(b) Terms and Rights attached to equity shares
The Company has only one class of equity shares having a par value of Re. 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The holders of equity shares are entitled to receive dividend as declared from time to time. The Company has not declared dividend for the year.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
NOTE - 22
22.1 Contingent Liabilities not provided for in respect of
a. Bank Guarantees outstanding Rs. 107/- Thousand (Previous Year Rs. 107/- Thousand) against which fixed deposit receipts of Rs. 107/- Thousand (Previous Year Rs. 107/- Thousand) pledged with a bank.
22.2 There are no dues outstanding to any micro, small and medium enterprises. Accordingly, the presentation as per MSMED Act is not applicable.
NOTE - 23 Employee Benefits
As per Ind AS "Employees Benefits", the disclosure of Employees Benefits as defined in the Accounting Standard is given below:
a) Defined Contribution Plan
The Company makes contribution at a specified percentage of its payroll cost towards the Employees Provident Fund (EPF) for such employees who qualify for the same.
The Company has recognised Rs. 371.86/- Thousand (Previous Year Rs. 445.51/- Thousand) towards provident fund contribution in the Statement of Profit and Loss.
b) Defined Benefit Plans
The Company provides annual contributions as a non-funded defined benefit plan for qualifying employees. The gratuity scheme provides for payment to vested employees as under:
i) On normal retirement / early retirement /withdrawal / resignation:
As per the provisions of the Payment of Gratuity Act, 1972 with a vesting period of 5 years of service.
ii) On death while in service:
As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out at 31st March, 2026 by an Actuary using the Projected Unit Credit Method.
NOTE - 24
Disclosures on Financial Instruments
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 assets, financial liabilities and equity instruments are disclosed in accounting policies, to the financial statements.
B. Fair Value Hierarchy
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and
mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter
derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the
case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
The Company’s activities are limited to investment of surplus funds in fixed deposits with banks. Accordingly, its exposure to financial risks is minimal and primarily restricted to credit risk, interest rate risk and liquidity risk. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk to which the Company is exposed and how such risks are managed, along with their impact on the financial statements.
I. Market Risk
Market risk is the risk of loss arising from changes in market variables such as interest rates, foreign exchange rates, and other financial parameters that may affect the value or future cash flows of financial instruments. Given that the Company does not have any trading or operating activities and only holds fixed deposits, its exposure to broader market risks is limited.
a. Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s fixed deposits are generally placed at predetermined fixed interest rates; hence, there is no exposure to cash flow interest rate risk. However, the Company may be exposed to reinvestment risk upon maturity of such deposits, depending on prevailing market rates.
b. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows will fluctuate due to changes in foreign exchange rates. As the Company does not have any foreign currency transactions or exposures, it is not exposed to foreign currency risk.
II. Credit Risk
Credit risk is the risk that a counterparty will fail to meet its obligations, resulting in financial loss to the Company. The Company’s exposure to credit risk is limited to its investments in fixed deposits with banks. The Company places its deposits only with reputable and creditworthy banks, thereby mitigating the risk of default. Accordingly, the credit risk is considered low.
III. Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its short-term financial obligations as they fall due. Since the Company does not have any significant liabilities and maintains its funds in fixed deposits (with varying maturities) and bank balances, liquidity risk is minimal. The Company ensures that sufficient liquidity is available by maintaining an appropriate mix of liquid and near-liquid assets.
NOTE - 25
25.1 The Wire Rope factory is closed and manufacturing of furniture busniess has also been discontinued.
25.2 Related Party Transactions
During the year, the Company entered into the following material transactions with The New Great Eastern Spinning And Weaving Company Limited (a promoter group company)
The Company has approved the sale of its office premises admeasuring 1,340 sq. ft. situated at Jolly Bhavan No. 1, New Marine Lines, Mumbai, for a consideration of INR 51,500 thousand; and consequent to the proposed sale, the Company has also approved taking on leave and license basis an area of 250 sq. ft. in the said premises for a period of 3 years at a monthly license fee of INR 75 thousand.
The aforesaid transactions were approved by the Board of Directors on February 24, 2026 and by the shareholders through postal ballot, the results of which were declared on March 31, 2026, with requisite majority.
25.3 Additional regulatory information
a. Title deeds of immovable properties are held in name of the company.
b. The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
c. The Company has not provided or given Loans or Advances in the nature of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties either severally or jointly with any other person.
e. The Company does not own any benami property.
f. The Company has no outstanding borrowings from banks on the basis of security of current assets.
g. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
h. The Company has no transactions with the companies struck off under the Act or Companies Act, 2013.
i. There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
j. The Company has complied with the number of layers prescribed under the Act.
k. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
l. Utilisation of borrowed funds and share premium:
(i) 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:
a. 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
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries."
(ii) 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:
a. 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
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries."
m. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
n. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
o. Corporate Social Responsibility (CSR) is not applicable to the company in accordance with Section 135 of the Companies Act 2013.
NOTE - 27
27.1 Deferred Tax Assets/ Liabilities have been recognised during the year.
27.2 Provision for depreciation as per Companies Act 2013 as presented in Schedule II has been accounted for on the basis of the useful life of the asset.
|