(1) The amount of non-current investment represents maximum amount of investments outstanding during the year. Hence this disclosure also suffice the requirements of Section 186(4) of the Act.
(2) During the year ended 31 March 2023, the Company had exercised the option to convert 2,656 number of 0.01% Convertible Preference Shares ('CPS') of H 10 each of Mister Veg Foods Private Limited, India ("MVFPL") into 2,656 numbers of equity shares of H 10 each in the ratio of 1:1. Further, the Company had also subscribed 3,473 equity share on right issue basis for cash consideration of H 21.25 million. After conversion of preference shares into equity shares and acquisition of additional equity shares on right issue basis, the Company holds 37.98% paid up equity share capital of MVFPL. The shareholder agreement entitles the Company to nominate one board member and it also entitles the Company to vote in all the shareholders meetings in proportion to their shareholding, accordingly, this investment is classified and presented as an associate, measured at cost. MVFPL is primarily engaged in the business of food products.
(3) Pursuant to Share Purchase, Subscription and Shareholder's agreement ("SPSSA") with AMP Energy C&I Private Limited and AMP Energy Green Fifteen Private Limited ("AMP") dated 8 October 2021, the Company had acquired 26.00% stake of AMP, for the purpose of setting up a solar power plant with capacity of 15.5 MW, for captive consumption of power. Pursuant to that, the Company had made investment of H 58.28 million in AMP, representing investment in 582,800 number of equity shares of H 10 each and 52,452 number of 0.01% Compulsorily Convertible Debenture of H 1,000 each. Further, the Company had also entered into a Power Purchase Agreement ('PPA') with AMP to procure 100% of the output of solar energy produced for next 20 years as per the rates negotiated in agreement. As per the SPSSA, in the event of termination of the contracts or completion of the PPA term, the Company will receive investment value only without any share of profit/ loss in the associate. Accordingly, the investment amount has been amortised to give the effect of expected fixed return on such investment due to the difference in agreement rate and existing government grid rates. As the Company has significant influence, the investment has been presented as investment in associate as per Ind AS 28 "Investments in associates and joint ventures".
Note 8. Deferred tax
Deferred income tax reflect the net tax effects of temporary difference between the carrying amount of asset and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant component of the Company's net deferred income tax are as follows:
* Adjustment for Jubilant Ingrevia Employees Welfare Trust ('the Trust'), as the Trust is assessed along with the Company under Income-tax Act, 1961. Accordingly, this is shown as recoverable from the Trust.
# During the year ended 31 March 2024, the Company has opted for new tax regime effective financial year 2023-24 onwards whereby, the applicable statutory income tax rate will be 25.17% as against the statutory income tax rate of 34.944% in the old tax regime in the prior years. Consequently, the tax expense for the year ended 31 March 2024 includes onetime transitional write-off of brought forward minimum alternate tax credit amounting to H 125.60 million.
DTA has not been recognised on temporary differences in relation to indexation benefit on investment in subsidiaries and freehold land amounting to H 360.60 million (31 March 2023: H 327.06 million) and H 108.31 million (31 March 2023: H 97.65 million) respectively, as the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in foreseeable future.
(b) Terms and rights attached to equity shares:
The Company has only one class of shares referred to as equity shares having par value of H 1 each. The holder of each equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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) Aggregate number of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way of bonus shares and shares bought back from the date of incorporation of Company:
The Company did not issue any shares pursuant to contract(s) without payment being received in cash.
The Company did not issue bonus shares.
The Company has not undertaken any buy back of shares.
Note 15. Nature and purpose of other equity
• Capital reserve
Accumulated capital reserve not available for distribution of dividend and expected to remain invested permanently.
• Securities premium
The unutilised accumulated balance represents excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.
• General reserve
This represents appropriation of profit and is available for distribution of dividend.
• Share options outstanding account
This account used to recognise the grant date fair value of options issued to eligible employees pursuant to the Company's employee stock option plan.
• Retained earnings
Retained earnings represent the amount of accumulated earnings and re-measurement differences on defined benefit plans recognised in OCI within equity.
16.1 Nature of security of non-current borrowings and other terms of repayment as at 31 March 2024
16.1.1 Indian rupee term loans amounting to H 1,500 million (31 March 2023: H 1,500 million) from Axis Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 14 equal quarterly installments from December 2024.
16.1.2 Indian rupee term loans amounting to H 1,500 million (31 March 2023: H Nil) from HDFC Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly installments from December 2024.
16.1.3 Indian rupee term loans amounting to H 1,200 million (31 March 2023: H Nil) from HDFC Bank Limited is secured by a first pari-passu charge created on entire movable fixed assets of the Company. This is repayable in 16 structured quarterly installments from June 2025.
16.1.4 Loan from subsidiary is repayable up to five years from the date of respective disbursement and carry interest rate in range from 7.05% to 7.76% (31 March 2023: 6.25% to 7.74%) per annum.
The term loans carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate
(reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2024, the interest rate on long-term Indian rupees
term loans range from 7.53% to 8.50 % per annum (31 March 2023: 7.65% to 8.25% per annum).
16.2 Nature of security of current borrowings and other terms of repayment as at 31 March 2024
16.2.1 Working capital facilities and demand loan sanctioned by consortium of banks are secured by a first charge by way of hypothecation, ranking pari-passu inter-se banks, of the entire book debts and receivables and inventories, both present and future, of the Company wherever the same may be or be held. Working capital loans are repayable as per terms of agreement within one year.
16.2.2 Short term loans and working capital facilities are availed in Indian rupees which carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread. During the year ended 31 March 2024, the interest rate on short-term Indian currency loans range from 6.69% to 9.60 % per annum (31 March 2023: 3.54% to 9.05% per annum).
16. (d) Borrowings secured against current assets
The Company has given current assets (as per sanctioned letter) as security for working capital facilities of H18,000.00 million (31 March 2023: H18,000.00 million) obtained from consortium of banks. The quarterly stock statement filed by the Company in respect to the same is in agreement with the books of accounts of the Company.
(B) Defined benefit plans
i. Gratuity
In accordance with Ind AS 19 "Employee Benefits" an actuarial valuation has been carried out in respect of gratuity. The discount rate is 7.13% p.a. (31 March 2023: 7.35% p.a.) which is determined by reference to market yield on Government bonds at the Balance Sheet date.
The retirement age has been considered at 58 years (31 March 2023: 58 years) and mortality table is as per IALM (2012-14) (31 March 2023: IALM (2012-14)). Expected average remaining working lives of employees are 17.26 years (31 March 2023: 17.51 years) and weighted average duration are 6.60 years (31 March 2023: 7.42 years)
The estimates of future salary increases, considered in actuarial valuation is 10% p.a., for first three years and 6% p.a. thereafter (31 March 2023: 10% p.a. for first three years and 6% p.a. thereafter), taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
The plan assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme for certain employees of a unit of the Company. The details of investments maintained by Life Insurance Corporation are not available with the Company, hence not disclosed. The expected rate of return on plan assets is 7.13% p.a. (31 March 2023: 7.35% p.a.).
(C) Risk exposures:
These plans typically expose the Company to the following actuarial risks:
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
Interest rate risk: A fall in the discount rate, which is linked, to the Government Bond rate will increase the present value of the liability requiring higher provision.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation:
The following methods/assumptions were used to estimate the fair values:
(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments. Further, the fair value disclosure of lease liabilities is not required.
(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying value and fair value.
(c) Long term borrowings taken by the Company are as per the Company's credit and liquidity risk assessment and there is no comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of the borrowings represents the best estimate of fair value.
Note 34. Financial risk management
Risk management framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.
The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board of Directors with top management oversees the formulation and implementation of the risk management policies. The risks are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.
The Company has exposure to the following risks arising from financial instruments:
- credit risk (see (i));
- liquidity risk (see (ii)); and
- market risk (see (iii)).
i. 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 and other financial assets. The carrying amount of financial assets represents the maximum credit exposure.
Trade receivables and other financial assets
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.
As at 31 March 2024 and 31 March 2023, there is no major customer not meeting the credit risk policies of the Company.
Expected credit loss with respect to trade receivables:
With respect to trade receivables, based on internal assessment which is driven by the historical experience/current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months (net of expected credit loss allowance) is H 12.18 million (31 March 2023: H 20.11 million).
* Receivables are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or failing to engage in a payment plan with the Company.
Expected credit loss with respect to other financial asset:
With regards to all financial assets with contractual cash flows, other than trade receivables, management believes these to be high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no allowance for excepted credit loss has been provided on these financial assets.
ii. 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.
The Company's treasury department is responsible for managing the short-term and long-term liquidity requirements. Short-term liquidity situation is reviewed daily by the treasury department. Long-term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.
(1) Carrying amount presented as net of unamortised transaction cost.
(2) Contractual cash flows exclude interest payable.
iii. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Currency risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are EUR and USD.
The Company follows a natural hedge driven currency risk mitigation policy, to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are planned, including but not limited to, entering into forward contracts and interest rate swaps.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in INR with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate.
The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.
If interest rates had been 25 basis points higher or lower and all other variables were held constant, the Company's profit before tax and other equity for the year ended 31 March 2024 would decrease or increase by H 20.73 million (31 March 2023: H 15.02 million). This is mainly attributable to the Company's exposure to interest rates on its floating rate borrowings.
Note 35. Capital management
(a) Risk management
The Company's objectives when managing capital are to:
• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and
• Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:
'Net debt' (total borrowings net of cash and cash equivalents and other bank balances) divided by 'Total equity' (as shown in the Balance Sheet).
The Board of Directors at their meeting held on 14 May 2024 have recommended a final dividend of H 2.50 (250%) per equity share of H 1 each amounting to H 398.20 million for the year ended 31 March 2024 subject to approval in ensuing Annual General Meeting. During the year ended 31 March 2024, the Company has already declared an interim dividend of H 2.50 per equity share of H 1 each and hence, the total dividend for the year ended 31 March 2024 is amounting to be H 796.41 million i.e. H 5.00 (500%) per equity share of H 1.
Note 36. Segment information
Business segments
The CEO and Managing Director of the Company have been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS
108 "Operating Segments". Operating Segments have been defined and presented based on the regular review by the CODM to assess the
performance of each segment and to make decision about allocation of resources. Accordingly, the Company has determined reportable segments by the nature of its products and services, which are as follows:
a. Speciality chemicals: i) Bio-Pyridine & Bio-Picolines ii) Fine chemicals iii) Agro chemicals iv) Custom development and manufacturing organization v) Microbial control solutions.
b. Nutrition & Health solutions: i) Nutrition and health ingredients ii) Animal and human nutrition health solutions
c. Chemical intermediates: - i) Acetyls ii) Speciality ethanol
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
No operating segments have been aggregated to form the above reportable operating segments.
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under 'unallocated revenue or expenses or assets or liabilities'.
Finance costs and fair value gains and losses on certain financial assets are not allocated to individual segments as the underlying instruments are managed on a Company basis.
Borrowings, current taxes, deferred taxes and certain financial assets and liabilities are not allocated to the segments and have been included under 'unallocated assets or liabilities.
Information related to each reportable segment is set out below. Segment results (profit before interest and tax) is used to measure performance because management believes that this information is most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.
Note 37. Related Party Disclosures
1. Related parties where control exists or with whom transactions have taken place:
a) Subsidiaries including step-down subsidiaries:
Jubilant Life Sciences (Shanghai) Limited, Jubilant Life Sciences (USA) Inc., Jubilant Infrastructure Limited, Jubilant Life Sciences NV, Jubilant Life Sciences International Pte. Ltd., Jubilant Ingrevia Employee Welfare Trust, Jubilant Agro Sciences Limited (formerly known as Jubilant Crop Protection Limited).
b) Enterprise in which certain directors are interested or are in common:
Jubilant Pharmova Limited, Jubilant Biosys Limited, Jubilant Agri and Consumer Products Limited, Jubilant Industries Limited, Jubilant Generics Limited, Jubilant Business Services Limited, Jubilant Enpro Private Limited, Jubilant FoodWorks Limited, Jubilant Consumer Private Limited, PSI Supply NV, Jubilant Pharmaceuticals NV, Jubilant HollisterStier LLC, Jubilant Pharma Holdings Inc., JOGPL Private Limited, Jubilant Therapeutics India Limited, Jubilant Clinsys Limited, Jubilant DraxImage Limited, Jubilant First Trust Healthcare Limited, Jubilant Cadista Pharmaceuticals Inc. Jubilant DraxImage Inc., Jubilant HollisterStier General Partnership, Jubilant FoodWorks International Investments Limited, Hindustan Media Ventures Limited, Jubilant Employees Welfare Trust.
c) Key management personnel (KMP):
Mr. Hari S. Bhartia (designated as Co-Chairman and Whole-time Director w.e.f. 1 June 2023), Mr Deepak Jain (w.e.f. 1 October 2023), Mr Chandan Singh Sengar (w.e.f. 16 May 2023), Mr. Rajesh Kumar Srivastava (upto 30 September 2023), Mr. Anil Khubchandani (w.e.f. 17 May 2022 and upto 19 May 2023), Mr. Anant Pande (upto 17 May 2022), Mr. Prakash Chandra Bisht, Ms. Deepanjali Gulati.
d) Non-executive directors:
Mr. Shyam S. Bhartia, Ms. Sudha Pillai, Mr. Arun Seth, Mr. Sushil Kumar Roongta, Mr. Pradeep Banerjee, Mr. Siraj Azmat Chaudhry, Ms. Ameeta Chatterjee.
e) Associates:
Mister Veg Foods Private Limited, AMP Energy Green Fifteen Private Limited. f ) Other:
Jubilant Bhartia Foundation
* As the liabilities for the gratuity and compensated absences are provided on an actuarial basis, and calculated for the Company as a whole, the said liabilities pertaining specifically to KMP are not known and hence, not included in the above table.
** Mr. Rajesh Kumar Srivastava superannuated as CEO and Managing Director with effect from 30 September 2023. After superannuation, he continued as an employee of the Company till 31 December 2023.
*** Mr. Chandan Singh was appointed as Whole-time Director of the Company effective from 16 May 2023 and designated as Co-CEO from the same date. Before this, he was an employee of the Company.
# Commission payable is subject to the approval of shareholders in the annual general meeting.
Note:
(i) The Company has issued support letter ('letter') to Jubilant Infrastructure Limited ('subsidiary') for providing operational and financial support for a period of 12 months from the date of said letter.
(ii) The Company's material related party transactions are at arm's length and in the ordinary course of business.
(1) The central excise, state excise and customs related matters are primarily related to cenvat credit availment, levy of additional fee by the authorities on imports/exports and concessional rate for import duty respectively.
(2) The sales tax related matters are primarily related to short value added tax paid on procurement of molasses.
(3) The income tax related contingent liabilities are primarily comprising of transfer pricing matters and also certain corporate tax matters.
(4) The service tax and goods and services tax related matters are primarily related to service tax demands on ocean freights and goods and service tax credit availment.
(5) Other matters are primarily related to additional demand for environmental clearances and certain employee's related matters. The above mentioned litigations are pending with various courts/authorities.
Future cash outflows in respect of the above matters are determinable only on receipt of judgments/decisions pending at various stages/forums.
The Company believes that none of these matters, either individually or in aggregate, are expected to have any material impact on its financial statements.
(ii) As at 31 March 2024, the Company has outstanding letter of credits amounting to H 521.27 million (31 March 2023: H 15.03 million).
Note 39. Commitments as at year end
a) Capital commitments:
Estimated amount of contracts remaining to be executed on capital account (net of advances) is H 802.84 million (31 March 2023: H 1,391.97 million) for property, plant and equipment and H 3.65 million (31 March 2023: H 12.54 million) for intangible assets.
b) Other commitments:
i. The Company has total commitment for short term leases as at 31 March 2024 is H 3.77 million (31 March 2023: H 1.62 million).
ii. As on 31 March 2024, the Company has made a commitment to invest H 102.50 million in O2 Renewable Energy XVIII Private Limited engaged in electricity generation through solar and wind energy.
iii. The Company has issued support letter ('letter') to Jubilant Infrastructure Limited ('subsidiary') for providing operational and financial support for a period of 12 months from the date of said letter.
(d) The weighted average incremental borrowing rate applied to discount lease liabilities is in the range of 6.75% - 9.16%.
Note 41. Other operating income includes primarily sale of scrap amounting to H 199.61 million (31 March 2023: H 201.22 million) and government grants amounting to H 115.21 million (31 March 2023: H 40.77 million) relating to export sales incentives. The balance in grants receivable from government authorities amounts to H 39.05 million as at 31 March 2024 (31 March 2023: H 9.07 million).
Note 42. During the year, finance costs amounting to H 149.27 million (31 March 2023: H 165.10 million) has been capitalised in property, plant and equipment, calculated using capitalisation rate of 7.60% (31 March 2023: 6.75%)
Note 43. (a) Corporate Social Responsibility ("CSR") Expenditure:
(i) Gross amount required to be spent by the Company during the year is H 73.24 million (31 March 2023: H 48.72 million)
(ii) Amount approved by the Board to be spent during the year: H 73.25 million (31 March 2023: H 48.72 million)
(v) Total of previous year's shortfall: Nil
(vi) Reason for shortfall: Not applicable
(vii) Nature of CSR activities: The CSR activity focus areas are health, education and livelihood to improve the quality of the life of the community around the manufacturing locations.
(viii) Details of related party transactions: Refer note 37
(ix) Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately: Not applicable
(b) Donation includes H 62.50 million (31 March 2023: H Nil) to Prudent Electoral Trust during the year.
Note 44. (i) The Company has not advanced or loaned or invested funds to any person or any entity, 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 a 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.
(ii) The Company has not received any fund from any person or any entity, 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 a or on behalf of the funding party (ultimate beneficiaries); or
(b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
Note 45. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the specified domestic transactions entered into with the specified persons and the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence before the due date of filing of income tax return. The management is of the opinion that its specified domestic transactions and international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
Note 46. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses accounting software for maintaining its books of account for all accounting and payroll records. During the year ended 31 March 2024, the Company had not enabled the feature of recording audit trail (edit log) at the database level the said accounting software for the period 1 April 2023 till 30 November 2023 to log any direct data changes. While for the period from 01 April 2023 to 30 November 2023, the audit trail was managed by a third party service provider but the record for this period were not preserved by the Company.
Note 47. Employee stock option scheme
The Company has a stock option plan in place namely "Jubilant Ingrevia Employees Stock Option Plan 2021" ("Plan 2021").
The Nomination, Remuneration and Compensation Committee ('Committee') of the Board of Directors ('Board') which comprises a majority of Independent Directors is responsible for administration and supervision of the Stock Option Plan.
Under Plan 2021, up to 2,000,000 Stock Options can be issued to eligible directors (other than promoter directors and independent directors) and other specified categories of employees of the Company / subsidiaries.
In 2020-21, Jubilant Ingrevia Employees Welfare Trust ('Trust') was constituted for the purpose of acquisition of equity shares of the Company from the secondary market or subscription of shares from the Company, to hold the shares and to allocate/transfer these shares to eligible employees of the Company/subsidiaries from time to time on the terms and conditions specified under Plan 2021.
During the year ended 31 March 2024, Trust purchased 1,000,551 (31 March 2023: Nil) equity shares of the Company from the open market, out of which 21,995 (31 March 2023: 2,370) equity shares were transferred to the employees on exercise of options.
Fair value of options granted:
The weighted average fair value of options granted during the year for Plan 2021 was H 379.38 (31 March 2023: H411.54) per option. The fair value at grant date is determined using the Black-Scholes-Merton model which takes into account the exercise price, the term of the option, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.
The weighted average share price on the date of exercise for Plan 2021 was H 436.76 (31 March 2023: H 559.70).
Expected volatility was based on an evaluation of the historical volatility of the share price, particularly over the historical period commensurate with the expected term. The expected term of the instruments has been based on historical experience and general option holder behaviour.
Note 52.Other statutory information
i. The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.
ii. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
iii. 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.
iv. The Company is not declared willful defaulter by any bank or financials institution or lender during the year.
v. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
vi. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies act, 2013 read with the companies (restriction on number of layers) rule, 2017.
vii. Quarterly returns or statements of current assets filed by the Company with banks are in agreement with the unaudited books of accounts and no material discrepancy was noticed with the reviewed/ audited books of account.
viii. No loans are granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person, that are: (a) repayable on demand; or (b) without specifying any terms or period of repayment.
Note 53. Previous year figures have been regrouped/ reclassified to conform to the current year's classification. The impact of such
reclassification/regrouping is not material to the financial statements
The accompanying notes, including summary of material accounting policies and other explanatory information form an integral part of the
standalone financial statements
|