8. Provisions, Contingent Liabilities and Contingent
Assets
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. Provisions are measured at the best
estimate of the expenditure required to settle the
present obligation at the Balance Sheet date.
If the effect of time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects the current market assessments
of the time value of money and the risks specific
to the obligation. When discounting is used, the
increase in the provision due to the passage of
time is recognised as a finance cost.
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.
9. Revenue recognition
Sale of goods
Revenue from sale of goods is recognised when
control of the goods being sold is transferred
to our customer and when there are no longer
any unfulfilled obligations. The Performance
Obligations in our contracts are fulfilled at the
time of dispatch, delivery or upon formal customer
acceptance depending on customer terms.
Revenue is measured on the basis of contracted
price, after deduction of any trade discounts,
volume rebates and any taxes or duties collected
on behalf of the Government such as goods and
services tax, etc. Accumulated experience is used
to estimate the provision for such discounts and
rebates. Revenue is only recognised to the extent
that it is highly probable a significant reversal will
not occur.
Our customers have the contractual right to return
goods only when authorised by the Company. An
estimate is made of goods that will be returned
and a liability is recognised for this amount using a
best estimate based on accumulated experience.
Contract balances
Trade receivables
A receivable represents the Company's right to an
amount of consideration that is unconditional.
Contract liabilities
A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognised
when the payment is made. Contract liabilities
are recognised as revenue when the Company
performs under the contract.
Sale of services
Income from services rendered is recognised
based on agreements/arrangements with the
customers as the service is performed and there
are no unfulfilled obligations.
Dividend income
Dividend income on investments is recognised
when the right to receive dividend is established.
Interest income
Interest income is recognised using the effective
interest rate (EIR) method.
10. Employee benefits
i. Short term employee benefits
Short term employee benefits consisting of
salaries, wages, short-term compensated
absences, performance incentives, etc., and
the expected cost of bonus, ex-gratia are
benefits payable and recognized in 12 months.
Short-term employee benefits expected to be
paid in exchange for the services rendered
by employees are recognized undiscounted
during the year as the related service are
rendered by the employee.
ii. Defined contribution plans
The Company's contribution towards
provident fund, superannuation fund and
employee state insurance scheme, employee
pension scheme and labour welfare fund for
certain eligible employees are considered to
be defined contribution plan for which the
Company made contribution on monthly
basis.
Company's contribution for the year paid/
payable to defined contribution retirement
benefit schemes are charged to Statement of
Profit and Loss.
iii. Defined benefit plans
Company's liabilities towards defined benefit
plans viz. gratuity which is expected to occur
after twelve months, is determined using
the Projected Unit Credit Method. Actuarial
valuations under the Projected Unit Credit
Method are carried out at the balance sheet
date. Actuarial gains and losses are recognized
in the Statement of other comprehensive
income in the period of occurrence of such
gains and losses for gratuity. The retirement
benefit obligation recognized in the balance
sheet represents the present value of the
defined benefit obligation as adjusted for
unrecognized past service cost, and as
reduced by the fair value of scheme assets, if
any.
Other long-term employee benefits such
as compensated absences payable to the
employees is provided for in the books of
accounts on accrual basis.
iv. Termination benefits
Termination benefits are recognised as an
expense in the period in which they are
incurred, if any.
11. Impairment of non-financial assets
The carrying amount of the assets are reviewed at
each Balance Sheet date if there is any indication
of impairment based on internal / external factors.
An asset is impaired when the carrying amount
of the asset exceeds its recoverable amount.
The recoverable amount is higher of the asset's
fair value less costs of disposal and value in use,
which means the present value of future cash
flows expected to arise from the continuing use
of the asset and its eventual disposal. For the
purposes of assessing impairment, assets are
grouped at their lowest levels for which there
are separately identifiable cash inflows which are
largely independent of the cash inflows from other
assets or groups of assets (cash generating units).
Impairment loss is charged to the profit and loss
account in the year in which the asset is identified
as impaired.
An impairment loss for an asset is reversed if, and
only if, the reversal can be related objectively to
an event occurring after the impairment loss was
recognized or relates to a change in the estimate
of the recoverable amount in the previous periods.
The carrying amount of an asset is increased to
its revised recoverable amount, provided that this
amount does not exceed the carrying amount
that would have been determined (net of any
accumulated amortization or depreciation) had
no impairment loss been recognized for the asset
in prior years.
12. Income Tax
Income tax expense comprises current and
deferred tax. It is recognized in profit and loss
except to the extent that it relates to items
recognized directly in equity or in OCI.
i. 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. It is measured using tax rates
enacted as at the reporting date.
Current tax assets and liabilities are offset
only if:
a) 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
b) there is intention either to settle on a net
basis, or to realize the asset and settle the
liability simultaneously.
ii. 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 amounts used
for taxation purposes. However, deferred tax
liabilities are not recognized if they arise from
the initial recognition of goodwill. Deferred
income tax is also not accounted for if it
arises from initial recognition of an asset or
liability in a transaction other than a business
combination that at the time of the transaction
affects neither accounting profit nor taxable
profit (tax loss).
Deferred tax assets are generally recognized
for deductible temporary differences (if any)
to the extent that it is probable that future
taxable profits will be available against
which they can be used. The existence of
unused tax losses is strong evidence that
future taxable profit may not be available.
Therefore, in case of history of recent losses,
the Company recognises a deferred tax asset
only to the extent that it has sufficient taxable
temporary difference or there is convincing
other evidence that sufficient taxable profits
will be available against which such deferred
tax asset can be realized. 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. Unrecognized deferred tax assets
are reassessed at each reporting date and
recognized to the extent that it has become
probable that future taxable profits will be
available against which they can be used.
Deferred tax is measured at the tax rates
that are expected to be applied to temporary
differences when they reverse, using tax
rates enacted or substantively enacted at
the reporting date and are expected to apply
when the related deferred income tax asset is
realized or the deferred income tax liability is
settled.
Deferred tax assets and liabilities are offset
only if they relate to income taxes levied by
the same taxation authority on the same
taxable entity.
13. Leases
The Company has adopted Ind AS 116- Leases
effective 1st April, 2019. The Company has
evaluated the impact of Ind AS 116 on its existing
leases as on the transition date (1 April 2019) and
as on the reporting date (31 March 2020) and
have concluded that there are no leases which fall
within the purview of Ind AS 116.
The Company assesses whether a contract is or
contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. To assess whether a contract
conveys the right to control the use of an identified
asset, the Company assesses whether:
a. the contract involves the use of an identified
asset
b. the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and
c. the Company has the right to direct the use of
the asset.
The Company has leases with a term of twelve
months or less (short-term leases) and leases
of low value assets. For these short-term
and leases of low value assets, the Company
recognizes the lease payments as an operating
expense on a straight-line basis over the term
of the lease.
14. Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are
translated into the respective functional
currencies of company at the exchange rates
at the dates of the transactions or an average
rate if the average rate approximates the actual
rate at the date of the transaction. Foreign
exchange gains and losses from settlement
of these transactions are recognised in the
Statement of Profit and Loss.
(ii) Transactions and balances
Monetary assets and liabilities denominated
in foreign currencies are translated into the
functional currency at the exchange rate at
the reporting date, the gain or loss arising
from such translations are recognised in the
statement of profit and loss.
15. Earnings per share (EPS)
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 and for all periods presented is
adjusted for events, such as bonus shares, other
than the conversion of potential equity shares
that have changed the number of equities 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.
16. Borrowing cost
Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with
the arrangement of borrowings and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the interest cost.
Borrowing costs, if any, 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
capitalized, if any. All other borrowing costs are
expensed in the period in which they occur.
17. Operating Segments
The Company has presented segment information
in the financial statements which are presented in
the same financial report. Accordingly, in terms of
Paragraph 3 of Ind AS 108 'Operating Segments',
no disclosures related to segments are presented
in this standalone financial statement.
18. Events after reporting date
Where events occurring after the balance sheet
date provide evidence of conditions that existed
at the end of the reporting period, the impact
of such events is adjusted within the standalone
financial statements. Otherwise, events after the
balance sheet date of material size or nature are
only disclosed.
Note 37
Leases
As Lessee:
a) Operating Lease:
The Company has taken office premises on lease which are cancellable by either parties and there is no
lock in period. These leave and license agreements for the office premises are generally for a period not
exceeding one year and are in most cases renewable by mutual consent, on mutually agreeable terms. There
are no restrictions imposed by lease arrangements or any contingent rents payable . There are no sub leases.
Therefore for the purposes of Ind AS 116 - Leases, there are no leases which required specific disclosures.
b) Finance lease:
The company has entered into long-term leasing arrangements for land with government authorities which
are in the nature of long term leases. These arrangements do not involve any material recurring payments,
hence other disclosures are not given. These long term land leases are accounted as per Ind AS 16 - Property,
Plant & Equipment.
Note 38
Related Party Disclosure
As per Indian Accounting Standard 24, the disclosures of transactions with the related parties are given below:-
a) Subsidiary Company
KML Tradelinks Pvt. Ltd.
b) Holding Company
Apollo Pipes Limited (APL)
Note 39
Employee benefits
(A) Defined benefit plans
a) Gratuity
Gratuity liability is provided in accordance with the provisions of the Payment of Gratuity Act, 1972
based on actuarial valuation. The plan provides a lump sum gratuity payment to eligible employee at
retirement or termination of their employment. The amounts are based on the respective employee's
last drawn salary and the years of employment with the Company.
The most recent actuarial valuation of the defined benefit obligation was carried out at the balance
sheet date. 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.
b) Leave Obligations
The leave obligations cover the Company's liability for casual, sick & earned leave. The amount of the
provision is presented as current, since the Company does not have an unconditional right to defer
settlement for any of these obligations. However, based on past experience, the Company does
not expect all employees to take the full amount of accrued leave or require payment within the
next 12 months.
c) The plan above is typically exposed to actuarial risk such as interest risk, mortality risk and salary risk
a) Interest risk: The decrease in the bond interest rate will increase the liability.
b) Mortality risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the
life expectancy of the plan participants will increase the plan's liability.
c) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the
plan's liability.
B) Defined contribution plan
The Company makes contributions towards provident fund and other funds which are in the nature of
defined contribution post employment benefit plans. Under the plan, the Company is required to contribute
a specified percentage of payroll cost to fund the benefits.
Amount recognised as an expense in the Statement of Profit and Loss - included in Note 3 - “Contribution
to provident and other funds” ' 98.85 lakhs (Previous year - ' 31.63 lakhs).
The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity
risk. The Company's risk management assessment and policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and
compliance with the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company's activities.
Market risk :
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and other prices
such as equity price. These will affect the Company's income or the value of its holdings of financial instruments.
Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables
and payables and long term debt. Financial instruments affected by market risk include loans, borrowings and
deposits. The Market risk which the Company is exposed can be classified as Currency risk and Interest rate risk.
i. Foreign Currency risk :
The Company is exposed to currency risk on account of its operations in other countries. The functional
currency of the Company is Indian Rupee. The Company evaluates exchange rate exposure arising from
foreign currency transactions and follows established risk management policies.
ii. Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest
rate risk is the risk of changes in fair values of fixed interest bearing instruments because of fluctuations in
the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
instruments will fluctuate because of fluctuations in the interest rates.
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, loans and investments. Credit risk is managed through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of counterparty to which the Company grants credit
terms in the normal course of business. (Refer trade receivable note 11).
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with
counterparties that have a good credit rating. The Company does not expect any losses from non-performance
by these counter-parties, and does not have any significant concentration of exposures to specific industry
sectors or specific country risks.
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 that it will have sufficient liquidity to meet its liabilities. The Company
monitors the net liquidity position through forecasts on the basis of expected cash flows.
The Company has obtained fund and non-fund based working capital lines from various banks.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of
netting agreements.
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 and long-term strategic plans.
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 'adjusted net debt' to 'adjusted equity'. For this
purpose adjusted net debt is defined as total liabilities comprising interest bearing loans and borrowings and
obligations under finance lease, less cash and cash equivalents, Bank balance and current investments. Adjusted
equity comprises Equity attributable to the shareholders of the Company (other than amounts accumulated in
the hedging reserve, if any).
Note 45
Additional Regulatory Information
a) There are no proceedings initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
b) There is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutory
period.
c) The Company do not have any transaction not recorded in the books of accounts that has been surrendered
or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
d) The company has submitted quarterly returns or statements with banks or financial institutions pursuant
to terms of sanction letters for working capital limits secured by current assets as all working capital
loans.
e) The Company did not enter transactions in Crypto currency or Virtual currency during the year ended
March 31, 2025 (March 31, 2024: NIL).
f) The company does not have any relationship with companies struck off (as defined by Companies Act,
2013) and did not enter into transactions with any such company for the years ended March 31, 2025 and
March 31, 2024.
g) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
f) Trade Receivable & Trade Payable are subject to balance confirmation. However, the Management is confident
that such receivables/ Payables are stated at their realisable/ payable value and adequate provision are
made in the accounts wherever required.
As per our attached report of even date For and on behalf of the Board of Directors of
For Sen & Ray Kisan Mouldings Limited
Chartered Accountants
Firm Registration No. 303047E
Rakesh Kumar Kogta Sanjeev A. Aggarwal
Partner Chairman & Managing Director
Membership No. 122300 DIN: 00064076
Suresh Purohit
Chief Financial Officer
FCA:045574
Vijay Joshi
Date:- 06 May 2025 C°mpany Secretary
Place:- Mumbai M. Na A7298
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