Contingent Liabilities: -
As per the Accounting Standard 29
(Provisions, Contingent liabilities and
Contingent Assets) notified under the
Companies (Accounting Standards) Rules,
2021 which are applicable on the company
in terms of Rule 2 of the Companies
(Indian Accounting Standards) Rules 2021
notified under Companies Act, 2013 the
company recognize provisions only when
it has a present obligation 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 when a reasonable estimate of the
amount of the obligation can be made.
Contingent Liabilities have been disclosed
by way of notes in Notes on Account here
below. Contingent Assets are not
recognized in the financial statements.
c) Use of Estimates:-
The preparation of the financial
statements in conformity with the GAAP
requires management to make estimates
and assumptions that affect the reported
balances of assets and liabilities as at the
date of the financial statements and
reported amount of income and expenses
for the period. Examples of such estimates
include provisions for doubtful debts,
future obligations under employee
retirement benefit plans, Income tax and
the useful lives of fixed assets.
Management periodically assesses using
external and internal sources whether
there is an indication that an asset may be
impaired. Impairment occurs when the
carrying value exceeds the present value
of future cash flows expected to arise from
the continuing use of the asset and its
eventual disposal. The impairment loss to
be expensed is determined as the excess
of the carrying amount over the higher of
the assets net sale price or present as
determined above. Contingencies are
recorded when it is probable that the
liability will be incurred, and the amount
can be reasonably estimated. Actual
results could differ from those estimates
d) Revenue Recognition
a. Revenue from sale of goods is
recognised when the significant risk and
rewards of ownership of goods are
transferred to the buyer and are recorded
exclusive of duties and taxes and adjusted
for discounts (net) and returns.
b. Revenue is recognized to the extent that
it is probable that the economic benefits
will flow to the firm and the revenue can
be reliably measured.
c. Revenue from services is recognised
pro-rata over the period of the contract as
and when services are rendered and the
collectability is reasonably assured. The
revenue is recognised net of Goods and
service tax.
d. Interest- Revenue is recognized on a
time proportion basis taking into account
the amount outstanding and the
rate applicable.
e) Property, Plant & Equipment &
Depreciation
i) Fixed assets are stated at cost (or
revalued amounts, as the case may be);
less accumulated depreciation and
impairment losses. Cost comprises the
purchase price and any attributable cost of
bringing the asset to its working
condition for its intended use. Financing
costs relating to acquisition of fixed assets
are also included to the extent
they relate to the period till such assets are
ready to be put to use in accordance with
Account Standard 16.
At the end of each year,the company
determines whether a provision should be
made for impairment of loss on its fixed
assets by considering the indications that
an impairment loss may have occurred in
accordance with Accounting Standard (AS
28 "Impairment of Asset") notified under
the Companies (Accounting Standards)
Rules, 2006 which are applicable on the
company in terms of Rule 2 of the
Companies (Indian Accounting Standards)
Rules 2015 notified under Companies Act,
2013, where the recoverable amount of
any fixed asset is lower than it's carrying
amount.
There exists no indication for the
management to conclude that any of its
cash generating units are impaired and
accordingly no provision for impairment
has been made in the financial
statements
ii) The depreciation has been charged on
Written down value method as per the
rates derived from useful lives prescribed
in schedule II of the Companies Act. 2013.
The Depreciation on the additions during
the year has been charged on pro rata
basis.
As mandated in Para 7 of the Schedule II
of the Companies, Act, 2013 a) the
carrying amount of the assets as on 1st
April 2014 is being depreciated over the
remaining useful life of the assets as per
Schedule-II b) where the
remaining useful life of the assets is nil,
after retaining the residual value the
carrying amount has been recognised
in the opening balance of retained
earnings.
iii) No amount has been written off in
respect of premium of Lease Hold Land
iv) Leases
Finance leases, which effectively transfer
to the Company substantially all the risks
and benefits incidental to ownership of
the leased item, are capitalized at the
lower of the fair value and present value
of the minimum lease payments at the
inception of the lease term and disclosed
as leased assets. Lease payments are
apportioned between the finance
charges and reduction of the lease
liability based on the implicit rate of
return. Finance charges are charged
directly against income. Lease
management fees, legal charges and
other initial direct costs are capitalized
Leases where the lessor effectively
retains substantially all the risks and
benefits of ownership of the leased term,
are classified as operating leases. Operating
lease payments are recognized as an expense
in the Profit and Loss
f) Employee Retirement Benefits
Ii) Incremental liability in respect of
Gratuity payable to employees has been
provided for based on the valuation
undertaken by Life Insurance
Corporation.
ii) Provident & other funds liability is
determined on the basis of contributions
as required under statutes.
g) Borrowing Cost
Borrowing costs that are attributable to
the acquisition or construction of
qualifying assets are capitalized as part
of the cost of such assets. A qualifying
asset is one that necessarily takes
substantial period of time to get ready for
intended use. All other borrowing costs
are charged to revenue.
h) Income Tax
Income Taxexpenses is accrued in
accordance with AS22 -"Accounting for
taxes on income" which includes current
taxes and deferred tax. Deferred Income
Tax reflects the impact of current year
timing differences between taxable
income and accounting income for the
year and reversal of timing difference of
earlier years. Deferred tax assets
are recognized only to the extent that
there is reasonable certainty that
sufficient future taxable income will be
taxable. Deferred tax and liabilities are
measured using the tax rates and tax laws
that have been enacted or
subsequently enacted by the balance
sheet date.
i) All highly liquid financial instruments, which are readily convertible into
known amounts of cash that are subject to an insignificant risk of change in
value and having original maturities of three months or less from the date
of purchase, to be cash equivalents.
1. ) The Company has only one class of Equity Shares having a par value of Rs. 10 per share.
Each holder of Equity Shares is entitled to one vote per share. In the event of liquidation, the
Equity shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.
2. ) The Company has made the Preferential Allotment of 3,18,472 (Three Lakh Eighteen
Thousand Four hundred and Seventy Two) equity shares of face value of Rs.10/- (Rupees Ten
only) each, at a price of Rs. 1570/- per equity share (including a premium of Rs. 1560/- per
equity share).
As the provisions relating to the compliance of Corporate Social Responsibility
have become applicable to the company, the company has made an expenditure
of Rs. 21 Lacs towards corporate social responsibility which is in excess of the
amount required as per Section 135 of the Companies Act 2013
k The Company has not traded or invested in Crypto Currency or virtual currency.
The balance in Trade Payables, Trade Receivables and Loans and Advances etc.
are subject to their confirmation.
The Micro, Small and Medium Enterprises Development Act, 2006, the
company is required to identify the Micro, Small and Medium suppliers and
pay them interest on over dues beyond the specified period, irrespective of
the terms agreed with the suppliers. The classification of vendors under the
36 MSMED Act has been made based on information provided by the vendors
and to the best of the Company's knowledge. No interest has been claimed
by the suppliers covered under the MSMED Act on few instances of delayed
payments during the year. Consequently, no provision for such interest has
been made in the books of accounts.
The Related parties are defined by the Accounting standard 18 "Related
Party Disclosure" notified under the Companies (Accounting Standards)
Rules, 2006 which are applicable on the company in terms of Rule 2 of the
37 Companies (Indian Accounting Standards) Rules 2015 notified under
Companies Act, 2013 in respect of which the disclosure has been made,
have been identified on the basis of disclosures made by the key
management person and taken on record by the Board. The related party
disclosure are as under: -
40 There is no immovable property in the company, the title deed of which is not held in
the name of the Company.
41 The company has not revalued its Property, Plant and Equipment during the year.
40 Loans or Advances in the nature of loans are granted to promoters, Directors, KMPs
and the related parties that are a) repayable on demand or b) without specifying any
terms or period of repayment:
44 The company does not have any Intangible assets under development as on the reporting date.
45 No proceedings have been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
46 The company has been sanctioned working capital limits from banks or financial institutions on the basis of
security of current assets; The monthly\quarterly returns or statements filed by the company with such banks or
financial institutions are in agreement with the books of account of the Company.
47 The company has not been declared as a wilful Defaulter by any Financial Institution
or bank as at the date of Balance Sheet.
48 The Company do not have any transactions or relationship with companies struck off.
49 There are no charges or satisfaction yet to be registered with Registrar of Companies
beyond the statutory period.
50 The borrowing from banks and Financial Institutions has been used for the specific
purpose for which it has been taken.
1. Earning for Debt Service = Net Profit before taxes Non-cash operating expenses like
depreciation and other amortizations Interest other adjustments like loss on sale of
Fixed assets etc.
2. Debt service = Interest & Lease Payments Principal Repayments
3. Capital Employed = Total Equity Long-term borrowings Short-term borrowings Deferred tax
liabilities
4. Shareholder's Equity = Share Capital Reserves & Surplus
Money received against share warrants
5. Total Debt = Long-term borrowings Short-term borrowings (includes lease liabilities)
Reasons for Variances:
*Debt Equity Ratio decreased primarily on account of increase in shareholders' equity.
*Debt Service Coverage Ratio increased primarily on account of decrease in debt service
cost and increase in operating profits.
*Return on equity ratio decreased on account of increase in equity without a proportional
increase in operating profits.
*Inventory turnover ratio decreased primarily on account of higher avereage inventory.
*Return on Capital employed ratio decreased primarily on account of increased
capital employed.
52) . Utilisation of Borrowed funds and share premium
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 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.
Date: 14-May-2025 Sd/- Sd/-
Gaurav Lath Nitin Jain
SETH & ASSOCIATES Joint Managing Director Joint Managing
CHARTERED ACCOUNTANTS
FRN No 001167C & Chief Financial Officer Director
DIN:00581405 DIN: 03385362
Sd/- Sd/- Sd/-
Dhruv Seth (M.No 404028) Mahima Jain Puja Gupta
Director Company Secretary
Partner DIN: 09688771 PAN: ATVPG4665K
UDIN: 25404028BMIJAJ3361
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