Eureka Industries Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

j) Inventories:

• Inventories are valued at lower of cost or net realisable value.

• Cost of inventories have been computed to include all costs of purchases, cost of conversion, all non-refundable duties & taxes and other costs incurred in bringing the inventories to their present location and condition.

• The basis of calculating cost for traded goods and stores and spares is weighted average cost method. For certain categories of traded goods it is determined based on weighted average cost of respective commodity lot basis.

• Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the available evidence and past experience of the Company.

k) Provision, Contingent Liabilities and Contingent Assets

Provisions: A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. The amount recognised 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. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of time value of money is material).

Contingent liabilities: Contingent liabilities are not recognized but are disclosed in notes to accounts.

n) In the opinion of the board of Directors, Current Assets, Loans and Advances a value of realization equivalent to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in the accounts for all the known liabilities.

o) Fair Value

The Company measures certain financial instruments at fair value at each balance sheet date. The fair value measurement is based on the presumption that the transaction to sell

the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as under, based on the lowest level input that is significant to the fair value measurement as a whole:

A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

This note summarizes the accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

p) The management of company has received written representation from all the directors, that companies in which they are directors had not defaulted in terms of section 164(2) of the companies Act, 2013, and the representation from directors taken in Board that Director is disqualified from being appointed as Director of the company.

q) Earnings per share (EPS):

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed by dividing the profit or loss attributable to ordinary equity holders by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares,

as appropriate.

Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share

Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equities shares outstanding during the year.

(b) Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lacs as per the requirement of Schedule III, unless otherwise stated.

r) Off Setting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when, and only when, there is a legally enforceable right to offset the recognized amount and there is intention either to settle on net basis or to realize the assets and to settle the liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or counterparty.

s) Other Note:

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, for the financial year commencing April 1, 2023, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The interpretation and guidance on what level edit log and audit trail needs to be maintained evolved during the year and continues to evolve.

In the company, the accounting software has a feature of audit trail, but it was disable at an application level for maintenance of books of accounts and relevant transactions. However, the global standard ERP used by the Company has not been enabled with the feature of audit trail log at the database layer to log direct transactional changes, due to present design of ERP. This is being taken up with the vendor. In the meanwhile, the Company continues to ensure that direct write access to the database is granted only via an approved change management process.

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Mar 31, 2024

(x) Provisions and contingencies:

Provisions: A provision is recognized when the Company has a present obligation as a result of past events
and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a
reliable estimate can be made. The amount recognised 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. When a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of
time value of money is material).

Contingent liabilities: Contingent liabilities are not recognized but are disclosed in notes to accounts.

(xi) Cash and cash equivalents: Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three months or less from the date of
acquisition) and highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and
demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft
and are considered part of the Company’s cash management system.

(xii) Related Party Disclosure:

List of related parties where control exists and also related parties with whom transactions have taken place
and relationships, has been disclosed in Annexure -1 to the Notes to Accounts.

(xiv) In the opinion of the board of Directors, Current Assets, Loans and Advances a value of realization equivalent
to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in the
accounts for all the known liabilities.

(xv) Property, Plant and Equipment:

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any.
The cost of property, plant and equipment comprises its purchase price/ acquisition cost, net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the
tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other
incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and
equipment up to the date the asset is ready for its intended use.

Depreciation on Property, plant and equipment (other than freehold land) has been provided on the
Diminishing method as per the useful life prescribed in Schedule II to the Companies Act, 2013, in whose

case the life of the assets has been assessed as under based on account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological
changes, manufacturers warranties and maintenance support, etc.

The estimated useful life of the tangible assets and the useful life are reviewed at the end of each financial
year and the depreciation period is revised to reflect the changed pattern, if any. An item of property, plant
and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from
continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant
and equipment is determined as the difference between the sales proceeds and the carrying amount of the
asset and is recognized in the statement of profit and loss.

(xvi) Investment & Financial Assets

(a) Classification

The Group classifies its financial assets in the measurement categories:

* Those to be measured subsequently at fair value, and

* Those measured at amortised cost.

The Classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded in profit or loss. For investment in equity
instruments, this will depend on whether group has made an irrecoverable election at the time of initial
recognition to account for the equity investment at fair value through other comprehensive income.

(b) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

A. The contractual rights to the cash flows from the financial asset have expired, or B. The Company has
transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either

i) The Company has transferred substantially all the risks and rewards of the asset,

or

ii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset,

but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the
Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Company
could be required to repay.

(c) Impairment of financial assets

The Company assesses impairment based on expected credit loss (ECL) model to the following:

A. Financial assets measured at amortized cost B. Financial assets measured at fair value through other
comprehensive income

Expected credit losses are measured through a loss allowance at an amount equal to:

A. The 12-months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

B. Full time expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables. It recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance for
trade receivables. The provision matrix is based on its historically observed default rates over the expected
life of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the
historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the
Company reverts to recognising impairment loss allowance based on 12-months ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense
in the statement of profit and loss. The balance sheet presentation for various financial instruments is
described below:

A. Financial assets measured as at amortised cost and contractual revenue receivables - ECL is presented as
an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The
allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not
reduce impairment allowance from the gross carrying amount.

B. Financial assets measured at FVOCI - Since financial assets are already reflected at fair value,
impairment allowance is not further reduced from its value. Rather, ECL amount is presented as
accumulated impairment amount in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the
basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to
enable significant increases in credit risk to be identified on a timely basis.

Financial Liabilities

a) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables,
net of directly attributable transaction costs.

Subsequently, all financial liabilities are measured at amortised cost or at fair value through profit or loss. The
Company’s financial liabilities include trade and other payables, loan and borrowings including bank

overdrafts.

b) Subsequent measurement

A. Financial liabilities measured at amortised cost

B. Financial liabilities subsequently measured at fair value through profit or loss Financial liabilities at fair
value through profit or loss include financial liabilities held for trading and financial liabilities Financial
liabilities designated upon initial recognition at fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated
as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These
gains/ losses are not subsequently transferred to profit or loss. However, the Company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in
the statement of profit or loss. The Company has not designated any financial liability as at fair value
through profit or loss.

c) Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognized in the statement of profit or loss.

(wii) Fair Value

The Company measures certain financial instruments at fair value at each balance sheet date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset
or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their best economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as under, based on the lowest level input that is
significant to the fair value measurement as a whole:

A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

This note summarizes the accounting policy for fair value. Other fair value related disclosures are given in the
relevant notes.

Details of foreign exchange mentioned above are certified and provided by the Management of the company.

(xix) As certified by the company that it was received written representation from all the directors, that companies
in which they are directors had not defaulted in terms of section 164(2) of the companies Act, 2013, and the
representation from directors taken in Board that Director is disqualified from being appointed as Director of
the company.

(xx) Earnings per share (EPS):

Basic earnings per share are computed using the weighted average number of equity shares outstanding
during the period. Diluted EPS is computed by dividing the profit or loss attributable to ordinary equity
holders by the weighted average number of equity shares considered for deriving basic EPS and also
weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus
shares, as appropriate.

Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share

Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equities shares outstanding during the year.

(b) Rounding off amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lacs as per
the requirement of Schedule III, unless otherwise stated.

(xxi) Off Setting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when,
and only when, there is a legally enforceable right to offset the recognized amount and there is intention
either to settle on net basis or to realize the assets and to settle the liabilities simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the Company or counterparty.

(xxii) Other Note:

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014, for the financial year commencing April 1, 2023, every company which uses
accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of account along with the date when such changes were made and ensuring that the audit trail cannot
be disabled. The interpretation and guidance on what level edit log and audit trail needs to be maintained
evolved during the year and continues to evolve.

In the company, the accounting software has a feature of audit trail, but it was disable at an application level
for maintenance of books of accounts and relevant transactions. However, the global standard ERP used by
the Company has not been enabled with the feature of audit trail log at the database layer to log direct
transactional changes, due to present design of ERP. This is being taken up with the vendor. In the
meanwhile, the Company continues to ensure that direct write access to the database is granted only via an
approved change management process.

For and on behalf of the board of directors As per our attached report of even date

For, Eureka Industries Limited For, V S S B & Associates

Chartered Accountants
Firm No. 121356W

Mamta Altaf Husain (Vishves A. Shah)

Managing Director / CFO Director (Partner)

(DIN: 10232506) (DIN: 10232858) M No:-109944

UDIN: 24109944BKACSF7679

Place : Ahmedabad

Place : Ahmedabad ^

^ Date : 29/05/2024

Date : 29/05/2024

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Mar 31, 2014

1. Share Capital

a) Terms / right attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled for one vote per share. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Related Parties Disclosure

As per Accounting Standard (AS)18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, the list of Related Parties as defined in the Accounting Standards are given below.

a) List of Related parties and relationships:

Key Managerial Personnel

- Ketan Gandhi(DIN 02553466) Director

- Narayan Prajapati (DIN 02533184) Director

- Yashdeep Jajpura (DIN 03557155) Director

- Gunjan Choudhary (DIN 01580569) Director

b) No transactions were entered into with Related parties during the year.

3. Balances of Sundry Creditors, Debtors, Receivables, Payables, Loans & Advances to various parties / various authorities are subject to confirmation from the respective parties and necessary adjustments if any, will be made on its reconciliation.

4. In the Opinion of the Board of Directors the aggregate value of Current Assets, Loans & Advances on realisation in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

5 Previous Years figures have been re-arranged and re-grouped, wherever necessary to make them comparable with those of current year.

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Mar 31, 2012

A) Terms / right attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled for one vote per share. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 Related Parties Disclosure

As per Accounting Standard (AS) 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, the list of Related Parties as defined in the Accounting Standards are given below.

a) List of Related parties and relationships:

Key Managerial Personnel

-Ketan Gandhi Director

-Narayan Prajapati Director

-Yashdeep Jajpura Director

-Gunjan Choudhary Director

b) No transactions were entered into with related parties during the year.

2 Earning Per Share

Earning per share is calculated on the basis of Accounting Standard AS-20 "Earning Per Share" issued by the Institute of Chartered Accountants of India.

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Mar 31, 2010

1. The balance of Sundry Debtors, Creditors and Loans and advances are subject to confirmation, any adjustments, if required, will be made on the receipt of the same.

2. In view of the carried forward losses, deferred tax liability / assets as per Accounting As-22 has not been provided.

3. The case is pending for Provident Fund in Appellate Tribunal, New Delhi-GJ/26677.

(a) The Company has been advised that the computation of net profits for the purpose of Directors remuneration under Section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. However fixed monthly remuneration has been paid to the WTP as per Schedule XIII of the Companies Act, 1956.

4. Sundry debit / credit balances and the accouns squared up during the year are subject to confirmation and reconciliation from the parties to the transactions.

5. No amounts are due for deposits as at the Balance Sheet date to the Investors Education and Protection Fund.

6. Loan to Directors is Rs. NIL (Previous year NIL)

7. Output Service Tax Payable is outstanding more than six (6) months.

8. Additional Information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI to the Companies Act, 1956.

9. Previous years figures have been re-arranged, re-classified and/or re-grouped wherever considered necessary.

10. Schedule 1 to 13 form an intergral part of the Balance Sheet and Profit & Loss Account.

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Mar 31, 2009

1. The balance of Sundry Debtors, Creditors and Loans and advances are subject to confirmation, any adjustments, if required, will be made on the receipt of the same.

2. In view of the carried forward losses, deferred tax liability / assets as per Accounting As-22 is not been provided.

3. The case is pending for Provident Fund in Appellate Tribunal, New Delhi-GJ/26677.

(a) The Company has been advised that the computation of net profits for the purpose of Directors remuneration under Section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors.

4. Sundry debit / credit balances and the accouns squared up during the year are subject to confirmation and reconciliation from the parties to the transactions.

5. No amounts are due for deposits as at the Balance Sheet date to the Investors Education and Protection Fund.

6. Loan to Directors is Rs. NIL (Previous year NIL)

7. Additional Information pursuant to the provisions of paragraphs 3 and 4 of Part II of Schedule VI to the Companies Act, 1956.

8. Previous years figures have been re-arranged, re-classified and/or re-grouped wherever considered necessary.

9. Schedule 1 to 11 form an intergral part of the Balance Sheet and Profit & Loss Account.