n) Provisions
A provision is recognised when the Company
has a present obligation as a result of 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. Provisions are not
discounted to their present value and are
determined based on the best estimate
required to settle the obligation at the
reporting date. These estimates are reviewed
at each reporting date and adjusted to reflect
the current best estimates.
o) Contingent liability
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company or
a present obligation that is not recognised
because it is not probable that an outflow of
resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognised because it cannot
be measured reliably. The Company does not
recognise a contingent liability but discloses
its existence in the financial statements.
p) Segment Reporting
The company’s operating businesses are
organized and managed separately
according to the nature of products and
services provided, with each segment
representing a strategic business unit that
offers different products and serves different
markets. The analysis of geographical
segments is based on the areas in which
major operating divisions of the company
operate.
q) Government Grants
Government grants / subsidies received
towards specific fixed assets have been
deducted from the gross value of the
concerned fixed assets and grant / subsidies
received during the year towards revenue
expenses have been reduced from respective
expenses.
Export benefits / incentives are accounted on
accrual basis. Accordingly, estimated export
benefits against exports affected during the
year are taken into account as estimated
incentives accrued till the end of the year. In
case of License not revalidated after the date
of expiry, the proportionate export benefit /
incentive taken credit in earlier year(s) is
written off in the year of expiry of License.
b) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Each
holder of equity share carries one vote and is entitled to dividend that may be declared by
the Board of Directors, which is subject to the approval of the shareholders in the Annual
General Meeting.
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. The
distribution will be in proportion to the number of equity shares held by the shareholders.
Securities for term loans
A) The Term Loan of Rs. 100.00 Lakhs as on 31 March 2025 from Small Industries Development
Bank of India (SIDBI) is primarily secured by:-
(i) Exclusive first charge by way of hypothecation of all the Borrower's movables, including
plant, machinery, machinery spares, tools & accessories, office equipment, computers,
furniture, and fixtures, whether already owned or to be acquired under the project.
(ii) Exclusive first charge on all movables and assets acquired for the specific purpose of the
400 KW Grid-Connected Rooftop Solar Power Plant project.
B) Further, the aforesaid term loan is secured with collateral security by the following:-
(i) A Fixed Deposit Receipt (FDR) for Rs. 31.25 Lakh issued by SIDBI, held in auto-renewal
mode, with a lien marked in favour of SIDBI.
C) Further, the promoters of the Company have provided an irrevocable, unconditional, and
joint several personal guarantee against the loan to SIDBI by:-
(i) Smt. Patel Himaben Janakkumar
(ii) Smt. Kenaben Parichaykumar Patel
(iii) Shri Patel Janakkumar Mahendrabhai
(iv) Shri Patel Parichay Maganbhai
(v) Shri Rajeshkumar Prabhudas Patel
C) Further, Directors of Company has provide personal guarantee against security to
aforesaid loan listed in point (A) above.
Term of Repayment
a) The Term Loan from SIDBI is repayable in 54 monthly installments after a moratorium
period of 6 months from the date of first disbursement, as per the repayment schedule
provided.
b) The interest rate on the borrowing is a floating rate of 0.45% above SIDBI's 1-year MCLR
(currently 8.95% p.a.). The rate is subject to annual reset.
34. The Company has considered the business segment as the primary reporting segment
on the basis that the risk and returns of the Company is primarily determined by the nature
of products and services. Consequently, the geographical segment has been considered as
a secondary segment.
The business segment have been identified on the basis of the nature of products and
services, the risks and returns, internal organisation and management structure and the
internal performance reporting systems. The Business segment comprises of
manufacturing and Selling of Tubes and Tyres. Geographical segment is considered based
on sales within India and outside India.
35. Additional Notes
(A) The title deeds of immovable properties (other than properties where the Company is
the lessee and the lease agreements are duly executed in favour of the lessee) are held in the
name of the Company.
(B) The Company does not have any investment property.
C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use
Assets) and Intangible assets.
D) There are no loans or advances in the nature of loans are granted to Promoters, Directors,
KMPs and their related parties (as defined under Companies Act, 2013), either severally or
jointly with any other person, that are outstanding as on 31st March, 2025:
(i) repayable on demand; or,
(ii) without specifying any terms or period of repayment.
E) The company is not declared willful defaulter by any bank or financial institution or other
lender.
F) The company has not undertaken any transactions with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
G) No Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.
H) The company has not advanced or loaned or invested funds (either borrowed funds or
share premium or any other sources or kind of funds) to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the undrstanding (whether recorded in
writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on
behalf of the company or provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
I) 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 directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding
Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
J) No transactions has been surrendered or disclosed as income during the year in the tax
assessment under the Income Tax Act, 1961. There are no such previously unrecorded
income or related assets.
K) The Company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.
L) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social
Responsibility are not applicable to the Company during the year and hence reporting
under this clause is not applicable.
36. Previous year figures have been regrouped/rearranged whenever necessary to conform
to this current year's classification.
For Doshi Doshi & Co For and on behalf of the Board
Chartered Accountants Viaz Tyres Limited
Firm Registration No.: 153683W
Sd/- Sd/- Sd/-
Chintan Doshi Janakkumar Mahendrabhai Patel Rajeshkumar Prabhudas Patel
Partner Managing Director Whole-Time Director & CFO
UDIN: 25158931BMIFXE1161 DIN: 03329692 DIN: 07883688
Place: Ahmedabad
Date: May 29, 2025 g^
Hema Advani
Company Secretary
Membership No. :- A40537
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