2.11 Provision
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
2.12 Borrowings
Borrowings are recognized initially at fair value, less attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortized cost with any difference between cost and redemption value being
recognized in the statement of profit or loss over the period of the borrowings using the effective interest
method.
2.13 Cash and Cash Equivalents
Cash and cash equivalents comprise cash at bank and in hand, short-term deposits and highly liquid investments with
an original maturity of three months or less which are readily convertible in cash and subject to insignificant risk of
change in value.
2.14 Earnings Per Share
Earnings per share is calculated by dividing the Profit after tax by the weighted average number of equity shares
outstanding during the year.
2.15 Contingent Liability and Contingent Assets
A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency
dependent on uncertain future events, or a present obligation where no outflow is probable. Major contingent liabilities
are disclosed in the financial statements unless the possibility of an outflow of economic resources is remote.
Contingent assets are not recognized in the financial statements but disclosed, where an inflow of economic benefit is
probable.
2.16 Trade Receivables
Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is
expected to be collected within a period of 12 months or less from the reporting date, they are classified as current
assets otherwise as non-current assets.
2.17 Investments and other financial assets
Financial assets are initially measured on trade date at fair value, plus transaction costs. All recognised financial
assets are subsequently measured in their entirety at either amortized cost or at fair value.
2.18 Government Grant
Government Grant received for acquisition of Building and plant & machinery will be recognised as income over the
life of the said assests.
3 USE OF ESTIMATES
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are
reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates
are revised and in any future periods affected. In particular, information about significant areas of estimation,
uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
recognized in the financial statements is included in the following notes :
3.1 Property, Plant and Equipments
Property, Plant and Equipments represent a significant proportion of the asset base of the company. The management
of the Company makes assumptions about the estimated useful lives, depreciation methods or residual values of
items of property, plant and equipment, based on past experience and information currently available. In addition, the
management assesses annually whether any indications of impairment of intangible assets and tangible assets. The
management of the Company believe that on balance sheet date no impairment indications were existing.
3.2 Trade Receivables
Furthermore, the management believe that the net carrying amount of trade receivables is recoverable based on their
past experience in the market and their assessment of the credit worthiness of debtors as at Balance Sheet date. Such
estimates are inherently imprecise and there may be additional information about one or more debtors that the
management are not aware of, which could significantly affect their estimations.
3.3 Defined Benefit Plans
The provisions for defined benefit plans have been calculated by a actuarial expert. The basic assumptions are related
to the mortality, discount rate and expected developments with regards to the salaries. The discount rate have been
determined by reference to market yields at the end of the reporting period based on the expected duration of the
obligation. The future salary increases have been estimated by using the expected inflation plus an additional mark-up
based on historical experience and management expectations.
3.4 Taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits.
3.5 Provisions and liabilities
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires
application of judgement to existing facts and circumstances which may be subject to change. The amounts are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
3.6 Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystalising or are very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.
Notes :
(i) Segments have been identified in line with the Accounting Standard on Segment Reporting (INDAS-108) taking into
account the organization structure as well as the different risks and return of these segments.
(Ii) Segment information has been prepared in conformity with the accounting policies for preparing and presenting the
financial statement of the company.
(iii) All segment assets and liabilities as well as revenue and expenses are directly attributable to the segment except for
Income Taxes.
(iv) Previous year figures are given in brackets.
b) Secondary Segment (Segments Revenue as per geographical market)
The company has considered geographical segment as secondary reporting segment for disclosure. For this purpose,
revenue are bifurcated based on sales in India and outside India.
44 During the year no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.
45 During the year 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 entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 to or on behalf of the Ultimate Beneficiaries.
46 During the year the Company had not surrendered or disclosed any income in the tax assessments under the Income
TaxAct, 1961 (such as, search or survey or any other relevant provisions of the Income TaxAct, 1961).
47 Figures for the previous year have been regrouped/rearranged wherever considered necessary.
48 During the year the company has not received funds 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 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
49 During the year the company has not done any trade or made any investment in Crypto currency or Virtual Currency.
50 During the year CSR under section 135 of the Companies Act is not applicable to the company.
51 The company started commercial production of Wafer Sticks with effect from December 25, 2023.The figures of current
year are both for manufacturing and trading activities while previous year figures are for trading activity and part of the
year are manufacturing activity and hence not compareable.
See accompanying notes to the financial statements
As per our report of even date annexed
For SURESH KUMAR MITTAL & CO.
Chartered Accountants (Kamlesh Jain) (Satish Jain)
Registration No. 500063N Chief Fin. Officer Mg. Director
DIN 00052215
ANKUR BAGLA
Partner
Membersip No. 521915
Place : New Delhi (Raj Kumar Sehgal) (Vimal Mehta)
Dated : 19th May, 2025 Co. Secretary Director
DIN: 00206202
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