Note : 25 Credit Risk Management
Credit risk is managed on a group basis. For banks and financial institutions, only high rated banks/institu-tions are accepted.
For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assesses and maintains an internal credit rating system. Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics.
Note 28 Market Risk
(a) 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 constantly monitors the credit markets and rebalances its financing strategies to achieve optimal maturity profile and financing cost.
The company's main interest rate risk arises from borrowings with variable rates, which expose the company to future cash outflow . The company's borrowings at variable rate were mainly denominated in INR.
Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further the calculations for the unhedged floating rate borrowing have been done on the notional value of the foreign currency (excluding the valuation)
30. During the year, there were no imports of raw materials, stores and spares or capital goods and there was no remittance in foreign currency on account of dividends.
31. There was no earning/remittance in foreign currency.
32. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Rs. Nil).
33. In opinion of the directors, contingent liability provided is Rs.4.08 lacs (Rs.4.08).
34. Fair Value Of Investment Property :
There is no Investment in Property so it is not applicable
35. Details Of Benami Property Held :
The company does not held any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. Where any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
36. Relationship With Struck Off Companies :
The Company does not have any transactions with companies struck off
37. Borrowings Obtained On The Basis Of Security Of Current Assets:
Where the Company has obtained the borrowing from bank & financial institutions on the basis of Security of Current Assets, quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts
38. Revaluation Of Property, Plant And Equipment And Intangible Assets:
The Company has not done revaluation of PPE / Intangible assets.
39. Utilization Of Borrowed Funds And Share Premium :
There is no unutilised amounts in respect of any issue of securities and long term borrowings from banks and financial institutions. The borrowed funds have been utilised for the specific purpose for which the funds were raised
40. Undisclosed Income :
The Company does not have any such 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.
41. Details of Crypto Currency or Virtual Currency:
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
42. Registration of Charges or Satisfaction with Registrar of Companies:
The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period
43. Compliance with Number of Layers of Companies:
The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.
44. This is to state and certify that the company has carried out the Stock taking activities as required by law and following observation were found:
As per the above table Company has submitted the stock statement being well before actual stock taking. Since the Actual Stock was higher as compared to Stock submitted to the Bank.
45. As informed by the management of the company none of the balance of Trade payable is of MSME entities.
46. Figures have been rounded off to the nearest rupee and previous year's figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year's figures.
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