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II.
2.33
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OTHER NOTES ON ACCOUNTS. CONTINGENT LIABILITIES
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S.No.
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Particulars
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As at 31.03.2026 ' in lakhs
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As at 31.03.2025 ' in lakhs
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a)
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Guarantees issued by Banks on behalf of the Company (The above Guarantee is given to KSEB as CCD)
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-
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129.49
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b) There was a contingent liability amounting to Rs.6209 Lakhs relating to a levy of electricity duty on the Company’s erstwhile Thermal Power Plant situated at Raipur, Chattisgarh State. While the Company has obtained a stay from the High Court of Chattisgarh against recovery of dues, the Company in the meanwhile settled the entire princpal amount to the Government of Chattisgarh to the tune of Rs.957 lakhs which was paid in FY 2024-25. According to the policies of Government of Chattisgarh, the Company is eligible for exemption from interest payment and the Company has applied for the same and is awaiting orders.
c) There is due’s relating to Custom Duty Rs.158 Lakhs on import of Manganese Ore for the year 2011-12 Financial risk management
Financial risk factors
The Company ’s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company’s operations. The Company’s principal financial assets include loans and advances, investment in equity instruments and mutual funds, trade receivables and cash and bank balances that arise directly from its operations. The Company also enters into derivative transactions to hedge foreign currency and interest rate risks and not for speculative purposes. The Company is exposed to market risk, credit risk and liquidity risk and the Company’s senior management oversees the management of these risks.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates.
Currency risk
Foreign currency risk is the risk that fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. For mitigating exposure to foreign exchange risk, the Company adopts a policy of selective hedging based on the risk perception of the management. The Company has entered into foreign currency forward contracts and cross currency swap contracts.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings. To manage this, the Company has entered into interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount.
Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, letters of credit and working capital limits.
2.34 DISCLOSURE ON “EMPLOYEE BENEFITS” AS PER IND AS 19:
Defined Benefit Plan:
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employee last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service
2.42 Other Statutory Information:
(i) The Company does not have Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(iii) 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, survey or any other relevant provisions of the Income Tax Act, 1961.
(iv) The Company has not provided any guarantee or security / granted loans and advances in nature of loans, secured or unsecured to Companies, firms, LLP or Other Parties.
The MCA vide notification dated 24th March, 2021 has amended Schedule III to the Companies Act, 2013 in respect of
certain disclosures. Amendments are applicable from 1st April, 2021. The Company has incorporated the changes as per
the said amendment in the financial statements and has also changed comparative numbers wherever it is applicable.
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