P. Provisions, Contingent Liabilities and Contingent Asset:- (IND AS 37)
Provisions
A provision is recognized, when the company has a present obligation ( legal or constructive) as a result of past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reasonable estimate can
be made of the amount of the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current
best estimates.
Contingent Liabilities
A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by 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 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 can not be recognized because it can not
measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements
unless the probability of resources is remote.
Contingent Assets
A Contigent Asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurance or
non occurance of one or more uncertain future events not wholly within the control of the entity.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Q. Segment Reporting (IND AS 108)
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating
segment of the Company.
R. Investment in Subsidiary Companies(IND AS 27)
The Company has elected to recognize its investment in subsidiary companies at historical cost in accordance with the option
available in Ind As 27, 'Separate Financial statement'
S. Income Taxes (IND AS 12)
Income tax expense for the year comprises of net of current tax expenses and deferred tax expenses/income. Current and deferred
taxes are recognized in Statement of Profit & Loss., except when they relate to items that are recognized in other Comprehensive
Income or Directly in equity , in which case , the current and deferred tax are also recognized in Other Comprehensive Income or
directly in equity respectively.
Current Tax
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of
the Income tax Act,1961.
Deferred Tax
Deferred tax is recognized using the Balance sheet approach on timing differences arising between the tax bases of assets and
liabilities and their carrying amounts. Deferred Tax adjustments are recognised in the statement of Profit & loss for the year.
T. Risk Analysis :
Commodity Price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the on going purchase or
continuous supply of raw commodities. Therefore the company monitors its purchases closely to optimize the price.
Management of Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations.
Trade Receivables
All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit
or loss (FVTP L), transaction costs that are attributable to the acquisition of the financial asset.However, trade receivables that do
not contain a significant financing component are measured at transaction price.
Interest rate risk
The company has very minimum exposure to interest rate risk due to its Fixed interest rate of Major borrowings.
Liquidity risk
Liquidity risk is the risk that the company will not be able to meet is financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risk to the company's reputation.
Foreign Exchange risk
The Company's foreign exchange risk arises from its foreign operations, foreign currency revenue and expenses. The company uses
forward contract to mitigate the risk of fluctuation in foreign exchange rates in respect of highly probable forecasted transactions
and are recognized as assets and liabilities.
U. Expected Credit Loss (ECL) (IND AS 109)
The Company has a Policy of calculating the provisions using its own historical trends and the nature of its receivables & do
impairment testing every year for those receivable which are due for a substantial period . Considering the historical trends
and market information, the Company estimates that the provision amount computed on its trade receiveables is not materially
different from the amount to be computed using Expected Credit Loss (ECL) method presribed under Ind As 109.
V. Financial Assets
The Company recognize a financial assets in its Balance sheet when it becomes the party to the contractual provisions of the
instrument.
W. Impairment (IND AS 16)
Impairment Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested for
impairment annually and whenever there is an indication that the asset may be impaired.
Assets that are subject to depreciation and amortization and assets representing investments in subsidiary and associate companies
are reviewed for impairment, whenever events or changes in circumstances indicate that carrying amount may not be recoverable.
Such circumstances include, though are not limited to, significant or sustained decline in revenues or earnings and material adverse
changes in the economic environment.
An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its recoverable
amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To calculate value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market rates
and the risk specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the CGU to which the asset belongs. Fair value less cost to sell is the best estimate of the amount obtainable from
the sale of an asset in an arm's length transaction between knowledgeable, willing parties, less the cost of disposal.
Impairment losses, if any, are recognized in the Statement of Profit and Loss and included in depreciation and amortization
expense. Impairment losses, on assets other than goodwill are reversed in the Statement of Profit and Loss only to the extent that
the asset's carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had
previously been recognized.
X. Business Combination
Business combinations are accounted for using the acquisition method except Business Combination of entities under common
control. At the acquisition date, identifiable assets acquired and liabilities assumed are measured at fair value. For this purpose,
the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition
date fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable. The consideration
transferred is measured at fair value at acquisition date and includes the fair value of any contingent consideration. Where the
consideration transferred exceeds the value of the net identifiable assets acquired and liabilities assumed, the excess is recorded
as goodwill. Alternatively, in case of a bargain purchase wherein the consideration transferred is lower than the value of the net
identifiable assets acquired and liabilities assumed, the Company after assessing value of all identified assets and liabilities, record
the difference as a gain in other comprehensive income and accumulate the gain in equity as capital reserve.
In case of Business Combination of entities under common control, Business Combinations are accounted for using Pooling of
Interest Method in compliance with Appendix C of Ind AS 103 as on appointed date all assets, liabilited and reserves of the transferor
company are recoreded at their carrying values in the books of transferee company. The consideration for the business combination
may consist of securities, cash or other assets. Securities are recorded at nominal value. If the consideration paid exceeds the net
assets acquired, the difference is adjusted against capital reserves. If the net assets acquired exceed the consideration paid, the
difference is accounted as capital reserve. The costs of acquisition excluding those relating to issue of equity or debt securities
are charged to the Statement of Profit and Loss in the period in which they are incurred.
NOTE 15.1 - LONG TERM BORROWINGS - NATURE OF SECURITY & TERMS OF REPAYMENT
Loan from banks carry interest ranging from 2.9% to 12.45% p.a. and are secured by way of hypothecation of Plant & Machinery &
Equitable Registered Mortgage on some of the company's immovable property and personal guarantees of promoter Directors.
Default in terms of repayment of principal and interest - NIL.
The Company has used the borrowings taken from banks and financial institution for the specific purposes for which they were taken
as at the balance sheet date
The Company has registered all the required charges with Registrar of Companies within the statutory period.
Company has made no default in making repayment of borrowings
The major term loan has been availed for financing of Dhule plant.
The term loan is secured by pari passu charge on the land & building and hypothecation of all the present & future fixed assets and
intangible assets pertaining to Dhule plant
NOTE 32 : NOTE ON MICRO SMALL OR MEDIUM ENTERPRISES
(a) the principal amount and the interest due thereon remaining unpaid to any supplier at the end of each accounting year ? 459.51 Lakh.
(Previous Yr ? 383.56 Lakh)
(b) the amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act,
2006 (27 of 2006), along with the amount of the payment made to the supplier beyond the appointed day during each accounting
year; Nil (Previous Year Nil)
(c) the amount of interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed
day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act,
2006; Nil (Previous year Nil)
(d) the amount of interest accrued and remaining unpaid at the end of each accounting year: Nil ( Previous Year: Nil)
(e) the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues
above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of
the Micro, Small and Medium Enterprises Development Act, 2006.: Nil ( Previous Year :Nil)
NOTE 41:- A. EMPLOYEE BENEFITS AS PER IND AS 19:-
The Company has classified various employee benefits as under:-
a) Defined Contribution Plan: Provident Fund
The Provident Fund and the State Defined Contribution Plans are operated by the Regional Provident Fund Commissioner.Under
the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to
fund the benefits. These funds are recognised by the Income Tax Authorities.
b) Defined benefit Plan: Gratuity
The Company has defined benefit gratuity plan for its employees, which requires contributions to be made to a separately
administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years
of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at
retirement age. Such Gratuity Fund is administered by the LIC of India.
Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk,interest rate
risk, longevity risk and salary escalation risk.
A. Investment Risk: These Plans invest in long term debt instruments such as Government securities and highly rated corporate
bonds. The valuation of which is inversely proportionate to the interest rate movements. There is risk of volatility in asset
values due to market fluctuations and impairment of assets due to credit losses.
Note:
1) Earning for Debts Service : Net profit after tax Non cash operating Expenses lioke Depreciation interest /- Other adjustment
like Profit /(loss) on sales of asset.
2) Debt Service: Interest Payment Principle Payments.
3) Working Capital : Current Asset -Current Liabilities.
4) Capital Employed : Total Assets - Total Current Liabilities.
xv) No scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013 during financial year.(P.Y. Nil)
(xvi) Utilisation of Borrowed funds and share premium
a) 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 entity(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; (P.Y. Nil)
b) 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.(P.Y. Nil)
NOTE 48:
The Board approved draft scheme of Amalgamation of M/s Pious Engineering Private Limited with the company at its meeting held
on August 8, 2022, considering appointed date of Amalgamation as January 1,2023. The Scheme received the No-objection Letter
from NSE Ltd & BSE Ltd on 19th July 2023. The Scheme has been approved by the Hon'ble NCLT, Mumbai bench vide its order dated
11th Nov. 2024 approving the appointed date for the Scheme as 1st Jan 2023. The Company has given effect to the Scheme from the
Appointed Date specified in the Scheme i.e. 1st Jan 2023 in accordance with IND AS 103- Business Combination. Figures for previous
Financial year are also restated accordingly.
Accounting treatment of the amalgmation of Pious Engineering Pvt Ltd :
a) As per the requirements under the Scheme of Amalgamation, the Company has accounted for the amalgamation of “Pious
Engineering Private Limited"or “PEPL" as per the Pooling of Interest Method in compliance with the principles laid down by
Appendix C of Ind AS 103, i.e. business combination of entities under common control read with the clarification issued by Ind
AS Transition Facilitation Group' (“ITFG") issued by Institute of Chartered Accountants of India ('ICAI').
b) Consequently, the Company has recognized the assets and liabilities of PEPL at their carrying values.
c) The Company has recorded the asset and liabilities of the Merged Undertaking vested in it pursuant to thisScheme at the
respective book values appearing in the books of the Merged Undertaking (Appointed date as approved by the scheme of
Amalgamation).
d) The consideration for the business combination consisting of securities are recorded at nominal value.
e) As the consideration paid exceeds the net assets acquired by ? 58.50 Lakhs, the difference is adjusted against Capital reserve
as per provision of IND AS 103.
NOTE 50:
Capital commitments (Net of Advances) ? 507.42 lakhs. (P Yr. 1627.31 lakhs)
NOTE 51:
During the year , the company has conducted an exhaustive physical verification of its property, plants & equipment. The net excess
in value on such physical verification of ? 34.53 lakh is reflected in these accounts as reduction in repairs & maintainance of assets.
NOTE 52:
On 12th June 2024, there was a fire at Company's W-35 plant facility in Dombivli location, which resulted in damage to Inventory
and Property, Plant & Equipments situated therein. The cost of inventory destroyed by fire is ? 260.30 Lakh. The said loss is shown
as receivable from insurance company. The cost of repairing or replacing the damaged property alongwith book value of property,
plant & machinery amounts to ? 336.46 lakh. The said loss is shown as receivable from insurance company.
NOTE 53:
Previous years figures are regrouped/rearranged wherever necessary, to conform to the layout of accounts of current year.
As per our report of even date attached
For Kulkarni and Khanolkar For and on behalf of the Board
Chartered Accountants Indo Amines Limited
Firm Registration No : 105407W
Sd/- Sd/- Sd/-
Mihir M Bapat Vijay Palkar Rahul Palkar
Proprietor Managing Director & CEO Joint Managing Director
Membership No. :163657 DIN 00136027 DIN 00325590
Sd/- Sd/-
Place : Dombivli Suniti Thombre Tripti Sawant
Date : 22nd May 2025 Chief Financial Officer Company Secretary
Mem No. A39926
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