(b) Terms/ rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. 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, in proportion to their share holding. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.
Note No.
13.1 Capital Reserve
The Company pursuant to the scheme of amalgamation acquired Associated Polymers Ltd (100% Subsidiary) with effect from 1st April 2012 .
As per the accounting treatment of the scheme of amalgamation approved by the Jurisdictional High Court ,Mumbai the differential amount between the carrying value of investments and net assets acquired from the transferor companies has been accounted as Capital reserve.
13.2 General Reserve
General reserve represents the statutory reserve, this is in accordance with Indian Corporate Law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer the amount before a company can declare dividend. However under Companies Act , 2013, transfer of any amount to general reserve is at the discretion of the Company.
13.3 Retained Earnings
Retained earnings represents undistributed profits of the Company which can be distributed to its equity shareholders in accordance with the requirement of the Companies Act, 2013.
13.4 Other Comprehensive Income
Remeasurement of the defined benefit liability/ (asset) comprises actuarial gain and losses and return on plan assets.
The company closed its ABU division in the year 2016 and erstwhile employee of the company filed the case against the company for wrongful dismissal and demanded reinstatement with back wages. In the financial year 2019-20, Company has made the provision of Rs. 175.58 Lakhs as per order received from 2nd Labour court, Pune, subsequently the company filed a writ petition before Hon’ble Mumbai High Court for stay on the order of the 2nd Labour Court, Pune. In the financial year 2021-22, based on order of Hon’ble Mumbai High Court, the company paid the back wages of Rs. 64.20 Lakhs from the date of dismissal up to the date of closure of ABU division, i.e., Aug 2016 and same were booked as expense in the financial statement. During financial year 2024-25 , Industrial Pune court issued a interim order Dt. 24th Sep 2024 and instruct deposit the wages in court as a protest money for the period Aug 2016 to Aug 2020. We have deposited 37.74 Lakhs in court on 28th November ’2024 .The case is sub-judice and management is of the view that the balance provision of Rs. 137.84 lakhs as carrying in the financials is sufficient for any future liability which may arise on the company.
A) Nature of goods and services
The following is a description of principal activities separated by reportable segments from which the Company generates its revenue :
The Company is primarily engaged in the manufacturing/ assembling of fluid power and automation products and generates revenue from the sale of these products and the same is only the reportable segment of the Company.
B) Disaggregation of revenue
In the following table, revenue is disaggregated by primary geographical market, major product lines and timing of revenue recognition:
Basic and Diluted Earnings per share :
The company reports basic and diluted earnings per equity share in Accordance with Indian Accounting Standard '33', 'Earnings per share'. Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity share outstanding during the year. There is no diluted earning per share as there are no dilutive potential equity shares.
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33 Contingent Liabilities
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Particulars
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As At
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As At
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March 31, 2025
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March 31, 2024
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(a)
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Claims against the company not acknowledged as debt Income Tax (Deposited Rs. Nil Lakhs; Previous year Rs. Nil Lakhs ) (Gross)
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"Excise Duty (Deposited Rs. Nil Lakhs; Previous year Rs. Nil Lakhs ) (Gross)*
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28.50
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28.50
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Service Tax (Deposited Rs. 0.51 Lakhs; Previous year Rs. 0.51 Lakhs ) (Gross)
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15.43
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15.43
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Goods and Service Tax (Deposited Rs. 0.27 Lakhs; Previous year Rs. 0.27 Lakhs ) (Gross)
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5.50
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5.50
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"Other matters, MIDC issued notice dated 23rd of Oct 2020, directing company to deposit differential amount for affecting change of name of the company in MIDC records under the reason that change in the share holding pattern of the company. (Deposited Rs. Nil Lakhs; Previous year Rs. Nil Lakhs ) (Gross)**
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53.94
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(b)
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Bank Guarantees given to various Govt authorities/ others (Gross)
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128.81
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49.61
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(c)
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Statutory bonus liabilities pursuant to the retrospective amendment in the Bonus Act, 1965 for financial year 2014-15 has not been provided considering stay orders of Hon'ble Kerala High Court & Karnataka High Court.
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30.36
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30.36
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The Company is hopeful of favourable decision and expect no outflow of resources, hence no provision is made in the books of account.
*The excise order was subsequently received in our favour of Rs 27.40 Lakh (Previous year Rs 27.40 Lakh) dated 3rd
April 2025. from Customs Excise & service tax appellate tribunal
**Company has made the provision in books as on 31.03.2025 .Refer Note No. 17 ( iv)
1 Gratuity
Employee Benefits
As per Ind AS 19 Employee Benefits, the Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.
(a) Defined Contribution Plans
Amount recognized as an expense and included “Contribution to Provident and Other Funds" Rs 84.14 Lakhs (Previous year Rs 75.06 Lakhs).
(b) Gratuity
Amount recognized as an expense and included in Note No. 25 Item “Gratuity" Rs. 31.97 Lakhs (Previous year Rs. 25.80 Lakhs) includes Rs. 29.44 Lakhs (Previous year Rs. 23.28 Lakhs) on account of Actuarial valuation.
2 Long Term Compensatory Absences (a) Other Long-Term Benefits
Amount recognized as an expense and included in Note No. 25 Item “Long Term Compensated Absences" Rs. 32.28 Lakhs (Previous year Rs. 30.95 Lakhs) includes Rs. 32.28 Lakhs (Previous year Rs. 30.95 Lakhs ) on account of Actuarial valuation .
Note 36
Capital Management
The Company’s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term.
37 Disclosure on Financial Instruments
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard
Financial instruments - Fair values and risk management Accounting classification and fair value
The following table shows the carrying amount and fair value of financial assets and financial liabilities:
The fair value of cash and cash equivalents, other bank balances, trade receivables, short term loans, current financial assets, trade payables, current financial liabilities and borrowings at their carrying amount.
Fair value hierarchy
The table shown above analysis financial instruments carried at fair value, by valuation method. The different levels have been defined below:
Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.
38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk factors
The Company’s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange rate risk.
Credit risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company. The company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
(a) Trade receivables:
Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and major customers are generally secured by obtaining security deposits/bank guarantee or other forms of credit insurance.
The Company determines its liquidity requirement in the short term and long term. The Company manage its liquidity risk in a manner so as to meet its financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.
(i) Currency Risk
The Company Exposed to currency risks to the extent that there is mismatch between the currencies in which sales , purchase and borrowings are denominate in respective functional currency of the company. The company is not exposed to significant currency risks as majority of the transactions are primarily denominated in Indian Rupees, which is the nation currency of the India.
(ii) Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate because of changes in market interest rates.
The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. Such interest rate risk is actively evaluated and is managed through portfolio diversification and exercise of prepayment/refinancing options where considered necessary.
The Company is also exposed to interest rate risk on surplus funds parked in fixed deposits . To manage such risks, such investments are done mainly for short durations, in line with the expected business requirements for such funds.
(a) Exposure to interest rate risk
111 Net Profit after taxes Non- cash operating expenses Interest other adjustments like loss on sale of Fixed assets etc.
(2) Current maturities of Vehicle Loans Current maturities of lease Loan repayable on demand Interest etc.
131 Total Equity -Capital Reserve Other Comprehensive Income etc .
141 Tangible Net Worth Borrowing etc .
*Debt-Equity Ratio has been Increased owing to increased Kotak bank Cash Credit (Borrowing) balance has been increased from 52.10 Lacs in FY 23-24 to 102.97 Lacs in FY 24-25.
**Debt Service Coverage Ratio has been decreased owing to increased Kotak bank Cash Credit (Borrowing) balance has been increased from 52.10 Lacs in FY 23-24 to 102.97 Lacs in FY 24-25.
***Return on Equity Ratio has been computed as Profit After Tax divided by Average Shareholder's Equity. Profit has decreased from Rs 687.38 Lakhs to Rs 521.07 Lakhs owing to Decreases turnover/margin and thus impacting ROE.
""Inventory turnover ratio has been computed as Cost of goods sold divided by Average stock. Inventory turnover ratio has increased
3.04 to 3.87 owning to Increases in turnover.
*""Trade Receivable Turnover ratio has been computed as Revenue divided by Average Trade Receivable. Trade Receivable Ratio has decreased 9.50 to 12.67 owning to Increased in turnover from 6510.16 Lacs to 8471.35 Lacs.
"""Trade Payables Turnover ratio has been computed as Purchase Expenses divided by Average Trade Payables. Trade Payables Ratio has Increased 4.90 to 8.00 owning to Increased Purchase of material From 3286.91 Lacs to 5015.61 Lacs.
*””"Net Capital Turnover ratio has been computed as Revenue divided by Working Capital. Net Capital Turnover Ratio has Increased 1.71 to 2.08 owning to Increases in Turnover From 6510.16 Lacs to 8471.35 Lacs and Decreases in Trade Receivables From 775.11 Lacs to 562.52 Lacs and thus impacting net capital turnover ratio.
******** Net Profit ratio is computed as Net Profit divided by Total Sales. Profit has decreased from Rs 687.38 Lacs to Rs 521.07 lacs Despite of Sales has Increased. thus impacting net profit ratio.
******** Return on capital employed is computed as Earning before interest and taxes by Total capital employed. This ratio is Decrease on account of Decrease in earnings.
********* Return on investment is computed as net return on investment by cost on investment This ratio is decreased on account of decrease the net return on investment.
42 Other Notes
42.1 Disclosure under Ind AS 108 - ‘Operating Segments’ is not given as in the opinion of the Chief Operating Decision Maker, The company's business activity falls within a single primary business segment viz "General Engineering Products" .
42.2 Company is not having any transaction with the Companies struck off Under Section 248 of the companies Act, 2013 in the current year and in previous years.
42.3 Monthly statements/returns filled by the company with banks or financial institutions are in agreement with books of accounts .
42.4 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year and in previous years.
42.5 The company has not recorded any transactions in the books of accounts during the Year ended, 31st March 2025 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
42.6 The company is not declared wilful defaulter by any bank or financial institution or any lender during the year and in preceding previous years.
42.7 Company does not hold any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) in the current period and in previous years.
42.8 The company has included interest amount in contingent liability up to the date of notice from relevant authorities. (Note No. 33)
Note 43
In the Opinion of the management and to the best of its knowledge and belief, the value on realization of current assets, loans, advances and payment of current liabilities and provisions in the ordinary course of business would not be less/ more, than the amount at which they are stated in the Balance sheet.
Note 44
Events occurring After the Balance Sheet date
No adjusting or significant non adjusting events have occurred between the reporting date and date of authorization of financial statements.
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