Note (c) - Terms/Rights attached to equity shares The Company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share.
Note (d) - There was no issue of shares alloted as fully paid up pursuant to Contract(s) without payment being received in cash or buyback or bonus shares in the preceeding five years
Note (e) - Dividends proposed by the Board of Directors, if any is subject to approval of the Shareholders in the Annual General Meeting, except in case of interim Dividend.
Note (f) - In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive 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.
Note (g): The Company has not converted any securities in to equity shares
Note (h): The call unpaid is Nil
Note (i): Forfeited shares is Nil
21.03: Other Notes
a. In the opinion of the management, assets other than property, plant and equipment and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.
b. The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period's financial statements on such reconciliation/adjustments.
21.04: Relationship with Struck off Companies:
The Company has not entered into any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.
a. Defined Benefit plan :
Gratuity:
In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity plan”) covering eligible employees. The Gratuity plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by Life Insurance Corporation of India under the respective scheme.
(figures in bracket represent figures for the previous year)
Note 1 &2 : During the previous year two subsidiary companies, viz., ATL Textile Processors Ltd and Newline Buildtech P Ltd have gone under the process of Merger through NCLT route. The scheme of Amalgamation was approved by the Members of the Company in the EGM held on 19.01.2024. The company has filed petition with the Honb'le NCLT Chennai Bench seeking approval of the Scheme.
Note 3: During the financial year 2023-24, the amount outstanding with the wholly owned subsidiary company, Manoj Yarn Processors, was written off consequent to the subsidiary company having applied for name strike off process with ROC. The Diminution in value of investment have been fully provided for in earlier year.
Figures in bracket represent figures for the previous year.
b. The Company has taken premise under cancellable operating lease. These lease agreement is normally renewed on expiry. The rental expenditure is accounted for in statement of Profit and Loss of the Company in accordance with Ind AS 17 on lease transactions.
21.12: Capital Management Note:
Capital Management Risk:
The Company's aim to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders.
The capital structure of the Company is based on management's judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manages the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Company policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The key objective of the Company's capital management is to ensure that it maintain a stable capital structure with the focus on total equity to uphold investor, creditor and customer confidence and to ensure future developments of the business. The company is focused on maintaining a strong equity base to ensure independence, security as well as finance flexibility for potential future borrowings, if required, without impacting the risk profile of the Company.
21.13 Disclosure with regard to liquidity risk showing details of contractual cash outflow, Interest rate sensitivity, fair value matrix as per Ind AS
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. 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, and cash and cash equivalents that derive directly from its operations.
The Company is hardly much exposed to market risk, interest rate risk, credit risk and liquidity risk. The Company’s risk management is carried out by a corporate finance team under the policies approved by the Board of Directors under the broad parameters;
i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate due to change in market price. The value of financial instruments may change as result of change in interest rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including payable, deposits, loans & borrowings. The Company management evaluates and exercise control over process of market risk management. The Board recommends risk management objective and policies which includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies The Company assumes that 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 31 March 2024 and 31 March 2023.
ii) 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 interest rates.
The Company manages its interest rate risk by having a portfolio of loans and borrowings. In order to optimize the Company’s position with regards to interest income and interest expense, the Company performs a comprehensive corporate interest rate risk by using different type of economic product of floating rate of borrowings in its total portfolio.
Interest rate sensitivity
In view of any inadequate expose to disruptive borrowings, there is hardly any possible change in interest rates on that portion of borrowings. With all other variables held constant, the companies profit before tax is hardly affected through the impact on interest rate borrowings
iii) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. Accordingly in terms of Ind AS 109, the company does not foresee any expected credit loss.
The company has not disclosed the fair value of inventories, trade receivables, cash and cash equivalents, and trade payables because their carrying amounts are a reasonable approximation of fair value.
The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has investment with a Mutual Fund which has a good track record and reputation and hence there is hardly any risk to be reported. The Company assumes that 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 31 March 2024 and 31 March 2023.
Trade receivables and other financial assets
Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial assets are security deposits. Credit risk has been managed by the Company through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company does not foresee any expected credit loss model to assess the impairment loss or gain. The company uses a provision matrix and forward looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. There are no significant credit risks pertaining to financial assets.
iv) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, company's finance team maintains flexibility in funding by maintaining availability under committed credit lines.
21.14 There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
21.15 There is no any immovable property having title deeds not held in the name of the company.
21.16 Disclosure on PPE & Intangible Assets
(1) There is no restriction on the title of Property, Plant and Equipment and Property, Plant & Equipment was not pledged against any liabilities.
(2) Company has not constructed any item in Property, Plant & equipment.
(3) Company has no contractual commitments for the acquisition of Property, Plant & Equipment.
(4) Company has no Impairment loss during the year for Property, Plant & Equipment.
(5) Company has not revalued any items of Property, Plant & Equipment's during the Year
(6) Carrying amount of Property, Plant & Equipment are not retired from active use and not held for disposal.
(7) The existence and carrying amounts of intangible assets whose title is not restricted and the carrying amounts of intangible assets are not pledged as security for liabilities
21.17 The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties during the year under review.
21.18 The company has not borrowed any money from banks or financial institutions on the security of current assets during the year under review and hence disclosure requirement in this regard does not apply to the company.
21.19 The company has not been declared willful defaulter by any bank or financial institution or government or any government authority or any other lender.
21.20 The company does not have any charge or satisfaction yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.
21.21 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
21.22 The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (intermediaries) with the understanding that the intermediary shall:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
21.23 The company has not received any funds from any person(s) or entity(is), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
21.24 There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
21.25 Company shall not be required to comply with Corporate Social Responsibility (CSR) as provisions of section 135 of the Companies Act, 2013 is not applicable.
21.26 The company has not traded or invested in crypto currency or virtual currency during the financial year.
21.27 The Company has not declared any dividend to shareholders during the year.
21.28 The figures have been rounded off to the nearest rupees in Lakhs in compliance with Schedule III to Companies Act, 2013.
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