XIII. Provisions and contingencies:
A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a probable obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.
XIV. Taxation:
(a) Direct Taxes:
Tax expense for the year, comprising Current Tax if any and Deferred Tax are included in determining the net profit for the year.
A provision is made for deferred tax for all timing differences arising between taxable incomes and accounting income at currently enacted tax rates.
Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
(b) Indirect Taxes:
The liabilities are provided or considered as contingent depending upon the merit of each case and/or receiving the actual demand from the department.
XV. Impairment Loss:
Impairment Loss, if any, is provided to the extent the carrying amount of assets exceed their recoverable amounts. Recoverable amount is that which is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net Selling Price is the amount obtainable from sale of the asset on arm's length basis between knowledgeable and willing parties less the cost of disposal.
26. Contingent Liabilities:
• Bank guarantees amounting to ' 23.51 Lakhs(PY.'144.82 Lakhs) in favour of DGFT & Customs, . 444.53 Lakhs (PY'.444.53 Lakhs) in favour of Uttar Gujarat Vij Company Limited.
• The company has imported capital spares under the EPCG Scheme at concessional rate of custom duty by undertaking obligation to export. Future outstanding export obligation under the scheme is '. 382.72 Lakhs (previous year '. 382.72 Lakhs) which is equivalent to 6 times of duty saved '. 63.79 Lakhs (Previous year '. 63.79 Lakhs). The export obligation must be completed by 2021-22 to 2027-28.
• In respect of Goods and Service Tax Liability of '. 566.47 Lakhs( F.Y 17-18 & F.Y 18-19 Related to case for Income difference between income shown on portal and income disclose in books of accounts & wrongly availed Input Tax Credit.)* In respect of Goods and Service Tax Liability of ' 598.47 Lakhs.
• Corporate guarantees amounting to '. 19,579 Lakhs favour of Pashupati Texspin Export LLP (Relation: Associate)
39. The Board of Directors has recommended final dividend for the financial year 2023-24 on Equity Share Capital 75% ('. 0.75 Per Equity of face value of '.10/- each) subject to approval of the shareholders in the ensuing Annual General Meeting (AGM)
40. Other Statutory Information
The Group do not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.
The Group do not have any transactions with companies struck off.
The Group do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
The Group have not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Group have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries), or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
The Group have 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 Group shall:
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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Group have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961
* These differences are mainly due to following reasons:-
(a) Provision of expenses being not considered in statements submitted to bank,
(b) Amounts of trade payables and trade receivables are shown net off advances to suppliers and advances from customers respectively in statements submitted to bank.
(c) Inventory and Trade Receivables:- Mainly due to change in the basis of valuation of inventories, effects of exchange rate fluctuations, etc. during the course of audit.
As per our attached report of even date
For Mahendra N. Shah & Co. For Pashupati Cotspin Limited
Chartered Accountants FRN: 105775W
Chirag M. Shah Saurinbhai J. Parikh Tushar R. Trivedi
Partner Managing Director Whole Time Director
Membership No. F 045706 (DIN: 02136530) (DIN: 06438707)
Hareshkumar Shah Nisarg Shah
Chief Financial Officer Company Secretary
Place: Ahmedabad Place: Ahmedabad Place: Ahmedabad
Date: 25/05/2024 Date: 25/05/2024 Date: 25/05/2024
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