4.1 Fair value of investment property
The fair value of the Company's investment property i.e. Land at Gallops Industrial Park have been determined on the basis of valuation carried out by the registered valuer on 20 August 2022. The fair value measurement of the investment property has been categorised as a Level 2 fair value based on the inputs to the valuation techniques used. The fair value of Investment Property is Rs.350.00 Lakhs.
16.3 Terms/Rights attached to equity shares
(i) The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.
(ii) In the event of liquidation of the company, the holder 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 shareholders.
19.1
The overdraft facilities from banks are secured against Fixed Deposits of the Company. They are repayable on demand and carry interest @ Interest rate on Fixed Deposits plus 1% to 3% p.a.
19.2
Unsecured loans from related parties carry interest @ 9% p.a.
The amount due to Micro and Small Enterprises as defined under the MSMED Act is determined to the extent such parties have been identified on the basis of information available with the Company regarding the status of the suppliers as defined under the MSMED Act.
34 Contingent liability not provided in accounts/not acknowledged as debt by the company :
The Company has given corporate guarantee to the Bank against credit facilities granted to its Joint venture i.e. Swadeshi Distributors LLP. Outstanding amount at the end of the year :- Rs.6,000.00 Lakhs. (as at 31 March 2024 :- Rs.2,802.00 Lakhs.).
Disclosures as required by IND AS - 19 "Employee Defined Benefit Plan :
The Company has a defined benefit gratuity plan in India. Gratuity plan is unfunded. The Company's defined benefit gratuity plan is a final salary plan for employees. Gratuity is paid from the Company as and when it becomes due and is paid as per scheme of the Company for gratuity.
The Company has recognised in the Statement of Profit and Loss for the current year, an amount of Rs.1.21 Lakhs (previous year - Rs.0.96 Lakhs) as expenses.
The estimates of rate of escalation in salary considered in the actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
Sensitivity Analysis
The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occuring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:
Interest rate risk: An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows
Salary risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.
Mortality risk: If actual mortality rates are higher than assumed mortality rate assumption then the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
b) Fair value measurement :
Level 1 : Quoted price in active markets for identical assets or liabilities
Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly
Level 3 : Inputs for the assets or liabilities that are not based on observable market data (unobservable data)
# # The Company estimates that investments have fair values that approximate to their carrying amounts as the investments are unquoted and observable market data is not available.
c) Fair valuation method
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used.
d) Financial Instrument measured at Amortised Cost
The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
The Company has exposure to the following risks arising from financial instruments :
-Credit risk -Liquidity risk -Market risk
Risk management framework
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 controls and to monitor risks and adherence to controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Company's audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
i) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instruments fails to meet its contractual obligations. The Company's major class of financial assets are cash and cash equivalents, trade receivables, loans, deposits with Bank, investment in mutual fund and other equity instruments, capital contribution in Limited Liability Partnerships and other current assets. Deposits with bank are considered to have negligible risk as they are with high rated bank. The management has established credit risk policy whose objective is to manage counterparty credit risk in order to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The maximum exposure to credit risk for each class of financial instruments is the carrying amount of that class of financial instruments presented in the financial statements.
T rade and other receivables
The Company's exposure to credit risk is influenced mainly by its customers. However, the management also considers the factors that may influence the credit risk of its customer base. Accordingly, the Company's customer credit risk is moderate.
The Company limits its exposure to credit risk with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties and hence no loss allowance is recognised.
ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.
Management monitors the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company's objective is to maintain a balance between cash outflow and inflow. Usually, the excess of funds is invested in short term liquid assets. This is generally carried out in accordance with practice and limits set by the Company.
iii) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to fluctuation in market prices. The management has set up risk management policy to manage and control market risk exposures within acceptable parameters, while optimizing the return.
A Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates to primarily to the interest bearing deposits with bank. The Company does not avail borrowing with variable/floating rate of interest. Management believe that the interest rate risk attached to this financial assets is not significant due to the nature of such financial assets.
B Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupee. The Company has undertaken transactions of import of materials and export of goods. Hence the Company is exposed to currency risk on account of payables and receivables in foreign currency. The Company's risk management policy monitors the fluctuation in the rate of foreign currency.
C Market price risk
The Company is exposed to market price risk, which arises from fluctuation in prices of raw materials, traded goods and finished goods as well as from investments which are valued at fair value through profit and loss. The management i.e. directors of the Company monitors on regular basis, the price fluctuation in commodities and investments through market indices, well established trading operations and control processes. The management is of the view that the recoverable amount of investments is more than the carrying amount of investments and hence there has not been any significant increase in the credit risk.
43 Capital Management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return. The Company's objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.
During the current financial year, the Company has substantially reduced its short-term borrowings. As a result, the total debt as at 31 March 2025 is lower than the cash and cash equivalents held on that date. This reflects net cash position i.e. the Company has more cash and cash equivalents than its total debt, indicating a strong liquidity position and low financial risk. Hence gearing ratio is not applicable for the current financial year.
44 The Board of Directors at its meetings held on 28 May 2025 have recommended final dividend of Rupee 1/- (i.e. 10 %) per equity share having face value of Rs. 10/- each for the financial year ended on 31 March 2025 subject to approval of shareholders in their ensuing Annual General Meeting.
47 Additional Regulatory Information as required by Schedule III of the Companies Act, 2013
A The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment are held in the name of the Company as at the balance sheet date.
B The Company has not revalued its property, plant and equipment during the current financial year.
C There is no proceedings that have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
D During the year Company has availed an overdraft facility against security of fixed deposits from banks. The said working capital facilities do not require any submission of quarterly returns or statements of current assets to the lender.
E The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.
F The Company is not declared wilful defaulter by any bank or financial institution or lender during the current financial year.
G The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
H The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
I The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
J During the year the Company has not proposed any Scheme of Arrangements.
K The Company has not advanced or loaned or invested funds (either 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 (whether recorded in writing or otherwise) that the Intermediary shall
i) 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
ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
L 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
i) 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
ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
M During the current financial year, 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 Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). The Company does not have any previously unrecorded income.
N The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year.
48 As the Company's business activities fall within a single primary business segment viz "trading in Commodities, Bullions, Gold Jewellery, Diamonds, Derivatives, Shares and Securities" the disclosure requirements of Ind-AS 108 "Operating Segment" prescribed under Section 133 of Companies Act, 2013 read with relevant rules issued thereunder are not applicable.
49 The Company uses 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. Further, the audit trail feature was neither disabled nor tampered with during the current financial year. The audit trail has been preserved by the Company as per the statutory requirements for record retention.
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