2.11. Provisions, contingent liabilities and contingent assets
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of 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 obligation. If the effect of the time value of money
is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. Where discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent Assets are not recognised in the financial statements.
2.12. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset
are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing costs also include exchange differences to the extent regarded as an adjustment to the borrowing
costs.
A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended
use or sale. All other borrowing costs are recognized as expense in the period in which they are incurred.
2.13. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of when the payment is being made. 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.
Revenue is recognised only if the following condition are satisfied:
• The Company has transferred risks and rewards incidental to ownership to the customer;
• The Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold or services rendered;
• It is probable that the economic benefit associated with the transaction will flow to the Company; and
• It can be reliably measured and it is reasonable to expect ultimate collection
Revenue from operations includes sale of goods and services measured at the fair value of the consideration
received or receivable, net of returns and allowances, trade discounts and volume rebates and excluding
taxes or duties collected on behalf of the government.
Sale of services includes revenue from Warehouse rental. Revenue is net of returns, GST, sales tax, service
tax, rebates and other similar allowances.
Dividend
Dividend income is recognised when the Company's right to receive the payment is established, which is
generally when shareholders approve the dividend.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset's net
carrying amount on initial recognition.
2.14. Employee benefits
Short-term employee benefits are recognized as an expense in the statement of profit and loss for the year in
which the related services are rendered.
The cost of providing gratuity, a defined benefit plan, is determined using the Projected Unit Credit Method,
based on actuarial valuations carried out by third party actuaries at each Balance Sheet date. Actuarial gains
and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited
to other comprehensive income in the period in which they arise. Other costs are accounted in the statement of
profit and loss. Remeasurements of defined benefit plan in respect of post-employment and other long-term
benefits are charged to the other comprehensive income in the year in which they occur. Remeasurements are
not reclassified to statement of profit and loss in subsequent periods.
2.15. Income tax
Current Income Tax
Income tax expense consists of current and deferred tax. Income tax expense is recognised in profit or loss
except to the extent that it relates to items recognised in OCI or directly in equity, in which case it is recognised in
OCI or directly in equity respectively. Current tax is the expected tax payable on the taxable profit for the year,
using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax
payable in respect of previous years. Current tax assets and tax liabilities are offset where the Company has a
legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Deferred Tax
Deferred tax is recognised 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 is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off corresponding current
tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority on the Company.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Withholding
tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not
considered as tax expense for the Company and all such taxes are recognised in the statement of changes in
equity as part of the associated dividend payment.
2.16. Earnings per share
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit
or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the
effects of all dilutive potential ordinary shares,
2.17. Public Deposit:
The Company has not accepted any deposits from public within the meaning of sections 73 to 76 of the
Companies Act 2013 and Rules framed there under.
29. Amounts payable to micro, small and medium enterprises:-
The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008
which recommends that the Micro and Small Enterprises should mention in their correspondence with its
customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. Accordingly, the
disclosure in respect of the amounts payable to such enterprises as at 31st March 2025 has been made in the
financial statements based on information received and available with the Company. Further, in the view of the
management, the impact of interest, if any, that maybe payable in accordance with the provisions of the Micro,
Small and Medium Enterprises Development Act, 2006 ("the MSMED Act") is not expected to be material. The
Company has not received any claim for interest from any supplier under the said Act.
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other
current liabilities, short term loans from banks and other financial institutions approximate their carrying
amounts largely due to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.
The fair values for loans and security deposits were calculated based on cash flows discounted using a
current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion
of unobservable inputs including counter party credit risk.
The fair values of non-current borrowings are based on discounted cash flows using a current borrowing
rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable
inputs, including own credit risk.
For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the
fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company’s risk management assessment and policies and processes are established to identify and
analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and
compliance with the same. Risk assessment and management policies and processes are reviewed regularly to
reflect changes in market conditions and the Company’s activities.
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, and arises principally from the Company’s receivables from customers, loans
and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course
of business.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with
counterparties that have a good credit rating. The Company does not expect any losses from non-performance
by these counter-parties, and does not have any significant concentration of exposures to specific industry
sectors or specific country risks.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses
or risk to the Company’s reputation.
Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity
prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates
and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency
receivables and payables and all short term and long-term debt. The Company is exposed to market risk
primarily related to commodity prices and the market value of its investments.
Interest rate risk
The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in
interest rates. The Company's Treasury Department monitors the interest rate movement and manages the
interest rate risk by evaluating interest rate swaps etc. based on the market / risk perception.
The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as
presented on the face of the financial statements. The Company's objective for capital management is to
maintain an optimum overall financial structure.
34 Contingent liabilities and capital commitments (to the extent not provided for)
There are no outstanding capital commitments as on March 31,2025 (Previous year Nil).
There are no contingent liablities not provided for as on March 31,2025 (Previous year Nil).
35 There is no Immovable property whose title deed is not held in the name of the company.
36 The company has not traded or invested in cryptocurrency or virtual currency during the reporting period.
37 There are no proceedings initiated or pending against the company for holding any benami property under the
Benami T ransactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
38 The company has not entered into any transactions with companies which are Struck-off under section 248 of
the companies Act, 2013.
39 The company has neither advanced, loaned or invested funds nor received any fund to/from any person or
entity for lending or investing or providing guarantee to/on behalf of the ultimate beneficiary during the reporting
periods
40 In the opinion of the Board of Directors, Current Assets, loans & advances have the value at least equal to the
value at which they are stated in the Balance Sheet if realized, in the ordinary course of business.
41 The company has not been declared as a willful defaulter by any bank or Financial Institutions or consortium
thereof in accordance with the guidelines on willful defaulters issued by RBI.
42 Utilisation of Borrowed funds or share premium
(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) 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)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shaill:
(i) 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
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
43 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules
2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use
only such accounting software which has a feature of recording audit trail of each and every transaction,
creating an edit log of each change made in the books of accounts along with the date when such changes
were made and ensuring that the audit trail cannot be disabled.
The Company uses the ERP based accounting software for maintaining books of account. During the year
ended March 31,2025, the Company had complied with the above provisions.
44 The Company is in compliance with number of layers of companies, as prescribed under clause (87) of
Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
45 Previous Years figures have been re-grouped and re-arranged, wherever considered necessary.
As per our Report of even date For and on behalf of the Board of Directors
Sd/- Sd/-
For Ramesh M Sheth and Associates Bhavik Rashmi Bhimjyani Asha Yogesh Dawda
Chartered Accountants Chairman & Managing Director Director
ICAI Firm Registration No. 111883W DIN: 00160121 DIN: 06897196
Sd/- Sd/- S d /-
Mehul R. Sheth Sony Pavanan Pankaj Kamble
Partner Company Secretary Chief Financial Officer
Membership No 101598 Membership N°. A71657
Place: Mumbai Place: Mumbai
Date: May 17, 2024 Date: May 17, 2024
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