(v) Provisions, contingent liabilities and contingent assets
(IND AS 37)
a) Provisions
The provisions are recognised and measured by using a substantial
degree of estimation
Provisions are recognized in the balance sheet when the Company
has a present obligation (legal or constructive) as a result of a past
event, which is expected to result in an outflow of resources
embodying economic benefits which can be reliably estimated.
Each provision is based on the best estimate of the expenditure
required to settle the present obligation at the balance sheet date.
Constructive obligation is an obligation that derives from an
entity's actions where:
(i) by an established pattern of past practice, policies or a sufficiently
specific current statement, the entity has indicated to other parties
that it will accept certain responsibilities and;
(ii) as a result, the entity has created a valid expectation on the part of
those other parties that it will discharge such responsibilities.
(b) Contingent liabilities
Contingent liabilities are disclosed after a careful evaluation of the
facts and legal aspects of the matter involved in the issue.
(c) Contingent assets
Contingent assets are disclosed after a careful evaluation of the facts
and legal aspects of the matter involved in the issue.
(vi) Fair value measurements of financial instruments (IND AS 32)
The company has no financial instruments / investments hence fair value
measurement is not applicable.
(vii) Employee Benefits and Retirement obligations (IND AS 19)
a) Defined Contribution Plan
The state governed Provident Fund Scheme, Employees State
Insurance Scheme and Employee Pension Scheme are defined
contribution plans. The contribution paid / payable under the schemes
are recognised during the year in which the employee renders the
related services.
b) Defined Benefit Plan/ Long Term Compensated Absences.
The company's Employees Gratuity Fund Scheme managed by the
LIC of India is a defined plan. The present value of obligations based
on past experience and actual valuation done by LIC read with the
compliance of applicable IND AS in this regard has been considered
and provided in the financial statements. Since the valuation by LIC is
based on their vast experience at actuals , no acturial valuation is
done by the management.
c) Compensated Absences
The company has provided for the actual leave encashment liability
at the balance sheet date based on permissible accumulated leave
balance of the employees at the last salary drawn as per company
rules.Since leave encashment liability at actual is fully provided , no
actuarial valuation is done by the management .
2.02 Property, plant and equipment (IND AS 16)
Tangible and intangible property,plant and equipment are stated at cost
less accumulated depreciation and impairment.Cost includes all direct
costs and expenditure incurred to bring the asset to its working condition
and location for its intended use. Related trial run expenses (net of
revenue), borrowing cost during constuction/irrection period and
commisioning are capitalised where ever and whenever applicable. The
gain or loss arising on disposal of an item of property, plant and equipment
is determined as the difference between sale proceeds and carrying
value of such item, and is recognized in the statement of profit and loss.
2.03 Depreciation and amortization of property, plant and equipment and intangible
assets
(a) Depreciation is provided under straight line method (SLM) to the
extent depreciable based on the usefull life of most of the assets as
prescribed in Schedule II of the Companies Act, 2013
(b) Depreciation on Intangible assets is provided onstraight line method
(SLM) and amortised over 5 years of its useful life.
(c) Depreciation on additions is provided on pro-rata basis from the date
of intended use.Depreciation on deletions is provided on pro-rata
basis till the date of its effective use.
(d) No depreciation has been provided on fixed assets where written
down value has reached to 5% of the original cost and also on
fixed assets not put to use.
2.04 Leases (IND AS 17)
a) The company's '95 years Leasehold Land at MIDC Aurangabad was
aquired on annual economic rent of Rupee One in 1974.
b) The company has taken a CNC hob re sharpning ( Luren Taiwan
make) machine from Marathwada Auto Cluster, Waluj, Aurangabad
on annual fixed rent of Rs.12 lakhs for a period of 10 years on interest
free refundable deposit vide agreement dated 9th July 2022 with
minimum lock in period of 3 years with an option to extend the
agreement or buy the said machine at mutually agreed terms.
2.05 a) Financial assets
(i) Cash and bank balances
Cash and bank balances consist of
(i) Cash and cash equivalents includes cash in hand, balances held
with banks which are readily convertible into known amounts of
cash, are subject to an insignificant risk of change in value . These
balances with banks are unrestricted for withdrawal and usage.
(ii) Other bank balances which includes balances and deposits with
banks that are restricted for withdrawal and usage.
i(i) Other financial assets are taken at cost or net realisable value as the
case may be.
205 b) Financial Liabilities
Trade and other payables / liabilities
(i) Trade and other payables / liabilites are initially measured at fair
value / cost as recorded in the books.
(ii) Interest bearing bank loans, overdrafts ,term liabilites and other debts
are initially measured at fair value / cost as recorded in the books
using the effective interest rate method. Any difference between the
proceeds (net of transaction costs) and the settlement or redemption
of borrowings is recognized over the term of the borrowings in the
statement of profit and loss.
(iii) The company de-recognizes financial liabilities when, and only when,
the Company's obligations are discharged, cancelled or they expire.
2.06 Inventories - (IND AS 02)
(i) Inventories of finished goods and scrap are stated at the lower of cost
and net realizable value. Cost is ascertained on a weighted average
basis in respect of raw materials. Costs comprise direct materials
and, where applicable, direct labour costs and those overheads that
have been incurred in bringing the inventories to their present
location and condition in respect of work in progress. Net realizable
value is the price at which the inventories can be realized in the
normal course of business.
(ii) Stores and spare parts are carried at lower of cost and net realizable
value.
(iii) Provisions are made to cover slow moving and obsolete items based
on historical experience of utilization on a product category basis,
which involves individual businesses considering their product lines
and market conditions.
(iv) However, based on above, the inventories are valued as under
(a) Raw materials are valued at cost.
(b) Work in Progress is valued at raw material cost overheads.
(c) Finished Goods are carried at lower of cost or market value which
ever is less
(d) Stores are valued at cost.
(e) Tools and Spares are valued at cost .
(f) Scraps are valued at realisable value
2.07 Non-current assets held for sale and discontinued operations
The company had classified as non current fixed assets held for sale at
scrap value as mentioned in note to financial statements under the head
Property, Plant and Equipments in year FY 19 and FY 23 and has written
off as impairment under the head depreciation, amortisation, impairment
in FY 2020 and FY 2023 due to obsolescence and thus impaired value of
such assets have been considered at net realisable scrap value and is
shown as other current assets
The company has not discontinued any operations during the year.
2.08 Revenue from operations.
(i) Sales and other operational income
Revenue from sale of goods is recognised when the company has
transferred to the buyer the significant risks and rewards of
ownership and no longer retains control over the goods sold.The
amount of revenue can be measured reliably.It is probable that the
economic benefits associated with the transaction will flow to the
company and the costs incurred or to be incurred in respect of the
transaction can be measured reliably.Depending on the contractual
terms, risks and rewards of ownership is transfered when the
delivery is completed. In case of exports, sale delivery is completed
on issuance of bill of lading/air way bill.
(ii) Other income
(a) Interest income is accrued on time proportion basis by reference to
the principal outstanding and effective interest rate applicable.
(b) Other income viz exchange gain/ loss , misc. receipts, bad debts
recovery etc. are accounted on generally accrual basis except
recovery of bad debts, misc receipts which are accounted on receipt
basis
209 Foreign currency transactions and translations
Foreign currency transactions are recorded at exchange rates prevailing
on the date of the transaction. Foreign currency denominated monetary
assets and liabilities are re-translated at the exchange rate prevailing on
the balance sheet date and exchange gains and losses arising on
settlement and re-statement are recognised in the statement of profit and
loss. Non-monetary assets and liabilities that are measured in terms of
historical cost in foreign currencies are not re-translated.
Assets and liabilities with functional currency other than the functional
currency of the Company have been translated using exchange rates
prevailing on the balance sheet date and such profit or loss arising on
translation of such items has been charged to profit and loss account and
no translation reserve has been created as there no such assets or
liabilities having impact during the year.
2.10 Borrowing costs (IND AS 23)
Borrowing costs that are attributable to the acquisition, construction or
production of qualifying assets are capitalized as a part of such assets till
such time as the assets are ready for their intended use. Qualifying
assets are assets that necessarily require a substantial period of time to
get ready for their intended use. All the other borrowing cost is recognized
as an expense on accrual basis.
2.11 Earnings per share (IND AS 33)
Basic/Diluted earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items, if any)
by the number of equity shares outstanding during the year.
2.12 Segment reporting (IND AS 108)
The company's main product lines are in gear cutting tools viz. gear hobs
and miling cutters which contributes over 93% of its revenue. The
contribution from the balance operation viz. spline guage is mostly
involving common processes and use of the same machineries of main
product lines and thus the company's operations is considered as a
single segment.
2.13 Change in Accounting Policy (IND AS 8)
There is generally no change in accounting policy.
13 Additional regulatory Information
a) The Company does not have any Benami property, where any proceeding
has been initiated or pending against the Company for holding any Benami
property.
b) The Company has utilised the funds towards the purposes for which the
said loans were raised.
c) The Company has not been declared a wilful defaulter by any bank or
financial institution or government or any government authority
d) The Company has not entered into any type of transactions with companies
struck off.
e) The Company does not have any pending charges or satisfaction which are yet
to be registered with Registrar of Companies beyond the statutory period.
f) The Company is in compliance with number of layers of companies as
prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on Number of Layers) Rules, 2017.
g) The Company has not entered into any scheme of arrangement which has an
accounting impact on current or previous financial year.
h) 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 Group 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.
i) 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:
(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.
j) Title deeds of immovable property are held in the name of the Company.
k) The Company has not revalued its Property, Plant and Equipment for the
current year
l) The Company has not traded or invested in Crypto currency or Virtual
Currency during the financial year
m) The Company has not any such transaction which is not recorded in the
books of account that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act,
1961
n) The Company is not covered under section 135 of the Companies Act
regarding CSR activities.
o) Capital work in progress for the current year of the company.
Plant & Machinery 301.70
Building 32.72
p) There has been no
q) There are no Intangible assets under development in the current year.
14. Company Secretary
The company has a qualified Company Secretary as required under Section
203(1)(ii) of Companies Act, 2013.
15. Confirmation of Balances
Balance confirmation for Trade Receivables and Trade Payables were sent by
the company and necessary rectification on reconciliation where ever required
has been incorporated in the financials. In case of balances of Trade
Receivable and Trade Payables where confirmation has not received balance
of those parties are subject to reconciliation and confirmation. Confirmation in
respect of unsecured loans have been obtained, checked, verified and found
correct.
16. Figures for previous year have been rearranged/regrouped wherever
necessary
The accompanying notes form an integral part of the Standalone Financial
Statements
As per our report of even date attached
For R. K. JAGETIYA & CO.
CHARTERED ACCOUNTANTS Chief FinS Officer
& Whole-time Director
(DIN : 00902536
(R. K.JAGETIYA) _
PROPRIETOR (Prashant C. Wadile)
Membership No. : 134691 Whole - time Director
Firm Regn. No. : 146264W DIN : 08010243
UDIN : 25134691BMGTEI1691
(Bharati Bafna)
Director
DIN : 01089137
Place : MUMBAI
Dated : 27th May, 2025 _ (Sonam Dubey)
Company Secretary
(ACS 57121)
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