TERMS/RIGHTS ATTACHED TO EQUITY SHARES
The Company has only one class of equity shares having par value of Rs.10 per share. Each shareholder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders 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.
Nature of Security:
Term Loan of Rs.6,00,00,000/- Secured by 1. Exclusive 1st charge by way of extension of equitable mortgage of Factory at Block No. 351/P, 353/P and 358 opposite Bhagyoday Hotel, Sarkhej Bavla Highway, Mouje: Changodar, Tal.: Sanand, Dist.: Ahmedabad with Land and construction thereon. 2. Exclusive 1st charge by way of hypothecation of entire machineries, electrical installations, furniture and fixtures, office equipments and other movable fixed assets of the company situated at the above mentioned factory, present and future. 3. Demand Promisory Note and 4. Deed of Guarantee.
Working Capital loan from Bank
Secured by 1. Exclusive 1st charge by way of extension of equitable mortgage of Factory at Block No. 351/P, 353/P and 358 opposite Bhagyoday Hotel, Sarkhej Bavla Highway, Mouje: Changodar, Tal.: Sanand, Dist.: Ahmedabad with Land and construction thereon. 2. Deed of Hypothecation of Stock and Book Debts. 3. Deed of Guarantee.
Reasons for Difference: -
• The differences in inventories is majorly on account of goods in transit where the goods have been physically dispatched from the Company location however, the same has not been considered as revenue from the purpose of revenue recognition principles and hence reversed from books of accounts for respective quarter ends.
• The management, basis their understanding with banks, submits stock statement of physical stock as available at respective locations at the period end. Accordingly adjustment for goods in transit (inward and outward) is not considered for the purpose of filing returns with banks.
• Impact of sales reversal/adjustments arising out of provision for debit and credit notes/freight adjustments / non- adjustment of advance received from customers not considered in returns/ statements submitted to the bank. Also sale of by-product and scrap has not been considered while filing the returns with banks.
Terms and conditions of transactions with related parties
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided for any related receivables or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken at each financial year through examining the financial position of the related party and the market in which the related party operates.
31.2 Defined benefit plans:
The Company has following post-employment benefits which are in the nature of defined benefit plans:
(a) Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan administered bya Trust and the Company makes contributions to recognised Trust.
32 FINANCIAL INSTRUMENTS, RISK MANAGEMENT, OBJECTIVES AND POLICIES 32.1Category-wise Classification of Financial Instruments
The company's Financial Assets and Financial Liabilities are measured at Amortised Cost as on 31st March 2025. The management assessed that cash and cash equivalents, other bank balances, trade receivables, other financial assets, trade payables, bank overdrafts, investments and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
32.2 - Financial Risk Management
The company's Board of Directors has overall responsibility for the establishment and oversight of the company's risk management framework. The company's risk management policies are established to identify and analyse the risks faced by the company, to set
appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company's activities.
32.3 - Credit Risk Management
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly.
32.4 LIQUIDITY RISK
Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash flows.
32.5 MARKET RISK
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.
The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limits and policies.
a) Interest rate risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company's position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings
b) Foreign currency risk
The company does not operate internationally and hence not exposed to currency risk on account of its receivables or payables in foreign currency.
c) Commodity Price Risk
Principal Raw Material for company's products is edible and non-edible oil. Company sources its raw material requirements from domestic markets. Domestic market price generally remains in line with international market prices. Volatility in oil prices, currency fluctuation of rupee vis a vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of edible and non-edible oil. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.
33. Capital management
For the purposes of the Company's capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company's Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants. The Company Monitors capital using gearing ratio, which is net debt divided by total equity plus debt.
34. Letters of balance confirmation have been sent to various parties and are subject to confirmation and reconciliation, if any.
35. Previous year's figures have been regrouped/re-arranged/recasted, wherever necessary, so as to make them comparable with current year's figures.
36. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.
37. In terms of Ind AS 36 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.
38. Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended 31st March, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
39. The company uses an accounting software for maintaining its books of account which has a feature of recording audit trail ( edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software, except that audit trail feature is not enabled for certain direct changes to the data for users with the certain privileged access right to the ERP application. Further, no instance of audit trail feature being tempered with was noted in respect of the accounting software. Presently, the log has been activated at the application and the privileged access to ERP continues to be restricted to limited set of users who necessarily require this access for maintenance and administration of the database.
40. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
41. The company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
42. The Company do not have any charges or satisfaction which is yet to be registered with the ROC beyond the statutory period.
43. The Company have not traded or invested in Crypto currency or virtual currency during the current financial year.
44. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961.
45. The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority
46. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year
47. 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.
48. Segment Reporting: The Company has only one segment of Manufacturing Edible/ Non-Edible Oils, Oil Cakes and 'D' Oil Cake.
49. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the lntermediary shall: a. directly or indirectly lend or invest in other persons orc entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) orb. 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) or entity(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 to or on behalf of the ultimate beneficiaries
50. EVENTS OCCURRED AFTER THE BALANCE SHEET DATE:
The company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of May 30, 2024, there were no subsequent events to be recognized or reported that are not already previously disclosed.
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