Terms/rights attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share, where voting is held by electronic voting / ballot paper. In case of Poll, each holder of equity share is entitled to number of votes against number of shares held.
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 amounts. The distribution will be in proportion to the number of equity shares held by the equity share holder.
* The Board of Directors of the Company has approved allotment of 1,38,783 fully paid up equity shares having a face value of Rs.10 each on November 14, 2022 pursuant to conversion of 73,000 Compulsory Convertible Debentures (CCD's) having a face value of Rs.100 each at a conversion price of Rs. 52.60 per equity share, including premium of Rs.42.60 per equity share. Consequent to this allotment the paid-up-equity share capital of the company stands increased to Rs. 729.52 lakhs in the previous year.
1. Total Overdraft Funded faclity of Rs.1300 lakhs has been sanctioned which includes:
la. Short Term Loan of upto Rs.1040 Lakhs to meet the working capital requirements with interest 2.2% spread per annum over 3 month MIBOR.
lb. Import Letter of Credit (LC) of upto Rs.600 Lakhs may be issued at sight and/or usance tenor of upto 90 days
lc. Bond & Guarantees of upto Rs.100 Lakhs for a tenor upto 1 year.
ld. Preshipment Financing under Export orders of upto Rs.600 Lakhs with interest spread as specified by the bank at the time of drawdown over applicable Benchmark for a Rupee Facility.
le. Exports Bill dicsounting or Import Loan or Fianancial Guarantees/SBLC (Trade) of upto Rs.600 Lakhs (limit type : inner) with interest spread as specified by the bank at the time of drawdown over applicable Benchmark for a Rupee Facility.
2. Exports Bill Discounting of Rs.400 Lakhs
2a. Preshipment Financing under Export Orders upto Rs.400 Lakhs
Above said limits are secured against exclusive charge on, IP Khasra No.69/(2)/(2) (7-11), 3/2 (7-11), 9(8-0),12/1(1-11) situated atVillage Kundli, Narela Payao Maniyari Road, Tehsil - Ral, Distt Sonepat (Haryana) owned by director Mr. Ashish Aggarwal. Exclusive charge of Standard Chartered Bank (SCB) by way of Hypothecation on the present & future current assets & movable fixed assets of the company.
28 Employee Benefit Liability
A. Defined Contribution Plans
Contributions are made to the Company's employee's provident fund trust/regional provident fund, Employee State Insurance, Labour Welfare Fund and Employee Deposit Linked Insurance in accordance with the respective fund rules. The interest rate payable to the beneficiaries every year is being notified
The amount of contribution made by the Company to employees provident fund trust/regional provident fund is Rs. 4.15 Lakhs (Rs. 6.62 Lakhs) and other funds is Rs. 2.89 Lakhs (Rs.2.98 Lakhs).
B. Defined Benefit Plans
Post-employment benefit plans Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service receives gratuity on leaving the Company as per the Payment of Gratuity Act, 1972. The breakup of the liability and expense has been given as per the table below:
The following table summarizes the components of net benefit expense recognized in the profit and loss account and balance sheet.
30 Capital Management
The Company's capital management is intended 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 operating plans and longterm product and other strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings.
Capital of the Company (total equity) as on March 31, 2025 is Rs. 3,328.27 Lakhs (March 31, 2024 Rs. 3,028.01.78 Lakhs).
31 Disclosures on financial instruments
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.
a) Financial assets and liabilities
The following table presents the carrying amounts and fair value of each category of financial assets and liabilities as at March 31, 2025 and March 31, 2024:
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of quoted equity shares, quoted corporate debt instruments and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e; as prices) or indirectly (i.e; derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
There has been no transfers between level 1, level 2 and level 3 for the years ended March 31, 2025 and March 31, 2024.
The following table provides an analysis of fair value of financial instruments that are not measured at fair value on recurring basis, grouped into Level 1 to Level 3 categories.
The short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.
Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.
b) Financial risk management
In the course of its business, the Company is exposed primarily to liquidity and credit risk, which may impact the fair value of its financial instruments.
The Company has a risk management policy which covers the risks associated with the financial assets and liabilities such as credit risks. The risk management policy is approved by the board of directors.
i) Foreign Currency Risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and purchases are denominated and the functional currency of the Company. The functional currency is INR. The Currencies in which these transactions are primarily denominated are US Dollor (USD) and EURO.
In respect of monetary assets and liabilities denominated in foreign currencies, the Company's policy is to ensure that its net exposure is kept to an acceptable level. The Company do not hedge its exposure
through any instrument.
Exposure to currency risk
The summary quantitative data about the Company's exposure to currency risk (based on notional amounts) as reported to the management is as follows:
Foreign currency sensitivity analysis
A reasonable possible strengthening (weakning) of the US Dollar, Sterling against INR at 31st March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant and ignores any impact of forecast sales and purchases.
ii) Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair value through profit or loss, trade receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of exposure to credit risks.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as at March 31, 2025 was Rs. 1,123.59.04 Lakhs (Rs. 1,007.04 Lakhs as at March 31, 2024) being the total of the carrying amount of balances with banks, short term deposits with banks and other financial assets excluding equity investments.
None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other loans or receivables that are neither impaired nor past due, there were no indications as at March 31, 2025, that defaults in payment obligations will occur.
iii) Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit and liquid and liquid plus schemes of mutual funds, which carry no/low mark to market risks.
32. Contingent Liabilities & Commitments
(i) Bond executed in favour of Dy. Commissioner Central Excise, for clearance of imported goods for Rs.300 lakhs (previous year Rs.300 lakhs).
(ii) Export obligation against EPCG Licence No.0531000730 dated 12.01.2021 for Rs.91.48 Lakhs. The export obligation on the same was required to be met within a period of 6 years from the date of utilization of licence. To the extent of the amount of total duty saved as reduced by export obligation met, the company shall be contingently liable.
(iii) Export obligation against EPCG Licence No.0531004701 dated 14.09.2021 for Rs.422.93 Lakhs. The export obligation on the same was required to be met within a period of 6 years from the date of utilization of licence. To the extent of the amount of total duty saved as reduced by export obligation met, the company shall be contingently liable.
(i) The company does not have any Immovable property, whose title Deed is not held in the name of the company.
(ii) No revaluation of Property, Plant & Equipment (Including ROU) & Intangible assets has been carried out during the year
(iii) The Company has not granted loans or advances in the nature of loans to promoters, Directors, KMPs and the related parties, either severally or jointly with any other person, that are
(a) Repayable on demand; or
(b) . without specifying any terms or period of repayment.
(iv) The Company has no intangible asset under development and accordingly its ageing is not required at yearend.
(v) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the respective financial years / period.
(viii) The Company has been sanctioned working capital limit in excess of Rs. 5 Crores, in aggregate, during the year, from Standard Chartered banks on the basis of security of current assets, however as represented by the management no quarterly returns or statements were filed by the company with bank.
(ix) 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
(x) 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,
(xi) 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).
(xii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.
The Company does not have any Scheme of Arrangements which have been approved by the Competent Authority in terms of sections 230 to 237 of the Act.
(xiii) The Company has no identified Promoters as per the applicable provisions of Companies Act 2013.
40. Previous year figures have been re grouped / recasted/ re arranged wherever necessary to make them comparable.
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