(ii) Rights, preferences and restrictions attached to shares
The Company has a single class of equity shares having at par value of Rs.10/- per share. Each holder of equity share is eligible to one vote per share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.
(iii) The Company is not a subsidiary of any other company.Employee benefits :
As required by Ind AS 19 ' Employee Benefits' the disclosures are as under:
Defined Contribution Plan
The Company offers its employees defined contribution plans in the form of provident fund (PF) and Employees’ pension scheme (EPS) for all employees, with the government authorities. Contributions are made to the Government administered funds. While both the employees and the Company pay predetermined contributions into the Provident Fund, contributions into the Pension fund is made only by the Company. The Company recognised ' 18.91 Lakhs (31 March, 2024 : Rs. 18.92 Lakhs) The contributions are normally based on a certain proportion of the employee’s salary and the contribution payable to these plans by the Company are at rates specified in the rules of the schemes.
Defined Benefits Plan
All defined benefit plans obligations are determined at actuals, as at the Balance Sheet date, for the amount being actually paid during the year. The classification of the Company’s net obligation into current and noncurrent is ascertained as and when the said liability arises.
Central Excise Department has ordered the Company to pay Anti-dumping duty of Rs. 138 Lakhs vide an order dated 3 February, 2017 on imports of Polypropylene for the period beginning from August 2009 to March 2015, along with interest and penalty at the appropriate rate. The department has also imposed a penalty of Rs. 15 Lakhs on Mr. G. R. Ravindran, the then Executive Director of the Company.
The Company presented the BIFR order in rehabilitation scheme specifically directing the Central Excise & Custom Department for the waiver of penalty and interest, since the Company is 100% Export Oriented Unit, at Daman. The Company has made a deposit for appeal @ 7.5% on the disputed duty amounting to Rs. 10 Lakhs and 7.5% on penalty imposed amounting to Rs. 1 Lakh. The Company has filed an appeal on 12 May, 2017 in the Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad against the said order. The said matter is pending before the Appellate Tribunal.
Customs and Central Excise Department, Daman has raised a demand on 26 September 2019 towards Custom duty of Rs. 295 Lakhs alongwith interest and penalty as applicable. Also a demand of Central Excise duty for ' 17 Lakhs alongwith interest and penalty as applicable. The Company has made a deposit for appeal @ 7.5% on the disputed duty amounting to Rs. 22 Lakhs and 7.5% on disputed excise duty amounting to ' 1 Lakh. The Company has filed an appeal on 9 January, 2020 in the Customs, Excise and Service Tax Appellate Tribunal, Ahmedabad against the said order. The said matter is pending before the Appellate Tribunal.
Income Tax department has raised a demand on 27 March, 2024 for AY 2022-23 valuing ' 21.63 Lakhs along with Interest and Penalty as applicable. The Company has made an Appeal with Commissioner of Income Tax (Appeals) against the disputed liability of ' 21.63 Lakhs. The said matter is pending with CIT(A)
The Company does not expect the outcome of the matters stated above to have any material adverse impact on the Company’s financial condition, results of operations or cash flows.
35 Disclosure for operating leases under Ind AS 116 -“ Leases”:
Company has taken office premise on lease for 11 months, which is generally cancellable/renewable on mutually agreeable terms. There is no restrictions imposed by these lease arrangement and there are no sub lease. There are no contingent rents.
36 Foreign currency exposures on assets and liabilities
Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of Company. The currencies in which these transactions are primarily denominated is US dollars
The audited statement of accounts of USA Branch have not been received till the date of signing the Audit Report of the Company. All original documents are lying with US Office. The value of total transactions is ' 209.15 Lakhs (31st March, 2024: ' 204.26 Lakhs) i.e. US$ 247,200 (31st March, 2024: US$ 247,200) as against total turnover of Rs. 10,129.44 Lakhs (31st March, 2024: Rs. 8,600 Lakhs), i.e. 2.07% (31st March, 2023: 2.38%) which is insignificant, from the materiality point of view.
38 Debtors and Creditors balances are subject to confirmations from the parties.
39 In the opinion of the Board of Directors the Current Assets, Loans & Advances except those shown as doubtful have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.
40 Figures of the current year and previous year have been re-grouped / rearranged /reclassified wherever necessary.
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