a. Mr. Nitin Menon - Executive Chairman, Mr. Arun Aradhye -Managing Director and Mr. Chandrakant Ghatge CFO are employees of the Company. Mr. M.L.Shinde, Mrs. Kailash A.Nevagi, Mr.Nandan Borgalkar and Dr. Santosh Prabhu Independent Directors are not paid any remuneration, only Sitting Fees are paid to them. The salary, perquisites and remuneration paid are disclosed under Report on Corporate Governance( point no.8.3) as details of Remuneration and Sitting Fees paid to Directors
b. Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.
1. Flyga Hotels Pvt. Ltd.
2. Give Artisans Trust.
c. Mr. Nitin Menon & Menon United Pvt .Ltd. hold 10% or more shares in the Company.
17) Government Grants:
The Company has a policy to recognize Government Grants only when-
i) It has complied with the conditions attached to it and
ii) there is a reasonable assurance that it will be received. Grants related to assets are presented in the Balance Sheet as deferred income and recognized in Profit and Loss account on systematic basis over the useful life of the asset. Currently there are no such grants. Grants related to income are presented as part of Profit and Loss account under “Other Operating Revenue”. Grants related to duty drawback refunds are accounted on receipt basis as the time frame within which it will be received cannot be estimated. Government Grants in the form of duty drawback accounted during current year is Rs 2,37,06,632/-(previous year Rs. 1,08,19,327/-)
18) Foreign Currency Transactions
Foreign currency transactions are recorded on initial recognition in the functional currency of the Company by applying the exchange rate prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies, including trade receivables, are translated into the functional currency at the closing exchange rate prevailing at the reporting date.
Exchange differences arising on settlement of monetary items or on restatement of monetary items at rates different from those at which they were initially recorded or reported in previous financial statements are recognised in the Statement of Profit and Loss in the period in which they arise.
Accordingly, trade receivables denominated in foreign currencies are restated at the closing exchange rate as at 31 March 2026, and the resultant foreign exchange gain or loss is recognised in the Statement of Profit and Loss for the year ended 31 March 2026. Rs.1,16,74,462.00 (Previous year Rs.12,54,639.00)
Non-monetary items measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction and are not subsequently restated.
19) Investments in Subsidiaries
Subsidiaries are entities over which the Company has control. The Company controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Investments in subsidiaries are accounted for in the Company's separate financial statements at cost in accordance with Ind AS 27, Separate Financial Statements.
The cost of investment comprises the purchase consideration and directly attributable acquisition costs, where applicable. Investments in subsidiaries are subsequently carried at cost less impairment losses, if any.
The Company assesses at each reporting date whether there is any indication that an investment in a subsidiary may be impaired. If any such indication exists, the recoverable amount of the investment is estimated and an impairment loss is recognised in the Statement of Profit and Loss to the extent that the carrying amount exceeds its recoverable amount. Impairment losses are recognised and reversed, if applicable, in accordance with the requirements of Ind AS 36, Impairment of Assets.
Dividend income from subsidiaries is recognised in the Statement of Profit and Loss when the Company's right to receive payment is established.
The Company holds 100% of the equity share capital and voting rights in the above subsidiary and accordingly exercises control over the entity.
There are no significant restrictions on the ability of the subsidiary to transfer funds to the Company in the form of dividends, repayment of loans or advances, except those arising from applicable statutory and regulatory requirements.
During the year, there were no changes in the composition of the Group and no changes in the Company's ownership interest in its subsidiary.
The Company has provided financial support to the subsidiary which are disclosed in Related party transactions.
MI. Significant management judgment in applying accounting policies and estimation of Uncertainty
While preparing the financial statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
(i) Significant Management Judgment
The following are significant management judgments in applying the accounting policies of the Company that have significant effect on the financial statements.
Recognition of Deferred Tax Assets/Liability
The extent to which deferred tax assets/Liability can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.
(ii) Estimation of Uncertainty
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.
a. Impairment of Non-Financial Assets
In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interestrateto discount them. Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discountrate.
b. Useful Lives of Depreciable Assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.
c. Inventories
Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.
d. Defined Benefit Obligation (DBO)
Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note No. 26 & 27).
e. Current and Non-Current Classification
All assets and liabilities have been classified as Current or Non-Current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.
A) Bajaj Finance Limited:- Loan of Rs.22 Crores is Sanctioned. The loan has a moratorium period of 12 months (Interest to be served as an when applied). The total loan tenure is 66 months, including moratorium period. The loan is repayable in 54 equated monthly principal installments starting August 2024. The rate of interest is 8.90%, The loan is secured by charge on entire immovable and movable fixed assets of the company located at B-2. The loan is also secured by personal gaurantee of Mr.Nitin Menon
B) HDFC Bank Limited:- Loan of Rs.1.21 Crores. The total loan Tenure is 60 months . The loan is secured by hypothication of Rooftop solar system. The rate of interest is 7.50%. The loan is also secured by personal gaurantee of Mr.Nitin Menon.
C) Shri Mahalaxmi co-op Bank :- Loan of Rs.4.12 Crores is sanctiond. The loan has a moratorium period of 03 months (interest to be served as an when applied). The total loan tenure is 36 months. including moratorium period. The loan is repayable is 33 equiated monthly principal installments starting March - 2026. The rate of interest is 8.50% The loan is secured by charge on entire immovable fixed assets of the company located at A-4/2. The loan is also secured by personal gaurantee of Mr.Nitin Menon.
In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (the CSR Rules 2021) effective from 22nd January, 2021, if a Company fails to spend the prescribed CSR amount during the year and such unspent amount pertains to any ongoing project, the Company shall transfer the unspent amount to a special bank account to be opened by the Company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30 days from the end of the relevant financial year. There is no unspent amount under CSR as on 31st March, 2026.
| 