(p) Provisions and contingent liabilities
Provisions are recognized when there is 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 there is a reliable estimate 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 the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognized in statement of Profit and Loss 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 or a reliable estimate of the amount cannot be made.
(q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank
overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and short-term
deposits net of bank overdraft.
(r) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
(I) Financial assets
(i) Initial recognition and measurement
At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial
asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or
loss.
(ii) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
a) at amortized cost; or
b) at fair value through other comprehensive income; or
c) at fair value through profit or loss.
The classification depends on the entity's business model for managing the financial assets and the contractual
terms of the cash flows.
(iii) Impairment of financial assets
The company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVTOCI debt instruments.The impairment methodology applied depends on whether there
has been a significant increase in credit risk.
(iv) Derecognition of financial assets
A financial asset is derecognized only when
a) the rights to receive cash flows from the financial asset is transferred or
b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.
Where the financial asset is transferred then in that case financial asset is derecognized only if substantially
all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.
(II) Financial liabilities
(i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss
and at amortized cost, as appropriate.
(ii) Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost .
Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized .
(iii) Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the Statement of Profit and Loss as finance costs.
(s) Employee Benefits
(I) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the year in which the employees render the related service are recognized in respect of
employees' services up to the end of the year and are measured at the amounts expected to be paid when the
liabilities are settled.
(II) Other long-term employee benefit obligations
(i) Defined contribution plan
Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company
has no further obligations, apart from the contributions made on a monthly basis which are charged to the
Statement of Profit and Loss.
Employee's State Insurance Scheme: Contribution towards employees' state insurance scheme is made to the
regulatory authorities, where the Company has no further obligations apart from the contributions made on a
monthly basis which are charged to the Statement of Profit and Loss.
(ii) Defined benefit plans
Gratuity: The Company provides for gratuity, a defined benefit plan (the 'Gratuity Plan") covering eligible
employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum
payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount
based on the respective employee's salary. The Company's liability is actuarially at the end of each year. Actuarial
losses/gains are recognized in the other comprehensive income in the year in which they arise.
(t) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the
Company's earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable
tax thereto for the year, if any. The weighted average number of equity shares outstanding during the year and for all the
years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity 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 or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential
equity shares.
(u) Research & Development
Expenditure on research and development is recognised as an expense when it is incurred. Expenditure which results
in increase in property, plant and equipment are capitalised and depreciated in accordance with the policies stated for
property, plant & equipment.
(v) Government grants
Grants from the government are recogmised at their fair value where there is a reasonable assurance that the grant will
be received and the company will comply with all the attached conditions.All government grants are intially recognised by
way of setting up as deferred income. Government grants relating to income are recognised in statement of profit & loss.
Government grants relating to purchase of property, plant & equipment are subsequently recognised in profit & loss on a
systematic basis over the expected life of the related depreciable assets. Grants recognised in Profit & Loss as above are
presented within other income.
(w) Inter divisional transcations
Inter divisional transcations are eliminated as contra items. Any unrealised profits on unsold stocks on account of inter
divisional transcations is eliminated while valuing the inventory.
(x) Significant accounting judgments, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future years.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
(i) Taxes
Significant assumptions and judgements are involved in determining the provision for tax based on tax enactments,
relevant judicial pronuncements including an estimation of the likely outcome of any open tax assessment/ litigations.
Deferred income tax assets are recognised to the extent that it is probable that future taxable income will be available
, based on estimates thereof.
(ii) Defined benefit plans (gratuity benefits and leave encashment)
The cost of the defined benefit plans such as gratuity and leave encashment are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each year end.
Summary of significant accounting policies
The accompanying notes are an integral part of the Financial Statements.
As per our report of even date For and on behalf of Board of Directors of Mahalaxmi Rubtech Ltd.
Sd/- Sd/- Sd/-
For JAIN CHOWDHARY & CO. Jeetmal B. Parekh Rahul J. Parekh Anand J. Parekh
Chartered Accountants. Chairman Managing Director Jt. Managing Director
Firm Registration No. : 113267W (DIN: 00512415) (DIN: 00500328) (DIN: 00500384)
Sd/- Sd/- Sd/- Sd/-
CA Hitesh Salecha Balveermal K. Singhvi Sangita S. Shingi Nehal M. Shah
Partner Director Director Director
Membership No. : 147413 (DIN: 05321014) (DIN: 06999605) (DIN00020062)
Sd/- Sd/-
Rajendra R. Mehta Kalpana Kumari
Chief Financial Officer Company Secretary
Ahmedabad:28th May,2025 (ICSI M.No.A51657)
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