe 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 have not any such transaction 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 IncomeTaxAct, 1961).
(viii) The Company has not taken working capital loan from Banks or Financial Institutions.
Note:49
Compliance with section 143(3)for maintenance of audittrail:
In terms of the provisions of the Companies Act, 2013 and rules made thereunder, the accounting software used by the
Company for maintaining its books of account has a feature of recording audittrail for each and every transaction, creating an
edit log of each change made in books of account along with the date when such changes were made and also ensuring that the
audittrail cannot be disabled. Further, the audittrail records have been preserved by the Company in accordance with the
applicable statutory requirements relating to the retentionofbooksofaccount.
Note:50
#denotesthe amountlessthan 50,000/-
Note:51
Figures for the previous year have been regrouped / reclassified , wherever considered necessary.
As per our report of even date attached hereto. For and on behalf of the Board
ForG.M. Kapadia&Co. DEEPAK KOTHARI MITESHKOTHARI
CHARTERED ACCOUNTANTS Chairman&ManagingDirector ExecutiveDirector
FirmRegistrationNo. 104767W DIN. 00088973 DIN.00089076
ATULSHAH RAJ KUMAR GUPTA ANURAGTANDON
Partner CompanySecretary Chief FinancialOfficer
Membership No.039569 & Compliance Officer
Membership No.FCS3281
Place: Mumbai Place: New Delhi Place: New Delhi
Date : 28 May, 2025 Date : 28 May, 2025 Date : 28 May, 2025
|