4.6 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect of the time value of money is material,
provisions are discounted using a current pre tax rates that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognized as a finance cost.
A provision for onerous contract is recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of
terminating the contract and the expected net cost of continuing with the contract. Before a
provision is established, the Company recognizes any impairment loss on the assets associated
with the contract.
Contingent liabilities are not recognized in the standalone financial statements. A contingent asset
is neither recognized nor disclosed in the standalone financial statements.
4.7 Revenue Recognition
Revenue:
Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. Revenue is measured at the fair
value of the consideration received or receivable, taking into account contractually defined terms
of payment and excluding taxes or duties collected on behalf of the government.
The Company has generally concluded that it is the principal in its revenue arrangements, because
it typically controls the goods or services before transferring them to the customer.
The specific recognition criteria described below must also be met before revenue is recognized.
(i) Sale of Goods Revenue from sale of goods is recognized at the point in time when control
of the asset is transferred to the customer, generally on delivery of the goods. The normal credit
term is 0 to 180 days upon delivery, usually backed by financial arrangements.
(ii) Revenue from job work processes are recognized as and when the related jobs are performed,
the cost incurred up to reporting date for the in-completed jobs are carried to balance sheet under
the head cost on job work in process.
(iii) The Company accounts for pro forma credits, refunds of duty of customs or excise, or
refunds of sales tax/ GST in the year of admission of such claims by the concerned authorities.
Benefits in respect of Export Licenses are recognized on accrual basis. Export benefits are
accounted for as other operating income in the year of export based on eligibility and when there
is no uncertainty on receiving the same
(iv) Interest Income is recognized on time proportion basis taking into account the amounts
outstanding and the rates applicable. Interest income is included under the head “other income”
in the Statement of Profit and Loss.
Contract balances:
(a) Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred
to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.
(b) Trade receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due). Refer
to accounting policies of financial assets in note (i) Financial instruments - initial recognition
and subsequent measurement.
(c) Contract liabilities (Advance from customers)
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 recognized when the payment is made or the payment
is due (whichever is earlier). Contract liabilities (Advance from customers) are recognized
as revenue when the Company performs under the contract.
4.8 Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership
of an asset are classified as operating leases. Rental income from operating lease is recognised
on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the carrying amount of the leased asset and
recognised over the lease term on the same basis as rental income. Contingent rents are recognised
as revenue in the period in which they are earned
Leases are classified as finance leases when substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts due from lessees under finance leases are
recorded as receivables at the Company’s net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
The Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. The Company recognises lease liabilities to
make lease payments and right-of-use assets representing the right to use the underlying assets.
(i) Right-of-use assets
The Company recognises right-of-use assets ("ROU Assets) at the commencement date of
the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred, and lease payments made
at or before the commencement date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.
If ownership of the leased asset transfers to the company at the end of the lease term or
the cost reflects the exercise of a purchase option, depreciation is calculated using the
estimated useful life of the asset. The right-of-use assets are also subject to impairment.
Refer to the accounting policies in 4.6 Impairment of non-financial assets.
(ii) Lease liabilities
At the commencement date of the lease, the Company recognizes lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the lease term reflects the Company
exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognized as expenses (unless they are incurred to produce inventories) in
the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the
lease is not readily determinable. After the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments)
or a change in the assessment of an option to purchase the underlying asset. Lease
liabilities has been presented under the head “Other Financial Liabilities”.
(iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12 months or less from the commencement date
and do not contain a purchase option). It also applies the lease of low-value assets recognition
exemption that are considered to be low value. Lease payments on short-term leases and
leases of low-value assets are recognized as expense on a straight-line basis over the lease
term.
4.9 Borrowing Costs
Borrowing costs include
(i) interest expense calculated using the effective interest rate method,
(ii) finance charges in respect of finance leases, and
(iii) exchange differences arising from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
All other borrowing costs are recognised in the statement of profit and loss in the period in which
they are incurred.
4.10 Government Grants
Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received.
When the grant relates to an asset, it is treated as deferred income and released to the statement
of profit and loss over the expected useful lives of the assets concerned. When the Company
receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to statement of profit and loss over the expected useful life in a pattern
of consumption of the benefit of the underlying asset. Government grants that are receivable as
compensation for expenses or losses already incurred or for the purpose of giving immediate
financial support to the Company with no future related costs are recognised in statement of profit
and loss in the period in which they become receivable.
4.11 Employee benefits
(a) Short-term obligations
Liabilities for salaries, including other monetary and non-monetary benefits that are expected
to be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees’ services up to the end
of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current employee benefit obligations in
the balance sheet.
(b) Post-employment obligations
The Company operates the following post-employment schemes: a) defined contribution
plans - provident fund b) defined benefit plans - gratuity plans.
(i) Defined contribution plans
The Company has defined contribution plan for the post-employment benefits namely
Provident Fund, Employees Death Linked Insurance and Employee State Insurance
and the contributions towards such funds and schemes are recognised as employee
benefits expense and charged to the Statement of Profit and Loss when they are due.
The Company does not carry any further obligations with respect to this, apart from
contributions made on a monthly basis.
(ii) Defined benefit plans
The Company has defined benefit plan, namely gratuity for eligible employees in
accordance with the Payment of Gratuity Act, 1972 the liability for which is determined
on the basis of an actuarial valuation (using the Projected Unit Credit method) at the
end of each year.
The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting
period on government bonds that have terms approximating to the tenor of the related
obligation. The liability or asset recognized in the balance sheet in respect of gratuity
is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets.
The service cost (including current service cost, past service cost, as well as gains
and losses on curtailments and settlements) is recognised in the Statement of profit
and loss in the line item ‘Employee benefits expense’.
Remeasurements of the net defined liability, comprising of actuarial gains and losses,
return on plan assets (excluding amounts included in net interest on the net defined
benefit liability) and any change in the effect of asset ceiling (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit or credit to retained earnings through
Other Comprehensive Income (OCI) in the period in which they occur. Remeasurements
are not reclassified to profit or loss in subsequent periods.
Change in the present value of the defined benefit obligation resulting from plan
amendments or curtailments are recognised immediately in the profit or loss as past
service cost.
4.12 Income Taxes
Income tax expense represents the sum of the tax currently payable and deferred tax
(i) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from
‘profit before tax’ as reported in the statement of profit and loss because of items of income
or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Company’s current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period.
(ii) Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized. Such deferred tax
assets and liabilities are not recognized if the temporary difference arises from the initial
recognition of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply
in the period in which the liability is settled or the asset realized, based on tax rates (and
tax laws) that have been enacted or substantively enacted by the end of the reporting
period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.
(iii) Current and deferred tax for the year
Current and deferred tax are recognized in the Statement of profit and loss, except when
they relate to items that are recognized in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also recognized in other comprehensive
income or directly in equity respectively.
4.13 Fair Value Measurement
A number of Company's accounting policies and disclosures require the determination of fair
value, for both financial and non-financial assets and liabilities. Fair value is the price that would
be received on sell of an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A fair value measurement assumes that the transaction
to sell the asset or transfer the liability takes place either in the principal market for the asset or
liability or in the absence of a principal market, in the most advantageous market for the asset
or liability. The principal market or the most advantageous market must be accessible to the
Company.
The fair value of an asset or liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy based on the lowest level input that is significant
to the fair value measurement as a whole. The fair value hierarchy is described as below:
(a) Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities.
(b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly or indirectly.
(c) Level 3 - Unobservable inputs for the asset or liability.
For assets and liabilities that are recognized in the financial statements at fair value on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy
by re-assessing categorization at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of fair value hierarchy.
Fair values have been determined for measurement and / or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or liability.
(a) Investment in equity and debt securities
The fair value is determined by reference to their quoted price at the reporting date. In the
absence of quoted price, the fair value of the financial asset is measured using valuation
techniques.
(b) Trade and other receivables
The fair value of trade and other receivables, is estimated as the present value of future
cash flows, discounted at the market rate of interest at the reporting date. However in
respect of such financial instruments, fair value generally approximates the carrying amount
due to short term nature of such assets.
(c) Non derivative financial liabilities
Fair Value, which is determined for disclosure purposes, is calculated based on the present
value of future principal and interest cash flows, discounted at the market rate of interest
at the reporting date. For finance leases, the market rate of interest is determined by
reference to similar lease agreements.
NOTE 17.2 RIGHTS, PREFERENCES AND RESTRICTIONS:
TThe authorised share capital of the Company has only one class of shares referred to as ‘equity shares’ having
a par value of ' 1/- each. The rights and privileges to equity shareholders are general in nature and defined under
the Articles of Association.
The equity shareholders shall have:
(i) One Vote and a poll when present in person (including a body corporate by a duly authorised representative)
or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion
to his share of the paid equity share capital of the company. However, no member shall exercise any voting
rights in respect of any share registered in his name on which any calls or other sums presently payable
by him have not been paid or in regard to which the company has exercised any right of lien.
(ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall
be declared and paid according to the amount paid or credited as paid to the shares in respect where of
the dividend is paid but if and so long as nothing is paid upon any shares in the company, dividends may
be declared and paid according to the amounts of the shares.
(iii) A special resolution sanctioning a sale to any other company duly passed pursuant to section 494 of the
old Companies Act 1956 (corresponding to the section 319 of the new Companies Act 2013) may, subject
to the provision of the act, in like manner as aforesaid determined that any shares or other consideration
receivable by the liquidator be distributed against the members otherwise then in accordance with their
existing rights and any such determination shall be binding upon all the members subject to the rights of
dissent and consequential right conferred by the said section.
(a) The Company received an order under Section 45-A of the Employees’ State Insurance Act, 1948, pertaining
to the financial years 2002 to 2005, raising a demand of Rs. 25.35 lakhs. The Company has contested this
demand and initiated proceedings before the Kamdar Rajya Bima Adalat, Ahmedabad. In accordance with
the directions of the ESI Court, the Company has furnished a Bank Guarantee amounting to Rs. 13.00 lakhs.
During the previous financial year, the ESI Court directed the Company to pay Rs. 0.59 lakhs towards
contractor’s liability, which amount has been duly deposited and is reflected as a deposit in the Company’s
books as of March 31, 2024.
In the current financial year, on December 11,2024, the ESIC department instructed HDFC Bank to transfer
Rs. 90.98 lakhs (including an interest component of Rs. 65.58 lakhs) to the ESIC department. Pursuant to
this directive, HDFC Bank effected the transfer of the said amount. The Company has subsequently filed an
appeal against this directive before the High Court of Gujarat on December 16, 2024.
The total amount of Rs. 90.98 lakhs paid under protest is disclosed as “ESIC Deposit Amount Paid Under
Appeal” under Note 10 to the financial statements.
NOTE 39 - CAPITAL MANAGEMENT:
The Company manages its capital to ensure that entities in the Company will be able to continue as going
concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and
total equity of the Company.
B. Fair value hierarchy for assets: (Contd.....)
Notes:
Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market
for identical assets that the entity can access at the measurement date. This represents mutual funds that
have price quoted by the respective mutual fund houses and are valued using the closing Net asset value
(NAV).
Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical
or similar assets in markets that are not active.
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 compound instruments.
There are no transfers between any of these levels during the year. The Company’s policy is to recognize
transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
C. Fair value of financial assets and liabilities measured at amortized cost:
The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other
bank balances, other financial assets and trade payables approximate their carrying amounts largely due to
their short-term nature. Difference between carrying amount of Bank deposits, other financial assets ,
borrowings and other financial liabilities subsequently measured at amortised cost is not significant in each
of the years presented.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.
D. Derivative Financial Instrument
The Company takes various types of derivative instruments. The category-wise outstanding position of
derivative instruments is as under:-
NOTE 41 - FINANCIAL RISK MANAGEMENT:
The Company’s risk management policies are established to identify and analyses the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to re?ect changes in market conditions and the Company’s activities.
The Company, through its training and management standards and procedures, aims to maintain a disciplined
and constructive control environment in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit
undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which
are reported to the audit committee.
(a) 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. The company is exposed to the credit risk from its trade receivables,
unbilled revenue, investments, cash and cash equivalents, bank deposits and other financial assets. The
maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of
managing counterparty credit risk is to prevent losses in financial assets.
Allowance for Doubtful Debts
The company has provided allowance for doubtful debts based on specific amount of particular customer.
Movement in allowance for doubtful debt are as follows:
Cash and Cash Equivalents:
Credit risk on cash and cash equivalents and other deposits with banks is limited as the Company generally
invests in deposits with banks with high credit ratings assigned by external credit rating agencies; accordingly
the Company considers that the related credit risk is low. Impairment on these items is measured on the
12-month expected credit loss basis.
(b) 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, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company’s reputation.
The Company’s treasury maintains flexibility in funding by maintaining liquidity through investments in liquid
funds and other committed credit lines. Management monitors rolling forecasts of the group’s liquidity
position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of
expected cash flows.
Liquidity Table
The Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay. The tables include both
interest and principal cash flows. The contractual maturity is based on the earliest date on which the
Company may be required to pay.
(c) Market Risk:
Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest
rates - 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. The Company is exposed to market risk primarily related to foreign exchange
rate risk, interest rate risk and the market value of the investments. Thus, the exposure to market risk is
a function of investing and borrowing activities and revenue generating and operating activities in foreign
currency.
(i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s debt obligations with floating interest rates and
investments.
Most of the Company’s borrowings are on a floating rate of interest. The Company has exposure to
interest rate risk, arising principally on changes in Repo Rate (except for vehicle loan and GECL loan).
The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund
requirements for its day to day operations from internal accruals.
The exposures of the Company’s financial assets / liabilities at the end of the reporting period are as
follows:
The above mentioned information has been compiled to the extent of responses received by the company
from its suppliers with regard to their registration under Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act, 2006).
(b) The company has circulated letters of Balance Confirmation to Sundry Debtors, Sundry Creditors and the
parties to whom loans and advances have been granted. Confirmations were received in some cases.
NOTE 43 - UN-HEDGED FOREIGN CURRENCY EXPOSURE:
The Company does not enter into forward exchange contracts to hedge against its foreign currency exposures
relating to the underlying transactions and firm commitments.
NOTE 44 - LEASES:
Factory Building and Godown have been taken on lease by the Company. The terms of lease rent are for the
period 30 years. Such leases are renewable by mutual consent. There is no contingent rent, no sub-leases and
no restrictions imposed by the lease arrangements.
NOTE 45:
Subsequent to the balance sheet date, the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal
Unit, had initiated search operations under Section 67 of the Central Goods and Services Tax Act, 2017, at the
registered office / factory of the company at Rakhial, Ahmedabad. The officials concluded such search operations
recently i.e. in the first quarter of financial year 2025-2026. During the period of search, the company fully
cooperated with the officials and responded to all clarifications and details sought by them. This has not impacted
the operations of the company, which have continued as usual.
Upon oral instructions of the officials, the company made a payment of Rs. 188.00 Lakhs under protest. As of
the date of signing of the financial statements for the financial year 2024-2025, the company has not received
any formal communication from the authorities. The management does not expect any adverse consequences
from these search operations on the company’s financial or operational position.
The company will recognize the requisite liability or disclose a contingent liability, if any, when such a liability
materialize upon the initiation of formal proceedings by the DGGI, Ahmedabad Zonal Units.
NOTE 46 : OTHER REGULATORY INFORMATION REQUIRED BY SCHEDULE III :
(a) Title deed of immovable property
The title deed of all the immovable properties (other than properties where the Company is the lessee and
the lease agreements are duly executed in favor of the lessee) are held in the name of the Company.
(b) Revaluation of Property, Plant and Equipment and Intangible Assets
The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and
Intangible assets.
(c) Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person.
The Company have not given any loans or advances in the nature of loans to promoters, directors, KMPS
and the related partied (as defined under Companies Act, 2013), either severally or jointly with any other
person.
(d) Fair Value of Investment Property
The Company does not own any immovable property which is classified as Investment property as at the
end of the year
(e) Capital- work- in progress (CWIP)
Refer note 7 for detailed disclosure.
(f) Details of Benami Property Held
The Company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and the rules made thereunder. Hence any proceeding has not been initiated or pending
against the group companies for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and the rules made thereunder.
(g) Borrowings obtained on the basis of security of current assets
The Company does not have any sanctioned working capital limits from banks on the basis of security
of current assets.
(h) Wilful Defaulter
The Company has not been declared Wilful Defaulter by any bank or financial institution or any other lender.
(i) Relationship With Struck Off Companies
The company does not have transactions with companies struck off under section 248 of the companies
act, 2013 or section 560 of the companies act, 1956.
NOTE 46 : OTHER REGULATORY INFORMATION REQUIRED BY SCHEDULE III : (CONTD.....)
(j) Registration of Charges or Satisfaction with Registrar of Companies
The Company does not have any charges or satisfaction, which is yet to be registered with ROC beyond
the statutory period.
(k) Compliance with number of layers of companies
The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the
Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.
(l) Approved scheme of arrangements
The Company has not entered into any scheme of arrangement approved by the Competent Authority in
terms of sections 230 to 237 of the Companies Act, 2013
(m) Utilisation Of Borrowed Funds And Share Premium
(i) During the year, no funds have been advanced or loaned or invested funds (either borrowed funds
or share premium or any other sources or kind of funds) by the company to any other persons or
entities, including foreign entities with the understanding whether recorded in writing or otherwise that
the Intermediary shall 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 provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) During the year, the company has not received any fund from any persons or entities, including
foreign entities (Funding Parties) with the understanding whether recorded in writing or otherwise that
the company shall 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(n) Undisclosed Income
The Company does not have 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).
(o) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
Note:
1 During the current year, there is increase in turnover and profit comapred to previous year which has resulted into such
variation.
2 Return on Equity ratio is increased in net profit compared to previous year.
3 During the current year, there is increase in turnover comapred to previous year which has resulted into such variation.
4 There is significant increase in purchase compared to previous year which has resulted into such variation.
5 There is significant increase in Sales and net profit compared to previous year which has resulted into such variation.
6 Return on Investment is not calcualed as no interest is received on the investment done by the company.
NOTE 47 - CODE ON SOCIAL SECURITY, 2020:
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post- employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The company will assess the
impact of the Code when it comes into effect and will record any related impact after the Code becomes effective.
NOTE 48 - STATEMENT OF MANAGEMENT:
(a) The non current financial assets, current financial assets and other current assets are good and recoverable
and are approximately of the values, if realized in the ordinary courses of business unless and to the extent
stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount
reasonably necessary. There are no contingent liabilities except those stated in the notes.
(b) Balance Sheet, Statement of Profit and Loss, cash flow statement and change in equity read together with
Notes to the accounts thereon, are drawn up so as to disclose the information required under the
Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as
at the end of the year and financial performance of the Company for the year under review.
NOTE 49:
The figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable
with the figures for the current year. Figures are rounded off to nearest Lakhs.
As per our report of even date FOR AND ON BEHALF OF THE BOARD
FOR G. K. CHOKSI & CO.
[Firm Registration No. 101895W] SUNIL R. AGARWAL YASH S. AGARWAL
Chartered Accountants Chairman & MD Director
DIN:00265303 DIN : 02170408
ROHIT K. CHOKSI
Partner DEEPIKA LADHA VIKRAM GUPTA
Mem. No. 31103 Company Secretary Chief Financial Officer
Place : Ahmedabad Place : Ahmedabad
Date : 29th May, 2025 Date : 29th May, 2025
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