1. The title deeds of immovable properties are held in the name of the company, in case of land which are on long term lease from government, the lease agreement are duly executed in favor of company.
2. For details assets pledged against borrowings Refer Note No. 15 & 18
3. Company has not revalued its Property, Plant & Equipment & Intangible assets during the period ending 31st March, 2023 and also during the previous period ending 31st March, 2022.
4. Intangible asset under development is Nil (PY Nil)
5. During the year ended March 31, 2023, certain assets which were old and have no realisable value having Net book value of B 1.99 Lakhs/-(PY BB24.28 Lakhs/-) (Gross book value of B 17.35 Lakhs/-(PY B314.30 Lakhs/-)) were retired and shown as impairement loss in the books.
The Company has only one class of equity shares having a par value of D10 per share, Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. However, no such preferencial amounts exist currently.
Equity shares movement during the 5 years preceding March 31, 2023 Equity shares extinguished on buy-back
In the Financial Year 2020-2021, the Company has Bought back its 22,00,000 equity shares @B37/- per share amounting to B8.14 Crores being 9.97% of the total equity share. The equity shares bought back were extinguished on March 17, 2021. The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates.
There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.
Share Premium This Share Premium had been created on issue of shares by way of public issue and right issue.
Capital Subsidy :- Subsidy received in the Fincancial year 2011-12 towards setting up of the Laminates division.
Capital Redemption Reserve:- This reserve was created upon buy back of equity shares in FY 2020-21 Retained Earnings: Amount of retained earnings represents accumulated profit and losses of the Company as on reporting date.Such profits and losses are after adjustment of payment of dividend, transfer to any reserves as statutorily required and adjustment for remeasurement gain loss on defined benefit plan.
During the year Asset related government grant received on Plant & Machinery and the same has been accounted for as deferred revenue and depreciation withdrawn proportionately recognised in Statement of Profit and Loss.
( *Working capital loan from SBI Bank of B4000 Lakhs is secured by 1st Pari Passu charge on entire current assets Stock and book debts of the company both present and future and collateral charge 1st Pari Passu on fixed assets both present and future of the company and personal guarantee of promoter directors.)
( #Working capital loan from HDFC Bank of B3000 Lakhs is Secured by 1st Pari Passu charge on entire Current assets of the company both present and future and collateral security 1st Pari Passu on fixed assets both present and future of the company and personal guarantee of 2 Promoter Directors.)
The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with IND AS 108 on Operating segment reporting taking into account organizational structure as were as differential risk and return of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board
ii) Paper based products: Laminated Sheets (HPL).
The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.
Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets and liabilities of the operating segment. (Primary Segment) of the Company.
Note: - 38 Corporate social responsibility (CSR) Activity
CSR amount required to be spent as per section 135 of the companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs 15.19 Lakhs (Previous year B 13.02 Lakhs) based on Average profit of last 3 years i.e. 2759.47 Lakhs (Previous year 2651.08 Lakhs).
During the year, the company has fulfilled its Corporate Social Responsibility by spending 216.10 Lakhs (P.Y. 213.22 Lakhs) towards corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules thereon by way of contribution to Trust for Education Activity (Previous year towards Foundation for schools project advance based technology).
Note: - 39 Earning Per Share:
Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
In the year 2021-2022 Company has given Corporate Guarantee for availing a loan facility on behalf of M/s Archidply Decor Ltd related concern of the Company to State Bank of India (1000 Lakhs) and HDFC Bank Limited (1500 Lakhs) for the credit facilities granted by them for the purpose of principal business activity of M/s Archidply Decor Ltd. Credit Facility has been transferred by Archidply Decor from State bank of India to Kotak Bank during the year therefore Corporate Guarantee has also changed from SBI to Kotak bank.
The same was approved by board on August 11,2021
During the year 2022-2023 Company has given one more Corporate Guarantee for availing loan facility on behalf of M/s Archidpanel Industries Pvt Ltd, 100% Subsidiary of the Company to State Bank of India (4230 Lakhs) and HDFC Bank Limited (4800 Lakhs) for the credit facilities granted by them for the purpose of Project Cost for setting up of MDF plant of M/s Archidpanel Industries Pvt Ltd
The same was approved by board on August 09, 2022 Note: - 41: Related Party
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Notes:-
1. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
2. Investment in subsidiaries are being carried at cost hence not reported.
3. Finance income and finance cost by instrument category wise classification :-
i) Interest income of 37.86 Lakhs (P.Y. 39.45 Lakhs) on financial instrument at amortised cost.
ii) Interest expense of 3510.22 Lakhs (PY.3386.75 Lakhs) on borrowing at amortised cost.
Note 46. Financial Risk Management-Objectives and Policies
The Company's financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's financial assets include trade and other receivables, cash and cash equivalents, investment in subsidiaries at cost and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management commitatee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company's management that the Company's risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.
Foreign Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of assets and liabilities.
b. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 9 as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.
Refer note no 9 for ageing of trade receivable as of 31st March, 2023 and 31st March, 2022.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high ratings. The Company's treasury department authorizes, manages, and oversees new transactions with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
(iii) Liquidity Risk
The Company's objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required; such credit facilities are reviewed at regular intervals. Thus, no liquidity risk is perceived at present.
Note:- 47 Additional disclosures relating to the requirement of revised Schedule III
(i) 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 willful defaulter by any bank or financial institution or government or any government authority.
(iii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2023 and 31st March, 2022which needs to be recorded in the books of account.
(v) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(vii) The below charges are pending for satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
(viii) Relationship with struck off companies:
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013.
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year.
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities(Intermediaries) with the understanding that the Intermediary 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.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party) 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 on behalf of the Ultimate Beneficiaries.
Note:- 48
Previous year's figures have been rearranged and/or regrouped, wherever necessary.
Note:- 49
The financial statements have been approved by the Audit Committee at its meeting held on 17th May, 2023 and by the Board of Directors on the same date.
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