29 LEASES
Operating Lease
The leasing arrangements are in most cases renewable by mutual consent, on mutually agreeable terms.
The Company’s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under “Other Expenses”.
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30 CONTINGENT LIABILITIES & CAPITAL COMMITMENTS
(? in lakhs)
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Particulars
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As at
31st March, 2023
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As at
31st March, 2022
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Claims against the Company not acknowledged as debts
i. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances).
ii. Income tax demand under appeal Total
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|
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-
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4.38
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71.53
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71.53
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71.53
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75.91
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31 LOANS & ADVANCES
The Company has granted Unsecured loans to Companies, Firms, Limited Liability Partnerships and various other parties other than those covered under Section 185 of the Act. The aggregate amount of Loans given during the year is '18,470.39 lakhs and balance outstanding at the Balance sheet date is ' 30,227.62 lakhs (PY ' 25,902.22 lakhs).
32 According to the information available with the Management, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due to micro and small enterprises under the said Act as at 31st March, 2023 as follows:
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(? in lakhs)
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Particulars
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As at
31st March, 2023
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As at
31st March, 2022
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Principle Amount Not Due Interest due on above
Amount of interest paid in terms of Section 16 of the MSME Act, 2006 Amount of interest due and payable for the period of delay Amount of interest accrued and remaining unpaid as at year end Amount of further interest remaining due and payable in the succeeding year
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80.59
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143.24
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-
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-
|
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-
|
-
|
|
-
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-
|
|
-
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-
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-
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-
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37 SEGMENT REPORTING
The Company manufactures and sells ABS and SAN and Trading in Styrene which belong to the same product group i.e. “Highly Specialized Engineering Thermoplastics” alongwith Trading in raw materials used for manufacturing ABS and SAN. The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Indian Accounting Standard - 108 “Segment Reporting”, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.
38 CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value and to safeguard the Company’s ability to remain as a going concern.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the Company is equity based with no financing through borrowings. The Company is not subject to any externally imposed capital requirement.
No changes were made in the objectives, policies or processes during the year ended 31st March, 2023 and 31st March, 2022 respectively.
39 FAIR VALUE DISCLOSURES
39.1 The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
The categories used are as follows:
• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. ;
• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and
39.2 Financial Risk Management- Objectives And Policies
The Company’s activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The Company has various financial assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Company’s principal financial liabilities comprise of trade and other payables. The Company’s senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the Company’s financial performance. The Company’s overall risk, management procedures to minimize the potential adverse effect of the financial market on the Company’s performance are as follows:
39.3 Credit Risk
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 primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised cost.
A Trade Receivables:
Trade receivables of the Company are generally unsecured. The Company performs ongoing credit evaluations of its customers’ financial conditions and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through internal evaluation. The allowance for impairment of trade receivables is created to the extent and as and when required, based upon the expected collectability of accounts receivables. The Company has no concentration of credit risk as the customer base is geographically distributed in India.
B Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
C Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously and is based on the credit worthiness of those parties.
D Investments
I nvestment in Joint Venture are measured at cost as per Ind AS 28, ‘Investment in Associates and Joint Ventures’ and hence not presented here.
Provision for expected credit losses
a) Expected credit losses for financial assets other than trade receivables
The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
b) Expected credit loss for trade receivables under simplified approach
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified approach,no allowance has been recognised.
39.4 Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. Liquidity risk arises because of the possibility that the Company could be required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments. The Company manages its liquidity risk by maintaining sufficient bank balance .
39.5 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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The Company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:
A Foreign Currency Risk
Foreign currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies.
A.1 Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters. Quarterly reports are submitted to Board of Directors on the unhedged foreign currency exposures.
43 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013
43.1 Details of Benami property:
No proceeding have been initiated or are pending against the Company for holding any Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.
43.2 Utilisation of borrowed funds and share premium:
(a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.
(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.
43.3 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
43.4 Compliance with approved scheme(s) of arrangements:
The Company has not entered into any scheme or arrangement which has an accounting impact on current or previous year.
43.5 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
43.6 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
43.7 Valuation of Property, Plant and Equipment:
The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.
43.8 Willful Defaulter:
The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
43.9 Details of Transaction with Struck of Companies:
There are no Transactions with Struck of Companies during the Current and Previous Year.
44 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.
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