Peformance Obligations
Sale ul Ptuducts: Pei lui mai ice ubligd licit mi i i expect ul idle Ol goodi iJ satisfied when the controls ul the guuds is transferred to the customers, generally on delivery of the goods and payment is generally due as per the term of contracts with customers.
Sale of Services: Performance obligation in respect of sale of services is satisfied over a period of time and the acceptance of the customers. In respect of these services, payment is generally due upon the completion of services and acceptance from the customers.
The Company doest not have any remaining performance obligation as contracts entered for sale of goods and sale of services are for a shorter duration.
* The Company collects the Goods and Service Tax (GST) on behalf of the Government, hence the GST is not included in Revenue from Operations.
"Note No. - 31A" - Fair Value Measurements
i) Financial Instruments measured at Fair Value through Other Comprehensive Income
The Company neither holds any quoted equity shares nor holds quoted or unquoted debentures or bonds, which are being measured at Fair Value through Other Comprehensive Income (FVTOCI), so the reporting under the "Ind AS -109, Fair Value" is not applicable to the Company for all the reporting periods presented in the Ind AS financial statements.
ii) Financial Instruments measured at Fair Value through Profit or Loss
The Company neither holds any unquoted equity shares (other than investments in associates, which are being measured at amortized costs) nor holds foreign currency forward exchange contracts nor holds quoted or unquoted mutual funds, which are being measured at Fair Value through Profit and Loss (FVTPL), so the reporting under the "Ind AS - 109, Fair Value" is not applicable to the Company for all the reporting periods presented in the Ind AS financial statements.
The Company has not any financial liabilities, which are being measured at Fair Value through Profit or Loss (FVTPL), so the reporting under the "Ind AS -109, Fair Value" is not applicable to the Company in respect of all the reporting periods presented in Ind AS financial statements.
iii) Financial Instruments measured at Amortized Costs
The carrying amount of financial assets and financial liabilities measured at amortized cost in the presented financial statements are a reasonable approximation of the fair value since the Company does not anticipate that the carrying amounts would be significantly different from the value that would eventually be received or settled.
"Note No. - 31B" - Financial Risk Management - Objectives and Policies
The Company's financial liabilities mainly comprise the loans and borrowings in domestic currency, retention money related to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company's business operations and to provide guarantees to support its operations. The Company's principal financial assets mainly comprise of security deposits, cash and cash equivalents, other balances with banks, trade and other misc. receivabj^tfefederive
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directly from its business operations. ^
The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments. The Board of Directors ("the Board") oversees the management of these financial risks. The risk management policy of the Company formulated by the Company's management and approved by the Board of Directors, which states the Company's approached to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities and the Company's managements, the structure for managing the risk and the framework for risk management. The framework seeks to identify, assess and mitigate the financial risk in order to minimize the potential adverse effect on the Company's financial performance. The Board has taken necessary actions to mitigate the risks identified on the basis of information and situation presents.
The following disclosures summarize the Company's exposure to the financial risks and the information regarding use of derivatives employed to manage the exposures to such risks. Quantitative sensitivity analysis has been provided to reflect the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of the Company.
1) Market Risk
Market Risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises three types of Risk: "Interest rate risk, Currency risk and Other price risk". Financial instruments affected by the market risk includes loans and borrowings in domestic currency, retention money related to capital expenditures, trade and other payables and trade receivables.
a) Interest Rate Risk
Interest rate risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of changes in market interest rates. An upward movement in the interest rate would adversely affect the borrowing costs of the Company. The Company is exposed to long-term and short-term borrowings. The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate balances. The Company has not used any interest rate derivatives.
Fui eign lui i ency i iak is llie i iak llidl Llic fail vdlui Of futUI'4 cash outflows of (in exposure will fluctuate due to changes in foreign exchange rates. The Company operates globally, and the portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currency. The foreign currency exchange rate exposure is partly balance by purchasing of the goods in the respective currencies.
The above table represents the total exposure of the Company towards its foreign exchange denominated monetary items. The Company has no hedged its foreign currency exposure during the reporting period and previous reporting period. The details of unhedged exposures are given as part of "Note No. 45B".
The Company is mainly exposed to changes in USD ($). The below table demonstrate the sensitivity to a 5% increase or decrease in USD ($) against INR, considering with all other variable constants. The sensitivity analysis is prepared on the net unhedged exposure of the Company at the reporting date and previous reporting period. 5% represents management's assessment of reasonably change in foreign exchange rate.
Other price risk is the risk that the fair value of a financial instruments will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in quoted equity instruments and bonds. The Company is exposed to price risk arising mainly from investments in quoted equity instruments recognized at FVTOCI, if any. As at March 31, 2023, the carrying value of such equity instruments recognized at amounis FVTuCI amounts to T NIL (Marcli 31, 2022 ^ NIL).
2) Credit Risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial losses to the Company. Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalents, other balances with banks and other financial assets.
The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.
Credit risk arising from other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognized financial institutions with high credit rating assigned by the international credit rating agencies.
The average credit period on sale of products is less than 60 to 90 days. Credit Risk arising from trade receivable is managed in accordance with the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on detailed study of credit worthiness and accordingly individual credit limits are defined / modified. The concentration on credit risk is limited due to the fact that the customer base is large. There is no customer representing more than 5% of total balance of trade receivables. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward-looking estimate. The provision matrix at the end of reporting period as follows:
3) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial assets. Liquidity risk may result from an inability to sell a financial assets quickly at close to its fair value.
The Company has an established liquidity risk management framework for managing its short-term, medium-term and long-term funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in the cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitment in a timely and cost-effective manner.
The Company believes that its liquidity positions {As at March 31, 2023 ^ 36.42 Lakhs (Prev Year ? 61.76 Lakhs)}, anticipated future internally generated funds from operations, and its fully available revolving undrawn credit facilities will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has excess to financing arrangements, value of unencumbered assets, which should unable it to meet its ongoing capital, and other liquidity requirements.
The liquidity position of the Company mentioned above, included;
i) Cash and Cash Equivalents as disclosed in the Cash Flow Statements
ii) Current / Non-current term deposits as disclosed in the financial assets The Company's liquidity position monitored by the management, includes;
i) Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met;
ii) Maintaining rolling forecast of the Company's liquidity position on the basis of expected cash flows;
iii) Maintaining diversified credit lines.
The table below analysis financial liabilities of the Company into the relevant maturity grouping based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:
"Notes - 31C" - Capital Management
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles;
a) Maintain the financial strength to ensure the good ratings domestically and investment grade ratings internationally.
b) Ensure financial flexibility and diversify source of financing and thei^jqaturities to minimize liquidity risk while meeting investment requirements.
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c) Ensure sufficient liquidity is available (either through cash and cash equivalents, investments or committed credit facilities) to meet the need of business.
d) Minimize the finance costs while taking into considerations current and future industry, market and economic risks and conditions.
e) Safeguard its ability to continue as going as a going concern.
f) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance Sheet.
This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.
The Board of Directors of the Company has primary responsibilities to maintain a strong capital base and reduce the cost of capital through prudent management of deployed fund and leveraging in domestic and international financial market so as to maintain investors, creditors and market confidence and to sustain future development of the business.
For the purpose of the Company's Capital Management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company, when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholders value.
As at March 31, 2023, the Company has only one class of equity shares. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or reinvestment into business based on its long-term financial plans.
The Company has complied with the covenants as per the terms and conditions of the major borrowing facilities throughout the reporting period and prey^®ffff©ftprting period.
Defined Contribution Plans Provident Fund
The Provident Tund assets and liabilities aro managed by the Company in linn with thp Fmployees' Provident Fund and Miscellaneous Provision Act, 1952.
I
The plan guarantees minimum interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with interest accumulated thereon are payable to the employees at the time of separation from the Company or their retirements, whichever is earlier. The benefits on the
redering of the service by the employee. In term of Guidance Note isused by the Institut^/^^Actuarie^^findia for measurement of provident fund liabilities, the Actuary has provided a valuation of Pand based on assumptions provided. There is no Shortfall in the contribution as at March 31,
The Board of Director of the Company has not declared any interim dividend during the current reporting period and previous reporting period.
Proposed Dividend
The Board of Director's at their meeting held on May 10, 2023 have recommended a payment of final dividend of ? 00.15 (Fifteen Paisa Only) per equity shares of the face value of ? 10.00 per equity share of the face value
of equity shares for the financial period ended at March 31, 2023. The Company has Proposed? 16.70Lakh as final dividend subject to the apporval of the shareholders at their ensuing Annual General Meetmg^AGM) Company, hence it is not recognized as the "Liabilities" in the Ind AS financial statements of
1 Consolidated Financial Statements
During the reporting period and previous reporting period presented under the Ind AS finabci^st^ents the Company has neither Subsidiary nor Associate and Joint Ventures. Hence, the disclosure under Ind AS - 1 ,
"Consolidated Financial Statements" is not applicable to the Company.
Note No. 39: Information on Related Party Transaction as required by Indian Accounting Standards - 24 - "RELATED PARTY DISCLOSURE" for the year ended March 31, 2023.
Terms and Conditions with the transactions with Related Parties as under:
a) The Company has been entering into transactions with related parties for its business purpose. The process followed for entering into transactions with these related parties are same as followed for unrelated parties. Vendor's are selected competitively having regard to strict adherence to quality, timely servicing and cost advantage. Further related party vendors provide additional advantage in terms of:
i) Supplying products primarily to the Company
ii) Advanced and innovative technology
iii) Customization of products to suit the Company's specific performance;
iv) Enhancement of the Company's purchase cycle and assurance of just in time supply with resultant benefits - notably on working capital.
b) The sales to and purchases from the related parties are made on the terms equivalents to and those applicable to all unrelated parties on the arm's length transactions.
c) Outstanding balances of the related parties at the end of the reporting period are unsecured, interest free and will be settled in the cash on demand basis.
"Note No. 40 - Additional Regulatory Information as required by the Schedule - Ill of the Companies Act, 2013"
i) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken as at the balance sheet date. The Company has not defaulted in the repayment of principal and interest thereon on all the loans obtained from banks and financial institutions, during the reporting period and previous reporting period.
ii) The title deed in respect of self-constructed building and title deeds of all other immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in the favor of the Company), disclosed ijjjs^fey^f i n a n c i a I
statements and included under the head of property, plants and equipments are held in the name of the Company as at the Balance Sheet date. In respect of the immovable properties taken on lease by the Company, the lease agreements are in the name of the Company as at
the Balance Sheet date.
iii) There are no loans and advances in the nature of loans are granted to promoters, directors, key managerial parties and the other related parties including the subsidiaries, associates and joint ventures (as defined under the Companies Act, 2013), either severally
and Jnlnlly with any uLlitii ptMiun that aie,
a) repayable on demand or;
b) without specifying any terms or period of repayments.
iv) The Company does not have benami property held in its name. No proceeding 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 the relevant Rules made
thereunder.
v) The Company has been sanctioned working capital limit from bank and financial institutions on the basis of security of current assets. The quarterly returns and the statements filed by the Company with such banks and financial institutions are in agreements with the books of accounts of the Company.
vi) The Company has not been declared as willful defaulter by the banks and the financial institutions or other lender or government or any government authorities.
V
vii) The Company has not been entered any transactions with the companies struck off as per section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 2013,
hence the details related to the same has not been furnished.
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viii) The Company does not have any charges or satisfaction of charges, which is yet to be registered with the Registrar of Company beyond the statutory period.
ix) The Company neither subsidiaries nor associates and nor joint ventures, hence the requirements with respect to the number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017
is not applicable.
x) Utilization of borrowed funds and share premium;
1) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (intermediaries) with the understanding that the
intermediaries shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or;
b) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.
2) The Company has not received any funds from persons or entities, including foreign entities (Funding Parties) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;
b) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.
xi) There has been no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the reporting period and previous reporting period in the tax assessments under the Income Tax Act, 1961.
xii) The Company has neither traded nor invested nor advanced in Crypto or Virtual Currency during the reporting period and previous reporting period.
"Note No. 41 - Corporate Social Responsibility
As per the Section 135 of the Companies Act, 2013, A Company, which meeting its applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial year on Corporate Social Responsibility (CSR) Activities. The area of CSR Activity are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A Corporate Social Responsibility (CSR) Committee has been formed as per the requirement of the Companies Act, 2013. The fund has been administrated by the committee, once it is allocated to the Corpus for the purpose of CSR Activities prescribed under Schedule - VII of the Companies Act, 2013. The Company does not meet the eligibility criteria as specified under section 135 of the Companies Act, 2013, hence the reporting under these clause is not applicable to the Company for all the reporting period presented in the financial statements.
"Note No. 42 - Segment Reporting
During the reporting period and the previous reporting period presented under the financial statements, the Company has been operates under only one segments i.e. manufacturing and trading of Tutty Fruity, Cotton Bales and other agriculture commodities. Hence, the disclosure under Ind AS - 108, "Operating Segments" is not applicable in the case of the Company for all the reporting period presented in the financial statements.
a) Estimated amount of contracts remaining to be executed on capital account, net of advances given and not provided for as at March 31, 2023 is ? NIL (Prev Year ^ NIL).
b) Estimated amount of Commitments as at March 31, 2023 is ? NIL (Prev Year ^ NIL).
Details of Hedged and Unhedged Exposures in Foreign Currency Denominated Monetary Items
A) Exposure in Foreign Currency - Hedged
The Company does not enters into forward exchange contracts to hedge its foreign currency exposures relating to the underlying transactions and the firm commitments. The Company also d^s-mt:e.nter into any derivative instruments for trading and speculation purposes during the reportin^^rod*<|pd previous
reporting period presented in the financial statements.
B) Exposure in Foreign Currency - Unhedged
The details of the foreign currency exposures not hedged as at the reporting period are as under: i) Payable during the Reporting Period
The Company does not have any unhedged foreign currency exposures payable on the reporting period and previous reporting period as specified under the financial statements.
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