3.14 Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation, in respect of which a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.
18.1 Vehicle Loans from Bank are secured by hypothecation of Trucks and Motor Cars for which loan has been taken.
18.2 The Commercial Vehicle Loan taken from HDFC Bank and GECL on the same is secured against hypothecation of Trucks purchased against the same.
18.3 Loan against residential Property taken from ICICI Bank and Top Up Loan on the same is secured by mortgage of Residential Flat purchased by the Company at Surat. Loan against office building taken from ICICI Bank is secured by mortgage of Office Building purchased by the Company.
18.4 Term Loans from Banks includes ECLGS is secured by hypothecation of Assets created out of Bank Finance. The rate of interest of TL is 9.25% as at the year end.
42. SEGMENT REPORTING
In line with Ind AS - 108 on 'Operating Segments', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. “AAC Blocks Division”.
44. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
B. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
(i) credit risk
(ii) liquidity risk
Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the risk management framework.
The Board of Directors has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Company, through its management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The financial risk disclosures presented are only illustrative and reflect the facts and circumstances of the Group. In particular, Ind AS 107 requires the disclosure of summary quantitative data about an entity's risk exposures based on information provided internally to an entity's key management personnel, although certain minimum disclosures are also required to the extent that they are not otherwise covered by the disclosures made under the 'management approach' above.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers, loans and investments in debt securities.
The carrying amounts of financial assets and contract assets represent the maximum credit exposure.
Impairment losses on financial assets and contract assets recognised in profit or loss were Nil.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's objective when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
47. RELATED PARTY RELATIONSHIP AND TRANSACTION A. Name of Related Parties & Nature of Relationships
a) Subsidiary Company
1. Starbigbloc Building Material Pvt. Ltd.
2. Bigbloc Building Elements Pvt. Ltd.
3. Siam Cement Bigbloc Construction Technologies Pvt. Ltd.
b) Enterprises Controlled by Key Managerial Personnel & their relatives
1. Mohit Industries Limited
2. Soul Clothing Pvt. Ltd.
45. ADDITIONAL INFORMATION AS REQUIRED BY PARA 7 OF GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS
(other than already disclosed above) are either Nil or Not Applicable.
46. Previous Year Figures have been regrouped/rearranged wherever necessary.
3. Mohit Exim Pvt. Ltd.
4. Mohit Texport Pvt. Ltd.
5. Mask Investments Limited
c) Key Managerial Personnel
1. Narayan S. Saboo
2. Naresh S. Saboo
3. Mohit N. Saboo
4. Manish N. Saboo
Explanation: There was no income generated from investment activity during current year.
As per our Audit Report Attached For & on Behalf of Board of Directors
For RKM & CO. Naresh Saboo Narayan Saboo
Chartered Accountants Managing Director Director
Firm Registration No.: 108553W DIN: 00223350 DIN: 00223324
Manish R. Malpani Mohit Saboo Alpesh Makwana
Partner Director & CFO Company Secretary
Membership No.: 121031 DIN: 02357431
Place: Surat Date: 7th May, 2024
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