L. PROVISIONS
Provision is recognized when an enterprise has a present obligation as a result of past events and it is payable that outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at the balance sheet date and adjusted to reflect the current management estimate.
M. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENTS
The carrying value of assets of the Company’s cash generating units are reviewed for impairment annually or more often if there is an indication of decline in value based on internal/external factors. If any indication of such impairment exists, the recoverable amounts of those assets are estimated and impairment loss is recognized, if the carrying amount of those assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the estimated future cash flows to their present value based on appropriate discount factor.
Net selling price is the estimate selling price in the ordinary course of business less estimated cost of completion and to make the sales.
N. FOREIGN CURRENCY TRANSACTION
Transactions in foreign currency are recorded at the rates of exchange in force at the time the transactions are effected. At the year-end, monetary items denominated in foreign currency and forward exchange contracts are reported using closing rates of exchange.
Exchange difference arising thereon and on realization / payment of foreign exchange are accounted, in the relevant year, as income or expense.
O. BORROWING COST
Borrowing costs that are attributable to acquisition, construction or production of qualifying assets, are capitalized as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for intended use. All other borrowing costs are charges to the statement of Profit and Loss.
P. PRIOR PERIOD ITEMS, EXCEPTIONAL AND EXTRAORDINARY ITEMS
The Company follows the practice of making adjustments through ‘prior year adjustments’ in respect of all material transactions pertaining to the period prior to the current accounting year. The prior period adjustment, if any, are shown by way of notes to financial statements
Q. CASH AND CASH EQUIVALENTS
In the cash flow statement, cash and cash equivalents include cash in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less.
R. CURRENT/ NON-CURRENT CLASSIFICATION
Any asset or liability is classified as current if it satisfies any of the following conditions:
• The asset/liability is expected to be realized/ settled in the company’s normal operating cycle,
• The asset/liability is expected to be realized/ settled within twelve months after the reporting period;
• The asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;
All other assets and liabilities are classified as noncurrent.
For the purpose of current/non-current classification of assets and liabilities, the company has ascertained its normal operating cycle as twelve months.
S. LEASES
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Operating lease payment are recognized as an expense in the Statement of Profit and Loss on a straightline basis over the lease term except where another systematic basis is more representative of time pattern in which economic benefits from the leased assets are consumed.
T. INVESTMENTS Current Investments:
These are carried at lower of cost and fair value, computed category-wise. Investments that are readily realizable and intended to be held for not more than 12 months from the date of acquisition are classified as current Investment.
Non-Current Investments:
These are stated at Cost. Provision for diminution in the value of Non-Current Investments is made only if such a decline is other than temporary.
U. EXPENDITURE
Expenditure debited to Statement of Profit & loss are accounted on the accrual basis.
V. GOVERNMENT GRANTS
Grants-in-aid received from the Central Government or other authorities towards capital expenditure as well as consumers’ contribution to capital works are treated initially as capital reserve and subsequently adjusted as income in the same proportion as the depreciation written off on the assets acquired out of the grants.
Where the ownership of the assets acquired out of the grant’s vests with the government, the grants are adjusted in the carrying cost of such assets.
Grants from Government and other agencies towards revenue expenditure are recognized over the period once the ascertainably is established regarding the receipt of the subsidy as well as the period in which they are received and are credited to Profit and Loss Account.
Refer Note (i)
(a) Term Loan from Kotak Mahindra Bank
* Primarily Secured by way of First and exclusive charge on all Existing and Future Current Assets, Movable Assets and Movable Fixed Assets of Borrower
* Working Capital term Loan by way of Guaranteed Emergency Credit Line under GECL under ECLGS scheme of National Credit Guarantee Trustee Company Limited( NCGTC) With Original Tenure of 48 Months Including 12 Months Moratorium Balance Tenure of18 Months- Maturity July 24.
* Collateral Security of Equitable Mortgage over following properties
1. Residential Property of Mr. Sanjay Sadavarte and Mrs.Priti Sadavarte situated at A/102, Vrandavan Palms, Arti nagari, Kalyan West, Maharashtra-421301
2. Industrial/ factory land & Building members located at Block no 39-P, Mouje- Khatraj, Nr. Khatraj Chokdi, Ta. Kalol Dist. Gandhinagar. Owned by M/s Swiss polyplast
3. Further, Mr. Punit Gopalka, Mr. Anup Gopalka, Mr Sanjay Sadavarte, Mrs Anupriya Gopalka, Mrs Preeti Sadavarte has given personal Guarantee as per the Sanction Letter and M/s Swiss Polyplast has given Corporate Guarantee as per the Sanction Letter.
b. Rate of Interest and Repayment Schedule
i. Repayable in 66 Equal monthly Principal repayment of Rs. 6,06,060/- and Interest at Repo Rate 3.50% p.a. i. Repayable in 36 Equal monthly installments of Rs. 2,44,424/- p.m. at interest rate of 8 % p.a. staring from 05.08.2020
* (Secured by way of Hypothecation of Vehicle under Hire Purchase Agreement)
* Repayable in 60 Equal monthly installments at MCLR 9.75% p.a. interest rate of Rs. 17,521/- p.m. starting from 01.06.2018
c. Vehicle Loans
- Bank of India: Primarily secured by way of Hypothication of Vehicle under Hire Purchase Agreement of Loan Aggregating to Rs 30,60,000/- at the Interest rate of 8.75% p.a. repayable in 84 EMI of Rs 48,846/- Starting from November 2023.
- State Bank of India: Primarily secured by way of Hypothication of Vehicle under Hire Purchase Agreement of Loan Aggregating to Rs 19,50,000/- at the Interest rate of 8.55% p.a. repayable in 84 EMI of Rs 31,374/- Starting from October 2023.
28. Previous year's figures have been rearranged / regrouped wherever necessary to make them comparable with the figures of current year.
29. The Balance of current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business and that the provisions for
depreciation and all known and ascertained liabilities are adequate and not in excess of the amount reasonably necessary.
30. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation from respective parties.
31. The company has received information from the Suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to amounts unpaid as at the balance sheet date together with interest paid or payable as per the requirement under the said Act, have been made in the financial statements.
34. As per the information’s given by the board of directors, the Company has only one reportable business segment. And hence segment wise information is not given.
35. There is Contingent Liability of Rs. 37,66,295/- (P.Y NIL/-) on account of Excess Claim of Input Tax Credit, Under declaration of Ineligible Input Tax Credit and Input Tax Credit claimed from cancelled dealers, return defaulters & tax non payers in GST Law.
36. The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
37. All the figures in Financial Statements are presented in Indian Rupees rounded off to nearest thousands except for Earnings Per Share.
38. There is change in company status from Private Limited company to Limited Company which is effective from 09th March, 2024.
39. Company has issued 36,90,176 Bonus shares on 01st March 2024 by utilizing Security Premium and General Reserves of the Company.
40. The Company has Initiated process of getting itself listed with Nation Stock Exchange by filing Draft Red Hering Prospectus and the Company has Received In principal
42. Accounting Ratios have been annexed as Annexure-B to the Financial Statements.
- : As per our report of even date attached:-: Signatories to Notes 1 to 42:-
For A. D PARIKH & ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants
CA ANKIT PARIKH Proprietor
SANJAY SADAVARTE PUNIT GOPALKA Membership No. : 122482 Director Director
Firm Registration No. 127669W DIN : 07548346 DIN : 02892589
Place : AHMEDABAD Date: 20/07/2024 UDIN: 24122482BKGYGS9560
Mitesh Asava Kinjal Sangani
CFO Company Secretary
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