* Fixed deposit 3-12 months include margin money of Rs 44,000 is equal to 5% margin on Bank Guarantee of Rs 8.79 Lakh (Previous Year 2021-22 Rs. 8.79 lakhs) issued to RRVUNL to secure the order of 87.95 Lakh of supply of our product Liquid Chlorine and Hydrochloric acid.Now Contract had completed but margin money still not released from bank (Current year 2022-23- Rs 0.50 (Including interest) Previous Year 2021-22- Rs 0.44) .
* Fixed deposit 3-12 months include margin money of Rs. 5,00,000 is equal to 5% margin on Foreign Letter of Credit of USD 1,24,339.66 to procure the order of Plant & Machinery from The Chemrous Company FC, LLC USA .Current year as on 31.03.2023 is NIL ( Pevious Year 2021-22 Rs. 5 Lakh)
(iii) Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares with paid up value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share on all resolutions submitted to shareholders. They have right to participate in the profits of the company, if declared by the Board as interim dividend and recommended by the Board and declared by the members as final dividend. They are also entitled to bonus/right issue, as declared by Company from time to time. They have right to receive annual report of the Company, beside other rights available under the Companies Act and Listing Regulations.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, beside other rights available under the Companies Act.
The distribution will be in proportion to the number of equity shares held by the shareholders.
(iv) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way of bonus shares and shares bought back for the period of 5 years immediately preceding the balance sheet date
The Company has not issued any shares pursuant to contract(s) without payment being received in cash.
No bonus shares have been issued in preceding 5 years.
The Company has not undertaken any buy back of shares.
Note:-
i) Capital Reserve
The company recognise profit & loss on forfeiture of the company's own equity instruments to capital reserve
ii) Security Premium Reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Companies Act, 2013
iii) Retained Earning
* The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Based on information received and available with the Company, there are no amounts payable other than disclosed above to Micro and Small Enterprises as at March 31, 2023 and March 31 2022.
# Details of Corporate Social Responsibility (CSR) expenditure is as follows:
The requisite disclosure relating to the CSR expenditure in terms on guidance note on corporate social responsibility issued by Institute of chartered accountant of India.
i) Gross amount required to be spent by the Company during the year (i.e. 2% of Average Net profits u/ s 198 of Companies Act, 2013 of last three years): Rs. 35.94 lakhs and actually spent Rs. 37.50 lacs)
ii) Amount spent during the previous year ended on March 31, 2022, Rs. 29.00 lakhs
Note :
During the year the Company was required to spent an amount of Rs. 35.94 lakhs . The actual amount spent of Rs. 37.50 lakhs represents CSR expenditure for the current year. During the financial year 2021-22 expenditure incurred Rs. 29.00 Lacs
# Lease related disclosures
The Company has lease for office building and factory lease hold land. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use assetanda lease liability as a borrowings. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.
For leases previously classified as finance leases the entity recognised the carrying amount of the lease asset and lease liability immediately before transition as the carrying amount of the right of use asset and the lease liability at the date of initial application. The measurement principles of Ind-AS 116 are only applied after that date.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office building the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease.
B Total cash outflow for leases for the year ended 31 March 2023 was Rs 174.41 lakh(i.e.95.77 is short term and Rs 78.64 is long term ) [Previous year 2021-22 Rs. 187.46 lakh( i.e.108.82 is short term and Rs 78.64 is long term )]
40A Financial instruments (i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement; as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Other noncurrent financial assets and non-current borrowings bear a market interest rate and hence their carrying amounts are also considered a reasonable approximation of their fair values.
40B Financial risk management
The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The company1 s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.
- cash and cash equivalents,
- trade receivables,
- loans & receivables carried at amortised cost; and
- deposits with banks
Credit risk management
Credit risk rating
The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.
Trade receivables
Company's trade receivables are considered of high quality and accordingly no life time expected credit losses are recognised on such receivables.
Other financial assets measured at amortised cost
Other financial assets measured at amortized cost includes advances to employees. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.
B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.
Management monitors rolling forecasts of the Company*s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company*s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Maturities of financial liabilities
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
41 Segment information
The Company's primary business segment is reflected based on principal business activities carried on by the Company i.e. Caustic soda and other chemicals, which as per Ind AS 108 on "Segment Reporting” as specified under Section 133 of Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) is considered to be the only operating segment. The Company is primarily operating in India which is considered as a single geographical segment.
1. Pending resolution of the respective proceeding it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/ decisions pending with various forums/ authorities.
2. The Company has reviewed all its pending litigations and proceeding and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of theses proceeding to have a materially adverse effect on its financial position. The Company does not expect any reimbursements in respect of the above contingent liabilities.
B Commitments (net of advance):
Estimated amount of contracts remaining to be executed on capital account Rs. 772.63 Lakh, (Previous year: 31 March 2022: Rs. 53 Lakh).
44 Unclaimed amount in respect of debentures and excess share application money refundable Rs. 11.64 lakhs, (Previous year: 31 March 2022: 11.64 lakhs ) is required to be transferred to the "Investor education and protection fund” in terms of section 125 of the companies act, 2013. the company is taking stqos to reconcile the above accounts and deposit the amount with the appropriate authorities.
Authorisation of financial statements
45
These financial statements for the year ended 31 March 2023 were approved by the Board of Directors on 23th May 2023.
46 The figures have been rounded off to the nearest Rs. lakhs upto two decimals.
47 Additional Regulatory Information:
1) Company has no freehold immovable property during the year.
n) The Company has not revalued its Property, Plant and Equipments during the year.
iii) The company has not made any loan or advances in the nature of loans to promoters, directors, KMPs, and the related parties .
iv) The company do not own or hold any Benami Property under the Benami Transactions (Prohibition) Act,1988(45of 1988) and the rules made there under.
v) The statements of current assets filed by the company with banks are in agreement with the books of accounts.
vi) The company is not declared a Willful Defaulter by any bank or financial institutions.
vii) The company do not have any transactions with companies stuck off under section 248 of the companies Act,2013 or section 560 of companies Act,1956.
viii) All Registration of charges or satisfaction are registered with Registrar of Companies (ROC).
ix) No Scheme(s) of Arrangements has been approved by the competent authority in terms of section 230 to 237 of the companies Act,2013 .
x) The company has utilised long therm borrowed fund for long term purpose only and short term fund for short term purpose only.
xi) During the year no income was surrendered or disclosed as income in the Tax Assessments
xii) The company has not dealt in Crypto Currency during the year.
xiii) The company is not having downstream companies or layers of companies prescribed under clause (87) of section 2 of the Act read with companies (Restriction on number of layers) Rules,2017.
xiv) The Company has not advanced or loaned or invested funds to any other person or entities with an understanding that the intermediary will invest or provide any guarantee, security or the like to or on behalf of ultimate beneficiaries .
xv) The Company has not received any fund from any person (s) or entity(s), including foreign entities( Funding party) with the understanding that the company shall directly or indirectly invest or provide any guarantee, security or the like to or on behalf of funding party.
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