24. Provisions, Contingent liabilities and Capital Commitments
Provisions are recognized when there is a present obligati on (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability, When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured with sufficient reliability, I nforma ti o n on conti ngent I i a b i I ity i s d isciosed i n the Notes to the F i nan cia I State ments.
Contingent assets are not recognised but disclosed when the inflow of economic benefits is probable, However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.
25. Government Grant
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with,
A government grant that becomes receivable as compensation for expenses or losses incurred in previous period! s). Such a grant is recognised in profit or loss of the period in which it becomes receivable,
Government grants shall be recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate, Government grants related to assets are presented in the balance sheet as deferred income and is recognised in profit or loss on a systematic basis over the expected useful life of the related assets or other relevant basis. Government grants by way of financial assistance on the basis of certain qualifying criteria are recognised as theybecomereceivable,
in the unlikely event that a grant previously recognised is ultimately not received, it is treated as a change in estimate and the amount cumulatively recognised is expensed in the Statement of Profit and Loss.
26. Revenue Recognition Sale of Goods and services
Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods.
Revenue from the sale of goods is recognised at the point in time when (a) control is transferred to the customer, which is mainly upon delivery in case of domestic sates and on issuance of Shipping Sill in case of export sales.
Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of returns, rebates and discounts to customers,
Revenue from the sate of goods excludes amounts collected on behalf of third parties, such as Goods & Services Tax (GST),
Interest Income
interest income is accrued on using on a time basis by the effective interest rate with reference to the principal outstanding.
Dividend Income
Dividend income from investments is recognised when the shareholder's right to receive payment has been established.
Export Incentives
E x port I ncen ti ves a re recogn i sed when ce rta i nty cf recei pt i s establish ed.
Insurance Claim
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured retiabiy and it is reasonable to expect ultimate collection.
Other Income
Other income is accounted for on accrual basis except where the receipt of income is uncertain and in such case it is accounted for on receipt basis.
27. Employee Benefits
The Company makes contributions to both defined benefit and defined contribution schemes which are mainly administered through/by duly constituted and approved Trusts and the Government.
Defined Contribution Scheme
In case of provident fund administered through Regional Provident Fund Commissioner, the Company has no obligation, other than the contribution payable to the provident fund,
in case of members of constituted and approved trusts, the Company recognises contribution payable to such trusts as an expense including any shortfall in interest between the amount of interest realised by the investment and the interest payable to members at I he rate declared by the Government of India.
The Company's contributions paid i payable during the year to provident fund administered through Approved Trust, Regional Provident Fund Commissioner, Superannuation Fund and Employees' State insurance Corporation are recognised in the Statement of Profit and Loss as an expense when empioyees have rendered services entitling them to contributions.
Defined Benefit Scheme
Gratuity: Cost of providing the Benefit is determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined by independent actuary using the projected unit credit method.
Re-measurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur, It is included in retained earnings In the statement of changes in equity and in the balance sheet.
Leave encashment: Leave balance as at the end of the calendar year is encashed and balance leaves earned thereaftertotheextentnotavailedbytheemployeesareprovidedintheaccounts.
28. Research and Development Expenditure
Expenditure on research of revenue nature is charged to Statement of Profit and Loss and that of capital nature
is capitalized as fixed assets.
29. Taxes on Income
Current tax is the amount of tax payable determined in accordance with the applicable tax rates and provisions of the income Tax Act, 1961 and other applicable tax laws.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability method. Deferred lax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilised. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net.
Current and deferred taxes relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an deferred tax asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
30. Dividend Distribution
Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
31. Cash Flow Statement
Cash flows statement is prepared as per the Indirect Method specified in Ind AS 7 on Cash Flows. Cash and cash equivalents (including bank balances) shown in statement of cash flows exclude item which are not a vailabf e fo r genera I u se on the dale of bala nee shee l.
32. Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit i (loss) after tax (Including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential diiutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are ad j usted for share splits / re verse sha re splits an d bonu s sh ares, a s a ppropri ate.
33. Segment Reporting
Operating segments are reported in consistent manner 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 Company.
34. Rece rvt I nd I a n Acco unting Stands rd (In d AS}
Effective 1 si April 2023, the Company has adopted the amendments vide Companies (Indian Accounting Standards) Amendment Rules, 2023 notifying amendments to existing Indian Accounting Standards. These amendments to the extent relevant to the Company's operations were relating to: Ind AS 1 “Presentation of Financial Statements" which replaces the requirement for the entities to disclose their “significant" accounting policies with a requirement to disclose their "materia!" accounting policies and further provides guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments clarify that accounting policy information is expected to be material if, without it, the user of financial statements would be unable to understand other material information in the financial statements and aiso clarify that immaterial accounting policy Information need not to be disclosed, however, if it is disclosed, it should not obscure the material accounting policy information. Further, consequential amendments with respect to the concept of 'material accounting policies' have also been made in Ind AS 107 "Financial Instruments: Disclosures" and Ind AS 34 "Interim Financial Reporting", The Company has modified and presented its "material accounting policies" in the financial statement for the year commencing from April l. 2023 in compliance with the amendments made."
Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors'" which introduces a definition of "accounting estimates” and provides guidance to help entities to distinguish changes in accounting policies from changes in accounting estimates. The amendments do nol have a material impact on the Company.
ind AS 12 "Income Taxes" narrows the scope of the initial recognition exemption' so that it does not apply to transactions that give rise to equal and offsetting temporary differences on its initial recognition. The amendments apply to the transactions that occur on or after the beginning of the earliest comparative period presented in the annual reporting periods beginning on or after April 1.2023. In addition, at the beg inning of the earliest reporting period presented deferred tax on all the temporary differences associated with Right-of- use asset and lease liabilities; decommissioning, restoration and similar liability and the corresponding amounts recognized as pari of the cost of the related assets shall also require lo be recognized as an adjustment to the opening balance of retained earnings. The amendments do not have any material impact on the Company as it has already been following accounting policy of recognizing deferred tax on equal and offsetting temporary differences on initial recognition of lease transactions.
There are other amendments in various standards, including Ind AS 101 “First Time Adoption if Indian Accounting Standards"; ind AS 102 "Share-based Payment"; Ind AS 103 "Business Combination"; ind AS 109 “Financial Instruments"; and Ind AS 115 “Revenue from Contracts with Customers" which are notiisted herein above since these are either nol material or relevant to the Company,
Ministry of Corporate Affairs ("MCA ") notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from April 1,2024.
Fair value raenMirnrncnla rccocnrzeii in she ImLiekc shed:
The following whk provide* W malys# pffin*iK»ll iiKimmcncs urn nre menwej jo iiliiuJ recofnmnci ui £kir vn|i#e, grouped mill Lcuetf I irv I
based -.'in the degree In which the fair value is ohservnhle,
-Lswl I I'hif >ihw nufakwrefnenr* wer forte derived from cp*ried prive* (ua*<ijual.«l) * «ilve mnrku Jw identic*] msww i« linbdlrlcs
-Level 3 (hir wine rnemurarocnr* we foo« derived, flnm inpu*? orther tKin quoted prices jptluifcd within Level L Hint we ofcicrviibte for the asset >*ir luhil iry,
ciilicr directly ii.c. iui prices) cc indirectly (i.c. derived cram prices).
-L«d 3 liilr value iiBawreinenB we ihoae derived Ihusrt VBluwtlc«i techniques Ibsti Irwhttlc anpw* for foe Hwaiir lUbifciljr Hurt we uui fyiud vm obicrvafete
<iv i FmnnciaJ risk man age incut tfojei-lives:
The L'nrnpnn;. s principal financial liabilities comprise oflunn from banks end lunuidnl instillation*. and unde payables. The mam purpose orthese financial liabilities is hi raise finance ftrr die Company's npcrUioeii. The C cun piny lias various financial assets :such as trade rcccnahlcL cash mid. short lerm deposits,
The main recks ansiug from Company's linancinl inMnnneon. are foreign ennetkey risk, credii risk, market risk, imcrevi rue nsk and liquidity risk. The Bonrd erf Directors review mil agree policies for managing each ofthesc risls.
4a} Credit risk
Credit risk ia tltc rak i>rfli»aftd«l Iraaiofbc Catqpuy t f a euMuater nr counterpArty to • financial Inaniuml (nih to nwcL Kb canbiflchnl obligHloM. and *mcs prlncifiisIK from the Company's 1rwlc nmj fither receivable*, e*sh and ewh ei|uivuieniv mul other hunk tulunctf. The uuittimuni «tpon«tti credit ritk, m ente of all the finnncuJ instrument; revered bekiw ts re.onercd ir- tliei-r respective carrying arnnum
ibl Marker nak.
Mmkel Risk is the risk Ihnl Ihc liiar vaJue ue liilurrcaxh flows oFa financial inslujnTiuiit will fluctuate becauseol'changes ai trinket prices-. Mariri risk loi uprises ihrCc type* nf risk CUffHWy twk. ifiGGKH rt*t risk And praw mk
111 Inreigu euiTCBpcy nsk
The Cfliiqinny w exposed to currency risk on account iT ids opetaxing And financing eei is iries. Fhc InmciMinal currency of ihc C'nmpnny l-, Undom Rupee. Company's exposure is mainly dcnrmii rated in USD, OBP and Euro. The exchange mini have changed subslannslJy eji recent periods and may continue to fluctuate xuhsiatiliiilty ill (lie future The Lump tiny bus pul In place * financial Risk Management Policy hi Identify llie BUM efleclive and uflkrcnl ways of fntitMJpng (he cutHACy Hite: Tlitf Company MCi dfflVffli i-xr instruments (rYifilll ly fcrdgri e-.tctafljjc Isms aid tXirilM£ta> lLP (tnJigatc (lie risk Of tliuiiHL-b III fwfflfn ewwos* eselwnfc rate
The Company do not use derivative financial instruments For trading nr spmilniivr purposes.
4 111 IntcfCM /aw risk
Interval rale risk a measured by using llw cask) How ssen trimly fur changes in variable ml cm I rales Any nno euscnl m I be re Iltcbcc rates could have an impact I'll (he CiittflfiBny'i Sie.li IkiW&as well asvnsta, 11k Company kite Hits-a nm of iiHvicsl hits: sensitive finances I lisatrUnifinlH lo nuUiafitrlhC iHjuidiry md fund require modi ibr ita tiny m day operntiem like dwrt-*enn Iomis-
hilcml rale sensitivity ftnnlyjjs:
As at March 3f, 20(24 interest bracing financial lxaliitity i secured loan From hanksj stood as Rs m Lars 7£3&j04 Lees, was subject Id variable interest rales. iB-iLTcasc sIrcrcaic ol'Sfl Isisis points in mlerril rates at the balance sheet dale would result in decrease incrra.se in profit bclcre UAtif Rjs. hi Lacs 39. IS Lars.
Die risk crihruiLes provided assumt a parallel shi li of 5fl basis pnous iiUereri rale. This calculation nisei assumes. iIi.il the change occurs m (lie hakince shcci ikiro and hast been calculated based an nsk exposwes nuns landing at at rhal dare The pen Lid end balances ore not necessarily representative nf Ibe average debt outstanding during Ihc period
Hair wine nf (lnfliKMl iBstrainenis;
All Financial assets arc initially n.H.xigmz®d nl fair value of can side radian pukl. Subsequently, financial assets arc earned at bur value or am Dili,red cost less iiliphIn ten I When; twit - derivative financial assCta arc carried a! Hut value, gams and lusiUs on rv- iiKasurvnicnL arc i v-oagm^cd directly In cifuity unless Ihr UnRudfll mkibImvc: been ijadjaued as bcwiRbdd u( fair wslue ihreoiah profit or loss, m which enw dw^iiH nod kh*« ore restofnlzcd diiealy in lhe-ffliindalmte rinlemepl of profit fad lots: Fjrumcinl ussat arc dedgnuieii as hcir.g |ieM art fair vnUte (itniugh profit or loss wb(* it it swec^Ary sr. reduce mensuTcmcm vncnnxisiuncy lor Tciated rusets and liabilities. All Tixiaaicinl liabilities other ihui derivatives are inilully roeognired ad tair value oreonskieratiiiQ •received nd orcrasisanion cuxts as appropdxki 1 in rliai coslk and subse 13001 iiy carried at. amiictized cosa.
(Till Liquidity risk:
Flic Cwipiny fallows, a OwBefwtiM policy mf erwrioft Miffidcni iitniidJiy ui all times ihmuifJt a ^mueny ffiFpfofiiabfc jErowih, efftciem liqndity »Ý all tunes through a strategy nJ' pco fit able pr.ivib. cfFiciena vi eefcing capital mnnaueircrn .it well ue prudent opilal £vpenilnuee. The L Limpany hut a ovenlralL ianlily with banks 1u suppuil any temporABy funding requirements.
Tlic Ciiinpany I'cLicvrs that cunml cash mid cash uquivAlenta, Lied up b>jmvi>.'irig him and cash flow that is generated liven efieratintis is su Ificient Id meet nMfalirefttnriL Accoadm^y, liquidity risk u pcfctivvd n> b* hr*
Liquiiiiiy table:
I ii^iii! iiy cables drawn up hAtpd on the eadj ||iim of fiiuiKiil lubibises based un the tuiiect date on v. Iiseb the Cofnpam' can be required te pay 4* it|te|os«id ui Note mi. 49.
$V)C*hwpn« n*:
The L'i*frtpnn> Is fuH rXp.isCd to un> tagnrlkunt equity pnee reiks arising bum cq«iry invesSinciXs. ai on 31 st Maivli 2fl24. Equity ins erfmciKs aiv held Cot tireldw ™nici than uniio* ti^tpoKii- The Ceowniy *xs m.ti Miivdv inde Hvoe fa^'SHiHMik
fVTt ijqtwly pFiuc srftsifivny atuilysai:
There is nn exposure to equity price nsks as it the icporiing date or as at chc pre, 10us reporting dale
51 Flfgrof or th* pratfoug year bflMrt regroypadAfrarraojtfd wtwwier in wrtar 10 mak* tNm nomparaljlo •mil,li ihos* or fw««rti y*ar Ffcw*** Po-jh Iihhii
rounded nH to the nearest injpees m ucs
As par our atUchad rtpon of nu date For and on benart of the Board
For Kaooor Tandnn & Co.
Chartered Jftccnurtiants F#m Ihgl&tm nn No. 4HH1BB2C
Wohd. Imran Iftikharul Arran
Dine tor {Finance} £ CFG M actor
Drvyank H*am DdN:«HB?6a ?
Partner M.«la.4U449 Place. Kanpur
Oats: 3M5-iflM ft it. Awnstrti
Qsmpa&y Saorwery
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