The name of the Company was changed from Meghmani Finechem Limited to Epigral Limited during the year with effect from August 04, 2023. Accordingly, the Company is in the process of changing the title deeds of immovable properties viz: free hold land, building and leasehold land and building in its updated name.
Capital Work in Progress ?48,284.27 Lakhs as at 31st March 2024 comprises expenditure for Expansion Project of Chloro Polyvinyl Chloride, Chlorotoluene and other Projects which are in the course of construction..
The amount of borrowing costs added to cost of capital work-in-progress during the year ended 31a March 2024 is?683.60 Lakhs (31st March 2023: ?911.75 Lakhs). The rate used to determine the amount of borrowing costs eligible for capitalisation is 8.15%, which is the effective interest rate of the specific borrowings taken for above mentioned Projects. Refer note 41 for Right of Use assets details.
As on 31a March, 2024 other than mentioned above there are no Projects whose completion are overdue or exceed its cost as compare to plan, also there is no suspended Projects as on 3 la March,2024.
For Property Plant & Equipment and Intangible Assets existing as on 1 April 2015 i.e. the date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost as permitted by Ind AS 101 “First Time Adoption of Indian Accounting Standard”. Accordingly, the net WDV as per Indian GAAP as on 1 April 2015 has been considered as Gross block under Ind AS. The accumulated depreciation is netted off as on 1 April 2015.
During the Current Year exchange gain of ?. Nil (31 March 2022: Nil) arising on reporting of long term foreign currency monetary item related to Property, Plant and Equipment has been added/deducted to cost of Property, Plant and Equipment and the unamortised balance carried as part of tangible asset as at theyear end aggregate to ?345.87 Lakhs (31st March 2022: ?375.41 Lakhs ), in view of option given in para D13AA of IND-AS 101 on first time adoption of IND-AS.
Capital Work in Progress ?15,810.25 Lakhs as at 31a March 2023 comprises expenditure for Expansion Project of Chloro Polyvinyl Chloride and Chlorotoluene and Research & Development center which are in the course of construction.
The amount of borrowing costs added to cost of capital work-in-progress during the year ended 31a March 2023 is ?911.75 Lakhs (31a March 2022: ?1,645.65 Lakhs). The rate used to determine the amount of borrowing costs eligible for capitalisation ranges between 7.05% to 7.70%, which is the effective interest rate of the specific borrowings taken for above mentioned Projects.
As on 3 la March, 2023 there is no Projects whose completion is overdue or exceed its cost as compare to plan, also there is no suspended Projects as on 31a March,2023 For Property Plant & Equipment existing as on 1 April 2015 i.e. the date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost as permitted by Ind AS 101 “First Time Adoption of Indian Accounting Standard”. Accordingly, the net WDV as per Indian GAAP as on 1 April 2015 has been considered as Gross block under Ind AS. The accumulated depreciation is netted off as on 1 April 2015.
The Company has entered into Share Subscription and Shareholders’ Agreement (SSSA) with ReNew Green (GJS three) Private Limited (“”RGPL””) whereby the Company has invested H2,054.08 Lakhs for 26% equity share capital of RGPL. RGPL is in the business of developing and operating 18.34 MW wind-solar hybrid power plant in Gujarat. Based on “"Energy Supply Agreement(ESA) with RGPL the company will have exclusive right to purchase the energy produced by RGPL for a period of 25 years. RGPL has started its operation during first quarter of the Year.
Margin Money Deposits amounting H46.08 Lakh (31 March 2023: H43.81 Lakh ) are given as Security Deposit against Bank Guarantee with bank. These deposits are made for varying periods of between 1 year to 10 years and earn interest ranging between 5.40% to 7.25%.
Trade Receivable are secured to the extent of deposit received from the Customers.
Trade Receivables are non interest bearing and generally have credit period of 30-90 days.
For amount due and terms and conditions relating to related party, please refer note no 37.
No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.
For information about Credit Risk and Market Risk related to Trade Receivables, please refer note no 43.
(i) Equity Share:
The Company has only one class of Equity Shares with par value of H10 per share. Each equity shareholder is entitled to one vote per share. All Equity Shareholders have equal dividend rights. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive 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.
As per records of the Company, including its register of shareholder / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
Capital Reserve
The balance in Capital Reserve represents difference between consideration paid and net asset acquired under common control business combination transactions and cancellation of shares pursuant to scheme of arrangement
Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfer to General Reserve, Dividend paid to Shareholders. It also includes Re-measurement gain/(loss) on defined benefit plans that will not be re-classified to the Statement of Profit and Loss.
Details of Security and Repayment Terms :
i) The Company has availed following Rupee
Term Loan facilities:
1) Term loan amounting H15,000 Lakhs from HDFC Bank Limited is for capital expenditure towards setting up of new Caustic Soda Lye Plant with new 36 MW Captive Power Plant. Outstanding balance for this facility is H3,333 Lakhs (31st March 2023: H6,667 Lakhs). This borrowing carries interest @ 1 year MCLR (Benchmark rate) plus NIL spread (to be set every year) payable on monthly rest. The term loan is repayable in 18 quarterly instalments of H833.33 Lakhs each starting from 1st November, 2020.
2) Term loan amounting H12,500 Lakhs from Federal Bank Limited is for capital expenditure towards setting up of new Hydrogen Peroxide Plant. Outstanding balance for this facility is H2,632 Lakhs (31st March 2023: H5,263 Lakhs). The borrowing carries interest @ 12 month T-bill rate (benchmark as published by RBI - to be reset every year) plus spread (fixed @ 0.94%) payable on monthly rest. The Term Loan is repayable in 19 quarterly instalments of H657.89 Lakhs each starting from 29th September, 2020.
3) Term Loan amounting H35,000 lakhs from Axis Bank Limited is for capital expenditure towards setting up of new Chloro Tolune and its Value Chain Plant and expansion of Chloro Polyvinly Chloride, the Company has drawn down H21,300 Lakhs during the year. The borrowing carries interest @ Repo Rate plus spread (fixed@ 1.65%) payable on monthly rest. The Term Loan is repayable in 24 quarterly installment of H1,458.33 Lakhs each starting from December 2025
4) Term loan amounting H19,000 lakhs from State Bank of India is for capital expenditure towards setting up of new Epichlorhydrin Plant. Outstanding balance for this facility is H13,195 Lakhs (31st March 2023: H17,095 Lakhs) . The borrowing carries interest at 6 month MCLR (Benchmark rate) plus spread of 0.10% (to be reset every half year) payable on monthly rest. The Term Loan is repayable in 20 quarterly instalments of H950.00 Lakhs each starting from 31st December. 2022.
5) Term loan amounting H28,475 lakhs from HDFC Bank Limited is for capital expenditure towards setting up of new Chloro Polyvinyl Chloride Plant and expansion of Caustic capacity with 36 MW Captive Power Plant. Outstanding balance for the facility is H24,204 Lakhs (31st March 2023: H28,475 Lakhs). The borrowing carries interest at 6 month MCLR (Benchmark rate) NIL Spread resets half yearly. The Term Loan is repayable in 20 quarterly instalments of H1,423.75 Lakhs each starting from September 2023.
6) The Term Loan facilities are secured by first pari passu mortgage charge of all immovable properties of the Company and first pari passu hypothecation charge over all the movable assets of the Company. However, the security creation for Term Loan of H35,000 Lakhs from Axis Bank Limited is under process as on 31st March 2024.
ii) The Company has executed an Indenture of Mortgage with Lenders of these term loans (Secured Parties) by creating mortgages on Immovable Properties of the Company by creating a charge by way of registered mortgage. According to the indenture, all the Secured Parties will share pari passu charge with first ranking and priority over the Immovable Properties of the Company, both present and future.
iii) Bank loans availed by the Company are subject to certain covenants relating to Interest Service Coverage Ratio, Current Ratio, Debt Service coverage Ratio, Total Outside Liabilities to Total Net Worth, Fixed Assets Coverage Ratio, Ratio of Total Term Liabilities to Net Worth and Return on Property, Plant and Equipments. The Company has complied with the covenants as per the terms of the loan agreements.
iv) 9,50,00,000 Redeemable Preference Shares (31 March 2023 : 15,00,00,000 ) of H10 each is cumulative and carry coupon/dividend rate of 8.00% p.a. with redeemable tenure of 20 Years from the date of allotment. The Company has the right to exercise the option of early redemption, considering which Company has redeemed H5,500 Lakhs (31st March 2023 : H6,091.99 Lakhs) during the year. Redemption is done at face value.
The Company has availed Working Capital Facility of H40,000 Lakhs (31st March 2023: H40,000 Lakhs) as sanctioned limit from consortium comprising of ICICI Bank Limited H9,000 Lakhs, Standard Chartered Bank H8,000 Lakhs and HDFC Bank Ltd. H8,000 Lakhs, State Bank of India H10,000 Lakhs and Kotak Mahindra Bank H5,000 Lakhs.
Rate of interest stipulated by ICICI Bank Limited is 6 Month MCLR Nil spread on the principal amount remains outstanding each day.
Rate of interest stipulated by Standard Chartered Bank is monthly MCLR .
Rate of interest stipulated by HDFC Bank Limited is as per prevailing 6 Month MCLR NIL Spread.
Rate of interest stipulated by Kotak Mahindra Bank is 6 month MCLR NIL Spread.
Rate of interest stipulated by State Bank of India is 6 month MCLR NIL Spread.
The Company has executed hypothication deed on 16th August 2023 creating first pari passu charge on the current asset of the Company in favor the consortium.
Bank loans availed by the Company are subject to certain covenants relating to Interest Service Coverage Ratio, Current Ratio, Debt Service Coverage Ratio, Total Outside Liabilities to Total Net Worth, Fixed Assets Coverage Ratio, Ratio of Total Term Liabilities to Net Worth and Return on Property, Plant and Equipments. The Company has complied with the covenants as per the terms of the loan agreements.
Trade Receivables are non interest bearing and generally have credit period of 30-90 days. Trade Receivable are secured to the extent of deposits received from the Customers.
Contract Liabilities includes Short Term Advance received from Customers towards Sale of Products.
26.4 Performance Obligation
The performance obligation is satisfied upon dispatch of Goods from the Company’s premises / delivery of Goods to the Customer in accordance with the terms of contract with Customer and payment is generally due within 30 to 90 days from date of dispatch/delivery of Goods.
26.5 Information about Major Customers
No single Customer represents 10% or more of the Company’s total Revenue during the year ended 31st March 2024 and 31st March 2023.
Nature of CSR Activities
(i) Eradicating hunger, poverty and mal nutrition, promoting health care including preventive health and sanitation.
(ii) Promoting education including special education and employment enhancing vocation skills in educational institutes.
(iii) Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.
36 GRATUITY AND OTHER EMPLOYMENT BENEFIT PLANS (a) Retirement Benefits
The Gratuity Plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the respective plans:
(b) Defined Contribution Plans
The Company makes Provident Fund contributions to Defined Contribution Plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll costs to fund the benefits. The Company has recognised Provident Fund contribution of H213.12 Lakhs (31st March 2023: H185.77 Lakhs) and contribution to labour welfare of H0.23 lakhs (31st March 2023: H0.21 Lakhs) as expense in Note 30 under the head ‘Contributions to Provident and Other Funds’
38 Segment Reporting
The Company’s Chief Operating Decision Maker (CODM) examines the Company’s performance from business and geographic perspective. In accordance with Ind AS-108 - Operating Segments, evaluation by the CODM and based on the nature of activities performed by the Company, which primarily relate to manufacturing of Chloro Alkali & its Derivatives, the Company does not operate in more than one business segment.
Analysis By Geographical Segment
Segment Revenue is analysed based on the location of Customers regardless of where the goods are produced. The following provides an analysis of the Sales by Geographical Markets.
* Income tax demand comprise demand from the Indian Income Tax authorities for payment of additional tax of H1,662.83 Lakhs (31 March 2023: H1,662.83 Lakhs), upon completion of their tax review for the assessment year 2016-17, 2017-18 and 2018-19. The tax demands are mainly on account of adjustment pertaining to 80 IA benefits claimed for captive power plant against sale of steam and power. Till FY 202223, the matter was pending before CIT(A) and Income Tax Appellate Tribunal (ITAT). During FY 2023-24, the Company has received favourable ITAT Order from Ahmedabad pertaining to AY 2016-17 and AY 2017-18 against which the Department has filed appeal before Gujarat High Court.
** Service tax demand comprise demand from Service tax Authorities for payment of additional tax of H53.69 Lakhs (31 March 2023: H53.69 Lakhs), upon completion of their tax review for the financial year 2012-13 and 2014-15. The tax demands are on account of service tax on sales commission and classification of coal. The matter is pending before Commissioner of Excise Service Tax Appellate Tribunal (CESTAT).
*** Customs Duty demand comprise demand from Custom Authorities for payment of additional duty of H621.83 Lakhs (31 March 2023: H621.83 Lakhs), upon completion of their tax review for the financial year 2012-13. The tax demands are on account of classification of coal. The matter is pending before Commissioner of Excise Service Tax Appellate Tribunal (CESTAT).
**** Other Legal demand comprise demand on account of civil litigation for payment to Aggrived party amounting to H234.16 Lakhs (31 March 2023: Nil) .The legal dispute is majorly on account of non fulfilment of obligation by creditors and corresponding deductions. The matter is pending before High Court.
The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be in favour of Company in the appellate process and no tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company’s financial position and results of operations.
B. Capital Commitment
The Estimated amount of Contract to be executed on Capital Account of H2,878.43 Lakhs (31st March 2023 H24,965.66 Lakhs) and not provided for (Net of Advances).
C. Other Commitment
The Company has imported capital good for the various expansion projects under the EPCG Scheme at nil rate of custom duty by undertaking obligation to export. Future outstanding export obligation under the scheme is H168.04 Lakhs (31st March 2023: H Nil Lakhs).
40 DISCLOSURES AS PER MSMED ACT, 2006
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26th August, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its Customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ‘Micro, Small and Medium Enterprises Development Act, 2006’ (‘the MSMED Act’).
Accordingly, the disclosure in respect of the amounts payable to such Enterprises as at 31st March, 2024 has been made in the Financial Statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any,that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any Supplier as at the Balance-Sheet date.
On the basis of information and records available with the Company, the above disclosures are made in respect of amount due to the Micro, Small and Medium Enterprises, which have been registered with the relevant competent Authorities. This has been relied upon by the Auditors.
41 Leases
The Company has lease contracts for office premise. Leases of office premise is having lease terms of 3 to 9 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. The Company is restricted from assigning and subleasing the leased assets and some contracts require the Company to maintain premises in good state. The lease contract include extension and termination options. The Company also has certain premises and assets with lease terms of 12 months or less. The Company applies the ‘short-term lease’ recognition exemptions for these leases.
Terms of Cancellation and Escalation
The Leases are cancellable by giving one month notice by either parties and these does not carries any escalation.
42.Capital Management
Capital includes only Equity attributable to the Equity Shareholders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its Capital Structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the Capital Structure, the Company may adjust the dividend payment to Shareholders, return on capital to Shareholders or issue new Shares. No changes were made in the objectives, policies or processes during the year ended 31 March 2024 and 31 March 2023. .
The Company monitors capital using a ratio of ‘Adjusted Net Debt’ to ‘Adjusted Equity’. For this purpose, adjusted net Debt is defined as Total Liabilities, comprising Interest-Bearing Loans and Borrowings, less Cash and Cash Equivalents. Adjusted Equity comprises all components of Equity.
43 Financial Instruments - Fair Values and Risk Management
The 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, Financial Liability and Equity Instrument are disclosed in Note 2 to the Financial Statements.
B. Measurement of Fair values and Sensitivity analysis Fair Value Hierarchy:
The fair value of the Financial Assets and Liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques:
(i) Level 1: quoted prices (unadjusted) in active markets for identical Assets or Liabilities.
(ii) 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).
(iii) Level 3: inputs for the Asset or Liability that are not based on observable market data (unobservable inputs).
Financial Instrument measured at Amortised Cost
The carrying amount of Financial Assets and Financial Liabilities measured at amortised cost in the Financial Statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Reconciliation of level 1 Fair Values
There have been no transfers between level 1, level 2 and level 3 during the year ended March 31, 2024. Financial Risk Management Framework
The Company’s Board of Directors have overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company manages market risk through treasury operations, which evaluates and exercises independent control over the entire process of market risk management. The finance team recommends risk management objectives and policies. The activities of this operations include management of cash resources, hedging of foreign currency exposure, credit control and ensuring compliance with market risk limits and policies.
The Company’s principal Financial Liabilities, other than Derivatives, comprises of Long Term and Short Term Borrowings, Trade and Other Payables, and Financial Liabilities. The main purpose of these Financial Liabilities is to finance the Company’s operations. The Company’s principal Financial Assets include Loans, Trade and other Receivables, Cash and Cash Equivalents, other Bank Balances and Other Financial Assets that derive directly from its Operations.
The Company has an effective risk management framework to monitor the risks controls in key business processes. In order to minimise any adverse effects on the bottom line, the Company takes various mitigation measures such as credit control, foreign exchange forward contracts to hedge foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.
The Company has exposure to the following risks arising from Financial Instruments
> Credit Risk ;
> Liquidity Risk ; and
> Market Risk
i. Credit Risk
Credit Risk is the risk that counter party will not meet its obligation leading to a financial loss. The Company is exposed to credit risk arising from its operating activities primarily from Trade Receivables and from financing activities primarily relating to parking of surplus funds as Deposits with Banks. The Company considers probability of default upon initial recognition of Assets and whether there has been a significant increase in credit risk on an ongoing basis throughout the reporting period.
The carrying amount of following Financial Assets represents the maximum credit exposure:
Financial Instruments and Cash Deposit:
Credit Risk from Balances with Banks and Financial Institutions is managed by the Company’s Treasury Department. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.
Trade Receivables
The Sales Department 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, and in some cases bank references. Sale limits are established for each Customer and reviewed periodically. Any sales exceeding those limits requires further approval.
Trade Receivables of the Company are typically unsecured ,except to the extent of the security deposits received from the Customers or Financial Guarantees provided by the market organizers in the business. Credit risk is managed through credit approvals and periodic monitoring of the creditworthiness of Customers to which Company grants credit terms in the normal course of business. The Company performs ongoing credit evaluations of its Customers’ financial condition and monitors the creditworthiness of its Customers to which it grants credit terms in the normal course of business. The allowance for impairment of Trade Receivables is created to the extent and as and when required, based upon the expected collectability of Accounts Receivables.The Company evaluates the concentration of risk with respect to
Trade Receivables as low, as its Customers are located in several jurisdictions and industries and operate in largely independent markets.
The Company measures the expected credit loss of Trade Receivables and Loan from individual Customers based on historical trend, industry practices and the business environment in which the Entity operates. Loss rates are based on actual credit loss experience and past trends.
Management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of Customer Credit Risk, including underlying Customers’ Credit Ratings if they are available.
Management estimates that the amount of provision of H Nil (31st March 2023 : NIL) is appropriate
ii. Liquidity Risk
Liquidity Risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Exposure to Liquidity Risk
The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and Actual Cash flows and matching the maturity profiles of the Financial Assets and Liabilities. The table below summarises the remaining contractual maturities of Financial Liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.
Excessive Risk Concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular Industry
In order to avoid excessive concentrations of risk, the policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels
iii. Market Risk
Market Risk is the risk that the fair value of future Cash Flows of a Financial Instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Currency Risk, Interest Rate Risk, and Other Price Risk such as Equity Price Risk. Financial Instruments affected by market risk include Loans and Borrowings, Deposits, FVTOCI and Amortised Cost Investments and Derivative Financial Instruments.
Foreign Currency Risk
Foreign Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).
The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of actual sales and purchases and 12-month period for foreign currency loans. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. .
Exposure to Currency Risk
The Currency profile of Financial Assets and Financial Liabilities as at 31st March, 2024 and 31st March , 2023 are as below:
Sensitivity Analysis
A reasonably possible strengthening (weakening) of the Indian Rupee against Foreign Currency at March 31 would have affected the measurement of financial instruments denominated in foreign currency and affected Equity and Profit or Loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
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’s Long-Term Debt obligations with floating interest rates. The Company manages its Interest Rate Risk by having balanced portfolio of fixed and variable rate Loans and Borrowings.
Exposure to Interest Rate Risk
The Company’s Interest Rate Risk arises from Borrowings obligations. Borrowings is exposed to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing Financial Instruments as reported to the management of the Company is as follows.
45 Events occurred after the Balance Sheet date
The Company evaluates events and transactions that occur subsequent to the Balance Sheet date but prior to approval of Financial Statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the Financial Statements. As of 22nd April 2024 there were no material subsequent events to be recognized or reported that are not already disclosed.
46.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 under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) The Company do not have any transactions or balance with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) 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:
(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.
(vi) 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:
(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.
(vii) The Company have not 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
47 The Company uses an 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 accounting software, except that audit trail feature is not enabled for certain direct changes to the data for users with the certain privileged access rights to the SAP application and the underlying HANA database. Further no instance of audit trail feature being tampered which was noted in respect of the accounting software.
Presently, the log has been activated at the application and the privileged access to HANA database continues to be restricted to limited set of users who necessarily require this access for maintenance and administration of the database.
48 Previous years figures have been regrouped and reclassified wherever necessary to make them comparable with those of the current year.
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