Notes forming part of Accounts for the year ended 31st March, 2023
1	Compnay Overview
	Systematic Industries Private Limited (The Company), is a Private Company. The company was incorporated on 24th March 2000 having its registered address at 418, Nirmal Corporate Centre , 4th Floor,L.B.S . Marg, Mulund (West) Mumbai City Maharashtra 400080  . The company manufactures Steel Wires.
2	SIGNIFICANT ACCOUNTING POLICIES :
2.1	BASIS OF ACCOUNTING
	The Financial Statements are brpared under the historical cost convention on accrual basis.
A.	Basis Of Preparation
	The financial statements are brpared in accordance with the Indian Generally Accepted Accounting Principles (“GAAP”) under the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies Act, 2013 (to the extent notified).
B	Presentation and disclosure of financial statement
	All assets and liabilities have been classified as current & non-current as per company’s normal operating cycle and other criteria set out in the Schedule III. for the purpose of current / non-current classification of assets and liabilities 12 months has been considered by the company as its operating cycle.
C	Use of Estimates
	The brparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the application of accounting policies, reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Management believes that the estimates and assumptions used in the brparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future periods
D	Property, plant and equipment (Tangible assets)
	• Property, plant and equipment are stated at cost of acquisition / construction less accumulated debrciation and where applicable accumulated impairment losses. Gross carrying amount of all property, plant and equipment are measured using cost model.
	• Cost of an item of property, plant and equipment includes purchase price including non - refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the brsent value of the expected cost, if any for the dismantling/decommissioning of the asset.
	• Parts (major components) of an item of property, plant and equipment’s having different useful lives are accounted as separate items of property, plant and equipment’s. Capital work-in-progress comprises of cost incurred on property, plant and equipment under construction / acquisition that are not yet ready for their intended use as at the Balance Sheet date.
	• Property, plant and equipment are eliminated from financial statement either on disposal or when retired from active use. Assets held for disposal are stated at net realizable value. Losses arising in case of retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognized in the statement of profit and loss in the year of occurrence.
	• Debrciation on the property, plant and equipment (other than freehold land and capital work in progress) is provided on a straight line basis over their useful lives which is in consonance of useful life mentioned in Schedule II of the Companies Act, 2013, as under:
		Assets	Useful life
		Plant and Machinery	8 years
		Motor Vehicle	8 years
		Building	30 years
		Computer	3 years
		Servers and Network	6 years
		Office equipment’s	5 years
		Furniture and fixtures	10 years
	• In case of assets purchased, sold or discarded during the year, debrciation on such assets is calculated on pro-rata basis from the date of such addition or as the case may be, upto the date on which such asset has been sold or discarded.
	• Debrciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively.
	• Debrciation on individual assets whose cost does not exceed rupees five thousand has been provided at the rate of hundred per cent in the year of capitalization.
E	Impairment of assets
	The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.   Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the debrciation charge for the fixed asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognized are reversed to the extent it does not exceed the carrying amount that would have been determined after considering debrciation or amortization had no impairment loss been recognized in earlier years.
F	Inventories
	Goods are valued at lower of cost and net realizable value. Cost includes direct materials valued on specific identification basis, and other costs incurred in bringing them to their brsent location and condition.
G	Investments
	Investments are classified into current and long-term investments. Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognise a decline, other than temporary, on an individual investment basis.
H	Revenue Recognition
	Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. • Sales of goods are recognized when significant risks and rewards of ownership of the goods have passed to the buyer that generally coincides with delivery and are recorded net of Goods & Services tax, rebates and trade discounts and sales returns. • Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable and to the extent of certainty.
I	Operating lease
	Lease arrangements where risks and rewards incidental to ownership of an asset substantially vest with the lessor are classified as operating lease.
J	Provisions, Contingent Liabilities and Contingent Assets:
	A provision is recognised when the Company has a brsent 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 a reliable estimate can be made. Provisions are not discounted to its brsent value (except (a) retirement benefits and (b) dismantling / decommissioning liabilities that are recognised as cost of Property, Plant and Equipment) 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. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which likelihood of out flow of resources is remote, no provision or disclosure is made. A Contingent asset is neither recognised nor disclosed in the financial statements.                                                                                      Bank Guarantee as at year end is Rs 2,91,26,322/-
K	Borrowing Cost:
	Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Capitalization of borrowing cost is suspended during the extended period in which active development is interrupted.
L	Taxation:
	Tax expenses for the year comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years.  Provision for current tax is made as per the provisions of Income Tax Act, 1961. Deferred tax charge or credit reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years and  are  measured  based  on  the  tax  rates  and  the  tax  laws  enacted  or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.
M	Earnings Per Share:
	Basic earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable  to  equity  shareholders  by  the  weighted  average  number  of  equity  shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, share warrants and share split. Diluted earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders with the weighted average number of equity shares outstanding during the year and are adjusted for the effects of all dilutive potential equity shares.
N	Dividend distribution
	Effective current year, final dividends on equity and brference shares are recorded as a liability on the date of approval by the shareholders and interim dividends on equity & brference shares are recorded as a liability on the date of declaration by the Company's Board of Directors.
O	Cash and cash equivalents
	Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.
P	Foreign currency transactions and translation
	(i) Initial Recognition:
	Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
	(ii) Conversion:
	Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
	(iii) Exchange Differences:
	Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of Company at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the statement of profit and loss in the year in which they arise.
Q	Employee Benefits
	Provident Fund: Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss account as incurred. Contribution to the Provident fund for the accounting year 2022-23 is Rs 10,80,341/-
R	Prior period items
	Prior period items, if any, are disclosed separately in the financial statement.

 



 

Notes forming part of Accounts for the year ended 31st March, 2023
Sch 1	COMPNAY OVERVIEW
	Systematic Industries Private Limited (The Company), is a Private Company. The company was incorporated on 24th March 2000 having its registered address at 418, Nirmal Corporate Centre , 4th Floor,L.B.S . Marg, Mulund (West) Mumbai City Maharashtra 400080  . The company manufactures Steel Wires.
Sch 2	SIGNIFICANT ACCOUNTING POLICIES :
2.1	BASIS OF ACCOUNTING
	The Financial Statements are brpared under the historical cost convention on accrual basis.
A.	BASIS OF brPARATION
	The financial statements are brpared in accordance with the Indian Generally Accepted Accounting Principles (“GAAP”) under the historical cost convention on the accrual basis. GAAP comprises mandatory Accounting Standards as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies Act, 2013 (to the extent notified).
B	brSENTATION AND DISCLOSURE OF FINANCIAL STATEMENT
	All assets and liabilities have been classified as current & non-current as per company’s normal operating cycle and other criteria set out in the Schedule III.  for the purpose of current / non-current classification of assets and liabilities 12 months has been considered by the company as its operating cycle.
C	USE OF ESTIMATES
	The brparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the application of accounting policies, reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Management believes that the estimates and assumptions used in the brparation of financial statements are prudent and reasonable. Actual results could differ from those estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future periods
D	PROPERTY, PLANT AND EQUIPMENT (TANGIBLE ASSETS)
	• Property, plant and equipment are stated at cost of acquisition / construction less accumulated debrciation and where applicable accumulated impairment losses. Gross carrying amount of all property, plant and equipment are measured using cost model.
	• Cost of an item of property, plant and equipment includes purchase price including non - refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the brsent value of the expected cost, if any for the dismantling/decommissioning of the asset.
	• Parts (major components) of an item of property, plant and equipment’s having different useful lives are accounted as separate items of property, plant and equipment’s. Capital work-in-progress comprises of cost incurred on property, plant and equipment under construction / acquisition that are not yet ready for their intended use as at the Balance Sheet date.
	• Property, plant and equipment are eliminated from financial statement either on disposal or when retired from active use. Assets held for disposal are stated at net realizable value. Losses arising in case of retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognized in the statement of profit and loss in the year of occurrence.
	• Debrciation on the property, plant and equipment (other than freehold land and capital work in progress) is provided on a straight line basis over their useful lives which is in consonance of useful life mentioned in Schedule II of the Companies Act, 2013, as under:
		Assets	Useful life
		Plant and Machinery	8 years
		Motor Vehicle	8 years
		Building	30 years
		Computer	3 years
		Servers and Network	6 years
		Office equipment’s	5 years
		Furniture and fixtures	10 years
	• In case of assets purchased, sold or discarded during the year, debrciation on such assets is calculated on pro-rata basis from the date of such addition or as the case may be, upto the date on which such asset has been sold or discarded.
	• Debrciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively.
	• Debrciation on individual assets whose cost does not exceed rupees five thousand has been provided at the rate of hundred per cent in the year of capitalization.
E	IMPAIRMENT OF ASSETS
	The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.   Based on the assessment done at each balance sheet date, recognised impairment loss is further provided or reversed depending on changes in circumstances. After recognition of impairment loss or reversal of impairment loss as applicable, the debrciation charge for the fixed asset is adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. If the conditions leading to recognition of impairment losses no longer exist or have decreased, impairment losses recognized are reversed to the extent it does not exceed the carrying amount that would have been determined after considering debrciation or amortization had no impairment loss been recognized in earlier years.
F	INVENTORIES
	Goods are valued at lower of cost and net realizable value. Cost includes direct materials valued on specific identification basis, and other costs incurred in bringing them to their brsent location and condition.
G	INVESTMENTS
	Investments are classified into current and long-term investments. Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognise a decline, other than temporary, on an individual investment basis.
H	REVENUE RECOGNITION
	Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. • Sales of goods are recognized when significant risks and rewards of ownership of the goods have passed to the buyer that generally coincides with delivery and are recorded net of Goods & Services tax, rebates and trade discounts and sales returns. • Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable and to the extent of certainty.
I	OPERATING LEASE
	Lease arrangements where risks and rewards incidental to ownership of an asset substantially vest with the lessor are classified as operating lease.
J	PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
	A provision is recognised when the Company has a brsent 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 a reliable estimate can be made. Provisions are not discounted to its brsent value (except (a) retirement benefits and (b) dismantling / decommissioning liabilities that are recognised as cost of Property, Plant and Equipment) 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. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may but probably will not require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which likelihood of out flow of resources is remote, no provision or disclosure is made. A Contingent asset is neither recognised nor disclosed in the financial statements.                                                                                      Bank Guarantee as at year end is Rs 2,91,26,322/-
K	BORROWING COST:
	Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Capitalization of borrowing cost is suspended during the extended period in which active development is interrupted.
L	TAXATION:
	Tax expenses for the year comprises of current tax, deferred tax charge or credit and adjustments of taxes for earlier years.  Provision for current tax is made as per the provisions of Income Tax Act, 1961. Deferred tax charge or credit reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years and  are  measured  based  on  the  tax  rates  and  the  tax  laws  enacted  or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets are reviewed for the appropriateness of their respective carrying amounts at each balance sheet date.
M	EARNINGS PER SHARE:
	Basic earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable  to  equity  shareholders  by  the  weighted  average  number  of  equity  shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, share warrants and share split. Diluted earnings per share is calculated by dividing the net profit or loss (after tax) for the year attributable to equity shareholders with the weighted average number of equity shares outstanding during the year and are adjusted for the effects of all dilutive potential equity shares.
N	DIVIDEND DISTRIBUTION
	Effective current year, final dividends on equity and brference shares are recorded as a liability on the date of approval by the shareholders and interim dividends on equity & brference shares are recorded as a liability on the date of declaration by the Company's Board of Directors.
O	CASH AND CASH EQUIVALENTS
	Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.
P	FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
	(i) Initial Recognition:
	Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
	(ii) Conversion:
	Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
	(iii) Exchange Differences:
	Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of Company at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the statement of profit and loss in the year in which they arise.
Q	Employee Benefits
	Provident Fund: Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss account as incurred. Contribution to the Provident fund for the accounting year 2022-23 is Rs 10.80/- lac
R	Prior period items
	Prior period items, if any, are disclosed separately in the financial statement.

 



 

Provident Fund: Provident fund is a defined contribution scheme and the contributions are charged to the Profit & Loss account as incurred. Contribution to the Provident fund for the accounting year 2022-23 is Rs 10,80,341/-