k Provisions, Contingent liabilities and Contingent assets
A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.
I Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.
m Borrowing cost
Borrowing costs that are attibutable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying assets is one that necessary takes substantial period of time to get ready for ontended use. All other borrowing cots are charged to revenue
n Earning per Share
a. Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
b. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
o Contingencies and Event Occuring after the Date of Balance Sheet date
Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for an adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are required to assets and liabilities for events which occur after balance sheet date which offer added information substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet date.
p Segment Reporting Policies
Segments are identified in line with AS-17 "segment Reporting", taking into consideration the internal organisation and management structure as well as the differential risk and returns of the segment. Based on the Company's business model, Manufacturing of Reclaim Rubber have been considered as the only reportable business and geographical segment.
Segment Policies:
The Company prepares its segment information in confirmity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
q Retirement Benefits
(I) Short Term Obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as short term employee benefit obligations in the balance sheet
(II) Post Retirement Obligations
Post Retirement obligations such as gratuity and leave encashment payable after the retirement of employee are not provided, However compnay has certain rule for payment of leave encashment benefits and post retirement gratuity.
See accompanying notes to the financial statements As per our report of even date
For D K N & ASSOCIATES For and on behalf of the Board
Chartered Accountants
Firm's Registration No. 120386W
CA DHIRAJ AGRAWAL KALPESHBHAI PATEL JAYESH PATEL
PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTROR
Membership No. 107286 DIN 06229748 DIN 05007490
UDIN: 24107286BKDFRE3924
Place: BHARUCH Place: AHMEDABAD
Date: 30 May 2024 Date: 30 May 2024
As per Notification No. CG-DL-E-22072022-237454 dated 21st July, 2022 • Companies being eligible producers are liable to Waste Tyre Recycling Target pursuant to which the producers can purchase extended producer responsibility (EPR) certificates, it shall be automatically adjusted against their liability.
Our company engaged in recycling of reclaimed rubber from waste tyre are eligible to sell such credit points accumulated vide its registration on the portal eprtyrecpcb.in during the course of its operations. Pursuant to the said provisions the company has recorded Income of Rs. 94.27 Lacs from sale of 5095.517 (MT) accumulated EPR credits during the period FY 22-23.
Decrease in Current Ratio due to Increase in Current Liability.
Increase in Debt-Equity Ratio due to Increase in Debts
Increase in Debt Service Coverage Ratio due to decrease in debt services.
Decrease in Return on Equity Ratio due to Decreased in Profit after Tax.
Decrease in Trade Receivable turnover ratio due to significate increase in Average trade receivable.
Decrease in Trade Payable turnover ratio due to significate increase in Average trade payables.
Increase in Net capital turnover ratio due to increase on total turnover
Decrease in Net Profit Ratio due to decrease in Net Profit and Increase in Total turnover.
34 Regrouping
Previous year figures has been re-classified, re-arranged, re grouped whenever necessary to make financial year comparable with current year figures.
35 Foot note 3
In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated. The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for. All other contractual liabilities connected with business operations of the Company have been appropriately provided for.
The company does not expect any statutory liabilities other than those provided in the books of account.
The company has not revalued its Property, Plant and Equipment during the year.
36 Foot note 4
The company has not entered any transactions with struck off companies under section 248 of the companies Act, 2013 or section 560 of companies Act, 1956.
The company has complied with the requirement of registration/satisfaction of charge with Registrar of Companies.
There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of companies Act, 2013.
37 Foot note 5
There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
The company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
38 Foot note 6
No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
The Company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.
The company has made provision as required under the applicable law or Accounting Standard, for material foreseeable losses if any, on long term contract including derivative contract.
39 Foot note 7
The accounting system used by the company did not maintain au audit trail durign the year. Management is currently adressing this issue to ensure future compliance with financial reporting standards.
All the figures shown nearest to lakhs rupees.
See accompanying notes to the financial statements As per our report of even date
For D K N & ASSOCIATES For and on behalf of the Board
Chartered Accountants
Firm's Registration No. 120386W
CA DHIRAJ AGRAWAL KALPESHBHAI PATEL JAYESH PATEL
PARTNER WHOLE TIME DIRECTOR MANAGING DIRECTROR
Membership No. 107286 DIN 06229748 DIN 05007490
UDIN: 24107286BKDFRE3924
Place: BHARUCH Place: AHMEDABAD
Date: 30 May 2024 Date: 30 May 2024
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