(p) Provision, Contingent Liabilities and Contingent
Assets, legal or constructive
Provisions are recognized when there is a present obligation
(legal or constructive) as a result of a past event and it is
probable ("more likely than not") that it is required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation. The amount recognised as a
provision is the best estimate of the consideration required
to settle the present obligation at the balance sheet date,
taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the
estimated cash flows to settle the present obligation, its
carrying amount is the present value of those cash flows. The
discount rate used is a pretax rate that reflects current market
assessments of the time value of money in that jurisdiction
and the risks specific to the liability.
A contingent liability is a possible obligation that arises
from a past event, with the resolution of the contingency
dependent on uncertain future events, or a present
obligation where no outflow is probable. Material contingent
liabilities are disclosed in the financial statements unless the
possibility of an outflow of economic resources is remote.
Contingent assets are not recognized in the standalone
financial statements unless it is virtually certain that the
future event will confirm the asset's existence and the asset
will be realised.
2D Recent Indian Accounting Standards (Ind AS)/
Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. There is no such notification which would have been
applicable from 1st April, 2025 for which the impact on the
Standalone Financial Information is required to be disclosed.
(e) Rights, Preferences and Restrictions attached to shares
The Company has only one class of equity shares having a par value of H10/- per share. The dividend recommended by the
Board of Directors is subject to the approval of Shareholders in the Annual General Meeting. Each holder of equity shares
is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the
shareholders.
(f) No shares have been reserved for issue under options and contracts / commitments for sale of shares / disinvestment as at
Balance Sheet date.
(g) Details of shares issued for consideration other than cash/ bonus shares / bought back
During the year ended March 31,2023, the company has issued 3,05,00,000 shares of H10 each as fully paid-up bonus shares
representing a ratio of 25 (twenty-five) equity shares for every 1 (one) equity share outstanding on the record date.
Securities Premium
Securities Premium represents the amount received in excess of par value of securities. Section 52 of Companies Act, 2013 specifies
restriction for utilisation of security premium.
Retained Earnings
Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company.
Other Comprehensive Income - Items that will not be reclassified to profit and loss.
The actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions and fair value gain/ loss
on unquoted equity instruments have been recognised in OCI.
Security
(a) Cash credit facility from Citi Bank with a sub-limit of Working capital demand Loan (WCDL), Pre & Post Shipment- under LCs
/PO and sight/ usance letter of credit, Bills Discounted & BG carrying variable interest (presently @ 8.25% p.a.) secured by:
Security details
- First pari-passu charge with HDFC Bank Limited on the present and future Stock and Book debts of the Company.
- First pari-passu charge with HDFC Bank Limited on plant & machinery, other movable fixed assets present and future of the Company
- First pari-passu charge with HDFC Bank Limited by way of Equitable Mortgage on Factory land with Shed Building etc at
Jalan Industrial Complex, Domjur, Dist-Howrah and at Belur.
Note: The above collateral securities (except charge on current assets) are proposed to be released subject to same being
released by other members banks.
- Personal Guarantee
Above loans are secured by personal guarantee of Suresh Jhunjhunwala & Anirudh Jhunjhunwala
- Cash Margin of 10% on SLC/ULC and BG
- Demand Promissory Note & Letter of Continuity For the sanctioned amount.
(b) Cash credit facility with HDFC Bank with a sub-limit of Working Capital Demand Loan (WCDL), Pre and Post Shipment Finance,
Letter of Credit, and Bank Guarantee, carrying variable interest (presently @ 7.50% p.a.), secured by:
Security details
- First Pari Passu Charge with Citi Bank on the Stock and Book debts of the Company both present and future.
- First Pari Passu Charge with Citi Bank existing plant & machinery installed in its factory premises located at Jalan Industrial
Complex, Domjur, Jangalpur, Howrah 711411
- Negative Lien on factory land and building located at Jalan Industrial Complex, Domjur, Jangalpur, Howrah 711411.
- Personal Guarantee
Above facilities are secured by personal guarantee of Anuj Jhunjhunwala.
35 Segment information
An operating segment is one whose operating results are regularly reviewed by the entity's chief operating decision maker to
make decisions about resources to be allocated to the segment and assess its performance. The Company has identified the Chief
Operating Decision Maker as its Managing Director. The company operates mainly in one business segment viz., Manufacturing
and selling of Zinc based products and all other activities revolve around the main activity. As the Company has a single reportable
segment, the segment wise disclosure requirements of Ind AS 108 on Operating Segment is not applicable. In compliance to the
said standard, Entity-Wise disclosures are as under:
37 Confirmations for the balances shown under current and non-current loans & advances, current liabilities, Trade payables, Trade
Receivables and other current assets have been sought from the respective parties on random sampling basis. Consequential
adjustments, if any, shall be done on the receipt of the same. In the opinion of the management, the value of current assets, loans
and advances on realisation in the ordinary course of business, will not be less than the value at which these are stated in the
balance sheet.
38 Leases
The Company's leasing agreements (as lessee) in respect of lease for office accommodation & godown are all in the nature of rental
arrangements which are on periodic renewal basis. Expenditure incurred on account of rent during the year and recognized in the
Statement of Profit & Loss amounts to H4.85 millions (Year ended March 31,2025 H4.34 millions)
39 Corporate Social Responsibility
Expenses towards activities relating to Corporate Social Responsibility in compliance with Section 135 of the Companies Act, 2013
are as under:
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as
follows:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e.
available prices) or indirectly (i.e. derived from estimation).
Level 3: Inputs for the assets or liabilities that are not based on observable market data.
(i) The management assessed that fair value of trade receivables, cash and cash equivalents, other bank balances, loans,
borrowings, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due
to the short term maturities of these instruments.
(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets.
The Investment measured at fair value (FVTOCI) and falling under fair value hierarchy Level 2 is valued on the basis of valuation
report provided by external valuer.
(iii) The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue
further units of mutual fund and the price at which issuers will redeem such units from the investors.
(iv) The Company enters into derivative financial instruments with few financial institutions. Commodity contracts are valued
using the forward LME rates of commodities actively traded on the listed metal exchange i.e. London Metal Exchange, United
Kingdom (U.K.) [a level 2 technique]. The changes in counterparty risk had no material effect on the hedge effectiveness
assessment for the derivatives designated in hedge relationship and the value of the other financial instrument recognised
at fair value.
C. Financial Risk Management
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company
continues to focus on a system-based approach to business risk management. The Company's financial risk management process
seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong
internal control systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities;
process of regular reviews / audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation
for the same.
(i) Market Risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest
rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market
movements cannot be normally predicted with reasonable accuracy.
As at March 31,2026, 5% increase/(decrease) in the exchange rate of Indian Rupee with foreign currencies would result in
approximately H15.9 millions (decrease) / increase in the fair value of the Company's foreign currency dollar denominated
instruments (As at March 31,2025, H9.12 millions)
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's exposure to the risk of changes in market interest rates relates primarily to the company
long term and short term borrowing with floating interest rates. The company constantly monitors the credit markets and
rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Price Risk
The Company invests its surplus funds primarily in equity shares, mutual funds and GOI Bonds measured at fair value.
Aggregate value of such investments as at March 31,2026 is H578.22 million (As at March 31,2025 H330.33 millions)
Increase/(decrease) of 5% would result in an impact increase/(decrease) by H28.91 millions and H16.515 millions on total profit
for the year ended March 31,2026 & March 31,2025
(ii) Liquidity Risk
Liquidity risk is the risk than an entity will encounter difficulty in meeting obligation associated with financial liabilities that
are settled by delivering cash or other financial assets. The Company mitigates its liquidity risks by ensuring timely collections
of its receivables and close monitoring of its credit cycle.
(iii) Credit Risk
The exposure to credit risk was H1478.52 millions & H1274.66 millions, as at March 31, 2026 and March 31,2025 respectively,
being the total carrying value of trade receivables, loans, investments in debt oriented mutual funds/govt securities and other
financial assets.
(iv) Capital Management
The Company's policy is to maintain a strong capital base for future development of the business. For the purpose of Company's
capital management, capital includes issued capital and all other equity attributable to equity shareholders of the Company.
As at March 31,2026, the Company has only one class of equity shares.
(v) Hedging activity and derivatives
Fair value hedge of Zinc metal price risk
The Company is exposed to fluctuations in zinc metal price on purchase, sale and inventories lying with the company.
To manage the variations in fair value, the company enters into derivative financial instruments relating to the highly probable
forecasted transactions to mitigate the risk associated with zinc metal price fluctuations. Such derivative financial instruments
are primarily in the nature of future commodity contracts.
The company designates derivatives as hedging instruments in respect of commodity price risk in cash flow hedges and fair
value hedges. As the value of the derivative instruments generally changes in response to the value of the hedged item, the
economic relationship is established.
43 Other Regulatory Information :
(i) The Company does not have any Benami property and no proceeding has been initiated or pending against the Company
for holding any Benami property.
(ii) The Company does not have any transactions with struck off Companies.
(iii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
(iv) The Company has not advanced or given loan 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.
(v) 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.
(vi) 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.
(vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(ix) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
44 Utilisation of IPO proceeds
The Company has received an amount of H1650 million, being proceeds of fresh issue of equity shares in FY 2023-2024. Net Proceeds
after Offer Expenses in relation to Fresh Issue are proposed to be utilised and the utilisation thereof are summarised as below :
IPO proceeds which were un-utilised as at March 31, 2026 were invested in term deposits amounting to H331.32 million with
scheduled bank.
45 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/
disclosure. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year's
standalone financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
46 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, there
are no instance of audit trail feature being tampered and the audit trail has been preserved by the company as per the statutory
requirements for record retention.
47 Details of Loan given, Investments made and Corporate Guarantee given covered u/s 186 (4) of the Companies Act, 2013.
|