e) Rights, preference and restriction attached to equity shares
The company has only one class of equity shares having par value of ? 10 per share. Each holder of equity share 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 realised value of the assets of the company, remaining after payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of Security for Secured Borrowings (Short Term & Term Loans)
Term loans from Banks & Financial Institutions are secured by first Pari-passu charge on the underlying Property, Plant and Equipment of the company. Short Term borrowings taken as Cash credit are secured by equitable mortgage created on all the immovable assets of the company and further secured by first Pari-passu charge on the entire current assets of the company. Details of securities provided by the company against the debts of banks & financial Institutions are as
NOTE 28: EMPLOYEE BENEFIT OBLIGATIONS
a) Defined Contribution Plans
The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions to these plans payable by the Company are at rates specified in the rules of the schemes.
b) Defined Benefit Plans
Gratuity: Every employee who departs the company after completion of 5 years of service or more is eligible for gratuity calculated at fifteen days salary (last drawn salary) for each completed year of service, in accordance with the Payment of Gratuity Act, 1972. The same is payable at the time of separation or retirement, whichever is earlier. The benefits vest after 5 years of continuous service.
Compensated absences: The employees of the Company are entitled to leave encashment for each year of service and part thereof and subject to the limits specified the unavailed portion of such leaves can be accumulated or encashed during/at the end of the service period. The plan is not funded. Leave Encashment liabilities are being accounted for by the company on due basis.
NOTE 29: CONTINGENT LIABILITIES AND COMMITMENTS
The company has not paid its creditors amounting to ? 24.05 Crores against GST purchases, which are due but not paid for more than 180 days. Subject to the provisions of section 16 (2) of CGST Act, 2017, input Tax Credit of GST taken has to be reversed and could be availed when the principle amount is paid. In view of above, there may arise interest and penalty subject to the provisions of the CGST Act, 2017.
NOTE 30: MICRO, SMALL AND MEDIUM ENTERPRISES
With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Enterprise (MSME) suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status under MSME. Based on the confirmation received, there are 27 parties which have been disclosed as due but not paid under MSME category of the creditors and the amount due is ? 3.69 Crores as on March 31, 2024.
NOTE 31: TRANSFER OF UNPAID DIVIDEND CLAIM TO IEPF
Pursuant to the provisions of section 205A and 205C of the Companies Act, as amended, read with Investor Education and Protection fund (awareness and Protection of Investors) rules, 2001, dividend which remains unpaid or unclaimed for a period of 7 years will be transferred to the Investor Education and Protection Fund of the Central Government. As the company has not declared any dividend as of 31st March 2024, no such amounts were due to be transferred to the IEPF by the Company.
NOTE 34: SEGMENTAL INFORMATION
The Company's operations fall within a single business segment i.e. "Manufacturing CNC Machines", The Company is engaged in the business of developing, manufacturing and marketing of Machine Tool Equipment including wide range of single spindle, patented double and four spindle CNC machines, automated robotic solutions i.e. same type/class of services and has no other operations and as such there is no reportable segment as per Ind-AS 108.
NOTE 35: DEPRECIATION AND AMORTIZATION
Effective from 1st April 2020, method of providing depreciation for Fixed Assets by the Company has been changed to Straight Line Method from Written Down Value Method. This change is aligned with the change in Company's expectation of the pattern of consumption of the economic benefits arising from these assets in future as against the past and technical evaluation.
Till FY20, The Company was following Written Down Value (WDV) depreciation method. Based on evaluation during the year, Company considered to change the depreciation method from WDV to Straight Line Method (SLM) and has given effect from April 01, 2020.
NOTE 42: APPROVAL OF FINANCIAL STATEMENTS
The Financial Statements were considered by the Board of Directors on June 14, 2024.
NOTE 43: Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.
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