a) Company has written off the outstanding receivable balance amounting to INR 4,458.88 Lakhs against which the provision forbad and doubtful debts was already made through profit and loss account during the financial years 2015-16 and 2018-19. During the year ended March 31,2024, the company had successfully recovered INR 3,476.91 Lakhs from the debtor as a full and final settlement and the same has been disclosed as exceptional item. Consequently, the Company reversed the provision for bad and doubtful debts during the year ended March 31,2024, and written off the remaining receivable balance of Rs. 981.97 Lakhs.
(a) The Company had receivable balance against the advances paid to one Vendor amounting to INR 634 Lakhs, against which provisions for bad and doubtful debts were previously accounted for in the statement of profit and loss for the 2018-19. The Company reversed the provision forbad and doubtful debts during the year ended March 31,2024, and written off the receivable balance of Rs. 634 Lakhs as decided by the management. Accordingly, the balance post and adjustment has been disclosed above.
Right and restrictions attached to shares
Equity Share : The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The Equity share of the Company has been sub-dividend from face value of Rs. 10 each of face value of Re. 1 each w.e.f. 04th March, 2016, the record date pursuant to the shareholders approval through postal ballotdates 12th Februaty, 2016.
Notes:
Nature and Purpose of Reserve
(A) Created on the issue of shares at premium. It shall be utilized as perthe provisions of the CompaniesAct 2013.
(B) General Reserve is created out of the profits earned/Losses incurred by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividends and issue of fully paid-up shares. As General Reserve is created by transfer of one component of equity to another and is notan item of other comprehensive income, items included in General Reserve will not be reclassified to statement of profit and loss.
a) Disclosure underthe Micro, Small and Medium Enterprises Development Act, 2006
There are few Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2024. This information as required to be disclosed underthe 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.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The company's pending litigations comprise of claims against the company and proceeding pending with Statutory and Tax authorities. The company has reviewed all its pending litigations and proceedings and has made adequate provisions, whenever required and disclosed the contigent liabilities wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materials impact on itsfinancial position.
30 Employee benefit plans
1) Defined contribution plans:
The Company participates in defined contribution plans on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.
The defined contribution plans are as below:
a) Provident fund
In accordance with the Employee's Provident Fund and Miscellaneous ProvisionsAct, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions which are charged to the Statement of Profit and Loss in the period they are incurred. The benefits are paid to employees on their retirement or resignation from the Company.
2) Defined Benefit Plans:
The Defined Benefit Plan is as below:
Gratuity
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. It provides for lump sum payment to vested employees at retirement, on death while in employment or on termination of the employment in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company's Scheme, as applicable. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable based on an actuarial valuation.
The plan typically exposes the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk. Interest risk Longevity risk Salary risk
The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at 31st March, 2024 by an independent actuary. The present value of the defined benefit obligation, the related current service cost and pastservice costwere measured using the projected unit credit method.
G. SensitivityAnalysis
The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the SensitivityAnalysis from previous year.
34. Some of the balances of Trade Receivables, Deposits, Loans & Advances, Advances received from customers, Liability for expenses and Trade Payables are subject to confirmation from the respective parties and consequential reconciliation/adjustment arising there from, if any. The management, however, does not expect any material variation.
35. Segment Reporting
The company has identified Manufacturing and Trading of "Stainless Steel Tubes & Pipes", as its only primary reportable segment in accordance with requirements of Indian Accounting Standards 109 "Operating Segments". Accordingly no separate segment has been provided.
36. Disclosure in respect of Corporate Social Responsibility Expenditure (CSR) is as under.
(a) CSR amount required to be spent as per Sec 135 of the Companies Act 2013, read with schedule VII thereof by the Company during the year is Rs. 27.65 lakhs
38. Financial instruments and Risk Management
38.1 Capital Management
The capital structure of the Company consist of net debt ( borrowings offset by cash and bank balances) and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern. The Company's management review it's capital structure consisting the cost of capital, the risk associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due.
38.2 Categories of financial instrument
The following table provides categorisation of all financial instrument at carrying value.
38.3 Financial risk management
The financial risk emanating from the company's oprating bussiness include market risk, credit risk and liquidity risk. These risks are managed by the company using appropriate financial instrument. The Company has laid down written policies to manage these risks.
38.3.1 Market risk management
Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprise of Currency risk, Interest rate risk and other price risk.
A. 1 Foreign Currency sensitivity analysis:
The Company's exposure for foreign currency changes for all currencies is not material.
B. Interest rate risk management
The Company does not have interest rate risk exposure on its outstanding loan as at the year end as these loans are short-term loans on fixed interest rate basis.
38.3.2 Credit risk management
Credit risk arises from the the possibility that a counter party's inability to settle its obligations as agreed in full and in time. The maximum exposure to credit risk in respect of the financial assets at the reporting date is the carrying value of such assets recorded in the financial statement net of any allowance for losses.
The Company had an outstanding receivable balance from one of the debtors amounting to INR4,458.88 Lakhs, against which provisions for bad and doubtful debts were previously accounted for in the profit and loss accounts for the financial year 2015-16 and FY2018-19. During the quarter ended 31st March, 2024, the company has successfully recovered INR 3,476.91 Lakhs from the debtor as a full and final settlement and the same has been disclosed as exceptional item.
Consequently the Company reversed the provisions for bad and doubtful debts during the quarter ended 31,2024, and wrote off the remaining receivable balance of Rs. 981.87 Lakhs.
B. Other FinancialAssets
The Company maintain exposure in cash and cash equivalents, time deposits with bank. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value each class of financial assets.
38.3.3 Liquidity risk management .Liquidity risk table
The following table details the company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table have been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company can be required to pay. The table include principle cash flow along with interest.
40.ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III i. Details of benami property held
No proceedings have been intiated on are pending against the company for holding benami property under the Benami Transactions (Prohibition)Act, 1988 (45 of 1988) and Rules made thereunder.
ii Borrowing secured against current assets
The company does not has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statement of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.
iii Wilful defaulter
The company has not been declared wilful defaulter by any bank or financial institution or any lender.
iv Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
v Compliance with number of layers of companies
The company has complied with the numberof layers prescribed underthe CompaniesAct, 2013.
vi Compliance with approved scheme(s) of arrangements
The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
vii Utilisation of borrowed funds and share premium
The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (International) with the understanding that the Intermediary shall
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
The company has not received any fund from any person(s)orentity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
viii Undisclosed Income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments underthe Income TaxAct, 1961, that has not been recorded in the books of account.
ix Details of crypto currency or virtual currency
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
x Valuations of PP&E, intangible assets and investment property
The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
xi Title deeds of immovable properties not held in name of the company
The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note no. 3 to the financial statement, are held in the name of the company.
xii Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of companies beyond the statutory period.
41 Previous year's figure have been regrouped / recast/ reclassified, wherever necessary.
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