Based on the information available with the company in response to the enquiries from all existing suppliers with whom the company deals, there are no suppliers who are registered as micro and small enterprises under ' The Micro, Small and Medium Enterprises Development Act, 2006' as at 31.03.2024
The company has issued only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of shareholders, 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 preferential amounts, in proportion of their shareholding.
Nature and purpose of reserve :
Securities premium
Securities premium represents premium received on issue of shares. The amount is utilised in accordance with the provisions of the Companies Act 2013.
Reserve fund u/s 45-IC(1) of RBI,1934
The reserve is created as per the provision of Section 45(IC) of Reserve Bank of India Act, 1934. This is a restricted reserve and no appropriation can be made from this reserve fund except for the purpose as may be prescribed by Reserve Bank of India.
Retained Earnings
Retained earnings generally represents the undistributed profits/ amount of accumulated earnings of the company and includes remeasurement gains/losses on defined benefit obligations.
Contingent Liabilities:
There is no contingent liability not acknowledged as debt Contingent Assets:
The Company’s Trade Receivables include amount of Rs. 228.71 Lakhs. which is outstanding for substantial period of time , Company has received balance confirmations from the parties, therefore management is of the opinion that no provision is required for possible loss on such trade receivables.
The management is of view that as per Ind AS 36, no impairment loss is required to be recognised, as the present values of assets are higher than the carrying amount of such assets.
N t 33 The Company has granted Interest free loans to its subsidiary company, Sukartik Clothing Private limited ( due to dilution of stake, is an associate company), year end balance of such loan is NIL.
Note 34: Employee benefits expense
The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under
(a) Defined contribution plan
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident Fund, which is a defined contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue.
Contribution to defined contribution plan recognised, charged off for the year, are as under: (Rs. in Lacs)
2023-2024 2022-2023
Employer's contribution to provident fund 1.91 2.26
(b) Defined benefit plan:
Leave Encashment: During the year 2023-24, the amount paid to employees as leave encashment is Rs. NIL Gratuity :
The employee 's gratuity scheme is non -fund based. The present value of obligation is determined based on actuarial valuation using the 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.
Note 36 : Capital Management
The Company has adequate cashandbankbalances.The Company operates as an Investment Company and is registered as as Non- Banking Financial Company - Investments Company with Reserve Bank Of India. The Company has to maintain the minimum net-worth as prescribed by SEBI and RBI. The net-worth is monitored by Company on half yearly basis.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders through the optimisation of the debt and equity balanceThe management and the Board of Directors monitors the return on capital to shareholders.
B. Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statements and are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows::
Level 1: Quoted prices (unadjusted) 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).
Valuation
The fair values of the financial assets and liabilities (other than above) are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent.
Financial assets and liabilities measured at fair value as at Balance Sheet date:
(i) Short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii) Management uses its bestjudgement inestimating the fairvalue ofits financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments(other than above), the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different fromthe amounts reported ateach reporting date.
C. Financial Risk Management Framework
The Company’s business activities are exposed to a variety offinancial risks, namely market risk, liquidity risk, interest rate risk and credit risk. The Company’s management and the Board of Directors has the overall responsibility for establishing and governing the Company’s risk management framework. The Board ofDirectors whichis responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
i) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Financial instruments that are subject to credit risk principally consist of trade receivables, investments, loans, cash and cash equivalents, other balances with banks and other financial assets. None of the financial instruments of the Company result in material credit risk.
Credit risk with respect to trade receivables are limited,due to the Company has a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral, where appropriate as a means of mitigating the risk of financial loss from defaults. All trade receivables are reviewed and assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of financial assets.
Credit risk on cash and cash equivalents, other bank balances with bank is limited as the Company generally invest in deposits with banks.
The Company’s maximum exposure to credit risk as at 31st M arch, 2024 and 2023 is the carrying value of each class of financial assets.
ii) Liquidity risk
The Company's principal sources of liquidity are cash and cashequivalents' and cash flows generated from operations. The Company believes that its working capital is sufficient to meet the financial liability. The company has no borrowings.The Company has invested its surplus funds in fixed deposits with banks, thereby ensuring safety ofcapital and availability of liquidity as and when required. Hence, the Company carries a negligible liquidity risk.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024 and 31st March, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.The Company invests its surplus funds in bank fixed deposit which carry no or low market risk.
iii) Market Risk
M arket risk is the risk that the changes in market prices such as interest rates and equity prices 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 exposures within acceptable parameters, while optimising the return.
a) Interest rate risk
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 theCompany’s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company’s interest rate exposure is mainly related to borrowing obligations. The Company has no borrowings and hence the Interest rate risk is negligible.
b) Price risk
The Company's exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit and loss. Tomanage the price risk arising from investments, the Company diversifies its portfolio of assets.
To manage its price risk arising from investments in equity securities , the Company diversifies its protfolio across capitalisation sectors with large cap bias and active monitoring of the portfolio using effective strategic tools. Diversification of the portfolio is as per the Investment policy of the Company.
Note 38 : On 01.03.2024, Company has acquired 81 % shares of Whitewall India Private Limited (WIPL) . WIPL is sole distributor of
polymerized Diymix M ortars, which is manufactured by Mars U niversal Private Limited, a technology invented in Europe which is the most advanced in the world today.
Note 39 : Pursuant to the allotment of equity shares under Preferential issue by Company's subsidiary namely Sukartik Clothing Pvt. Ltd.
(SCPL) to its promoters ,the stake in SCPL stands diluted from 70.10% to 47.31% and has became Associate w.e.f 19.02.2024.Furtherthe loss ofRs. 544.37 lacs on account of dilution in stake has been considered in Consolidated Profit & Loss for the year ended 31.03.2024 and has been disclosed as an Exceptional Items in consolidated financials. Investment in SCPL has been accounted as per Equity Method as per applicable IND AS post 19.02.2024 .
Note 40 : As the Company has no activities other than those of an investment company, the segment reporting under Indian Accounting
Standard Ind AS 108 - ‘Operating Segments’ is not applicable. The Company does not have any reportable geographical segment.
Note 41 : Previous year's figures have been re-grouped/ re-classified, wherever necessary, to make them comparable with the current year's
figures.
Note 42 : The Company has neither paid nor provided interest on few of its borrowings during the financial year.
Note 43 : The Company has granted interest free unsecured Inter-Corporate loan of Rs. 12,00,000/-, year end balance of such loan is Nil
Note 44 : Some of the balances of Trade Receivables, Deposits, Loans and Advances, Advance received from customers and Trade payable are
subject to confirmation from the respective parties and consequential reconciliation/ adjustment.
Note 46 : Following are the additional disclosures required as per Schedule III to the Companies Act, 2013 vide Notification dated
March 24, 2021 :
a. Title deeds of Immovable Property
Title deeds of immovable properties in the case of land are held in the name of the Company.
b. Fair valuation of Investment property
The companyhas not classified anypioperty as Investment property, hence fairvaluation ofInvestment propertyby a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 does not arise
c. Revaluation of Property, Plant and Equipment and Right - of- Use Assets
The Company has not revalued any ofits Property, Plant and Equipment (including Right-of-Use Assets) during the current reporting period and also reporting period and also for previous years reporting period.
d. Loans or advances to specified persons :
There is no loan outstanding from subsidiary or any related party.
e. Details of Benami Property held:
There are no proceedings which have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
f. W illful Defaulter:
The Company has not been declared as W illful Defaulter by any Bank or Financial Institution or other Lender.
g. Relationship with Struck off Companies :
During the year, the Company does not have any transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.
h. Borrowings secured against current assets
The Company does not have any borrowings from banks or financial institutions on the basis of security of current assets the financial statements; hence no disclosure is required as such.
i. Registration of Charges or Satisfaction with Registrar of Companies ( ROC)
There are no charges against the companies which are yettobe registered or satisfactionyet to be registeredwith ROC beyond the statutory period, hence no disclosures are required as such.
j. Compliance with number of layers of companies
The Company has complied with the number oflayers prescribed under clause (87) of section 2 of the Actread withCompanies ( Restriction on number of Layers) Rules, 2 017.
k. Utilisation of Borrowed funds and share premium:
No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreignentities ( Intermediaries'), withthe understanding, whether recordedin writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
No funds (which are material either individually or in the aggregate) have been received by the Company fromany person(s) or entity(ies), including foreign entities (Funding Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalfofthe Funding Party ('Ultimate Beneficiaries') or provide any guarantee, security orthe like on behalf of the Ultimate Beneficiaries.
l. Undisclosed Income
The Company does not have any transactions 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). Also, there are nil previously unrecorded income and related assets.
m. Details of Crypto Currency Or Virtual Currency
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year, hence disclosure requirements for the same is not applicable
n Corporate Social Responsibility Activities
The C ompany is not require d to comply with the provisions of S ection 13 5 of the C ompanie s Act, 2013
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