Terms/rights attached to Equity shares
The Company has only one class of equity shares having par value of ^ 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting. 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, in proportion to their share holding.
13.1 Capital Reserve
The Company pursuant to the scheme of amalgamation acquired Associated Polymers Ltd (100% Subsidiary) with effect from 1st April, 2012.
As per the accounting treatment of the scheme of amalgamation approved by the Jurisdictional High Court,Mumbai the differential amount between the carrying value of investments and net assets acquired from the transferor companies has been accounted as Capital reserve.
13.2 General Reserve
General reserve represents the statutory reserve, this is in accordance with Indian Corporate Law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer the amount before a company can declare dividend. However under Companies Act, 2013, transfer of any amount to general reserve is at the discretion of the Company.
13.3 Retained Earnings
Retained earnings represents undistributed profits of the Company which can be distributed to its equity shareholders in accordance with the requirement of the Companies Act, 2013.
13.4 Other Comprehensive Income
Remeasurement of the defined benefit liability/(asset) comprises actuarial gain and losses and return on plan assets.
The company closed its ABU division in the year 2016 and erstwhile employee of the company filed the case against the company for wrongful dismissal and demanded reinstatement with back wages. In the financial year 2019-20, Company has made the provision of ^ 175.58 Lakhs as per order received from 2nd Labour court, Pune, subsequently the Company filed a writ petition before Hon'ble Mumbai High Court for stay on the order of the 2nd Labour Court, Pune.In the financial year 2021-22, based on order of Hon'ble Mumbai High Court, the company paid the back wages of ^ 64.20 Lakhs from the date of dismissal up to the date of closure of ABU division, i.e, Aug 2016 and same were booked as expense in the financial statement. During financial year 2024-25 Industrial pune court issued a interim order Dt. 24th Sep 2024 and instruct deposit the back wages in court as a protest money for the period Aug 2016 to Aug 2020. We have deposited 37.74 Lakhs in court on 28th November, 2024.The case is sub-judice and management is of the view that the balance provision of ^ 137.84 lakhs as carrying in the financials is sufficient for any future liability which may arise on the company.
Company has made the provision in previous financial year 2024-25 against Maharashtra Industrial Development Corporation issued notice dated 23rd of Oct 2020, directing company to deposit differential amount for affecting change of name of the company in his records under the reason that change in the share holding pattern of the company. Company is willing to deposit the disputed amount of ^ 92.91 Lakhs (Transfer Fees ^ 53.94 Lakhs & Interest ^ 38.97 Lakhs) under protest and without prejudice to its rights and contentions.
A) Nature of goods and services
The following is a description of principal activities separated by reportable segments from which the Company generates its revenue :
The Company is primarily engaged in the manufacturing/assembling of fluid power and automation products and generates revenue from the sale of these products and the same is only the reportable segment of the Company.
(All amount stated in < LaKns except wnerever stated otherwise)
NOTE: 34
EMPLOYEE BENEFITS
As per Ind AS 19 Employee Benefits, the Company participates in defined contribution and benefit schemes, the assets of
which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the
statements of profit or loss is the total of contributions payable in the year.
1 Defined Contribution Plans
Amount recognized as an expense and included "Contribution to Provident and Other Funds" ^ 85.59 Lakhs (Previous year ? 84.14 Lakhs).
2 Defined benefit Plans a) Gratuity
The Company has a defined benefit gratuity plan, which is funded. The Company provided for gratuity for employees in India which is governed by the provisions of the Payment of Gratuity Act, 1972, which has been subsumed into the Code on Social Security, 2020. Employees who have completed five years of continuous service are entitled to gratuity upon separation, retirement, or death. Gratuity is calculated as 15 days' wages for each completed year of service, with "wages" defined under Section 2(y) of the Code on Wages, 2019 to constitute at least 50% of total remuneration. The broadened wage definition increases the gratuity obligation compared to earlier years, and the liability is determined through actuarial valuation using the projected unit credit method in accordance with Ind AS 19. Amount recognized as an expense and included in Note No. 24 Item "Gratuity" ^ 61.68 Lakhs (Previous year ^ 31.97 Lakhs) includes ^ 60.51 Lakhs (Previous year ^ 29.44 Lakhs) on account of Actuarial valuation.
NOTE: 36DISCLOSURE ON FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note No. 1 to the financial statements
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard.
The fair value of cash and cash equivalents, other bank balances, trade receivables, short term loans, current financial assets, trade payables, current financial liabilities and borrowings at their carrying amount.
Fair value hierarchy
The table shown above analysis financial instruments carried at fair value, by valuation method. The different levels have been defined below:
Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.
NOTE: 37
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk factors
The Company's operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange rate risk.
1 Credit risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company. The company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
Liquidity risk
The Company determines its liquidity requirement in the short term and long term. The Company manage its liquidity risk in a manner so as to meet its financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis
3 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 two types of risk: interest rate risk and foreign currency risk. Financial instruments affected by market risk include borrowings, trade receivable and trade payable.
(i) Currency Risk
The Company Exposed to currency risks to the extent that there is mismatch between the currencies in which sales, purchase and borrowings are denomited in respective functional currency of the company. The company is not exposed to significant currency risks as majority of the transactions are primarily denominated in Indian Rupees, which is the nation currency of the India.
(a) Exposure to currency risk
The summary quantitative data about the Company's exposure to currency risk as reported to management is as follows.
NOTE: 41OTHER NOTES
41.1 Disclosure under Ind AS 108 - 'Operating Segments' is not given as in the opinion of the Chief Operating Decision Maker, The company's business activity falls within a single primary business segment viz "General Engineering Products".
41.2 Company is not having any transaction with the Companies struck off Under Section 248 of the companies Act, 2013 in the current year and in previous years.
41.3 Monthly statements/returns filled by the company with banks or financial institutions are in agreement with books of accounts.
41.4 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year and in previous years.
41.5 The company has not recorded any transactions in the books of accounts during the Year ended, March 31, 2026 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
41.6 The company is not declared wilful defaulter by any bank or financial institution or any lender during the year and in preceding previous years.
41.7 Company does not hold any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) in the current period and in previous years.
41.8 The company has included interest amount in contingent liability up to the date of notice from relevant authorities. (Note No. 32)
NOTE: 42
In the Opinion of the management and to the best of its knowledge and belief, the value on realization of current assets, loans, advances and payment of current liabilities and provisions in the ordinary course of business would not be less/more, than the amount at which they are stated in the Balance sheet.
NOTE: 43EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
No adjusting or significant non adjusting events have occurred between the reporting date and date of authorization of financial statements.
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