a) Includes premises cost of Rs.62.96 Lakh which is towards cost of premises,furniture & fixtures and air conditioners. Since separate breakup is not available,therefore depreciation has been charged on total cost at Straight Line Method.
b) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1" April 2014 was depreciated over the revised remaining useful life. Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant & Zero Liquid Discharge plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 186.41 Lakh (Previous year Rs. 219.20 Lakh) instead of Rs. 192.05 Lakh (Previous Year Rs. 224.83 lakh), resulting in excess charge of depreciation during the year by Rs. 5.64 Lakh. (Previous Year Rs. 5.63 Lakh).
Certain debit balances of sundry debtors are subject to confirmation and reconciliation. Difference, if any, shall be accounted for on such reconciliation. The Company \follows ‘simplified approach’ for recognition of expected credit loss allowance on trade receivable. Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes expected credit loss allowance based on lifetime ECLs at each reporting date, right from initial recognition.
Credit risk is managed through credit approvals, establishing credit limits, continuous monitoring of creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company also assesses the financial reliability of customers taking into account the financial condition, current economic trends and historical bad debts and ageing of accounts receivables.
* Secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way of mortgage of immovable properties both present and future and further guaranteed by the Managing Director.
Indian Bank has sanctioned Term Loan of Rs. 10800.00 Lacs for setting-up a 150 KL per day Grain based Ethanol Plant, which is yet to be availed.
a) Effective 1st April 2014, the Company had revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April 2014 was depreciated over the revised remaining useful life.
b) Based on technical evaluation, depreciation has been provided taking Plant & Machinery (except CPP Plant & Zero Liquid Discharge Plant) & Captive Power Plant Life to 18 years instead of 25 years as prescribed in the Schedule II of the Companies Act, 2013. Had the useful life be taken to 25 years the depreciaton would have been Rs 186.41 Lakh (Previous year Rs. 219.20 Lakh) instead of Rs. 192.06 Lakh (Previous Year Rs. 224.83 lakh), resulting in excess charge of depreciation during the year by Rs. 5.65 Lakh (Previous Year Rs. 5.63 Lakh).
Reason for Variance
Note 1. Return on Equity, Net Profit Ratio and Return on Capital Employed: Decline in Profitability due to negative return on CPP Segment during the year caused by persistent fall in selling price due to excessive production capacity added in the market.
2. Return on Investment: Better Return from Investments in Liquid Funds.
35 Additional Regulatory Information
i) Title Deeds of all Immovable properties are held in the name of the company.
ii) The company does not have any investment property.
iii) During the year the company has not revalued its property,plant and Equipment (including right -of-Use Assets)
iv) During the year the company has not revalued its intangible assets
v) During the year the company has not granted any Loan or advance in the nature of loans to promoters, directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that are:
a. repayable on demand : or
b. without specifying any terms or period of repayment,
vi) The company does not have Intangible assets under development
vii) No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
viii) The company has borrowings from banks or financial institiution on the basis of security of current assets and quarterly returns or statement of current assets filed by the company with banks or financial institutions are generally in agreement with books of accounts.
ix) The company is not declared wilful defaulter by any bank or financial Institution or other lender.
x) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
xi) No charges or satisfaction yet to be registered with ROC beyond the statutory period.
xii) The compnay has complied with the number of layers prescribed under clause (87) of section 2 of the act read with companies (Restriction on number of layers) rule 2017.
xiii) During the year any Scheme of Arrangements has not been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
xiv) Utilisation of Borrowed funds and share premium:-
A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) 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
(ii) provide any guarantee, security or the like to 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 persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
37. Financial risk management objectives and policies
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables . The main purpose of these financial liabilities is to support its operations. The Company’s principal financial assets include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk and credit risk. The Company’s management advises on financial risks and the appropriate financial risk governance framework for the Company. The Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. 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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, trade payables, deposits and investments.
ii. Foreign Currency Risk
The Company’s raw material are imported and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not Company’s functional currency (INR).
The above sensitivity analysis is based on a reasonably possible change in the underlying foreign currency against the Indian rupee computed from historical data and is representative of the foreign exchange currency risk inherent in financial assets and financial liabilities reported at the reporting date.
(iii) Credit risk
Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
38. Disclosure as required under IND AS 108- Operating Segments Operating Segments:
a. Acrylic Fibre Division
b. Cast Polyproplyne Film Division (CPP Film)
Identification of Segments
The management monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements. The Operating segments have been identified on the basis of the nature of products.
Segment revenue and results
Expenses and Revenue that are directly identifiable with the segments are considered for determining the segment results. Expenses and Revenue which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure and revenue respectively.
Segment assets and liabilities
Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities, if any, represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.
SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)
The geographical segment has been considered as secondary segment. The analysis of geographical segment is based on the geographical location of the customers. The company operates primerly in India and has presence in international markets as well. Accordingly the company has considered domestic and export markets as the geographical segments.
41. Figures for the previous period have been regrouped / rearranged wherever considered necessary.
|