(c) Term/Right attached to Equity Shares:
The Company has only one class of shares referred to as equity share having a face value of Rs.10/- per share ranking paripassu. The holders of equity shares are entitled to one vote per share.
(i) Secured Term Loans
(a) Rupee Term Loan of Rs. 2523.30 Lacs from State financial institution, Rs. 4949.63 Lacs & Rs. 3700 Lacs from two banks are secured by way of joint first charge ranking pari-passu of all immovable properties (by way of deposit of Title Deeds of Lease Hold Land), both present and future and over movable assets (save and except current assets) including its movable plant and machinery, machinery spares, tools and accessories, non trade receivables and other movables, both present and future. These loans have also been guaranteed by Managing Director and one other Director of the Company. These Loans are repayable in structured instalments over a period of 6-8 years.
(b) GECL / ECLGS Term Loan of Rs. 23.48 Lacs from three banks are Secured by way of second ranking charge of hypothecation of current assets and second charge on company’s entire fixed assets at Udaipur on pari passu basis with other working capital lenders. These Loans are repayable in 3 years and will get fully repaid during the year 2025-26.
(c) Rupee Term Loan of Rs. 2285.67 Lacs is secured by way of mortgage over freehold land and subservient charge on movable fixed assets of the company. These loans have also been guaranteed by Managing Director and one other Director of the Company and are repayable over a period of
6 years in 24 quarterly installments commencing from 14th December 2024.
(d) Rupee Term Loan of Rs. 1000 Lacs from a NBFC is (outstanding 979.17 as on 31st march 25) secured by way of charge over movable fixed assets of the company on pari passu basis alongwith Industrial Property situated at Udaipur. These loans have also been guaranteed by Managing Director and one other Director of the Company. This loan is repayable in 48 monthly installments commencing from 5th March 2025.
(e) One Vehicles Loans aggregating to Rs. 78.53 Lacs are secured by way of hypothecation of the respective vehicles and are repayable over period of 3-4 years
(f) Deferred Payment Credits aggregating to Rs.688.00 Lacs, are secured by way of hypothecation of the Solar Power Plant of the capacity 2059 KW installed in the year 2022-23 and 1541 KW installed in two parts during the year at the plant at Udaipur. These plant have been supplied and commissioned by the same party which has financed these plants. These loan are repayable in 36 monthly & 60 monthly equal installments beginning from May 22 for the 2059 KW and September 23 for the first part and February 24 for the second part of 1541 KW respectively.
(a) Borrowings of Rs. 4467.63 Lacs (P.Y. Rs. 2308.70 Lacs ) from SBI, IDBI Bank Ltd. and ICICI Bank Ltd. for working capital are secured on pari passu basis by way of joint hypothecation first charge on entire inventories, trade receivables and other current assets present & future and secured by second pari passu charge on fixed assets of the Company. Such borrowings are also guaranteed by the Managing Director and one other Director of the Company.
The fair value of financial assets and liabilities are included at the amount at which instruments could be exchanged in a current transaction between the willing parties. The following methods and assumptions were used to estimate the fair value:
The fair values of cash and cash equivalents, other bank balances, trade receivables, loans, other financial assets, short term borrowings, trade payables, and other financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. Company has adopted Effective Interest Rate Method (EIR) for fair valuation of long term borrowings.
NOTE NO .37 Financial Risk Management Objectives and Policies:
The Company’s activities are exposed to a variety of Financial Risk from its Operations. The key financial risk include Market risk, Credit risk and Liquidity risk.
(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 mainly three types of risk:, Foreign currency risk, Interest rate risk and other price risk such as Equity price risk and Commodity Price risk.
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.
(d) Interest Rate Risk and Sensitivity:
The Company is having fixed rate long term borrowings which are not exposed to any risk of changes in market interest rates.
(e) Commodity price risk:
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material and therefore, require a continuous supply of certain raw materials. To mitigate the price risk, the company has an approved supplier base to get the best competitive prices for the commodities and to manage the cost without any compromise on quality.
(f) Equity price risk:
The Company’s exposure to equity instruments price risk arises from investments held by the company and classified in the balance sheet at fair value through OCI. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the company, fluctuation in their prices are considered acceptable and do not warrant any management estimation.
(g) Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).
Trade Receivables:
Customer credit risk is managed based on company’s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss and the same, if any, is provided as per its respective customer’s credit risk as on the reporting date
(h) Deposits with Bank:
The deposits with banks constitute mostly the investment made by the company against bank guarantee and letter of credits and are generally not exposed to credit risk.
(i) Liquidity Risk:
Liquidity risk is the risk, where 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 is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.
The table below summarises the maturity profile of company’s financial liabilities based on contractual undiscounted payments:
The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders.
NOTE NO. 42
Accounts in respect of Current and Non-Current Liabilities, Trade Receivables , Other Current Assets, Loans and Advances and Deposits are subject to confirmations of respective parties.
NOTE NO. 43
Additional Regulatory Information pursuant to amendment in Schedule III of the Companies Act 2013 dated 24.03.2021 has been given to the extent applicable to the Company.
(a) The Company has only one reportable Primary Business Segment i.e Yarn. Hence, no seprate segment wise information of revenue, results and capital employed is given.
(b) The following table shows the distribution of Company's Revenue from operations by geographical market, regardless of where the goods were produced :
The disclosures required as per the Indian Accounting Standards (Ind-AS 19 - Employee Benefits) notified under the Companies (Indian Accounting Standards) Rules, 2015 are as under:
Defined - Contribution Plans
The Company offers its employees defined contribution plan in the form of provident fund(PF), family pensions fund (FPF) and Employees State Insurance Scheme (ESI) which covers substantially all regular employees. Contribution are paid during the year into separate funds under certain fiduciary-type arrangements. Both the employees and the company pay pre determined contribution into the provident funds, family pension fund and the Employees State Insurance Scheme. The Contributions are normally based on a certain proportion of the employee's salary.
Defined - Benefit Plans
The Company offers its employees defined- benefit Plans in the form of a Gratuity Scheme. Benefits under the defined benefit plan is typically based either on years of service and the employee's compensation (generally immediately before retirement). The Gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains & Losses of changed actuarial assumptions are charged to the profit and loss account. The obligations for leave encashment is recognised in the same
Note No : 53
Based on the favourable order passed by Honourable APTEL on 15th September 2022 vide order no.14/2017, company has taken credit, under power and fuel amounting Rs 481.43 Lacs and under misc income. amounting Rs. 313.89 Lacs. Honourable Supreme Court had reserved its judgement on 24th September 2024 and no judgement has been declared till 31.03.2025.
Note No : 54
Quarterly return of statement of current assets filed by the company with banks in respect of borrowing from banks on the basis of security of current assets are not having material variation with the books of account.
Note No : 55
The company has utilised the borrowings received from banks and financial institution for the purpose for which it was taken during the year.
Note No : 56
The Board of Directors in their meeting held on 30th May 2025 has recommended a dividend of Rs. 0.50/- on per fully paid up equity share of Rs. 10/- each aggregating to Rs. 37.72 Lacs for the financial year ended on 31st March 2025. The same is subject to the approval by the Shareholders in the ensuing Annual General Meeting of the Company.
Note No : 59
Previous year figures have been regrouped / rearranged, wherever necessary.
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