2.17 Provisions, Contingent Liabilities and Contingent Assets
Provisions
A provision is recognised when a company has a present obligation (legal or constructive) as a result
of past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of obligation.
These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates. If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also requires in
extremely rare cases, where there is a liability that cannot be recognised because it cannot be
measured reliably.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date.
2.18 Dividend Distribution
The Company recognises a liability to make the payment of dividend to owners of equity, when the
distribution is no longer at the discretion of the Company. As per the corporate laws in India, a
distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.
2.19 Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction
between market participants at a measurement date. The fair value measurement is based on the
presumption that transaction to sell the asset or transfer the liability takes place either:
i. In the principal market for asset or liability, or
ii. In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the company.
The fair value of an asset or liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole.
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to fair value measurement as a
whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair
value hierarchy as explained above.
2.20 Significant accounting judgements, estimates and assumptions
The preparation of the standalone financial statements requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these judgements, assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of the asset or liability affected in future periods.
a) Taxes
Uncertainties exist with respect to the interpretation of tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide range of business relationships
differences arising between the actual results and the assumptions made, or future changes to such
assumptions, could necessitate future adjustments to tax income and expense already recorded. The
Company establishes provisions, based on reasonable estimates. The amount of such provisions is
based on various factors, such as experience of previous tax audits and differing interpretations of tax
regulations by the taxable entity and the responsible tax authority.
b) Defined benefit plans and other long term incentive plan
The cost of defined benefit plans and leave encashment is determined using actuarial valuations. An
actuarial valuation involves making various assumptions which may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases, and
mortality rates. Due to the complexity of the valuation, the underlying assumptions and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date. In determining the appropriate discount rate,
management considers the interest rates of long term government bonds with extrapolated maturity
corresponding to the expected duration of the defined benefit obligation. The mortality rate is based
on publicly available mortality tables for India. Future salary increases are based on expected future
inflation rates for India.
c) Fair value measurement of financial instrument
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgment is
required in establishing fair values. Judgments include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments.
d) Impairment of financial assets
The impairment provisions of financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgment in making these assumptions and selecting the
inputs to the impairment calculation, based on Company's past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.
e) Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. An assets recoverable amount is the higher of an
asset's CGU'S fair value less cost of disposal and its value in use. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to
its recoverable amount.
In assessing value in use, the estimated future cash flows are estimated based on past trend and
discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are taken into account. If no such transactions can
be identified, an appropriate valuation model is used. These calculations are corroborated by
valuation multiples, or other fair value indicators.
The Company assesses where climate risks could have a significant impact, such as the introduction of
emission-reduction legislation that may increase manufacturing costs. These risks in relation to
climate-related matters are included as key assumptions where they materially impact the measure
of recoverable amount, these assumptions have been included in the cash-flow forecasts in assessing
value-in-use amounts.
f) Provision for expected credit losses (ECL) of trade receivables
The Company uses practical expedient to calculate ECLs for trade receivables based on provision
matrix. The provision matrix is initially based on the Company's historical observed default rates. The
Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking
information. At every reporting date, the historical observed default rates are updated and changes
in the forward-looking estimates are analysed.
The assessment of the correlation between historical observed default rates, forecast economic
conditions and ECLs is a significant estimate. The amounts of ECLs are sensitive to changes in
circumstances and forecast economic conditions. The Company's historical credit loss experience and
forecast of economic conditions may also not be representative of customer's actual default in the
future. The information about ECLs on the Company's trade receivables and contract assets is
disclosed in Notes.
g) Property, Plant and Equipment, investment properties and intangible assets
Property, Plant and Equipment represent significant portion of the asset base of the Company. The
charge in respect of periodic depreciation is derived after determining an estimate of assets expected
useful life and expected value at the end of its useful life. The useful life and residual value of
Company's assets are determined by Management at the time asset is acquired and reviewed
periodically including at the end of each year. The useful life is based on historical experience with
similar assets, in anticipation of future events, which may have impact on their life such as change in
technology.
Notes:
i. ) Refer Note 12 for property, plant & equipment mortgaged / hypothecated as security for
borrowing by the company.
ii. ) No Borrowing cost were capitalised in case of property, plant & equipment under construction
for the year ended 31 March 2025 (31st March 2024: Rs NIL).
iii. ) The title deeds are held in the name of the company for all immovable properties.
iv. ) There is no impairment of any asset in terms of Ind AS 36 “Impairment of Assets" as there
were no impairment indicators during the year ended 31st March 2025 (31st March 2024: Rs
NIL).
(d) Fair value of investment property has been determined by independent registered valuers as
defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The main
inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates
based on comparable transactions and industry data. The company has no restriction on the
realisability of its investment property and no contractual obligation to purchase, construct or
develop investment property or for repairs, maintenance and enhancement. Fair value hierarchy
disclosure for the investment property has been provided in note no 30.
ii. ) The company has used a practical expedient by computing the expected loss allowance for trade
receivables based on historical credit loss experience and adjustments for forward looking
information. (Refer Note 31(iii)(a) for movement in expected credit loss allowance)
iii. ) No trade receivables are due from directors or other officers of the Company either severally or
jointly with any other person. Also no trade or other receivables are due from firms or private
companies respectively in which any director is a partner, a director or a member.
iv. ) The above trade receivables has been hypothecated as security for fund based and non-fund
based credit facility from the banks.
v. ) Trade receivables are non-interest bearing and are usually on trade terms based on credit
worthiness of customers as per the terms of contract with customers.
vi. ) Terms / rights attached to equity shares
The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder
of equity shares is entitled to one vote per share. In the event of the liquidation of the Company,
the holders of equity shares will be entitled to receive remaining assets of the Company. The
distribution will be in proportion to the number of equity shares held by the shareholders.
vii. ) Bonus Shares / Shares issued for consideration other than cash:
Aggregate number of shares issued as bonus and shares issued for consideration other than cash
during the period of five years immediately preceding the reporting date are as follows:
Notes:
i) Nature of Security:
a. Secured by mortgage over one of the immovable properties (Unit II located at 274/2 Samlaya-
Sherpura Road, Vill: Pratapnagar, Tal: Savli, Vadodara, Gujarat, India) of the company.
b. Secured by a hypothecation of entire current assets as well as movable fixed assets of the
company (present and future).
c. Pledge on Deposit with bank of Rs 24.60 lakhs.
d. Secured by personal guarantee of Managing Director and Whole Time Director of the company.
ii) Interest rate and terms of repayment:
a. Term loan 1 from Axis bank amounting to Rs. 221.00 lakhs (31st March, 2024: Rs. 319.40 lakhs)
is repayable in 72 monthly instalments of Rs 8.20 lakhs each (principal only) starting from 30th
June 2021 to 31st May 2027. Interest is payable on monthly basis at Repo rate (as declared by
RBI) plus 200* bps p.a.
b. Term loan 2 from Axis bank amounting to Rs. NIL lakhs (31st March, 2024: Rs. 90.10 lakhs) is
repayable in 39 monthly instalments of Rs 4 lakhs each (principal only) starting from 31st
December 2022 to 31st March 2026. Interest is payable on monthly basis at Repo rate (as
declared by RBI) plus 200* bps p.a. However in the February 2025, company pre-paid the loan
of Rs 50.10 lakhs since company had positive balance in its cash credit account and were
fulfilling the prepayment conditions of the term loan.
c. Vehicle Loan 1 from Axis bank amounting to Rs. 1.85 lakhs outstanding as on 31st March, 2024
was terminated on 5th June 2024 as per repayment schedule. Fixed interest of 7.75 % p.a. was
payable on this loan on monthly basis.
d. Vehicle Loan 2 from Axis bank amounting to Rs. 3.00 lakhs (31st March, 2024: Rs. 14.87 lakhs)
is repayable in 38 monthly instalments starting from 1st May 2022 to 1st June 2025. Fixed
interest is payable on monthly basis at 7.10 % p.a.
e. During the previous year in January 2024, company has increased its Cash credit cum Bank
Guarantee facility from Axis bank from 3.5 crores to 8.5 crores sighting increase in business
operations. Interest is payable on monthly basis at Repo rate (as declared by RBI) plus 200*
bps p.a. Renewal fees of 0.25% (previously 0.10%) is payable annually.
*From April 2023 to August 2023, bank was charging 330 bps for term loan 1, 310 bps for term loan
2, 275 bps for ECLGS loan and 310 bps for cash credit facility. On negotiation with bank, from
September 2023 it was decreased to 240 bps for all credit facilities. From January 2024, when we
further increased our exposure with bank by enhancing cash credit cum bank guarantee facility by 5
crores, we further negotiated and brought it down to 200 bps for all credit facilities.
iii) Term loan from bank contain certain debt covenants. The company has satisfied all these debt
covenants prescribed in the terms of these loans.
iv) The company has not made any default in the repayment of loans to bank and interest thereon.
v) In pursuant to borrowing taken by the company from the banks on security of current assets, the
company is required to submit the information periodically which includes the stock statement,
book debts and trade payables and there were no material discrepancy between books of
accounts and statements filed with the bank other than timing differences in reporting to bank
and routine book closure period adjustments. Following table provides the above details:
Notes:
i.) The company has entered into the agreement with customers for sale of goods and rendering of
services. The contract liabilities arises in respect of contracts where the company has obligation
to deliver the goods and perform specified service to a customer for which company has received
consideration in advance. Contract liabilities are recognised as a revenue when the company
performs obligations under the contract (i.e. transfers control of the related goods or services to
the customers). There is increase in contract liabilities during the year mainly due to the amount
collected in the current year for which performance obligation is yet to be satisfied.
Unsatisfied performance obligation:
Sale of products: Performance obligation in respect of sale of goods is satisfied when control of
the goods is transferred to the customer, generally on delivery of the goods and payment is
generally due as per the terms of contract with customers.
Sales of services: The performance obligation in respect of services is satisfied over a period of
time and acceptance of the customer. In respect of these services, payment is generally due upon
completion of service based on time elapsed and acceptance of the customer.
The transaction price allocated to remaining performance obligation (unsatisfied performance
obligation) pertaining to sales of goods/ services as at 31 March 2025 and expected time to
recognise the same as revenue is as follows:
NOTE 26: EARNINGS PER SHARE (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of
the Company by the weighted average number of Equity shares outstanding during the year. Diluted
EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by
the weighted average number of Equity shares outstanding during the year plus the weighted average
number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares
into Equity shares.
*The Company has given bank guarantee in favour of various parties against various contracts. The
company has assessed that it is only possible, but not probable, that outflow of economic resources
will be required and hence no provision has been made in the financial statements.
#A legal case has been filed against the company in the past involving accident of company bus. Future
cash outflows in respect of above legal matter against the company is determinable only on receipt of
judgment / decision pending at judicial authorities. The company has disclaimed the liability and
defending the action. The company has been advised by its legal counsel that its position is likely to
be upheld since liability is duly insured. Based on it, the management believes that the company has
a good chance of success in above matter and hence no provision for any liability has been made in
the financial statements.
The company does not have any contingent assets and capital commitments during the current as well
as previous reporting period.
Note 27: RELATED PARTY DISCLOSURES
The related parties as per the terms of Ind As-24,"Related party Disclosures", notified under section
133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules 2015 (as
amended from time to time), is disclosed below:
B. Defined Benefit Plan
Gratuity Plan: The Company has a defined gratuity plan. Every Employee who has completed five years
or more of service is entitled to gratuity on terms not less favourable than the provisions of The
Payment of Gratuity Act, 1972. The level of benefits provided depends on the member's length of
service and salary at retirement age. This gratuity plan is managed by the trust which maintains its
investment with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment
of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using
Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit
of employee benefit entitlement and measures each unit separately to build up the final obligation.
The management has assessed that trade receivables, cash and cash equivalents, other bank balances,
other current financial assets, borrowings, trade payables and other current financial liabilities
approximate their carrying amounts largely due to the short term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument
could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. The following methods and assumptions were used to estimate the fair value
i. ) The fair value of unquoted instruments is estimated by discounting future cash flows using rates
currently available for debt on similar terms, credit risk and remaining maturities. The valuation
requires management to use unobservable inputs in the model, of which the significant
unobservable inputs are disclosed in the table below. Management regularly assesses a range of
reasonably possible alternatives for those significant unobservable inputs and determines their
impact on the total fair value.
ii. ) The fair values of the company's interest bearing borrowings are determined by using effective
interest rate (EIR) method using discount rate that reflects the issuers borrowing rate as at the
end of the reporting period. The own non-performance risk as at 31st march 2025 was assessed to
be insignificant.
iii. ) The fair value of security deposit has been estimated using DCF model which consider certain
assumptions viz. forecast cash flows, discount rate, credit risk and volatility.
iv. ) Fair Value hierarchy
Level 1: The fair value of financial instruments traded in active markets is based on quoted market
prices at the end of the reporting period for identical assets or liabilities. These instruments are
included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is
determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If all significant inputs required to fair value
am instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the
instrument is included in level 3.
This section explains the judgment and estimates made in determining the fair value of financial
assets that are:
a. Recognized and measured at fair value
b. Measured at amortized cost and for which fair value is disclosed in financial statements.
Note 31: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's board of directors has overall responsibility for the establishment and oversight of the
company's risk management framework. Risk management systems are reviewed regularly to reflect
changes in market conditions and the company's activities.
The company's activities expose it to market risk, liquidity risk and credit risk which are measured,
monitored and managed to abide by the principles of risk management.
i.) 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 of three types of risk: currency risk,
interest rate risk and commodity risk.
a. 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. During the year the company has no exposure to
such risk since company has no financial assets or liabilities as on the reporting date in foreign
currency.
b. 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 main interest rate risk arises
from long-term borrowings with floating interest rates. Interest rate risk is measured by using the
cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates
could have an impact on the company's cash flows as well as costs.
Sensitivity analysis
The following table shows the increase / (decrease) in profit before tax assuming a change in rate
of interest by 100 bps during the year.
c. Commodity price risk
Our company is exposed to commodity price risk primarily due to the volatility in steel prices,
which constitute a significant portion of the company's raw material costs. Fluctuations in steel
prices can materially impact the profitability of the company. To mitigate this risk, the company
employs a just-in-time inventory system, minimizing holding costs and reducing the impact of
price volatility. Additionally, the company strategically maintains its stock levels up to the risk
appetite to ensure that it balances the need for inventory with the potential risks associated with
price changes. Furthermore, the company purchases its inventory only against order confirmation
at current prices to avoid price volatility risk. These measures aim to stabilize the company's
financial performance and protect against adverse price movements.
ii.) Liquidity Risk
Liquidity risk is the risk that company may not be able to meet its financial obligations as they
become due. The company's approach to managing liquidity risk is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the
company's reputation.
iii.) Credit Risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial
instrument fails to meet its contractual obligation towards the company and arises principally
from the company's receivables from customers and deposits with banking institutions. The
maximum amount of the credit exposure is equal to the carrying amount of these receivables.
The company manages its own exposure to credit risk by dealing only with parties which has good
credit rating / worthiness given by external rating agencies or based on company's past
assessment.
a. Trade Receivables
The company has developed guidelines for the management of credit risk from trade receivables.
All customers are subject to credit assessments as a precautionary measure, and the adherence
of all customers to payment due dates is monitored on an ongoing basis, thereby practically
eliminating the risk of default. The company has a policy of dispatching goods only after receipt of
consideration except for regular clients. However in case of provision of services, payment is due
only on post completion of the service (stage wise). Hence chances of bad debt is more in case of
sale of service.
The company uses practical expedient for trade receivables for computing expected credit loss
allowance based on a provision matrix. An impairment analysis is performed at each reporting
date on trade receivables by lifetime expected credit loss method based on historically observed
default rates (average rate of bad debt on revenue for five years) adjusted for forward looking
estimates and by applying it on current year's revenue. The company does not hold collateral as
security.
b. Financial Instruments and deposits
The company maintains deposits with Axis Bank, not for investment purposes, but as a condition
for availing terms loan and as margin money against bank guarantee issued. Consequently, the
credit risk management strategy is not focused on assessing deposit investments but rather on
ensuring that the bank creditworthiness. Axis Bank's established reputation and strong market
presence provide a level of assurance for these deposits. Nonetheless, the company remains
vigilant, monitoring the bank's creditworthiness to safeguard its funds.
Note 32: Capital Management
For the purposes of the company's capital management, Capital includes issued capital and all other
equity reserves. Net Debt includes all long and short term borrowings as reduced by cash and cash
equivalent and deposits with banks. The primary objective of the company's capital management is
to ensure that it maintains an efficient capital structure and maximize shareholder value. The company
manages its capital structure and make adjustments in the light of changes in economic environment
conditions and the requirement of the financial covenants. The management monitors the return on
capital, as well as the level of dividends to equity shareholders.
NOTE 34: CORPORATE SOCIAL RESPONSIBILITY
The provisions of Section 135 of the Companies Act, 2013, relating to Corporate Social Responsibility
(CSR), are not applicable to the Company for the financial year 2024-25 as the Company did not meet
the specified criteria prescribed under sub-section (1) of Section 135 of the Act.
Accordingly, no CSR committee has been constituted and no expenditure towards CSR activities has
been incurred during the year.
NOTE 35: Based on the Company's internal structure and information reviewed by the Chief Operating
Decision Maker to assess the company's financial performance, the company is engaged solely in the
business of manufacture of Pre-Engineered Building and Roofing Products. Accordingly, the company
has only one operating segment.
NOTE 36: 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 software. Further no instance of audit trail feature being
tampered with was noted in respect of the accounting software.
i. ) Borrowings includes long term and short term borrowings.
ii. ) Earnings for Debt Service = Net Profit after taxes Depreciation and Amortisations Finance Costs
iii. ) Debt Service = Interest payments Principal Repayments
iv. ) Average shareholder's Equity = {(Total Opening Equity Total Closing Equity)/2}
v. ) Average Inventory = {(Total Opening Inventory Total Closing Inventory)/2}
vi. ) Average Trade Receivables = {(Total Opening Trade Receivables Total Closing Trade
Receivables)/2}
vii. ) Average Trade Payables = {(Total Opening Trade Payables Total Closing Trade Payables)/2}
viii. ) Average Working Capital = {(Opening Working Capital Closing Working Capital)/2}
ix. ) Working Capital = Current Assets - Current Liability
x. ) Capital Employed = Total Equity Total Borrowings Deferred Tax Liability
Explanation for the change in the ratio by more than 25% as compared to previous year:
1. The 56.22% drop in the debt-equity ratio is primarily due to a significant reduction in outstanding
debt, reflecting improved financial stability and stronger equity base.
2. The 30% increase in debt service coverage ratio is primarily due to higher earnings during the year
and efficient debt servicing, resulting in a stronger ability to cover debt obligations.
3. The 32.83% rise in return on equity is attributable to an increase in net profit during the year,
improving returns to shareholders on their equity investment.
4. The 47.39% drop in our inventory turnover ratio is primarily due to higher inventory levels
maintained at year-end to support upcoming demand and ongoing projects.
5. The 35.95% drop in trade payables ratio is a result of relatively large credit purchases made at the
year end and also due to extended credit periods availed from suppliers during the year compared
to the previous year.
6. The 70.67% rise in Net profit margin is due to better cost management, increased operational
efficiency, and improved pricing realisation
7. The 34.41% rise in return on capital employed is driven by improved profitability and better
utilisation of capital resources during the financial year.
NOTE 38: ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES
ACT, 2013
i. ) The Company does not have any Benami Property where any proceedings have been initiated or
are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii. ) The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.
iii. ) The Company does not have any transactions with companies struck off under section 248 of
Companies Act, 2013 or section 560 of Companies Act, 1956:
iv. ) The Company has not entered into any scheme of arrangement which has an accounting impact
on current or previous financial year.
v. ) The Company has not advanced or loaned or invested funds to any other person or entity,
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the group (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
vi. ) The Company has not received any fund from any person or entity, 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 on behalf of the ultimate beneficiaries
vii. ) 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 provision of the Income
Tax Act, 1961).
viii. ) The Company has not traded or invested in crypto currency or virtual currency during the
current or previous year.
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 does not have any charges or satisfaction which are yet to be registered with the
Registrar of Companies beyond the statutory period.
xi. ) The borrowings obtained by the Company from banks and financial institutions have been applied
for the purposes for which such loans were was taken.
xii. ) The company has complied 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.
xiii. ) There are no events or transactions after the reporting period which is required to be
disclosed under Ind AS 10.
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