B. Right, Preferences and Restriction attached to shares
(i) The company has only one class of Equity having a par value Rs. 10.00 per share.
(ii) Each shareholder is eligible for one vote per share held.
(iii) The dividend proposed by board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend.
(iv) During the year ended 31st March 2025, no dividend was declared by the company (31st March 2024: Nil)
(v) In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.
5B. Unsecured Loans taken from directors
Unsecured loans have been taken from the directors at 6.00% rate of interest and there is no written agreement for repayment terms Though the same are generally repayable on dema nd, but keeping in view the terms of bank loans i.e. "Unsecured loans not to be withdrawn during the currency of bank loan", the same is considered to be of long term nature and have been cl ass i fied according ly.
5C. Continuing default of repayment of Loans and interest
The company does not have any con tinuing defaults in repayment of loans and interest as at the reporting date.
8A. Terms and Conditions of Borrowings
(i) Cash Credit limit from HDFC bank is secu red against all current assets of the company and carries interest rate of 9%.
Th e loan i s repayable on demand.
(ii) HDFC Bank LC di scounted is secured by the blanket cover of all current assets and repayable in 75 days w i th 9.00% interest.
(iii) Curre nt maturities of l on g-term debti Refer Note 5A and 5B for terms and conditions
8B. Continuing default of repayment of Loans and interest
The company does not have any continuing defaults in repayment of loans and interest as at the reporting date.
Note : The diluted earnings per share has been computed by dividing the net profit after tax available for equity shareholders by the weighted average number of equity shares, after giving dilutive effect of the outstanding warrants, stock options and convertible bonds for the respective periods. Since, the effect of the convers ion of preference shares was a nti-dilutive, it has been ignored .
(1 ) Classification of creditors as per MSMED Act
The classification of creditors as micro and small enterprise has been given for the parties from whom the confirmation has been re ceived regarding their classification as per MSMED Act. The interest on delayed payment to such parties, if any, has been ca l culated and booked as payable.
(3) Revenue Recogni tion and Goods in Tra nsit
As at the reporting date, goods amounting to Rs. 32,60,250 were invoiced and dispatched to cu stome rs, but the significant risks and rewards of ownership had not been transferred as the goods were still in transit. In compliance with AS 9, the related revenue has not been recognized, and the corresponding sales entry has been reversed in the books.
The cost of t hese goods, amounting to Rs. 27,59,410, has been include d u nder "Inventori es" in the balance sheet as "Finished Goods - In Transit" valued at cost as per the accounting policy of the company.
(5) Statement of Management
The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
(6) Provision for retirement benefits
Provision for retirement benefit has been made on the basis of report by M/s Kandoi & Co, Actuaries, dated 22/04/2025. Gratuity is payable to all the eligible employees at the rate of 15 days salary (Basic D. A.) for each completed year of service, subject to a payment ceiling of INR 2,000,000, in line with Payment of Gratuity Act, 1972.
Th e form ula to calculate da ily s alary is 1/26 * monthly salary and vesting period i s 5 years .
In line with Gratuity Act, service more t han 6 month s is cons idere d as 1 year, so past service is calculated as rounded years of service.
Gratuity shall be payable to an employee on termination of empl oyment due to superannuation, retirement or resignation after successful completion of the vesting period. The completion of vesting period is not applicable in the case where termination of employment is due to death, disability.
Gratuity Disclosure Statement as Per Accounting Standard 15 (Revised 2005)
# Next year Actual Expense will also include Actuarial Gain/ loss as incurred in next year and/ or any past service cost which may arise.
Actuarial Gains/ Losses are accounted for in the period of occurrence in the Statement of Profit or Loss.
Average ex pected future working life of employees represents Estim ated Term of Benefit Obligation.
During the year, there were no plan amendments, curtailments and settlements.
(7) Government Grant
During the year capital s ubsidy again st i nvestment in property, plant & equipment has been approved under "Madhya Pradesh MSME Protsaha n Yojna 2021" amounting to Rs. 2,95,94,2 80/-.
The same has been reduced from the Gross Block of the respective assets against which it has been approved. Corresponding effect in WDV and depreciation during the year has also been considered and provided.
Out of the approved amount of Rs. 2,95,94,280/-, part amount of Rs. 94,81,515/- has been received during the year and the same has been accounted for. Balance amount of Rs. 2,01,12,765/- has been shown as receivable under the appropriate head.
(8) Impairment loss *
During the year, there was no impairme nt loss i n th e value of fixed assets and h ence no provision is req uired as per AS-28
(9) Related party disclosu res
Related Party disclosure as identified by the company and relied upon by the auditors:
Names of related parties and description of relationship and nature of transactions
(12) Additional Regulatory Information
( 12.1) Title deeds of Immovable Property not held in name of the Company
Title deeds of all immovable properties are held in name of the company.
(12.2) Revaluation of Property Plant & Equipments
No revaluation of property, plant and equipment.
(12.3) Loans or advances in the nature of loans to promoters, directors, KMPs and related parties
N o loans a nd advances in the na ture of loans to promoters, directors, KMPs and related parties.
(12.4) Capital work in progress
There is no Capital work in progress in the company
(12.5) Intangible assets under development
The company do not have any intangible assets under development
(12.6) Details of Benami Property held
No proceeding has been initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.
(12.7) Borrowings from banks or financial institutions on the basis of security of current assets
Comp any has borrowing s from ba nks on the bas i s of security of current and quarterly returns or statements of current assets filed by the Company with are in agreement with the books of accounts.
( 12.8) Wilful Defau lter
Where a company is a declared wilful defaulter by any bank or financial Institution or other lender, follo wing de tails s hall be given.
Compan y ha s not been decla red wil ful defaulter by any bank or financial i nstitution or other len der.
( 12.9) Relationship with Struck off Companies
No relationship of comp any with a ny struck off companies.
(12.10) Registration of charges or satisfaction with Registrar of Companies
Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period , details a nd reasons thereof
No charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
(12.11) Compliance with number of layers of companies
Not applicable during th e year.
(12.12) Compliance with approved Scheme(s) of Arrangements
Effect of such Scheme of Arrangements have been accounted for in the books of account of the Company
Not applicable during the year.
(12.13) Corporate Social Responsibility (CSR)
Not applicable during the year.
(12.14) Undisclosed Income
No undisclosed income surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(12.15) Details of Crypto Currency or Virtual Currency
Not applicable during the year.
(12.16) Utilisation of Borrowed funds and share premium
(A) Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries).
(B) Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding that, the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
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