T. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the company expects
some or all of a provision to be reimbursed, the reimbursement is recognized as a
separate asset, but only when the reimbursement is certain. The expense relating to
a provision is presented in the statement of profit and loss net of any reimbursement.
Contingent liabilities are disclosed when the Company has a possible obligation or a
present obligation and it is probable that an outflow of resources embodying economic
benefits will not be required to settle the obligation. The Company does not recognize a
contingent liability but discloses its existence in the financial statements.
Contingent assets are not recognised in the financial statements since this may result
in the recognition of income that may never be realised. However, when the realisation
of income is virtually certain, then the related asset is not a contingent asset and is
recognized.
Note:
a) There are no projects as on each reporting date which have exceeded the cost as
compared to its original plan or where completion is overdue. However, One of the
ongoing project has been delayed by a period of six months and another projects has
been supended temporarily by the company.
b) Capital Work-in-Progress As at 31.03.2025 mainly comprises of construction cost of
Building and Plant & equipment of the Company. (As at 31.03.24 mainly comprises of
construction cost of Building and Plant & equipment of the Company. )
e. Aggregate number of share issued for consideration other than cash:
During the year 2019-20, 16,74,806 shares were issued pursuant to scheme of
arrangement and bonus shares issued during the year as detailed in note 17(h) below.
f. The Company has not bought back any shares during the last 5 years.
g After the Reporting date, the Board of Directors has proposed a dividend of H 1.50/-
per equity share (i.e. 30% on Face value of H5 each) for the year ended 31st March
2025 (31st March ,2024 - H5.00/- (i.e. 50% on Face value of H10 each)). The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting and if approved it will lead to cash outflow amounting
to H892.34 Lakhs.
h "Pursuant to resolution passed by the Board at their meeting dated 29th October,
2024 and approval by the Shareholders via Postal Ballot on 6th December, 2024, the
Company has sub-divided its equity shares of face value of H1 0/- each to 2 Equity
Shares of face value of H5/- each. Further, the shareholder's approved issuance of
bonus shares to the shareholders as on record date i.e. 20th December, 2024 in the
ratio of 1:1 i.e. one bonus equity share for each existing equity share. The Stakeholder
Relationship Committee of the Board at their meeting held on 23rd December, 2024
issued and allotted 2,97,44,582 number of Bonus Equity Shares of H5/- each,
by capitalizing a sum of H1487.23 Lakhs from the Securities Premium account.
'The Board of Directors at its meeting held on 29th October, 2024 have also
recommended further increase in Authorized Capital of the Company from H1550 Lakhs
to H3100 Lakhs comprising of 6,20,00,000 no. of Equity Share of face value of H5/-
each ranking pari passu with the existing shares of the Company. The aforesaid increase
in authorised share capital and alteration in the Capital Clause of the Memorandum of
Association has also been approved by the shareholders via the Postal Ballot."
i No ordinary shares have been reserved per issue under options and contract/
commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
j No securities convertible into Equity/ Preference shares have been issued by the
Company during the year.
k. No calls are unpaid by any directors/ officers of the Company during the year.
l. The Company does not have any Holding Company or Ultimate Holding Company.
Description of nature and purpose of each reserve :
a. Securities Premium
Securities Premium represents the excess of the amount received over the face value
of the shares. This reserve will be utilised in accordance with the provisions of the
Companies Act, 2013.
b. General Reserve
General Reserve is created from time to time by way of transfer profits from retained
earnings for appropriation purposes. General Reserve is created by a transfer from one
component of equity to another and is not an item of other Comprehensive income.
c. Capital Reserve
Capital Reserve represents arisen on business combination on earlier years.
d. Retained Earning
Retained earnings are the profits that the Company has earned till date, less any transfers
to general reserve, dividends or other distributions paid to investors. This includes
remeasurement of defined benefit plans arising due to actuarial valuation of gratuity,
that will not be routed through Statement of profit and loss subsequently.
b) Defined Benefit Plan :
The Company has a defined benefit gratuity plan. Every employee who has completed
five years or more of service is entitled to Gratuity on terms not less favourable than
the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an
insurance company.
The following tables summarise the components of net benefit expense recognised in
the statement of profit and loss and the funded status and amounts recognised in the
balance sheet for the Post - retirement benefit plans.
Sensitivity analysis above have been determine based on a method that extrapolates
the impact on defined benefit obligation as a result of reasonable changes in key
assumptions occurring at the end of the reporting period.
X. Risk Exposure
i) Interest Rate Risk: The defined benefit obligation calculated uses a discount rate
based on government bonds. If bond yields fall, the defined benefit obligation will
tend to increase.
ii) Salary Inflation Risk : Higher than expected increase in salary will increase the
defined benefit obligation.
iii) Demographic Risk: This is the risk of variability of results due to unsystematic nature
of decrements that include mortality, withdrawal, disability and retirement. The
effect of these decrements on the defined benefit obligation is not straight forward
and depends upon the combination of salary increase, discount rate and vesting
criteria. It is important not to overstate withdrawals because in the financial analysis
the retirement benefit of a short career employee typically costs less per year as
compared to long service employee.
*The company has received a demand order dated January 31, 2025 towards short
payment of Goods & Services Tax ("GST") amounting to H353.39 lakhs and Penalty
amounting to H353.39 lakhs plus applicable interest with respect to HSN classification
of pen refills and other components. The company has contested this demand, filing an
appeal against the order on March 23, 2025. Based on advice from taxation expert, the
Company believes that it has strong case on merits and hence no provision has been
made there against.
The amounts shown in (b) above represent the best possible estimates arrived at on
the basis of available information. The uncertainties and timing of the cash flows are
dependent on the outcome of the different legal processes which have been invoked by
the Company or the claimants as the case may be and therefore cannot be estimated
accurately.
In the opinion of the management, no provision is considered necessary for the disputes
mentioned above on the grounds that there are fair chances of successful outcome of
appeals.
The Company does not expect any reimbursements in respect of the above contingent
liabilities.
(ii) The Code on Social Security 2020, (the 'code') received Presidential assent on
28th September 2020. However, the date on which the Code will come into effect
has not yet been notified. The Company will assess the impact of the Code in the
period(s) in which the provisions of the Code become effective.
Note No. : 43 Financial Risk Management Objectives and Policies
The Company's financial liabilities comprise long term borrowings, short term borrowings,
capital creditors, trade and other payables. The main purpose of these financial liabilities
is to finance the Company's operations. The Company's financial assets include trade and
other receivables, cash and cash equivalents and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management
policy and its management is supported by a Risk management committee that advises on
risks and the appropriate risk governance framework for the Company. The audit committee
provides assurance to the Company's management that the Company's risk activities are
governed by appropriate policies and procedures and that risks are identified, measured
and managed in accordance with the Company's policies and risk objectives. The Board
of Directors reviews and agrees policies for managing each of these risks, which are
summarised below.
(i) 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 two types of risk:
currency risk and other price risk, such as commodity price risk and equity price risk.
Financial instruments affected by market risk include trade payables, trade receivables, etc.
a. 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. The Company has a treasury department which
monitors the foreign exchange fluctuations on the continuous basis and advises the
management of any material adverse effect on the Company.
b. 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.
Interest Rate Sensitivity
The Company does not have any outstanding variable rate borrowing as at the
reporting date. Hence, interest rate sensitivity has not been disclosed.
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet 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).
The table below summarises the maturity profile of the Company financial liabilities:
(iii) Liquidity Risk
The Company's objective is to maintain optimum levels of liquidity to meet its cash and
collateral requirements at all times. The Company relies on a mix of borrowings and
excess operating cash flows to meet its needs for funds. The current committed lines
of credit are sufficient to meet its short to medium/ long term expansion needs. The
Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient
cash to meet operational needs.
Trade Receivables
Customer credit risk is managed by the Company's established policy, procedures and
control relating to customer credit risk management. Outstanding customer receivables
are regularly monitored and reconciled. Based on historical trend, industry practice and
the business environment in which the company operates, an impairment analysis is
performed at each reporting date for trade receivables. Based on above, the company
has made provision for expected credit loss of H50.04 Lakhs for the current financial
year (Previous Year H55.32 Lakhs).
Other Financial Assets
Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is
generally low as the said deposits have been made with the banks/financial institutions
who have been assigned high credit rating by international and domestic rating agencies.
45.1 In accordance with the 'Ind AS 33 - Earnings per Share', the figures of Earnings Per
Share for the previous year ended March 31,2024 have been restated to give effect to
the sub division of shares and subsequent allotment of the bonus shares as detailed in
notes 17(h) of the standalone financial statements.
Note No. : 46 Lease
As Lessee
The Company has lease contracts for various items of buildings (including godowns) used
in its operations. The Company's obligations under its lease are secured by lessor's title to
the leased assets.
The Company also has certain leases of godowns with lease term of twelve months or less
with low value. The Company applies the 'short-term lease' and ' lease of low-value assets'
recognition exemptions for these leases.
The carrying amount of right-of-use assets (Buildings) are disclosed in the Note 4 to the
Financial Statements.
Note No. :48 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. The management
monitors the return on capital, as well as the level of dividends to equity shareholders.
The Company's objective when managing capital are to:
(a) to maximise shareholders value and provide benefits to other stakeholders, and
(b) maintain an optimal capital structure to reduce the cost of capital.
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. The Company has complied
with these covenants and there have been no breaches in the financial covenants of any
interest-bearing loans and borrowings.
For the purpose of the Company's capital management, capital includes issued equity share
capital and other equity reserves attributable to the equity holders.
Note No. :49 Other Statutory disclosures:
(i) No funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend
or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other
persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The Company has no transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.
(iii) No proceedings have been initiated on or are pending against the Company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder.
(iv) The Company has not been declared as a wilful defaulter by any bank or financial
institution or government or any government authority.
(v) There has been no charges or satisfaction yet to be registered with ROC beyond the
statutory period.
(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year ended 31 March, 2025.
(vii) The Company uses an accounting software for maintaining its books of account which
has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the accounting software
at application level except at database level. Further, there is no instance of audit trail
feature being tampered in respect of the accounting softwares where such feature is
enabled. Additionally, the audit trail has been preserved by the Company as per the
statutory requirements for record retention to the extent it was enabled in previous year.
The accompanying notes are an integral part of the Standalone Financial Statements.
As per our report of even date attached.
For Singhi & Co For and on behalf of the Board
Chartered Accountants
F.R No. 302049E ^gr'
Deepak Jalan Rohit Deepak Jalan
Managing Director Whole Time Director
MJH***' '* DIN:00758600 DIN:06883731
(Ankit Dhelia)
Partner „
Membership No. 0691 78
Place of Signature:Kolkata N. K. Dujari Dipankar De
Dated: 07th May, 2025 Director (Finance) & CFO Company Secretary
DIN:03160828 ACS 32112
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