q. Provisions and contingent liabilities
The Company creates a provision when there is
present obligation (legal or constructive) as a result
of past events that probably requires an outflow of
resources and a reliable estimate can be made of the
amount of obligation.
Contingent liabilities are disclosed in respect of
possible obligations that arise from past events,
whose existence would be confirmed by the
occurrence or non-occurrence of one or more
uncertain future events. Contingent assets are
neither recognised nor disclosed in the financial
statements.
r. Impairment of non financial assets
As at each reporting date, the Company assesses
whether there is an indication that a non-financial
asset may be impaired and also whether there is an
indication of reversal of impairment loss recognised
in the previous periods. If any indication exists, or
when annual impairment testing for an asset is
required, the Company determines the recoverable
amount and impairment loss is recognised when the
carrying amount of an asset exceeds its recoverable
amount. If the amount of impairment loss
subsequently decreases and the decrease can be
related objectively to an event occurring after the
impairment was recognised, then the previously
recognised impairment loss is reversed through the
statement of profit and loss.
s. Leases
The Company, as a lessee, recognises a right-of-use
asset for its leasing arrangements, if the contract
conveys the right to control the use of an identified
asset.
The contract conveys the right to control the use of
an identified asset, if it involves the use of an
identified asset and the Company has substantially
all of the economic benefits from use of the asset and
has right to direct the use of the identified asset. The
cost of the right-of-use asset shall comprise of the
amount of the initial measurement of the lease
liability adjusted for any lease payments made at or
before the commencement date plus any initial
direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset.
t. Earnings Per Share
(i) Basic earnings per share is computed by dividing the
net profit or loss for the period attributable to the
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the period and for all
periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources.
(ii) For the purpose of calculating diluted earning per
share, the net profit or loss for the period
attributable to the equity shareholders and the
weighted average number of equity shares
outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.
u. Segment reporting
The Company publishes this financial statement
along with the consolidated financial statements. In
accordance with Ind AS 108, Operating Segments,
the Company has disclosed the segment information
in the consolidated financial statements.
e. Rights, preferences and restrictions attached to shares :
The company has one class of equity shares having a face value of Rs.10 each ranking paripasu in all respect
including voting rights and entitlement to dividend. Each holder of equity shares is entitled to one vote per share.
Dividend proposed by the board of directors and approved by the shareholders in the annual general meeting is
paid to the shareholders.
General reserve: The Company has transferred a portion of the net profit of the Company before declaring
dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to
general reserve is not required under Companies Act, 2013 and the Company can optionally transfer any amount
from the surplus of profit or loss to the General Reserve.
Retained earnings: Retained earnings are the profits that the Company has earned till date, less transfers to
general reserve, dividends or other distributions paid to shareholders.
Securities Premium Account: The amount received in excess of face value of the equity shares is recognized in
Securities Premium Reserve.
Remeasurement of defined benefit plans: The Company has recognized remeasurement gains/(loss) on defined
benefit plans in OCI. These changes are accumulated within the OCI reserve within other equity. The Company
transfers amount from this reserve to retained earning when the relevant obligations are derecognized.
The Board provides guiding principles for overall risk management as well as policies covering specific areas such
as foreign exchange risk, credit risk and investment of surplus liquidity.
A. CREDIT RISK :
Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial
loss to the Company. The maximum exposure of the financial assets represents trade receivables, work in
progress and other receivables.
In respect of trade receivables, the Company uses a provision matrix to compute the expected credit loss
allowances for trade receivables in accordance with the expected credit loss (ECL) policy of the Company. The
Company regularly reviews trade receivables and necessary provisions, wherever required, are made in the
financial statements.
B. LIQUIDITY RISK :
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet its commitments
associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly
at close to its fair value.
The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously
monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and
liabilities.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Such changes in the values of financial instruments may result from changes in
foreign currency exchange rates, interest rates, credit, liquidity and other market changes.
The Company has several balances in foreign currency and consequently, the Company is exposed to foreign
exchange risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and
follows established risk management policies.
(a) Interest Rate Risk :
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans
and borrowings.
(b) Interest Rate Sensitivity :
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings affected. With all other variables held constant, the Company's profit
before tax is affected through the impact on floating rate borrowings, as follows:
NOTE 34 : CAPITAL MANAGEMENT :
The Company's capital management objective is to maximize the total shareholders' returns by optimizing cost of
capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk
profile to maintain/enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term
strategic plans. The funding requirements are met through internal accruals and long-term/short-term
borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity
profile of the overall debt portfolio of the company.
B. The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favor of the lessee), disclosed in the financial statements included under Property,
Plant and Equipment are held in the name of the Company as at the balance sheet date.
C. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
D. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
E. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a
willful defaulter at any time during the financial year or after the end of reporting period but before the date when
the financial statements are approved.
F. The Company does not have any transactions with struck-off companies.
G. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act
2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
H. The company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.
I. The Company has 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 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 to or on behalf of the Ultimate Beneficiaries.
J. The Company does not have any transactions which is not recorded in the books of accounts but 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).
K. Quarterly returns or statements of current assets filed by the Company with banks are generally in agreement with
the books of accounts.
L. The Company has used the borrowings from banks for the specific purpose for which it was obtained.
M. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
N. The Company is operating under ERP environment which is fully integrated financial accounting and reporting
system. The management confirms that the accounting software used by the Company for maintaining books of
account has a feature of recording audit trail (edit log) facility which has been operated throughout the year for all
transactions recorded in the software and the audit trail feature is not being tampered with.
40. Balances for trade receivables, trade payables and loans and advances are subject to confirmations from the
respective parties.
41. All the amounts are stated in Rs. in lacs, unless otherwise stated.
42. Figures of previous years have been regrouped and rearranged wherever necessary.
The accompanying notes are integral part of these financial statements.
As per our report of even date
For P A R K & COMPANY For and on behalf of Board of Directors
Chartered Accountants HETAL KAPADIYA PIYUSH TAMBOLI JAINAM TAMBOLI
ASHISH DAVE Company Secretary Chairman & Whole Time Wredm &
Partner Managing Director CFO
DIN :00146033 DIN :07680976
Place : Bhavnagar
Date : 22nd May,2025
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