(g) Provisions (other than employee benefits), Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present legal obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions are determined based on best estimate required to
settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the Current best estimates.
Contingent liabilities are not recognized but are disclosed in the notes to the Financial Statements.
A contingent asset is neither recognized nor disclosed if inflow of economic benefit is probable.
(h) Revenue Recognition
1. Sale of goods:
Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of
the consideration received or receivable, net of returns, trade discounts and volume rebates. This
inter alia involves discounting of the consideration due to the present value if payment extends
beyond normal credit terms. Revenue is recognized when control of promised products are
transferred to the customers in an amount that reflects the consideration expected to be received in
exchange for those products.
The timing of transfers of risks and rewards varies depending on the individual terms of sale. For
sale of Metal, usually such transfer occurs when the product is received at the customer’s
warehouse or factory.
(i) Recognition of dividend income, interest income
Dividend on Financial Instruments is recognized as and when realized. Interest is recognized on
accrual basis.
(j) Income tax
Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent
that it relates to a business combination or to an item recognized directly in equity or in other
comprehensive income.
1. Current tax
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. The amount
of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to
set off the recognized amounts, and it is intended to realize the asset and settle the liability on a
net basis or simultaneously.
2. Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax
credits.
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will
be available against which they can be used. Therefore, in case of a history of recent losses, the
Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary
differences or there is convincing other evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or
recognized, are reviewed at each reporting date and are recognized / reduced to the extent that it is
probable/ no longer probable respectively that the related tax benefit will be realized.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on the laws that have been enacted or substantively
enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the way
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets
and liabilities.
Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different taxable entities, but they intend to settle current tax liabilities
and assets on net basis or their tax assists and liabilities will be realized simultaneously.
(k) Cash and Cash Equivalents
Cash and Cash equivalents include cash and cheques in hand, bank balances, demand deposits with
banks and other short term highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value where original maturity is three
months or less.
(l) Borrowing cost
Borrowing cost are interest and other costs incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a
substantial period of time to get ready for their intended use are capitalized as part of cost of asset.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
(m) Earnings per share
Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to
Equity Shareholders of the Company by the weighted average number of Equity Shares outstanding
during the year.
Diluted earnings per Share is calculated by dividing net profit attributable to equity Shareholders
(after adjustment for diluted earnings) by average number of weighted equity shares outstanding
during the year plus potential equity shares.
(n) Cash Flow Statement
Cash flows are reported using the indirect method whereby the profit before tax is adjusted for the
effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating
cash receipts or payments and items 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.
Note -27. Additional Regulatory Information
(A) Ths company does not possess any immovable properties which are not held in the name of the company.
(B) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
(C) The company does not have any proceeding initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of1988) and rules made thereunder.
(D) 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.
(E) The company is not declared wilful defaulter by any bank or financial Institution or other lender in accordance with the guidelines
on willful defaulters issued by the Reserve Bank of India.
(F) The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.
(G) Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006
(A) Financial Risk Management Objectives and Policies
The Company's principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these
financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables
and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of
these risks and ensures that Company's financial risks are identified, measured and governed in accordance with the Company's policies
and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk that affects the Company comprises of one element: Interest rate risk. Financial instruments affected by market risk include
loans, borrowings and deposits.
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's exposure to the risk of changes in market interest rates relates primarily to short term debt obligations with
fixed interest rates.
(ii) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract leading to a financial
loss. The Company is exposed to credit risk from its operating activities and from its financing activities including deposits with banks and
other financial instruments.
Trade Receivables
Customer credit risk is managed by the Company's policy, procedures and control relating to customer credit risk management. Credit
quality of a customer is assessed based on an extensive credit rating and individual credit limits are defined in accordance with this
assessment Outstanding customer receivables are regularly monitored. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial asset disclosed in respective note. The Company does not hold collateral as security.
Cash deposits
Credit risk from balances with banks is managed by the Company in accordance with its policies. These policies are set to minimize
concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
(iii) Liquidity Risk
The Company manages its liquidity risk by using liquidity planning and balancing funds requirement vis-a-vis funds available. Various lines
of credit available are used to optimize funding cost and ensuring that adequate funds are available for business operations.
(B) Capital Risk Management
The Company's objectives when managing capital are to:
- safeguard their ability to continue as a going concern so that they can continue to provide return for shareholders and benefits for
other stakeholders.
- maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital on the basis of the following debt equity ratio
For TALATI & TALATI LLP Radheshyam Kabra
Chartered Accountants Director
Firm Regn.No.110758W/W100377 (DIN: 00005997)
Anand Sharma Leena Vijayan Rihana Advani
Partner Director Company Secretary
Membership No.129033 (DIN-08551144) Membership No.A52819
Place: Ahmedabad Place: Ahmedabad
Date: 22/05/2024 Date:22/05/2024
|