(ii) Provisions and contingencies
The assessments undertaken in recognising provisions
and contingencies are made in accordance with the
applicable Ind AS.
(iii) Deferred Tax Assets
Deferred tax assets are recognized to the extent that it is
probable that taxable profit will be available against which
losses can be utilized significant management judgement
is required to determine the amount of deferred tax asset
that can be recognized, based upon the likely timing
and level of future taxable profit together with future tax
planning strategies.
(iv) Realisation Value of current assets
In the opinion of the management, the value of current
assets, loans and advances on realization in the ordinary
course of business, will not be less than the value at which
these are stated in the balance sheet.
2.18 Foreign Currency Translation
(i) Functional and presentation currency
The Financial Statements are presented in Indian Rupees
(INR), which is the Company’s functional and presentation
currency.
(ii) Transactions and balances
Transactions in foreign currencies are recognised at
the prevailing exchange rates on the transaction dates.
Realised gains and losses on settlement of foreign
currency transactions are recognised in the Statement of
Profit and Loss.
Monetary foreign currency assets and liabilities at the
year-end are translated at the year-end exchange rates
and the resultant exchange differences are recognised in
the Statement of Profit and Loss.
2.19 Non-Current Asset Held for Sale
Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and
a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value less
costs of Disposal, except for assets such as deferred tax
assets, assets arising from employee benefits, financial
assets and contractual rights under insurance contracts,
which are specifically exempt from this requirement.
Non-current assets are not depreciated or amortised
while they are classified as held for sale. Interest and
other expenses attributable to the liabilities of a disposal
Company classified as held for sale continue to be
recognised.
2.20 Borrowings
Borrowings are initially recognised at net of transaction
costs incurred and measured at amortised cost. Any
difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in
the Statement of Profit and Loss over the period of the
borrowings using the effective interest method.
Interest Free Borrowings are recognised at amotised cost
whose period of repayment is certain or defind under the
effective interest rate method.
2.21 Borrowing Costs
Interest and other borrowing costs attributable to
qualifying assets are capitalised. Other interest and
borrowing costs are charged to Statement of Profit and
Loss using the EIR method.
2.22 Revenue Recognition
Revenue is measured at the value of the consideration
received or receivable. Amounts disclosed as revenue are
exclusive of taxes and net of returns, trade allowances,
rebates, discounts, loyalty discount, value added taxes
and amounts collected on behalf of third parties.
The Company recognises revenue when the amount of
revenue can be reliably measured, it is probable that
future economic benefits will flow to the Company and
specific criteria have been met for each of the Company’s
activities as described below.
Sale of goods
Sales are recognised when substantial risk and rewards
of ownership are transferred to customer, In case of
domestic customer, generally sales take place when
goods are dispatched or delivery is handed over to
transporter, in case of export customers, generally sales
take place when goods are shipped onboard based on bill
of lading.
Revenue from services
Revenue from services is recognised in the accounting
period in which the services are rendered.
Other operating revenue - Export incentives
“Export Incentives under various schemes are accounted
in the year of reciept.
Interest Income
The Company recognises interest income using Effective
Interest Rate (EIR) on all financial assets subsequently
measured at amortised cost or fair value.
2.23 Employee 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 Profit & Loss
account 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.
(ii) Defined Contribution Plan
Contribution to defined contribution scheme such as
emplyee's state insurance, labour welfare fund, Employee
Provident fund etc are charged as an expense to the
standalone statement of profit and loss A/C
(iii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are
not expected to be settled wholly within 12 months
are measured at the present value of expected future
payments to be made in respect of services provided by
employees up to the end of the reporting period using
the projected unit credit method.Remeasurements as a
result of experience adjustments and changes in actuarial
assumptions are recognised in the Statement of Profit
and Loss.
Defined Benefit Plans: The Company has recognised
the gratuity liablity based on actuarial valuation using
projected unit credit method as per the provisions of the
IND AS-19. Remeasurement gain or loss are recognised in
the Other Comprehensive Income.
2.24 Cash Flow Statements
Cash flows are reported using the indirect method,
whereby profit/(loss) before tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing
activities of the Company are segregated based on the
available information.
2.25 Government Grant
The Company is entitled to subsidy, on its investment
in the property plant and equipment, on fulfilment of
the conditions stated in those Scheme. The subsidy
being Government Grant is accounted as stated in the
Accounting policy on Government Grant.
The Company recognises government grants only
when there is reasonable assurance that the conditions
attached to them will be complied with, and the grants will
be received.
When the government Grant relates to expenditures on
property, plant and equipments,the Company deducts
such grant amount from the carrying amount of asset at
the time of receipt of grant.
Export Promotion Capital Goods (EPCG): scheme allows
import of certain capital goods including spares at zero
duty subject to an export obligation for the duty saved
on capital goods imported under EPCG scheme. The duty
saved on capital goods imported under EPCG scheme
being Government Grant, is accounted as stated in the
Accounting policy on Government Grant.
Government grants relating to the EPCG scheme on
purchase of property, plant and equipment are included in
non-current liabilities as deferred income and are credited
to Profit and Loss on a straight - line basis over the
expected lives of related assets with the corresponding
adjustment to the addition in carrying amount of property,
plant and equipment and are debited to Profit and Loss
account by the way of depreciation.
2.26 Round-Off
All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakhs as per
the requirement of Schedule III, unless otherwise stated.
2.27 The accounting policies that are currently not
material to the Company have not been disclosed. When
such accounting policies become relevant and have
material impact, the same shall be disclosed.
Primary Securities:
1. All Fixed Assets of the Company which are created
from term loan lenders and other fixed assets of the
Company whether in present or future located in
the Company's Factories, Premises and godowns or
wherever else the same may be or be held by any
party to the order or disposition of the Company.
Collateral Securities:
1. First Pari-Passu charge of Axis bank and second pari-
passu charge of Yes bank in all the Current Assets
of the Company namely Raw Materials, Stocks in
process, Semi-Finished and Finished Goods, Stores
and Spares and Book Debts both present and future
whether now lying loose or in cases or which are now
lying or stored in or about or shall hereinafter from
time to time during the continuance of the security of
these presents be brought into or upon or be stored or
be in or about of the Company's Factories, Premises
and godowns or wherever else the same may be or
be held by any party to the order or disposition of the
Company or in the course of transit or on high seas
or on order or delivery, howsoever and wheresoever
in the possession of the Company and either by the
way of substitution or addition.
2. First Pari-Passu charge of Axis bank and second pari-
passu charge of Yes bank on property admeasuring
1750 sq ft carpet area situated at Shop No.305,
Raghuvir Business Empire, village:Dumbhal,city:
Surat alongwith undivided share admeasuring 71.87
square meters beneath the building belong to Trident
Texofab Ltd.
3. First Pari-Passu charge of Axis bank and Second
Pari-Passu charge of Yes bank on all the pieces and
parcel of commercial shop No. 2004,admeasuring
89.480 sq meter of Super carpet area situated at
North Extension Building, City: Surat belongs to the
Hardik J Desai.
4. First Pari-Passu charge of Axis bank and second Pari-
Passu charge of Yes bank on Plot no 9, Sai Krupa,
Maheshwari Society,Opp Bandyalaxmi Soc-2, Piplod,
Surat, Gujarat.
5. First Pari-Passu charge of Axis bank and second
Pari-Passu charge of Yes bank on property being a
Flat no 01/B, Building A, Kassel Barun, Vesu, Surat,
Gujarat.
6. Lien on Fixed Deposit of ' 120 lakh by Axis Bank
7. Personal Guarantee of the followings except for GECL
facilities:
a) Mr. Hardik J Desai
b) Mr. Chetan C Jariwala
c) Mr Harendra Shantilal Bandhara
# Term Loans from SIDBI
Primary Securities:
All Fixed Assets of the Company which are created from
term loan lenders of the Company i.e SIDBI, whether in
present or future located in the Company's Factories,
Premises and godowns or wherever else the same may
be or be held by any party to the order or disposition of
the Company.
Collateral Securities:
1. Equitable Mortgage of the immovable property at R.S
No. 34/1 paikee 3, T.P No. 1, Plot No. 113, Meghdhanush
Co. Op. Housing Society LTD., Plot. No. A/1 Vesu,
Surat admesuring 228.26 Sq. Mtr and common area
98.70 Sq. Mtr, including Building & Structure thereon,
belong to Shri Manish Dhirajlal Halwawala and Smt.
Sonal Manish Halwawala.
Primary Securities:
1. First Pari-Passu charge of Axis bank and second pari-passu charge of Yes bank in all the Current Assets of the Company
namely Raw Materials, Stocks in process, Semi-Finished and Finished Goods, Stores and Spares and Book Debts both
present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter
from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in
or about of the Company's Factories, Premises and godowns or wherever else the same may be or be held by any party
to the order or disposition of the Company or in the course of transit or on high seas or on order or delivery, howsoever
and wheresoever in the possession of the Company and either by the way of substitution or addition.
Collateral Securities:
1. First Pari-Passu charge of Axis bank and second pari-passu charge of Yes bank on property admeasuring 1750 sq
ft carpet area situated at Shop No.305, Raghuvir Business Empire, village:Dumbhal,city: Surat alongwith undivided
share admeasuring 71.87 square meters beneath the building belong to Trident Texofab Ltd.
2. First Pari-Passu charge of Axis bank and Second Pari-Passu charge of Yes bank on all the pieces and parcel of
commercial shop No. 2004,admeasuring 89.480 sq meter of Super carpet area situated at North Extension Building,
City: Surat belongs to the Hardik J Desai.
3. First Pari-Passu charge of Axis bank and second Pari-Passu charge of Yes bank on Plot no 9, Sai Krupa, Maheshwari
Society,Opp Bandyalaxmi Soc-2,Piplod,Surat,Gujarat
4. First Pari-Passu charge of Axis bank and second Pari-Passu charge of Yes bank on property being a Flat no 01/B,
Building A, Kassel Barun, Vesu, Surat,Gujarat.
27. CAPITAL MANAGEMENT
The Company's objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going
concern so that Company can continue to provide maximum returns to share holders and benefit to other stake holders.
The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements
in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage
the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In
order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders or issue new shares.
The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
a) The fair values of the financial assets and liabilities
are included at the amount at which the instrument
could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation
sale.
b) The carrying amount of financial assets and
liabilities measured at amortised cost in the financial
statements are a reasonable approximation to their
fair values, since the Company does not anticipate
that the carrying amount would be significantly
different from the values that would be eventually be
recieved or settled.
c) The carrying amount of financial assets and liabilities
measured at cost in the financial statements where
sufficient information are not available or there
are wide range of measurement of fair value. The
Company does not anticipate that the carrying
amount would be significantly different from the
values that would be eventually be recieved or settled.
d) For financial assets and liabilities that are measured
at fair value, the carriying amounts are equal to the
fair values.
(iii) Financial Risk Management
The Company’s financial liabilities comprise mainly
of borrowings, trade payables and other payables.
The Company’s financial assets comprise mainly of
investments, cash and cash equivalents, other balances
with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and
Liquidity risk. The Board of Directors (‘Board’) oversee
the management of these financial risks. The following
disclosures summarize the Company’s exposure to
financial risks and information regarding use of derivatives
employed to manage exposures to such risks.
a) Market Risk
Market risk is the risk that the fair value of future cash
flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three
types of risks: interest rate risk, currency risk and other
price risk. Financial instruments affected by market risk
includes borrowings, investments, trade payables, trade
receivables, loans and derivative financial instruments.
Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Since the Company
have interest bearing borrowings, the exposure to risk of
changes in market interest rates is minimal. The Company
has not used any interest rate derivatives.
Foreign currency risk is the risk that the fair value or future
cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The Company does not enter into
any forward exchange contracts or derivative instruments
for trading or speculative purposes. The details of
exposures are given as a part of Note 31.
Other price risk is the risk that the fair value of a financial
instrument will fluctuate due to changes in market traded
price. Other price risk arises from financial assets such
as investments in equity instruments and bonds. The
Company is exposed to price risk arising mainly from
investments in equity instruments recognised at FVTPL.
As on 31st March,2025, The Company has an investment in
Market Traded Equity Intruments. The details are given in
the annexure to Note 4.1.
b) Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds,
derivative financial instruments, other balances with banks, loans and other receivables. For trade receivables, as a
practical expedient, the Company compute credit loss allowance based on a provision matrix. The provision matrix is
prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for
forward-looking estimates.
* Advance payments, is made against the Income Tax matter in Dispute amount for the A.Y.2017-18 ' 5,50,000/- has
been reduced from the liabilites as shown above. As a result "Income Tax matter in dispute" is shown on net basis. Such
Advance payment also shown in the Long term Loans & Advances (Note-5) under the line of item name "Other Non¬
Current Assets".
31. FOREIGN CURRENCY TRANSACTIONS & DETAILS OF DERIVATIVE INSTRUMENTS
The following derivative positions are open as at 31 March, 2025. These transactions have been undertaken to act as
economic hedges for the Company’s exposures to various risks in foreign exchange markets be designated as hedging
instruments.
(a) Forward exchange contracts being derivative instruments, which are not intended for trading or speculative purposes
but for hedge purposes to establish the amount of reporting currency required or available at the settlement date
of Long Term Borrowings.
38. OTHER DISCLOSURES:
a There are no proceedings which have been initiated
or pending against the Company for holding any
benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder.
b The Company has not been declared as Willful
Defaulter by any Bank or Financial Institution or
other Lender
c During the year, the Company does not have any
transactions with the companies struck off under
section 248 of Companies Act, 2013 or section 560 of
Companies Act, 1956.
d The Company does not have any transactions 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 survey or any other relevant
provisions of the Income Tax Act, 1961).
e The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial
year.
f The Company has reviewed the possible effects
that may result from the pandemic relating to the
COVID-19 on the carrying amounts of the assets. As
per management’s current assessment, no significant impact on carrying amounts of inventories, trade receivables,
investments and other financial assets is expected, and management will continue to monitor changes in future
economic conditions. The eventual outcome of the impact of the global health pandemic may be different from
those estimated as on the date of approval of these Standalone Financial Statements.
g The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
h The Company have not advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with
the understanding, 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 by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
i The Company have not received from any person(s) or entity(ies), including foreign entities (“Funding Parties”),
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 by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
39. Previous period figures have been reclassified and regrouped, wherever necessary, to conform to the current year's
presentation.
As per our Report of even date attached
For and on behalf of For and on behalf of
Shah Kailash & Associates LLP Trident Texofab Limited
Chartered Accountants
FRN: 0109647W/W100926
CA. Kailash Shah Hardik Desai Chetan Jariwala
Partner (Managing Director) (Whole-Time Director)
M. No.: 044030 DIN: 01358227 DIN: 02780455
Jenish Jariwala Rahul Jariwala
Place: Surat (Chief Financial officer) (Company Secretary)
Date: 29/05/2025 M NO. A70164
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