l) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the company has a present obligation as a result of past events and it’s probable
that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are not discounted to its present values and are determined based on best estimate required to
settle the obligations at the balance sheet date. These are reviewed at each balance sheet date and adjusted to
reflect the current management estimates.
m) Foreign Currency Transactions:
Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realize
gain and losses on settlement of foreign currency transactions are recognized in the profit and loss account under
the natural revenue head of accounts. Exchange differences relating to fixed assets are capitalized to respective
Fixed Asset.
n) Impairment of assets:
An impaired loss is charged to the statement of profit and loss in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
o) Revenue Recognition:
Revenue from sale of goods and services is recognized when significant risk and rewards in respect of
ownership are transferred. The sale of product is accounted for net of GST/Sales Tax.
Other income is recognized on accrual basis except when realization of such income is uncertain.
p) Employee benefits:
A. Short-term employee benefits:
Short-term employee benefits expected to be paid in exchange for the services rendered by employees are
recognized undiscounted during the period employee renders services. These benefits include salary, wages,
bonus and performance incentives etc. Bonus to employees is charged to profit and loss account on the actual
payment basis.
B. Post-Employment benefits:
• Defined- Contribution Plans:
Defined contributions to Provident Fund and Employee State Insurance Corporation are charged to the statement
of Profit & Loss of the year, when the employee renders the related service. There are no other obligations other
than the contribution payable to the respective statutory authorities.
• Defined Benefit Plans:
Employee Gratuity Fund scheme is the Defined Benefit Plan. Provision for gratuity has been made in the
accounts according to the valuation made by actuarial.
q) Borrowing Costs
Company capitalises borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset as a part of the that asset. Company recognises other borrowing costs as an expense in the
period in which it incurred. Borrowing costs are interest and other costs that the company incurres in connection
with the borrowing of funds including exchange differences arising from foreign currency borrowings to the
extent that they are regarded as an adjustment to interest costs.
A qualifying asset is an asset that takes substantial period of time to get ready for its intended use or sale.
r) Taxes on Income:
• Current Tax - Provision for current tax / minimum alternate tax (MAT) is made based on tax liability computed
after considering tax allowances and exemptions.
• Deferred Tax - Deferred tax is recognized on timing differences between the accounting income and taxable
income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the
Balance Sheet date. Deferred tax assets are recognized and carry forward to the extent that there is a reasonable
or virtual certainty, as may be applicable, that sufficient future taxable income will be available against which
such deferred tax asset can be realized.
s) Earnings Per Share:
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of
equity-shares outstanding during the period. Diluted earnings per share is computed by dividing the profit After
tax by the weighted average number of equity shares considered for deriving basic earnings per share and also
the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares.
ii. Micro, Small and Medium Enterprise:
The Company is in the process of identifying the supplier, if any, covered under the Micro and Small enterprise as
defined under Micro, Small and Medium Enterprise Development Act, 2006. Due to non-availability of data, the
details required have not been furnished.
iii. Uncertainties Arising Out of the Outbreak of COVID-19
The Management of the company has made detailed assessment of its liquidity position to continue operation for
the next years and the recoverability and carrying value of assets comprising property plant and equipment,
inventory and trade receivables. Based on current indicators of future economic condition the company expects to
recover the carrying amount of its assets. The company will continue to closely monitor any material changes
arising of future economic condition and impact on its business.
iv. Employee Benefits:
• Defined benefit plan:
The Company recognizes the liability towards the total liability of gratuity during current period of balance sheet
date of Rs. 8,40,329/-. The company has provided retirement benefit payable to employees on the basis of
actuarial valuation and details of actuarial valuation are as under:
a) On Normal retirement/ early retirement/ withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
b) On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
gratuity and leave encashment were carried out at 31st March, 2023 by an actuary.
The company is having provision for gratuity of Rs. 8.40/- Lakh. Many employees who are eligible
for gratuity have left the company and gratuity payable to them has not been worked out by the
actuarial valuer as on 31-03-2024. As actuarial valuation has not been carried out, excess or short
provision of the gratuity cannot be quantified.
The present value of the defined benefit obligations and the related current service cost and past service
cost, were measured using the Projected Unit Credit Method, which recognizes each period of service as
giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final
obligation.
The following table sets out the status of the gratuity plan and the amounts recognized in the Company’s
financial statements as at 31st March, 2024 on the basis of last actuarial valuation dated: 31st March, 2023.
vii. The value of realization of Current Assets in the ordinary course of business will not be less than the value at
which they are stated in the Balance Sheet.
viii. The balances of Trade Receivable and Trade Payable are net -off from advance and are subject to confirmation,
reconciliation and consequential adjustments, if any.
ix. Previous year figures are regrouped, reclassified and rearranged wherever necessary.
x. The Axis Bank has taken over the possession of Factory Land and Building, Machinery, Stock etc. of the company
according to the order of Hon Chief Judicial Magistrate, Vadodara under the provisions of the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the company's manufacturing
activity has been closed from the month of July, 2023
For, V. J. Amin & Co., FOR ADVANCE SYNTEX LTD.
Chartered Accountants (Earlier Known As Advance Syntex Private Ltd)
FRNo. 100335W
SD/-
SD/-
Mr. B. D. Vora Mrs. D. D. Vora
SD/- Din: 01613974 Din: 06718711
(CA Vipul M Dalal) M.D. & CFO Whole Time Director
Partner
Membership No.103667 SD/-
Place: Vadodara Ambica Pal Sharma
Date: 31/07/2024 Company Secretary
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