(M) Provisions and Contingent Liabilities: [Ind AS
37]
A provision is recognized when the company has a
present obligation as a result of past events and it
is probable that an outflow of resources will be
required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions
are not discounted to their present value and are
determined based on best estimates required to
settle the obligation at the balance sheet date.
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably.
Dakshin Gujarat VijCompany Ltd. has raised
demand of cross subsidy surcharges for the
financial year 2005-06 of 66.73 lakhs vide its
show cause notice / letter no.
DGVL/C&R/CPP/Cross-Sub.Surch/08/2821 dated
05-06-2008 to Shahlon Industrial Infrastructure
Pvt. Ltd, which is merged with Shahlon Silk
Industries Ltd. The amount payable is under
Dispute. Shahlon Industrial Infrastructure Pvt.
Ltd., one of the transferor Company which is
merged with Shahlon Silk Industries Ltd. has
received notice from collector of electricity duty
demanding electricity duty @15% on supply of
electricity to its members, whereas the said
company has paid electricity duty 0.40 paisa per
unit considering power generation is for captive
purpose. The amount payable is under dispute.
Contingent assets
Contingent assets are neither recognized nor
disclosed in the financial statement.
Provisions, Contingent Liabilities and Contingent
assets are reviewed at each balance sheet date.
(N) Government Grants: [Ind AS 20]
Grants and subsidies from the government are
recognized 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.
Government grants relating to purchase of
property, plant and equipment are included in the
non-current liabilities as deferred income and are
credited to profit or loss on a straight-line basis
over the expected lives of the related assets and
presented within other income.
As per the Second Amendment Rules 2018 notified
by MCA on 20th September, 2018 amending IND-
AS 20 - Government Grants, an alternative is
provided to reporting entities whereby
government grant related to assets can be
presented by deducting the value of grant from the
carrying amount of asset. The said amendment is
applicable effective from reporting period
beginning on or after 1st April, 2018.
(O) Intangible assets (Excluding Goodwill): [Ind AS
38]
Intangible assets are recognized when it is
probable that the future economic benefits that
are attributable to the asset will flow to the
enterprise and the cost of the assets can be
measured reliably.
Intangible Assets are stated at cost of acquisition
net of recoverable taxes, trade discount and
rebates less accumulated amortization/depletion
and impairment loss, if any. Such cost includes
purchase price, borrowing costs, and any cost
directly attributable to bringing the asset to its
working condition for the intended use, net
charges on foreign exchange contracts and
adjustments arising from exchange rate variations
attributable to the intangible assets. Subsequent
costs are included in the asset's carrying amount
or recognized as a separate asset, as appropriate,
only when it is probable that future economic
benefits associated with the item will flow to the
entity and the cost can be measured reliably. Gains
or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognized in
the Statement of Profit and Loss when the asset is
derecognized.
(P) Impairment of non-financial assets - property,
plant and equipment and intangible assets:
[Ind AS 36]
The carrying amounts of assets are reviewed at
each balance sheet date if there is any indication of
impairment based on internal/external factors.
An impairment loss is recognized in the Statement
of Profit and Loss to the extent, asset's carrying
amount exceeds its recoverable amount. The
recoverable amount is higher of an asset's fair
value less cost of disposal and value in use.
Value in use is based on the estimated future cash
flows, discounted to their present value using pre¬
tax discount rate that reflects current market
assessments of the time value of money and risk
specific to the assets. The impairment loss
recognized in prior accounting period is reversed if
there has been a change in the estimate of
recoverable amount.
(Q) Finance Cost: [Ind AS 23]
Borrowing costs that are directly attributable to
the acquisition or construction of a qualifying
asset are capitalized as part of the cost of such
asset. A Qualifying asset is one that necessarily
takes substantial period of time to get ready for its
intended use.
Interest income earned on the temporary
investment of specific borrowing pending their
expenditure on qualifying asset is deducted from
the borrowing cost eligible for capitalization. All
Other borrowing costs are charged to statement of
profit and loss for the period in which they are
incurred.
(R) Leases: [Ind AS 116]
Leases are classified as finance leases whenever
the terms of the lease, transfers substantially all
the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.
Leased assets:
The company has acquired 99 years leasehold
right of Plot no.: Composite unit 1 and 2 & Plot No.
3, 4, 5A and 15, Fairdeal Textile Park, Village:
Mahuvej, Taluka: Mangrol, Dist.: Surat, by
subscribing to the shares of Fairdeal Textile Park
Pvt. Ltd. All the risk and rewards of the leasehold
land has been transferred to the Company. The life
of leasehold land has been considered beyond
estimate because of the period of lease being 99
years and renewable thereafter gives the
Company ownership of the plot in perpetuity.
The leasehold land has been recognized at Nil
value and the value by virtue of which the
Company acquired the leasehold right has been
recognized non-current at their historical cost.
Operating lease payments are recognized as an
expense. Further, there is no outstanding lease
contract which requires the treatment to
recognize the right to lease asset and lease liability.
(S) Earning in foreign exchange: F.O.B. values of
exports Rs. 1,536.69/- lakhs (Previous Year Rs.
1,765.43 lakhs).
(T) Sales/Purchase included inter-divisional transfers
of NIL (Pre. Year NIL).
(U) Debtors of Rs. 9,727.50 lakhs include Rs. 6.53 lakhs
(Previous Year Rs. 14,544.06 lakhs include Rs.4.34
lakhs) due from concern in which Directors are
interested.
MI. Rotation of Statutory Auditor:
As per the provisions of Section 139(2) of the
Companies Act, 2013 and the rules made thereunder,
the tenure of M/s Rasesh Shah & Associates, Chartered
Accountants (Firm Registration No. 108671W), as
Statutory Auditors of the Company ended upon
completion of two consecutive terms of five years each
at the conclusion of the Annual General Meeting held
on 30th September, 2024.
Based on the recommendation of the Audit Committee
and Board of Directors of the Company, the
Shareholders of the Company has approved the
appointment of M/s. HTKS & Co., Chartered
Accountants (Firm Registration No. 111032W), as the
Statutory Auditors of the Company to hold the office
for a term of five consecutive years from the conclusion
of the said AGM of the Company till the conclusion of
21st AGM of the Company, which will be held in
Financial year 2029-2030.
V. Disclosure relating to Corporate Social
Responsibility ('CSR')
During the financial year 2024-25, provisions relating
to CSR become applicable to the company as the
company has crossed the threshold limit as stipulated
under section 135 of the Companies Act, 2013 and
therefore, was required to spend Rs. 7,05,000/-
(Rupees Seven Lakhs Five Thousand Only) towards CSR
activities. However, upon recommendation of the CSR
committee, the Board of the approved Rs. 7,25,000/-
(Rupees Seven Lakhs Twenty-Five Thousand Only)
towards CSR activities. The further details are as
follows:
(ii) Dividends not recognised at the end of the reporting period
The Board of Directors at its meeting held on May 27, 2025 proposed a final dividend for the financial year 2024-25
of ' 0.07 per equity share of ' 2/- each. Subject to the approval of the shareholders in the upcoming Annual General
Meeting. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated
equity dividend to be paid is ' 62.51 Lakhs
VII. Previous year's figures have been regrouped and recasted wherever necessary.
As per our Report of even date For and on behalf of the Board
For H T K S & CO. Shahlon Silk Industries Limited
Chartered Accountants
Dhirajlal R. Shah Arvind R. Shah
CA HARISHANKAR TOSNIWAL Chairman Managing Director
DIN :00010480 DIN :00010483
MNO. : 055043 Hitesh K. Garmora Satish H. Shah
Firm Reg. No : 111032W Company Secretary Chief Financial Officer
Place : Surat
Date : 27.05.2025 Place : Surat
UDIN : 25055043BMGXXR7147 Date : 27.05.2025
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