a) Rights, preferences and restrictions 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 share is entitled to one vote per equity share. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Nature of Security and terms of repayment of secured borrowings
“ SBI Cash Credit loan was taken for the purpose of meeting the operating liabilities and to augment net Working capital.The Company has used such borrowings for the purposes as stated in the loan agreement.
- the loan is secured by hypothecation of entire Current assets of the Company both present and future of the Company and collateral security of Residential building owned by Satya poorna chander yalamanchili as mentioned in the sanction letter.
- Further, the loan has been secured by the Personal Guarantee of Mr. Y Sathya Poornachander Rao, Mr.T.Rama Mohan,Mr.Manideep Katepalli and Corporate Guarantee of M/s. MIC Electronics Limited.”
“ - Term loan from bank was taken during the financial year 2023-24 and carries interest @ 9.25% p.a. The loan is repayable in 36 instalments of Rs. 2,25,000 each along with interest, from the date of 23.11.2023. As per the Loan Agreement the said Loan was taken for the Purpose of meeting the operating liabilities and to augment net Working capital. The company has used such borrowings for the purposes as stated in the loan agreement.
- the loan is secured by hypothecation of entire Current assets of the Company both present and future of the Company and collateral security of Residential building owned by Satya poorna chander yalamanchili as mentioned in the sanction letter.
- Further, the loan has been secured by the Personal Guarantee of Mr. Y. Sathya Poornachander Rao, Mr.T.Rama Mohan,Mr.Manideep Katepalli and Corporate Guarantee of M/s. MIC Electronics Limited.
- Rate of Interest (%) 9.25% & no. of instalments after 6 Months but not more than 5 years - 36”
“Axis Bank Car loan was taken on during the f.y.2021-22 and carries interest@8.26% P.A.The loan is repayable in 48 Months with EMI's of Rs.2,28,177/- each
-HDFC Bank Car loan-597824 was taken on during the f.y.2021-22 and carries interest@10.75% P.A.The loan is repayable in 60 Months with EMI's of Rs.1,32,911/- each
-HDFC Bank Car loan-134850348 was taken on during the f.y.2022-23 and carries interest@7.9% P.A.The loan is repayable in 60 Months with EMI's of Rs.43,361/- each “
“As of 31.03.2025, all the aforementioned loans have been fully closed. Only the SBI Cash Credit facility has been renewed, with the sanctioned limit reduced from ?3.60 crores to ?1.50 crores”.
Note 31
Capital risk management
For the purpose of the Capital Management, capital includes issued equity capital, and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Capital Management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions, business strategies and future commitments. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, trade payables and borrowings, less cash and cash equivalents and other bank balances.
B Fair values hierarchy
The fair value of financial instruments as referred to in note (A) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
The categories used are as follows:
Level 1: Quoted prices for identical instruments in an active market;
Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
Financial risk management
The Company's activities are exposed to a variety of market risk (including foreign currency risk and interest risk), credit risk and liquidity risk. The Company's overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance.
I Market Risk
Market rate is the risk that arises from changes in market prices, such as commodity prices, foreign exchange rates, interest rates etc. and will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising returns.
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. Currently company not take any loan facility and use own fund for its business so interest risk is very low.
b. Foreign Currency Exchange Rate Risk
Company not do any transaction in foreign currency so company has no risk.
II Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.
The Company performs on-going credit evaluation of its counterparties' financial conditions. The Company's major classes of financial assets are cash and bank balances, trade receivables, Security deposits, Advances to Suppliers and Employees, Unbilled Revenues and prepayments.
As at the reporting date, the Company's maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position.
As at the reporting date, substantially all the cash and bank balances as detailed in Note 7 to the financial information are held in major Banks which are regulated and located in the India, which management believes are of high credit quality.
III Liquidity Risk
Liquidity risk arises from the Company's management of working capital. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.
The Company has obtained fund based and non-fund based working capital credit facility from various banks. Company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The principal liabilities of the Company arise in respect of the trade and other payables. Trade and other payables are all payable within 12 months.
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowing facilities by continuously monitoring forecasts and actual cash flows.
The Company has a system of regularly forecasting cash inflows and outflows and all liquidity requirements are planned.
Forecast for trade and other payables is regularly monitored to ensure timely funding.
All payments are made within due dates.
The Board receives cash flow projections on a regular basis as well as information on cash balances.
Note 34 Segment Reporting
The company operates in Single Business Segment of of electric two wheeler retailer in India and Tour operator service provider. Accordingly disclosure requirements of Ind Accounting Standard 108 - Segment Reporting as notified under section 133 of the Companies Act, 2013 have not been Applicable.
Note 35 The company did not have any long term contracts including derivative contracts for which there were any material forseeable losses. The company does not have any unhedged foreign currency exposure as at March 31, 2025, March 31, 2024.
Note 36 CSR
The provisions of Corporate Social Responsibility (CSR) under section 135 of Companies Act 2013 is not applicable for the Company.”
Note 37 No Capital commitments or Contingent liabilities arised during the year.
Note 38 No subsidies or incentives received from the government for any project.
Note 39 There are no subsequent events either adjusting or non-adjusting which requires to be disclosed.
Note 43 Other Disclosures
a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.”
b. 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.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
d. The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.
e. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding 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.”
f. The Company have not 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).
Note 44 The Social Security Code, 2020
The Code on Social Security 2020 ('the Code') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
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