13. Provisions, Contingent Liabilities and ContingentAssets :
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of
obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the
Balance Sheet date.
Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of
resources embodying economic benefit is remote.
Contingent assets are neither disclosed nor recognised.
Provisions, Contingent Liabilities and ContingentAssets are reviewed at each Balance Sheet Date.
14. Taxes on Income :
Income Tax Expense Comprises of Current Tax and Deferred Tax.
(i) Current Taxes :
Current Tax is recognised in the Statement of Profit and Loss except to the extent it relates to an item which is recognised
directly in equity or in other comprehensive income. Current tax is the expected tax payable/ receivable on the taxable
income/loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of
previous years, income/ expenses and penalties, ifany, related to income tax are included in current tax expense.
(ii) Deferred Taxes :
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.
A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax
assets are recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
15. Revenue Recognition :
(i) Sale of Products :
The Company earns revenue primarily from sale of Products. As per Ind AS 115 Revenues are recognised when the
company satisfies the performance obligation by transferring a product to the customer. A product is transferred when the
customer contains control of that product, which is at the point of transfer of custody to customers where usually the title
is passed, provided that the contract price is fixed or determinable and collectability of the receivable is reasonably
assured.
Revenue is measured at the transaction price of the consideration received or receivable and represents amounts
receivable for goods provided in the normal course of business, net of discounts, taking into account contractually defined
terms of payment and excluding taxes or duties collected on behalf of the government. Any retrospective revision in
prices is accounted for in the year of such revision.
(ii) Interest Income :
Interest income is recognised on time proportion basis.
(iii) Other Income :
(a) Dividend on Investments is accounted when received.
(b) Insurance claim receivable is recognised in the year of the loss, to the extent ascertainable.
(c) Any Other Income is recognised in the Statement of Profit and Loss Account as and when accrued.
(d) In cases where duty paid material are consumed prior to duty free import of material for manufacture of products for
export, the estimated excess cost of such material over that of duty free material, is carried forward and charged to
revenue on consumption of such duty free materials.
16. Expenditure:
Expenditure are generally accounted on accrual basis as they are earned or incurred, except those with significant
uncertainties.
17. Employee Benefits :
Defined Contribution Plans
Contributions to defined contribution schemes such as provident fund, etc. are charged as an expense based on the amount of
contribution required to be made as and when services are rendered by the employees. The above benefits are classified as
Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.
Defined benefit plans
Defined Benefit plans comprising of gratuity are recognized based on the present value of defined benefit obligation which is
computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting
period.
Net interest on the net defined liability is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset and is recognised in the statement of profit and loss.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (excluding net interest as
defined above) and the return on plan assets (excluding net interest as defined above), are recognized in other comprehensive
income in the period in which they occur. Remeasurements are not reclassified to profit and loss in subsequent periods.
The Company contributes all ascertained liabilities with respect to gratuityto Life Insurance Corporation of India (LIC).
The retirement benefit obligation recognised in the Financial Statements represents the actual deficit or surplus in the
Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic
benefits available in the form of reductions in future contributions to the plans.
In respect of certain employees who are unfunded through the approved trust, the gratuity liability is provided as per the
actuarial valuation.
Gain or loss on account of actuarial valuation is routed through other comprehensive income.
Short-term employee benefits
Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised,
undiscounted, during the period the employee renders services. These benefits include salary, wages, bonus, performance
incentives etc.
Other long-term employee benefits
Other long-term employee benefit comprises of leave encashment towards un-availed leave and compensated absences;
these are recognized based on the present value of defined obligation which is computed using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted as current
employee cost. The monetary value of leave encashment benefit is for the Factory Workers and is accounted on the basis of
acturial valuation.
The employees, other than factory workers are not permitted to carry forward their leaves beyond a period of one year and
hence the liability if any arising on such employees would be of short term nature and shall be accounted on actual basis as
and when paid.
18. EarningsPer Share:
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average
number of equity shares considered for deriving the basic earnings per share and the weighted average number of equity
shares that could have been issued upon conversion of all dilutive potential equity shares.
19. Leases :
At the commencement date of a lease, the company will recognise a liability to make lease payments (i.e., the lease liability)
and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). It will
separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. As per
the provisions of Ind AS 116, the company does not recognise the Lease Liability and right to use of underlying assets for the
Leases which are for period of less than 12 months or are for 'lowvalue' assets.
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards
incidental to the ownership of an asset to the Company. All other leases are classified as operating leases.
Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged to the Statement of Profit and loss
Operating lease payments are recognized as prepayments and amortized on a straight-line basis over the term of the lease.
Contingent rentals, if any, arising under operating leases are recognized as an expense in the period in which they are
incurred.
20. Foreign Currency Transactions :
The financial statements are presented in Indian Rupees, the functional currency of the Company. Items included in the
financial statements of the Company are recorded using the currency of the primary economic environment in which the
Company operates (the ‘functional currency').
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and
liabilities at the reporting date exchange rates are recognised in the Statement of Profit and Loss.
Premium or discount on Foreign Exchange Forward Contracts are charged to the Profit and LossAccount alongwith gain / loss
on forward cover contract.
21. Derivative Instruments and Hedge Accounting :
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re¬
measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being hedged.
The Company designates certain derivatives as either:
(a) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or
(b) hedges of a particular risk associated with a recognised asset or liability or a highly probable forecast transaction (cash
flow hedge).
The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items,
as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also
documents the nature of the risk being hedged and how the Company will assess whether the hedging relationship meets the
hedge effectiveness requirements (including its analysis of the sources of hedge ineffectiveness and how it determines the
hedge ratio).
The full fair value of a hedging derivative is classi fied as a non-current asset or liability when the residual maturity of the
derivative is more than 12 months and as a current asset or liability when the residual maturity of the derivative is less than 12
months.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the statement of
profit and loss, together with any changes in the fair value of the hedged item that are attributable to the hedged risk
Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires
or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the
carrying amount of the hedged item arising from the hedged risk is amortised to the statement of pro fit and loss from that date.
22. Cash Flow Statement :
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing
activities.
15 days salary for each completed year of service. Vesting period is 5 years and the payment is at actual on
superannuation, resignation, termination, disablement or on death. The liability for gratuity as above is
recognised on the basis of actuarial valuation.
The Company makes contribution to LIC for gratuity benefits according to the Payment of GratuityAct, 1972.
The Company recognizes the liability towards the gratuity at each Balance Sheet date.
The most recent actuarial valuation of the defined benefit obligation for gratuity was carried out at March 31,
2025 by an actuary. The present value of the defined benefit obligations and the related current service cost and
past service cost, were measured using the Projected Unit Credit Method, which recognises each period of
service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the
final obligation. Scheme is funded through LIC.
These plans typically expose the Company to actuarial risks such as: Investment risk, Mortality risk,
Concentration risk, Salary risk and Asset Liability Matching risk.
C. NOTES TO ACCOUNTS (Contd.)
(xv) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
CompaniesAct, 2013.
(xvi) (A) 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:
(a) 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) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(xvi) (B) 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 shall:
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(xvii) The company has no such transaction which is 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 (such as, search or survey or
any other relevant provisions of the Income TaxAct, 1961).
(xviii) The company has not traded or invested in Crypto currency or Virtual Currency during the year.
12. Figures in brackets pertain to the previous year.
13. Previous year figures have been reclassified / regrouped / reworked, wherever necessary.
As per our report of even date. For and on behalf of the Board
ShalinS.Divatia MilanM.Mehta DeepakM.Mehta
CharteredAccountant ChairmanandManagingDirector ViceChairman&Whole-Time Director
Membership No. 039755 (DIN : 00003624) (DIN : 00003646)
Partner-S.R. Divatia&Co.,
FirmReg.No.:102646W MohandasPai DeepikaPandey
UDIN:25039755BMLZFX8021 ChiefFinancialOfficer CompanySecretary
Mumbai, 17h May,2025 Mumbai,17th May,2025
|