IX) Provisions and Contingent Liabilities
Provisions are recognised when the Company has 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.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
X) Foreign Currency Transactions & Translations
The functional currency of the Company is Indian Rupee. These Financial Statements are presented in Indian Rupee
(rounded off to the nearest Lacs).
Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date
of the transaction. Gains & losses arising on account of realization are accounted for in the Statement of Profit & Loss.
Monetary Assets & Liabilities in foreign currency that are outstanding at the yearend are translated at the yearend
exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
XI) Cash and Cash Equivalents
Cash and Cash Equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.
XII) Employee Benefits
Defined Contribution Plan
The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution
retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the employees
and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered
employee's salary.
Defined Benefit Plan
Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The Company's liability
is actuarially determined using the Projected Unit Credit method at the end of the year in accordance with the provision
of Ind AS 19 - Employee Benefits.
The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or liability. Gains
and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive
income and are not reclassified to profit or loss in subsequent periods.
The Company recognises the changes in the net defined benefit obligation like service costs comprising current service
costs, past-service costs, gains and losses on curtailments and non-routine settlements and net interest expense or
income, as an expense in the Statement of Profit and Loss.
Short term employee benefits are charged off at the undiscounted amount in the year in which the related services
are rendered
XIII) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for 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 as an adjustment to the borrowing costs.
XIV) Leases
Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance
leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the
inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a
straight line basis in net profit in the Statement of Profit & Loss over the lease term.
XV) Government Grants
The Company recognizes government grants only when there is reasonable assurance that the conditions attached to
them shall be complied with and the grants will be received. Grants related to assets are treated as deferred income and
are recognized as other income in the Statement of profit & loss on a systematic and rational basis over the useful life of
the asset. Grants related to income are recognized on a systematic basis over the periods necessary to match them with
the related costs which they are intended to compensate and are deducted from the expense in the statement of profit
& loss.
XVI) Income Taxes
Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to items recognized
directly in equity, in which case it is recognized in other comprehensive income. Provision for current tax is made at the
current tax rates based on assessable income.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the Financial Statements except when the deferred income tax arises
from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and
affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and
liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment
date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided
on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or
branch will not be distributed in the foreseeable future. The company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.
XVII) Earnings per Share
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of
the Company by the weighted average number of equity shares outstanding during the period. 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 for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive
potential equity shares.
XVIII) Current and Non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.
An asset is classified as current when it is:
i) expected to be realised or intended to be sold or consumed in the normal operating cycle,
ii) held primarily for the purpose of trading,
iii) expected to be realised within twelve months after the reporting period, or
iv) cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.
A liability is classified as current when it is:
i) it is expected to be settled in the normal operating cycle,
ii) it is due to be settled within twelve months after the reporting period, or
iii) there is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent.
XIX) Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
XX) Rounding of Amounts
All amounts disclosed in the standalone Financial Statements and notes have been rounded off to the nearest Lacs (with
two places of decimal) as per the requirement of Schedule III, unless otherwise stated.
XXI) Statement of Cash flows
Cash flows are reported using the indirect method, whereby profit for the period 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 of the Company are segregated.
e) Terms/rights attached to each class of shares
Equity Shares:
The Company has only one class of equity shares having a par value of Rs.1/-. Each holder of equity share 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 any of the 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.
f) Share warrants / Shares issued
(1) The Company has issued and allotted 2,24,00,000 Equity Share Warrants of Rs. 18 each to Beacon Stone Capital
VCC, Silver Stallion Ltd., Karan Agrawal, Shailaja Agrawal and Tushar Agrawal on 11th October, 2023. The Company
has received 25% upfront money amounting to Rs. 1008 lakhs against the allotment of 2,24,00,000 Equity Share
Warrants, convertible into One (1) Equity Share and the conversion can be exercised at any time during the period
of Eighteen months from the date of allotment of Equity Share Warrants, as the case maybe, on such terms and
conditions as applicable.
Out of the above Equity Share Warrants, the company has allotted 87,35,000 equity shares to Beacon Stone Capital
VCC, Karan Agrawal, Shailaja Agrawal, Tushar Agrawal after receiving 75% of balance on 15/01/2024 through
conversion of share warrants on preferential basis in terms of chapter V of SEBI (ICDR) Regulation 2018.
(2) The Company has issued and allotted 2,07,00,000 Equity Share Warrants of Rs. 65 each to Promoters and Non¬
promoters category on 30th January, 2025. The Company has received 25% upfront money amounting to Rs. 3363.75
lakhs against the allotment of 2,07,00,000 Equity Share Warrants, convertible into One (1) Equity Share and the
42 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 business plan coupled with long term and
short term strategic investment and expansion plans. The funding needs are met through cash generated from operations and
short term bank borrowings.
The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt
portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances
and current investments.
The table below summarises the capital, net debt and net debt to equity ratio of the Company.
II) Fair Value Hierarchy
AH Financial Assets & Financial Liabilities are carried at amortised cost.
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
The following table represents the fair value hierarchy of Financial Assets and Financial Liabilities measured at Fair Value
on a recurring basis :
III) Financial Risk Management
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest
rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The
Company's focus is on foreseeing the unpredictability of financial markets and seek to minimize potential adverse effects
on its financial performance.
a) Market Risk -
Market Risk Comprises of Foreign Currency Exchange Rate Risk, Interest Rate Risk & Equity Price Risk
i) Exchange Rate Risk
The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit and
Loss and Equity, where any transactions are denominated in a currency other than the functional currency of
the Company.
The Company's Exchange Rate Risk exposure is primarily due to Trade Payables, Trade Receivables and Borrowings
in the form of Buyers' Credit denominated in foreign currencies. The Company uses foreign exchange and forward
contracts primarily to hedge foreign exchange exposure.
An appreciation/depreciation of the foreign currencies with respect to functional currency of the Company by
1% would result in an decrease/increase in the Company's Net Profit before Tax by approximately Rs 4.26 lakhs
for the year ended March 31, 2025 (March 31, 2024 : - Rs 3.73 lakhs)
ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company constantly monitors the credit markets and rebalances its
financing strategies to achieve an optimal maturity profile and financing cost.
iii) Equity Price Risk
Equity price risk is related to change in market reference price of investments in equity securities held by the
Company. The Company has made investments in its subsidiaries, hence the Company is not primarily exposed
to equity price risk.
b) Liquidity Risk -
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital facilities from various banks. The Company
invests its surplus funds in bank fixed deposit and in mutual funds, which carry no or low market risk.
The following table shows a maturity analysis of the Company's Financial Liabilities on the basis of undiscounted
contractual payments :
c) Credit Risk -
Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the
contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration
of creditworthiness.
Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans Receivables,
Investments, Cash and Cash Equivalents and Financial Guarantees provided by the Company. None of the financial
instruments of the Company result in material concentration of credit risk.
The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating the risk of
financial loss from defaults. The Company manages risks through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal
course of business.
44 Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are subject to
reconciliation/confirmations from the respective parties. The management does not expect any material differences
affecting the financial statement for the year.
45 The Company has presented segment information in the consolidated financial statements which are presented in the
same financial report. Accordingly, in terms of Paragraph 4 of Ind AS 108 'Operating Segments', no disclosures related to
segments are presented in this standalone financial statements.
46 Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered
necessary to conform to the current year presentation.
47 The company does not have any property whose title deeds are not held in the name of the company.
48 Company has not revalued its Investment Property during the financial year 2024-25
49 Company has not revalued its Property, Plant and Equipment during the financial year 2024-25
50 Company does not have any intangible asset so there cannot be any revaluation of the same. The Company has no
Intangible Assets under development during the financial year 2024-25.
51 The company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
the rules made thereunder.
52 The Company has borrowings from banks or financial institutions on the basis of security of current assets.
The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.
53 The company has not been declared as a wilful defaulter by any bank or financial Institution or other lender till the
Financial Year 2024-25
54 As per the information available with the management, the company has not entered into any transactions with the
companies who have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956,
55 Company has filed necessary forms with ROC for Creation and satisfaction of Charges within stipulated time period during
the financial year 2024-25
* The ratio has been decreased due to the issue of equity shares through share warrant & repayment of debts.
** The ratio has increased due to the effective utilisation of resources which resulted in increase in profit.
*** The ratio has decreased due to the change in equity capital.
# The ratio has decreased due to increase in inventory as export sales and import purchased led to higher inventory.
## The ratio has decreased due to better capacity utilisation and enhenced sales turnover with existing working capital.
58 Compliance with approved Scheme(s) of Arrangements
The above clause is not applicable
59 Utilisation of Borrowed funds and share premium
Company has utilised its borrowed fund for its business purpose
As per our Report attached of even date For and on behalf of the Board of Directors
For S Bhalotia & Associates
Chartered Accountants
Firm Regn. No. 325040E Sushil Kumar Agrawal Karan Agrawal
( Managing Director ) (Whole Time Director )
DIN - 00091793 DIN - 05348309
Biplab Das Siddhartha Shankar Roy Mahendra Kumar Bang Shruti Agarwal
(Partner) (Director) ( Chief Financial Officer ) ( Company Secretary )
Membership No. 074138 DIN - 08458092
Kolkata
14th day of May, 2025
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