M. Provisions, Contingent Liabilities & Contingent
Assets
The Company recognizes provisions when a
present obligation (legal or constructive) as a
result of a past event exists and it is probable
that an outflow of resources embodying
economic benefits will be required to settle such
obligation and the amount of such obligation
can be reliably estimated.
If the effect of 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 as a finance cost.
A disclosure for a contingent liability is made
when there is a possible obligation or a present
obligation that may, but probably will not require
an outflow of resources embodying economic
benefits or the amount of such obligation
cannot be measured reliably. When there is
a possible obligation or a present obligation
in respect of which likelihood of outflow of
resources embodying economic benefits is
remote, no provision or disclosure is made.
Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits.
Contingent Assets are not recognized though
are disclosed, where an inflow of economic
benefits is probable.
N. Cash and Cash Equivalents
Cash and Cash equivalents for the purpose
of Cash Flow Statement comprise cash and
cheques in hand, bank balances and demand
deposits with banks where the original maturity
is three months or less.
O. Employee Benefits
Short Term Employee Benefits: All employee
benefits payable wholly within twelve months
of rendering the service are classified as
short-term employee benefits and they are
recognized as an expense at the undiscounted
amount in the Statement of Profit & Loss of the
year in which related service is rendered.
Compensated absences: Compensated
absences which are not expected to occur
within twelve months after the end of the period
in which the employee renders the related
service are recognized based on actuarial
valuation at the present value of the obligation
as on the reporting date.
Post-Employment Benefits:
Provident Fund scheme: Retirement benefit
in the form of Provident Fund is a defined
contribution scheme and the company
recognizes contribution payable to the
provident fund scheme as expenditure when
an employee renders the related service. The
Company has no obligations other than the
contribution payable to the respective funds.
Gratuity scheme: Gratuity liability, being a
defined benefit obligation, is provided for on
the basis of an actuarial valuation on Projected
Unit Credit method made at the end of each
financial year.
Recognition and measurement of Defined
Benefit plans: The cost of providing defined
benefits is determined using the Projected
Unit Credit method with actuarial valuations
being carried out at each reporting date. The
defined benefit obligations recognized in the
Balance Sheet represent the present value of
the defined benefit obligations as reduced by
the fair value of plan assets, if applicable. Any
defined benefit asset (negative defined benefit
obligations resulting from this calculation) is
recognized representing the present value
of available refunds and reductions in future
contributions to the plan.
All expenses represented by current service
cost, past service cost, if any, and net interest
on the defined benefit liability / (asset) are
recognized in the Statement of Profit and
Loss. Remeasurements of the net defined
benefit obligation, which comprise actuarial
gains and losses, the return on plan assets
(excluding interest) and the effect of the asset
ceiling, are recognized in other comprehensive
income. Remeasurement recognized in
other comprehensive income is reflected
immediately in retained earnings and will not be
reclassified to the statement of profit and loss.
P. Leases
The Company as lessee
The Company assesses whether a contract is or
contains a lease, at inception of a contract. The
assessment involves the exercise of judgement
about whether (i) the contract involves the use
of an identified asset, (ii) the Company has
substantially all of the economic benefits from
the use of the asset through the period of the
lease, and (iii) the Company has the right to
direct the use of the asset.
The Company recognizes a right-of-use asset
(“ROU”) and a corresponding lease liability at
the lease commencement date. The ROU asset
is initially recognized at cost, which comprises
the initial amount of the lease liability adjusted
for any lease payments made at or before
the commencement date, plus any initial
direct costs incurred and an estimate of costs
to dismantle and remove the underlying
asset or to restore the underlying asset or
the site on which it is located, less any lease
incentives. They are subsequently measured
at cost less accumulated depreciation and
impairment losses.
The ROU asset is depreciated using the straight
line method from the commencement date to
the earlier of, the end of the estimated useful life
of the ROU asset or the end of the lease term. In
addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and
adjusted for certain re-measurements of the
lease liability.
The lease liability is initially measured at the
present value of the lease payments that
are not paid at the commencement date,
discounted using the interest rate implicit
in the lease or, if that rate cannot be readily
determined, the Company uses an incremental
borrowing rate specific to the Company, term
and currency of the contract. Generally, the
Company uses its incremental borrowing rate
as the discount rate.
Lease payments included in the measurement
of the lease liability include fixed payments,
variable lease payments that depend on an
index or a rate known at the commencement
date; and extension option payments or
purchase options payment which the Company
is reasonably certain to exercise.
Variable lease payments that do not depend
on an index or rate are not included in the
measurement the lease liability and the ROU
asset. The related payments are recognized as
an expense in the period in which the event or
condition that triggers those payments occurs
and are included in the line “other expenses” in
the statement of profit or loss.
After the commencement date, the amount
of lease liabilities is increased to reflect the
accretion of interest and reduced for the
lease payments made and remeasured (with
a corresponding adjustment to the related
ROU asset) when there is a change in future
lease payments in case of renegotiation,
changes of an index or rate or in case of
reassessment of options.
Short-term leases and leases of low-value
assets:
The Company has elected not to recognize ROU
assets and lease liabilities for short term leases
as well as low value assets and recognizes the
lease payments associated with these leases
as an expense on a straight-line basis over
the lease term.
Q. 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.
R. Earnings Per Share
Basic earnings per share is calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period. For the purpose
of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity
shareholders are divided with the weighted
average number of shares outstanding during
the year after adjustment for the effects of all
dilutive potential equity shares.
S. Segment Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM)
of the Company. The CODM is responsible
for allocating resources and assessing
performance of the operating segments
of the Company.
T. Rounding Off
All amounts disclosed in the financial
statements and notes have been rounded
off to the nearest lakhs as per requirement of
Schedule III, unless otherwise stated.
2. KEY ACCOUNTING ESTIMATES &
JUDGEMENTS:
The preparation of the Company’s financial
statements requires the management to make
judgements, 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 periods.
The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting 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:
2.1. Significant judgments when applying Ind AS 115
Revenue is recognized upon transfer of control of
promised products to customers in an amount
that reflects the consideration which the Company
expects to receive in exchange for those products.
Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, price concessions and incentives,
if any, as specified in the contract with the customer.
The Company exercises judgment in determining
whether the performance obligation is satisfied at a
point in time or over a period of time. The Company
considers indicators such as who controls the asset
as it is being created or existence of enforceable
right to payment for performance to date and
alternate use of such product, transfer of significant
risks and rewards to the customer, acceptance of
delivery by the customer, etc.
2.2. Useful lives of depreciable assets
As described in the material accounting policies,
the Company reviews the estimated useful lives
of property, plant and equipment and intangible
assets at the end of each reporting period.
2.3. Defined benefit obligation
The cost of post-employment benefits is determined
using actuarial valuations. The actuarial valuation
involves making assumptions about discount rates,
expected rate of return on assets, future salary
increases and mortality rates. Due to the long term
nature of these plans such estimates are subject to
significant uncertainty.
2.4. Impairment of financial assets
The Company assesses impairment based on
Expected Credit Losses (ecl) model on trade
receivables. The Company uses a provision matrix
to determine impairment loss allowance on the
portfolio of trade receivables. The provision matrix
is based on its historically observed default rates
over the expected life of the trade receivable and
is adjusted for forward looking estimates. At every
reporting date, the historically observed default
rates are updated and changes in the forward¬
looking estimates are analysed.
2.5. Impairment of Investment in Subsidiary
The Company uses judgment in making these
assumptions and selecting the inputs to the
impairment calculation, based on the respective
company’s past history, existing market conditions
as well as forward looking estimates at the end of
each reporting period.
2.6. Recoverability of advances/ receivables
At each balance sheet date, based on discussions
with the respective counterparties and internal
assessment of their credit worthiness, the
management assesses the recoverability of
outstanding receivables and advances. Such
assessment requires significant management
judgement based on financial position of the
counterparties, market information and other
relevant factor.
2.7.Contingent assets and liabilities, uncertain
assets and liabilities
Liabilities that are uncertain in timing or amount
are recognized when a liability arises from a past
event and an outflow of cash or other resources
is probable and can be reasonably estimated.
Contingent liabilities are possible obligations where
a future event will determine whether Company
will be required to make a payment to settle the
liability, or where the size of the payment cannot be
determined reliably. Material contingent liabilities
are disclosed unless a future payment is considered
remote. Evaluation of uncertain liabilities and
contingent liabilities and assets requires judgment
and assumptions regarding the probability of
realization and the timing and amount, or range
of amounts, that may ultimately be incurred. Such
estimates may vary from the ultimate outcome as a
result of differing interpretations of laws and facts.
15.1 Terms of Repayments
a) Term Loan facilities from banks are secured by first pari-passu charge on the entire fixed assets (both
present & future) and Second pari-passu charge on the entire current assets (both present & future) of
the Company. Personal guarantee of Puranmal Agrawal, Suresh Kumar Agrawal, Manish Agrawal and Saket
Agrawal is given alongwith corporate guarantee of a group company. Corporate Guarantee is restricted to
the extent of shares pledged of the promoter group company. The interest rate on the domestic long term
borrowings are of 2.90% above 6 months MCLR. The Term Loan facilitated from the bank is repayable in 30
Quarterly Instalments from December 2017. Last instalment due in September 2025.
b) Pursuant to the Resolution Plan approved under the Reserve Bank of India's Scheme for Sustainable
Structuring of Stressed Assets (S4A), the Company executed a Master Framework Agreement with the lenders
in 24th January 2018.
The Company had issued 451,970,554 nos. of Optionally Convertible Debentures (OCDs) amounting to H
451,97.05 lakhs during the financial year 2017-18. The OCDs had a moratorium period of 7 years and were
repayable in 36 structured quarterly instalments starting from December, 2024 and maturing on September
2033. The OCDs carried a coupon rate of 0.01% pa. payable quarterly till maturity. The OCDs were convertible
into Equity at the option of the OCD holders. OCDs may be redeemed alongwith a redemption premium. The
redemption premium is inclusive of YTM @ 2.00% p.a. compounded quarterly. As per valuation report and
relevant IND AS, PV of OCD as on the OCD issuing date i.e. March 21, 2018 was H 16,690.00 Lakhs which had
been treated as financial liability and balance of H 28,506.44 Lakhs had been treated as other equity in the
financial year 2017-18.
Further, the interest expenses (the unwinding of the discount) had been booked at market rate (11.5%) to
unwind the liability component to the extent of value of OCD at each reporting date.
In addition to the above, the Promoter / Promoters’ group had transferred 12,85,78,044 equity shares, at H 10/-
per equity share of H 12,857.80 lakhs, to the lenders, as a part payment of unsustainable debt and the same
was treated as unsecured loan.
Upon receipt of conversion notices from OCD holders and approval of shareholders for conversion of
Unsecured loans from promoters, the Company has undertaken the following debt-to-equity conversions
during the financial year 2024-25:
(a) Conversion of Outstanding OCDs (net of repayments) amounting to H. 45,157.15 lakhs along with YTM of
H 6,953.08 lakhs into 14,48,22,208 equity shares of face value H 10 each at a premium.
(b) Conversion of Outstanding Unsecured Loans (net of repayments) amounting to H 12,795.80 Lakhs into
3,65,59,437 equity shares of face value H 10 each at a premium.
30. The Company is subject to Income Tax in India on the basis of Standalone Financial Statements. As per the Income
Tax Act, 1961, in the previous year, the Company was liable to pay income tax which is the higher of regular
income tax payable and the amount payable based on the provisions applicable for Minimum Alternate Tax
(MAT). However, from the current year, the Company has opted the option u/s 115 BAA of the Income Tax Act, 1961;
introduced by the Taxation Laws (Amendment) Act, 2019, which gives irreversible option for payment of Income
Tax at reduced rate subject to certain conditions.
In view of above, MAT Credit of H 2,648.71 Lakhs accounted for in earlier years has been reversed during the current
year. Further, Deferred Tax Assets/Liabilities also have been measured/re-measured at the rates specified under
new regime. Due to the change in the applicable income tax rate under the new regime, an impact of H 0.86 Lakhs
has been recognised and included in the below reconciliation.
This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments. The details of significant accounting policies,
including the criteria for recognition, the basis of measurement and the basis on which income and expenses are
recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note F.1
& F.2 to the financial statements.
34. Financial instruments (Contd..)
ii) Fair values hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Level 1 to Level 3, as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by
reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists
of investment in quoted equity shares.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and
liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). This level of hierarchy includes
Company’s over-the-counter (otc) derivative contracts.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial
assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs).
Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data.
iii) Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) Quoted investments (Equity Shares)- The Quoted Equity Instruments are listed in Calcutta Stock Exchange
where the trading is suspended. Value is as determined by Independent Valuer. Fair value estimates of equity
investments are included in level-3 and are based on information relating to value of investee company’s
net assets methods.
(b) The fair value of investment in unquoted shares are determined by an Independent Valuer. The invetsment
in equity shares of H 4,099.86 Lakhs (31.03.2024 - H 4,020.66 lakhs) are not listed. Their fair value estimates are
included in level-3 and are based on information relating to value of investee company’s net assets or DCF
methods as applicable.
(c) The carrying amount of financial assets (other than investments) and financial liabilities (other than derivative
liabilities) measured at amortised cost in the financial statements are a reasonable approximation of their
fair values since the Company does not anticipate that the carrying amounts would be significantly different
from the values that would eventually be received or settled.
(d) The Company’s forward exchange contracts have been valued based on mark to market reports provided
by the counterparty bank. Since the valuation uses observable market inputs, but not quoted prices in active
markets, the fair value measure has been classified under Level 2.
iv) Valuation inputs and relationships to fair value
The following table provides the fair value measurement hierarchy about the significant unobservable inputs
used in level 3 fair value measurements. Refer (iii)(b) above for the valuation techniques adopted.
35. Financial Risk Management, Objectives and Policies
a) Capital Management
i) 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 returns for
shareholders and benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new share, convert outstanding OCD's into equities or
sell assets to reduce debt. Consistent with others in the industry, the Company monitors capital on the basis
of net debt to equity ratio and maturity profile of overall debt portfolio of the Company.
Net debt implies total borrowings of the Company comprises all components attributable to the
owners of the Company
No changes were made in the objective policies & process for expenditure as on 31st March 2025 &
31st March 2024.
ii) Dividends
The company has not declared/paid any dividend for FY 2023-24 and no dividend has been proposed
for FY 2024-25.
b) Financial Risk Management
The Company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects
on the financial performance of the Company, the Company has risk management policies as described below :-
i) Credit risk
Credit risk refers to the risk of financial loss arising from default / failure by the counterparty to meet financial
obligations as per the terms of contract. The Company is exposed to credit risk for receivables, cash and cash
equivalents. None of the financial instruments of the Company result in material concentration of credit risks.
Customer credit risk is managed by the Company’s established policy, procedures and control relating to
customer credit risk management. Outstanding customer receivables are regularly monitored and reconciled.
Based on historical trend, industry practice and the business environment in which the company operates,
an impairment analysis is performed at each reporting date for trade receivables. The maximum exposure
to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9.
Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as
the said deposits have been made with the banks/financial institutions who have been assigned high credit
rating by international and domestic rating agencies.
ii) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or
at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of funding through an adequate amount of credit facilities to meet obligations
when due. The Company’s treasury team is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by senior management. Management
monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.
Maturities of financial liabilities
The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date based on contractual undiscounted payments
C) Market Risk
i) Foreign currency risk
The company is primarliy not exposed to foreign exchange risk arising from foreign currency transactions.
However, the Company has entered into derivative contracts to hedge its exposure in foreign currency due to
swap of INR Loan into USD. Foreign exchange risk arises from recognised assets and liabilities denominated
in a currency that is not the company’s functional currency.
36. Contingent Liabilities and Commitments (Contd..)
The Company, based on a legal opinion from a firm of repute, has re-estimated the amount of RoR amounting
to H 10,120 lakhs as compared to H 27,801 lakhs, which states that as per CDR Master Circular dated June 25, 2015
issued by the Corporate Debt Restructuring Cell (CDR) in 2012 & 2015, if any part of principal or interest dues are
converted into equity, the same will not be reckoned for computation of recompense. Since all the outstanding
OCDs has been converted during the year, accordingly ROR as at 31st March, 2025 has been calculated only on
outstanding term loans and short term borrowings.
b) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by
the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft
rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders
which are under active consideration by the Ministry. The Company will assess the impact of the Code when it
comes into effect and will record any related impact in the period when the Code becomes effective.
c) Capital & Other Commitment
The capital & other commitment for the company amounts to H Nil (previous year - H Nil)
37. The Company does not have any charges or satisfaction of which is yet to be registered with ROC beyond the
statutory period as on 31st March 2025.
38. The company has not filed any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act,
2013 with any Competent Authority.
39. Short Term Leases
The Company’s leasing arrangements are in respect of short term leases for office premises at Kolkata and
Raigarh, depot at Raipur & guest houses at Raigarh, Gairkata, Keonjhar, Vishakapatnam and Kolkata. These leasing
arrangements which are cancellable, are entered for a period of 11 months and the Company has elected not to
recognize ROU assets and lease liabilities for short term leases and recognizes the lease payments associated with
these leases as an expense. The Company has paid lease rentals of H 267.57 Lakhs ( Previous year - H 157.00 Lakhs).
The company also hires equipments on short term contract basis, and has paid H 1,754.16 Lakhs (Previous year -
H 1,942.30 Lakhs) against it during the year which is included in other manufacturing expenses.
Defined Benefit Plan:
a) Gratuity Plan
The Company has a defined Gratuity Benefit plan. Every employee who has completed five years or more of
service is entitled to gratuity as per the provisions of the Payment of Gratuity Act, 1972. The Company has got
an approved gratuity fund with Life Insurance Corporation of India (lic) to cover the gratuity liabilities.The
present value of defined obligation and related current cost are measured using the Projected Unit Credit
Method with actuarial valuation being carried out at Balance Sheet date.
40. Disclosure pursuant to Indian Accounting Standard - 19 ‘Employee Benefits’ (Contd..)
b) Risk Exposure
Defined benefit plans expose the Company to the following types of actuarial risks:
Interest rate risk: The Plan exposes the company to the risk of fall in interest rates . A fall in interest rates will
result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in
the value of the liability (as shown in financial statements).
Liquidity Risk: This is the risk that the company is not able to meet the short term gratuity payouts .This may
arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid
assets not being sold in time.
Salary Escalation Risk: The Present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future . Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liability.
Demographic Risk: The company has used certain mortality and attrition assumption in valuation of the
liability . The Company is exposed to the risk of actual experience turning out to be worse compared to
the assumption.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirement of the Payment of Gratuity Act,
1972 (as amended from time to time). There is risk of change in regulations requiring higher gratuity payouts
(e.g. Increase in the maximum limit on gratuity of H 20,00,000).
Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of
assets, exposing the Company to market risk for volatilities/fall in interest rate.
Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular Investment.
c) Reconciliation Of the net defined benefit (Assets/Liabilities)
The following table shows a reconciliation from the opening balances to the closing balances for the net
defined benefit (asset)/ liability and its components:
40. Disclosure pursuant to Indian Accounting Standard - 19 ‘Employee Benefits’ (Contd..)
The Gratuity Scheme is invested in policies offered by Life Insurance Corporation (lic) of India . The information
on the allocation of the fund into major asset classes and expected return on each major class are not readily
available. The expected rate of return on plan assets is based on market expectations, at the beginning of the
period, for returns over the entire life of the related obligation.
i) Asset Liability Matching Strategy
The company has purchased insurance policy which is basically a year on year cash accumulation plan in
which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance
company as a part of policy rules makes payment of all gratuity outgoes happening during the year (subject
to sufficiency of fund under the policy). The Policy, thus mitigate the liquidity risk. However, being cash
accumulation plan the duration of assets shorter compared to the duration of liabilities. Thus the company
is exposed to movement in interest rate (in Particular the significant fall in interest rate which should result in
a increase in liability without corresponding increase in assets).
** For the year ended March 31, 2025 the Company has paid/ provided managerial remuneration amounting to H 274.11 lakhs to its
directors which is in excess of the limit set under section 197 of the Companies Act, 2013. The Company proposes to seek approval of the
shareholders by way of special resolution at the ensuing annual general meeting for waiver of recovery of such excess remuneration paid
in terms of section 197(10) of the Companies Act, 2013.
Key Managerial Personnel and Relatives of Promoters who are under the employment of the Company are entitled
to post employment benefits and other long term employee benefits recognised as per Ind AS 19- ‘Employee
Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on the basis of
actuarial valuation, the same is not included above.
The Company has received personal guarantee from Puranmal Agrawal, Suresh Kumar Agrawal, Manish
Agrawal & Saket Agrawal in relation to loan taken from banks having outstanding balance of H 24,102.58 lakhs
(PY H 31,775.06 lakhs).
Terms and Conditions of transactions with Related Parties
The transactions with Related Party are made in the normal course of business and on terms equivalent to those that
prevail in arm's length transactions. Outstanding Balances at the year end are unsecured and settlement occurs in
cash for the year ended 31st March, 2025 (except for the transactions mentioned in Note 15.1.(b)), the Company has
recorded the receivable relating to amount due from Related Parties. This assessment is undertaken each Financial
Year through examining the Financial position of the Related Parties and the market in which the Related Party operates.
In respect of the above parties, there is no provision for doubtful debts as on 31st March 2025 and no amount has been
written off or written back during the year in respect of debt due from/to them.
42. Segment information
As the Company’s business activity falls within a single significant primary business segment i.e. “Manufacturing/
Trading of Iron & Steel Products”, no separate segment information is disclosed. These, in the context of Ind AS 108
on “Operating Segments” are considered to constitute one segment and hence,the Company has not made any
additional segment disclosures.
The information relating to revenue from external customers and location of non-current assets of its single
reportable segment has been disclosed as below:
Information about major customers
Total amount of revenues from customers (each exceeding 10% of total revenues of the Company) is H Nil (Previous
Year H Nil Lakhs).
43. Corporate social responsibility
As per Section 135 of the Companies Act, 2013, a company meeting the applicable threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(csr) activities. The areas for CSR activities are in accordance to the CSR Policy of the Company which includes Rural
Development Project, eradicating hunger, poverty and malnutrition, healthcare and sanitation, animal welfare, etc. A
CSR committee has been formed by the Company as per the Act.
47 Other Statutory Information
(a) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and intangible
assets during the current and previous financial year.
(b) The Company has not given any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment granted to promoters, directors, KMPs and related parties.
(c) The Company has used borrowings from banks and financial institutions for the specific purpose for which
it was obtained.
(d) The Company does not have any Benami property. Further, there are no proceedings initiated or are pending
against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act,
1988 and rules made thereunder.
(e) The Company does not have transactions with any struck off companies during the current and previous
financial year.
(f) The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous
financial year.
(g) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(h) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries); or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
47 Other Statutory Information (Contd..)
(i) The Company have not any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(j) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or
any other lender.
(k) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017.
48. The Company has used two accounting software(s) for maintaining its books of account. One of the software
had a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software at application and database level. Further, no instance of audit
trail feature being tampered with was noted in respect of the aforementioned software where the audit trail
feature has been enabled.
In case of other accounting software which is operated by a third-party software service provider to capture
incentive points of the dealers, Service Organisation Controls 1 type 2 report is not available, hence the Company
is unable to determine whether audit trail feature of the said software was enabled and operated throughout the
year for all relevant transactions recorded in the software or whether there were any instances of the audit trail
feature being tampered with.
Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record
retention for the software whose audit trail feature was enabled.
49 The financial statements for the year ended March 31,2025 were approved by the Board of Directors and authorised
for issue on May 30, 2025.
50. The previous year’s figures have been regrouped, rearranged and reclassified to conform to the classification of
the current year, wherever necessary.
As per our report of even date: For and on behalf of Board of Directors
For Singhi & Co.
Chartered Accountants
Firm Registration No.-302049E Suresh Kumar Agrawal Manish Agrawal
Chairman Managing Director
DIN - 00587623 DIN - 00129240
Shrenik Mehta
Partner Kamal Kumar Jain Shreya Kar
Membership No.-063769 Chief Financial Officer Company Secretary
Kolkata, 30th May, 2025 Mem No. A41041
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