(c) Reconciliation of number of shares outstanding as on beginning and closing of the year.
The company has neither issued nor bought back any of its shares during the year and also in previous year and balance of share at the end of the year is the same as at the beginning of the year.
(d) Details of Promoter’s Shareholding:
i) Vehicle Loan amounting to Rs 34.25 Lacs (Previous Year 48.40 Lacs) repayable in monthly installments, last installment due in 15.03.2028 Rate of interest as at year end 8.95 % and secured against specific vehicles.
ii) ECGL from Axis Bank, Union Bank of India & Yes Bank amounting to Rs. NIL (Previous Year Rs 57.78 Lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa and Patna Unit on Pari-passu basis.
iii) Unsecured Loan amounting to Rs 535.96 lacs (Previous Year Rs 1004.04 lacs) represents loans from related parties and generally of long term nature however no repayment schedule is specified.
i) Cash Credit facility from Axis Bank & Yes Bank amounting to Rs 1530.41 Lacs (Previous year Rs. 1879.45 Lacs) secured against first charge on Current Assets of Silvassa, Patna and Nellore Units on Pari-passu basis.
ii) Packing Credit Loan and Export Bill Discounting from Yes Bank amounting to Rs. 100.10 Lacs (Previous Year Rs 650.85 Lacs) First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.
iii) ECGL from Union Bank of India & Yes Bank amounting to Rs. NIL (Previous Year Rs.161.78 Lacs) First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.
iv) Term Loan from Axis Bank amounting to Rs. 121.64 Lacs (Previous Year Rs. NIL) secured against First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.
The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.
A description of methods used for sensitivity analysis and its Limitations:
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the inter-relationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the like hood of change in any parameter and the extent of the change if any.
Note 37 EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have not recommended dividend for the financial year 2024-25. There are no other subsequent adjusting events noted by the management that could have a potential impact on the financial statements.
Note 38 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENTA. Accounting Classifications and Fair Values
Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
B. Measurement at Fair Values
Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.
The Fair Value of the Investment Property situated at Kashi Mira approximates to Rs.12 Cr as at 31/03/2025
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments
(1) Credit Risk
(2) Liquidity Risk
(3) Market Risk
(1) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.
The carrying amount of following financial assets represents the maximum credit exposure:
Trade receivables and loans and advances.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring.
The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances.
Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals.
Cash and cash equivalents and other Bank balances
The Company held cash and cash equivalents and other bank balances of Rs 29.60 lacs as on 31st March 2025 (Previous year Rs 1257 lacs). The cash and cash equivalents are held with bank counterparties with good credit ratings.
(2) 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.
As of 31st March, 2025 and 31st March,2024 the Company had unutilized credit limits from banks of Rs 10.96 Cr and Rs 1.94 Cr respectively.
Maturity profile of financial liabilities
The following are 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.
The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity.
(3) Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.
Currency risk
The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee.
Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)
Sensitivity analysis
A reasonably possible strengthening (weakening) of the foreign currency against the Indian Rupee at 31st March would have affected the measurement of financial instruments denominated in foreign currencies 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 can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 25% in interest rates (MCLR) at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
The risk estimates provided assume a parallel shift of 25% interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
Capital Management
For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The Company monitors capital using debt to equity ratio.
Note 40
Company has not granted any Loans and Advances in the nature of Loans to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person during the year.
Note 41
There have been no proceedings initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
Note 42
Company has not been declared as Willful Defaulter by any of the Bank.
Note 43
Company has not entered into transactions with any of the Struck Off Companies during the financial year.
Company’s performance obligations are summarized below:
Sale of products:
The performance obligation is satisfied upon delivery of the product and the general Credit Term is allowed between 21 to 30 days from delivery and are non-interest bearing.
Note No. 47
During the year there has been no satisfaction of charges which were registered with the Registrar of the companies (ROC).
Further explanations for the differences as marked out against the specific column number (from 1 to 2).
1 Vendors incorrectly grouped under Customers to enabling rising of Credit notes, Rectified later on.
2 Bad Debts w/off post providing the submission to the bank.
Note 49
To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 54
Under Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 16th June 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, which were curated on the basis of the confirmation receive from the vendors, the details of outstanding dues to the Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 have been reported in Note No. 22.
Company intends to contribute the same to the PM Care funds or similar funds as permitted under section 135 of the Companies Act, 2013 on or before 30th September, 2025.
Note 56 STANDARDS ISSUED, BUT NOT YET APPLICABLE
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from 1 April, 2025.
Note 57 Previous Year figures have been regrouped where ever necessary.
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