Provisions and Contingent Liabilities
A Provision is recognised when the entity has a present obligation as a result of past event and it is probable that an outflow
of resources will be required and a reliable estimate can be made of the amount of the obligation. Provisions are measured
at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the entity or a present obligation that arises from past events where it is either not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount cannot be made. A Contingent asset is neither
recognised nor disclosed.
Revenue Recognition
Revenue from sale of goods is recognised when control and significant risks and rewards of ownership of the products being
sold is transferred to the customer. This is generally fulfilled at the time of dispatch, delivery or upon formal customer
acceptance depending on customer terms. Revenue is measured on the basis of contracted price, after deduction of any
trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as goods and services
tax, etc. Previous experience is used to estimate the provision for such discounts and rebates. Revenue is only recognised to
the extent that it is highly probable a significant reversal will not occur. Income from services rendered is recognised based
on agreements/arrangements with the customers as the service is performed and there are no unfulfilled obligations.
Interest income is recognized on accrual basis, adopting a time proportion method, taking into account the amount
outstanding and the rate applicable. Dividend income on investments is accounted for when the right to receive the income
is established. Export incentives are recognised on accrual basis to the extent the management is certain of the income.
Employee Benefits
Short-term employee Benefits
Benefits such as salaries, wages and performance incentives are charged to the statement of profit and loss at the actual
amounts due in the period in which the employee renders the related service.
Defined Contribution Plans
Payments made to defined contribution plans such as provident and pension fund are charged as an expense based on the
amount of contribution required to be made as and when services are rendered by the employees.
Defined Benefit Plans
All defined benefit plans obligations are determined based on valuations, as at the Balance Sheet date, made by independent
actuary using the projected unit credit method. Actuarial gains and losses are recognised immediately in the statement of
profit and loss. The fair value of the plan assets is reduced from the gross obligation under the defined benefit plan, to
recognise the obligation on net basis.
Other Long-term Employee Benefits
Other long-term employee benefits include leave encashment. Leave encashment is recognised as an expense in the
statement of profit and loss as and when it accrues on actuarial basis.
Foreign Currency Transactions
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions are recognised in the statement of profit and loss.
Foreign currency denominated monetary assets and liabilities are translated into functional currency at exchange rates in
effect at the balance sheet date, the gain or loss arising from such translations are recognised in the statement of profit and
loss.
Taxes on Income
Income tax expense for the year comprises of current tax and deferred tax.
Current tax
Current tax is the estimated amount of tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date. Minimum Alternate Tax (MAT) is accounted as Current tax when the taxes
calculated as per Book profits are greater than the taxes calculated as per normal provisions of Income Tax. Credit for such
MAT is availed when the entity is subjected to normal tax provisions in the future. MAT credit Entitlement is recognised as an
asset based on the management's estimate of its recoverability in the future.
Deferred tax
Deferred tax is recognised in respect of timing differences between the carrying amount of assets and liabilities for financial
reporting purposes and the corresponding amounts used for taxation purposes.
A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax assets
are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be
utilised except for deferred tax assets in respect of tax losses, where they are recognised only to the extent the management
is virtually certain as to the sufficiency of future taxable income. Deferred tax assets are reviewed at each reporting date and
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Earnings per Share
In determining earnings per share, the Company considers the net profit after tax attributable to equity shareholders. The
number of shares used in computing basic earnings per share is the weighted average number of equity shares outstanding
during the year. The number of equity shares used in computing diluted earnings per share comprises weighted average
number of equity shares considered for deriving basic earnings per share and also weighted average number of equity shares
which could have been issued on the conversion of all dilutive potential equity shares.
Equity Shares
The Company has issued only one class of equity shares having a par value of Rs. 10 per share. Each equity shareholder is
entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
Any dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend.
Preference Shares
The Company has issued fully paid up 20 lacs .01% non convertible preference shares having a par value of Rs. 100 each.
NCRCPS shall carry a pre-determined cumulative dividend rate of .01% per annum.The dividend shall be payable, subject to
cash flow solvency, in the event the Board declares any dividend for the relevant year and shall be paid to the Investors in
priority to other classes of Shares. The Company shall redeem the NRCCPS on or before 20 years from the date of Allotment
at par on the Face Value of the preference Share with the approval of the Company and the Shareholder. NCPRS are not
entitled to participate in addition to and after payment of preference dividend to participate pari passu in the surplus
fund.NCRCPS held by the Investor shall not be entitled to receive surplus assets and profit on winding up which may remain
after entire capital has been repaid.Subject to applicable provision of the Companies Act, 2013, the holders of the preference
share shall be entitled to receive notice of and vote on all matters that are submitted to the vote of the Shareholders of the
Company (including the holders of Equity Shares) in accordance with Section 47 of the Companies Act, 2013.
36. Other Disclosures
Disclosure requirements as notified by MCA pursuant to amended Schedule III:
- The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
- The Company does not have any Benami Property under Prohibition of Benami Property Transactions Act, 1988.
- The Company has not been declared a wilful defaulter by any lender who has powers to declare a company as a wilful
defaulter.
- The Company has no Scheme of Arrangement approved by the competent authority specified under Section 230 to 237 of
the Companies Act, 2013.
-Previous Period figures have been re-grouped / re-classified, wherever necessary, to make them comparable with Current
Period's classification.
-The company has only one reportable business segment which is wholesale trading of hardware tools. The entire operations
are governed by the same set of risks and return hence have been considered as representing a single segment. The said
treatment is in accordance with the guiding principles enunciated in the Accounting Standards Segment Reporting AS 17.
-The Company has not recognised any loss on impairment in respect of assets of the Company as is required in terms of
Accounting Standard 28 on 'Impairment of Assets', since in the opinion of the management of the Company, the reduction in
value of any asset if any, to the extent required, has already been provided for in the books.
-Debit and credit balances of trade payables, trade receivables, loans and advances to the extent not confirmed are subject
to confirmation and reconciliation with the parties as at March 31, 2025.
-As per the requirement of Schedule III, the Board of Directors have considered the values of all assets of the Company other
than fixed assets, and have come to a conclusion that these have a value on realisation in the ordinary course of business
which is not less than the value at which they are stated in the balance sheet.
-Past years TDS, TCS have been adjusted in the books. The same has been adjusted as per the various Assesment Orders. The
amount to be recovered from the Income Tax Authority has been shown under the head 'Loans and Advances'.
-The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was
obtained.
-The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
-The Company does not have 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 assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961.
-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.
-The company has not owned any immovable property as at balance sheet date.
-The company has not revalued its Property, Plant and Equipment during the year.
-The company has not given any Loans or Advances to its promoters, directors or related parties.
-The company has availed discounting of purchase bills facility from SG Finserve Limited, a listed registered NBFC which has
been shown as Unsecured Loan from other than related parties in the audited financials.
-The financial results of the company has been reviewed and recommended by the audit committee and approved by the
board of directors in their meeting held on 30th May 2025.
-As per the Ministry of Corporate Affairs Notification dated February 16, 2015, Companies whose securities are listed on SME
Exchange as referred to in Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009 [ICDR, 2009] are exempted from the compulsory requirement of adoption of Ind AS.
-The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
-The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
-Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are not in
agreement with the books of accounts and summary of reconciliation and reasons of material discrepancies is attached as
Annexure 1.
-No Investor Complaints pending at beginning of the Period and no complaint were received during the Period and pending
for disposal at the end of the Period.
- The company has invested in Deneers Tools Trading LLC - Dubai by purchasing 297 Equity shares of AED 333.33 each valued
AED 99000 but the approval from RBI is pending as on 31st march 2025.
As per our report of even date attached
For Gautam Sehgal & CO. For and on behalf of Board of Directors
Chartered Accountants
Firm Regn No : 015736N
Neeraj Kumar
Gautam Sehgal Bhagyashree Periwal Kanav Gupta Aggarwal
CFO & Whole time
Partner Company Secretary Managing Director
Director
Membership No : 095938 M No : A 50954 DIN : 06802701 DIN : 08058134
Place : Delhi
Date : May 30, 2025
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