3.12 Provisions & Contingent Liabilities
Provisions are recognized when an enterprise has a present obligation as a result of past event that probably requires an outflow of
resources to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. They are reviewed at each balance
sheet date and adjusted to reflect the current best estimates
Contingent Liabilities are not provided for and are disclosed by way of notes to the financial statements when there is a possible obligation
arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect
cannot be made.
Contingent assets are not recognised but disclosed in the financial statement by way of notes to accounts when an inflow of economic
benefits is probable.
3.13 Employee Benefits
i) Short Term Employee Benefits
Short term employee benefits, such as salaries, wages, incentives etc. are recognized as expenses at actual amounts, in the Statement
of Profit and Loss of the year in which the related services are rendered. Leave not availed in a year can be carried forward up to 30 days.
ii) Defined Contribution Plans
Defined contribution plans are Provident Fund Scheme, Employee State Insurance Scheme and Government administered Pension
Fund Scheme for the employees. The company makes monthly contributions towards these funds / schemes, which are recognized in
the Statement of Profit & Loss in the financial year to which they relate. There is no obligation other than the monthly contributions.
iii) Defined Benefit Plans
The company has a defined benefit plan for Post-employment benefit in the form of Gratuity for all employees. Contribution on account
of gratuity payment is made to the Gratuity Trust. Liability for above defined benefit plan is provided on the basis of actuarial valuation, as
at the Balance Sheet date. The actuarial method used for measuring the liability is the Projected Unit Credit method. Actuarial gain and
losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income
3.14 Revenue recognition
Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer,
which generally coincides with delivery.
Sale of goods: Revenue from the sale of goods is recognised when the Company transfers control of the product. Control of the product
transfers upon shipment of the product to the customer or when the product is made available to the customer, provided transfer of title
to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the
product shipped . Amounts disclosed as revenue are net off returns, trade allowances, rebates and indirect taxes.
Export Benefits
Export incentives are accounted for on export of goods in the year of export if the entitlements can be estimated with reasonable
accuracy and conditions precedent to claim is fulfilled.
Interest & Dividend
Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend income is recognized when the shareholders’ right to receive payment is established by the balance sheet date.
3.15 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are
recognised in the Statement of Profit and Loss using the effective interest method
3.16 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the income
statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.
Tax expense comprises of current tax and deferred tax.
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.
Deferred income tax reflects the impact of current year’s timing differences between taxable income and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax asset arising on
account of unabsorbed depreciation or carry forward tax losses are recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes down the carrying amount of a
deferred tax asset to the extent that it is no longer reasonably or virtually certain, as the case may be, that sufficient income will be available
against which deferred tax asset can be realized.
3.17 Earnings Per Share
Basic Earnings per Share is calculated by dividing the net profit or loss after tax for the year attributable to Equity Shareholders (after
deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average
numbers of equity shares outstanding during the year are adjusted for events of bonus issue, bonus elements in a right issue to existing
shareholders and share splits.
For the purpose of calculating Diluted Earnings per share, the net profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
3.18 Segment Reporting
Segment is identified and reported taking into account the nature of products and services, the different risks and returns and the integral
business reporting systems. The Company primary business segment is Industrial Safety Products. The Industrial Safety Products
business incorporates product Companys’ viz. Leather hand Gloves, Industrial Work Garments, Seamless Knitted Gloves, Leather Shoe
Upper, Safety Shoes and Nitrile Dipped Gloves, which mainly have similar risks and returns. Thus the Company business activity falls
within a single primary business segment.
4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and
thereported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements
and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Differences between the actual results and estimates are recognised in the year in which the
results are known /materialised and, if material, their effects are disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of
assumptions in the financial statements have been disclosed below The key assumptions concerning the future and other key sources
of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of
assets and liabilities within the next financial year are discussed below:
4.1 Depreciation / amortisation and impairment on property, plant and equipment / intangible assets.
Property, Plant and Equipment and Intangible assets are depreciated/amortised on straight-line/written down value basis over the
estimated useful lives (or lease term if shorter) in accordance with Company accounting policy, taking into account the estimated residual
value, wherever applicable.
The Company is currently providing depreciation on straight line basis at its work garment units at Ghatakpukur.
The Company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are
impaired.In such situation Asset’s recoverable amount is estimated which is higher of asset’s or cash generating units (CGU) fair value less
cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rates
which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are
considered orotherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful
lives of the assets regularly in order to determine the amount of depreciation / amortisation and amount of impairment expense to be
recorded during anyreporting period. This reassessment may result in change estimated in future periods.
4.2 Arrangements containing leases and classification of leases
The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the
service/hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited
to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such
option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased
asset and extent of specialised nature of the leased asset.
4.3 Claims and Compensation
Claims including insurance claims are accounted for on determination of certainty of realisation thereof.
4.4 Impairment allowances on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of
impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on
the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial
conditions of the trade receivable were to deteriorate, actual write-offs would be higher than estimated.
4.5 Income taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation
of the provision for income taxes.
4.6 Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount
rate,anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
4.7 Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting
frompast operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of
the liability requires the application of judgement to existing facts and circumstances, which can be subject to change.
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/
against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take account of
changing facts and circumstances.
15.2 The company has only one class of equity shares having a par value of H10 per share. Each holder of equity share is entitled to one
vote per share.
15.3 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.
15.4 As no fresh issue or reduction in capital is made during the current year as well as during the previous period, hence there is no
change in the opening and closing capital. Accordingly, reconciliation of share capital has not been given.
15.5 Agreegate number of bonus shares issued, shares issued for consideration other than cash and bought back shares during the
period of five years immediately preceeding the reporting date:
As at 31.03.2025 As at 31.03.2024
Nil Nil
15.6 The Equity Shares of the company are listed at NSE & BSE Limited and the annual listing fees has been paid for the year.
NOTE 16: OTHER EQUITY
Nature of Reserves
Capital Reserve
Capital Reserve represents the amount, being the purchase price lower then the fair market value of the capital assets acquired by the
company and used for the purposes of its business.
Securities Premium Reserve
Securities Premium Reserve represents the amount received in excess of par value of equity shares of the company. The same, interalia,
may be utilized by the company to issue fully paid-up bonus shares to its members and buying back the shares in accordance with the
provisions of the companies Act, 2013.
General Reserve
General Reserve represents the reserve created by apportionment of profit generated during the year or transfer from other reserves
either voluntary or pursuant to statutory requirements. The same is a free reserve and available for distribution.
Retained Earnings
Retained Earnings represents the undistributed profits of the company.
Fair Valuaton Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer in
an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and borrowings
approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the
carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements
approximate their fair values.
A substantial portion of the company’s long-term debt has been contracted at floating rates of interest, which are reser at short intervals.
Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost. In
respect of fixed interest rate borrowings, fair value is determined by using discount rates that reflects the present borrowing rate of
the company.
Investments (Other than Investments in Associates, Joint Venture and Subsidiaries) traded in active market are determined by reference
to the quotes from the stock exchanges as at the reporting date. Investments in liquid and short-term mutual funds are measured using
quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available
have been included in the market value at the face value/paid up value, whichever is lower except in case of debentures, bonds and
government securities where the net present value at current yield to maturity have been considered. Unquoted investments in shares
have been valued based on the historical net asset value as per the latest audited financial statements.
Derivative financial assets and liabilities:
The Company follows established risk management policies, including the use of derivatives to hedge its exposure to foreign fluctuations
on foreign currency assets/liabilities. The counter party in these derivative instruments is a bank and the company considers the risks of
non-performance by the counter party as non-material.
FINANCIAL RISK FACTORS
The Company’s activities and exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk.
The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The board of Directors reviews and approves policies for managing these risks. The risks are goverened by appropriate
policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives.
MARKET RISK
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a
financial instruments. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments
affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Foreign Currency Risk
Foreign Currency risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s foreign currency
denominated borrowings, trade receivables and trade or other payables.
The Company has adopted a comprehensive risk management review system wherein it actively hedges its foreign exchange exposures
within defined parameters through use of hedging instruments such as forward contracts. The Company periodically reviews its risk
management initiatives and also takes experts advice on regular basis on hedging strategey.
Interest Rate Risk
The company’s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and
financial institutions. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk.
Other price risk
The Company’s equity exposure in Subsidiaries are carried at cost or deemed cost and these are subject to impairment testing as per
the policy followed in this respect. The company’s current investments which are fair valued through profit and loss are not material.
Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
CREDIT RISK
The credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a
credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The company periodically assesses the financial
reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual
risk limits are set accordingly and the company obtains necessary security including letter of credits and/or bank guarantee to mitigate.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents
the company’s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and
unrelated. Of the trade receivable balance at the end of the year (other than subsidiaries), there are no single customer accounted for
more than 10% of the accounts receivable and 10% of revenue as at March 31, 2025 and March 31, 2024.
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 a reasonable price. The
Company’s objective is to maintain optimum level of liquidity to meet it’s cash and collateral requirements at all times. The company’s
assets represented by financial instruments comprising of receivables are largely funded against borrowed funds. The company relies
on borrowings and internal accruals to meet its fund requirements. The current committed line of credit are sufficient to meet its short to
medium term fund requirement.
NOTE 39: LEASE
The Company has been alloted land at Falta SEZ on operating lease basis with continuity and yearly lease rent as to be decided by the
SEZ authority. Subject to this the Company holds certain low underlying value assets on lease basis and in line the exemption provided,
provisions relating to creation of ROU Asset & lease liability by Ind AS-116 is not considered. Instead the rent payment for such leases has
been recognized as expenses on staight-line basis. The Company has taken certain premises on lease for 3 years to 99 years. There are
no subleases. Lease rent obligation for the duration for the full duration of lease is disclosed as below:
Note 42 These Financial results have been prepared in accordance with the indian Accounting Standards (Ind-AS) notified under
Companies Indian Accounting Standards) Rules, 2016 as amended by Companies (Indian Accounting Standards) (Amended) Rules,
2016, prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the
extent applicable
NOTE 43: Figures for the previous periods are re-classified/re-arranged/re-grouped, whenever necessary.
NOTE 44: Bank returns/ Stock statements filled by the Company with its bankers are in agreement with books of account.
NOTE 45 There has no delay in Registration of charge or Satisfaction with ROC beyond the Statutory Period.
NOTE 46: During the year the Company has not entered in to any transactions with companies stuck off under the Companies
Act, 2013
NOTE 47: During the year there has been no trasnsaction 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
NOTE 48: There has been no revaluation of Property, Plant & Equipment or Intangible Assets during the FY 2024-25
NOTE 49: There has been no default in borrowings by the Company and has not been declared wilful defaulter by the bank or any
financial institutions.
NOTE 50: No Proceedings has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
NOTE 51: During the FY 2024-25 the company has not applied or approved any Scheme of Arrangements by the Competent Authority
in terms of Section 230 TO 237 OF THE Companies Act, 2013.
NOTE 52: The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial Year 2024-25
NOTE 53: Figures less than 50,000 have been shown actual, wherever statutorily required to be disclosed, as the figures have been
rounded off to the nearest Lakhs.
NOTE 54: The Board of Directors of the Company has recommended a dividend of H3/-per ordinary share of H10/- each for the
financial year ended 31st March, 2025 subject to approval of the members at the ensuing Annual General Meeting.
NOTE 55 These Financial Statements have been approved by Board of Directors of the Company on 19th May, 2025 for issue to the
shareholders for their adoption.
As per our report of even date
For S.K.Singhania & Co. For and on behalf of the Board
Chartered Accountants
Firm Reg. No.: 302206E
Sd/- Sd/-
CA Rajesh Singhania Ajay Kumar Mall Giriraj Mall
Partner Managing Director Director
Membership No. : 052722 [DIN:00470184] [DIN: 01043022]
Sd/- Sd/-
Shyam Sundar Agrawal Gaurav Raj
Date: 19th May, 2025 Chief Financial Officer Company Secretary
Place: Kolkata (ACS:71866)
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