13.4 Rights, Preferences and Restrictions attached to the shares:
The company has only one class of equity shares having face value of Rs. 10/- each. The holder of the equity share is entitled to dividend right and voting right in the same proportion as the capital paid-up on such equity share bears to the total paid-up equity share capital of the company. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company in the same proportion as the capital paid-up on the equity shares held by them bears to the total paid-up equity share capital of the company.
13.5 During the audit period, Mr. Manmohan Shreegopal Agrawal and Swanayra Global LLP, both belonging to the "promoter group”, purchased 3,000 shares each from the open market.
During the previous financial year 2023-24, the company underwent significant changes in its management team and a change in promoter ownership. These changes included the appointment of new key executives and a transfer of ownership control from the previous promoters to new ones.
Bank CC- ABL from State Bank of India is collaterally secured by way of equitable mortgage of immovable property located at A-13, Snow Pearl Society, Vasna Road, Vadodara, Gujarat standing in the name of director's wife.
Bank CC- WCDL(WHR) from State Bank of India is primarily secured via hypothecation of underlying stocks for which WHR has been issued. Further, the loan is personally guaranteed by 3 directors and wife of one of the directors of the company namely Sarvesh Manmohan Agrawal, Manmohan Shreegopal Agrawal, Jagdishprasad Agrawal and Priti Agrawal respectively.
4 7 A
17.2 The company has certain payables outstanding to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The company has mutually agreed credit from the concerned suppliers and creditors. None of the amounts are due beyond the stipulated time period and accordingly interest beyond 45 days is neither applicable nor paid. Thus, the same has not been provided for in the books of accounts.
27.1 During the previous financial year 2023-24, at various times, the company had divested it's investments in entities including it's subsidiaries, thereby impacting the activities and financials during the comparative periods. In view of the same the prior periods are not entirely comparable.
For the purpose of the Company's capital management, capital includes issued equity capital, security premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company determines the amount of capital required on the basis of annual operating plans and longterm and other strategic investment plans. The funding requirements may be met through equity, nonconvertible debentures and other long-term/ short-term borrowings.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company does not have any debt, interest bearing loans and borrowings.
The Financial risk management is practices and procedures that a Company uses to optimize the amount of risk it handles with financial interest. The Risk management is done to identify how risks associated with the Company will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the organization to provide a clear understanding of risk/ benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The company does not have any loans and borrowings during the year under consideration.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team. The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:
Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The Company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has outstanding borrowings in the form of bank overdraft payable on demand.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:
35. OTHER NOTES
35.1 The Financial Statements were approved by the Board of Directors on 16.05.2025
35.2 Figures for the comparative periods have been regrouped wherever necessary in conformity with present classification.
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