(H) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of
a 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 the obligation. When the Company
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of Profit and Loss net of any reimbursement.
Provisions are not discounted to their present value and are determined based on the best estimate required
to settle the obligation at the reporting date. These estimates are reviewed at each reporting date
and adjusted to reflect the best estimate.
Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control
of the Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases,
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements unless the
probability of outflow of resources is remote.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet
date.
(I) Employee Benefits
• Short term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognized in respect of employee's service up to the end of reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee
benefit obligation in the balance sheet.
• Other Long-term employee benefit obligations:
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured based on the actuarial
valuation using projected unit credit method at the year end. The benefits are discounted using the market
yields at the end of the reporting period that have terms approximating to the term of the related
obligation. Re-measurements as a result of experience adjustments and changes in actuarial assumptions
are recognized in profit or loss.
Gratuity Obligations:
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each financial year.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined benefit liability), are recognized immediately in the
Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which
they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit (liabilities/assets).The
Company recognized the following changes in the net defined benefit obligation under employee benefit
expenses in statement of profit and loss
• Service cost comprising current service cost, past service cost, gain & loss on curtailments and non-routine
settlements.
• Net interest expenses or income.
(J) Revenue Recognition:
Revenue from sale of goods is recognized when control of the products being sold is transferred to our
customer and when there are no longer any unfulfilled obligations. The- Performance Obligations in our
contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on
customer terms.
Revenue is measured on the basis of contracted price, after deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the Government such as goods and services tax, etc.
Accumulated experience is used to estimate the provision for such discounts and rebates. Revenue is only
recognized to the extent that it is highly probable a significant reversal will not occur.
Our customers have the contractual right to return goods only when authorised by the Company. An estimate
is made of goods that will be returned and a liability is recognised for this amount using a best estimate
based on accumulated experience.
Income from services rendered is recognised based on agreements/arrangements with the customers
as the service is performed and there are no unfulfilled obligations. Interest income is recognised using the
effective interest rate (EIR) method.
(K) Leases
Company, as a lessee
The Company as a lessee, recognizes a right-of-use asset and a lease liability for its leasing arrangements
(if any) , if the contract conveys the right to control the use of an identified asset. The contract conveys the
right to control the use of an identified asset, if it involves the use of an identified asset and the Company
has substantially all of the economic benefits from use of the asset and has right to direct the use of the
identified asset.
The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the
lease liability adjusted for any lease payments made at or before the commencement date plus any initial
direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the
lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the
Company uses incremental borrowing rate.
For short-term and low value leases, the Company recognises the lease payments as an operating expense
on a straight-line basis over the lease term.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease(if any). Whenever the
terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is
classified as a finance lease. All other leases are classified as operating
leases. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the
sublease separately.
The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the
head lease. For operating leases, rental income is recognized on a straight line basis over the term of the
relevant lease.
(L) Fair Value Measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance
sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
i. In the principal market for the asset or liability, or
ii. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
date are available to measure fair value, maximizing the use of relevant observable inputs and minimizing
the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
a. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
b. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
c. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting period.
The Company's management determines the policies and procedures for both recurring and non¬
recurring fair value measurement, such as derivative instruments measured at fair value.
External valuers are involved for valuation of significant assets, such as properties and financial
assets and significant liabilities. Involvement of external valuers is decided upon annually by the
management. The management decided, after discussions with the Company's external valuers
which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities which
are required to be re-measured or re-assessed as per the Company's accounting policies.
The management in conjunction with the Company's external valuers, also compares the change in the fair
value of each asset and liability with relevant external sources to determine whether the change is
reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above
(M) Significant accounting judgments, estimates and assumptions
The preparation of the Company's financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of the asset or liability affected in future periods.
Judgments
In the process of applying the Company's accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial statements.
Operating lease commitments - Company as lessee
The Company has taken various properties on leases. The Company has determined, based on an evaluation
of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion
of the economic life of the commercial property, and that it does not retain all the significant risks and
rewards of ownership of these properties and accounts for the contracts as operating leases.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
a. Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and
the amount and timing of future taxable income. Given the wide range of business relationships and the
long-term nature and complexity of existing contractual agreements, differences arising between the actual
results and the assumptions made, or future changes to such assumptions, could necessitate future
adjustments to tax income and expense already recorded. The Company establishes provisions, based
on reasonable estimates. The amount of such provisions is based on various factors, such as experience
of previous tax audits and differing interpretations of tax regulations by the taxable entity and the
responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending
on the conditions prevailing in the respective domicile of the companies.
b. Defined benefit plans
The cost of defined benefit plans (i.e. Gratuity benefit) is determined using actuarial valuations. An actuarial
valuation involves making various assumptions which may difer from actual developments in the
future. These include the determination of the discount rate, future salary increases, mortality rates and
future pension increases. Due to the complexity of the valuation, the underlying assumptions and its
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date. In determining the appropriate discount rate,
management considers the interest rates of long-term government bonds with extrapolated maturity
corresponding to the expected duration of the defined benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Future
salary increases and pension increases are based on expected future inflation rates.
c. Fair value measurement of financial instrument
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable
markets where possible, but where this .is not feasible, a degree of judgment is required in establishing fair
values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the reported fair value of financial instruments.
(N) Borrowing Costs
Borrowing cost includes interest expense as per effective interest rate [EIR]. Borrowing costs directly
attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset until
such time that the asset are substantially ready for their intended use. Where funds are borrowed specifically
to finance a project, the amount capitalized represents the actual borrowing incurred. Where surplus funds
are available out of money borrowed specifically to finance project, the income generated from such current
investments is deducted from the total capitalized borrowing cost. Where funds used to finance a project
form part of general borrowings, the amount capitalized is calculated using a weighted average of rate
applicable to relevant general borrowing of the Company during the year. Capitalization of borrowing cost
is suspended and charged to profit and loss during the extended periods when the active development
on the qualifying project is interrupted. All other borrowing costs are expensed in the period in which
they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to the borrowing costs.
(O) Impairment of Non-Financial Assets:
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired(if any). If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the assets recoverable amount. An asset's recoverable amount is the higher of an asset's
or cash-generating units (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value
indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to which the individual assets are allocated. These
budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future cash flows after the fifth year. To estimate cash
flow projections beyond periods covered by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent
years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term
average growth rate for the products, industries, or country or countries in which the entity operates, or for
the market in which the asset is used.
Impairment losses of operations, including impairment on inventories, are recognized in the statement
of profit and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For
such properties, the impairment is recognized in OCI up to the amount of any previous revaluation surplus.
After impairment depreciation is provided on the revised carrying amount of the asset over its
remaining economic life.
An assessment is made in respect of assets at each reporting date to determine whether there is an indication
that previously recognized impairment losses no longer exist or have decreased. If such indication exists,
the Company estimates the asset's or CGU's recoverable amount. A previously recognized impairment loss
is reversed only if there has been a change in the assumptions used to determine the asset's recoverable
amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount
of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such
reversal is recognized in the statement of profit or loss unless the asset is carried at a revalued amount, in
which case, the reversal is treated as a revaluation increase.
(P) Government Grants:
Government grants (if any) are recognized where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to an expense item, it is
recognized as income on a systematic basis over the periods that the related costs, for which it is intended
to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal
amounts over the expected useful e of the related asset. However, if any export obligation is attached to
the grant related to an asset, it is recognized as income on the basis of accomplishment of the export
obligation.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected useful life in a pattern of consumption of the
benefit of the underlying asset i.e. by equal annual installments.
(Q) Earnings per share:
Basic and diluted earnings per Equity Share are computed in accordance with Indian Accounting Standard
33 'Earnings per Share', notified accounting standard by the Companies (Indian Accounting
Standards) Rules of 2015 (as amended). Basic earnings per share is calculated by
dividing the net profit or loss attributable to equity holder of Company (after deducting preference
dividends and attributable taxes, if any) by the weighted average number of equity shares
outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a fully paid equity share during the
reporting period. The weighted average number of equity shares outstanding during the period is adjusted
for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period, attributable to
equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.
37. The inventories are taken as per records duly certified by the Company. The same have been valued in
accordance with Accounting Policies.
38. Segmental Reporting :
The Company is a Manufacturing & trading company. The Company is managed organizationally as a unified
entity with various functional heads reporting to the top management and is not organized along product lines.
There are therefore, no separate segments within the company as defined by AS-17 (Segmental Reporting)
issued by ICAI.
39. As per the information available with the Company in response to the enquiries from existing suppliers with
whom Company deals, none of the suppliers are registered with The Micro, Small and Medium Enterprises
Development Act, 2006.
42. The GST Returns filed monthly by the Company are subject to reconciliation and the differences, if any, with
the Books of Accounts, will be dealt with at the time of filing of Annual Return in Form GSTR9 and GSTR9C
by the company. GSTR9 & 9C has not been filed by the company from F/Y 2020-21 to F/Y 2022-2023
43. Tax Expense is the aggregate of current year income tax and deferred tax charged to the Profit and Loss
Account for the year.
Current Year Charges
No provision for Income tax has been made during the current financial year.
Deferred Tax Liability/Asset
The Company estimates the deferred tax charge using the applicable rate of taxation based on the impact
of timing differences between financial statements and estimated taxable income for the current year.
However, Deferred tax asset has not been recognized in terms of Ind AS 12 issued by ICAI by adopting the
conservative approach in respect of ascertained profitability in the future years.
44. Related Party Disclosures:
In accordance with the Accounting Standards (Ind AS-24) on Related Party Disclosures, where control
exists and where key management personnel are able to exercise significant influence and, where
transactions have taken place during the year, alongwith description of relationship as identified, are
given below:-
C. The Corporate Insolvency Resolution Process (CIRP) of the company registered as S R Industries
Limited was initiated by the Adjudicating Authority (AA/ Hon'ble NCLT, Chandigarh Bench) on
21.12.2021. Pursuant to the process of Request for Resolution Plan (RFRP), Bazel International
Limited emerged as the Successful Resolution Applicant (SRA), which was granted the approval of
the AA vide its order dated 01.07.2024. As per Ind AS 24 the list of related parities upto 01st July
2024 are given below:
Mr. Udit Mayor Director
Mr. Munish Mahajan Managing Director
Mrs. Sanjeeta Mahajan Director
Mr. Amit Mahajan Whole Time Director & CFO
Mr. Gaurav Jain Director
Mrs. Anu Kumari Director
45. As per the approved Resolution Plan, by order dated 01 July 2024 of the Hon’ble NCLT, Bazel International
Limited (the Successful Resolution Applicant), along with its associates, appointed the Board of Directors of
the Company on 22-11-2024. Thereafter, in accordance with the order of the Hon’ble NCLT and the approved
Plan, the Company has written off all assets and liabilities appearing in the books of account and
debited/credited to Reserves & Surplus. The Company is also taking necessary actions with the statutory
departments to resolve all old related matters.
46. Previous years’ figures have been regrouped / recasted wherever necessary.
For Krishan Rakesh & Co. For and on behalf of the Board
Chartered Accountants S R Industries Limited
Firm Regn. No.: 009088N
Sd/- Sd/- Sd/-
(K.K.Gupta) Pankaj Dawar Manish Kumar Gupta
Partner (Managing Director) (Director cum CFO)
M.No.:087891 DIN: 06479649 (DIN: 05331936)
Place: Delhi Place: Santiago, USA Place: Delhi
Date: 27-05-2025 Date: 27-05-2025 Date: 27-05-2025
UDIN: 25087891BMIDZP6626
Sd/-
Shivam Sharma
(Company Secretary)
(PAN: GACPS4345Q)
Place: New Delhi
Date: 27-05-2025
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