L. Provision, Contingent liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that
is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by the best estimate of the likely future outflow of economic
benefits required to settle the obligation at the reporting date.
Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation or a present obligation that may, but
probably will not. require an outflow of resources.
Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
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 Standalone financial statements.
M. Cash and Cash Equivalents
Cash and cash equivalents comprises cash at banks and short term deposits that are readily convertible
into cash and which are subject to an insignificant risk of changes in value.
N. Borrowing Cost
Borrowing cost that are directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial year of time to get ready for its intended use or sale are capitalised
as part of the cost of the respective asset. Costs incurred in raising funds are amortized equally over the
period for which the funds are acquired. All other borrowing costs are expensed in the period they occur.
O. Related Party Disclosures
Related parties as defined under Accounting Standard - 18 ‘Related Party Disclosures' have been
identified based on representations made by management and information available with the Company.
All transactions with related parties are in the ordinary course of business and on arms’ length basis.
P. Foreign Currency Transactions
These financial statements are presented in Indian rupees, which is the functional currency of Macfos
Limited. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of
transaction. Foreign currency denominated monetary assets and liabilities are re-measured into the
functional currency at the exchange rate prevailing on the balance sheet date 31.03.2025 and exchange
differences are recognised in the statement of Profit and Loss.
Q. Cash Flow Statement
The cash flow' Statement has been prepared under the “Indirect Method” as set out in Accounting
standard -3 “Cash Flow Statement” whereby net profit before tax is adjusted for the effects of the
transactions of a non cash nature and any deferral or accrual of past or future cash receipts or payments.
The cash flow from regular operating, investing and financing activities of the company are segregated.
R. Employee Benefits
Short term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised
for the amount expected to be paid if the Company has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee and the obligation can be estimated
reliably.
Post-Kmplovment Benefits
a. Defined Contribution Plans (ESIC/PE)
A defined contribution plan is a post-employment benefit plan under which a Company pays fixed
contribution into a separate entity and will have no legal or constructive obligation to pay further
amounts.
Obligations for contributions to defined contribution plans are expensed as the related service is
provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction
in future payments is available.
b. Defined benefit Plans (Gratuity )
The Company pays gratuity to the employees who have completed five years of service with the Company
at the time when employee leaves the Company.
The gratuity' amount has been calculated as per the Actuarial Valuation report as of 31st March, 2025.
The company is following Non- funded method for gratuity.
S. Leases
The company has taken office Premises & Warehouse on lease for the period of 5 Year & thus classified
as an Operating lease and lease rentals are recognized on a straight-line basis over the lease term, Refer
note no. 30 of the Standalone financial statements.
T. Segment Reporting
The Company is having single segment, Accordingly AS-17 Segment Reporting is not applicable to the
company
U. Subsequent Events occurred after the Balance sheet date
No subsequent events are occurred after the balance sheet date.
V. Corporate Social Responsibility (CSR)
Pursuant to Section 135 of the Companies act, 2013, applicable companies are required to allocate at
least 2% of their average net profit for the immediately preceding three financial years towards CSR
activities.
CSR activities encompass areas specified in Schedule VII of the Companies Act, 2013, including
eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care
and rehabilitation, environment sustainability, disaster relief, and rural development projects.
Funds allocated for CSR activities are primarily directed towards specific projects throughout the year,
as approved by the CSR Committee established in accordance with Section 135 of the Companies Act,
2013.
W. Significant Accounting, Judgements Estimates and Assumptions.
In the application of the Company’s accounting policies, Management is required to make judgements,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and future
periods.
Key sources of estimation uncertainty.
The following are 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
earning amount of assets and liabilities within the next financial year:
a. Useful lives of property, plant and equipment and intangible assets.
The Company has estimated useful life of each class of assets based on the nature of assets, the estimated
usage of the asset, the operating condition of the asset, past history of replacement, anticipated
technological changes, etc. The Company reviews the useful life of property, plant and equipment and
intangible assets as at the end of each reporting period. This reassessment may result in change in
depreciation and amortisation expense in future periods.
b. Defined Benefit plans.
The cost of the defined benefit plans and the present value of the defined benefit obligation are based on
actuarial valuation using the projected unit credit method. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of
the discount rate, future salary increases and mortality rates. All assumptions are reviewed at each Balance
Sheet date and disclosed in Note no. 23
x. Others
1. Regrouping - Figures have been rearranged and regrouped wherever practicable and considered
necessary.
2. Benami property - The Company does not have any Bcnami property, where any proceeding has
been initiated or pending against the Company for holding any Benami property
3. Struck Off Co. - The Company has performed the assessment to identify transactions with struck off
companies as at 31st March, 2025 and identified no company with any transactions.
4. Crypto / Virtual currency - The Company has not traded or invested in crypto currency or virtual
currency during the financial year.
5. Fund Advanced - No funds have been advanced or loaned or invested either from borrowed funds
or share premium or any other sources or kind of funds by the Company to or in any other person or
entity, including foreign entities (‘Intermediaries’), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
6. Funds Raised - No funds have been received by the Company from any person or entity, including
foreign entities (’Funding Parties’), with the understanding, whether recorded in writing or otherwise,
that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Part)' (‘Ultimate Beneficiaries’) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
7. Willful default - The Company has not been declared willful defaulter by any bank or financial
institution or Government or any Government authority
8. Provisions - The management has confirmed that adequate provisions have been made for all the
known and determined liabilities and the same is not in excess of the amounts reasonably required to
be provided for.
9. Trade payables/ Trade Receivable - The balances of trade payables, trade receivables, loans, and
advances are unsecured and considered good and are subject to confirmations of the respective parties
concerned.
10. Realizations- In the opinion of the Board and to the best of its knowledge and belief, the value on
the realization of current assets and loans and advances are approximate of the same value as stated.
11. Contractual liabilities- All other contractual liabilities connected with the business operations of
the Company have been appropriately provided for.
For M/s. Macfos Limited ~ . .
rJ\
y> fejsS* (fjJU-
Mr. Binod Prasad Mr. Atul Dumbre MjrNtlesh (Whan
Whole Time Director & CFO Chairman & M.D. Whole Time Director
DIN No: - 07938828 DIN No: - 07938802 DIN No: - 07936897
|