46 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's principle 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 also holds FVTPL and FVOCI investments.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's risk management assessment
and policies and processes are established to identify and analyse the risks 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 policies and processes are reviewed regularly to reflect changes in market conditions and the
Company's activities.
(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 interest rate risk and currency risk. Financial instruments
affected by market risk include loans and borrowings, trade and other receivables and trade and other payables.
The sensitivity analyses in the following sections relate to the position as at 31st March, 2025 and 31st March, 2024.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating
interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant.
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 31st March, 2025 and 31st March, 2024.
Interest Rate Risk
The Company's exposure to changes in interest rates relates primarily to the Company's outstanding floating rate
debt. Most of the borrowing of the Company are at floating rate of interest.
Interest Rate Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of
loans and borrowings affected. With all other variables held constant, the Company's profit before tax is affected
through the impact on floating rate borrowings, as follows:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.
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's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency).
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company does not hold collateral as security.
i) Trade Receivables
Customer credit risk is managed on the basis of the Company's established policy, procedures and control
relating to customer credit risk management. Trade receivables are non-interest bearing and are generally
on 30 days to 90 days credit term. Credit limits are established for all customers based on internal rating
criteria. Outstanding customer receivables are regularly monitored.
For trade receivables, Expected Credit Loss (ECL) is provided as per simplified approach. The Company
has applied the practical expedient as per Ind AS 109 'Financial Instruments' to measure the loss allowance
at lifetime ECL. The Company determines the ECL on trade receivables by using a provision matrix,
estimated based on historical credit loss experience based on the past due status of the debtors, adjusted
as appropriate to reflect current conditions and estimates of future economic conditions.
ii) Other Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company's finance
department in accordance with the Company's policy. Investments in equity instruments and of surplus
funds are made only with approved counterparties who meets the minimum threshold requirements under
the counterparty risk assessment process. Based on its on-going assessment of counterparty risk, the
Company adjusts its exposure to various counterparties.
(c) Liquidity Risk
Liquidity risk is defiined as the risk that the Company will not be able to settle or meet its obligation on time or
at a reasonable price. Processes and policies related to such risks are overseen by senior management. The
Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet
the operational needs.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments.
Notes
A. In pursuance to disclosure required under Section 186(4) of the Companies Act, 2013, the above
corporate guarntee was given to banks in order to secure the borrowings as availed by Other Body
Corporates.
B. The Company believes that the ultimate outcome of these proceedings will not have a material adverse
effect on the Company's financial position and results of operations.
(ii) Capital committtments
The Company has entered into various contracts with suppliers and contractors for the acquisition of plant
and machinery, equipment and various civil contracts of capital nature amounting (net of advances given) to
' 657.63 Lakhs (previous year: ' 735.08 Lakhs).
48 CAPITAL MANAGEMENT
The Company's capital management objective are to ensure Company's ability to continue as a going concern
as well to create value for shareholders by facilitating the meeting of long term and short term goals of the
Company. The Company determines the amount of capital required on the basis of annual business plan coupled
with long term and short term strategic investment and expansion plans. The funding needs are met through
cash generated from operations, long term and short term bank borrowings. The Company monitors the capital
structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including
non-current earmarked balances). The table below summarises the capital, net debt and net debt to equity ratio
of the company.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st
March, 2025 and 31st March, 2024.
*The reason for variance are given against the ratios which are varying by 25% or more as compared to last year.
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
(iii) The Company does not have any transactions with companies struck off.
(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) 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 lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) 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 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,
(viii) The Company does not any such transaction which 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.
(ix) The Company has Fund-based and Non-fund-based limits of Working Capital from Banks and Financial
institutions. For the said facility, the submissions made by the Company to its lead bankers based on closure
of books of accounts at the year end, the quarterly returns or statements comprising stock statements, book
debt statements, credit monitoring arrangement reports, statements on ageing analysis of the debtors/other
receivables, and other stipulated financial information filed by the Company with such banks or financial
institutions are in agreement with the unaudited books of account of the Company of the respective quarters
and no material discrepancies have been observed.
52 The previous year figures have been re-grouped wherever necessary in order to make the figures comparable to
the current year.
As per our report of even date
For, Ravi Karia & Associates For and on behalf of Board of Directors of
Chartered Accountants Jindal Worldwide Limited
CA Ravi Karia Dr. Yamunadutt Agrawal Mr. Amit Agrawal
Partner Chairman & Director Vice Chairman & Managing Director
Membership No. 161201 (DIN: 00243192) (DIN: 00169061)
Firm Registration No. 157029W
CA Vikram Oza CS Ashish Thaker
Place : Ahmedabad CFO & Director Company Secretary
Date : May 28, 2025 (DIN: 01192552) (Mem. No. A57052)
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