The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of a past event and It is probable that an outflow of resources embodying economics benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are disclosed when there is a possible obligations that arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognizes nor disclosed in the financial statements.
Basic Earnings per Share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.For the purpose of calculating diluted per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
The Company has one class of equity shares having a face value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. In the event of dividend proposed by the Board of Directors the same is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of Interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their respective shareholding.
2.3 The shareholders of the Company in Annual General Meeting (AGM) held on 28th September, 2022 inter-alia approved the increase in Authorised Share Capital of the Company from Rs. 20.00 lakhs/- to Rs.1000.00 lakhs divided into 100,00,000 equity shares of Rs.10/- each. The Company has issued Bonus shares during the last financail year in the ratio of 35 : 1 (i.e. Thirty Five bonus equity share of Rs.10/- each for every one fully paid up Equity Share of Rs.10/- each) to the shareholders by capitalizing existing securities premium amounting to Rs.94.50 lakhs and by capitlising existing surplus in profit and loss account amounting to Rs.605.50 lakhs total amount capitalised by issue of bonus shares was Rs.700.00 lakhs. Accordingly, 70,00,000 equity shares by way of bonus shares were issued and allotted on 29th September 2022.
2.4 Allotment of Bonus Shares during the year and during preceding five years:
The Company has allotted 70,00,000 Equity Shares as fully paid up shares by way of bonus shares during financial year 2022-23.
2.5 During the last finacial year 2022-23, the Company, had completed the Initial Public Offering (IPO) of 24,99,600 Equity Shares of Face Value of Rs. 10 each for cash at a price of Rs.225 per Equity Share aggregating to Rs.5624.10 lakhs comprising a Fresh Issue of 18,50,000 Equity Shares aggregating to Rs. 4162.50 lakhs and on offer for sale of 6,49,600 Equity Shares aggregating to Rs.1461.60 lakhs by
Term Loan sanctioned amount of Rs.100.00 Lakhs under SIDBI - loans for Purchase of Equipments for Enterprise's Development (SPEED) Scheme : Interest Rate- 9.35% p.a.Secured against composite hypothecation of all equipment, plant & machinery and other assets of Company which have been acquired under the (SPEED) Scheme. Payable in 54 monthly installment, First 53 Installments of Rs.1.85 Lakhs each ( Now Reduced to Rs.1.43 Lakhs on account of receipt of Government Subsidy of Rs. 15.00 Lakhs ) and last 54th installment of Rs.1.95 Lakhs beginning from January 2020.
Term Loan sanctioned amount of Rs.41.50 Lakhs under SIDBI Scheme for Priority Assistance to MSME's based on Hybrid or Alternate Security Model (PRATHAM) Scheme Interest Rate- 9.45% p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the PRATHAM scheme. Payable in 54 monthly installment, First 53 Installments of Rs.0.77 lakhs each and last 54th installment of Rs.0.77 lakhs beginning from June 2020.
Term Loan sanction amount of Rs.27.50 Lakhs under SIDBI Scheme for EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS) TWARIT Scheme Interest Rate- 8.5 % p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the TWARIT scheme. Payable in 48 monthly installment, First 47 Installments of Rs.0.57 lakhs each and last 48th installment of Rs.0.59 lakhs beginning from August, 2020.
Term Loan sanctioned amount of Rs.161.30 Lakhs under SIDBI Scheme - ARISE Scheme. Interest Rate-6.75 % p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the ARISE scheme. Payable in 60 monthly installment, First 59 Installments of Rs.2.73 lakh each and last 60th installment of Rs.2.74 lakh beginning from August, 2022.
Term Loan sanctioned amount of Rs.2,65.00 lakhs under SIDBI Scheme -ARISE. Interest Rate-8.00% p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the ARISE scheme as well as all movable assets charged by way of extention of hypothecation charge created by the Company in favour of SIDBI for securing ther earlier term loans of Rs.100.00 lakhs, Rs.41.50 lakhs, Rs.27.50 lakhs and Rs.163.81 lakhs vide Deed of Hypothecation dated 12th July 2019, 18th November, 2019, 13th August, 2020 and 05th August, 2022. Payable in 60 monthly installment, First 59 Installments of Rs.4.42 lakhs each and last 60th installment of Rs.4.22 lakhs beginning from February, 2023.
Term Loan Sanctioned amount Rs.9.35 lakhs against purchased of Vehicle. Rate of Interest 10% p.a.
Secured against Motor Car purchased from the said proceed. Repayable in 84 equated monthly installment beginning from November 2022.
During the year Company has strarted development of mechncical seals conforming to API682 standards, Boiler Feed Applications (500 MW & above) Refinery applications which involve double seals for high tempreature and high speed mechnical seals. This innovative new seals will benefit in Oil and refinery, power plant and other industries.
Development activities involve internally generated a plan or design for the production of new or substantially improved products and process. Development expenditures are capitalised considering, costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete the development and to use or sell the asset. As the project is under development, the expenditure incurred on the said project are shown under Intangible under development.
36 In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisable in the ordinary course of business at least equal to the amount at which they are stated and all known liabilities provided for.
37 Expenditure incurred on Corporate Social Responsibility (CSR) activities:
Gross amount required to be spent during the financial year is Rs.23.15 Lakhs (31st March 2023 Rs.17.76 Lakhs) Amount Spent upto 30/09/2023 is Rs.8.27 Lakhs & Rs.14.88 Lakhs was spent before 31-03-2024.
Note:
a With the reduction in total debt during the year and increase in shareholders' equity on account of profit during the year, the ratio has decreased compared to previous year
b The inventories of the Company increase due to sales order on hand and due to purchases of large inventories in estimation of projected order resulting into decrease in inventory turnover ratio.
c During the year the company has incurred marketing and business development expenses and wages in order to expand the business resulting into decrease in net profit ratio.
d During the year the Company has sold all its investments in shares on which capital gain is not much high due to market conditions. Therefore return on investment decreases as compared to previous year.
The Company had not granted loans or advances in the nature of loans to promoters, directors, KMPs and other related parties.
The Company does not have any Benami property, as such no proceeding under the Benami Transactions (Prohibition) Act, 1988 and the Rules made thereunder has been initiated or pending against the Company for holding any Benami property.
The Company has availed Cash Credit - under CGTMSE working capital facility from Axis Bank Ltd. aggainst the security of current assets. However the company has not availed the facility and the said facility was closed on 27/09/2023. The Company is not required to file the periodical statement.
The Company has not been declared as Wilful Defaulter by any bank or financial institution or other lender.
There were no transactions with the companies struck off under Sec. 248 of the Companies Act, 2013 or Sec. 560 of the Companies Act, 1956 during the year as such there is nothing to disclose.
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the stipulated period.
(A) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(B) The Cmpany has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
i) 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
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Company does not have any transaction which is not recorded in the books of accounts that have 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)
As per our report of even date
For R. R. Shah & Associates for and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No.112007W Sd/- Sd/-
(Umar A.K. Balwa) (Hanif S. Chaudhari)
Managing Director Whole Time Director
DIN :00142258 DIN :02817594
Sd/-
Sd/- Sd/-
(Rajesh S. Shah) (Neha Chheda) (Ratan Kandare)
Partner Company Secretary Chief Financial Officer
Membership No.017844 PAN: ALHPV3879N PAN:BHZPK1982L
Place : Mumbai Place : Mumbai
Date : 28/05/2024 Date : 28/05/2024