(xvi) Provisions and Contingent Liabilities (AS-29)
Provisions involving substantial degree of estimation in measurement are recognised when there is a present
obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent
Liabilities are not recognised but disclosed in the notes. Contigent assets is neither recongnised nor disclosed
in the financial statement.
Except where stated, accounting policies are consistent with the generally accepted accounting principles
and have been consistently applied.
Note 1 - During the previous years, the Company had recognized the gain arising from the settlement agreement with Assets Care & Reconstruction Enterprises Ltd. < ACRE under
However, upon review and considering the guidance from the principles of Accounting Standard 29 (yet to be notified by ICAI), it has been determined that such gams shouldI ber routed‘ ***
Statement of Profit and Loss in the year in which the settlement occurred. Accordingly, the opening balance of the Capital Reserve, representing the sa.d settlement gam, has been reclassified and
transferred to the Statement of Profit and Loss (Reserves), aligning it with the generally accepted accounting principles in India.
Note 2- in the preceding financial years, the capital subsidy received from Project Management cell (PMC) . UNDP/GEF Project (Steel).(a project being executed by the min'st^ of s‘^0S> '
Government of India) in FY 2012-13 for purchase of machinery / equipment for implementation of EE technology was recorded under 'Capital Reserve However,
Accounting Standard 12 and Schedule III of the Companies Act, such subsidies are required to be treated as deferred income which is recognised in the profit and loss statement on a systematc a
rational basis over the useful life of the asset. Such allocation to income is usually made over the periods and in the proportions in which depreciation on related assets is charged. Consequently, he
opening balance representing capital subsidy of Rs. 31.53 Lakhs has been reclassified and transferred to the Statement of Profit and Loss to ensure alignment with the prescribed accounting and reporting
standards.
4.2 Rupee Term Loan from Bank total loan amount of R 34 lacs Vehicle Loan was taken from Axis Bank and was secured by Vehicle against which the said loan is taken. The Vehicle loan was repayable
in 36 equal Instalments of * 1.11 Lacs each. The loan has been foreclosed by the company.
4.3 Rupee Term Loan from Induslnd Bank includes R 127.73 Lacs(R 132.23 Lacs ) and is secured by personal property of director situated at Plot no. 210, Upadhyay House, Vidhyadhar Nagar Behind
Murlipura School, Sector No. 2 Jaipur 302023 and is repayable in 180 equal Instalments of 3 1.42 Lacs. The Interest on Loan shall be linked to Repo rate publised by R8I and Spread of 3.15%.
4.4 Rupee Term Loan from Induslnd Bank includes * 256.43 Lacs(R Nil) and is secured by personal property of director situated at Plot no. 210, Upadhyay House, Vidhyadhar Nagar Behind Murlipura
School, Sector No. 2 Jaipur 302023 and is repayable in 180 equal Instalments of R 2.76 Lacs. The Interest on Loan shall be linked to Repo rate publised by RBI and Spread of 3.15%.
4.5 Rupee Term Loan from Bank includes R 14.72 Lacs (R 21.49 Lacs) Auto Loan from HDFC Bank and Is secured by Vehicle against which the said loan is taken. The Auto loan is repayable in 39 equal
instalments of R0.70 Lacs and repayment will start from 05.12.2023
4.6 Rupee Term Loan from Bank includes * 17.73 Lacs (R Nil) Auto Loan from HDFC Bank and is secured by Vehicle against which the said loan is taken. The Auto loan is repayable in 39 equal
instalments of R 0.56 Lacs and repayment will start from 05.01.2025
4.7 includes R 193.54 Lacs (R 206.82
• equitable mortgage of Factory Land & Building located at Plot No • A 195, RICO Ind. Area, Bagru Extention, Phase -II, Bagru, Jaipur (total area -10393.75 Sqm),
- hypothecation of entire Current Assets of the Company both present and future (Stock of Raw Materials, Semi finished and finished goods, and debtors etc), existing Plant and Machinery and
Plant and fulachinery acquired in future at Plot No - A195, RICO Ind. Area, Bagru Extention, Phase -II, Bagru, Jaipur.
- personal guarantee of Manoj Upadhayay (Managing Director), Suresh Kumar Sharma (Chairperson) of the Company, Nidhi Upadhay(Non Executive Director) and Relatives of KMP namely
Santosh Devi Sharma.
on floating rate prevailing from time
in 10 Years in 120 equal
4.8 includes R 276.05 Lacs (R295.46 Lacs
- additional equitable mortgage of Factory Land & Building located at Plot No - A195, RICO Ind. Area, Bagru Extention, Phase -II, Bagru, Jaipur (total area -10393.75 Sqm),
- hypothecation of entire Current Assets of the Company both present and future (Stock of Raw Materials, Semi finished and finished goods, and debtors etc), existing Plant and Machinery (Spare
Rolls & Die, Movable Trucks and Crain etc) and Plant and Machinery (Spare Rolls a Die, Movable Trucks and Crain etc) acquired in future at Plot No - A 195, RICO Ind. Area, Bagru Extention, Phase -
II, Bagru, Jaipur
- personal guarantee of Manoj Upadhayay (Managing Director), Suresh Kumar Sharma (Chairperson) of the Company, Nidhi Upadhay(Non Executive Director) and Relatives of KMP namely
Santosh Devi Sharma.
- Interest on Loan shall be charged on floating rate prevailing from time to time. At present the Interest rate is 9.75% p.a.
- The Loan shall be repayable in 10 Years in 120 equal Instalments of ^ S.92 Lacs commence w.e.f. Jan 2024
4.9 includes ^ 246.14 (Nil) Lacs
- additional equitable mortgage of Factory Land & Building located at Plot No - A 195, RICO Ind. Area, Bagru Extention, Phase -II, Bagru, Jaipur (total area - 10393.75 Sqm),
- hypothecation of entire Current Assets of the Company both present and future (Stock of Raw Materials, Semi finished and finished goods, and debtors etc), existing Plant and Machinery (Spare
Rolls & Die, Movable Trucks and Crain etc) and Plant and Machinery (Spare Rolls & Die, Movable Trucks and Crain etc) acquired in future at Plot No - A 195, RICO ind. Area, Bagru Extention, Phase -
II, Bagru, Jaipur
- personal guarantee of Manoj Upadhayay (Managing Director), Suresh Kumar Sharma (Chairperson) of the Company, Nidhi Upadhay(Non Executive Director) and Relatives of KMP namely
Santosh Devi Sharma.
- Interest on Loan shall be charged on floating rate prevailing from time to time. At present the Interest rate is 9.75% p.a.
- The Loan shall be repayable in 10 Years in 120 equal Instalments of * 3.26 Lacs commence w.e.f. Jan 2025
Defined benefit plans:
TheCompany should provide for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are In
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement ,s
the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the numbe
years of service, subject to a payment ceiling of INR 20,00,000/-.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit
obligation as at balance sheet date:
Sensitivity analysis method _ . .
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected ry
increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not
be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would
occur in isolation of one another as some of the assumptions may be correlated.
ln response, t*'e SU;147 o^eljrua^M"202^^eco^pan Msreplv to l^on M,2025*'on MarchW^OK The Income tax department raised a
dlmand^fR^M^ lakhs In the above case. The company has preferred to file an appeal in the said case.
38 Previous year's figures have been regrouped wherever necessary so as to make them comparable to those of the current year.
_- l-or M H K SI EfcLS (l)LIMirEP
MNamanLakhotlV|\>^L-X^/ ^ SURESH MAN°J UPA°^AY
Partner (Director. OIN: 00706956) (Director, DIN: 00706964)
Membership No: 435456 Place:- Jaipur Place:- Jaipur
For and on behalf of Date. 23rd>«rrW25~ Da,e: 23rd June’2025
N L A & Associates
Chartered Accountants S
Place : Jaipur ^ plnyankajainr'
Date : 23rd June, 2025 CompanySecretarv
UDIN: 25435456BMIVSK2033 place:- Jaipur
Date : 23rd June, 2025
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