28. In compliance with Ministry of Corporate Affairs Notification w.r.t amendments in Schedule III to the Companies Act, 2013, figure for comparative previous periods has been regrouped, reclassified and rearranged wherever necessary for better presentation and to make them comparable with those of current financial year.
Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.
29. The Balance of current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business and that the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amount reasonably necessary.
30. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation from respective parties.
31. The company has received information from the Suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006. Hence, disclosures, if any, relating to amounts unpaid as at the balance sheet date together with interest paid or payable as per the requirement under the said Act, have been made in the financial statements.
36. The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
37. All the figures in Financial Statements are presented in Indian Rupees rounded off to nearest thousands except for Earnings Per Share.
38. There is change in company status from Private Limited company to Limited Company which is effective from 09th March, 2024.
39. The Company has issued 36,90,176 Bonus shares in the ratio of 2:1 on 01st March 2024 by utilizing General Reserves of the Company.
40. The Equity Shares of the Company were listed on the SME (Smal and Medium Enterprise) Platform of National Stock Exchange (“NSE”) on 6th August 2024 for issues of 19,78,800 Shares at 105/- Rs per share. (Rs. 10/- Face Value & Security Premium of Rs. 95/- per share)
42. Accounting Ratios have been annexed as Annexure-D to the Financial Statements.
43. Events Occurring After Balance Sheet Date:
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for the recognition and/or reporting of any of these events and transactions in the financial statements.
46. Financial Risk Management Objectives & Policies:
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Companies financial risk management policy is set by the Managing Board. The Company’s principal financial liabilities, other than derivatives, comprise borrowings and trade & other Payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s principal Financial Assets include Property Plant and Equipment’s, Trade and Other Receivables and Cash & Short-Term deposits that derive directly from its operations. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.
The Company has exposure to the following risks arising from financial instruments: -
(i) Currency Risk
(ii) Credit Risk and
(iii) Liquidity Risk
Risk Management Framework
The Company’s activities expose it to variety of Financial Risks, including Currency Risk, Credit Risk and Liquidity Risk. The Company’s primary risk management is to minimize potential adverse effects of risk on its Financial Performance. The Companies risk Management Assessment Policies and Processes are established to identify and analyze the risk faced by the Company, to set Appropriate Risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Companies Activity. The Board of Directors and Audit Committee are responsible for overseeing these policies and processes.
In order to minimize any adverse effects on the Financial Performance of the Company, Derivative Financial Instruments, such as Foreign Exchange Forward Contracts are entered to hedge certain Foreign Currency Exposures. Derivatives are used exclusively for hedging purposes and not as trading/speculative instruments.
(i) Currency Risk: -
Currency 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. The value of a financial instrument may change as a result of changes in the foreign currency exchange rates that affect market risk sensitive instruments. Currency risk is attributable to all Currency risk sensitive financial instruments including Foreign Currency Receivables and Payables. The objective of Currency risk management is to manage and control currency risk exposure within acceptable parameters, while optimizing the returns.
The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss of the Company, where any transactions has more than one currency or where Assets/ Liabilities are denominated in a currency other than the functional currency of the entity.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risk primarily relates to fluctuations in U.S. dollar, GBP and Euro, against the respective functional currencies (Rupees) of Bulkcorp International Limited.
(ii) Credit Risk
Credit risk arises from the possibility that a customer or counter party may not be able to settle their contractual obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring and the asset at the reporting date with the risk of default as the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i. Actual or expected significant adverse changes in business.
ii. Actual or expected significant changes in the operating results of the counterparty.
iii. Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to mere its obligation.
iv. Significant increase in credit risk on other financial instruments of the same counterparty.
v. Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.
(iii) Liquidity Risk
Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company manages its liquidity risk by ensuring, 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 risk to the Company’s reputation. The Companies treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companies net liquidity position through rolling forecast on the basis of expected cash flows.
The Company has obtained fund and non-fund based working capital lines from Banks and Financial Institutions. The Company also constantly monitors various funding options available in the debt and capital markets with a view to maintaining financial flexibility.
47. Disclosure of Initial Public Offer:
The Company in its Letter of Offer dated 18th January, 2024 (NSDL) and 19th January, 2024 (CDSL) offered 19,78,800 shares by way of Initial Public Offer at a face value of Rs 10 each and at a price of Rs 105 per equity share (Including premium of Rs 95 per Equity Share).
The issue opened on 30th July 2024 and closed on 01st August 2024 with a subscription of 264.9 times of the issue size. Subsequently, the Company allotted 19,78,800 shares on 05th August 2024 and the listing of the shares has been on 06th August 2024.
48. Additional Regulatory Information
(i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder during the year ended March 31,2025 and March 31,2024.
(ii) Willful defaulter
The Company have not been declared willful defaulter by any bank or financial institution or government or any government authority during the year ended March 31,2025 and March 31, 2024.
(iii) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956 during the year ended March 31,2025 and March 31,2024.
(iv) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013 during the year ended March 31,2025 and March 31,2024.
(v) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
(vi) Utilization of borrowed funds and share premium
The Company has 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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or
b. provides any guarantee, security or the like to or on behalf of the ultimate beneficiaries
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 lends or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b. provides any guarantee, security or the like on behalf of the ultimate beneficiaries
(vii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(viii) Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(ix) Registration of Charges
There are no charges or satisfaction of charges, which are yet to be registered with Registrar of Companies beyond the statutory period during the year ended March 31, 2025 and March 31,2024.
(x) There are no loans or advances in the nature of loans are granted to promoters, directors, KMPs and related parties (as defined under Companies Act, 2013) either severally or jointly with any other person during the year ended March 31,2025 and March 31, 2024.
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