Other Notes
(i) Property, plant and equipment are free from any encumberances.
(ii) Refer Note No. 37(b) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
(iii) Gross Block of Buildings as at March 31,2022 includes value of offices, residential flats and garages in co-operative societies/proposed co-operative societies/association of apartment owners aggregating Rs. 0.03 crore at cost (March 31, 2021 - Rs. 6.33 crore [including cost of shares in co-operative societies Rs. 500/- (March 31, 2021- Rs.7,000/-)].
(iv) Property Plant & Equipment include borrowing costs of Rs.0.42 crore capitalised during the year (March 31, 2021 Rs. 0.39 crore).
(v) Capital work in progress comprises of Property, Plant & Equipment under construction and pre-operative expenses & interest pending allocation.
(vi) The Company has not revalued any of its property, plant and equipment and its right of use assets.
(vii) The Company does not hold any Benami Property and does not have any proceedings initiated or pending for holding benami property under the Benami Transactions (Prohibitions) Act, 1988 and the rules made thereunder.
(viii) All immovable properties are held in the name of the Company.
(a) (i) The Company has opted to measure its non-current investments in equity shares in Subsidiary Companies at Fair
value through Other Comprehensive Income (FVTOCI) while investments held in Joint Ventures are measured at Fair value through Profit or Loss (FVTPL).
(ii) Accordingly, other income and OCI for the year includes Rs.0.04 crore (loss net) and Rs. 0.96 crore (loss net) (202021 - Rs. 4.82 crore (gain net) and Rs. 3.36 crore (loss net)) respectively towards change in fair value of non-current investments.
(iii) During the year the Company disposed off the balance 21% of the equity stake of 51% (8,733,006 shares ) held in Mukand Sumi Special Steel Ltd, a Joint Venture of the Company to Jamnalal Sons Private Ltd., an entity belonging to the promoter group of the Company on 30th April, 2021 for a consideration of Rs.499.53 crore. As this investment was measured at fair value in earlier years, this disposal does not have any material impact on the statement of profit and loss for the year under report .
(b) The Company has an investment of Rs. 26.25 crore (Previous Year Rs. 26.25 crore) in equity shares of Mukand Global Finance Limited (MGFL), a wholly owned subsidiary. On adoption to measure its non-current investments in equity shares in subsidiaries companies at FVTOCI, the exposure of Rs. 26.25 crores has been accounted through FVTOCI in earlier years.
(c) The Company had an investment of Rs. 61.63 crore in equity shares of Vidyavihar Containers Ltd. (VCL) a wholly owned subsidiary and had provided for diminution in the value of investments upto an amount of Rs. 27.73 crore upto March 31, 2017. On adoption to measure its non-current investments in equity shares in subsidiaries companies at FVTOCI, the balance of Rs. 33.90 crore has been accounted through FVTOCI in earlier years. In the previous year the Company divested 11,976,756 shares in VCL to Sidya Investments Pvt Ltd for a consideration of Rs.1 per share. The resultant income had been accounted in OCI.
(d) During the year ended March 31,2022, Mukand Vini Mineral Limited has been struck off from the Registrar of Companies (ROC)
(a) No loans due by directors or other officers of the Company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.
Short Term Loans and Advances, Trade Receivables, non-current investments etc.
(b) The investments in and debts / advances due from Bombay Forgings Limited (BFL) was at Rs 16.54 Crore (net of amounts written off / provision for expected credit loss) as at 31st March 2022 as against Rs. 31.57 Crore (net of amounts written off) as at 31st March 2021. The management, considering the value of unencumbered fixed assets of BFL, considers the balance dues to be 'Good' and adequately covered and barring unforeseen circumstances expects full realisability of the same in future.
(c) For details of loans and advances given to related parties, please refer Note No. 39.
(d) Details of loans and advances in the nature of loans recoverable from subsidiaries/associates and shares held by loanees (stipulated under Regulation 34 (3) and 53 (f) of the Listing Obligations and Disclosure Requirements Regulations, 2015) is as given below:
(e) There are no loans or advances in the nature of loans granted to Promoters, Directors, KMP's and their related parties (as defined under Companies Act,2013) either severally or jointly with any other person, that are :
(i) repayble on demand ; or
(ii) without specifying any terms or period of repayment.
(f) The Company have 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 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.
(g) The Company have 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.
b. Terms / rights attached to equity shares:
The Company has only one class of equity share having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees in accordance with its dividend distribution policy. The Finance Act 2020 has repealed the Dividend Distribution Tax (DDT). Companies are now required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.
The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The Board of Directors in its meeting held on May 17, 2022 recommended a dividend on equity shares @ Re 1.50 per share for financial year 2021-22
During the year ended 31 March 2022, the amount of dividend per share recognized as distribution to equity shareholders was Rs. 1/- as recommended by the Board of Directors in its meeting held on May 25, 2021 and approved by the Shareholders at its meeting held on September 18, 2021.
The Dividend paid for the previous year and proposed for the current year is in compliance with Section 123 of the Act.
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 of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c. The Company does not have any holding company.
d. There are no bonus shares issued nor any shares issued for consideration other than cash nor any shares bought back during the period of five years immediately preceding the reporting date.
1. Capital Redemption Reserve
Capital Redemption Reserve is created by the Company for redemption of preference share from its profits.
2. Securities premium
Securities premium is received from the shareholders of the Company on issue of shares. The reserve is utilised as per the provisions of the Companies Act, 2013.
3. General Reserves
General Reserves is created out of net profits of the Company by way of appropriation of profits.
4. Retained earnings
Retained earnings are the balance (debit /credit) in the statement of profit and loss.
(I) Terms of redemption of 0.01% CRPS
Pursuant to the order of the Hon'ble High Court of Judicature at Bombay dated October 14, 2003, the Company had cancelled 221^ equity shares issued and unallotted and reduced 20% of the then outstanding equity shares amounting to 5,626,320 equity shares. In lieu of cancelled shares, the company has issued 5,626,320 0.01% Cumulative Redeemable Preference Shares of Rs. 10/- each entitled for cumulative Preference dividend of 0.01% p.a. and redeemable in five equal annual installments starting from September, 2019. Accordingly, the Company has redeemed Rs. 2/- per share on September 27th, 2019, Rs 2/- per share on 30th September 2020 and Rs. 6/- per share on 30th September 2021 out of the proceeds received from issue of 8% CRPS during the financial year 2019-20 (Rs.2 called up in FY 2019-20, Rs.2 called up in FY 2020-21 and Rs.6 called up in FY 2021-22) by the Company.
(II) Company allotted 56,26,320, 8% Cumulative Redeemable Preference Shares (CRPS) of Rs. 10 each on private placement basis to the following members belonging to the Promoter Group entities. Rs.10/- has been called up on these shares. These CRPS will be redeemed at Par in one or more installments. These CRPS shall have a maximum term of 20 years from the date of allotment and shall be redeemed at the option of the Company after expiry of 5 years from the date of allotment, but before expiry of 20th year from the date of allotment. In the event of liquidation of the Company before redemption, the holders of CRPS will have priority over equity shares in the payment of dividend and repayment of capital.
b Shareholding of the Promoters in 8% CRPS is as shown above
As per records of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
(III) The Board of Directors in its meeting held on May 17, 2022 recommended a dividend (on paid up basis) @ 0.01% & 8% on respective CRPS for financial year 2021-22
During the year ended 31 March 2022, the amount of CRPS dividend recognized as distribution to CRPS holders was at 8% / 0.01% as recommended by the Board of Directors in its meeting held on May 25, 2021 and approved by the shareholders at its meeting held on September 18, 2021.
(IV) For details of loans received from related parties, refer Note No. 39.
(V) Long Term Loan of Rs 1,000 crores availed from the Bank is repayable in one installment on 22-Sep-22 and hence shown as current maturities of long term debt in Current Borrowings. The interest rate on this is linked to 3 months T Bill spread.
(VI) The Company has not defaulted in the payment of interest and installments of the loans as at 31st March, 2022.
(VII) Disclosure with respect to monthly/quarterly statement of Current assets filed with Bank (Refer Note 49 VI)
(VIII) The Company has created / modified the charges with the Registrar of Companies within the statutory period except in the one case where the charge is yet to be satisifed with Registrar of Companies, despite repayment of the underlying loans. The Company is in the process of filing the charge satisfaction e-form with MCA.
(21) Short Term Borrowings - Security:
a Working Capital Facilities at Note No. 21(I) and non-funded facilities from the Banks were secured during the previous year by hypothecation of stocks (excluding machinery spares) and book debts. The said facilities were also secured by way of against first pari passu charge against mortgage/ hypothecation of Company's 87 acres 4 gunthas (approx.) of land, immovable and movable fixed assets both present and future of the Company at its plant at Kalwe and Dighe, Dist. Thane, in the State of Maharashtra and 184 acre 36 gunthas (approx.) of land, immovable and movable fixed assets both present and future of the Company at its existing steel plant at Ginigera/Kankapura, Dist. Ginigera in the State of Karnataka.
Assets excluded from security given to secured lenders during the previous year at Note No. 21 were as under:
60 acres, 36 gunthas, 8 annas of land at Kalwe and Dighe, Dist. Thane in the State of Maharashtra. 43.14 acres of Leasehold land at Sinnar, Dist. Nashik in the State of Maharashtra. 161.47 acres of land in the state of Jharkhand, for Company's projects in that state.
Ultrasonic Testing machine at Ginigera / Kankapura, District Ginigera in the State of Karnataka.
All other Property Plant & Equipment situated at locations other than its plant at Kalwe, Dighe Thane in the state of Maharashtra and its existing steel plant at Ginigera in the state of Karnataka.
b The Company has not defaulted in the payment of interest and installments of the loans as at 31st March 2022.
Capital Management
The primary objective of the Company's capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2022 and March 31, 2021. The Company monitors capital using a ratio of 'adjusted net debt' to 'equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents & Current Investments. Equity comprises all components of equity including share premium and all other equity reserves attributable to the equity share holders.
(v) The arrears of dividend as on 31-03-21 on 0.01% preference shares for FY 2019-20 Rs.5,064/-,FY 2018-19 Rs.5,627/-, FY 2017-18 Rs.5,627/-, FY 2016-17 Rs.5,627/-, FY 2015-16 Rs.5,627/- and FY 2014-15 Rs. 5,627/-and on 8% preference shares for FY 2019-20 Rs.4,64,863/- in view of amendment to section 123 of the Companies Act, 2013 have been paid during 2021-22 after the approval by shareholders.
(vi) Demand for Annual Bonus for the financial years 1995-96 to 2006-07 by Staff and Officers' Association is pending at different stages in proceedings under The Industrial Disputes Act, 1947. Bulk of these employees are statutorily not covered by The Payment of Bonus Act, 1965 and many of the employees are also not covered by The Industrial Disputes Act, 1947. Liability arising there from cannot therefore be determined at present.
(vii) Government of Maharashtra had served a Demand Notice on the Company for payment of electricity duty for power generated during the period 01.04.2000 to 30.04.2005 and penal interest thereon in Company's Captive Power Plant amounting to Rs.14.27 crore. The Writ Petition filed by the Company was disposed by the Hon'ble Bombay High Court on 7th November, 2009 quashing the said Demand Notice. Government of Maharashtra has however, filed an appeal in the Supreme Court of India against the aforesaid judgment of High Court.
(viii) A claim towards difference in price of calibrated iron ore for the period 1st April, 2006 to 28th February, 2007 amounting to Rs.33.07 crore has been raised by a supplier in March 2007. The Company has been legally advised that the supplier cannot seek this price revision under a concluded agreement and hence no provision is made in the Accounts for the same. The issue along with method of review and re-fixing of price of calibrated iron ore effective on 1st of April each year in terms of agreement is referred to an arbitral tribunal whose award was pronounced on 28th February 2014. In terms of the said award, the supplier is directed to re-compute amount payable by the Company. The supplier has revised the claim amount in December 2020 to Rs. 19.71 Crores. Moreover, the said supplier has also increased the price of calibrated iron ore w.e.f. 1st April, 2007 and thereafter w.e.f. 1st April, every year. This issue too was settled by the aforesaid arbitral tribunal. However, pending such determination of final price, the supplier has raised invoices at an ad-hoc interim mutually agreed price on the marketing contractor who in turn, has billed the Company at the same price and the liability, has been fully accounted for. An appeal preferred for challenging the said arbitration award was rejected by the City Civil Court in January 2019. The marketing contractor has gone in appeal against the decision of the City Civil Court before the High Court of Karnataka. The appeal is pending disposal.
(d) The Company had, during the Financial Year 1998-99, entered into a strategic alliance with Kalyani Steels Limited to set-up a steel plant to be operated by a company - Hospet Steels Limited.
Expenses and liabilities arising out of this alliance to Hospet Steels Limited are shared on the basis stipulated in the relevant Agreements, and its accounting in the books of the Company is carried out, accordingly.
Wherever, due to the terms of the alliance, estimations are required to be made in respect of expenses, liabilities, production, etc., the same have been relied upon by the auditors, being technical matters.
(41) The petitions filed with National Company Law Tribunal (NCLT) for Scheme of amalgamation between Adore Traders and Realtors Private Limited, a wholly owned subsidiary of Mukand Global Finance Limited (MGFL) with the parent company, followed by the amalgamation of MGFL and Mukand Engineers Limited with the Company has been approved by NCLT after close of the year on April 29, 2022. The Scheme shall be effective from the appointed date April 1, 2019 on receipt of certified copy of NCLT order and filing the same with Registrar of Companies. Therefore, the current financial statements do not include effect of amalgamation of these Companies.
(42) (I) In accordance with Indian Accounting Standard - 108 “Segment Reporting”, segment information has been given in
the consolidated financial statements of the Company, and therefore, no separate disclosure on segment information is given in these financial statements.
(II) Impact analysis on account of COVID-19 pandemic - The second COVID-19 wave posed a downside risk to economic activity during the quarter of the year. Its impact was muted compared with that of the first wave a year ago. The Management expects that considering the nature of its business operations, existing customer and supplier relationships, impact on its business operations, if any, arising from COVID-19 pandemic will not be significant in the long run and will be able to recover carrying amount of all its assets as appearing in the financial statements and meet its entire financial obligations in the near future. The impact of COVID 19 pandemic may be different from that estimated as at the date of approval of these financial statements. The Management will continue to monitor any material changes to future economic conditions.
(III) Monetization of assets:
During the year under report the Company has :
i) Disposed off 21% of equity stake held by the Company in Mukand Sumi Special Steel Ltd, a Joint Venture of the Company to Jamnalal Sons Private Ltd., an entity belonging to the promoter group of the Company on 30th April
2021 for a total consideration of Rs.499.53 crore. As this investment was measured at fair value in earlier years, this disposal does not have any material impact on the statement of profit and loss for the year under report.
ii) Received on 30th April 2021 Rs.8.07 crore from MIFZE towards repatriation of capital (4 shares of 1 Million Dhiram each). MIFZE is in the process of closing down its operations and subsequent liquidation.
iii) Executed an Agreement for Sale (AFS) on March 2, 2022, of land of the Company admeasuring approx. 47 acres situated at Kalwe and Dighe, in Thane district for a consideration of Rs. 806.14 crore. Of this, part consideration of Rs.161.23 crore, (being a sum equivalent to 20% of the sale consideration) has been deposited by the purchaser as earnest money deposit, in an escrow account. The aforesaid sale is subject to fulfilment of certain conditions precedent by the parties. Amount realized from above disposal will be mainly utilized to repay debt / other interest-bearing liabilities and this will entail substantial reduction in the yearly interest costs. As at the March 31,
2022 the carrying value of the said land (including capitalized value of improvement) of Rs.106.17 crore is shown as 'Assets held for Sale' in accordance with Ind AS-105.
iv) Executed a Conditional Agreement for Sale of a residential flat at Mumbai on December 10, 2021 for a consideration of Rs.15 crore. Of this, part consideration of Rs.1.50 crore (being a sum equivalent to 10% of the sale consideration) has been received by the Company as an Earnest Money Deposit. As at the March 31, 2022 the carrying value of the said flat of Rs.1.68 crore is shown as 'Assets held for Sale' in accordance with Ind AS-105.
(IV) Leases
The Company has recognised and measured the Right of Use (ROU) asset and lease liability over the lease period. The Company elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets).
(43) Employee Benefits(a) Long term employee benefit obligations
The leave obligations cover the Company's liability for earned leave and sick leave.The compensated absences charged/(written back) in the Statement of Profit and Loss for the year ended March 31, 2022 based on actuarial valuation is Rs. (1.99) Crore (March 31, 2021 Rs. 0.51 crore).
(b) Post employment obligations Defined contribution plans
The Company also contributes on a defined contribution basis to employees' provident fund and superannuation fund. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund (an exempted Trust). The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
Gratuity
The Company provides for gratuity for employees as per Company's Scheme/s. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month and as per the Schemes applicable to those employees. The gratuity plan is a funded plan. The scheme is funded with Life Insurance Corporation in the form of a qualifying insurance policy.
The actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.
a) The rate used to discount post employment benefit obligations is determined by reference to market yields at the end of the reporting period on government bonds.
b) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
c) The gratuity fund is managed by Life Insurance Corporation and details of fund invested by insurer are not available with Company.
d) The Company expects to make a contribution of Rs. 4.91 Crore to the defined benefit plans (gratuity - funded) during the next financial year.
e) The average duration of the defined benefit plan obligation at the end of the reporting period is 7 years.
Risk exposure
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory frame work which may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:
Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).
Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions. Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time) and Company's Schemes for different category of employees. There is a risk of change in regulations requiring higher gratuity payouts.
Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets, exposing the Company to the market risk for volatilities/fall in interest rate.
Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
B. Measurement of fair value
The following methods and assumptions were used to estimate the fair values:
a) The carrying amounts of trade receivables, trade payables, deposits, other receivables, cash and cash equivalent including other current bank balances and other liabilities including deposits, creditors for capital expenditure, etc. are considered to be the same as their fair values, due to current and short term nature of such balances.
b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances if required, are taken to account for expected losses of these receivables.
c) The fair values for investment in equity shares other than subsidiaries were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs.
C. Fair Value Hierarchy
The fair value of financial instruments as referred to above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds 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. This is the case for unlisted equity securities included in level 3.
(47) Financial Risk Management
The process of identification and evaluation of various risks inherent in the business environment and the operations of the Company and initiation of appropriate measures for prevention and/or mitigation of the same are dealt with by the concerned operational heads under the overall supervision of the Managing Directors of the Company. The Audit Committee periodically reviews the adequacy and efficacy of the overall risk management system. The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company has in place adequate Internal Financial Controls with reference to financial statements and such internal financial controls are operating effectively. The Company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, the safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial statements.The Company has exposure to the following risks arising from financial instruments:
• Credit risk
• Liquidity risk and
• Market risk
A Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's trade and other receivables. The carrying amounts of financial assets represent the maximum credit risk exposure.
i Trade and Other receivables
An impairment analysis is performed at each reporting date. The expected credit losses over lifetime of the asset are estimated by adopting the simplified approach using a provision matrix. The loss rates are computed using a 'roll rate' method based on the probability of receivable progressing through successive stages till full provision for the trade receivable is made.
The ageing analysis of trade receivables (net of provision) has been considered from the date the invoice falls due.
iii Cash and bank balances
The Company held cash and cash equivalent and other bank balance of Rs. 208.24 crores at March 31, 2022 [including Rs. 161.46 crores being Short Term Fixed Deposit Escrow Account] (March 31, 2021: Rs. 35.99 crores). The same are held with banks with good credit rating.
B Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.
C Market risk
Market risk is the risk that changes in market prices, such as interest rates (interest rate risk), will affect the company's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
D Interest rate risk
Interest rate risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long term debt obligation at floating interest rates. The company's fixed rate borrowings are carried at amortised cost. 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 rates.
II The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
III The Company have no 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).
IV The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
V The Code on Social Security, 2020 ('Code') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions.
VI Disclosure with respect to monthly/quarterly statement of Current assets filed with Bank
The Company has filed, monthly/quarterly returns or statements read with subsequent revision, with the banks in compliance with the sanctioned facilities, which are in agreement with books of accounts at the time of filing with respective banks.
VII In view of the aggregate losses as calculated in accordance Sec 135 and 198 of the companies Act, 2013 during last 3 years immediately preceding financial years, the Company is not required to incur any expenditure in pursuance of the CSR policy for the FY 2021-22.(Previous year : NIL).
(50) Previous year's figures have been regrouped/recast wherever necessary.
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