15.2 Terms and rights
The company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
15.3 Holding company share holding details:-
"Out of the 29,03,890 Equity shares, 16,64,354 Equity Shares are held by the holding company.
(Previous year out of 29,03,890 Equity shares, 16,64,361 Equity Shares are held by the holding company). ”
Note: Late Kamalini Bahubali who expired on 3rd May 2022 was holding 5390 shares, the shares are currently undergoing transmission. They have been debited from her Demat account and credited in the name of Principle Executor of Probate. Further, these shares are presently in the process of transmission from Principle Executor to the respective legal heirs as stipulated in the Probate.
15.6 The Company has not issued any bonus shares, any shares for consideration other than cash and shares bought back during the period of five years immediately preceding the date of the Balance Sheet.
Description of nature and purpose of each reserve :
Capital Redemption reserve
Capital redemption reserve created at the time of redemption of Preference Shares.
Securities Premium
Securities premium is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act.
General reserve
General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
Disclosures under Micro, Small and Medium Enterprises Developement Act, 2006
Company has sent letters to suppliers to confirm whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006 as well as they have filed required memorandum with the prescribed authorities. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and has been determined to the extent such parties have been identified on the basis of the information available with the company and have been relied upon by the auditors.
During the last year ended March 2023, The Company had sold one of its immovable properties and the related one time gain amounting to Rs. 199.96 Lakhs was recorded under the other income.
Other income for the quarter ended and year ended 31st March 2024 includes lncome on fair valuation of the Financial Assets, amounting to Rs. 10.30 Lakhs and Rs. 93.64 Lakhs [previous year quarter and year ended Rs.(11.55) lakhs and Rs. (4.48) lakhs] respectively on account of fair valuation as on that date.
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31 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) Rs. in Lakhs
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Particulars
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As at March 31, 2024
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As at March 31, 2023
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a) Contingent liability with respect to Mumbai Port Trust (MbPT) demand on account of lease rentals. The Company has filed a Suit for injunction before the Honhle City Civil Court restraining MbPT from taking any action against the Company and to withdraw the said Notice/Letter. According to the legal advice, the order is unreasonable and unwarranted. The MbPT vide letter dated 03.11.20, called for certain documents which Company has provided vide letter dated 09.12.20.
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240.81
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223.12
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b) GST Demand Order under the Section 73(9) of the Haryana Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 was received on 01 Jan 2024 for the payment of GST liability including interest and penalty. We had made the submissions on 09/11/2023, 17/11/2023 and 06/12/2023 post the Original Show Cause notice of GST was received in the Form DRC-01 for the year 2017-18 (July 17 to March 18) under the Section 73 of HGST/ CGST Act, 2017.
The Demand under the latest aforesaid order for the period July 2017 to March 2018 contains GST of Rs. 54.22 Lakhs, Penalty of Rs. 56.16 Lakhs and interest of Rs. 5.92 aggregating to Rs. 116.31 Lakhs GST demand summary- Amounts in full Rupees Tax - Interest Penalty Total
1) CGST Rs. 9,899/- CGST Rs. 10,252/- CGST Rs. 25,990/- CGST Rs. 46,140/-
2) SGST Rs. 9,899/- SGST Rs. 10,252/- SGST Rs. 25,990/- SGST Rs. 46,140/-
3) IGST Rs. 54,02,840/- IGST Rs. 55,95,270/- IGST Rs. 5,40,284/- IGST Rs. 1,15,38,394/-TOTAL 1,16,30,674
Items 1) and 2) are towards the difference in credit notes in GSTR 1, GSTR 3B, GSTR 9 and General Penalty
Item 3) is towards ITC short appearing in Form GSTR 2A and SEZ customers related endorsement from the Specified Officer."
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116.31
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The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
Level 1: hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
FINANCIAL RISK MANAGEMENT
1 Market risk
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.
a Interest rate risk :
The company has investment in fixed deposits. However interest income from fixed deposits is a residuary income and will not affect the significant cash flow of the company.
b Foreign currency risk:
Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in foreign expense rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency.
2 Credit risk
"Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
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. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered."
Financial Assets are considered to be of good quality and there is no significant increase in credit risk.
In addition to above the company makes the specific provision for the receivables which are outstanding for more than 1 year and are considered doubtful/disputed.
3 Liquidity risk :
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset.
36. Capital Management
"For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
As at March 31, 2024, the Company has one class of equity shares which is in the nature equity. Consequent to such capital structure, there are no externally imposed capital requirements."
37. Other disclosures
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against The Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(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 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 do not have any such transaction which is not recorded in the books of accounts and 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)
viii) The company holds all the title deeds of immovable property in its name.
ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.
x) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.
38. Event after reporting Period Proposed Dividend
Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Director for issue are not recognised as a liability at the balance sheet date.
The Board of Director recommended final dividend of Rs. 1 per equity share for the financial year ended on 31st March, 2024. The payment is subject to the approval of shareholder in the ensuing Annual General Meeting of the Company. (Previous year Rs. 1 per equity share).
The total estimated equity dividend would result in total cash outflow of Rs. 29.04 Lakhs (Previous year Rs. 29.04 Lakhs).
39. Ms. Kajal Sagar Rakholiya, earstwhile Company Secretary and Compliance Officer had tendered her resignation, with effect from the closure of the business hours of April 30, 2024. The company is in the process of the appointment of the Company Secretary and Compliance Officer.
40. The Financial Statements were authorized for issue in accordence with a resolution passed by the Board of Directors on 09 May 2024. The Financial Statements as approved by the Board of Directors are subject to final approval by it’s shareholders.
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