2.1 The company has elected to measure its investment in Associates as per previous GAAP carrying value.
2.2 Other trade investment-quoted and unquoted have been measured at fair value through Profit and loss account and other non trade investment-quoted and unquoted have been measured through other comprehensive income.
2.4 The company owns 247500 equity shares of Saurabh Agrotech Pvt. Ltd., which was illegally transferred. This illegality has been challenged by the Company before the National Company Law Tribunal (NCLT) under Section 111 of the Companies Act, 1956. Since the case is sub-judice before NCLT and Hon’ble High Court of Judicature of Rajasthan, Bench at Jaipur, the holding of such investment is continued to be shown in the books of the company.
2.5 Share of Raghuvar (India) Ltd. being not traded in any stock exchange, hence shown under unquoted category.
11.1 (*)During the financial year 2007-08, the Company, to widen its existing operations, invested a sum of Rs. 1212.00 lacs by way of acquisition of First Charge over the fixed assets of M/s ROM Industries Ltd situated at spl - 1, RIICO Industrial Area, Hirawala, Tehsil Bassi, District Jaipur (Raj.) from IFCI, vide deed of assignment dated 31.10.2007. The said charge has been settled by ROM industries Ltd and paid the settlement amount to the company.
11.2 Other Receivable includes Rs. 80.00 Lacs held with enforcement of directorate, against matter pending before Appellate Authority (PMLA) New Delhi under Prevention of Money Laundering Act, 2002 (PMLA). (Refer note no 36 and 37)
13.1 Terms/rights attached to paid up equity shares
The company has only one class of equity shares having a par value of Rs 10/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
13.2 The Company has not allotted any fully paid up equity shares pursuant to contracts without payment being received in cash during the period of five years immediately preceding the balance sheet date.
14.1 Nature and purpose of reserves Securities Premium
Securities premium is used to record the premium received on issue of shares. It is utilized in accordance with the provisions of the Companies Act, 2013.
Capital Reserve
Capital reserve was created in financial year 1995-96 at the time of amalgamation of Jaipur Glass and Potteries works ltd with the company.
General Reserve
Under the erstwhile Companies Act, 1956 a general reserve was created through transfer from retained earnings in accordance with applicable regulation. it is free reserve and available for distribution to shareholders.
Other Comprehensive Income
The cumulative gain and losses arising on fair value changes of equity investments measured at fair value through other comprehensive income and Remeasurement (Losses)/Gain on defined benefit plan are recognised in Other Comprehensive income.
18.1 Working Capital Loan of Rs 13.65 Cr. (Repayable on demand) from State Bank of India, Alwar are secured by pari passu charge by way of hypothecation, both present & future, of raw material, finished goods, work-in-process, packing materials, stores, bills for collection and book-debts and on the personal guarantee of Directors Shri Vijay Data, Shri Daya Kishan Data, Shri Saurabh Data and Pari Passu charge over the fixed assets of the Company.
18.2 Working Capital Loan of Rs.23.82 Cr. (Repayable on demand) from HDFC Bank Ltd. Alwar are secured by Pari Passu Charge by way of hypothecation, both present & future, of raw material, finished goods, work-in-process, packing materials, stores, bills for collection and book-debts and on the personal guarantee of Directors Shri Vijay Data, Shri Daya Kishan Data, Shri Saurabh Data and Pari Passu charge over the fixed assets of the Company.
18.3 The Company has filed quarterly statement of current assets with banks and these are in agreement with books of account for all quarters in the current year and previous year.
20.2 The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 (“the Act”) has been determined to the extent such parties have been identified by the company, on the basis of information and records available with them. The amount of principal and interest outstanding is given below.
21.1 Other payable includes a sum of Rs 14.49 lacs received in ceramic division (erstwhile JGPWL) during the period of 1989-91, against the use of Company’s property. On account of non-execution of deed of conveyance in favour of these persons and pending legal formalities, the said amount has been treated as other current financial liabilities.
21.2 There are no outstanding dues to be paid to Investor Education and Protection Fund.
35.1 During the financial year 2020-21, the Company has undertaken an ongoing project for establishment of Wellness Center at Alwar to be implemented by Gangadeen Niranjan Lal Data Charitable Trust. During the financial year 2022-23 the Company has spent a sum of Rs. 204.11 Lakhs (Rs. 111.00 Lakhs against the CSR Liability for the financial year 2022-23 and Rs. 82.51 Lakhs and Rs. 10.60 Lakhs (In Rounding off) towards the unspent CSR Liability of the Company for financial year 2021-22 and 2020-21 respectively as deposited with the Unspent CSR Account of the Company) towards its CSR Liability related to above said ongoing project. For the Financial year 2022-23, a sum of Rs. 8.77 Lakhs was unspent towards the CSR Liability of the Company related to above said ongoing project and in accordance with the provisions of section 135(6) of the Companies Act, 2013 the Company has transferred a sum of Rs. 8.77 Lakhs on 26.04.2023 to Unspent CSR Account of the Company held with State Bank of India, SME Arya Nagar Branch, Alwar (Rajasthan).
37. LEGAL MATTERS PENDING BEFORE VARIOUS COURTS AND NATIONAL COMPANYLAW TRIBUNAL (Earlier Company Law Board)
- Order dated 14.03.2012 passed by Hon’ble High Court of Judicature of Rajasthan, Bench at Jaipur inter alia in S.B. Civil Misc. Appeal No. 2218 of 2011 in respect of partition suit was set aside by the Hon’ble Supreme Court vide order dated 04.08.2014 and the matter was remitted back to Hon’ble High Court of Judicature of Rajasthan for its fresh consideration after hearing the parties. Hon’ble High Court of Judicature of Rajasthan, Bench at Jaipur, after hearing the parties, passed an order dated 06.04.2015 partially setting aside Order dated 10.02.2011 passed by the Court of Ld. ADJ, Jaipur. The order dated 06.04.2015 passed by Hon’ble High Court of Judicature of Rajasthan was challenged before the Hon’ble Supreme Court of India by the original Plaintiffs by filing SLP (C) No.11870 of 2015 and Hon’ble Supreme Court of India dismissed the SLP vide order dated 29.01.2019. After dismissal of the SLP filed by Original Plaintiffs there is no restraint order against the Company for transferring or alienating its properties/Assets or creating charge over the properties of the Company.
- The cases filed against or by the Company under Section 397-398 of the Companies Act, 1956 are still sub-judice before the Hon’ble National Company Law Tribunal (erstwhile Company Law Board), Jaipur/Kolkata which are yet to be heard finally by the NCLT.
- The Company owns 247500 equity shares of Saurabh Agrotech Pvt. Ltd., which were illegally transferred. This illegality has been challenged by the Company before the National Company Law Tribunal (NCLT) under Section 111 of the Companies Act, 1956. Since the case is sub-judice before NCLT and Hon’ble High Court of Judicature of Rajasthan, Bench at Jaipur, the holding of such investment is continued to be shown in the books of the Company.
- Presently, the Company is registered owner of SCOOTER trademark/device/logo and copyright holder for the artwork of SCOOTER Wavy device which is registered with Registrar of Trade Mark and Copyright. The Company is taking appropriate legal action against all the persons who are infringing its trademark and copyright. The Company is also defending its right before the Hon’ble Courts and Tribunals, wherever the challenges against use of ‘Scooter’ and /or any other intellectual property rights of the Company have been made.
. The Company filed an Appeal before Appellate Authority, PMLA, Delhi titled Vijay Solvex Limited Vs. Deputy Director, Enforcement of Directorate against order dated 02.05.2019 passed by the Adjudicating Authority, PMLA registered as FPA-PMLA-3117/PTN/2019 and also filed an application for de-freezing the bank account of the Company held in State Bank of India. The application for de-freezing of accounts has been allowed by the Appellate Authority vide order dated 24.07.2019 and the matter was thereafter listed for arguments on 14.04.2020. Owing to the outbreak of COVID-19 pandemic the Appeal could not be heard earlier. Now the Appeal is listed for hearing before the Appellate Authority on 27.07.2023.
- That a 2nd supplementary complaint registered as Special trial No. (PMLA) 01/2020 has been filed before Special judge PMLA Patna in main compliant no. 02/2018 dated 18.07.2018 (in ECIR No. PTZO/05/2016 dated 26.12.2016) before Ld. Sessions Judge (Special Judge (PMLA), Patna for impleading Vijay Solvex Limited as Accused No. 8 in the main complaint. The 2nd supplementary complaint has not been taken up for hearing in view of spread of COVID-19 pandemic and no effective orders have been passed in said matter. The 2nd Supplementary complaint is next listed for hearing on 21.06.2023.
The Company had filed an application before Directorate of Marketing & Inspection of Agriculture, Cooperation & Farmer Welfare for inclusion of its registered trademark/ Trade Brand Label “SCOOTER” for Mustard Oil in CA Book in the year 2016 in terms of the provisions of Agricultural Produce (Grading and Marking) Act, 1937 and Rules made thereunder. However. The said Trade Brand Label “SCOOTER” has not been included in the CA Book of the Company till date. Therefore, Company filed a Civil Writ Petition before the Hon’ble High Court of Rajasthan at Jaipur Bench. Being SB Civil Writ Petition No. 168221/2022. Respondent i.e. Directorate of Marketing &
inspection of Agriculture, Cooperation & Farmer Welfare has filed its reply to the Writ Petition. The matter is now listed on 02.06.2023
- The Board is hopeful that the pending matters would be disposed of in favour of the Company.
38. As per Ind AS-19 ” Employee Benefits”
The disclosure of employees benefit as defined in the Indian Accounting Standard-19 "Employee Benefits" are as follows:
38.1 Defined Contribution Plan
During the year ended 31-3-2023 the Company have contributed a sum of Rs 52.78 Lacs (P.Y. 53.15 Lacs) towards PF and ESI contribution and has been recognised as expenses in statement of Profit and Loss.
38.2 Defined Benefit Plan
- The Employee Gratuity Fund is not Funded and managed by the Company. The Present value of obligation is determined based on the actuarial valuation using the projected unit method.
- The Leave Encashment liability of Rs 176.81 lacs form part of long term provision Rs.53.90 lacs ( P.Y. Rs 48.97 lacs ) and short term provision Rs. 122.91 lacs (P.Y. Rs. 123.66 lacs) and is unfunded and does not require disclosures as mentioned in para 158 of Ind AS 19.
38.3 Risk Factors: Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus the Company is exposed to various risks in providing the above gratuity benefit which are as follows:
Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability .The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.
Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time) . There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20,00,000).
38.4 Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:
40. Financial Risk Management
The Company’s activities expose it to credit risk, liquidity risk and market risk. This note explains the source of risk which the company is exposed to and how to manages the risk and its impact in the financial statement. The board of directors provides guiding principle for overall risk management, as well as policies covering specific area i.e. Foreign exchange risk, Credit risk & Investment of Surplus liquidity. The companies risk management is carried out by finance department, accordingly, this department identifies, evaluation and hedges financial risk.
A) Credit Risk
The Company takes on exposure to Credit risk, which is the risk that counterparty will default on its contractual obligations. Credit risk arises from trade receivable, Loan and other financial assets.
Credit Risk Management
The main source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit Approvals, establishing credit limits and continuously monitoring the creditworthiness of customer to whom credit is extended in normal course of business. The company estimates the expected credit loss on the basis of past data and experience. Expected credit losses of financial assets receivable in next 12 months are estimated on the basis of historical data provided the company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible.
Review of outstanding trade receivables and financial assets is carried out by management each quarter. The company do not have any doubtful debts hence, no provision for bad and doubtful debts have yet been made in accounts.
B) Liquidity risk
The principle source of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, Liquidity risk is perceived to be low.
C) Market Risk
(i) Price Risk
The prices of the main raw material namely Raw oil and seeds fluctuate on day to day basis, accordingly the prices of finished goods are changed to take care of fluctuations in raw material prices. The company do not foresee any risk on this account.
(ii) Interest rate risk
The Company’s borrowings do bear fixed rate of interest and there are no borrowings bearing variable rate of interest. Hence, there are no interest rate risks.
(iii) Foreign Currency Risk
The Management identifies, evaluates, and hedges foreign risk. The Management conducts the regular meetings to keep a track on the movement of foreign currency in currency Market. The company also takes advice from consultants on risk of foreign currency.
41. Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserve attributable to the equity holders of the Company. The Primary objective of the Company’s capital management is to maximize the shareholder value. The Company manage its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants, if any. To maintain or adjust the capital structure, the Company reviews the fund management at regular intervals and take necessary actions to maintain the requisite capital structure.
The Company's total owned funds of Rs 28138.82 Lacs is considered adequate by the management to meet its business interest and any capital risk it may face in future.
(ii) Loan Covenants
Under the terms of borrowing facilities, the company is required to comply with certain financing covenants and the company has complied with those covenants throughout the reporting period.
Depreciation on right of use asset is Rs 31.44 Lacs (P.Y. 31.44 Lacs) and interest on lease liability is Rs 6.99 Lacs (P.Y. 9.71 Lacs) for year ended 31.3.2023.
Lease Contracts entered by the company pertains to plant & machinery and land & building taken on lease to conduct the business activities in ordinary course.
# Ceased from directorship from closure of business hours on 30.09.2022 due to completion of their second term as independent director.
*Significant Transaction with Related Parties.
44. Segment Information:
The business segment has been considered as the operating segment. The Company is organized into three operating segments, Edible Oils, Ceramics and Wind Power Generation. The operating segments are reported in a manner consistent with the internal reporting to the director of the company. The detail of products and services included in above segments are given below-
Edible Oil segment includes Vanaspati Ghee, Edible Oils, Oil Cake, De-oiled cake etc , Ceramics segments includes Insulators and Wind Power segment includes electricity generation from Wind Power Generators.
Geographical segments have been considered as secondary segments and bifurcated into India and Outside India.
Segment revenue, results, assets and liabilities have been accounted for on the basis of their relationship to the operating activities of the segment and amounts allocated on a reasonable basis.
3. None of the non-current assets (other than financial instruments, investment in equity) are located outside India.
5. Wind Power Generation Plant of the Company Located at Village Hansua, District Jaisalmer, Rajasthan is not in operation as the same is not financially viable to run. However, the effect of this segment is very marginal on overall revenue of the company.
46. RELATIONSHIP WITH STRUCK OFF COMPANIES
The company do not have any transactions with the struck off companies under section 248 of the companies Act, 2013 or section 560 of companies Act, 1956.
47. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013
(i) The Company do not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.
(iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act,1961 (such as search or survey or any other relevant provision of Income tax Act 1961.), that has not been recorded in the books of account.
(iv) The Company has not traded or invested in crypto currency or virtual currency during the year.
(v) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.
(vi) The Company does not have any subsidiary company hence the provisions of section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017, is not applicable.
(vii) The company has not entered into any scheme of Amalgamation which has an accounting impact on current and previous financial statement.
(viii) Disclosure on loans / advance to directors / KMP / related parties has given in Note no - 10.1
(ix) The company has not revalued any of the property, plant & equipment and Intangiable assets during the year.
(x) The company has not made any contribution to any politicial party during the current financial year as well as in the previous financial year.
48. The Code on Social Security, 2020 and Industrial Relations Code, 2020
The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code,2020 (“the codes”) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees including post-employment period. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes if any will be assessed and recognised post notification of relevant provisions.
49. No funds 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(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
50. Amendments not yet effective:
The Ministry of Corporate Affairs (MCA) notifies new Indian Accounting Standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by isssuing the Companies (Indian Accounting Standards) Amendment Rules, 2023 applicable from April 1, 2023, as below:
-IND AS 1 - Presentation of Financial Statements - The amendment requires Companies to disclose their material accounting policy rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The company does not expect this amendment to have any significant impact in its financial statement.
-IND AS 12- Income Taxes- The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transaction that, on initial recognition, give raise to equal taxable and deductible temporary differences. The company is evaluating the impact, if any, in its financial statements.
-Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors- The amendments will help entities to distinguish between accounting policies and accounting estimates, the definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statement that are subject to measurement uncertainty". Entities develop accounting estimaties if accounting policies require item in
financial statement to be measured in a way that involves measurement uncertainty. The company does not expect this amendment to have any significant impact in its financial statements.
51. Previous year figures have been re-grouped and re-arranged wherever necessary to confirm to current year classification.
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