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Kotia Enterprises Ltd. Notes to Accounts
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You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (Rs.) 14.85 Cr. P/BV 0.51 Book Value (Rs.) 41.23
52 Week High/Low (Rs.) 38/21 FV/ML 10/1 P/E(X) 0.00
Bookclosure 22/12/2020 EPS (Rs.) 0.00 Div Yield (%) 0.00
Year End :2025-03 

(j) Provision, Contingent Liabilities and Contingent Assets:

Provision: A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money is material, provisions 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. When discounting is used, the increase in the provision due to the passage of time is recognized
as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at reporting date, taking into account the risks and uncertainties surrounding the obligation.

Contingent Liability: Contingent liabilities are possible obligations that arise from past events and whose existence will
only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the
Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic
benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts.
These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

(k) Current and Non Current classification: All assets and Liabilities have been classified as current or non-current.
Based on the nature of product and activities of the Company and their realization in cash and cash equivalent, the
Company has determined its operating cycle as 12 months for the purpose of current and non-current classification of
assets and liabilities.

Deferred tax assets/liabilities are classified as non-current.

Note 4: Major Estimates and Judgments made in preparing Standalone Financial Statements

The preparation of the Company's Standalone Financial Statements requires management to make judgements and
estimates that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. These include recognition and measurement of financial
instruments, estimates of useful lives and residual value of Property, Plant and Equipment and Intangible Assets,
valuation of inventories, measurement of recoverable amounts of cash-generating units, measurement of employee
benefits, actuarial assumptions, provisions etc.

Uncertainty about these judgments and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates
and assumptions based on the most recently available information. Revisions to accounting estimates are recognized
prospectively in the Statement of Profit and Loss in the period in which the estimates are revised and in any future
periods affected.

A. JUDGEMENTS

In the process of applying the company's accounting policies, management has made the following judgements, which
have the significant effect on the amounts recognised in the Standalone Financial Statements:

Materiality

Ind AS requires assessment of materiality by the Company for accounting and disclosure of various transactions in the
Standalone Financial Statements. Accordingly, the Company assesses materiality limits for various items for accounting
and disclosures and follows on a consistent basis. Overall materiality is also assessed based on various financial
parameters such as Gross Block of assets, Net Block of Assets, Total Assets, Revenue and Profit Before Tax. The
materiality limits are reviewed and approved by the Board.

Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37,
‘Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood of the contingent events has
required best judgment by management regarding the probability of exposure to potential loss. Should circumstances
change following unforeseeable developments, this likelihood could alter. In the similar line, management also on the
basis of best judgment and estimate determines the net realizable value of the Inventories to make necessary provision.

B. MAJOR ESTIMATES

The key assumptions concerning the future and other key sources of estimation at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below.

Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when
they occur.

Useful life of property, plant and equipment and intangible assets

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of
obsolescence, demand, competition and other economic factors (such as the stability of the industry and known
technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.

Useful life of the assets other than Plant and machinery are in accordance with Schedule II of the Companies Act, 2013.

The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted
prospectively, if appropriate.

As per the requirements of Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets, the Company has evaluated all potential obligations and rights that may arise from past events.
Based on this evaluation, the management has determined that:

Forthe FinancialYear 2018-2019, a GST demand of ^7,11,246 (CGST and SGST) was receivedalongwith interest of ^28,49,628 andpenalty of ^71,124. The principaltax amount was paid, and the
Company had applied for a waiver of interest and penalty under Section 128A of the CGST Act. The waiver was accepted and approved by the authorities vide order dated 21 May 2025.

For the Financial Year 2019-2020, a GST demand of ^41,96,890 was received, along with interest of ^40,47,900 and penalty of ^4,19,688. The Company has filed an appeal before the appropriate
appellate authority and deposited ^4,19,689 (10% of the disputed tax) as a statutory pre-deposit.

Based on legal advice, the Company believes it has valid grounds in respect of the 2019-2020 demand. As the likelihood of an outflow of economic benefits is not considered probable, no
provision has been recognised in the financial statements.

Note No. 36. Disclosure as per Ind AS 108 ' Operating segment'

As per the requirements of Ind AS 108 - Operating Segments, the standard requires disclosure of information about operating segments, products and services, geographical areas, and major
customers.

The Company is engaged in a single line of business, namely the trading of goods, and operates entirely within India. It does not have any reportable business or geographical segments that are
distinguishable for financial reporting purposes.

Accordingly, no separate segment reporting is presented in the financial statements.

Note No. 37. Disclosure as per Ind AS 107 'Financial instrument disclosure'

A) Capital management

The Company's objectives when managing capital are to:

- To ensure Company's ability to continue as a going concern, and

- To provide adequate return to shareholders
a) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade
receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit
risk controls.

i) Credit risk management
Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets. The
Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A: Low
B: Medium
C: High

c) Interest rate risk

At present the company does not have any borrowings from the Banks or the Financial Institutions. Therefore there is no interest rate risk.

Note No. 38. Disclosure as per Ind AS 113 'Fair Value Measurement'
i) Fair values hierarchy

Financial assets and liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the
observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value offinancial instruments that are not traded in an active market is determined usingvaluation techniques that maximise the use ofobservable market data and rely as little
as possible on entity-specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Note No. 40.

Additional Regulatory Information in Schedule III:

i) The company does not have any immovable property during the year.

ii) The Company does not have any investment property, hence the question of disclosure and valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017 does not arise.

iii) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.

iv) The Company does not have any intangible assets during the year.

v) No loans or advances in the nature of loan are granted to promoters, directors, KMPS, and the related parties (as defined under Companies Act, 2013) either severally or jointly with other
person, that are repayable on demand or without specifying any terms or period of repayments.

vi) The company does not have any Capital Work-in-Progress during the year.

vii) There are no intangible assets under development during the year.

viii) Benami property: There are no proceedings being initiated or are pending against the Company for holding any benami property under the BenamiTransactions (Prohibition) Act, 1988 (45
of 1988) and rules made thereunder.

ix) The Company does not have any loans from banks or financial institutions.

x) Wilful Defaulter : the Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

xi) The Company does not have transactions or relationship with Struck off Companies.

xii) Registration of charges or satisfaction with Registrar of Companies:- There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.

xiii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules,
2017.

xiv) Detailed Ratio analysis given in note number 39.

xv) There are no Scheme of Arrangements as on March 31, 2025.

xvi) Utilisation of borrowings availed from banks :-

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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:

a. 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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Note No 41. Additional information to be disclosed by way of Notes to Statement of Profit and Loss

i) The Company does not have any undisclosed income as on March 31, 2025.

ii) The Company does not have any Crypto Currency or Virtual Currency as on March 31, 2025.

Note No. 42. Events occurring after the Balance Sheet Date : -

There are no events occurring after Balance Sheet date in respect of the year ended 31 March 2025.

Note No. 43. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015

A. Loans and advances in the nature of loans
To Joint Venture : Nil

To Wholly Owned Subsidiary : Nil

B. Investment by the loanee : Nil

Note No. 44. Certain Prior year amounts have been reclassified for consistency with the current period presentation. These reclassification have no effect on the reported results of operations.

For Ajay Rattan & Co. For and on behalf of the Board of Directors of

Chartered Accountants Kotia Enterprises Limited

(Firm Registration No.012063N)

CA Ajay AggarwalU Manoj Kumar Bansal Vikas Bansal

Partner Managing Director & CFO Director

Membership No. 0909750 DIN: 00272806 DIN: 07094135

UDIN: 25090975BOEOLG7410

Place : New Delhi Ankit Bhatnagar

Dated : 30.05.2025 Company Secretary

M.NO: 42170


 
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