Trade receivables with a carrying value of ?6,627.76 lacs and ?6,073.57 lacs have been given as collateral towards borrowings as at 31st March 2025 and 31st March 2024 respectively (refer note 20 and 22 on borrowings).
The credit period given to customers ranges from 7 days to 30 days. For the existing customers based on their past records, the Company fixes the credit limit as well as credit period. For new customers, Company generally supplies the goods against advances.
Of the trade receivables balance as at 31st March 2025, ?6,223.03 lacs (31st March 2024 : ?6,022.81 lacs) is due from Aluminum Smelters in India. Hence, the credit risk concentration is limited to the large Aluminum Smelters in India.
In accordance with Ind-AS 109, the Company applies expected credit loss (“ECL") model for measurement and recognition of impairment loss. The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
G Rights/terms attached to equity shares:
The Company has only one class of issued equity shares having a face value of ?10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. 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.
H a) Dividend paid during the year ended 31st March 2025 include an amount of ?10.00 per equity share towards final dividend for the year ended 31st March 2024 which resulted in a cash outflow of ?915.10 lakhs (?17.50 per equity share towards final dividend for FY 2022-23 and ?10 towards interim dividend for FY 2023-24 which resulted in a cashoutflow of ?2516.4 lakhs)
b) There are no amounts due and payable to Investor Education and Protection Fund as on Balance Sheet date.
Nature and purpose of other reserves General reserve
Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer on net income at a specified percentage in accordance with the applicable regulations. Consequent to introduction of the Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of net profit to general reserve has been withdrawn. The balances in the general reserve as determined in accordance with applicable regulations is ?1803.05 lacs as at 31st March 2025 and as at 31st March 2024.
Equity instruments through other comprehensive income
The Company has elected to recognise changes in the fair value of certain investment in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments within equity. The Company transfers amounts from such component of equity to retained earnings when the relevant equity instruments are derecognised.
Information regarding shares in the last five years
No shares were issued for consideration other than cash during the period of five years immediately preceding the year ended 31st March 2024. Further the Company has not undertaken any buy back of shares during the period of five years immediately preceding the year ended 31st March 2024.
Securities premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.
Amalgamation Reserve
The Company has recognised Amalgamation Reserve on account of amalgamation of erstwhile Paradeep Carbons Limited a 100% wholly owned subsidiary company effective from 1st July 2005.
1) The Term Loan / Working Capital Term Loan facilities are secured by first and equitable mortgage on pari-passu basis of all immovable properties and by hypothecation of all movable properties, plant and equipments, inventories, trade receivables and other receivables of the Company.
2) The Term Loan / Working Capital Loan is repayable in 36 equited monthly instalment after the initial moratorium period of 24 months.
3) The Term Loan / Working Capital Term Loan carries interest rate of 9.25% p.a.
1) The cash credit and buyers credit facilities are secured by first and equitable mortgage on pari-passu basis of all immovable properties and by hypothecation of all movable properties, plant and equipments, inventories, trade receivables and other receivables of the Company.
2) Cash credit facilities availed from banks was payable on demand and carried interest rate ranging between 8.5% to 11.40% computed on a daily basis on the actual amount utilised.
3) Bank Gurantee Buyers Credit is repayable within 180 days and carries interest rate ranging between SOFR 30 bps to SOFR 50 bps.
4) Unsecured loan for working capital purpose from Bajaj Finance Limited is repayable within 90days from the date of disbursement of loan and carries floating interest rate @ 10.25% p.a.
|
34 Contingent Liabilities: (Claims against the Company not acknowledged as debts)*
|
? in lacs
|
|
Particulars
|
As at
31st March 2025
|
As at
31st March 2024
|
|
(i) Income tax demands under appeal:
On 19th March 2025, the Company has received assessment order under Section 143 (3) of the Income-tax Act, 1961 (Act) for assessment year 2023-24 under faceless assessment scheme demanding an amount of ?7,371 Lakhs on account of disallowance under Section 68 alongwith disallowance under Section 37 of the Act. In response to the aforesaid assessment order, the Company has filed Writ Petition before the Hon'ble High Court of Bombay at Goa on the grounds of violation of principles of natural justice i.e. no opportunity of being heard was given to the Company. The writ proceedings are pending.
|
7,795.50
|
424.73
|
|
(ii) The Company's appeal to the High Court of Bombay at Goa against the order of the Income Tax Appellate Tribunal which had confirmed the disallowance of the deduction under section 80HHC of the Income Tax Act, 1961 for assessment years 1993-94 to 2004-05 was allowed by the High Court vide its order dated 21st October 2010. In response to the same, the Income Tax Department filed Special Leave Petitions (SLPs) before the Hon'ble Supreme Court.
During the current year, these SLPs for assessment years 1993-94 to 2004-05 have been dismissed by Hon'ble Supreme Court taking into consideration of the threshold limits for filing of petition by Revenue Authorities."
|
337.13
|
901.00
|
|
(iii) There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated 28th February, 2019, relating to components/allowances paid that need to be taken into account while computing an employer's contribution of provident fund under the Employees' Provident Funds and Miscellaneous Provident Act, 1952. The Company has also obtained a legal opinion on the matter and basis the same there is no material impact on the financial statements. The Company would record any further effect on its financial statements, on receiving additional clarity on the subject.
|
|
(iv) GST demands under appeal:
(v) Goa Green Cess demands:
Pursuant to the Order of Hon'ble High Court dated 14th September 2023 dismissing the writ petition filed by the Company, the Company had received assessment orders for the period FY 2014-15 to FY 2023-24 for principal amount of Cess along with interest and penalty on the same, followed by demand amounting to ?628.30 lacs.
The Company had also filed a Special Leave Petition before the Hon'ble Supreme Court on 11th November 2023 challenging the constitutional validity of the said levy. Hon'ble Supreme Court vide its interim order dated 7th December 2023 directed the Company to pay 50% of the demand to the Government of Goa and provided stay on balance 50% of the demand amount (leading to payment of 318.23 lacs under protest).
Additionally, the Company has challenged the assessment of FY 2014-15 to 2019-20 by State tax authorities by way of Writ Petition before the Hon'ble High Court of Bombay at Goa on 10th November 2023 on the ground that the said notices are time-barred. The Hon'ble High Court has directed the State tax authorities to take cognizance of limitation period while issuing the Assessment Orders. Appeal Hearings are ongoing.
The amounts mentioned above are based on the notice of demand or the assessment orders issued by the relevant authorities, as the case may be. The Company is contesting these demands with the relevant appellate authorities. Outflows, if any, arising out of these demands would depend on the outcome of the decisions of the appellate authorities and the Company's rights for future appeals before the Judiciary. However, the Company is hopeful of successful outcome in the appellate proceedings.
|
86.37
|
1,260.28
|
|
*All amounts are excluding any consequential interest and penalties.
|
|
|
|
35 Commitments
|
|
? in lacs
|
|
Particulars
|
As at
31st March 2025
|
As at
31st March 2024
|
|
Estimated amount of contracts remaining to be executed on capital account and not provided for
|
316.31
|
38.28
|
vii) The projected service cost for the financial year ended 31st March 2025 is ¥46.31 lacs (Previous year ¥44.45 lacs)
Funding levels are assessed by LIC and ICICI on annual basis and the company makes contribution as per the instructions received from them. The Company compares the expected contribution to the plan as provided by actuary with the instruction from LIC and ICICI and assesses whether any additional contribution may be required. The Company considers the future expected contribution will not be significantly increased as compared to actual contribution.
ii) Risk analysis
Company is exposed to a number of risks in the defined benefit plan. Most significant risks pertaining to defined benefits plan and management estimation of the impact of these risks are as follows:
a. Investment risk
The gratuity plan is funded with Life Insurance Corporation of India (LIC) and ICICI Prudential Life (ICICI). Company does not have any liberty to manage the fund provided to LIC and ICICI prudential.
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.
b. Interest risk
A decrease in the discount rate on plan assets will increase the plan liability.
c. Longevity risk/ Life expectancy
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.
d. Salary growth risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.
b) Defined contribution plans:
For the financial year ended 31st March, 2025 a sum of ?129.57 lacs (Previous year ?H9.32 lacs) has been charged to the Statement of Profit and Loss in respect of Company's contribution to superannuation fund, provident and pension fund.
39 Financial instruments - Fair value and risk management i Financial risk management objective and policies
This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and financial liability are disclosed in Note 3d.
iii Valuation techniques and significant unobservable inputs
a) The fair value of forward exchange contract is determined using forward exchange rate at the balance sheet date. The fair value of equity shares in ICICI Bank Limited is determined basis the quoted market price.
b) The finance department of the Company performs the valuation of financial assets and liabilities required for financial reporting purposes. The finance department reports directly to the Chief Financial Officer (CFO). Discussions of valuation processes and results are held between the CFO and the finance department at least once every three months, in line with the Company's quarterly reporting periods.
Financial instruments measured at fair value (Level 2 and Level 3)
Market comparison/discounted cash flow: The fair value is estimated considering (i) current or recent quoted prices for identical securities in markets that are not active and (ii) a net present value calculated using discount rates derived from quoted prices of securities with similar maturity and credit rating that are traded in active markets, adjusted by an illiquidity factor.
Significant unobservable inputs and inter-relationship between significant unobservable inputs and fair value measurement is not applicable.
iv Fair value hierarchy
The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
v Risk management framework
a Risk management
The Company's business is subject to several risks and uncertainties including financial risks. The Company's documented risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed to in the course of their daily operations. The risk management policies cover areas such as liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management. Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers at both the corporate and plant level. Each significant risk has a designated 'owner' within the Company at an appropriate senior level. The potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.
The risk management process is coordinated by the Management Assurance functions and is regularly reviewed by the Company's Audit Committee. The Audit Committee meets regularly to review risks as well as the progress against the planned actions. Key business decisions are also discussed at the periodic meetings of the Audit committee and the Board of Directors. The overall internal control environment and risk management programme including financial risk management is reviewed by the Audit Committee and the Board.
The risk management framework aims to: improve financial risk awareness and risk transparency identify, control and monitor key risks identify risk accumulations
provide management with reliable information on the Company's risk situation improve financial returns
b. Treasury management
The Company's treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations of the Company through internal reports which analyses exposures by degree and magnitude of risks. These risks include market risk (currency risk, interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
The Company uses derivative instruments (forward contracts) as part of its management of exposure to fluctuations in foreign currency exchange rates. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes.
c. Price risk on raw materials and finished goods i.e. RPC and CPC
The Company imports raw material only based on the confirmed orders in hand and indicated orders placed by the reputed aluminum smelters. The Company enters into contract with the major aluminum smelters for the supply of CPC on quarterly basis with the agreed selling price.
d. Financial risk
The Company procures material from overseas suppliers on credit for a period of 180 days. The Company collects dues from the customers within a period of 30-45 days. The Company places fixed deposits with the Company Bankers and the Company's liquid assets like trade receivables, finished goods and raw material which has been procured based on the confirmed orders/indicated orders will be sufficient enough to repay the outstanding payables. The management regularly monitors the liquid assets value vis-a-vis outstanding balance of payables.
f. 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 receivables from customers, loans and investments in debt securities.
The carrying amounts of financial assets and contract assets represent the maximum credit exposure.
g. Foreign exchange risk
The Company's business activities include import of raw materials like Raw Petroleum Coke, which are linked to international price in dollar terms. As a result the company is exposed to exchange rate fluctuation on its imports.
The Company's objective is to insure that the cost of buyer's credit facilities availed doesn't exceed the cost of Rupee funding of a comparable nature at the time of availing. The Company's foreign currency transaction are recorded in accordance with guidelines laid down in Accounting Standard and company after duly considering the cost of forward contract premium rates takes forward contracts.
The Company maintains the details of all hedges obtained bank wise in line with the objective of the managing the foreign currency risk policy. The Company also submits details of forward contract entered to the Board on quarterly basis at the meeting to be held in subsequent quarter. In addition to this, periodic audit of the forward exchange transactions and hedging carried out would be done by the internal auditors of the company and reported to the management.
h. Interest rate risk
The Company avails foreign currency loan in the form of Buyers credit facilities with overseas banks with tenure of 180 days at an interest rate of 6 months SOFR with certain agreed additional basis points. Since the rate is fixed and agreed well in advance, the Company is not exposed to interest-rate risk due to adverse movement in interest rates. Also, the Company procures material from its overseas suppliers for credit upto 180 days. The cost for extending credit is fixed with suppliers upfront and hence the Company is not exposed to interest rate risk.
Non current borrowings mainly involved term loan from the banks for tenure of 36 equated monthly instalments after moratorium period of 24 months.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities, at FVTPL, and the Company does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
i. Derivative financial instruments
The Company enters into forward contracts which are not intended for trading or speculative purposes, but for hedging.
40 Capital management
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company's overall strategy remains unchanged from previous year.
The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.
The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company's policy is to use current and non-current borrowings to meet anticipated funding requirements.
The Company monitors capital on the basis of the net debt to equity ratio. The Company is not subject to any externally imposed capital requirements.
Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components excluding other components of equity (which comprise non-current financial investments measured through OCI).
41 Segment reporting:
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses including revenues and expenses that relate to transactions with any of the Company's other components and for which discrete financial information is available. All operating segments' operating results are reviewed regularly by the Company's Executive Director (ED) to make decisions about resources to be allocated to the segments and assess their performance.
The principal business of the Company is manufacture and sale of Calcined Petroleum Coke. The chief decision maker of the Company monitors the operating results of the Company's business as a single segment. Accordingly in context of Ind AS 108 “Operating Segments", the principle business of the Company constitutes a single reportable segment and all the revenue is generated from external customer. As per Management's perspective, the risk and returns from its sales do not materially vary geographically. Accordingly there are no other business / geographical segments to be reported under Ind AS 108.
43 The Company filed Draft Letter of Offer (DLOF) with SEBI on 23rd December 2022 and subsequently received final observations from SEBI dated 9th February 2023 which was valid for a period of 12 months. However, as the validity of the SEBI observation letter has expired, the Company is not going ahead with the Proposed Rights Issue and an amount of ? 135.48 lacs towards the rights issue expenses has been charged to the Profit and Loss Account as on 31st March 2024.
47 Revenue from contracts with customers (Continued)Performance obligations
The Company satisfies its performance obligations pertaining to the sale of calcined products at point in time when the control of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and do not contain any financing component. The payment is generally due within 7-45 days. There are no other significant obligations attached in the contract with customer.
Transaction price
There is no remaining performance obligation for any contract for which revenue has been recognised till period end. Further, the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have any performance obligations that has an original expected duration of one year or less or any revenue stream in which consideration from a customer corresponds directly with the value to the customer of the entity's performance completed to date.
Determining the timing of satisfaction of performance obligations
There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.
Determining the transaction price and the amounts allocated to performance obligations
The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract with the customer. There is no variable consideration involved in the transaction price except for certain discretionary discounts given, which are adjusted with revenue.
50 Additional regulatory information required by Schedule III
a. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
b. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
c. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
d. The Company has complied with the number of layers prescribed under the Companies Act, 2013.
e. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
f. 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.
g. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
h. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
i. 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
j. 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
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
k. The Company has borrowings from banks and financial institutions on the basis of the security of current assets & fixed assets. The quarterly returns or statements of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.
|