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j) Provisions & Contingent Liabilities
Provisions are recognised 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.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used the increase in the
provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each balance
sheet and adjusted to reflect the current best estimates.
Disclosure of contingent liability is made when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that a rises from past events
is not recognized because it is not probable that an outflow of resources embodying economic benefits 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 and also reviewed at each balance
sheet date.
k) Inventories
Item of inventories are valued at lower of cost and net realisable value after providing for obsolescence, if any,
except in case of by-product / scrap / wastage which are valued at net realisable value. However, materials
and other items held for use in the production of finished goods are not valued below cost, if finished products
in which they will be incorporated are expected to sold at or above cost.
Cost of inventories comprises or cost of purchase, duties and taxes (other than those subsequently
recoverable), cost of conversion and other cost including manufacturing overheads net of recoverable taxes
incurred in bring them to their respective location and condition.
Cost of raw materials, process materials, stores and spares, packing materials, trading and other products are
determined on latest purchase price (FIFO) basis.
Work-in -progress and finished and semi-finished goods are valued at lower of cost or net realisable value.
Provision of obsolescence on inventories is considered on market of the inventories.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of
completion and the estimated costs necessary to make the sale. The comparison of cost and net realizable
value is made on item by item basis.
l) Employee Benefit Expense⢠Short-term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period when the employees render the
services.
Defined contribution plans
Contributions under defined contribution plans are recognised as expense for the period in which the
employee has rendered service. If the contribution payable to the scheme for service received before the
balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as
a liability after deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognized as an asset to
the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
Defined benefit plans
For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuation being carried out at each year-end balance sheet date.
Remeasurement gains and losses of the net defined benefit liability/{asset) are recognised immediately in
other comprehensive income. The service cost and net interest on the net defined benefit IiabiIity/(asset) are
recognised as an expense within employee costs.
Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any
related restructuring costs or termination benefits are recognised, whichever is earlier.
The retirement benefit obligations recognised in the balance sheet represents the present value of the defined
benefit obligations as reduced by the fair value of plan assets, if any. Compensated absences which are not
expected to occur within twelve months after the end of the period in which the employee renders the related
service are recognized based on actuarial valuation at the present value of the obligation as on the reporting
date.
The tax expenses for the period comprises of current tax, MAT and deferred income tax.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities in accordance with the Income-tax Act, 1961. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Minimum Alternative Tax (MAT) is recognized as an asset only when, and to the extent there is convincing
evidence that the company will pay normal income tax during the specific period. If the MAT credit becomes
eligible to be recognized as an asset in accordance the recommendations contained in the Guidance note
issued by ICAI, the said is created by the way of credit to the statement of Profit & Loss & shown as MAT credit
entitlement.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying value of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences. In contrast, deferred tax assets are only recognised
to the extent that it is probable that future taxable profits will be available against which the temporary
differences can be utilised. The carrying value of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by
the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying value of its assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same
tax authority and there are legally enforceable rights to set off current tax assets and current tax liabilities
within that jurisdiction.
Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except
when they relate to items credited or debited either in other comprehensive income or directly in equity, in
which case the tax is also recognised in other comprehensive income or directly in equity.
Goods and. Services Tax (GST)/value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the amount of GST paid, except:
¦ When the tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as
part of the expense item, as applicable
⢠When receivables and payables are stated with the amount of tax included
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
⢠Initial recognition and measurement
All financial assets, except investment in subsidiaries and associate, are recognised initially at fair value.
Transaction costs that are attributable to the acquisition or issue of financial asset, which are not at Fair Value
Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchase and sale of Financial Assets
are recognised using trade date accounting.
⢠Subsequent measurement
For purposes of subsequent measurement, financial assets are primarily classified in three categories:
a) Financial Assets measured at Amortised Cost
A Financial Asset is measured at Amortised Cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise
to cash flows on specified dates that represent solely payments of principal and interest on the principal
amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in other income in the Statement of Profit or Loss. The losses arising from impairment are recognised in the
Statement of Profit or Loss.
b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)
A Financial Asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling Financial Assets and the contractual terms of the Financial
Asset give rise on specified dates to cash flows that represents solely payments of principal and interest on
the principal amount outstanding.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses and reversals in the Profit and Loss. On de¬
recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to
Profit and Loss. Interest earned whilst holding FVTOCI asset is reported as interest income using the EIR
method.
Equity instruments, except for the ones held for trading, could also be classified as at FVTOCI, if the Company
makes an irrevocable election to do so at the time of initial recognition. Such election is made on instrument-
to-instrument basis. In case of equity instruments classified as at FVTOCI, all the fair value changes on the
instrument, excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to
statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative
gain or loss within equity.
c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)
A Financial Asset which is not classified in any of the above categories are measured at FVTPL Financial assets
are reclassified subsequent to their recognition, if the Company changes its business model for managing
those financial assets. Changes in business model are made and applied prospectively from the reclassification
date which is the first day of immediately next reporting period following the changes in business model in
accordance with principles laid down under Ind AS 109 â Financial Instruments.
⢠Other Equity Investments
All other equity investments are measured at fair value, with value changes recognized in Statement of Profit
and Loss. Dividend on such equity investments are recognised in Statement of Profit and loss when the
Company''s right to receive payment is established.
⢠Impairment of Financial Assets
In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating
impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL).
Expected Credit Losses are measured through a loss allowance at an amount equal to:
⢠The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or
⢠Full lifetime expected credit losses (expected credit losses that result from all possible default events over
the life of the financial instrument).
For Trade Receivables the Company applies ''simplified approach'' which requires expected lifetime losses to
be recognized from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates are analysed. For other assets, the
Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit
risk. If there is significant increase in credit risk full lifetime ECL is used.
⢠Initial recognition and measurement
All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost.
Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.
⢠Subsequent measurement
Financial Liabilities are carried at amortised cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value
due to the short maturity of these instruments.
Derecognition of Financial Instruments
The Company derecognises a Financial Asset when the contractual rights to the cash flows from the Financial
Asset expire or it transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A
Financial liability {or a part of a Financial liability) is derecognized from the Company''s Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires.
Offsetting
Financial Assets and Financial Liabilities are offset and the net amount is presented in the balance sheet when,
and only when, the Company has a legally enforceable right to set off the amount and it intends, either to
settle them on a net basis or to realise the asset and settle the liability simultaneously.
Modification of Financial Instruments
The Company assesses whether the contractual terms of a financial asset or financial liability have been
modified and accounts for such modifications in accordance with the requirements of Ind AS 109, Financial
Instruments.
Where the contractual cash flows of a financial asset are renegotiated or otherwise modified without resulting
in derecognition of the asset, the Company recalculates the gross carrying amount of the financial asset as the
present value of the modified contractual cash flows discounted using the original effective interest rate (or
the original credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The resulting modification gain or loss is recognised immediately in the Statement of Profit and Loss,
If the modification results in derecognition of the existing financial asset, the original asset is derecognised
and the modified or newly originated financial asset is recognised at its fair value. Any difference between the
carrying amount of the derecognised asset and the fair value of the new asset, together with any consideration
received or paid, is recognised in the Statement of Profit arid Loss.
The Company evaluates whether a modification or exchange of a financial liability is substantial. A modification
is considered substantial if the present value of the cash flows under the modified terms, including any fees
paid net of fees received, discounted using the original effective interest rate, differs by at least 10% from the
present value of the remaining cash flows of the original financial liability or where the terms are qualitatively
different.
Where the modification is substantial, the original financial liability is derecognised and a new financial liability
is recognised at its fair value. Any difference between the carrying amount of the extinguished liability and the
consideration paid, including the fair value of the new liability, is recognised in the Statement of Profit and
Loss.
Where the modification is not substantial, the financial liability is not derecognised. The carrying amount of
the liability is adjusted to reflect the modified contractual cash flows discounted using the original effective
interest rate, and any resulting modification gain or loss is recognised immediately in the Statement of Profit
and Loss. Transaction costs or fees incurred as part of a non-substantia I modification are adjusted against the
carrying amount of the modified liability and amortised over the remaining term using the effective interest
method.
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 financial instruments are categorised into three levels based on the inputs used to arrive at fair
value measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly; and
Level 3: Inputs based on unobservable market data.
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 Discounted Cash Flow Model. The inputs to these models are taken from observable markets where
possible, but where this is not feasible, a degree of judgement is required in establishing fair values.
Judgements include considerations of inputs such as liquidity risks, credit risks and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial instruments.
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the
fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that
it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements
as it has pricing latitude and is also exposed to inventory and credit risks.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of products
The Company recognises revenue when control over the promised goods or services is transferred to the
customer at transaction price that reflects the consideration to which the Company expects to receive in
exchange for those goods or services.
The Company has generally concluded that it is the principal in its revenue arrangements as it typically controls
the goods or services before transferring them to the customer.
Revenue is generally adjusted for variable consideration such as discounts, rebates, refunds, credits, price
concessions, incentives, liquidated damages or other similar deductions in a contract except when it is highly
probable it will not provided. The amount of revenue excludes any amount collected
on behalf of third parties. The Company recognises revenue generally at the point in time when the products
are delivered to customer.
Interest income
Interest Income from a Financial Assets is recognised using effective interest rate method.
Dividend Income
Dividend Income is recognised when the Company''s right to receive the amount has been established.
Commission Income
Commission income is recognised when the related performance obligation is satisfied and the Company''s
right to receive consideration is established. Revenue is measured at the transaction price expected to be
received and is recognised when the underlying services have been rendered in accordance with the terms of
the relevant agreement.
q) Finance Costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period
of time to get ready for its intended use.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are
charged to the Statement of Profit and Loss for the period for which they are incurred.
r) Earnings Per Share
Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by
the weighted average number of shares outstanding during the year. The average weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources. Partly paid up shares are included as fully
paid equivalents according to the fraction paid up.
Diluted earnings per share is computed using the weighted average number of shares and dilutive
potential shares except where the result would be anti-dilutive.
s) Government Grants and Subsidies
Grants from the government are recognized at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions.
Government grants relating to income are deferred and recognized in the profit or loss over the period
necessary to match them with the costs that they are intended to compensate and presented within other
operating income.
t) Events after the reporting period
If the Company receives information after the reporting period, but prior to the date of approved for issue,
about conditions that existed at the end of the reporting period, it will assess whether the information affects
the amounts that it recognises in its financial statements. The Company will adjust the amounts recognised in
its financial statements to reflect any adjusting events after the reporting period and update the disclosures
that relate to those conditions in light of the new information. For non-adjusting events after the reporting
period, the Company will not change the amounts recognised in its financial statements, but will disclose the
nature of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate
cannot be made, if applicable.
?Key Accounting Estimates & Judgements
1. Valuation of Deferred Tax Assets
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The
policy has been detailed in Note 2(1} and its further information are set out in Note 5.1.
2. Defined Benefit Plan
The cost of the defined benefit plans and other post-employment benefits and the present value of the
obligation are determined using actuarial valuations. 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, mortality rates and future pension increases. Due to the complexities
involved in the valuation 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.
The parameter that is subject to change the most is the discount rate. In determining the appropriate discount
rate, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation and extrapolated as needed along the yield curve to
correspond with the expected term of the defined benefit obligation.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only
at intervals in response to demographic changes. Future salary increases are after considering the expected
future inflation rates for the country. Refer to Note 5.2 for further details.
3. Property, Plant and Equipment
The Company reviews the useful life of property, plant and equipment and intangible assets at the end of each
reporting period. This reassessment may result in change in depreciation and amortisation expense in future
periods. The policy has been detailed in Note 2{C) above.
4. Recoverability of Trade Receivables
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether
a provision against those receivables is required. Estimated irrecoverable amounts are derived based on a
provision matrix, which takes into accounts various factors such as customer specific risks, geographical
region, product type, customer rating, type of customer, the amount and timing of anticipated future
payments and any possible actions that can be taken to mitigate the risk of non-payment.
Terms/rights attached to equity shares :
The company has only one class of equity shares having a par value of Rs.10/-. Each holder of equity share is entitled to one vote per share. The
. company declares and pays dividend in indian rupees. The dividend proposed by the Board of Directors Is subject to approval of shareholders in
the ensuing Annual General Meeting.
During the year ended 31st March 2026, the amount of per share dividend recognised as distributions to equity shareholder was NIL per share
'' (PY Rs. NIL/-)
In the event of liquidation of the company, the holders of the Equity shares will be entitled to receive remaining assets of the company, after
- distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.
Primary Security:
First and exclusive charge on all machineries, electrical installations, furniture fixtures,Factory Building and other movable properties In the
Vehicle Loans
Hypothecation of Vehicles for Vehicle Loan
Collateral Security & Personal Guarantee:
As per Note : 5.21
Term Loans:
Term Loans From BOB to be Repaid as by 83 monthly installment of Rs. 74.40 lacs and last 84th installment of Rs. 74.80 lacs.
GECL From BOB to be Repaid in equal 48 monthly installment of Rs. 22.19 Lacs from April-2022 onwards.
$ Wind Mill Loan from BOB to be repaid in equal 83 monthly Installment of Rs. 17.86 lacs and last 84th installment of Rs. 17.62 lacs.
* AWTCL From BOB to be Repaid in equal 48 monthly installment of Rs. 11.04 Lacs from January-2024 onwards.
SolarTerm loan:
a. Rooftop Loan: Repayable in 50 monthly installments of Rs. 6.64 lacs.
b. Ground Mount Loan 1: Repayable in 59 monthly installments of Rs. 21.24 lacs.
c. Ground Mount Loan 2: Repayable In 60 monthly installments of Rs. 11.12 lacs,
d. Corporate Loan: Repayable in 60 monthly installments of Rs. 0.67 lacs.
B. Defined benefit plans:
The Company has following post employment benefits which are in the nature of defined benefit plans:
(a) Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for payment to
vested employees at retirement, death while in employment or on termination of employment in accordance with the scheme of the company.
Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in the future based on an
actuarial valuation.
Note 5.4; Capital Management
For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity
holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy
capital ratios in order to support its business and maximise return to stakeholders through the optimisation of the debt and equity balance.
The Company manages its capital structure and makes adjustments to it In light of changes in economic conditions and the requirements of the
financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company
includes, within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.
Note 5.5 : Financial risk management
In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company''s business and
operational/ financial performance. These include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.
The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating
actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings. In line with the overall risk
management framework and policies, the management monitors and manages risk exposure through an analysis of degree and magnitude of risks.
Market Risk
Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair values or future
cash flows to the Company. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating
interest rates.
Interest rote sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings. With all other variables
â held constant, the Company''s profit before tax Is affected through the impact on floating rate borrowings, as follows:
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes In foreign exchange
rates. The Company is not exposed to foreign currency risk as at the reporting date, as it has no foreign currency-denominated financial assets or
liabilities and has not entered into any foreign currency transactions or hedging arrangements during the year. Accordingly, no foreign currency
sensitivity analysis has been presented.
Equity price risk
The Company is not exposed to equity price risk as at the reporting date since it does not hold any investments in equity instruments or other
financial assets whose fair values are affected by changes in equity market prices. Accordingly, no sensitivity analysis has been presented.
Credit Risk
Credit risk is the rid: that counterparty will not meet its obligations under a financial Instrument or customer contract leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with
banks and financial institutions and foreign exchange transactions.
Trade receivables
Customer credit risk is managed by the Company''s internal policies, procedures and control relating to customer credit risk management Credit
quality of a customer is assessed based on market feedback and credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored.
i
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several Jurisdictions and
operate in independent markets.
Trade receivables are non-interest bearing and are generally on 14 days to 90 days credit term. Credit limits are established for all customers based
on internal rating criteria. The Company has no concentration of credit risk as the customer base is widely distributed both economically and
geographically.
Uauldftv Risk
The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow
and outflow.
The Company''s objective is to maintain a balance between continuity of funding and flexibility largely through cashflow generation from its operating
activities and the use of bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.
The Company has access to a sufficient variety of sources of funding.
Note 5.6; Government Grants
The Company is entitled for State GST exemption on its eligible sale of products which includes cotton yam as a government subsidy. This subsidy has
been received as per the State Government''s incentive scheme to promote businesses in specified industries. The Company recognises it as other
operating income in its books of accounts. These are of revenue in nature and the same is accounted as stated in accounting policy on Government
Grant.
Note 5.8: Fair value measurements:
The following table provides an analysis of financial Instruments that are measured subsequent to initial recognition at fair value, grouped into Level
1 to Level 3, as described below. Except for the following, the management considers that the carrying amounts of financial assets and financial
liabilities recognised in the financial statements approximate their fair values:
Note 5.10: Leases
The Company is a sub-lessee and has entered Into agreements for taking on leave and license basis Land for Windmill, as applicable, The specified
disclosure In respect of these agreements is given below:
Note 5.14: Events Occuring after the Balance Sheet date
Subsequent to the year ended 31st March, 2026, the Company completed its Initial Public Offering ("IPO") comprising fresh issue of 125.00 Lakhs
equity shares of face value Rs. 10 each at an issue price of Rs. 136.00 per share. Pursuant to the IPO, the equity shares of the Company were listed on
NSE Limited and BSE Limited on 06th July, 2026. Consequently, the paid-up equity share capital of the Company increased from Rs. 3164.22 Lakhs to
Rs. 4414,22 Lakhs comprising 4,41,42,190 fully paid-up equity shares of Rs. 10 each. Accordingly, the financial results are being submitted for the first
time pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
Note 5.15: Relation with Struck off Companies
The company did not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,
1956, during the period under review.
Note 5.16: Segment Information
In accordance with Ind AS 108- Operating Segments, the company operates in single business segment i.e "manufacturing of 100% Cotton Yarns and
Cotton Bales".
Note 5.17: Audit Trail
The Company has used accounting software for maintaining its books of account during the financial year which has a feature of recording an audit
trail (edit log) for each change made in the books of account. The audit trail feature has operated throughout the year for all relevant transactions
recorded in the software and has not been tampered with. The audit trail has been preserved by the Company in accordance with the statutory
requirements for record retention.
Note 5.18: Additional Regulatory Information
a. In the opinion of the Board of Directors, Current assets, loans and advances have a value on realisation in the ordinary course of business equal to
the amount at which they are stated in the balance sheet.
b. Foreign Currency Transactions:
VALUE OF IMPORTS ON C.I.F, BASIS: NIL (Previous Year: Nil)
EXPENDITURE IN FOREIGN CURRENCY: NIL (Previous Year: NIL)
VALUE OF EXPORTS ON F.O.B. BASIS: NIL (Previous Year: NIL)
c. The Company has not revalued its Property, Plant and Equipment during the reporting years
d. The Company has borrowings from banks or financial Institutions on the basis of security of current assets (stock and book debts) and statements
of current assets (stock and book debts) filed by the Company with banks or financial institutions are in agreement with the books of accounts except
as follows:
e. The Company have no immovable property whose title deeds are not held in the name of the company.
f. There are no Loans and Advances in the nature of loans that are granted to promoters, directors, KMP''s and the related parties either severally or
jointly with any other person, that are repayable on demand,
g. There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988(45 of 1988).
h. The Company has no subsidiaries with one layer prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number
of Layers) Rules, 2017
I. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013,
j. The Company is not declared as willful defaulter by any bank or financial institution or other lender.
k. The Company have not traded or invested in Crypto currency during the period under review.
l. Utilisation of Borrowed fund sand share premium:
A. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to
any other person(s) or entlty(ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that
the Intermediary shall:
i. 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
ii.provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
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:
i. 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
Ii.provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
m. The Company does not have any transaction or undisclosed income which are reported by tax authorities under any assessment year under tax
Assessment (such as, search or survey or any other relevant provisions) under the income tax Act-1961 and rules made thereunder.
n. The Company does not have any charges or satisfaction which Is yet to be registered with ROC beyond the statutory period.
Note 5.Z0: Disclosures required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:
The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise registered
under the applicable category as per the provisions of the Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act,
2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the confirmations received by the company
upto the date of the financial statements.
Note 5.21 Details of Collateral Security and Personal Guarantee:
Legal Mortgage or factory land, situated at Revenue Block No. 1441,1442,1443/p2,1448/1,1449 & 1450/2/piky 2 at village-Halvad , Tal-
Halvad, Dist- Morbi, belonging to M/s Aastha Spintex Ltd.
Legal Mortgage of Factory Land,8t Factory building thereon situated at Halvad Belonging to M/s. Krishna Packaging and Itâs Partners 1.
Jasvantkumar Valjibhai Patel 2. Vivek Rasiklal Patel 3. Kamleshbhai Maganbhai Varmora 4. Manojkumar Pranjivanbhai Saldva
Legal Mortgage of Residential House situated at City Survey No 6710. Property No. 3419, belonging to Mr. Jashvantbhai Valjibhai Patel
(Directors)
Legal Mortgage of Residential House, situated at S. No. 2026p, Plot 42, Uma society at Halad, Tal. Halvad,Dist. Morbi, belonging to Mr
Manojkumar Pranjivanbhai Saidva (Guarantor)
Legal Mortgage of Residential House, situated at S. No. 2026, Plot No.38, ''Oma Societyâ At Halvad,, Surendranagar, belonging to Mr.
Maganbhai Bhagvanjibhai Vidja (Guarantor)
Legal Mortgage of Residential House,situated at S. No,1126/1,1128 p,plot no 5,"shree Kamdhenu Apartment" somnath society,Ravapara
road,Morbi belonging to Mr.Rasiklal Valjibhai patel(Guarantor).
Legal Mortgage of 82 residential open plot no.l to 17,22 to 32,35 to 48,66 to 105,situated at Rev. Survey No.l620/p,Village-Halvad,Tal-
Halvad, Dist: Surendranagar Maliya Dhrangadhra State Highway,Near Sandipani High school, Halvad belonging to Mr. Rasiklal Valjibhai
Patel (Guarantor).
Legal Mortgage of residential open plot,situated at S No. 1407/1,1406/p3,1406/p2,1408,1409,1406/pl,P!ot No.110. "Umiya Township"
At Halvad/Tal.Halvad,Dist:Surendranagar belonging to Mrs. Nishaben Jashubhai Patel(Guarantor).
Legal Mortgage of residential open plot.situated at S No, 1407/1,1406/p3, Plot No, 111. "Umiya Township" At
Halvad,Tal.Halvad,Dist:Surendranagar belonging to Mrs. Nishaben Jashubhai Patel (Guarantor).
Legal Mortgage of residential open plot.situated at S No. 1407/1,1406/p3, Plot.No.132. "Umiya Township" At
Halvad,Tal. Halvad,Dist:Surendranagar belonging to Mrs. Nishaben Jashubhai Patel(Guarantor).
Legal Mortgage of Residential Flat, situated at "Samarpan Apartment", Flat No. 501, Fifth Floor, Nr. Radhe Residency & Scientific Clock,
Patel Nagar, St. No. 2, Off, Canal Road, Vajepar, Morbi, Morbi -363642, standing in the name of Mrs. Manjulaben Rameshbhai Patel
(Guarantor)
Legal Mortgage of Commercial Shop, situated at "Madhav Automobiles" Shop No.19 & 20, Ground Floor, Shivam Arcade, Shreeji Darshan,
South Side of Dhangadhara Maliya Highway, Halvad, Dist, Surendranagar, in the name of Mr. Sanjay Pranjivanbhai Saidva.
Legal Mortgage of 08 Residential Non Agriculture Open plots at Halvad Revenue Survey No. 1817 paiki 1, Plot No. 48 to 54 & 75, Gajanan
Park, Opp. Vrundavan Park, Nr. Narmada Canal, Ranakpur Road, South Side of Dhangadhra Maliya Highway, Halvad, Dist. Surendranagar,
standing in the name of Mr. Ashokbhai Valjibhai Patel.
Charge on Solar Plant (both present and future)
Hypothecation of Stocks viz. stock of raw material,WIP,Finished Goods, Book Debts, and Property Plant & Equipment of the Company
including Plant & Marfiinaries, Equipments, spares, vehicle,etc.(Existing & Future).
Note 5.22: Other Notes
i) The figures for the previous year have been reclassified/ regrouped wherever necessary for better understanding and comparability.
ii) Balances grouped under Non Current Liabilities and Current Liabilities, Non Current Assets and Current Assets in certain cases are
subject to confirmation and reconciliation from respective parties. Impact of the same, if any, shall be accounted as and when determined.
iii) In the opinion of the Management Long Term Loans and Advances, Other Non Current Assets, Current Assets and Other Current Assets
fetch approximately the value as stated in the Financial Statement if realised in the ordinary course of business subject to balance
confirmation. The provision for all known liabilities is adequate and is not in excess of amounts considered reasonably necessary.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
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