Notes to Accounts of Porwal Auto Components Ltd.

Mar 31, 2024

30. CONTINGENT LIABILTIES
a.	Guarantee issued by Bank on behalf of the company (including LC)		Rs. 8,17,546/-(Rs. 7,27,389/-)
b.	Provident Fund demand for the financial year 200506 (Disputed by the company, deposited Rs. 4.02 lacs for appeal)		Nil (Nil)
c.	Estimated amount of contracts remaining unexecuted on capital account and not provided for		Rs. 10,15,335/-(Rs. 1,85,725/-)
d.	VAT Input Disallowed for financial year 2013-14		Rs. 2,48,526/-(Rs.2,48,526/-)
e.	VAT Input Demand for financial year 2016-17		Rs. 2,67,697/-( Rs. 2,67,697/-)
f.	Income Tax Demand for Assessment Year 2018-19		Rs. 4,77,91,740/-(Rs. 4,77,91,740/-)
g.	Income Tax Demand for Assessment Year 2017-18		Rs. 2,02,77,340/-(Nil)
h	Income Tax Demand for Assessment Year 2016-17		Rs. 89,01,600/-(Nil)
i	Income Tax Demand for Assessment Year 2015-16		Rs.6,17,010/- (Nil)

36. Fair Value Measurement (IND AS 113)

The management assessed that fair value of all current assets and current liabilities are realizable at the value as shown in the financial statements of the company. Financial assets of the company are stated at cost. The market value of the financial assets are being disclosed in Note No. 5.

37. Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure.

38. UTILISATION OF BORROWED FUNDS, SHARE PREMIUM OF ANY OTHER SOURCE OF FUNDS

i. No funds (which are material either individually or in the aggregate] have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds] by the Company to or in any other person or entity, including foreign entity (“Intermediaries”].

ii. No funds (which are material either individually or in the aggregate] have been received by the Company from any person or entity, including foreign entity (“Funding Parties”].

39. RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company does not have any transactions or balances with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year and previous year.

40. The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

41. The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

42. There has been no fraud by the Company or on the Company during the year and previous year.

43. Previous year’s figures have been have been regrouped / restated wherever necessary to confirm

to current year’s presentation.

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Mar 31, 2023

k) Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS. Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or

constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is probable.

l) Foreign currency transactions

In the financial statements of the Company, transactions in currencies other than the functional currency are translated into the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in other currencies are translated into the functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and liabilities denominated in other currencies and measured at historical cost or fair value are translated at the exchange rates prevailing on the dates on which such values were determined. All exchange differences are included in the statement of profit and loss except any exchange

differences on monetary items designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized in the other comprehensive income.

m) Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

n) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

36. Fair Value Measurement (IND AS 113)

The management assessed that fair value of all current assets and current liabilities are realizable at the value as shown in the financial statements of the company. Financial assets of the company are stated at cost. The market value of the financial assets are being disclosed in Note No. 5.

37. Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure.

38. UTILISATION OF BORROWED FUNDS, SHARE PREMIUM OF ANY OTHER SOURCE OF FUNDS

i. No funds (which are material either individually or in the aggregate] have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds] by the Company to or in any other person or entity, including foreign entity (“Intermediaries”].

ii. No funds (which are material either individually or in the aggregate] have been received by the Company from any person or entity, including foreign entity (“Funding Parties”].

39. RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company does not have any transactions or balances with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year and previous year.

40. The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

41. The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

42. There has been no fraud by the Company or on the Company during the year and previous year.

43. Previous year’s figures have been have been regrouped / restated wherever necessary to confirm

to current year’s presentation.

As per our report of even date

For H.N. Jhavar & Co. For and on behalf of the Board

Firm Reg. No. 000544C Chartered Accountants

CA Ashish Saboo Devendra Jain Mukesh Jain

Partner Managing Director Whole Time Director

M.N. 079657 DIN 00232920 DIN 00245111

UDIN:23079657BGXSFV3269s Date: 29/05/2023 Place: Indore

Hansika Mittal Shailesh Jain

Company Secretary Chief Financial Officer

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Mar 31, 2018

31 EARNING PER SHARE

Particular	2017-18	2016-17
Profit after tax as per Profit and Loss Account (Rs/Lacs)	50522136	20820226
Weighted Average number of Equity Shares outstanding (Nos.)	1,51,00,000	1,51,00,000
Basic and Diluted Earning Per Share (Face Value Rs. 10 per share) (Rs.)	3.35	1.38

32. RELATED PARTY TRANSACTIONS

Related Parties with whom transactions have taken place during the year: (As indicated by management and relied upon by auditors)

1. Relationship

a. Key Managerial Personnel and Relatives Mr. Devendra Jain, Managing Director

b. Relatives of Key Management personnel and their enterprises where transactions have taken place

* Mr. Surendra Jain, Brother

* Mr. Shailesh Jain, Brother

* Mr. Mukesh Jain, Brother Porwal Diesels Pvt. Ltd.

2. Transactions carried out with related parties referred above are as under:-

Particulars	With Key Management Personnel	Entities owned or significantly influenced by Key Management Personnel	Reliative of Key Management Personnel/ Director	Associate and subsidiary companies
Remuneration	3600000	Nil	9900000	Ml
	(3400000)	(Nil)	(9350000)	(Nil)
Purchase of Goods	NIL (Nil)	NIL (Nil)	8858002 (4173153)	Ml (Nil)
Sale of Goods	NIL (Nil)	NIL (Nil)	Ml (Nil)	Ml (Nil)
Job work paid	Ml	Ml	68279120	Ml
	(Nil)	(Nil)	(51432982)	(Nil)
Interest received	Ml	Ml	127054	Ml
V	(Nil)	(Nil)	(5221841)	(Nil)

Disclosure in respect of material transactions with related parties during the year (included in 2 above): Remuneration

Related Party	Current Year	Previous Year
Mr. Devendra Jain	3600000	3400000
Mr. Mukesh Jain	3600000	3400000
Mr. Surendra Jain	3600000	3400000
Mr. Shailesh Jain	2700000	2550000

Disclosure in respect of material transactions with related parties during the year (included in 2 above): Remuneration

Related Party	Current Year	Previous Year
Mr. Devendra Jain	3600000	3400000
Mr. Mukesh Jain	3600000	3400000
Mr. Surendra Jain	3600000	3400000
Mr. Shailesh Jain	2700000	2550000

Purchase of Goods

Related Party	Current Year	Previous Year
Porwal Diesels R/t. Ltd.	8858002	4173153
Job Work Paid
Related Party	Current Year	Previous Year
Porwal Diesels Pvt.. Ltd.	68279120	51432982
Interest Received
Related Party	Current Year	Previous Year
Porwal Diesels Pvt. Ltd.	127054	4028379.00
Loans and Advances (Dr)
Related Party	Current Year	Previous Year
Porwal Diesels Pvt. Ltd.	14700000	35697023
Sundry Creditors (Cr)
Related Party	Current Year	Previous Year
Porwal Diesels Pvt. Ltd.	7844857	0

33. VALUE OF STORES, SPARES AND PACKING MATERIAL CONSUMED

	2017-18		2016-17
	Amount in Rs.	% of Consumption	Amount in Rs.	% of Consumption
Imported	0	0	0	0
Indigenous	21052131	100	1,80,66,817	100
TOTAL	21052131	100	1,80,66,817	100

34. VALUE OF IMPORTS ON CIF BASIS IN RESPECT OF

	2017-18	2016-17
Raw Material and Stock in trade	NlL	NlL
Stores, Spares and Packing Material	NlL	NlL
Capital Goods	NlL	NlL

35. EXPENDITUREI IN FOREIGN CURRENCY

	2017-18	2016-17
Repairing	0	0
Travelling	0	0

36. Fair Value Measurement (IND AS 113)

The management assessed that fair value of all current assets and current liabilities are realizable at the value as shown in the financial statements of the company. Financial assets of the company are stated at cost. The market value of the financial assets are being disclosed in Note No. 5.

37. Effectively July 01, 2017 sales are recorded net of GST whereas earlier sales were recorded net of excise duty including VAT, which formed part of expenses. Hence revenue from operations for the year ended March 31, 2018 are not comparable with the previous year corresponding figures.

38. Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/disclosure.

As per report of even date
For S N Gadiya & Co
Chartered Accountants Firm Reg No. 002052C	Devendra Jain	Mukesh Jain
	Managing Director	Whole Time Director
(CASN Gadiya)	DlN00232920	DIN 00245111
Proprietor
M. N. 71229
Place : Indore	Hansika Mittal	Shailesh Jain
Date: 18/05/2018	Company Secretary	Chief Financial Officer

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Mar 31, 2016

26. CONTINGENT LIABILTIES

a. Guarantee issued by Bank on behalf of the Rs.8,37,200 (Rs. 31,64,389/-) company (including LC)

b. Vendor bill discounting limit with Bank Rs.14,73,54,628/- (Rs.6,73,84,873/-) (Earlier Axis Bank now Kotak Mahindra Bank)

c. Provident Fund demand for the financial year Rs.8,04,944/- (Rs. 8,04,944/-)

2005-06 (Disputed by the company, deposited Rs. 4.02 lacs for appeal)

d. Estimated amount of contracts remaining Rs.58,10,660/- (Rs.55,33,480/-) unexecuted on capital account and not provided for

e. Income tax demand for the assessment NIL (Rs.5,36,560/-) year 2010-11

f. VAT tax demand for financial year 2010-11 Rs.1,38,029/- ( Rs.1,38,029/-)

g. VAT tax demand for financial year 2011-12 Rs.2,56,111/- (Rs.2,56,111/- )

h. VAT Input Disallowed for financial year 2013-14 Rs.15,53,283/-(NIL)

1. RELATED PARTY TRANSACTIONS

Related Parties with whom transactions have taken place during the year: (As indicated by management and relied upon by auditors)

1. Relationship

a. Key Managerial Personnel and Relatives Mr. Devendra Jain, Managing Director

b. Relatives of Key Management personnel and their enterprises where transactions have taken place

? Mr. Surendra Jain, Brother

? Mr. Shailesh Jain, Brother

? Mr. Mukesh Jain, Brother Porwal Diesels Pvt. Ltd.

2. As evidenced by internal Management Information System (MIS), there are no reportable segments in the company. Therefore, the disclosure requirements of ''Accounting Standard 17'' (AS-17) - '' Segment Reporting'' are not furnished.

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Mar 31, 2014

RELATED PARTY TRANSACTIONS

Related Party Disclosures as per the requirements of ''Accounting Standard 18'' (AS-18) issued by the institute of Chartered Accountants of India; (As indicated by management and relied upon by auditors).

Related Parties with whom transactions have taken place during the year.

Key Managerial Personnel and Relatives

Mr. Devendra Jain, Managing Director

Relatives of Shri Devendra Jain:

Mr. Surendra Jain, Brother

Mr. Shailesh Jain, Brother

Mr. Mukesh Jain, Brother

CONTINGENT LIABILTIES

a. Guarantee issued by Bank on behalf Rs. 60.94,100/- (Rs. 60,94,100/-) on the company

b. Vendor bill discounting limit Rs. 2,54,72,128/-(Rs.4,33,08,664/-) with Axis Bank Ltd.

c. Provident Fund demand for the Rs. 8,04,944/- (Rs.8,04,944/-) financial year 2005-06 (Disputed by the company, deposited Rs. 4.02 Lacs for appeal).

d. Estimated amount of contracts Rs. 67,57,296/-(Rs. 10,14,194/-) remaining unexecuted on capital account and not provided for

e. Income tax demand for the 2010-11 Rs. 536560/- (Rs.536560/-) assessment year

f. VAT tax demand for financial Rs. 165118/- (rs.165118/-) year 2010-11 As evidenced by internal Management Information System (MIS), there are no reportable segements in the company. Therefore, the disclosure requirements of Accounting Standard 17'' (AS-17) - ''Segment Reporting'' are not furnished.

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Mar 31, 2013

RELATED PARTY TRANSACTIONS

Related Party Disclosures as per the requirements of ''Accounting Standard 18'' (AS-18) issued by the institute of Chartered Accountants of India; (As indicated by management and relied upon by auditors).

a. Parties where control exists -

M/s Porwal Udhyog (India) (Proprietorship Firm of Mr. Mukesh Jain, Director)

b. Other Related Parties with whom transactions have taken place during the year.

Key Managerial Personnel and Relatives

Mr. Devendra Jain, Managing Director

CONTINGENT LIABILTIES

a. Guarantee issued by Bank on behalf of the company Rs. 60.94 Lacs (Rs. 89.89 Lacs)

b. Vendor bill discounting limit with Axis Bank Ltd. Rs. 433.09 Lacs (Rs. 518.93 Lacs)

c. Provident Fund demand for the financial year Rs. 8.05 Lacs (Rs. 8.05 Lacs) 2005-06 (Disputed by the company, deposited

Rs. 4.02 Lacs for appeal).

d. Estimated amount of contracts remaining unexecuted Rs. 1014.11 lacs (Rs. 48.91 Lacs) on capital account and not provided for

As evidenced by internal Management Information System (MIS), there are no reportable segments in the company. Therefore, the disclosure requirements of Accounting Standard 17'' (AS-17) - ''Segment Reporting'' are not furnished.

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Mar 31, 2012

A. Terms/rights attached to equity shares

The company has only one class of equity having a par value Rs. 10/- per share. Each holder of equity of shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount. The distribution will be in proportion of the number of equity shares held by the shareholders.

The Skoda Car loan was availed in the year 2009-10 to be repaid by September 2012. Total no of 6 monthly installments are repayable of Rs. 25814 each. Rate of interest applicable on this loan is 10% p.a.

The I-10 Car loan availed in the year 2010-11 to be repaid by March 2013. Remaining no. of monthly installments to be paid are 12 of Rs. 9456 each. Rate of interest applicable on this loan is 9.45% p.a.

The Honda City Car loan was availed in the year 2010-11 to be repaid by March 2013. Remaining no. of monthly installments to be paid are 12 of Rs. 20488 each. Rate of interest applicable on this loan is 9.45% p.a.

The Swift Car loan was availed in the year 2010-11 to be repaid by March 2013. Remaining no. of monthly installments to be paid are 12 of Rs. 12608 each. Rate of interest applicable on this loan is 9.45% p.a.

RELATED PARTY TRANSACTIONS

Related Party Disclosures as per the requirements of ZAccounting Standard 18' (AS-18) issued by the institute of Chartered Accountants of India; (As indicated by management and relied upon by auditors).

a. Parties where control exists -

M/s Porwal Udhyog (India) (Proprietorship Firm of M r. Mukesh Jain, Director)

b. Other Related Parties with whom transactions have taken place during the year. Key Managerial Personnel and Relatives

M r. Devendra Jain, Managing Director

CONTINGENT LIABILTIES

a. Guarantee issued by Bank on behalf on the company Rs. 89.89 Lacs (Rs. 12.93 Lacs)

b. Vendor bill discounting limit with Axis Bank Ltd. Rs. 518.93 Lacs (Rs. 337.85 Lacs)

c. Provident Fund demand for the financial year Rs. 8.05 Lacs (Rs. 8.05 Lacs) 2005-06 (Disputed by the company, deposited

Rs. 4.02 Lacs for appeal).

d. Estimated amount of contracts remaining unexecuted Rs. 48.91 lacs (Rs. 100.01 Lacs) on capital account and not provided for

As evidenced by internal Management Information System (MIS), there are no reportable segements in the company. Therefore, the disclosure requirements of Accounting Standard 17' (AS-17) - 'Segment Reporting' are not furnished.

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Mar 31, 2010

1. Contingent Liabilities

a. Guarantee issued by Bank on behalf of the company : Rs. 13.83 lacs (Rs. 21.34 lacs)

b. Entry Tax Demand (2005-06) : Rs. 0.89 lacs (Rs. 0.89 lacs)

c. Demand from ESIC relating to earlier years Rs. 0.73 lacs (Rs. 0.73 lacs) (Disputed by the company, deposited Rs. 0.21 lacs for appeal)

d. Estimated amount of contracts remaining unexecuted Rs. 365.30 lacs. on capital account and not provided for

2. Company has given interest free tooling advance of Rs. 200.00 lacs to M/s Porwa) Diesels Pvt. Ltd,acompany in which directors are interested for machining of components.

3. Out of the untilised monies out of issue of shares, company has granted interest bearing loans amounting to Rs. 589.29 lacs and the balance of Rs. 750.00 lacs is kept under fixed deposit account shown under the head " Cash and Bank Balances".

4. Depreciation on plant and machinery for the year is provided on straight line method based on the balance useful life of the assets which is higher as compared to the rates prescribed in Schedule XIV of the Companies Act, 1956. Had the depreciation been provided on straight line method based on rates specified in Schedule XIV of the Companies Act, 1956 the depreciation charged for the year would have been higher by Rs. 72.41 lacs.

5. Sales Tax assessment has been completed upto financial year 2006-07. Income Tax assessments have been completed up to financial year 2007-08. All undisputed liabilities in respect of sales tax and income tax have been provided for in the accounts.

6. The Company does not have a formal procedure of obtaining year-end balance confirmation certificates for trade balances. Various debit and credit balances are subject to confirmation. However, management believes them to be correct.

7. In accordance with Accounting Standard 22 (AS-22) Accounting for taxes on income issued by the Institute of Chartered Accountants of India the Company has provided for deferred tax in accordance with the requirement of AS-22.

8. Related Party Disclosures as per the requirements of Accounting Standard 18 (AS-18) issued by the Institute of Chartered Accountants of India: (As indicated by management and relied upon by auditors)

a. Parties where control exists -

M/s Porwal Udhyog (India) (Proprietorship Firm of Mr. Mukesh Jain, Director)

b. Other Related Parties with whom transactions have taken place during the year. Key Managerial Personnel and Relatives

Mr. Devendra Jain, Managing Director

Relatives of Shri Devendra Jain:

Mr. Surendra Jain, Brother

Mr. Shailesh Jain, Brother

Mr. Mukesh Jain, Brother

9. As evidenced by internal Management Information System (MIS), there are no reportable segments in the company. Therefore, the disclosure requirements of Accounting Standard 17 (AS-17) - Segment Reporting are not furnished.

10. Details of dues to Micro, Small and Medium Enterprises as per MSMED Act, 2006. There are no outstanding to parties covered under the Micro, Small and Medium enterprises as per MSMED Act, 2006. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

11. Previous year figures have been regrouped and re-arranged wherever necessary

12. In the opinion of the Board of directors of the Company, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and the provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.