(b) Terms/Rights attached to equity shares
The Company has only one class of Equity Shares having a par value of Rs 10. Each holder of Equity Shares is entitled to one vote per share. There are no restrictions attached to any Equity Shares. The Company declares and pays dividends, if any, in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the share holders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the respective shareholders.
(c) Details of Bonus Shares
The Company issued 533750 Equity Shares as Bonus Shares in the ratio of 5:1 during the year 1989-90 and 960750 Equity Shares as Bonus Shares in the ratio of 10:3 during the year 1992-93.
22 2272 12.5% Fully Convertible Debentures of Rs.125 each allotted on 25th January, 1993 have not been converted into fully paid equity shares since allotment money has not been received. Additions to subscribed and paid up share capital will be made as and when allotment money is received.
23 Accounts relating to allotment money in arrears of Fully Convertible Debentures are not reconciled.
24 The Company has not recognized Deferred Tax Asset in respect of losses under the Income Tax Act, 961, considering prudence in terms of Accounting Standard 22 ‘Accounting for Taxes on Income‘ issued by the Institute of Chartered Accountants of India.
25 Employee Benefit
The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The scheme is funded with an insurance company in the form of qualifying insurance policy.
The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.
30 Financial Risks Management
In the course of business, amongst others, the Company is exposed to several financial risks such as Credit Risk, Liquidity Risk, Interest Rate Risk, Exchange Risk and Commodity Price Risk. These risks may be caused by the internal and external factors resulting into impairment of the assets of the Company causing adverse influence on the achievement of Company’s strategies, operational and financial objectives, earning capacity and financial position.
The Company has formulated an appropriate policy and established a risk management framework which encompass the following process.
- identify the major financial risks which may cause financial losses to the company
- assess the probability of occurrence and severity of financial losses
- mitigate and control them by formulation of appropriate policies, strategies, structures, systems and procedures
- Monitor and review periodically the adherence, adequacy and ei cacy of the financial risk management system.
The Company enterprise risk management system is monitored and reviewed at all levels of management, Audit Committee and the Board of Directors from time to time.
Credit Risk
Credit Risk refers to the risks that arise on default by the counterparty on its contractual obligation resulting into financial loss to the company. The Company may carry this Risk on liquid assets and some of the non current financial assets.
The credit risk on cash & cash equivalent, investment in fixed deposits, liquid funds and deposits are insignificant as counterparties are banks or mutual funds with high credit ratings assigned by the rating agencies of international repute.
Liquidity Risk
Liquidity Risk arises when the Company is unable to meet its short term financial obligations as and when they fall due.
The Company maintains adequate liquidity in the system so as to meet its all financial liabilities timely.
Interest Rate Risk
Generally market linked financial instruments are subject to interest rate risk. The Company does not have any market linked financial instruments both on the asset side as well liability side. Hence there is no interest rate risk linked to market rates.
However the interest rate in respect of borrowings by the Company from others are at a fixed rate. Any fluctuation in the same either on higher side or lower side will result into financial loss or gain to the company.
31 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.
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 and issue new shares.
32 Other Statutory Information:
i. The Company do not have any Benami Property and neither any proceedings have been initiated or is pending against the Company for holding any Benami Property.
ii The Company has not borrowed any fund from banks or financial institutions and as such is not required to file quarterly returns orstatements of current assets with banks or financial institutions.
iii The Company has not been declared a willful defaulter by any bank or financial institution or any other lender during the current period.
iv. The Company do not have any transactions with companies struck off.
v The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. However certain charges are being reflected on the website of MCA against the name of the Company for which Company has taken necessary steps for removal of the same.
vi The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vii 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 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
viii The loan has been utilised for the purpose for which it was obtained and no short term funds have been used for long term purpose.
ix 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.
x The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
xi The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
xii The Company has complied with the number of layers prescribed under the Companies Act, 2013.
xiii The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
|