a. Term, loan from State Bank of India, outstanding Rs.Nil (previous year: Rs.2,72.00 lacs), carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.3.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.10.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.12.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs. 12.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to Oldenburgische Landesbank AG (‘OLB’)) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
b. Term Loan from Punjab National Bank, outstanding Rs.3,47.35 lacs (previous year: Rs.5,74.78 lacs), carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.7.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.24.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.28.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.30.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
c. Term Loan from State Bank of India, outstanding Rs.9,05.72 lacs (previous year: Rs.14,08.00 lacs) carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.15.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.51.75 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.62.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.64.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
d. Term Loan from State Bank of India, outstanding Rs.6,99.26 lacs (previous year: Rs.10,88.00 lacs) carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.12.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.40.00 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.48.00 lacs each starting from April 2019; & (iv) 16 quarterly instalments of Rs.50.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
e. Term Loan from State Bank of India, outstanding Rs.7,22.62 lacs (previous year: Rs.11,25.50 lacs ) carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.12.50 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.41.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.49.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.51.75 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
f. Term Loan from Indian Bank, outstanding Rs.6,36.23 lacs (previous year: Rs.10,20.00 lacs), carrying interest linked to the bank’s MCLR is repayable in (i) 2 quarterly instalments of Rs.7.50 lacs each starting from October, 2016; (ii) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (iii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018 (iv) 12 quarterly instalments of Rs.44.50 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.47.25 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets,
present and future (excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
g. Corporate Loan from State Bank of India outstanding Rs. Nil (previous year: Rs.1,67.79 lacs) carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.4.00 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.13.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.15.75 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs. 16.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
h. Corporate Loan from State Bank of India, outstanding Rs.3,55.66 lacs (previous year: Rs.10,20.00 lacs), carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.11.25 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.37.50 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.45.00 lacs each starting from April 2019 & (iv) 16 quarterly instalments of Rs.47.00 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company and second charge on all the current assets of the Company ranking pari-passu with other term lenders.
i. Corporate Loan from State Bank of India, outstanding Rs.Nil (previous year: Rs.2,47.00 lacs), carrying interest linked to the bank’s MCLR is repayable in (i) 4 quarterly instalments of Rs.2.75 lacs each starting from April 2017; (ii) 4 quarterly instalments of Rs.9.25 lacs each starting from April 2018; (iii) 12 quarterly instalments of Rs.11.00 lacs each starting from April 2019 & (v) 16 quarterly instalments of Rs.11.50 lacs each starting from April 2022 and is secured by pari-passu charge by way of hypothecation/mortgage of all the movable and immovable assets, present and future(excluding specified Dielectric Film Line and slitter which are exclusively charged to ‘OLB’) of the Company & second charge on all the current assets of the Company ranking pari-passu with other term lenders. The loan has been fully repaid during the year.
j. Term Loan from Punjab National Bank, outstanding Rs.1,35.99 lacs (previous year: Rs.3,39.77 lacs), carrying interest linked to the bank’s MCLR, is repayable in (i) 24 quarterly instalments of Rs.25.00 lacs each starting from June, 2020; and is secured by exclusive 1st charge on the assets to be acquired out of above loan and ranking pari passu 2nd charge on all the current assets of the Company with other term lenders.
k. During the year, term/corporate loans aggregating to Rs.26,90.00 lacs has been pre-paid to banks.
l. During the previous year, the Company had been granted a moratorium of 6 months w.e.f. March 2020 for payment of instalment(s) on above mentioned terms loans as per RBI guidelines following the Covid-19 pandemic; accordingly the re-payment schedule has been extended.
m. Working Capital Term Loan from State Bank of India, under Guaranteed Emergency Credit Line 2.0 (GECL2.0) scheme, outstanding Rs.15,00.01 lacs (previous year: Rs.16.00.00 lacs), carrying interest linked to the bank’s MCLR, repayable in (i) 47 monthly instalments of Rs.33.33 lacs each starting from January 2022 & (ii) last instalment of Rs.33.49 lacs in December 2025 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from National Credit Guarantee Trustee Company Ltd (NCGTC).
n. Working Capital Term Loan from Punjab National Bank, under GECL2.0 scheme, outstanding Rs.2,15.60 lacs (previous year: Rs.230.00 lacs), carrying interest linked to the bank’s MCLR, repayable in (i) 35 monthly instalments of Rs.6.38 lacs each starting from February 2022 & (ii) last instalment of Rs.6.70 lacs in January 2025 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC.
o. Working Capital Term Loan from Indian Bank, under GECL2.0 scheme, outstanding Rs.4,26.93 lacs (previous year: Rs. Nil), carrying interest linked to the bank’s MCLR, repayable in 48 monthly instalments of Rs.8.96 lacs each starting from April 2022 is secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC.
p. The above-mentioned term loans carry interest rate between 7.9 to 12 % per annum (previous year: 7.9 to 12 %).
q. ECB from Oldenburgische Landesbank AG (‘OLB’), in the nature of term loan, outstanding €2,268,005; equivalent to Rs.19,41.19 lacs (previous year: €3,402,008; equivalent to Rs.29,75.74 lacs), carrying annual interest at Euribor 1.75% is repayable in 14 semi-annual instalments of €567,001.34 each, along with interest, commencing from April 2017, is secured by hypothecation of specified Dielectric Film Line and slitter at Barjora and is insured under Hermes export credit guarantee;
r. Vehicle Loan(s) of Rs.70.32 lacs (previous year: Rs.30.61 lacs) carrying interest at between 7 to 7.8 % per annum (previous year: 9 to 9.5%) repayable in 36 monthly instalment(s) commencing from date of disbursement, are secured by hypothecation of specified vehicles;
s. Lenders retain the right to recompense for NPV loss amount of upto Rs.3,65.00 lacs arising on rescheduling of term loans effective April 1, 2016;
t. There has been no default in servicing of loans and interest due thereon during and as at the end of the year;
u. Loans from Indian banks are further secured by pledge of 15% of promoters equity shareholding in the Company;
v. Rs.Nil, (March 31, 2021: Rs.80.46 lacs) has been adjusted against long term borrowings being adjustments on account of adoption of Ind AS.
Deferred tax
As per Ind AS 12 - Income Taxes, deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. In assessing the recoverability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. As a matter of abundant caution, deferred tax assets have been recognized in the balance sheet only to the extent reasonably likely to be recoverable within the next financial year.
1) The Company has opted for the alternate tax regime under Section 115BAA of the Income Tax Act, 1961, with effect from the Financial Year 2019-20, which allows the Company a lower tax rate of 25.17% (against 34.94%) but restricts availability
of exemptions/incentives under different provisions of income tax, and is accompanied with immediate expiry of carry forward balance of Minimum Alternative T ax (MAT) credit. Accordingly taxable income for financial year 2020-21 had been adjusted against assessed business losses brought forward and revised return for A.Y. 2020-21 had been filed.
2) The Deferred T ax Assets/Liabilities as at March 31, 2021 and March 31, 2020 and the estimate of Tax Expense for the year ended March 31, 2021 had been accordingly re-measured and Deferred Tax Asset amounting to Rs.5,33.58 lacs, in the nature of MAT credit carried forward had been written off in 2020-21 as no longer available to the Company.
a) Working Capital loans, repayable on demand, and bearing interest at the rate of between 8.75 to 10.75 % per annum are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated.
a) Trade payables are non-interest bearing and are normally settled within 90 days except for payments to MSME which are settled within 45 days. Refer note 47 for information on the Company’s credit risk management processes.
b) Acceptances include arrangements where operational supplies of goods and services are initially paid by banks while the Company continues to recognise the liability till settlement with the banks which are normally effected within a period of 90 days.
c) Disclosures with respect to related party transactions is given in note 42.
d) Micro & small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. The disclosure pursuant to MSMED Act on the amount due to micro and small enterprises is given below:
40. Employee benefits
Defined Contribution Plan
The Company makes contribution towards provident fund and ESI for qualifying employees to government administered /approved funds wherein the Company is required to contribute a specified percentage of payroll cost to the schemes to fund the benefits. The Company has no further obligations beyond the periodic contributions.
The Company recognized Rs.2,82.69 lacs (March 31, 2021: Rs 2,77.70 lacs) towards provident fund contributions and ESI contribution in the Statement of Profit and Loss included in "Employee benefits expense" (note 35).
Defined Benefit Plan Gratuity
The Company provides for gratuity as per the Payment of Gratuity Act, 1972 or as per applicable Company rules, whichever is higher. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The Company accounts for the liability for gratuity benefits payable in future based on actuarial valuation.
The following table sets out the status of the gratuity plan, based on the actuarial valuation obtained in this respect and the amounts recognised in the Company’s financial statements as at balance sheet date:
Note: The Hon'ble Supreme Court had in its judgement in February 2019 opined on the applicability of allowances that should be considered as forming part of basic wages for computing provident fund contribution. Management believes that there are interpretative challenges in the application of the judgement retrospectively and therefore has not considered any probable obligations for past periods while awaiting further directions/clarifications in the matter to assess any potential impact on the Company as no reliable estimate can yet be made.
43. Exceptional items
Exceptional items: Rs.Nil (Rs.51.00 lacs in 2020-21 representing the amount of impairment in value of unquoted investment in Xpro Global Limited written off).
44. Segment Information
The Company operates predominantly within a single reportable business segment i.e. Polymers Processing business and mainly in a single geographic segment i.e. India. There are no separate reportable business or geographic segments. The aforesaid is in line with review of performance and allocation of resources by the chief operating decision maker.
Revenue of Rs.1,32,64.60 lacs (previous year: Rs. 1,73,37.31 lacs) was derived from external customers each accounting for over ten percent of the revenue.
46. Fair Value MeasurementFinancial instrument by category
All financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, other bank balances, interest receivable, trade payables, employee related liabilities and short term loans from banks, are measured at amortised cost.
Fair Value hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are categorised into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical financial instruments;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
Level 3: if there are unobservable inputs for the asset or liability, then the instrument is included in level 3.
The management assessed that for current assets including security deposits, loans, cash and cash equivalents, trade receivables, other recoverable, borrowings, trade payables and other current financial liabilities, the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
(i) The fair values of the Company’s interest-bearing borrowings, loans and receivables are determined by applying discounted cash flows (‘DCF’) method, using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2022 was assessed to be insignificant.
(ii) All the longterm borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying Interest rate indices. The management believes that the carrying rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.
Note: Investment in subsidiaries as at the close of year ended March 31, 2022 and March 31, 2021 respectively are carried at cost, per the exemption availed by the Company; hence not considered herein.
The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are considered to be the same as their fair values, due to short-term in nature.
The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates. ii) Risk management
The entity’s activities expose it to market risk, liquidity risk and credit risk. The entity board of directors has overall responsibility for the establishment and oversight of the entity’s risk management framework. “This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A. Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the entity. The entity’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Credit risk arises from cash and cash equivalents, trade receivables, investment carried at amortised cost and deposits with banks and financial institutions.
Credit risk management Credit risk rating
The entity assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets:
i) Low credit risk; ii) Moderate credit risk and iii) High credit risk on financial reporting date
Assets are written off when there is no reasonable expectation of recovery, such a debtor declaring bankruptcy or a litigation decided against the entity. The entity continues to engage with parties whose balances are written off and attempts to enforce repayment. The entity does not have any of the debts which are recoverable.
Cash & 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.
Trade receivables
The Company closely monitors the credit-worthiness of the debtors through internal systems for corporate customers, thereby, limiting the credit risk. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivables become one year past due.
Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances to employees, security deposit and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are written defined limits.
Expected credit risk losses for financial assets other than trade receivables
Company provides for expected credit losses on loans and advances by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the Company can draw to apply consistently to entire population. For such financial assets, the Company’s policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
Expected credit loss for trade receivables under simplified approach
The Company recognizes life-time expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trends of default. There have been no significant past due trade receivables as Company receives its significant revenue from selling to major customers directly, wherein there are very low or no chances of non-recoverability. For the rest of operations there were no significant past due receivables.
B. Liquidity Risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.
Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant groupings based on their contractual maturities for all non-derivative financial liabilities.
C. Market risk
Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering that part of the borrowings are in foreign currency and also purchases are made in foreign currency, the Company’s exposure to foreign currency at each reporting date is disclosed herein.
Assets
The Company’s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rate.
Capital management policies and procedures
For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders.
The Company’s capital management objectives are
- to ensure the Company’s ability to continue as a going concern
- to provide an adequate return to shareholders
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
48. Leases
a. The Company has adopted Ind AS 116 -‘Lease’ from April 1, 2019, which resulted in changes in accounting policies in the standalone financial statements.
b. Practical expedients applied
The Company has used the practical expedients permitted by the standard:
• applying a single discount rate to a portfolio of leases with reasonably similar characteristics
• accounting for operating leases with a remaining lease term of less than 12 months as at April 1, 2019 as short-term leases.
c. The weighted average lessee’s incremental borrowing rate applied for the lease liabilities on April 1, 2019 was 11.25% with maturity between 2020 - 2028.
d. Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. The Company is prohibited from selling or pledging the underlying leased assets as security. For lease over office building the Company must keep the property in a good state of repair and return the property in the original condition at the end of the lease.
50. Pursuant to the special resolution passed at the Extraordinary General Meeting held on December 29, 2021, and relevant regulatory provisions, the Company issued and allotted on January 11, 2022 by way of preferential allotment 19,68,000 warrants at a price of Rs.762 each, each warrant carrying a right upon being fully paid-up within a period of 18 months from date of allotment to subscribe to one equity share of face value Rs.10 of the Company (including premium of Rs.752 each). The Company has received allotment money of Rs.3749.04 lacs, being 25% of the total warrant price by the end of this financial year. As per the offer letter, the issue proceeds may be utilized for growth capital and expansion/diversification requirements (whether organic or inorganic), to meet capital expenditure, to reduce borrowings, to enhance long-term resources and strengthen the financial structure, for meeting working capital requirements and for other general corporate purposes and purposes permitted by applicable laws. The proceeds of the said issue are being fully utilized for the purposes stated.
51. Estimation of uncertainties relating to global pandemic - Covid-19
The Company has considered the possible effects that may result from COVID-19 on the carrying amounts of financials assets, deferred tax assets, inventory, receivables, advances, property, plant and equipment, intangibles etc. as well as liabilities accrued. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company has used internal and external information such as current contract terms, market and financial strength of customers, future volume estimates etc. Having reviewed the underlying data and based on current estimates the Company expects the carrying amount of these assets will be recovered and there will be no significant impact on liabilities accrued. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements and the Company continues to closely monitor material changes to the economic conditions and impact on business to address and mitigate the overall impact, if any, in this unprecedented situation.
53. Significant events after the reporting period
The Board of Directors has recommended a dividend of Rs.2.00 per share for the year 2021-22, (March 31, 2021 - Rs. Nil per share) subject to approval by the shareholders at the ensuing Annual General Meeting of the Company; No liability has been recognised as at March 31, 2022.
Further, the Board of Directors has recommended for approval by shareholders the issue and allotment of Bonus shares by capitalization of appropriate reserves and surplus, in the ratio of 1 equity share for every 2 equity shares.
There were no other significant adjusting events that occurred subsequent to the reporting period other than events disclosed in the relevant notes.
54. Additional Regulatory Information:
a. There are no immovable properties where the title deeds are not held in the name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company);
b. There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and related parties, either severally or jointly with another person, that are (i) repayable on demand or (ii) without specifying any terms or period of repayment;
c. The Company does not have any Benami property, and no proceedings have been initiated or is pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988;
d. The Company has been regular in filling quarterly returns or statements of current assets with banks and those are in agreement with the books of accounts;
e. The Company has not been declared a wilful defaulter by any bank or financial institution;
f. The Company has no transactions with companies struck off under Sec.248 of the Companies Act, 2013 or Sec. 560 of the Companies Act, 1956;
g. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period;
h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year;
i. The Company has not advanced, 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 persons or entities identified in any manner whatsoever by or on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;
j. The Company has not received any funds from any person(s) or entity(ies), including foreign entities 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 Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;
k. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
55. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its standalone financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
56. Previous period's figures have been regrouped/reclassified wherever necessary to correspond with the current period's classification/ disclosure.
57. The audited standalone financial results along with the report thereon are also available on the Company's website www.xproindia.com and on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com).
58. The standalone financial statements were approved for issue by the Board of Directors at their meeting, deemed to have been held at New Delhi, through video conferencing on May 25, 2022.
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