l) Provisions:
A provision is recognized when the company has a present obligation 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 reliable estimate can be made of the amount of
the obligation. Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.
Where the company expects some or all of a provision to be reimbursed, for
example under an insurance contract, the reimbursement is recognized as a separate
asset but only when the reimbursement is virtually certain. The expense relating to any
provision is presented in the statement of profit and loss net of any reimbursement.
Provisions are reviewed on each Balance sheet date.
m) Retirement and other employee benefits:
(i) Retirement benefit in the form of provident fund is a defined contribution scheme. The
contributions to the provident fund are charged to the statement of profit and loss for the
year when the contributions are due. The company has no obligation other than the
contribution payable to the provident fund.
(ii) In Compliance with accounting standard-15, issued by Institute of Chartered
Accountants of India, regarding the provisions of retirements benefit, the company has
made the provision gratuity based on actuarial valuation. During the FY 2023-24, the
company has recognized the provision for Gratuity amounting to Rs. 11,87,266/-.
The following table summarize the components of net benefit expense recognized in the
Profit & Loss account and the funded status and amount recognized in the balance sheet
for the respective plan. These calculations are based on the actuarial valuation required
as per AS-15.
(ii) In Compliance with accounting standard-15, issued by Institute of Chartered
Accountants of India, regarding the provisions of retirements benefit, the company has
made the provision Leave Encashment based on actuarial valuation. During the FY
2023-24, the company has recognized the provision for Leave Encashment amounting to
Rs. 10,45,856/-.
The following table summarize the components of net benefit expense recognized in the
Profit & Loss account and the funded status and amount recognized in the balance sheet
for the respective plan. These calculations are based on the actuarial valuation required
as per AS-15.
n) Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or nonoccurrence 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 an outflow of resources will be required to the
settle the obligation. A contingent event also arises in extremely rare cases where there is
a liability that cannot be recognized because it cannot be measured reliably. The company
does not recognize a contingent liability but disclose its existence in the financial
statements.
Contingent liabilities & Assets are reviewed at each Balance Sheet date.
o) Cash & cash equivalent:
Cash & cash equivalent for the purpose of cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity of three
months/less.
p) Related party transactions:
i) The following table provides the total amount of transactions that have been
entered into with related parties for the year ended 31.03.2024: -
q) Events occurring after balance sheet dates
No significant events which could affect the financial position as on 31st March, 2024,
to a material extent have been reported after the balance sheet date.
r) Prior period and extra ordinary items:
There are no material changes or credits which arise in current period, on account of
errors or omissions in the preparation of financial statements for one or more periods.
The company has recorded Leave Encashment as prior period item amounting to
Rs.4,78,655/- as per actuary valuation.
s) Preliminary expenses:
Preliminary Expenses of the company are amortized equally over a period of 5 years.
t) Dues to Small Scale undertakings:
Based on the information available with the company, there are certain outstanding
dues to small scale undertakings as at the year end. The information as required to be
disclosed under the micro, Small and medium Enterprise Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of
information available with the company.
u) foreign currency transactions: -
1) The reporting currency of the company is Indian rupee (INR).
2) Foreign currency transactions are recorded on initial recognition in the
reporting currency, using exchange rate at the date of the transactions. At each
balance sheet date, foreign currency monetary items are reported using the
closing rate. There are no non-monetary items which needs to be reported. An
exchange differences that arise on settlement of monetary items or on reporting
of monetary items at each balance sheet date at the closing rate are:
i) Adjusted in the cost of fixed assets specifically attributable to it, as per
provisions of Accounting Standard 11 issued by Ministry of Corporate
Affairs read with Accounting Standard Rules, 2006 as amended from
time to time.
ii) Recognized as income or expenses in the period in which they arise, in
case other than above.
iii) The Company has taken a External commercial Borrowing from DMG
Mori Finance GMBH for purchase of 5 Axis machine from DMG Mori.
The said loan is secured against the hypothecation of the said asset.
The amount of borrowing is INR 1,59,45,102/- (€ 1,86,870.54). The
borrowing is to be repaid over the period of 61 EMIs.
As per AS-11, the exchange difference arising on account of long-term foreign currency
monetary item in so far as they relate to acquisition of a depreciable capital asset, can be
added to or deducted from the cost of the asset. Accordingly, the foreign exchange
difference arising on account of principal repayment in adjusted in the Cost of the asset.
Similarly, foreign exchange difference arising on account of Interest booked is of revenue
nature and hence, routed through Profit & Loss account.
During the year the company has following Foreign Currency Inflow and outflow: -
Foreign Currency Inflow: - Rs. 2,79,02,929/-
Foreign Currency Outflow: - Rs. 72,06,387/-.
v) In accordance with the requirements of Accounting Standard 17, “Segmental
Reporting”, the company has only one reportable business segment which is a business
of undertaking projects involving Designing and manufacturing of tooling and
automation systems for defense and aviation industry and general-purpose automation
systems. And hence no separate disclosure pertaining to attributable Revenues, profits,
assets, Liabilities and capital employed are given.
w) Certain Trade Receivables, Advances and Trade Payables as at 31st March, 2024 are
subject to confirmations of balances and reconciliations with the respective parties, the
impact of which is not ascertained. The financial statements do not include the impact of
adjustments, if any, which may arise out of the confirmation and reconciliation process.
x) Lease: - The company has taken the premises on the operating lease and entered into
Leave and License agreement with various parties. An amount of Rs. 1,03,56,206 has
been recognized as Lease/Rent Expense in the statement of Profit & Loss for the year
ended 31st March, 2024.
y) Deferred Revenue Expenditure: - During the year, the company has recognized the
Deferred Revenue Expenditure amounting to Rs. 2,18,21,117/-. But considering the
nature of expenses and the benefits derived in the current period, company has
debited the same to profit & Loss account during the period.
z) Other Statutory Information: -
1. The company do not have any Benami Property, where any proceeding has been
initiated or pending against the company for holding any benami property.
2. The company does not have any charges or satisfaction which is yet to be registered
with ROC beyond the statutory period.
3. The company has not been declared as willful defaulter by any bank or financial
institutions or any other lender.
4. During the audited period, the company has not revalued its Property, Plant and
Equipment.
5. The company have not traded or invested in Crypto Currency or Virtual Currency
during the audited period.
6. The company have not advanced or loan or invested funds to any other person(s) or
entity(ies), including foreign entities (intermediaries) with the understanding that the
intermediaries shall :
i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the company. (ultimate beneficiaries); or
ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.
7. The company have not received any 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:
i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the funding party. (ultimate beneficiaries); or
ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.
8. The company have not done any such transaction which is not recorded in the books
of accounts that has been surrendered or disclosed as income during the year in the tax
assessment under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provision of the Income Tax Act, 1961.)
9. Based on the Information available with the company, the company do not have any
transaction with the companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.
10. The remuneration to Auditors includes the following: -
11. The previous year figures are regrouped & rearranged wherever required.
TECHERA ENGINEERING (INDIA) LTD
NIMESH RAMESHCHANDRA DESAI
MANAGING DIRECTOR.
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