k) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present legal or statutory obligation or constructive obligation as
a result of past events and where it is probable that there will be outflow of resources to settle the obligation
and when a reliable estimate of the amount of the obligation can be made.
Contingent liabilities are recognized only when there is a possible obligation arising from past events due to
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or
where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources are provided for.
Contingent assets where it is probable that future economic benefits will flow to the Company are not
recognised but disclosed in the Financial Statements. However, when the realization of income is virtually
certain, then the related asset is no longer a contingent asset, but it is recognised as an asset
3.5 Title deed of Immovable property held in name of the company
The Company is the owner of Office Premises Unit no. 108/109 in T.V. Industrial Estate, Worli, Mumbai
- 30, Factory Shed on Survey No.22/1, Village Ringanwada, Kachigam Road, Nani Daman, Daman -
396210 & Flat No. 201 in Dharmesh Apartments in Daman. The title deeds ofthese immoveable properties
are held in the name of the Company.
The Company has taken certain premises on lease and lease agreements are duly executed in favour of the
Company.
3.6 Fair valuation of investment property
The Company did not own any investment property during the year.
3.7 Revaluation of Property, Plant & Equipment and Right of Use Assets
The Company has not revalued its Property, Plant & Equipment and Right of Use Assets during the year.
3.8 Revaluation of Intangible assets
The Company has not revalued its Intangible Assets during the year.
3.9 Intangible assets under development ageing Schedule Intangible assets under development
Completion Schedule
There is no intangible assets under development as on the date of Balance Sheet.
(vii) During the year, the Company has issued 10,19,475 equity shares of Rs. 10/- each at a premium of Rs.
73.70/- per share on preferential basis for various purposes including a) for meeting of expansion needs b)
for re-structuring of debt through payment of outstanding dues and c) for meeting the long-term working
capital requirements and general corporate purposes. The allotment of these shares was made on 23-1-2025.
The Company has utilised part of the funds raised through the preferential issue for the purpose of the issue
and has deployed part of the unutilised funds amounting to Rs.2.50 crores in the bank fixed deposits @ 6.90
% p.a and balance amount is lying in the account.
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.This is the case for unlisted equity securities included in level 3.
38 Financial Risk Management
The Company’s activities expose it to market risk (including currency risk, interest rate risk and other
price risk), liquidity risk and credit risk.This note explains the sources of risk which the entity is
exposed to and how the entity manages the risk :
The Company’s risk management is carried out by chief financial officer under policies approved by
the Board of Directors.Company's chief financial officer identifies, evaluates and hedges financial
risks in close co-operation with the Company’s operating units.The board provides principles for
overall risk management, as well as policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess
liquidity. The risk management includes identification,evaluation and identifying the best possible
option to reduce such risk. The Board has taken all necessary actions to mitigate the risks identified
on the basis of the information and situation present.
A. Market risk
i. Foreign Currency risk
Foreign currency risk arises from future commercial transactions and recognized assets or liabilities
denominated in a currency that is not the Company’s functional currency (INR). This is closely
monitored by the Management to decide on the requirement of hedging. The position of unhedged
foreign currency exposure to the Company as at the end of the year expressed in INR are as follows
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period
depends on the mixed of fixed rate and floating rate of the borrowings and the expected movement
of market interest rate. The Company has fixed rate as well as floating rate of interest borrowings
and therefore is exposed to interest rate risk.
Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss
to the Company.Trade receivables consist of large number of customers, spread across diverse
industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the
Company has an ongoing credit evaluation process in respect of customers who are allowed credit
period. In respect of walk-in customers the Company does not allow any credit period and therefore,
is not exposed to any credit risk.In general, it is presumed that credit risk has significantly increased
since initial recognition if the payments are more than 90 days past due.
B. Liquidity risk
The Company has sufficient cash and cash equivalent and other liquid current financial assets which
can be easily realised in cash or cash equivalent in short time .Therefore there is no significant
liquidity risk.
39. Capital management
For the purpose of the Company’s capital management, equity includes issued equity capital, Securities
Premium and retained earnings attributable to the equity shareholders of the company. The primary
objective ofthe Company’s capital management is to maximise the shareholders value. The Company’s
Capital Management objectives are to maintain equity including all reserves to protect economic
viability and to finance any growth opportunities that may be available in future so as to maximize
shareholders’ value. The Company is monitoring capital using debt equity ratio as its base, which is
debt to equity. The Company finances its long-term funds through Term loans. The company’s policy
is to keep debt equity ratio at the minimum and infuse capital if and when it is required through issue
of new shares and/or better operational results and efficient working capital management.
In order to achieve the aforesaid objectives, the Company has financed capital expenditure for new
expansion projects through term loans from Banks/ Financial Institution, unsecured borrowings from
Corporates and promoters and internal accruals in last two to three years keeping the debt to equity
ratio at the optimum. However, modernization, upgradation and continued marginal expansions have
been to remain competitive and improve product quality through efficient machinery. There is constant
endeavour to keep balance between debt & equity as much as feasible and practical by improving
operational and working capital management so that the debt-equity ratio remains at the optimum.
The Company has set up a new project at Malegaon for manufacturing Technical Textiles goods. The
project is financed through funds raised through private placement of equity shares by way of
preferential issue, term loan from bank & Financial Institution, unsecured borrowings from corporates
and promoters and internal accruals.
44. Disclosures as per IND AS-19, “Employee Benefits” are given below :
(i) Short Term Employee Benefits
I. The Company has provided for bonus amounting to Rs.11,25,543/- (Previous year Rs.
18,77492/-) for all its employees under the Payment of Bonus Act, which has been recognized
in the Statement of Profit and Loss for the year.
II. During the year the company has recognized Leave Salary amounting to Rs. 5,88,256/- (Previous
year Rs.5,97,177/-) in the Statement of Profit and Loss on payment basis.
III. During the year the company has made contribution to Employees State Insurance Scheme
amounting to Rs.3,53,857/- (Previous year Rs.3,62,821/-) which has been recognized in the
Statement of Profit and Loss.
(ii) Long Term Employee Benefits
The Company has classified the various Long Term Employee Benefits as under:-
I. Defined Contribution Plans
a) Contribution to Provident Fund
b) Contribution to Pension Scheme
During the year, the Company has recognized the following amounts as expenses in the Statement of
Profit and Loss -
II. Defined Benefit Plan
The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined
benefit plan. The present value of obligation is determined based on actuarial valuation using the
projected unit credit method which recognizes each period of service as giving rise to additional unit
of employee benefit entitlement and measures each unit separately to build up the final obligation.
45. Operating Segment Reporting
The Company has disclosed and reported Business Segment as the primary segment. Segments have
been identified taking into account the nature of the products, the differing risks and returns, the
organizational structure and internal reporting system. Accordingly the company has identified
Textile Division, Plastics Division, Trading Division and Technical Textiles Division as the main
business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The
Institute of Chartered Accountants of India.
Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective
amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The
income & expenses, which are not directly relatable to the business segment, are shown as
unallocated corporate costs net of unallocable income. Similarly, Assets and Liabilities that cannot
be allocated between segments are shown as unallocated corporate assets and liabilities respectively.
48. Additional Regulatory Information (to the extent applicable) as per MCA’s Notification no. G.S.R.
207(E) dated 24-03-2021
i. Loans and advances to Specified Persons.
The Company has not granted any loans or Advances in nature of loans to Specified Persons, namely
Promoters, Directors, KMP's & Related Parties during the year.
ii. Details of Benami Property held
The Company does hold any Benami Property.No proceedings have been initiated or pending against
the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act,
1988 and Rules made there under, during the year.
iii. Willful Defaulter
The Company is not decalared as willful defaulter by any Bank or Financial Institutions or other
lenders during the year.
iv. Transaction with Struck off Companies
The Company has not entered into any transactions with struck-off Companies
v. Registration of Charges or satisfaction with Registrar of Companies
There is no charge pending for registration or satisfaction with Registrar of Companies.
vi. Compliance with No of layers of Companies.
The Company does not have any subsidiary Companies and hence, there is no question of any
compliance with no of layers u/s. 2(87) of the Companies Act, 2013.
vii. Compliance with approved Scheme(s) of Arrangements
The Company has not made any scheme of arrangements in terms of sections 230 to 237 of the
Companies Act, 2013 during the year.
viii. Utilisation of Borrowed funds and share premium:
The Company has not advanced / loaned / invested any funds (either from borrowed funds or from
share premium or from any other sources / kind of funds) to any other person(s) or entity(ies),
including foreign entities (Intermediaries), with the understanding (whether recorded in writing or
otherwise) 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.
The Company has not received funds from any person(s) or entity(ies), including foreign entities
(Funding Parties), 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 on behalf of the Ultimate Beneficiaries.
ix. Undisclosed income
The Company has not surrendered or disclosed any income during the year in the tax assessments
under the Income Tax Act, 1961 which were not recorded in the books of accounts.
x. Corporate Social Responsibility (CSR)
The provisions of section 135 of the Companies Act, 2013 relating to CSR are not
applicable to the Company during the year.
xi. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year,
the custom duties on imported capital goods of Rs.13,48,327 /- during the year (Previous Year Rs.
2,13,62,419/-) and raw materials of Rs.9,40,180 /- during the year (Previous Year Rs. 56,27,506/-) are
deferred till their clearance from the bonded warehouse.
The custom duty deferred on imported raw materials under the Scheme shall become payable on
clearance of the finished goods manufactured by using imported raw materials. Accordingly, the
Company has provided for the liability towards payment of deferred custom duty of Rs. 41,83,523 /-
(Previous Year Rs. 46,18,835/-) on imported raw materials. The management of the Company does
not have any plan to export or remove the imported capital goods in future and hence, no liability is
provided towards payment of deferred custom duties of Rs.4,51,61,378 /- (Previous Year Rs.
4,38,13,051/-) on imported capital goods.
51. Contingent liability:
Contingent Liability on account of deferred custom duties of Rs. 4,51,61,378/- on imported capital goods
(Previous Year Rs. 4,38,13,051) under MOOWR Scheme (As referred in Note No. 49)
52. The previous year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make
them in compliance with disclosure requirement of Indian Accounting Standards.
As per our report of even date
For AMBAVAT JAIN & ASSOCIATES LLP On Behalf of the Board
Chartered accountants
Firm Registration No. 109681W
Ashish J. Jain J. R. Mehta Sharmila Amin
Partner Managing Director Director
Membership No.111829 DIN 00193029 DIN 06770401
PLACE: MUMBAI Shailesh Sankav
DATE: 29-05-2025 Chief Financial Officer
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