Note No. 31 : Note on Corporate Social Responsibility (CSR):
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:
Explanatory Notes for Ratio Variances Exceeding 25%:
The improvement in the Ratio reflects a strategic reduction in the company’s leverage, driven by repayment of loans and a lower reliance on external borrowings.
(%) Increase in market demand has lead to an increase in stock holding position through out the year.
ROI has decreased as a result of lower investment earnings, largely driven by a decline in market valuations (A) and returns across the investment portfolio.
The decline in the Debtor Turnover Ratio during the year is primarily attributable to higher average trade (&) receivables, indicating a longer collection period compared to the previous year.
v ' The Creditor Turnover Ratio has decreased due to an increase in average trade payables compared to the previous year.
The loans from DBS Bank Ltd., HDFC Bank Ltd., Shinhan Bank Co. Ltd., YES Bank Ltd., Federal Bank Ltd
are secured against Hypothecation of Stock and Book Debts of the Company with pari pasu clause. However the Company is required to file monthly stock statements with all above Banks
Note No. 34A : Related Party Disclosure (with whom transactions exist):
Disclosure requirements as per Ind-AS-24 “Related Party Disclosure” and terms and conditions of transactions are as follows:
The sales & services provided and received from related parties are made on terms equivalent to those that prevail in arms length transactions. Outstanding balances at the year-end are unsecured, interest free and will be settled in cash. There have been no guarantees received or provided for any related party receivables or payables.
Note No. 36A : Segment Reporting
Segment wise disclosure information as per Ind-AS-108 on “Operating Segment” is as below:
A. General Information
1. Segments have been identified in line with the Ind-AS-108.
2 Business segment have been identified on the basis of nature of the products/services, the risk-return profile on individual basis.
Company has disclosed Business Segment as the primary segment. The risk-return profile of the 3. company’s business is determined predominantly by the nature of its products and services. Accordingly, business segments constitute the primary segment for disclosure of segment information.
5 The Segment Revenue, Results, Assets and liabilities include the respective amounts identifiable and amounts allocated on reasonable basis.
The Managing Director of the Company, Mr. Umesh Lahoti, acts as the Chief Operating Decision Maker 6. (“CODM”) The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments.
B. Information about Major Customers
1 Revenues of approximately ? 33,431.96 lakhs (Previous year 31st March, 2024 ? 44,306.12 lakhs) are derived from the following top five external customers:
Segment Reporting : Segment identification, reportable segments
i) Primary/secondary segment reporting format:
The risk-return profile of the company’s business is determined predominantly by the nature of it’s products and services. Accordingly, business segments constitute the primary segment for disclosure of segment information .
ii) Segment Identification:
Business segment have been identified on the basis of nature of the products/services, the risk-return profile on individual basis.
iii) Reportable Segment:
Reportable segment has been indetified as per the criteria specified in Ind AS 108 “Operating Segment” issued by the Institute of Chartered Accountants of India.
iv) The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
Defined Benefit Plan:
a. Gratuity:
The liability in respect of employees is provided in the books based on the actuarial valuation. At the time of actual payment of Gratuity, the gratuity payable account is credited.
b. Leave encashment:
The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, value based on salaries including allowances of the last month of the Accounting Year.
Reconciliation of Defined Benefit Obligation and fair value of plan assets is as under: a. Actuarial Assumptions
The financial and demographic assumptions on annual basis used for valuation as at the Valuation Date are shown below. The assumptions as at the Valuation Date are used to determine the Present Value of Defined Benefit Obligation at that date.
i. Provisions:
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated. If the effect of time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
ii. Contingent liabilities:
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 embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
(ii) GST Matter (Demand raised, pending for Appeal filing)
An appeal has been filed under GST against a demand of ?25.56 lakhs for the Financial Year 2018-19, arising from purchases made from a non-GST compliant party. The outcome of the appeal is pending as of the balance sheet date.
Notes forming part of the Standalone Financial Statements
iii. Contingent Assets:
Company doesn’t have any Contingent assets, hence are not recognized.
Note No. 41 : Foreign Currency Transactions
a. Initial Recognition:
Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.
b. Conversion:
At the year-end, monetary items in foreign currencies are converted into rupee equivalents at the year-end exchange rates.
c. Exchange Differences:
All exchange differences arising on settlement and conversions of foreign currency transactions are included in Other Comprehensive Income.
d. Forward Exchange Contracts:
In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the spot rate is recognized as gain/loss. The gain by way of premium on open forward contracts as on the reporting date is amortized over the period of contract on pro-rata basis. The mark to market gain or loss on open forward contracts being the difference between forward contracts booked at spot rate and rate prevailing at the year- end date is recognized in Other Comprehensive Income.
a. Lease Expense
Ind AS 116 is effective from April 2019, Ind AS 116 replaces the existing standard Ind AS 17 and specifies how an entity will recognize, measure, present and disclose leases.
The company has certain operating leases with subsidiary/associate company not of material value for office facilities. Such leases are generally with the option of renewal, with termination at short notice and there exist no formal agreement to categorize it as a Right of Use asset (“RoU Asset”) for long term basis and accordingly capitalizing the same on Discounted Cash Flow (DCF) basis is not practical. Rental expenses of ? 19,20,000 (31st March, 2024: ? 19.20,000) in respect of obligation under operating leases have been recognized in Statement of Profit and Loss for the year.
b. Lease Income:
The company has certain investment properties let out under lease/right-to-use agreements. The said agreements are in the nature of operating leases, which generates a material value in the form of lease rents.
As per Ind-AS-116 “Leases”, in case of operating leases, the company “lessor” is required to recognise the income generated from the lease on a systematic basis. The company recognises the lease income as and when the payments are due and received on the basis of the lease agreement. As on 31st March, 2025, the company has following investment properties:
The Company owns and operates a Solar Power Plant at Pali District, Rajasthan. The existing PPA (Purchase power Agreement) between the Company and Jodhpur Vidyut Vitran Nigam Ltd. (Jodhpur Discom) expired on 31/03/2019. Thereafter the company approached Jodhpur Discom for the renewal of the PPA, however the application of the Company was rejected by Jodhpur Discom. Jodhpur Discom has rejected the application of all other similar solar power generating units in the said district.
Despite of the non-renewal of the PPA, the Company generated 37,58,466 k/wh and 37,99,999 k/wh of power during the financial year 2019-20 and 2020-21 respectively and continued to recognize the revenue on the basis of the rate mentioned in the expired PPA i.e. ? 3.14 per kilowatt.
Since the PPA was not renewed and it was uncertain at what rate per kilowatt will the Company receive revenue, the conditions for recognising revenue as laid down in Ind AS 119-”Revenue Recognition” were not fulfilled.Therefore, the Company had decided not to recognize any revenue for financial year 20212022 and 2022-23.
The suplementary PPA was executed on 04.09.2023 in FY 2023-24, therefore the company has decided to recognize the revenue for FY 2021-22, 2022-23 and 2023-24 at the rate specified in the PPA i.e. Rs 2.24 and Differential amount of FY 2019-20 was also recognised in FY 2023-24
Note No. 46 : Micro, Small And Medium Enterprises:
With reference to Note No. 38, As at 31st March, 2025, there are Micro, Small and Medium Enterprises, as i. defined in the Micro, Small, and Medium Enterprises Development Act, 2006, to whom the group owes dues. However, no additional disclosures have been made in this regard.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.
Note No. 47 : Transaction with Struck Off Companies:
During the financial year, the Company has not entered into any transactions with companies that have been struck off under the Companies Act, 2013 or any previous company law.
Note No. 48 : Crypto Currency or Virtual Currency:
The Company has not traded or invested in crypto currencies or virtual currencies during the financial year. Further, the Company does not hold any such assets as at 31st March, 2025, and has not received or made any payments in such forms.
No such income has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of accounts.
Note No. 51 : Re-classification of previous year figures:
Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.
The Board of Directors in its AGM had proposed dividend of Rs 58,34,300 on 30/09/2024 and paid on 01/10/2024 for the financial year 2023-24.
The Board of Directors in its meeting has proposed dividend of Rs. 58,34,300 for the financial year 2024-25.
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