7.1 It represents amount given to a Builder / Developer Company in earlier years. The Builder / Developer Company to whom the amount was advanced, has been acknowledging the advance and has also been assuring to transfer suitable properties of equal value and get the documents of title executed in favour of company. However till date, the Builder / Developer Company has neither transferred any property and / or executed title deed(s) in favour of company nor repaid any amount in spite of the assurances given from time to time. As a matter of abundant caution the amount has already been fully provided in the year ended 31.03.2013.
13.1 GST input receivable is under reconciliation with Electronic Credit Ledger balance of ?15.91 lakhs (previous year? 0.65 lakhs).
13.2 Includes Advances recoverable ? 1.68 lakhs (previous year ? 1.22 lakhs) from directors on account of TDS, Advance against bonus ? 24.14 lakhs (previous year ? 26.02 lakhs) and Advance against capital account of ? 10.51 lakhs (previous year ? 11.02 lakhs).
13.3 Represents Income Tax refund for the A .Y 2020-2 1 and A .Y 2022-23 adj usted again st demand of A.Y 2 018-19 and A.Y 202122 and the management is hopeful of recovery in the next financial year.
14.1 Term/right attached with equity shares:
The Company has only one class of equity shares having a par value of ? 10 per share. Each holder of equity share is eligible for one vote per share. 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 shareholders.
15.1 Securities Premium
Where the Company issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium account". The company may apply the premium inter-alia towards issue of fu lly paid-up bonus s hares and purchase its own shares or other securities under section 68 of the Act.
15.2 General Reserve
General reserve is created out of profit earned by the company by way of transfer from surplus in the Statement of Profit & Loss. There are no restrictions on utilisation of the reserve except in case of declaration of dividend out of Reserves as prescribed under The Companies ( Declaration and Payment of Dividend ) Rules,2014 read with Section 123 of the Companies Act 2013.
15.3 Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
15.4 The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed in Statement of Changes in Equity.
16.2 Out of the total Unsecured borrowings from related parties aggregating ?3,556.06 la khs (previous year? 3,426.06 lakhs),a sum of? 1,450 lakhs (previous year? 1,450 lakhs) has been classified as long term as certified by the management.
The balance amount has been consid ered short term borrowing(s).
16.3 Working Capital Loans are secured against hypothecation of all moveable properties including plant & equipment, stocks of raw materials, stores and spares, finished goods, stock in trade and all book debts, bills and claims receivables. The loans from banks are collaterally secured against equitable mortgage of factory land/building & guaranteed by all Executive Directors.
16.4 The company has utilised the borrowings from banks and financial institutions for the specific pu rposes for which it was taken. There has been no default with regard to repayment of borrowing and interest during the year and outstanding on the date of balance sheet and confirmation from Axis Bank is awaited.
16.5 The company has not been declared as wilful defaulter by any bank or financial institution or any other lender.
27.2 Defined Benefit Plan Gratuity
The company has a defined benefit gratuity plan under which every employee, executive director and key managerial person who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service subject to maximum of ' 20 lakhs.
For employees, the Company makes annual contributions to approved Gratuity Trust under Income Tax Act, which in turn contributes to Life Insurance Corporation of India which administers the plan and determines the contributions required to be paid by the trust. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.
27.3 Compensated Absence
It is an unfunded defined benefit plan for which the obligation is recognised on the basis of valuation made by actuary in terms of IndAS 19.
27.4 Bonus provision under The Payment of Bonus Act, 2015 for the year has been made on estimated basis and any adjustment on account of final liability will be made in the subsequent year (refer note no.20.3).
30.1 Statutory Audit fees is ' 7.00 lakhs (previous year ' 7.00 lakhs) and Tax Audit fees is '2.50 lakhs ( previ ous year '2.50 lakhs).
30.2 (i) Includes provision of ' 43.69 lakhs for non-moving stock of traded goods, Cash loss theft of ' 2.82 lakhs pending receipt of insurance claim and Ball testing fees of ' 38.78 lakhs.
(ii) Includes Prior period expenses of ' 2.87 lakhs (previous year 8.20 lakhs), director's sitting fee '1.50 lakhs (previous year '1.45 lakhs) General expenses '14.69 lakhs (previous year 16.95 lakhs), License fee '5.39 lakhs (previous year '6.46 lakhs) Donation 2.05 lakhs (previous year '9.47 lakhs), Festival expenses '7.58 lakhs (previous year ' 6.27 lakhs),Subscriptions ' 13.77 lakhs (previous year '9.12 lakhs), Software expenses '4.43 lakhs (previous year '6.05 lakhs), Water & electricity & generator expenses ' 9.54 lakhs (previous year '8.29 lakhs).
30.3 Includes repairto vehicles '31.42 lakhs (previous year '36.76 lakhs) and Electric repairs ' 16.51 lakhs (previous year '20.88 lakhs)
30.4 Other manufacturing expenses include Ball cleaning & covering charges '224.35 lakhs (previous year '199.66 lakhs), Ball pasting charges '134.22 lakhs (previous year '156.13 lakhs), Set making charges '150.20 lakhs (previous year '176.30 lakhs).
33. SEGMENT INFORMATION
The company's operating segments are established on the basis of those components of the group that are evaluated regularly by the chief operating officer (the 'Chief Operating Decision Maker' as in IndAs 108 -'Operating Segments'), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The Company's business segments are as under:
(i) Own Manufactured Products: Segment includes manufacturing and supply of sport items.
(ii) Traded Goods: Segment includes trading of health equipment and fitness accessories and other sports goods.
The accounting policies adopted for segment reporting are in line with the accounting policy ofthe companywith following additional policies for segment reporting:
Expenses have been identified to a segment on the basis of sale of the respective segment to the total sale of the company. Revenue and expenses which relate to enterprise as a whole and are not allocabl e to a segment on reasonable basis have been disclosed as "Unallocable".
Store Departments
*The company is contesting these demands/claims an d the manag ement, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome (if negative) of these proceedings will not have a material adverse effect on the company's financial position and results of operations. The company does not expect any reimbursements in respect of the above contingent liabilities.
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's principal financial liabilities comprise borrowings, Security Deposits Received, trade and other payables. The main purpose of these financial liabilities is to fin ance the company's operatio ns. The company's principal financial assets include, trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations. The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management poli cy and a programme that performs close monitoring of and responding to each risk factors. The company's senior management oversees the management of these risks.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. Th e Company's exposure to the r isk of changes in market interest rate relates primarily to the Company's borrowings from Banks with floating interest rates / volatility in rupee value against foreign currency fluctuations. The unsecured loans from related parties constitute a significant portion of total borrowings and is not subject to volatility in the rate of borrowings.
ii. 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 i n foreign exchange rates. Company deals in import of health equipment and exports sports goods. Adverse changes in rupees due to imports are partially off set by exports and company is able to pass on the increase in price of imports to the customers. In view of the insignificant risk, sensitivity analysis showing impact on profit is not calculated. During the year company earned currency fluctuation gain of '56.09 lakhs (previous year 46.46 lakhs).
iii. Commodity price risk
The company does not have significant risk in raw material price variations. In case of any variation in price, the same is normally passed on to customers through ap propriate adjustment to selling prices.
(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counter party default on its obligations. The company’s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security deposits and bank deposits are paid against import consignments. Company has good past track record of recovery from trade receivables. Defaults in past have been very few and too less.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interestbearing borrowings in the current year. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025 and March 31, 2024.
40. ADDITIONAL Notes and relevant regulatory information (Other than disclosed in Notes):
40.1 (a) The operating cycle of the company is assumed to be of twelve months in absence of clearly identifiable normal operating cycle and accordi ngly assets / liabilities have been classified as c urrent / non cu rrent.
(b) No impairment exercise is conducted in absence of internal / external indicators.
40.2 Cosco Polymer Lanka (Private) Ltd. (erstwhile Subsidiary of the Company in Sri Lanka) has been ordered to be wound up by the Hon'ble High Court of the Western Province, Colombo. Accordingly, "Consolidated Financial Statements" as per Ind AS 110, have not been prepared.
40.3 The Equ ity Shares held by the Company in Cosco Polymer Lanka (Private) Ltd. (erstwhile Subsidiary of the Company in Sri Lanka) stand vested in the Secretary to the Treasury of the Government of Sri Lanka under the Revival of Underperforming Enterprises or Underutilised Assets Act No.43 of 2011 (of Republic of Sri Lanka) as per disclosures made in the earlier year Accounts. Competent Authority appointed under the said Act is controlling, administering and managing such Enterprises / Units / Assets. The Act (of Sri Lanka), provides for payment of compensation and accordingly claim was filed in Sri Lanka with the Compensation Tribunal constituted under the said Act. The Compensation Tribun al vide its letter Ref: Com T/01/27 dated 08.12.2015, has allowed compensation of LKR 480 lakhs (Equ ivalent INR 204.66 lakhs) and after deducting LKR 16.74 lakhs due for Board of I nvestment (BOI) of Sri Lanka as at the date of vesting, the net compensation payable is LKR 463.26 lakhs (Equivalent INR 197.52 lakhs). The amount is yet to be released and the same shall be credited to Liquidator, since Cosco Polymer Lanka (Private) Ltd. has been ordered to be wound up by the Ho n'b i e High Court of the Western Province, Colombo. The ma nagement does not expect any net realisable value of its investment in the erstwhile subsidiary. However realisation, if any, shall be accounted for in the year of actual receipt.
40.4 The Appraising Officer - Assistant commissioner (Gr. VI), ICD Import, Tughlakabad, New Delhi vide order No. 141/2019/S K Gupta/AC/Import/ICD/TKD dated 01.11.2019 adjudicated Additional Custom demand of ^ 5.31 lakhs (including Interest) in respect of various years 2011-1 2 to 2017-18 on account of non-inclusion of various expenses (post import) like advertisement & sales promotion for the purpose of computing the assessable value of imports of
foreign Brand goods, under the Customs Act,1962 and Valuation Rules framed thereunder. The Additional Custom Duty Demand has since been paid voluntarily by the Company f 4.87 lakhs during F.Y 2016-17 and ? 0.44 lakhs during F.Y 201819. By issuing Corrigendum dated 16.07.2019 demand was reduced to ? 2.34 lakhs. The Principal Commissioner of Cu stoms, ICD, Im port, Tughlakabad, has filed Appeal before Commissioner of Cu stoms (App eals), New Delhi, against the said Order for remanding back the case to the department authority to re-adjudicate the case by considering the Corrigendum dated 16.07.2019 to the Demand cum Show Cause Notice and inter-alia other issues. It has been advised to the company that there would not be any significant liability on this account rather it is expected to receive back the refund of the amount already pai d in the earlier years. the company h as not recognised any cont ng ent refund duri ng the year / earlier years on this account.
41. Additional Regulatory Information:
41.1 The company has not revalued its PPE (including ROU asset) during the year.
41.2 There is no charge or satisfacti on of any charge which i s not registered with ROC beyond the statutory period.
41.3 T he Company have not adva nced or loaned or invested funds to any other person(s) or entity(ies), inclu ding 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 company (Ultimate Beneficiaries), or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
41.4 The Company have not received an y fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whethe r recorded in w riting or ot herw ise) that the Company shall:
(a) directly or indirectly lend or invest in ot her persons or entities identified in any manner wh atsoever by or on behalf of the funding party (Ultimate Beneficiaries), or
(b) provide any gu arantee, security or the like on behalf of the Ultimate Benefic iaries.
41.5 No proceedings 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.
41.6 The company has not granted any loans or advances in the nature of loans to promoters, directors, KMP and the related parties either severally or jointly with any other person which is either repayable on demand or without specifying any terms or period of demand and therefore requirement of disclosure of such loan / advance is not applicable.
41.7 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.
41.8 Company has not applied any accounting policy retrospectively or has made a restatement of items in Financial Statement or has reclassified items in the Financial Statement.
41.9 The company has not done any transaction with struck off companies during the year and therefore no balance whether payable / receivable / investment in securities or shares of the company held by such struck off companies or any other outstanding exist on the balance sheet date.
41.10 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
41.11 The Company did not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income du ring 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).
42. Previous year figures have been reclassified / regrouped wherever necessary to confirm with those of current year figures.
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