11.2 Rights, preferences and restrictions attached to equity shares
The Company has only one class of Equity Shares having a par value of Rs. 10 per shares. Each holder of equity shares is entitled to one vote per share. Any shareholder whose name is entered in the Register of Members of the Company shall enjoy the same rights and be subject to the same liabilities as all other shareholders of the same class.
Dividend, if any, proposed by the Board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company in general meeting can’t declare dividend in excess of the amount recommended by the Board. Dividend as declare in the ensuing Annual General Meeting shall be distributed within the period prescribed under the Companies Act, 2013.
In the event of winding up of the Company, Equity Shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. For the said purpose, the liquidator may set such value as he deems fair upon any property to be divided and may determine how such division shall be carried out between the members.
11.5 The Company has issued 19,09,139 number of right equity shares on conversion of unsecured loan of the directors which is for consideration other than cash and has not issued any bonus shares nor any buy back of shares during five years immediately preceding March 31, 2025.
13.2 Term Loan taken from Bank of Baroda for purchase of Machinery, secured by a charge against the respective Machinery, and is repayable in 34 monthly instalments. The outstanding loan amount as on March 31, 2025, is Rs. 710.13 Lakh. During the period company has purchased a Mercedes car for business use on taking a loan from the Bank of Baroda of Rs. 12954750/-, which is payable in 84 installments
13.3 Additional Working Capital Term Loan (AWCTL) of Rs. 750 Lakh and Rs. 550 Lakh are taken from Bank of Baroda to meet the liquidity mismatch due to the COVID-19 pandemic, in addition to the existing facility under the scheme of BGECLS 1.0 (extension). The term loan is repayable in 5 years from the date of disbursement, including a moratorium period of two years for the principal amount. The Principal shall be repaid in 36 equal instalments interest after the moratorium period is over. One of the loans has been repaid during the year.
13.4 Unsecured loans taken from the directors do not carry any interest. Out of the opening balance of Rs. 381,82,780/- has been converted into equity shares and issued right shares as per details given in Note No. 11, point 4.
16.1 Interest on late payment of Rs. 2,684,738/- (2023-2024 - Rs. 2,684,738/-) and Rs. 18,725/- (2023-2024 - Rs. 18,725/-) has been levied under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Appeal has been filed against this demand in the Court and provision has been created for this liability in the books of accounts. Out of this demand, Rs. 498,387/- has been deposited with the authorities under protest and adjusted with this provision amount.
17.1 Packing Credit, Foreign Bills Limits, Gold Card and Derivatives(Forward Contract) are availed from Bank of Baroda and are secured by hypothecation of present and future stock of raw materials, stock in progress, finished goods, stores and spares, books debts and outstanding receivables.
(a) Capital Management
The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals and aims at maintaining a strong capital base to support the future growth of its businesses.
(c) Financial risk management objectives
The Company’s management monitors and manages the financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest risk and other price risk), credit risk and liquidity risk. Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.
(i) Liquidity Risk
The Company’s Current assets aggregate Rs. 12,737.95 Lakh (2024 - Rs. 11,382.54 Lakh) including Current Investments, Cash and cash equivalents and Other Bank Balances of Rs. 3,319.28 Lakh (2024 -Rs.2986.93 Lakh) against an aggregate Current liability of Rs. 6,725.99 Lakh (2024 - Rs. 6836.30 Lakh).
Further, while the Company’s total equity stands at Rs. 8,639.49 Lakh (2024 - Rs.6,406.16 Lakh) , it has non-current borrowings of Rs. 833.58 Lakh (2024 - Rs. 2986.93 Lakh). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.
(ii) Market Risk
The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion and also as current investments. The market value of investments in such equity instruments as at 31st March, 2025 is Rs.3286.59 Lakh (2024 - Rs. 3248.75 Lakh ). Market risk exposures are measured using sensitivity analysis. There has been no change to the Company’s exposure to market risks or the manner in which these risks are being managed and measured.
(iii) Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss as the company is engaged in exports and realises its sales in US dollars. Considering the countries and economic environment in which the Company operates, its operation are subject to risk arising from fluctuations in exchange rates in the countries to which it exports. The company adopts suitable hedging policy to mitigate the impact of forex fluctuations on routine operations.
(iv) Interest Rate Risk
The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt because it borrow funds at different interest rate
(v) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Company’s bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Credit risk is actively managed through Buyerwise Exposer, Bank Guarantees, advance payments and forfaiting without recourse to the Company. The company restricts its fixed income investments in liquid securities carrying high credit rating.
The fair value of remaining financial assets and liabilities approximate with the carrying amount recognized in the financial statements. There was no transfer between Level 1. Level 2 and Level 3 in the year. The carrying amount of financial assets and financial liabilities measured at amortised cost in the Ind AS financial statements are a reasonable approximation of their fair value since the Company does not anticipate that carrying value would be significantly different from the values that would eventually be received or settled.
The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.
37 There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
38 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
39 The Company has not granted any Loans or Advances to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.
42 Registration of charges or satisfaction with Registrar of Companies
All the charges or satisfaction of previous year yet to be registered with the Registrar of Companies beyond the statutory period, has not been filed during the year.
43 The company has no holding or downstream companies as on the date of the Balance Sheet. So compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 does not require
44 The Company has not any Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 as on the date of the Balance Sheet. So there are no requirements by the Company to disclose the effect of such Scheme of Arrangements which have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’.
45 The Company has taken borrowings from banks on the basis of current assets i.e. Inventory and Receivables. The company has filed quarterly returns of current assets with the bank which are agreed with books of accounts.
|