(i) Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loan are repayable in equal monthly installments over a period of 2 to 4 years and carry interest rate ranging between 7.95% to 9.30% p.a.
(ii) Unsecured loans are repayable in equal monthly installments over a period of 3 years and carry interest rate ranging between 14.00% to 15.00% p.a.
(iii) There is no default, continuing or otherwise, as at the balance sheet date, in repayment of any above loans.
i) Working Capital Loan from HDFC Bank is secured against hypothecation of current assets, FD's and mortgage of Immovable Properties of the company, collateral security of immovable properties of others along with personal guarantee of Directors & Colletral Holders and carries effective interest @ 9.10% p.a. (Rep Rate 2.60%)
ii) Loan from NBFC is unsecured and carriers effective interesr @ 10.00% p.a.
The Company has borrowings from banks against the security of current assets and the company is submitting the monthly statement of stock and receivables to the banks.
During the year, the Company allotted equity shares pursuant to the exercise of share warrants issued in September 2023. In September 2023, the Company had issued 12,85,601 share warrants of face value ^10 each at an issue price of ^202.24 per warrant on a preferential basis. During the financial year 2024-25, 1,03,83,711 equity shares of face value ^1 each were allotted upon exercise of these warrants, post sub-division of equity shares and subject to bonus adjustment. The remaining unexercised share warrants were not subscribed. Subsequently, against the 1,03,83,711 equity shares so allotted, the Company issued 56,63,840 bonus equity shares of face value ^1 each, in the ratio of 6 (six) fully paid-up equity shares for every 11 (eleven) fully paid-up equity shares held, to eligible shareholders as on the record date.
(c) Terms and rights attached to equity shares
i) The Company has only one class of equity shares having a par value of Rs. 1 per share. Each shareholder is entitled to one vote per share.
ii) In the event of liquidation of the Company,the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
*The Company had submitted an application to BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") on September 20, 2024, seeking reclassification of Ms. Deepika Jain from the category of “Promoter Shareholder” to “Public Shareholder”, in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to the said application, BSE and NSE, vide their letters dated April 24, 2025, have granted their approval for the aforementioned reclassification.
SUB-DIVISION OF FACE VALUE OF EQUITY SHARES OF THE COMPANY FROM RS. 10/- (RUPEES TEN ONLY) EACH TO RE. 1/- (RUPEE ONE) EACH
The Board of Directors of the Company & approval of the members of the Company be and are hereby accorded for sub-division/split of equity shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid- up, ranking pari-passu in all respects with effect from Record Date - March 28, 2024 by the Board (hereinafter the term 'Board') of the Company.
INCREASE IN AUTHORIZED SHARE CAPITAL
On the recommendations of the Board of Directors of the Company on February 12, 2024 & the approval of the shareholder of the Company on March 14, 2024 and are hereby accorded to increase the Authorized Share Capital of the Company from the existing Rs. 1,170 Lakhs/- (Indian Rupees Eleven Crore Seventy Lakh Only) divided into 1,17,00,000 (One Crore Seventeen Lakh) Equity Shares of Rs.10/- (Rupees Ten Only) each to Rs.1730 Lakhs /- (Indian Rupees Seventeen Crore Thirty Lakh Only) divided into 17,30,00,000 /- (Seventeen Crore Thirty Lakh Only) Equity Shares of Re.1/- (Rupee One Only) each.
ISSUE OF BONUS EQUITY SHARES TO THE SHAREHOLDERS OF THE COMPANY
During the year, Company has issued 56,63,840 bonus equity shares of face value Re. 1 each against 10,38,371 share warrants having a face value of Rs. 10 each (equivalent to 1,03,83,710 equity shares of face value Re. 1 each, adjusted pursuant to the sub-division of equity shares), The bonus shares have been allotted in the ratio of 6 (Six) new fully paid-up equity shares of Re. 1/- each for every 11 (Eleven) fully paid-up equity shares of Re. 1/- each held by the eligible shareholders
The Board of Directors & approval of the members be and is hereby accorded to the Board of Directors of the Company ('the Board') for capitalization of a sum not exceeding Rs 609.67 Lakhs (Rupees Six Core Nine Lakh Sixty Seven Thousand and Twenty only from out of the Securities Premium account/retained earnings/ free reserves and / or any other permitted reserves/surplus of the Company, as may be considered appropriate for the purpose of issue of Bonus Equity Shares of 6,09,67,020, as fully paid to the eligible members of the Company whose name(s) appear in the Register of Members on 'Record Date' to be determined by the Company for this purpose, in proportion of 6 (Six) new fully paid-up equity share of Re. 1/- (Rupee one only) each for every 11 (Eleven) fully paid-up Equity Shares of Re. 1/- (Rupee one only) each (i.e. Adjusted for Sub-Division of equity Shares as on the Record Date) and that the new Bonus equity Shares so issued and allotted shall, for all purposes, be treated as an increase in the paid- up capital of the Company held by each such member. Record date of Issue of Bonus is March 28, 2024.
Issuance of Warrants Convertible into Equity Shares to the Proposed Allottees, on a Preferential Basis
The Board of Directors & approval of the members be and is hereby accorded to the Board of Directors of the Company ('the Board') for capitalization of a sum not exceeding Rs 609.67 Lakhs (Rupees Six Core Nine Lakh Sixty Seven Thousand and Twenty only from out of the Securities Premium account/retained earnings/ free reserves and / or any other permitted reserves/surplus of the Company, as may be considered appropriate for the purpose of issue of Bonus Equity Shares of 6,09,67,020, as fully paid to the eligible members of the Company whose name(s) appear in the Register of Members on 'Record Date' to be determined by the Company for this purpose, in proportion of 6 (Six) new fully paid-up equity share of Re. 1/- (Rupee one only) each for every 11 (Eleven) fully paid-up Equity Shares of Re. 1/- (Rupee one only) each (i.e. Adjusted for Sub-Division of equity Shares as on the Record Date) and that the new Bonus equity Shares so issued and allotted shall, for all purposes, be treated as an increase in the paid- up capital of the Company held by each such member. Record date of Issue of Bonus is March 28, 2024.
38 Employee benefits_
a) Description of the type of the plan Defined Benefit Plan - Gratuity
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972.
Post-Employment Benefits plan defined in a(ii) and a(iii) above typically expose the Company to actuarial risks such as: Salary increase, Discount rate, Morality and Disability and withdrawals
a) Salary Increases :- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Discount Rate :- Reduction in discount rate in subsequent valuations can increase the plan's liability.
c) Mortality & disability :- Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
d) Withdrawals :- Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan's liability.
41 Financial risk management objectives and policies_
The Company's principal financial liabilities comprise borrowings, security deposits, trade and other payables, etc. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade receivable, security deposit, cash and cash equivalents, etc. that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The management oversees the management of these risks. The management is responsible for formulating an appropriate financial risk governance framework for the Company and periodically reviewing the same. The management ensures that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The management reviews and agrees policies for managing each of these risks, which are summarised 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 prices comprise three types of risk: interest rate risk, foreign currency risk and Equity price risk.
(i) 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. Since the Company has borrowings, therefore Company is exposed to such risk.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company's interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.
As at March 31, 2024 and 2023, financial liabilities in respect of Borrowings is 820.14 and 1321.73 Lakhs , respectively, were subject to variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of 8.20 Lakhs and 13.22 Lakhs for the year ended March 31, 2025 and 2024,
(ii) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company does not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.
(iii) Equity Price Risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities.
The fair value of some of the Company's investments measured at fair value through Profit and Loss statement exposes the Company to equity price risks. These investments are subject to changes in the market price of securities. The fair value of Company's investment in quoted equity securities as of March 31, 2025 was 1345.95 Lakhs. A 10% change in equity price as of March 31, 2025 would result in a pre- tax impact of 13.46 Lakhs.
(Note: The impact is indicated on equity before consequential tax impact, if any).
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.
Credit risk arises mainly from loans, trade receivables and financial assets. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an ongoing basis. None of the trade receivables are credit impaired as on reporting date.
On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the expected credit loss for trade receivables is not significant.
The carrying amount of financial assets represents the maximum credit exposure. The Company monitors credit risk very closely. The Management impact analysis shows credit risk and impact assessment as low.
(c) 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 fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
43. Additional Regulatory Information
a. Details of Benami Property held
The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
b. Details of Loans and advances
The company has not granted any loans and advances to promoters, directors, key managerial personnel (KMPs) and the related parties which are repayable on demand or without specifying any terms or period of repayment.
c. Wilful Defaulter
The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.
d. Relationship with Struck off Companies
The Company do not have any transactions with companies struck off.
e. Registration of charges or satisfaction with Registrar of Companies (ROC)
The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.
f. Compliance with number of layers of companies
The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
g. Compliance with approved Scheme(s) of Arrangements
There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
h. Discrepancy in utilization of borrowings
The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance
i. Utilisation of Borrowed funds and share premium:
(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
(B) the company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).
(c) The company have 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 lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries); orb) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;
(d) The Company have 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 lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Additional Information
a. Undisclosed income
The Company has no transaction that is 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).
b. Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto currency or Virtual Currency.
Previous year's figures have been regrouped/reclassified wherever necessary to conform current year's presentation.
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