c) Terms/rights attached to equity shares:
The Company has a single class of equity shares. Each shareholder is eligible for one vote per share held. The final dividend proposed by the board of directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the assets of the company, in proportion to their shareholding.
1 The amounts due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.
For disclosure pertaining to Micro and Small Enterprises refer note no.32
2 For Trade Payables ageing schedule refer note no.41
29.3 Corporate Social Responsibility (CSR)
Amount of CSR spent by Company during the year is for purposes other than construction / acquisition of any asset. Gross amount of CSR required to be spent by the Company for the year aggregates to Rs. 35.65 lakhs (Previous year Rs. 24.65 lakhs)
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Note :There is no dilution to basic EPS as there are no outstanding dilutive potential equity shares.
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31. Contingent Liabilities & Commitments
Particulars
A. Contingent liabilities in respect of Claims against the company not acknowledged as debt
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As at March 31,
2024 2023
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a)
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Income tax assessment dues for AY 2011-12 under appeal pending before first appellate authority
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- -
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b) Income tax assessment dues for AY 2011-12 under appeal pending before first appellate authority (Interest Income)
B. Commitments
Commitment for capital contracts remaining to be executed 32. Dues to Micro and Small Enterprises
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7.16 7.16
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The details of amounts outstanding to Micro and Small enterprises based on information available with the Company is as under:
As at March 31,
2024 2023
i) The principal amount and the interest due thereon remaining unpaid to any supplier at the end of each accounting year:
- Principal amount due to micro and small enterprises (Not overdue) - -
- Principal amount due to micro and small enterprises (Overdue) - -
- Interest due on overdue - -
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ii)
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The amount of interest paid by the buyer in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.
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iii)
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The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro, Small and Medium Enterprises Development Act, 2006.
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- -
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iv)
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The amount of interest accrued and remaining unpaid at the end of each accounting year.
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- -
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v)
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The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under Section 23 of Micro, Small and Medium Enterprises Development Act, 2006.
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33. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024 and March 31, 2023.
34. The Company did not have any long term contracts including derivative contracts for which any provision is required for the foreseeable losses.
35. Segment reporting
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer and Managing Director.
Since the company has only one primary product line and its operations are restricted to only one geographical area, the financial statements itself may be considered to be the segment results as per the disclosure requirements of Ind AS-108
(Currency : Indian Rupees in lakhs)
38 Details of loans given, investments made and guarantee given covered u/s 186 (4) of the Companies Act, 2013
The Company has not provided loan, investments and guarantee to parties covered u/s 186(4) of the Companies Act 2013
39 Capital Management
The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the
The Company determines the amount of capital required on the basis of annual operating plans and other strategic investment plans. The funding requirements if any will be met through bank borrowings and equity if the need arise.
42.B Fair value hierarchy of financial instruments
Since financial assts and financial liabilities of the Company are not measured at fair value As at March 31, 2024 and As at March 31, 2023 disclosure of fair value hierarchy i.e. Level-1, Level-2 and Level-3 for each financial instrument category is not applicable.
42.C Financial Risk Management 42.C.1 Market Risk:
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
42.C.1.1 Foreign currency exchange rate risk:
(a) The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective entities.
The risks primarily relate to fluctuations in U.S. dollar, Euro, and GBP against the functional currency of the Company.
The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 1%.
42.C.1.2 Interest rate risk:
(a) Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company’s cash flows, income as well as costs.
The Company’s exposure to changes in interest rates relates primarily to a) the loans given by the Company to employees and b) short term borrowings in the form of cash credit and over draft faciltiies. The loans given by the Company in local currency is at a fixed rate and short term borrowings are also at fixed rate.
42.C.2 Credit Risk :
(a) 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 both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of exposure to credit risks.
(b) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 3057.25 lakhs As at March 31, 2024, Rs. 1976.34 lakhs As at March 31, 2023, being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, and other financial assets excluding equity investments.
(c) Financial assets that are either past due or impaired
None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables, other loans or receivables and other financial assets that are neither impaired nor past due, there were no indications as at March 31, 2024, that defaults in payment obligations will occur.
(d) Client credit period and client concentration risk:
Trade receivables are non-interest bearing and the average credit period is 60 days. The Company’s exposure to customers is diversified and no customer contributes to more than 10% of revenue.
42.C.3 Liquidity Risk :
(a) 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’s principal sources of liquidity are cash and cash equivalents, loans and advances given to subsidiaries and fellow subsidiaries and the cash flow that is generated from operations. The Company has no outstanding bank borrowings. The Company believes that the working capital is sufficient to meet its current requirements.
42.C.4 Derivative financial instruments and risk management :
(a) The Company enters into derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counter party for these contracts is generally banks and financial institutions.
Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.
(b) The Company does not have any outstanding / open foreign exchange forward contract as at 31-Mar-2024 and 31-Mar-2023
47.B Explanation for change in ratios exceeding 25% compared to previous year
a. Debt-Equity Ratio - The Company avails only short term borrowings in the form of cash credit and overdraft facility. The decrease in ratio is due to lower utilisation of cash credit limit as at the current period compared to previous year.
b. Return on Equity Ratio - The main reason for reduction in return on equity is reduction in profits compared to previous year.
c. Trade Receivables turnover ratio - The main reason for change is reduction in turnover and increase in trade receivables compared to previous year.
d. Trade payables turnover ratio - The main reason for change is increase in trade payables compared to previous year.
e. Net profit ratio - Reduction in net profit ratio is attributable to increase in the basic raw-material prices without commensurate increase in sales price due to market forces
f. Return on Capital employed - Return on capital employed is reduced due to reduction in profit in the current year.
g. Return on investment - During the current year increase is due to unrealised faie value gain on non current investments i.e. equity securities.
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