Commitments and contingencies:
* The company has received Show cause notice on 01/03/2024 Dt. 18/03/2023 from commissioner of Custom, Nhava Sheva this is subsequent to the inquiry held during 25/03/2022 & 26/03/2022 upon intelligence developed by DRI Ahmedabad therein demand for differential duty of ' 12,35,86,901/- has been calculated. Further this is subject to interest & penalty thereon.
The same has been classified and disclosed as contingent liability based upon legal expert opinion & company is confident about contesting this Show cause notice without any material payment towards demand for differential duty of ' 12,35,86,901/-.
* The Income Tax Authority had conducted search activity at the company's corporate office and manufacturing unit. During the search the company extended full cooperation and provided the required details, clarification, and documents as of the date of issuance of these financial results. The company has not received any written communication from the authority regarding the said search therefore its financial impact on the results is not ascertainable.
i) In respect of the year ended March 31, 2024, the Directors recommed that a dividend of ' 0.15 per share be paid on fully
paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not
been included as liability in these financial statements.
ii) The Board of Directors of the Company at its meeting held on 12th December, 2022 approved coversion and allotment of 24,91,631 partly paid up equity shares face value ' 0.50/- into fully paid-up equity shares of face value ' 1/- each against 56,70,303 partly paid-up equity shares (originally allotted as party paid—up equity shares on 15th March, 2022) in pursuant to First and Final Call Money Notice dated Saturday 29th October, 2022. The Company has received ' 10,21,56,871/-(Rupees Ten Crores Twenty One Lakhs Fifty Six Thousand Eight Hundred Seventy One only) out of which an amount of ' 12,45,815.5/- transfered to share capital and ' 10,09,1 1,055.5/- of Share Premium to Securities Premium.
iii) The Board of Directors of the Company at its meeting held on 31st March, 2023 approved coversion and allotment of
18,20,269 partly paid up equity shares face value ' 0.50/- into fully paid-up equity shares of face value ' 1/- each against
31,78,672 partly paid-up equity shares (originally allotted as party paid—up equity shares on 15th March, 2022) in pursuant to Final Call Money Cum Forfeiture Notice dated Monday 13th February, 2023. The Company has received ' 7,46,31,029/-(Rupees Seven Crores Forty Six Lakhs Thirty-One Thousand Twenty Nine only) out of which an amount of ' 9,10,134.5/-transfered to share capital and ' 7,37,20,894.5/- of Share Premium to Securities Premium.
iv) The Board of Directors of the Company at its meeting held on 31st March, 2023 approved forfeiture of 13,58,403 Partly paid-up Rights Equity shares, on which the holders thereof have failed to pay the balance call money of ' 41/- per share in pursuant to the Final Call Money-Cum-Forfeiture Notice dated Monday 13th February, 2023.
v) The Company has converted and allotted 18,20,269 partly paid equity shares into fully paid equity shares on 31st March, 2023. The Company has forfeited 13,58,403 partly paid equity shares on 31st March, 2023, to those shareholders who have failed to pay the balance call money.
Nature and Description
i) Securities premium:- Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
ii) General reserve:- General Reserves are free reserves of the Company which are kept aside out of Company's profits to meet the future requirements as and when they arise. The Company had transferred a portion of the profit after tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
Defined benefit plans:
In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuityplan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained liability to Life Insurance Corporation of India by whom the plan assets are maintained.
These plans typically expose the Company to actuarial risks such as: investment risk, inherent interest rate risk, longevityrisk and salary risk
Investment Risk: The present value of the defined benefit plan liability (denominated in Indian Rupee) iscalculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. Currently for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.
Interest Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary Risk: Higher than expected increases in salary will increase the defined benefit obligation.
The present value of the defined benefit obligation, and the related current service cost, were measured using the projected unit credit method.
30 Earnings per share:
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity Shares.The following table sets out the computation of basic and diluted earnings per share:
Note: During the Financial Year 2022-23, the Company has alloted 5670303 Right Issue Shares of Face Value of ' 1 each at a price 82 per Right Equity Shares to the eligible equity share holders as on record date. Total Amount received from right issue is ' 17,67,87,900/-, amount transfer to Share Capital is 21,55,950/- and premium on issue of of ' 17,46,31,950/-. The Board of Directors of the Company at its meeting held on 31st March, 2023 approved forfeiture of 13,58,403 Partly paid-up Rights Equity shares, on which the holders thereof have failed to pay the balance call money of ' 41/- per share in pursuant to the Final Call Money-Cum-Forfeiture Notice dated Monday 13th February, 2023.
31 Financial risk management objectives and policies :
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company's operations. The Company's principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.
a) 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 two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.
The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions. The below assumption has been made in calculating the sensitivity analysis: The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2024 and March 31, 2023.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to ' 3.68 lakhs. The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:
35. Segment Reporting (Ind AS 108):
The Group, based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Group's performance and allocates resources based on the analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting policies adopted for segment reporting are in line with the accounting policies of the Group. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market/fair value factors. Revenue, expenses, assets and liabilities which relate to the Group as a whole and not allocable to segments on reasonable basis have been included under "unallocated revenue /expenses /assets / liabilities."
Segment Information
Company is engaged in the manufacturing and selling of Electrical Vehicles, its components & related services,Trading of Home appliances, White Goods and Digital business process support services. Based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company's performance and allocates resources based on the analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.
Reporting for business segment is on the following basis:
Revenue relating to individual segment is recorded in accordance with accounting policies followed by the Company. All expenditure, which is directly attributable to a project, is charged to the project and included in the respective segment to which the project related. The costs which cannot be reasonably attributable to any project and are in the nature of general administrative overheads are shown as unallocable expenses. The accounting policies of the reportable segments are the same as the company's accounting policies. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors' salaries, share of profit of joint ventures, other income, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance. For the purpose of monitoring segment performance and allocating resources between segments: Property, plant and equipments employed in the specific project are allocated to the segment to which the project relates. The depreciation on the corresponding assets is charged to respective segments. All other assets are allocated to reportable segments other than investments in associates, investments in joint ventures, other investments, loans, other financial assets and current and deferred tax assets. All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, current and deferred tax liabilities.
36. ADDITIONAL INFORMATION DETAILS:0 Undisclosed income
The Company shall give details of any transaction 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), unless there is immunity for disclosure under any scheme and shall also state whether the previously unrecorded income and related assets have been properly recorded in the books of account during the year.
0 Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the company and the company has spent ' 18.98 lakhs.
0 Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
0 Capital Management (Ind AS 1)
The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working capital requirements and deployment of surplus funds into various investment options. The Company have debts and meets its capital requirement through debt, equity and internal accruals. The management of the Company reviews the capital structure of the Company on regular basis. As part of this review, the Board considers the cost of capital and the risks associated with the movement in the working capital.
37. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
38. The Financial Statements were approved by the Board of Directors on 25.04.2024.
39. Previous year's figures have been regrouped/ reclassified to confirm to current year's presentation. As per our Report of even date.
# The decrease in the Debt Service Coverage Ratio is attributed to an increase in long-term debt and the expansion of our cash credit facility.
$ More lenient credit terms extended toSuper stockist & Distributors to drive sales growth, resulting in a temporary increase in receivables but potentially higher future revenue.
@ Raising debt for working capital has enabled timely and faster payments to suppliers.
% Increased investments in working capital to support future growth, temporarily reducing the turnover ratio but setting up for long-term gains.
& More effective use of capital to generate higher returns, reflecting successful strategic investments and operational improvements.
A Significant improvement in operational efficiency, leading to higher operating profits and better control over operating expenses.
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