1) See Note No.24 (1) (1.6) (v) Adjustments includes provision for impairment of assets amounting to ? 18.50 lakhs (Previous Year ? 17.50 lakhs)
2) The company does not have any restriction on the title of its property, plant and equipments.
3) Depreciation includes depreciation on revaluation asset ? 1.37 lakhs transferred to revaluation reserve(Previous Year ? 1.37 lakhs)
4) The title deeds of immovable properties are held in the name of the Company and further Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
* Shares of Mrs. Sarojini Dinubhai Amin has been transferred to IEPF authority and her current shareholding has become nil.
The rights, preferences and restrictions including restrictions on the distribution of dividends and the repayment of capital:
The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity share 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 / repayment of all creditors. The distribution will be in proportion to the number of equity shares held by the shareholders.
Shares in the Company held by each shareholder holding more than 5 percent shares specifying the number of shares held:
1) a) Total debts are secured by a first charge created in favour of Rare Asset Reconstruction Limited
(RARE ARC) on the stocks of raw materials, semi-finished and finished goods, consumable stores and spares, bills receivables and book debts, furniture, fixtures, office equipments and all other movable and immovable properties, both present and future, of the Company situated at Kasba, Dist. Vadodara, Gorwa, Dist. Vadodara and Mogar, Dist. Anand, all in the State of Gujarat. b) Also Equity Shares of the Core Promoter Group have been pledged to Lenders, total no.of shares 54,46,503 equivalent to 23.59% of total Equity Shares.
2) Further, these facilities are also secured by the personal guarantee of Promoter Directors.
3) Please refer Note No.24(20) for repayment schedule.
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(' lakhs)
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2022-2023
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2021-2022
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2. Estimated value of Capital contracts yet to be executed and not provided
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59.59
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NIL
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3. Contingent Liability to the extent not provided for :
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(a) Bills/Cheques discounted with scheduled banks
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671.46
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307.26
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(b) Income Tax
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394.82
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436.95
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(c) Service Tax / Excise Duty
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118.74
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303.50
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(d) Claims against the Company/disputed liabilities not acknowledged as debts
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846.85
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927.04
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6. Net Profit on account of foreign exchange fluctuation ' 9.81 lakhs (Previous year net profit of ' 3.74 lakhs) has been accounted for in the Statement of Profit and Loss.
7. Disclosure required under Micro, Small and Medium Development Act, 2006
On the basis of confirmation obtained from the suppliers who have registered themselves under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company the following are the details.
9. The Company is engaged in manufacturing of engineering goods only and, therefore, there is only one reportable segment in accordance with Ind AS 108.
11. Net Deferred Tax Asset / Liability of ' (79.18) lakhs has been recognized for the year to the Statement of Profit and Loss on account of employees benefits and depreciation.
12. Operating Lease Obligations
Where the Company is a Lessee :
The Company has taken various commercial premises under operating lease or leave and license agreements. Lease payments are recognised in the Statement of Profit and Loss.
(' lakhs)
Payable not later than one year 15.92
13. (a) The accounts of Trade Receivables, Trade Payables and Advances are subject to
reconciliation/confirmation.
(b) In the opinion of the Company, Current Assets and Non-Current Assets, Loans and Advances have values on realization in the ordinary course of business at least equal to the amount at which they are stated.
14. There is no amount due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2023, except dividend amounting to ' 6.67 lakhs, which is subjudice.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise 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
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
16. Financial Risk Management
The Company has exposure to credit risk, liquidity risk and market risk arising from financial instruments.
The Company's risk management policies are established to identify and analyze the risk faced by the Company, to set appropriate risk limit and controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Companies' activities.
The Company monitors compliance with Company's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
(a) Credit Risk: Credit Risk is the risk of financial loss to the Company if a customer or counter party to the financial instruments fails to meet its contractual obligations and arises principally from the Company's receivables from customers, loans and investments. Credit Risk is managed through continuous monitoring of receivables and follow up for overdues. Investments: The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter parties that have a good credit rating. The Company does not expect any losses from the non performance by these counter parties and does not have any significant concentration of exposure to specific industry or specific country risks. Trade Receivables: The Company has used expected credit loss model for assessing the impairment loss. For the purpose Company uses provision matrix to compute the expected loss amount. The provision matrix takes into account external and internal risk factor and historical data to credit losses from various customers.
Other than trade and other receivable, the Company has no other financial assets that are past due but not impaired.
(b) Liquidity Risk: Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company ensures that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions.
- Price Risk: The Company is mainly exposed to the price risk due to its investment in equity instruments. The price risk arised due to unascertained about the future market value of these investments.
Management Policy: The Company maintains its portfolio in accordance with framework set by risk management policies.
- Currency Risk: The Company has no significant exposure to export revenue and import of raw material and property, plant and equipments so the Company is not subject to significant risk that changes in foreign currency value impact.
17. Capital Management:
Risk Management:- For the purpose of Company's Capital Management, Equity includes Equity Share Capital and all other Equity Reserves attributable to the equity holders of the Company. The Company manages its capital to optimize to the shareholders and make adjustments to it in light of changes in economic conditions or its business requirements. The Company's objective is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate returns to shareholders through continuing growth and maximize the shareholders value. The Company funds its operations through internal accruals. The Management and the Board of Directors monitor the return of capital as well as the level of dividend to shareholders.
18. Other Statutory Information
(a) The Company is not declared as a willful defaulter.
(b) The Company is not having any relationship with struck off companies.
(c) The Company has no approved Scheme(s) of Arrangements u/s 230 to 237 of Companies Act, 2013.
(d) 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, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(e) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(f) There is no undisclosed income during the year in Tax Assessments under the Income Tax Act, 1961.
(g) The Company has not traded or invested in Crypto Currency or Virtual Currency during the Financial Year.
19. Exceptional Item of ' (655) lakhs for the year is net off bad debts, provision of bad debts and profit on sale of old machineries.
21. The Previous Year's figures have been regrouped / rearranged wherever necessary to make it comparable with the Current Year.
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