3. Property, Plant and Equipment :
Notes :
1. The company has reviewed carrying cost of its Property, Plants & Equipments and the management is of the view that in the current financial year, Impairment of its Property, Plants &
Equipments is not considered necessary as all the assets are in good condition and realisable value is more than carrying cost.
2. During the year under consideration, the company has installed a new plant for modernization of existing production facilities. The total cost incurred for such modernisation has been
computed to be Rs. 452.36 lakhs as per the priniciples laid down in IND AS 10 "Property, Plant and Equipment". However, some of the machinery parts purchased for such modernasition,
were returned to the vendor without even using the same as they were not in a usbale condition. Cost of such unusable machinery parts amounting to Rs. 2.44 lakhs has been deducted from
the cost of installation of machinery as per IND AS 10. Moreover the differential import duty amounting to Rs. 25.68 lakhs has also been capitalized to the cost of the asset as per principles of
IND AS 10
SIGNIFICANT CASH GENERATING UNITS
The Company has identified its entire business operations as one CGU.
Following key assumptions were considered while performing Impairment testing:_
Long term sustainable growth rates in cash flows 5%
Weighted Average Cost of Capital % (WACC) before tax (Discount rate)_15%_
The projections cover a period of five years, as the Company believes this to be the most appropriate timescale over which to review and consider annual performances before applying a fixed
terminal value multiple to the final year cash flows. The growth rates used to estimate future performance are based on the conservative estimates from past performance. Margins are based
on FY 2023-24 performance.
The Company has performed sensitivity analysis around the base assumptions and have concluded that no reasonable changes in key assumptions would cause the recoverable amount of the
CGU to be less than the carrying value.
2. On transition to Ind AS, the carrying values of all the property, plant and equipment under the previous GAAP have been considered to be the deemed cost under Ind AS.
3. Details of title deeds of Immovable Property not held in name of the Company : Nil
4. Capital-work-in progress / Intangible assets under development (ITAUD), whose completion is overdue or has exceeded its cost compared to its original plan : Nil
B. Terms/Rights attached to equity shares
The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing AGM, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all prefential amounts, in proportion to their
shareholding.
No Shares were alloted for consideration other than cash, no bonus shares were issued & no shares were bought back
in the last 5 Years.
The Company does not have any holding, ultimate holding, subsidiary or associate company. Accordingly the question
of shareholding by such Companies does not arise.
* Current maturities are carried to Note - 14 : Short term Borrowings (Current)
** Security Details for Term Loan :
i) No separate security provided towards GECL availed from Punjab National Bank except that it should be covered by
guarantee coverage from NCGTC. Further, extension of charge has been created over the securities mentioned in
security particulars stated against Cash Credit Loan with Punjab National Bank reported under Note No. 14 forming a
part of the Financial Statement and disclosures thereto.
ii) Term Loan (AIR) has been secured by way of Exclusive Charge on fixed asset created out of bank finance. Further,
extension of charge has been created over the securities mentioned in security particulars stated against Cash Credit
Loan with Punjab National Bank reported under Note No. 14 forming a part of the Financial Statement and disclosures
thereto.
iii) Term Loan (GECL) is for period of 48 months of which 12 months are moratorium and the principal is payable over
remaning 36 months in equal monthly installments starting from July'2021 carrying 7.50% p.a. interest rate.
iv) New Term Loan (GECL) is for period of 60 months of which 24 months are moratorium and the principal is payable
over remaning 36 months in equal monthly installments starting from Apr'2024 carrying 9.25% p.a. interest rate.
v) New Term Loan (AIR) is for period of 96 months of which 12 months are moratorium and the principal is payable over
remaning 84 months in equal monthly installments starting from Mar'2023 carrying 7.95% p.a. interest rate.
vi) New Term Loan (AIR) of Rs. 300 lakhs was sanctioned to part finance the cost of plant and machineries and other
utility installations proposed to be installed at Meherpur unit for capacity enhancement and modernization. The same is
payable in 80 monthly installments of Rs. 375000 each after a moratorium period of 4 months. Rate of Interest is 9%
p.a.
* Security Details of Cash Credit Limit / Overdraft Facility from Punjab National Bank :
Primary :
Cash Credit & Overdraft : Hypothecation of present and future stock of raw materials, work in progress, finished goods,
book debts and all other existing and future current assets of the company's Meherpur and Dhubri unit.
Term Loan (GECL) : The GECL is covered by NCGTC.
Term Loan (AIF ) : Exclusive Charge on fixed asset created out of bank finance.
Secondary :
(i) Exclusive Charge in the form of Equitable mortgage on immovable fixed assets of the Company including Land &
Building, admeasuring land of 18 Bigha 5 Katha 3 Chatak with shed, structures, buildings situated at Meherpur, Silchar -
788015, Dag No 1180, 1188, 1189, 1191, 1194 and 1198, R. S. Patta No. 411, 407/407, Mouza : Ambicapur Part X,
District - Cachar, owned by the company and hypothecation charge on the moveable Plant & Machineries of the unit
standing on the same land.
(ii) Exclusive 1st Charge on immovable fixed assets of the Company's unit situated at Village : Dumardaha, P.S. Gauripur
of Dist : Dhubri, Pin - 783331 under Dag No 36, 681, 682, 683, 688, 689, 746, and 910 under Patta No. 239, including
Equitable mortgage of land admeasuring 39 Bigha 3 Lechas with shed, structures, buildings owned by the company and
hypothecation charge on Plant & Machineries erected thereon.
(iii) Personal Guarantee of the Directors namely Mahabir Prasad Jain, Avishek Jain and Tara Rani Jain.
29 EMPLOYEE BENEFITS
The Company maintains provident fund with Regional Provident Fund Commissioner. Contributions are made by
the company to the Fund, based on the current salaries. In the provident fund scheme, contribution are also made
by the employee. An amount of Rs. 924143 (Previous Yr Rs. 821845) has been charged to the Statement of Profit
& Loss on account of the above defined contribution scheme.
"The Company operates defined benefit schemes like gratuity. The Company has obtained a policy from Life
Insurance Corporation of India (LICI) for future payment of gratuity liability to its employees. Annual actuarial
valuations are carried out by LICI and the management has accepted the said actuarial valuation for making
provisions pertaining to Define Benefit Schemes for employees in compliance with Ind AS-19 on Employees
Benefits . Annual Contributions are made by the Company. Employees are not required to make any contribution.
An amount of Rs. 63,783 (Previous Yr Rs. 15,394) has been charged to the statement of Profit & Loss on account of
Defined Benefit Schemes."
30 RELATED PARTY TRANSACTIONS
The related parties as per the terms of Ind AS-24, "Related Party Disclosures", (specified under section 133 of the
Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) and description of their relationship
and transaction carried out with them during the year in the ordinary course of business are given below:
38 SEGMENT REPORTING
As the Company's business activity primarily falls within a single business and geographical segment i.e. Flour Mill
Products, thus there are no additional disclosures to be provided under Ind AS 108 - "Operating Segment'. The
management considers that the various goods and services provided by the Company constitutes single business
segment, since the risk and rewards from these services are not different from one another.
39 DISCLOSURE UNDER CLAUSE 32 OF LISTING AGREEMENT
There are no reportable transactions / balance with related parties that requires dislosure as per clause 32 of the
Listing Agreement.
40 All the figures in the Standalone Financial Statements are reported in Lakhs of Indian Rupees ("INR." or "Rs.") and
are rounded off to the nearest lakhs of rupees upto two decimal places. The figure 0.00 wherever stated represents
value less than Rs. 1,000/-.
Figures have been regrouped/reclassified wherever necessary to make them comparable with the current year
figures.
42 FINANCIAL RISK MANAGEMENT
The Company's activities expose it to the following risks:
^ Credit risk
^ Interest risk
^ Liquidity risk
^ Market risk
CREDIT RISK
Credit Risk is the risk that a counter party 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) and from its financing activities including deposits with banks and financial institutions,
investments and other financial instruments.
Trade receivables
Credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively.
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.
Impact of Covid 19 pandemic - Based on recent trends observed and collection patterns, the Group does not
envisage any material risks. Future outlook will depend on how the pandemic develops and the resultant impact on
businesses.
Credit risk exposure :
The Company's credit period generally ranges from 30 - 60 days. 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 in which the customer operates, also has an influence on credit risk assessment.
Top Customer means customer with whom the company has done a business of more than Rs. 1,00,00,000 during
the year. None of the customers accounted for a major portion of the receivables as at March 31, 2024 and March
31, 2023. The highest contribution to the total revenue by a customer for FY 23-24 was 13.76% & for FY 22-23
was 8.30% only.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with
counterparties that have a good credit rating. Counterparty credit ratings are reviewed by the Company
periodically and the investments are set to minimise the concentration of risks and therefore mitigate financial loss
through counterparty's potential failures. The Company does not expect any losses from non- performance by
these counterparties.
Impact of Covid 19 pandemic- Based on the recent trends observed, type of instruments and strength of the
counterparties, the Group does not envisage any material risks.
INTEREST RATE RISK
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. The Company's exposure to the risk of changes in interest rates relates primarily
to the Company's debt obligations with floating interest rates. The Company's borrowings are short term / working
capital in nature and hence is not exposed to significant interest rate risk.
LIQUIDITY RISK
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash
and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash
management system. It maintains adequate source of financing through the use of short term bank deposits and
cash credit facility. Processes and policies related to such risks are overseen by senior management. Management
monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows.
The Company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated
from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current
requirements. Accordingly no liquidity risk is perceived.
Impact of Covid 19 pandemic- Based on recent trends observed, profitability, cash generation, cash surpluses held
by the Group and borrowing lines available, the Group does not envisage any material liquidity risks. Future
outlook will depend on how the pandemic develops and the resultant impact on businesses.
MARKET 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 does not face exchange risk as it is not engaged in foreign
operations. The Company's exposure to the risk of changes in foreign exchange rates could relate only to the
Company's operating activities (when revenue or expense would be denominated in a foreign currency).
Impact of Covid 19 pandemic - The Company basis their assessment believes that the probability of the occurrence
of their forecasted transactions is not impacted by COVID-19 pandemic. The Company also does not expect any
material deterioration in both counterparty credit risk and own credit risk. Future outlook will depend on how the
pandemic develops and the resultant impact on the businesses.
43 Capital Management
For the purposes of Company capital management, Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The primary objective of the Company capital management is to ensure
that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No
changes were made in the objectives, policies or processes for managing capital during the year ended March
31,2024 and March 31,2023
45 The managment was unable to identify and depreciate significant components with different useful lives separately
from the principal asset as required by Note 4 of Schedule II of Companies Act 2013 due to lack of technical
expertise on the said matter. However, having a resaonable approach, the company assumes that none of the
parts of an item of tangible fixed assets have different useful lives from the remaining parts of the asset or the
principal asset and as per the past experience of the company, there are no significant components of existing
tangible assets that are used/ can be used for a lifespan shorter/longer than life of the principal asset.
46 Recent 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. On March 23, 2022, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2022, as below :
Ind AS 16 - Property, plant and equipment :
The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall
not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of
an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its
financial statements.
Ind AS 37 - Provisions, Contingent liabilities and Contingent assets :
The amendment specifies that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the
contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts (an example would be the allocation of the depreciation charge for an item of property, plant and
equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022, although early adoption is permitted. The Company has evaluated the
amendment and the impact is not expected to be material.
47 Standards issued but not yet effectve :
There are no standards which are issued but not effective as on March 31, 2024
The Indian Parliament had approved the Code on Social Security, 2020 "the Code" in September 2020 relating to
employee benefits. As the rules for the Code are yet to be notified, the impact of the same will be assessed upon
the Code becoming effective and the related rules to determine the financial impact being published.
48 In pursuance of AS- 28 " Impairment of Assets" issued by ICAI, the company has reviewed carrying cost of its
Assets and the management is of the view that in the current financial year, Impairment of Assets is not
considered necessary as all the assets are in good condition and realisable value is more than carrying cost.
49 In the opinion of the Board, all assets other than Property, Plant & Equipment, Intangible Assets and non current
investments, have a realisable value in the ordinary course of business which is not different from the amount at
which it is stated.
50 Some of the Parties Balances are subject to confirmation, reconciliation and final adjustment.
51 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification/ disclosure.
52 Revaluation of Property, Plant and Equipment :
Based on the assessment, the Company was not required to revalue its Property, Plant and Equipment. Hence,
disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of
the Companies (Registered Valuers and Valuation) Rules,2017 is not applicable.
59 Compliance with number of layers of companies
The company has complied 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, hence disclosure of name and CIN of the companies
beyond the specified layers and the relationship/extent of holding of the company in such downstream companies
is not required.
60 Compliance with approved Scheme(s) of Arrangements
No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013, hence the Company is not required to disclose how the effect of such Scheme of
Arrangements have been accounted for in the books of account of the Company 'in accordance with the Scheme'
and 'in accordance with accounting standards' and explain deviation, if any, in this regard.
61 Utilisation of Borrowed funds and share premium:
(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,
62 Undisclosed Income :
The Company is not required to give details of any transaction that has not been recorded in the books of accounts
as no amount 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).
Further, the company does not have any previously unrecorded income and related assets that required proper
recording in the books of account during the year.
63 Corporate Social Responsibility :
The company is not covered under section 135 of the Companies Act. Hence, the following disclosures with regard
to CSR activities are not applicable to the company :
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