(h) Provisions, Contingent Liabilities and Contingent Assets
(As per AS 29 “Provisions. Contingent Liabilities and Contingent Assets')
Provisions are recognized for when the company has at present iegal or contractual obligation as a result of past events only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.
Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly in control of the company are not recognized in the accounts The nature of such liabilities and an estimate of its financial effect are disclosed in notes to the Financial Statements (if any). Contingent assets are neither recognized nor disclosed in the financial statements.
(i) Cash and Cash Equivalents
Cash comprises cash on hand and demand deposit with banks.
Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value
(j) Cash Flow Statement
(As per AS 3 "Cash Row Statements")
Cash flow are reported using the direct method by the Company the cash floats from operating, investing and financing are segregated based on the available information Cash flows are inflows and outflows of cash and cash equivalents.
Operating activities are the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities.
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents
Financing activities are activities that result in changes in the size and composition of the owners' capital and borrowings of the enterprise
(k) Eaminss Per Share
(As per AS 20 "Earnings per Share")
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted forevents such as bonus shares other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
(1) Related Party Disclosures
(As per AS 18 ‘Related Party Disclosures')
Related Party Relationships are as below.
(a) enterprises that directly, or indirectly through one ormore intermediaries, control, or are controlled by. or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries); - No such enterprise
(b) associates and joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or a joint venture; - No such associates or joint ventures
(c) individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual -No such Individual
(d) Key management personnel and relatives of such personnel;
This includes following individuals;
1 Kalpeshkumar Ishwarlal Pandya - KMP
2. Chetankumar Ishwarlal Pandya - KMP
3. Ishwarlal Dayalal Pandya - Relative of KMP
4. Neetaben Ishwarlal Pandya - Relative of KMP
5. Viralben Kalpeshkumar Pandya - Relative of KMP
6. Jalpaben Chetankumar Pandya - Relative of KMP 7 Dineshbhai Dayalal Pandya - Relative of KMP
(e) enterprises over which any person described in (c) or (d) is able to exercise significant influence This includes enterprises owned by directors or major shareholders of the reporting enterprise and enterprises that have a member of key management in common with the reporting enterprise
This includes following enterprises;
1 Gokul Industries
2 Technopack (Rafaleshwar)
Accordingly, following are the disclosures for the year;
1. Key Managerial Personnel: Directors (i.e. Kalpeshkumar Pandya and Chetankumar Pandya) are paid compensation in form of remuneration amounting to Rs 24.00.000 in FY 2023-24.
2. Loan to/from Directors/ other related parties : Kindly refer Note 5. relating to "Long Term Borrowings" for the amount of loans outstanding to related parties as on 31st March 2024. There are no loans advanced to such related parties
3 Rent for the factory' shed has been paid amounting to Rs 60,000 to Gokul Industries and Rs. 60.000 each to Ishwarlal Pandya and Neetaben Pandya (Related parties of KMP) Refer Note 25 relating to "Other Expenses".
4. Purchases have been done from Technopack (Rafaleshwar) during the current FY amounting to Rs.
10 53.77,362 and payment has been done byfor Rs 6 03.06 087 (Current year Bank Payment TDS) during the entire year. Sales have been done to Technopack (Rafaleshwar) during the current FY amounting to Rs.
5 10.31.914 A closing balance of 59.60.639 stands by settling the account However, the transactions are carried out at arm's length prices by the management
Accounting Ratios in which denominators are relating to Equity / C apital Employed/ Investments, the ratios have become unfavourable due to significant increase in the share capital of the company bv way of Initial Public Offering m the month of Novemeber 2022.
However the results of such additional capital is vet to be reaped bv the company (increase in sales/PBIT significantly), as the additional machinery for which die capital is raised is vet to be delivered, and is expected to be delivered in the next FY.
As per our report of even date For and on behalf of the Board of
KARIA & ASSOCIATES Director
Chartered Accountants FRN No.: 136752W
Deepali Malpani (DHCPM9814E)
Secretary
BRIJESH H. KARIA DIN : NA
Proprietor
Mem.No.: 149107 _ _ *
UDIN : 24149107BKCLTJ1235 Kalpeshkumar I. Pandya Chetankumar L Pandya
MORBI, May 21, 2024 Chief Financial Officer Managing Director
DIN : 08196642 DIN : 08196693