k. Provision, Contingent Liabilities and Contingent Assets:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a 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.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying
amount is the present value of those cash flows (when the effect of the time value of money is material). If the time
value of money is material, Provisions are discounted using pre-tax discount rate and when discounting is used,
increase in the provision with the passage of time is recognized as a finance cost in the statement of Profit and Loss
account.
A contingent liability is (a) a possible obligation that arises from past events and whose existence 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 (b) a present obligation that arises from past events but is not recognized because (i) it is not probable that
an outflow of resources embodying economic benefits will be required to settle the obligation or (ii) the amount of
the obligation cannot be measured with sufficient reliability.
Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an
outflow of resources embodying economic benefit is remote.
l. Critical accounting judgments, assumptions and Key sources of estimation uncertainty:
The preparation of the Company's financial statements requires management to make judgments, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and
assumptions are continuously evaluated and are based on management's experience and otherfactors, including
expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.
Key source of judgments, assumptions and estimates in the preparation of the Financial Statements which may
cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in
respect of useful lives of Property, Plant and Equipment, impairment, employee benefit obligations, provisions,
provision for income tax, measurement of deferred tax assets and contingent assets & liabilities.
Information about estimates and assumptions that have the significant effect on recognition and measurement of
assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.
(i) Determination of the estimated useful life of tangible assets and the assessment as to which components
of the cost may be capitalized.
Useful life of tangible assets is based on the life prescribed in Schedule II of the Companies Act, 2013. In cases,
where the useful life is different from that prescribed in Schedule II, it is based on technical advice, taking into
account the nature of the asset, estimated usage and operating conditions of the asset, past history of replacement
and maintenance support. An assumption also needs to be made, when the Company assesses, whether an asset
may be capitalized and which components of the cost of the asset may be capitalized.
(ii) Recognition and measurement of defined benefit obligations:
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations being carried out at reporting date. An actuarial valuation involves making various assumptions
that may differfrom actual developments in the future. These include the determination of the discount rate, Salary
escalation rate, expected rate of return on asset and mortality rates. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate, in determining the appropriate discount rate, the
management considers the interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for the specific
countries. Those mortality tables tend to change only at interval in response to demographic changes. Future
salary increases and gratuity increases are based on expected future inflation rates for the respective countries.
(iii) Recognition of income taxes:
Significant judgments are involved in determining the provision for income taxes, including amount expected to
be paid/recovered for uncertain tax positions as also to determine the amount of deferred tax that can be
recognized, based upon the likely timing and the level of future taxable profits.
(iv) Recognition of Deferred tax assets:
Deferred Tax Assets (DTA) are recognized for al! the deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary difference can be utilized.
Management judgment is required to determine the amount of deferred tax assets that can be recognized, based
upon the likely timing and the level of future taxable profits.
(v) Recognition and measurement of provisions:
Provisions and lia bilities are recognized in the period when it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability requires the application of judgment to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed
regularly and revised to take account of changing facts and circumstances.
(viii) Allowance for impairment of trade receivable:
The expected credit loss is mainly based on the ageing of the receivable balances and historical experience. The
receivables are assessed on an individual basis assessed for impairment collectively, depending on their
significance. Moreover, trade receivables are written off on a case-to-case basis if deemed not to be collectible on
the assessment of the underlying facts and circumstances
Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March 2025,
MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
1) The Company has elected to continue with the carrying value of its intangible assets recognised as of April 1,2016
(transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the
transition date as per Para D7AAof Ind AS 101.
2) The aggregate amortisation charge for the year has been included under depreciation and amortisation expense in
the Statement of Profit and Loss. Refer note; 32
17.3 Right, Preferences and restrictions attached to Shares
Equity shares
The Company has only one class of equity shares having a par value of ? 10/- per share. Each holder of equity
shares is entitled to one vote per share. Any dividend declared by the company shall be paid to each holder of
Equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the
event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of
the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
18.2 Securities Premium : represents the amount received in excess of par value of securities i.e equity shares.
Section 52 of Companies Act 2013 specify restriction and utilisation of security premium.
18.3 Capital Reserve: represents the amount due to remission of capital liability on one time settlement from Financial
Institution during the year 2001 -02.
18.4 General Reserve : General reserve is created from time to time by way of transfer of profits from retained
earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to
anotherand is notan item of other comprehensive income.
18.5 Other Comprehensive Income Reserve : represents cumulative gains and losses arising on the
remeasurement of defined benefit plans in accordance with IndAS 19 and the cumulative gains and losses arising
on the revaluation of equity instruments measured at FVTOCI.
18.6 Retained Earnings: represents the undistributed profits of the Company.
37 Contingent Liabilities and Commitment: - (To the extent not provided only)
a) Contingent Liabilities not provided for ? Nil (P.Y. ? Nil)
b) Estimated amount of contracts remaining to be executed (Net of Advances)? 13.72 (P.Y. ? Nil)
38 INDAS115 Disclosure
The company is engaged in business of manufacturing of Tungsten Carbide products used in metal cutting, mining,
wear parts. Revenues are recognized when control of the goods and services are transferred to the customer at an
amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and
services. In determining the transaction price for the sale of products, the company considers the effects of variable
consideration, and consideration payable to the customer. Generally, Company enters into contract with customers;
a) On Delivery Basis
b) On EX-Factory basis.
(ii) Defined Benefit Plan - Gratuity
The Company provides for gratuity benefit under a defined benefit retirement scheme (the "Gratuity Scheme")as laid
out by the Payment of Gratuity Act, 1972 of India covering eligible employees. The Gratuity Scheme provides for a
lump sum payment to employees who have completed at least five years of service with the Group, based on salary
and tenure of employment. Liabilities with regard to the gratuity scheme are determined by actuarial valuation carried
out using the Projected Unit Credit Method by an independent actuary. The Gratuity liability is funded by payment to
the trust estblished with Life Insurance Corporation of India.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the
stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the
closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. There are no transfers between levels 1 and 2 during the year. The Company’s policy is to recognize transfers
into and transfers out of fair value.
Valuation technique used to determine fair value
(ii) Specific valuation techniques used to value financial instruments include:
- The company has invested in the equity instruments of company. The valuation exercise of unquoted equity
instruments carried out by the company with the help of an estimated fair value at each reporting period based on
available historical annual reports and other information in the public domain.
- Changes in Level 3 fair value are analysed at the end of each reporting period.
43. The Company has exposure to the following risks arising from financial instruments:
- Credit risk.
- Liquidity risk, and
- Market risk
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically to
reflect changes in market conditions and the Company's activities. The Company monitors compliance with the
company's risk management policies and procedures, and reviews the adequacy of the risk management framework
in relation to the risks faced bytheCompany.
i) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company’s receivables from customers,
deposit and other receivables. Credit risk is managed through continuous monitoring of receivables and follow
upofoverdues.
Trade receivables:
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer,
demographics of the customer, default risk of the industry and country in which the customer operates, Credit
risk is managed through credit approvals, establishing credit limits, and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose,
the Company uses a simplified approach to compute the expected credit loss amount. The provision takes into
account external and internal risk factors and historical data of credit losses from various customers.
Except for trade and other receivables, the Company does not hold any otherfinancial assets that are past due but not
impaired
ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The
Company ensures that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed condition.
Maturities of Financial Liabilities
The table herewith analyse the Company's Financial Liabilities into relevant maturity groupings based on their
contractual maturities for:The amount disclosed in the table are the contractual undiscounted cash flow,
Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant.
iii) Market risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
borrowings, deposits, Investments, trade and other receivables, trade and other payables.
44. Capital management
The Company’s capital management objectives are:
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its
business and maximise shareholder vaiue.To provide an adequate return to shareholders through optimization of
debts and equity balance.
45 Use of Estimates and Judgments
The preparation of the Company's Financial Statements requires the Management to make judgments, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected. In particular,
information about significant areas of estimation uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognized in the financial statements is included in these notes.
47 The Company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.
48 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
49 There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the
Companies Act, 2013.
50 The Company have not traded or invested in Crypto currency or Virtual Currency during the period/year.
51 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 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.
52 The Company have not received any fund from any person(s)orentity(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.
53 The Company has no 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).
54 The Company does not have any Immovable Property whose title deeds are not held in the name of Company.
55 The Company is not declared as wilful defaulter by any Bank or Financial Institution or other lender.
56 The previous year's figures have been regrouped wherever necessary to make them comparable with the current
year.
57 The Company has sought balance confirmations from trade receivables and trade payables, wherever such
balance confirmations are received by the Company, the same are reconciled and appropriate adjustments if
required, are made in the books of account.
58 The Company does not have any transaction with struck-off Companies.
59 Approval of Financial Statements
The Financial Statements were approved for issue by the Board of Directors on 15th May, 2025.
As per our report of even date attached For and Qn behalf Qf the Board
For K. C. Mehta & Co. LLP
Chartered Accountants Dhananjay D Kanitkar Abhishek V. Garni
Firm’s Registration No. 106237W/W100829 Chairman & Non-Executive Director Managing Director
M DIN: 03523774 DIN: 07570948
Chhaya M. Dave
Partner Chetan N. Nayak
Membership No. 100434 Chief Financial Officer
Kamlesh M Shinde
Place : Ankieshwar Place : Ankleshwar Company Secretary
Date : 15th May, 2025 Date: 15th May, 2025 M. No.: A35836
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