15.1 Terms/rights attached to equity shares:
The Company has only one class of equity shares having a face value of Rs.10 per share. Accordingly, all equity shares rank equally with regards to dividends & share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the 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 shareholders.
15.4 : Additional Information regarding equity share capital in the last 5 Years:
i) The Company has not issued any bonus/right shares.
ii) The Company has not undertaken any buy-back of shares.
ii) The Company has not converted any warrants into equity shares during the year.
Note No. 30: Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
I. Fair value disclosures:
Level 1 - Quoted prices (Unadjusted) in active markets for identical assets & liabilities.
Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset & liability, either directly (i.e. prices) or indirectly (i.e. derive from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (Unobservable inputs).
II. Financial risk management objectives:
In the course of its business, the Company is exposed primarily to fluctuations in interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
III. 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 three types of risk: currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Future specific market movements cannot be normally predicted with reasonable accuracy.
Currency risk:
The Company does not have foreign currency transactions. The company is not exposed to risk of change in foreign currency. 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. The
Company is not exposed to the risk of changes in market interest rates as the Company does not have any long-term debt obligations with floating interest rates.
Other price risk:
The Company is not exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The
Company does not actively trade these investments.
IV. Interest risk management:
The Company's interest rate exposure is mainly related to debt obligations. The Company obtains debt to manage the liquidity and fund requirements for its day to day operations. The Company's exposure to debt in not material.
V. Credit risk management:
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 of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.
VI. 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 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.
Note 33: Contingent Liabilities(to the extent not provided for):
Claims against the Company not acknowledged as debt* -
Claims in respect of disputed income Tax matters (pending in appeal) - Rs. 121.43 Lakhs
Note 34 - Other disclosures:
34.1 Valuation of Property Plant & Equipment, intangible asset:
The Company has not revalued its property, plant and equipment or intangible assets or both during the current or previous year.
34.2 Loans or advances to specified persons:
The Company has given loans or advances in the nature of loans to its promoters, directors, KMPs and related parties, hence reporting is required as per revised schedule III of Companies Act 2013.
34.3 Title deeds of Immovable property
The title deeds of the immovable properties are held in the old name of the company ' M/s. Pushpanjali Floriculture Limited' as per 7/12 records .
34.4 Details of benami property held:
The Company does not have any Benami property, where any proceedings have been initiated or are pending against the Company for holding benami property under The Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
34.5 Borrowing secured against current assets:
The company has borrowings from banks or financial institutions on the basis of security of current assets, the quarterly returns or statements of current assets filed by the company with banks or financial institutions are as per the books of accounts.
The Company has used the borrowings from banks and financial institutions for the specific purpose for which they were availed.
34.6 Wilful defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
34.7 Relationship with struck off companies:
The Company has no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
34.8 Registration of charges or satisfaction with Registrar of Companies (ROC):
There are no any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.
34.9 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of layers)
Reason for variances for % change >25%:
Current ratio: Increase in the other current asssets in the current year as compared to previous year has resulted in the increase in the ratio
Debt Service Coverage Ratio: Increase in Cash profit in the current year as compared to previous year has resulted in the increase in the ratio
Return on Equity Ratio: Decrease in profit in the current year as compared to previous year has resulted in the decrease in the ratio
Trade Receivable Turnover Ratio: Decrease in sales in the current year as compared to previous year has resulted in the decrease in the ratio
Trade Payable Turnover Ratio: Decrease in purchases in the current year as compared to previous year has resulted in the decrease in the ratio
Net Capital Turnover Ratio: Decrease in sales in the current year as compared to previous year has resulted in the decrease in the ratio
Net Profit Ratio: Decrease in profit in the current year as compared to the previous year has resulted in the decrease in the ratio
Return on Capital Employed: Decrease in the earnings before tax in the current year as compared to the previous year has resulted in the decrease in the ratio
Return on investment: Decrease in the income from investments in the current year as compared to the previous year has resulted in the decrease in the ratio
34.11 Compliance with approved scheme(s) of arrangements:
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
34.12 Utilisation of borrowed funds and share premium:
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
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,
34.13 Corporate Social Responsibility:
The provision of Section 135 of the Companies Act, 2013 in respect of Corporate Social Responsibility is not applicable to the Company as the net worth, turnover and profit during the financial year is less than the stipulated amount. Accordingly, no policy has been framed by the Company on Corporate Social Responsibility and there is no reporting requirement pursuant to provisions of Section 134 (3) (o) of the Companies Act.
34.14 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded previously in the books of account.
34.15 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Note 35:
The balance in debtors, creditors are subject to confirmation and reconciliation, if any. However as per management opinion, no material impact on financial statements out of such reconciliation is anticipated."
Note 36-
The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendments Rules2021) which is effective from 1st April,2023 states that every company which uses accounting software for maintaining its books of accounts shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of accounts along with the date when such changes were made and ensuring that audit trail cannot be disabled.
The Company has used accounting software (Tally Prime Edit log) for maintaining its books of account which has a feature of recording audit trail (edit log) facility till 23rd December, 2024 and operated during the above period for all relevant transactions recorded in the software. From 24th December ,2024 the Company is using the accounting software (Tally Prime) for maintaining its books of account which have a feature of 'disable' recording audit trail (edit log) facility.
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