Note 1.1 Rights, preference and restrictions attached to equity shares
The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company
In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.
Secured term loans from banks & others
a. Term loans are secured by way of pari passu first charge on company's fixed assets excluding tools & dies, both present & future and second charge on current assets
b. The term loan taken from Yes Bank is Nil (Previous year Rs 231.82) which carries interest of 10.10% per annum
c. The term loan taken from HDFC Bank Limited is Rs Nil (Previous year Rs 139.01) which carries interest of 9.55% per annum
d. The term loan taken from Yes Bank is Rs 249.97 (Previous year Rs 357.09) which carries interest of 10.50% per annum
e. The term loan taken from Yes Bank is Rs 183.33 (Previous year Rs 261.90) which carries interest of 10.90% per annum
f. The term loan (GECL 2.0) taken from Yes Bank is Rs 488.75 (Previous year Rs 743.75) which carries interest of 9.25% per annum
g. The term loan (GECL 3.0) taken from Yes Bank is Rs 510.00 (Previous year Rs 510.00) which carries interest of 9.25% per annum
h. The term loan taken from TATA Capital Financial Services Limited is NIL (Previous year Rs.166.80) which carries interest of 11.15% per annum.
i. The term loan taken from TATA Capital Financial Services Limited is Rs. 110.89 (Previous year Rs 258.89) which carries interest of 11.40% per annum
j. The term loan taken from TATA Capital Financial Services Limited is Rs. 2,173.81 (Previous year Nil) which carries interest of 10.75% per annum
Nature of securities
The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with second pari passu charge on entire fixed assets of the Company is excluding moulds and dies, Gurgaon and Manesar Plants.The sales invoice discounting facility has the exclusive charge on debtors of "Maruti Suzuki India Limited" funded by Yes Bank Ltd.
a) Cash credit facilities outstanding from Axis Bank Limited is Rs. 155.20 (Previous year Rs. 1,271.47) carry interest of 10.15% computed on the daily basis on the actual amount utilized, and are repayable on demand.
b) Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Rs. 446.35 (Previous year Rs. 297.93) carry interest of 9.60% computed on the daily basis on the actual amount utilized, and are repayable on demand.
c) Cash credit facilities outstanding from Yes Bank Limited is Rs. 1,109.90 (Previous year Rs 2,127.23) carry interest of 10.45% computed on the daily basis on the actual amount utilized, and are repayable on demand.
d) Cash credit facilities outstanding from HDFC Bank Limited is Nil (Previous year Rs. 180.89) carry interest of 10.70% computed on the daily asis on the actual amount utilized, and are repayable on demand.
e) Working capital demand loan outstanding from Yes Bank Limited is Nil (Previous year Rs 500.00) carry interest of 8.60% computed on the daily basis on the actual amount utilized, and are repayable on demand.
f) Sales invoice discounting outstanding from Yes Bank Limited is Rs 2,412.20 (Previous year Rs 1,705.37) carry interest of 8.50% to 9.00% computed on the daily basis on the actual amount utilized, and are repayable on demand.
g) Revolving loan against tentative delivery instruction (TDI) from MSIL outstanding from Kotak Mahindra Bank Limited is Rs 1,000.00 (Previous year Nil) carry interest of 9.00% computed on the daily basis on the actual amount utilized, and are repayable on 75 days from usance.
The quarterly returns or statements of current assets filed by the company with banks are in arrangement with books of accounts of the company. Further there is no material discrepancy between books & information submitted to bank.
31. Contingent liabilities and commitments (to the extent not provided for):
(i) Contingent liabilities not provided for
Demand under the Central Excise Act of ? Nil (Previous year ? 24.87 lakh). Demand dropped in full in appeal at Customs, Excise & Service Tax Appellate Tribunal, New Delhi by Decision dated 12 March 2024 and letter issued dated 15th March 2024.
(ii) Guarantees
In respect of outstanding bank guarantees: ? 299.28 lakh (Previous year Nil)
(iii) Commitments
Estimated amount of contracts, remaining to be executed on land ? 2,080.81 lakh (Previous Year Nil), on machinery / spare parts of machinery (net of advances) ? 370.93 lakh (approx.) payable in USD 86,390 and JPY 5,42,55,000 (Previous year ?6.01 lakh (approx.) payable in USD 7,300).
32. Post retirement employee benefits:
(i) Defined benefit plans such as gratuity
The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The company has a defined benefit gratuity plan. The scheme is funded with
(ii) Defined contribution plans such as provident fund
The Company has defined contribution plans namely provident fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has not further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is as follows:
33. Other income includes interest income ?1.51 lakh (Previous year ?7.31 lakh), tax deducted thereon is Nil (Previous year ?0.19 lakh), Profit on sale of property, plant and equipments is ?2.35 lakh (Previous year ?0.84 lakh), Sundry creditors written off is Nil (Previous year ?3.60 lakh), Duty draw back received ?2.35 lakh (Previous year ?3.44 lakh), Forfeiture of advance from customer is Nil (Previous year ?10.86 lakh).
34. Leases Company as a lessee
The Company has lease contracts for various items of Land and Building in its operations. Leases generally have lease terms between 1 and 33 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets and some contracts require the Company to maintain certain financial ratios.
The Company has a lease contract with his joint venture partner namely Maruti Suzuki India Limited for 33 years for use of land of Gurugram factory premises on annual rent of ?!/-. The Company has not created ROU assets and liabilities on this because there is no material impact on the financials.
The Company had total cash outflows for leases of ?189.64 lakh in March 31, 2024 (?171.24 lakh in March 31, 2023). There are no non cash additions to right-of-use assets and lease liabilities. There are no future cash outflows relating to leases that have not yet commenced.
35. Investment in equity share is measured at fair value through other comprehensive income as per Ind AS 109.
Company was allotted 12,50 000 equity shares of face value of Rs.10 each in March 1995 by Caparo Maruti Limited ( CML ) constituting 10% equity capital of CML in total. The amount of Rs.125 lacs in this regard is reflected as an investment in the balance sheet of the company. However, CML, illegally, unilaterally passed a resolution in its board cancelling the shares held by the company and allegedly unlawfully modified the register of members in the year 2004. Accordingly, the company filed a Plaint before the Hon'ble High Court of Delhi for nullifying such illegal act by CML. The matter is pending before the Hon'ble High Court of Delhi. Company has not made any provision in this regard in the balance sheet as the Management is of strong opinion that judicial decision will be in its favour as the Company was arbitrarily denied its rights as a shareholder and the company firmly believes that it continues to be the lawful shareholder of CML.
The company is unable to ascertain the fair value of investment in equity shares in Caparo Maruti Limited as it is not practicably feasible to do so and therefore, no fair value adjustment have been made in the books of accounts and these equity instruments have been carried forward at cost as at Balance sheet date.
36. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Ind AS-108 "Operating Segments". The geographical segmentation is not relevant, as there is insignificant export.
2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (noncurrent) consists of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.
3. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates, currency basis spreads between the respective currencies and interest rate curves.
4. The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instruments are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments are included in level 3.
Management uses its best judgement 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 the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
46. Financial risk management:
The Company's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Corporate Treasury function reports quarterly to the company's risk management committee, an Independent body that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023. 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 31 March 2024 and 31 March 2023.
a) Foreign currency risk management
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the trade / other payables, trade / other receivables and derivative assets / liabilities. The risk primarily relate to fluctuations in US Dollar, EURO and JPY against the functional currencies of the Company. The Company's exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.
c) Credit risk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the company uses other publicly available financial information and its own trading records to rate its major customers. The company's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.
d) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.
The contractual maturity is based on the earliest date on which the company may be required to pay.
49. The group offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium of 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).
(ii) 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.
1. Long term borrowings Short term borrowings.
2. Net Profit after taxes Non-cash operating expenses Interest other adjustments like loss or gain on sale of Fixed assets etc.
3. Interest Lease payments for the current year Repayments of long term borrowings
4. Purchase of raw material stores and spares including repair & maintenance packaging
5. Total equity Lease liabilities Total borrowings Deferred tax liability - Intangible assets Reasons for variations
6. Debt Service Coverage ratio has increased primarily due to increase in earnings available for debt service and decrease in repayments of long term borrowings.
7. Return on Equity ratio has increased primarily due to increase in turnover and higher profitability thereof.
8. Trade payable turnover ratio has decreased primarily due to an increase in purchase or raw material and increase in balance of trade payables at the yearend, which led to increase in average trade payables.
9. Net capital turnover ratio has decreased primarily due to an increase in current assets which led to decrease in working capital
10. Net profit ratio has increased primarily due to increase in turnover and higher profitability thereof.
11. Return on Capital employed has increased primarily due to increase in turnover, higher profitability and decrease in borrowings.
12. Return on Investment ratio primarily increased due to increase in turnover and higher profitability thereof.
52. Previous year figures have been regrouped / rearranged, wherever considered necessary to current year's classification.
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