2.13 Provisions, Contingent liabilities and Contingent assets
A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.
2.14 Earnings per Share
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the Period/year. 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 are adjusted for the effects of all dilutive potential equity shares.
2.15 Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.
* During the FY 23-24 the company has issued bonus shares of 80,00,000 at Rs. 10 each by capitalising reserves & surplus balances.
* During the FY 23-23 the company has issued bonus shares of 19,90,000 at Rs. 10 each by capitalising reserves & surplus balances.
1. Terms/rights attached to equity shares:
1. The company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.
ii. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.
2. Company does not have any Revaluation Reserve.
6. Equity shares movement during the 5 years preceding March 31, 2024
i) Equity shares issued as bonus
The Company allotted 80,00,000 equity shares as fully paid up bonus shares by capitalisation of reserves & surplus balances during the FY 23-24
The Company allotted 19,90,000 equity shares as fully paid up bonus shares by capitalisation of reserves & surplus balances during the FY 2022-23.
The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in "Note: I" on Property, plant and equipment to the financial statements, are held in the name of the Company.
Note: 2 There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
i. The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender
ii. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note: 4 The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
• The equity shares of the company have been listed with the BSE Limited ("BSE") i.e. the stock exchange on 17th May, 2024 on completion of its initial Public Offering (IPO). The Company has accordingly issued 36,00,000 equity shares of face value 10 each at a premium of 57 per share aggregating to 2412 lakhs.
• On 31.05.2024, the company acquired remaining 3892858 equity shares of Jet Inks Pvt. Ltd having face value Rs. 10 each at Premium of 25.96 per share aggregating to 1400 lakhs and hence, now Jet Inks Pvt. Ltd. became wholly owned subsidiary of the Aztec Fluids and Machinery Limited.
The company has register all its charges within time or extended time period given in the Companies Act, 2013.
A disclosure for a contingent liability is usually reported in the notes to financial restatements when there is a possible obligation that may, require an outflow of the Company's resources.
Disclosure of the outstanding dues of Micro or Small Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act-2006, and the Company has disclosed in the Note No. F of the financial statement, the same as required by Schedule III to the Companies Act, 2013.
Note: 9 Related party transactions are already reported as per AS-18 of Companies (Accounting Standards) Rules, 2006, as amended, in the Note Z of the enclosed financial statements.
Note: 10 Deferred Tax liability/Asset in view of Accounting Standard - 22: "Accounting for Taxes on Income", the disclosure of the same has been reported in the Note C of the enclosed financial statement.
During the FY 23-24 the company has issued bonus shares of 80,00,000 at Rs. 10 each by capitalizing reserves & surplus balances. Thus, the total 1,00,00,000 equity shares have been considered while deriving EPS of the Company retrospectively for FY 22-23.
Previous year figures have been recasted/restated wherever necessary including those as required in keeping with revised Schedule III amendments.
For, K A R M A & Co. LLP Chartered Accountants FRN No. 127544W/W100376
Place: Ahmedabad Date: 06th June, 2024
CA Jignesh A. Dhaduk Designated Partner M.No.129149 UDIN: 24129149BKEBJO2134