h. PROVISIONS AND CONTINGENT LIABILITIES AND ASSETS
Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past
events, 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.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities
Contingent liabilities are possible obligations that arise from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of
outflow of economic benefits is remote.
i. EMPLOYEE BENEFITS
Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled wholly within
twelve months after the end of the reporting period in which the employees render the related service are
recognized in respect of employee's services up to the end of the reporting period and are measured at an
undiscounted amount expected to be paid when the liabilities are settled. Gratuity has been calculated based on
date of joining as 11th April 2023 which is the date of incorporation of the company for all the employees.
Post Retirement Employee Benefits
Gratuity
(a) Defined contribution plans:
Defined contribution plans are employee state insurance scheme and Government administered pension fund
scheme for all applicable employees and superannuation scheme for eligible employees. The Company’s
contribution to defined contribution plans is recognized in the Standalone Statement of Profit and Loss in the
financial year to which they relate.
(b) Defined benefit plans
Defined Benefit plans are the plans for which the benefits has been defined for the eligible employees which are
meant to be paid to then at the time of retirement.
j. INCOME TAXES
Current Tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any relating
to income taxes. It is measured using tax rates enacted for the relevant reporting period. It is determined as the
amount of tax payable under the provisions of Income Tax Act, 1961, in respect of taxable income for the year.
Deferred Tax
Deferred income taxes reflect the impact of current year timing difference between taxable income and accounting
income for the year and reversal of timing difference of earlier year. Deferred tax is measured based on the tax
rates and the tax laws enacted or substantively enacted at the balance sheet date.
Current Tax for the year
Current tax for the year is recognized as an expense in the Statement of Profit and Loss. However, if it relates to
an item that is recognized directly in the financial statements outside the Statement of Profit and Loss (such as
adjustments on account of capital receipts), the tax effect is also recognized outside the Statement of Profit and
Loss, in accordance with the treatment of the underlying item.
k. FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS
On initial recognition, all foreign currency transactions are converted and recorded at exchange rates prevailing
on the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are
translated at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are
recognised in the Statement of Profit and Loss. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
l. REVENUE RECOGNITION
Our Company’s revenue is primarily generated from sale of Technical Textile used by the luggage,
medical arch support, chairs, shoes and apparels industry. Income is recognized on accrual basis based
on the regular invoices raised on the clients as per the terms of Agreements or other arrangements as the
case may be. Revenue is measured at fair value of consideration received/receivable taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.
Other Income
Other Income is accounted for on accrual basis except where the receipt income is uncertain.
m. INVESTMENTS
Long-term Investments are carried at cost. However, provision for diminution in value is made to recognize a
decline, other than temporary, in the value of the investments.
Current Investments are carried at lower of cost or market value. The cost of securities sold is determined on
the first-in-first-out (FIFO) method.
n. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity share
holder, by weighted average number of equity share outstanding during the period.
Diluted earnings per share is computed by dividing the net profit or loss attributable to equity share holder by
weighted average number of equity and equivalent diluted equity share outstanding during the year except where
the result would be antidilutive.
o. CASH AND CASH EQUIVALENTS
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. Cash flows from operating,
investing and financing activities of the Company are segregated, accordingly. Cash and cash equivalents in the
cash flow comprise cash at bank, cash/cheques in hand and short-term investments with an original maturity of
three months or less.
p. CWIP
CWIP includes costs directly attributable to projects in progress, such as the building currently under development.
Direct costs comprise materials, labor, equipment, subcontractors, and other resources used specifically for the
project. Indirect costs, including administrative expenses, insurance, and supervision, are also allocated as
appropriate. Materials inventory includes items purchased but not yet utilized, held in storage or on-site. Labor
costs reflect both direct construction labor and supporting indirect labor associated with the project.
The company was a limited liability firm as on 31.03.2023, and later as on 11.04.2023 got converted into private limited company thereafter
into public limited company as on 20.10.2023 and hence the company had no equity share capital in the previous years, it had partners' fixed
capital which has been now reclassified under shareholder's equity .
The Board of Directors, at its meeting held on June 12, 2023, approved the Bonus issue of shares in the ratio of 4:1 to the existing
shareholders of the cmpany as on of the company and accordingly the Board of Directors, at it’s meeting held on July 15, 2023 approved the
allotment of equity bonus shares of 40,00,000 (Forty Lakhs Shares) Equity Shares of ^ 10/- each which resulted in increase in paid-up, issued
and subscribed equity shares capital of the Company from 10,00,000 equity shares to 50,00,000 equity shares face value of ^ 10/- per share.
As in the reporting period of restated financials, the company was a partnership firm and accordingly, was not following the provisions of
companies’ act, 1956 or companies act, 2013, as the case may be, in respect of rates of depreciation charged on fixed assets. However, in the
current period financials, the company has adopted the method and rates of depreciation in terms of Schedule XIV of companies’ act, 1956 or
Schedule II of companies’ act, 2013, as applicable in respective financial year. The company has recalculated the depreciation since financial
year 2018-19 and accordingly, retrospective impact has been given in the financials, hence adjusments due to the change in accounting policy
has been made.
Pursuant to the resolution passed by the Board of Directors on January 18, 2025, the Company approved the issuance of share warrants
convertible into equity shares on a preferential basis. The said issuance was subsequently approved by the shareholders at their meeting held
on February 12, 2025. The Company received in-principle approval from the National Stock Exchange of India Limited (NSE) for the
proposed issuance on March 19, 2025.
The Company has approved the allotment of 3,15,000 share warrants, each convertible into or exchangeable for one fully paid equity share of
the Company of face value ^10 each at a price of ^765 per warrant (including a premium of ^755 per warrant). The total amount to be raised
through this issue aggregates to ^2,409.75 Lakhs.
Till March 31, 2025, the Company has received ^301.22 Lakhs towards the aforesaid preferential issue of share warrants. The e quity shares
underlying these warrants are yet to be allotted.
- The Property of Shree Kami Fabcom Limited mortgage to ICICI bank on behalf of Loan taken for IGK Technical Textiles LLP.
In the opinion of the Board of Directors and to the best of their knowledge and belief, the valuation on realisation of financial assets and other assets in the
ordinary course of business would not be less than the amount at which they are stated in the financial statements.
38 The Company was formed upon conversion of Limited Liability Partnership into Company vide certificate of incorporation dated April 11, 2023. The Company
has been converted with paid up equity share capital of Rs. 1,00,00,000 divided into 10,00,000 equity shares of Rs. 10 each. The status of the Company prior to
April 11, 2023 was of a Limited Liability Partnership . Hence, EPS and NAV per share for all the years has been calculated by considering the number of shares
outstanding post conversion of Limited Liability Partnership into Company, except for the EPS for the year ended 31.03.23. in which the number of shares has
been restated because of Bonus Issue in the Current Year.
39 The certificate of Incorporation of the company is dated 11/04/2023 but, since, the previous audited figures were till 11.04.2023 there will be an overlapping of
figures hence while auditing the figures we have made the financial statements from 12.04.2023 till 30.11.2023. Also, no bills were issued or documents were
raised on the name of the company from 01.04.23 to 11.04.2023.
i) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017
ii) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami Property.
iii) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
iv) The company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
v) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.
vi) The Company has not advanced or loaned or invested any fund to any person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing
or otherwise) 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 Company (Ultimate Beneficiaries); or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries,
vii) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the
Company shall:
a) 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
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
viii) The Company do not have any such transactions 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.
ix) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance
with the guidelines on wilful defaulters issued by the Reserve Bank of India during the year.
Note - 44
Previous year's figures have been regrouped and/or re-arranged wherever necessary, to conform the current year classification.
As per our annexed report of even date
For and on behalf of the Board
For Baid, Agarwal Singhi & Co. SHREE KARNI FABCOM LIMITED
Chartered Accountants (Formerly known as Shree Karni Fabcom LLP)
Firm's Registration No. with ICAI:0328671E (CIN : L47820GJ2023PLC140106)
Rajiv Lakhotia Manoj Kumar Karnani
Managing Director Director
DIN: 02939190 DIN: 08156230
(Dhruv Narayan Agarwal)
Partner
Membership No.: 306940
Place : Kolkata Dhiraj RamKishor Vaishnav Arbind Kumar Lahoty
Date: 29th Day of May, 2025 Company Secretary CFO
UDIN: 25306940BMJBBM4942
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