xxiv) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation.
Provisions are not discounted to present value and are determined based on best estimate required to settle
the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
xxv) Contingent Liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
xxvi) Earnings per Share
The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the
period by the weighted average number of equity shares outstanding during the period.
The number of shares used in computing diluted earnings per share comprises the weighted average shares
considered for deriving basic earnings per share, and also the weighted average number of equity shares which
could be issued on the conversion of all dilutive potential equity shares
xxvii) Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle
(determined at 12 months) and other criteria set out in Schedule III of the Act.
xxviii) Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of
transactions of a 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. The cash flows from operating,
investing and financing activities are segregated.
xxix) Operating Segments
Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating
Decision Maker (CODM).
xxx) Exceptional Items
When items of income and expense within statement of profit and loss from ordinary activities are of such size,
nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the
nature and amount of such material Items are disclosed separately as exceptional items.
xxxi) Recent accounting pronouncement
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,
2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind As 116 - Leases, relating to
sale and lease back transactions, applicable from April 1, 2024. The Company has assessed that there is no
impact on its financial statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating
exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods
beginning on or after April 1,2025. The Company is currently assessing the probable impact of these amendments
on its financial statements.
xxxii) Critical estimates and Judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise Judgement in applying the Company’s accounting
policies.
The estimates and judgements involve a higher degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally
assessed. Detailed information about each of these estimates and judgements is included in relevant notes.
Critical estimates and judgements
The areas involving critical estimates or judgements are
o Estimation of current tax expenses and payable
o Estimated useful life of Intangible assets
o Estimation of defined benefit obligation
o Estimation of Provisions and Contingencies
I. Nature of Security
1. Overdraft From H.D.F.C Bank is Secured Against Fixed Deposits of the Company.
2. Working Capital Loan From HDFC Bank is Secured Against the Hypothecation of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of
Scaffolding Division situated at Murbad .
3. Export Packing Credit Against Confirmed Orders From HDFC Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
4. Export Packing Credit Against Confirmed Orders From Kotak Mahindra Bank is Secured Against the
Hypothecation of Stock & Book Debts Both Present & Future of Textile Division situated at Murbad & Amravati
5. Export Packing Credit Against Confirmed Orders From CITI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
6. Export Packing Credit Against Confirmed Orders From ICICI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future of Textile Division sitauted at Murbad & Amravati
7. Working Capital Loan from ICICI Bank is Secured Against the Hypothecation of Stock & Book Debts Both
Present & Future of Textile Division situated at Murbad & Amravati
8. Export Packing Credit Against Confirmed Orders From IDBI Bank is Secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
9. Export Packing Credit Against Confirmed Orders From HSBC Bank was secured Against the Hypothecation of
Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific
Immovable Properties of Scaffolding Division Situated at Murbad.
10. Working Capital Loan From CITI Bank was secured Against the Hypothecation of Stock & Book Debts Both
Present & Future And Fixed Assets & Equitable Mortgage of the Companies Specific Immovable Properties of
Scaffolding Division situated at Murbad .
II. Quarterly Statements of Current Assets filed by the Company with Banks are in agreement with the Books
of Accounts.
Note 35 : Segment Reporting
Ind AS 108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and major customers.Based on the
management approach as defined in Ind AS 108, the chief operating decision maker (CODM) evaluates the companies
performance and allocates resources based on an analysis of various performance indicators by business segment
and geographic segment. Accordingly, information has been presented both along business segment and geographic
segment.The accounting principle used in the preparation of financial statements are consistently applied to record
revenue and expenditure in individual segments,and are as set out in the significant accounting policies.
The Company has identified Drum Closures,Scaffoldings,Yarn & Fabric as primary business segments of the Company
(Continuing Operations) and has classified Power Division as Discontinued Operations.
Note 36: Fair Value Measurements
A. Financial instruments by category and fair value hierarchy :
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
During the reporting period ended March 31,2025 and March 31,2024, there were no transfers between level 1 and
level 2 fair value measurements.
B. Measurement of fair values
The following methods and assumptions were used to estimate the fair values of financial instruments :
i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables,
bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely
due to the short-term maturities of these instruments.
ii) The fair values of the equity / Mutual Fund investments which are quoted, are derived from quoted market
prices in active markets.
Note 37 : Financial Risk Management
Risk management framework
The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company’s primary risk management focus is to minimize potential adverse effects of all the risk on its financial
performance. The Board of Directors and the Audit Committee are responsible for overseeing the Company’s risk
assessment and management policies and processes.
The Company’s has exposure to the following risks arising from financial instruments:
Ý Credit risk ;
Ý Market risk ; and
Ý Liquidity risk
1. Credit Risk
The Credit risk arises from the possibility that the counter party may not be able to settle their obligations as
agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.
Individual risk limits are set and periodically reviewed on the basis of such Information.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the company. The Company categorises a trade receivable for write off when a
debtor fails to make contractual payments or on case to case basis. Where trade receivables have been written
off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognized as Income in the statement of profit or loss.
The Company measures loss rate for trade receivables from Individual customers based on the historical trend,
industry practices and the business environment in which the entity operates . Loss rates are based on Past Trends.
Based on the historical data, no probable loss on collection of receivable is anticipated & hence no provision is
considered.
In case of Credit risks from balances with banks and financial institutions, the Company attempts to limit the credit
risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit¬
rating agencies.
In addition, the Company is exposed to credit risk in relation to financial guarantees given to banks and other
counterparties. The Company’s maximum exposure in this respect is the maximum amount that the Company would
have to pay if the guarantee is called upon. The maximum exposure relating to financial guarantees instruments is
disclosed in note no 31 (contingent liabilities).
2. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises mainly of currency risk and interest rate risk. Financial Instrument
affected by Market risks includes loans and borrowings and foreign Currency Receivables and payables .The
Company has set processes and policies to assess, control and monitor the effect of the risk on the financial
performance of the company.
i) Currency Risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the
relevant period.The Company is exposed to currency risk on account of its operating and financing activities.
The functional currency of the Company is Indian Rupee. The senior management personnel are responsible for
identifying the most effective and efficient ways of managing by entering into forward contracts and monitored
by board of directors.
Unhedged Foreign Currency exposures
(a) Particulars of Unhedged Foreign Currency exposures as at the reporting date
b) Foreign Currency Risk Sensitivity
A reasonably possible strengthening / (weakening) of the Indian Rupee against various below currencies at
31st March would have affected the measurement of financial instruments denominated in those currencies
and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in
particular interest rates, remain constant and ignores any impact of forecast sales and purchases
A change in 1% in Foreign Currency would have following Impact on Profit before tax assuming that
all other variables, in Particular interest rate remain constant & ignoring any impact of forecast Sales &
Purchases.
ii) Interest rate Risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates.The Company has exposure to Interest rate risk, arisisng principally
on changes in Treasurey Bills rates / SOFR rates. As the Percentage of Borrowings with Floating Interest rate
is very small as Compared to Total Borrowings & hence the interest rate risk for the Company as whole is very
Low.
3. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a
reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet obligations when
due. The Company maintains flexibility in funding by maintaining availability under committed credit lines. The
Management monitors rolling forecasts of the Company’s Liquidity position and cash and cash equivalents on the
basis of the expected cash flows. The Company assessed the Concentration of risk with respect to its debt and
concluded it to be low.
For the Purpose of Company’s Capital management, Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The Primary Objective of the Company’s Capital management is to ensure that
it maintains an efficient capital Structure and maximise shareholder Value. The Company is monitoring capital using Net
debt equity ratio as its base,which is Net debt to equity.
The company’s Policy is to keep Net debt equity ratio below 1.00 and infuse capital if and when required through better
operational results and efficient working capital Management
(i) The Company does not have any Benami property , where any proceeding has been initiated or pending against
the Company for holding any Benami Property.
(ii) The Company does not have any transcations with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities 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 Company ( Ultimate Beneficiaries) or
(b) provide any gaurantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any persons or entities , 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.
(vii) The Company does 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 ( such
as search or survey or any other relevant provisions of the Income Tax Act , 1961.
Note 42 : Other Accompanying Notes
1) The Figures have been rounded off to the nearest lakhs of Rupees upto two decimal Places.
2) Previous Years Figures have been regrouped / rearranged where ever necessary to make them Comparable with
the Current year Figures.
3) Note 1 to 42 Forms an Intergral Part of the Financial Statements.
As per our report of even date
For M.L.Sharma & Co For and on behalf of Board of Directors
Chartered Accountants
Firm Reg.No.109963W
Jinendra D Jain (Partner) Dr. Sharad Kumar Saraf Sudarshan Kumar Saraf
M. No. 140827 Chairman & Managing Director Co-Chairman & Managing Director
DIN 00035843 DIN 00035799
Place: Mumbai Neeraj Rai Navneet Kumar Saraf Ashish Kumar Saraf
Date : 29th May, 2025 Company Secretary Whole-time Director & CEO Whole-time Director & CFO
DIN 00035686 DIN 00035549
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