xiv. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the
amount can be reliably estimated. Provisions are not recognized for future operating losses.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability. The Company
does not recognize a contingent liability but discloses its existence in the financial statements
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company. Contingent assets are not recognized, but its existence is disclosed in the financial statements.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting the future obligations under the contract.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.
xv. Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
As per the requirements of Ind AS 116 the company evaluates whether an arrangement qualifies to be a lease. In
identifying a lease the company uses significant judgement in assessing the lease term (including anticipated
renewals) and the applicable discount rate.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods
covered by an option to extent the lease if the company is reasonably certain to exercise that option; and periods
covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The
Company revises the lease term if there is a change in the non-cancellable period of a lease.
Company as a lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease
components of the contract and allocates the consideration in the contract to each lease component on the basis of
the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease
components.
Right of Use Assets
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of
the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement
date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred
by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is
located.
The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using
the straight-line method from the commencement date over the lease term. Right-of-use assets are tested for
impairment whenever there is any indication that their carrying amounts may not be recoverable and impairment
loss, if any, is recognised in the statement of profit and loss.
Lease Liability
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if
that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may
adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio
as a whole.
The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease
liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to
reflect any reassessment or lease modifications. The company recognises the amount of the re-measurement of
lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss
depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero
and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining
amount of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that
have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments
associated with these leases are recognized as an expense on a straight-line basis over the lease term.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been
classified as financing cash flows
Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease.
The Company recognises lease payments received under operating leases as income on a straight-line basis over
the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern
reflecting a constant periodic rate of return on the lessor's net investment in the lease. If an arrangement contains
lease and non-lease components, the Company applies Ind AS 115 Revenue from contracts with customers to
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xvi. Asset Held for Sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and sale is considered highly probable.
A sale is considered as highly probable when decision has been made to sell, assets are available for immediate sale
in its present condition, assets are being actively marketed and sale has been agreed or is expected to be concluded
within 12 months of the date of classification. Non-current assets held for sale are neither depreciated nor
amortised.
Non current Assets classified as held for sale are measured at the lower of their carrying amount and fair value less
cost to sale and are presented separately in the Balance Sheet.
xvii. Impairment of Non-Financial Assets
The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a
group of non-financial assets are impaired. If any such indication exists, the company estimates the amount of
impairment loss.
For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or group of assets is considered as
cash generating unit.
An impairment loss is calculated as the difference between an asset's carrying amount and recoverable amount.
Losses are recognized in statement of profit and loss and reflected in an allowance account. When the company
considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the
amount of impairment loss subsequently decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, then the previously recognized impairment loss is reversed
through profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been in place had there been no impairment loss been recognized for
the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in
Statement of Profit and Loss, taking into account the normal depreciation/amortization.
xviii. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity. Financial instruments also include derivative contracts such as foreign currency
foreign exchange forward contracts, interest rate swaps and currency options; and embedded derivatives in the host
contract.
i. Financial assets
Classification
The Company classifies financial assets in the following measurement categories :
a. Those measured at amortised cost and
b. Those measured subsequently at fair value through other comprehensive income or fair value through
profit or loss on the basis of its business model for managing the financial assets and the contractual cash
flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus transaction costs that are attributable to the
acquisition of the financial asset, in the case of financial assets not recorded at fair value through profit or loss.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the
company commits to purchase or sell the asset.
Measured at amortised cost
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is
included in finance income in the statement of profit and loss. The losses arising from impairment are
recognised in the statement of profit and loss. This category generally applies to trade and other
receivables.
Measured at fair value through other comprehensive income (FVOCI)
A financial asset ismeasured at FVOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the
financial assets, and
b) The asset's contractual cash flows represent SPPI.
Financial assets included within the FVOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).
However, the company recognizes interest income, impairment losses & reversals and foreign exchange
gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to profit and loss. Interest earned whilst holding FVOCI
debt instrument is reported as interest income using the EIR method.
Financial Asset at fair value through profit or loss (FVTPL)
FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for
categorization as at amortized cost or as FVOCI, is classified as at FVTPL.
In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or
FVOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as 'accounting mismatch').
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in
the profit and loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets)
is primarily derecognised (i.e. removed from the company's balance sheet) when:
i. The rights to receive cash flows from the asset have expired, or
ii. The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a 'pass-through'
arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset,
or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.
iii. When the company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the company continues to recognise the transferred asset to the extent of
the company's continuing involvement. In that case, the company also recognises an associated liability.
The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the company has retained.
iv. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
company could be required to repay.
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits, and bank balance.
b) Trade receivables.
The Company follows 'simplified approach' for recognition of impairment loss allowance on:
i. Trade receivables which do not contain a significant financing component.
The application of simplified approach recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.
ii. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity
reverts to recognising impairment loss allowance based on 12-month ECL.
ii. Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial
liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be
subsequently measured at fair value.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or
amortised costs.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.
The company's financial liabilities include trade and other payables, loans and borrowings, financial guarantee
contracts and derivative financial instruments.
Financial liabilities at fair value through profit or loss.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified
as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments entered into by the group that are not designated as hedging instruments in hedge
relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading
unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial
date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently
transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes
in fair value of such liability are recognised in the statement of profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
Derivative financial instruments
The company uses derivative financial instruments, such as forward currency contracts, interest rate swaps and
forward commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks,
respectively. Such derivative financial instruments are initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when and
when the company has a legally enforceable right to set off the amount and it intends either to settle then an a net
basis or to realize the asset and settle the liability simultaneously.
Measurement of fair values
The Company's accounting policies and disclosures require the measurement of fair values, for financial
instruments.
The Company has an established control framework with respect to the measurement of fair values. The management
regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as
broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence
obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
xix. Government Grants
Government Grants and subsidies from Government are recognised when there is reasonable certainty that the
grant/subsidy will be received and all attaching conditions will be complied with. Government grant related to
income are recognised in the Statement of Profit & Loss on a systematic basis over the period in which the Company
recognizes as expenses the related costs for which the grant is intended to compensate.
Where the Grant relates to an asset value, it is recognised as deferred income, and amortised over the expected
useful life of the asset.
xx. Guarantee Commission
In respect of Corporate Guarantees given by the Company on behalf of its Subsidiaries on the Ind As transitional
date, notional income is booked at rate prevalent in market for similar guarantee and the income is amortised over
the period of the guarantee. The notional income for guarantees given in subsequent periods is treated as deemed
investment, added to the carrying cost of investment in Subsidiary and amortised over the period of the guarantee.
C. Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31,2025, MCA has notified Ind
AS 117 - Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, these are
effective from period beginning on or after April 01,2024. The Company has reviewed the new pronouncements and based
on its evaluation has determined that it has no impact on the company's financial position.
NATURE AND PURPOSE OF RESERVES
(i) Capital Reserve
Capital Reserve was created on account of gains on buyback of FCCB's. The reserve can be utilised in accordance with the
provisions of the Companies Act, 2013.
(ii) Securities Premium
Securities Premium is created on recording of premium on issue of shares. The reserve can be utilised in accordance with the
provisions of the Companies Act, 2013.
(iii) General Reserve
The General Reserve is created from time to time out of surplus profit from retained earnings. General Reserve is created by
transfer from one component of Equity to another.
(iv) Equity Instruments through Other Comprehensive Income
The company has elected to recognise changes in fair value of certain class of investments in other comprehensive income.
These fair value changes are accumulated within this reserve and shall be adjusted on derecognition of investment.
(v) Retained Earnings
The same is created out of profits over the years and shall be utilised as per the provisions of the Companies Act, 2013.
Note : A Secured Loans
a. Term Loan From South Indian Bank Ltd.
Term Loan of ' 7,183.37 lacs, Outstanding ' Nil (previous year ' 400.63 lacs) from South Indian Bank is secured by :
i) Hypothecation of all current assets of the Company including receivables other than those charged to existing
lenders of the Company.
ii) Collateral security by way of hypothecation/mortgage of warehouses of the Company located at :
(a) Survey No. 30/1,30/2, 30/3, 30/4, Village Linga, District Chindwada (MP), Area of Land- 26353 sq mt.
(b) Survey No. 253/1,257/1,258 and 259, Village Chaigaon, Devi Tehsil, District Khandwa, Area of land- 37100
sq mt.
(c) Survey No. 711, 712, 713, Village Jamunia, Kala patwari, Halka No. 11, Mhow Nasirawad Road, Tehsil and
District Ratlam (MP), area of land 62300 Sq mt.
(d) Survey No. 734/2, 751/2, 752, 756/2, 756/3, 756/4, 756/5, 758/1, 759/1, Patwari Halka No. 31, Village
Mangrol, Mhow Nasirawad Road, Tehsil and District Ratlam (MP), area of land - 53100 sq mt.
(e) Survey No. 167/1, 168/1,78/1, 78/3, 79/2, 74, 75, 76, 77, 79/1,78/2, 173/1, Village Raigaon, Tehsil Raghuraj
Nagar District Satna (MP), area of land - 36300 sq mt.
iii) The rate of Interest during the year is 11.50% (Previous Year 10.75%).
iv) As a measure to lessen the adverse impact on businesses due to lockdown on account of COVID-19, the Reserve
Bank of India had allowed borrowers whose accounts were not in default category to avail of moratorium on
repayment of loan installments and servicing of interest for the period March 2020 to May 2020. Subsequently the
moratorium was extended upto August 2020. The Company has availed the moratorium upto August 2020 and has
received confirmation from its Banker regarding the same.
As per the terms of the moratorium availed, the tenure of the loan is extended by six months and the last installment
of the loan which was due in December 2023 extended till June 2024. The interest on the term loan for the months of
March 2020 to August 2020, has been capitalised into the loan principal and repayment will be spread over the
remaining tenure of the loan. The principal installment due from September 2020 includes, in addition to the original
installment amount, the pro rated portion of the interest capitalised.
v) The loan was repayable in 26 scattered installments starting from September, 2017 with the last installment due in
June, 2024. The loan was fully repaid in June 2024.
b. Vehicle loan
(i) Vehicle Loan of '180.00 lacs from BMW Financial Services Pvt. Ltd., Outstanding ' 125.40 lacs (Previous year
' 180.00 lacs) is secured by charge on specific vehicle financed by them. The loan is repayable in 35 Monthly installment
of ' 5.79 lacs and one installment of ' 5.54 lacs (including interest) commenced from April, 2024 last installment being
due in March 2027. Rate of Interest is 9.75% p. a. as at the year end (previous year 9.75%).
The installments remaining to be paid are as under :
B. Terms / Rights attached to Preference Shares :
Preference shares are non convertible, cumulative, redeemable and have a par value of ' 100/- per share. Each preference
shareholder is eligible for one vote per share only on resolutions affecting their rights and interest. Shareholders are entitled
to dividend at the rate of 6% p.a.which is cumulative. In the event of liquidation of the company before redemption, the
holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.
NOTE: 43 - NOTE ON CONVERTIBLE WARRANTS ISSUED BY THE COMPANY
During the year ended 31st March 2023, the Company made a preferential issue of 3,07,85,000 warrants each convertible into one
equity share of ' 1/- at a price of ' 10.30 per warrant within the validity period of 18 months from the date of allotment. Out of such
3,07,85,000 warrants, 1,02,62,000 warrants were converted into equity shares during the year ended 31s' March 2023. Further
94,00,000 warrants were converted into equity shares during the year ended 31st March 2024 and remaining 1,11,23,000
warrants were converted during the year ended 31st March, 2025 leaving no warrants outstanding for conversion.
The Company raised ' 1,590.58 lacs in the FY 2022-23,' 723.80 lacs during the FY 2023-24 & ' 856.47 lacs during the FY 2024-25
towards warrant subscription/warrant conversion, which was utilised towards the objects of the preferential issue. Interest on the fixed
deposits made out of the proceeds received from warrants/equity was ' 30.88 lacs. Total fund available was ' 3,201.73 lacs. These
funds were utilised towards objects of the issue. An amount of ' 2,754.04 lacs was utilised for the purpose of capital expenditure,
' 54.98 lacs towards major repairs of capital assets and ' 392.71 lacs was utilised for the prepayment of outstanding term loan
instalment of South Indian Bank Ltd. The entire amount raised by preferential issue has fully utilised as per the objects of the issue.
NOTE: 44 - NOTE ON CORPORATE SOCIAL RESPONSIBILITY
The Company was required to spend ' 32.83 lacs on Corporate Social Responsibility activities under Section 135 of the
Companies Act, 2013 for the year ended 31st March, 2025 calculated as per Section 198 of the Companies Act, 2013.
The details of expenditure made for complying with the provision for CSR expenditure under Section 135 of Companies
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NOTE: 52 - FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT
Financial risk management
The Company has exposure to the following risks arising from financial instruments:
(i) Market risk
(a) Currency risk;
(b) Interest rate risk;
(ii) Credit risk ; and
(iii) Liquidity risk.
Risk management framework
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company's primary risk management focus is to minimize potential adverse effects of risks on its financial performance.
The Company's risk management assessment policies and processes are established to identify and analyses the risks faced
by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. These
policies and processes are reviewed by management regularly to reflect changes in market conditions and the Company's
activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.
i) Market risk
Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity
prices, which shall affect the Company's income or the value of its holdings of its financial instruments. The objective of
market risk management is to manage and control market risk exposure within acceptable parameters, while optimising
the returns.
i)(a) Foreign Currency risk
The fluctuation in foreign currency exchange rates may have impact on the profit and loss account, where any
transaction has more than one currency or where assets/liabilities are denominated in a currency other than the
functional currency of the entity.
Considering the countries and economic environment in which the Company operates, its operations are subject to
risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S.
dollar, against the functional currency.
The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to
hedge foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for
trading or speculative purposes.
Exposure to foreign currency risk
The Company has no foreign currency exposure as at the year end. (Previous Year Nil)
The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge
foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for trading or
speculative purposes.
i)(b) Interest rate risk exposure variable rate
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 market risk for changes in interest rates relates to
borrowings from financial institutions. The company's exposure to the risk of changes in market interest rates relates
primarily to the borrowing from bank and financial institution. Currently Company is not using any mitigating factor to
cover interest rate risk.
Interest rate sensitivity
A reasonably possible change of 1% in interest rates at the reporting date would have increased/(decreased) equity and profit or
loss by amounts shown below. This analysis assumes that all other variables, in particular, foreign currency exchange rates, remain
constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk
exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding
during the period.
ii) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its
contractual obligations and arises principally from the Company's receivables from customer. The Company establishes an
allowance for doubtful debts and impairment that represents its estimate on expected loss model.
A. Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry has an influence on credit risk assessment. Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business.
C. Investments
The Company does not expect any losses from non-performance by these counter-parties apart from those already given
in financials, and does not have any significant concentration of exposures to specific industry sectors or specific
country risks.
iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the
Company's reputation. The Company has obtained fund based lines from various banks. The Company also constantly
monitors various funding options available in the debt and capital markets with a view to maintaining financial flexibility.
Exposure to liquidity risk
The table below analyses the Company's financial liabilities into relevant maturities groupings based on their
contractual maturities for:
Note : The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to
derivative financial liabilities held for risk management purposes and which are not usually closed out before
contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net cash-settled and gross
cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement.
NOTE : 53 - CAPITAL MANAGEMENT
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net debt is
defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and
cash equivalents. Equity comprises of Equity share capital and other equity.
The Company's policy is to keep the ratio at optimum level. The Company's adjusted net debt to equity ratio was as follows:-
NOTE: 54 ADDITIONAL INFORMATION
i. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable
on demand or (b) without specifying any terms or period of repayment.
ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.
iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.
iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.
v. The company is compliant with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
vi. (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) with the
understanding (whether recorded in writing or otherwise) 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;
(B) 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
(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 on behalf of the Ultimate Beneficiaries.
vii. The Company does not have any 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).
viii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
ix. The Company has no working capital limits from banks on the basis of security of current assets.
NOTE: 55
a. During the previous year 1 3,71,800 equity shares of National Steel and Agro Industries Ltd carrying value of ' 44.17 lacs
were cancelled due to order of NCLT. The same were derecognised and w/off and shown under Note 32 Other expenses.
b. During the previous year 11,700 equity shares of IMEC Services ltd. carrying value ' 0.19 lacs were restructured and
Company has received 443 equity shares against 11,700 equity shares.
NOTE: 56
During the previous year, the Company executed Business Transfer Agreement for disposal of business undertaking of the
Company comprising of petroleum terminal at Cochin Port on slump sale basis for a consideration of ' 811 lacs. The gain of
' 725.26 Lacs arising out of the sale has been disclosed under "Exceptional Item".
As per our report of even date attached. For and on behalf of the Board of Directors
For SMAK & Co.
Chartered Accountants
(Firm Regn No. 020120C) Mohan Das Kabra Narendra Shah
Director Managing Director
DIN:07896243 DIN: 02143172
CA Atishay Khasgiwala
Partner
Membership No. 417866 Ashish Mehta Pavan Kumar Purohit
Indore, May 28, 2025 Company Secretary Chief Financial Officer
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