1. The Company's investment properties consist of lands in India and includes an amount of Rs. 0.07 crores (31 March 2023: Rs. 0.07 crores) being assets given on a lease.
2. As at 31 March 2024 and 31 March 2023 the fair values of the properties are Rs. 12.25 crores and Rs. 10.26 crores respectively. These fair values are based on valuations performed by Nag Chowdhury Associates, an accredited independent registered valuer. Nag Chowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) has been adopted and the valuation is in accordance with that recommended by the International Valuation Standards. The fair value measurement can be categorised into level 3 category. There has been no change in the valuation technique as compared to 31 March, 2023.
3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements. All the title deeds of the investment properties are held in the name of the Company.
4. Information regarding income and expenditure of investment property:
(c) Other receivables - current:
Production Linked Incentive Scheme (PLI) for White Goods (Air Conditioners and LED Lights) manufacturers in India has been notified by the Department for Promotion of Industry and Internal Trade (DPIIT) vide notification No. CG-DL-E-16042021-226671 dated 16.04.2021. The scheme is applicable from FY 2022-2023 to FY 2027-2028.
During 2021-22, the Company applied for the scheme and the same was approved by DPIIT and under the scheme the Company is eligible to receive a certain percentage of sale of eligible products as incentives during the above stated period. Accordingly, under the scheme, the Company received a sanction of Rs. 3.00 crores from DPIIT during the year and the same has been recognised as a separate line item under Note 22 -"Other Income" in the statement of profit and loss for the financial year 2023-24 and has been shown under Note 7 - "Other current financial assets" in the Balance Sheet. The grant has since been received.
(d) The Company has not advanced or loaned or invested funds to any other persons or entities (intermediary) with the understanding 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 or shall provide guarantee, security or the like to or on behalf of the Company.
1. The cost of inventories recognised as an expense includes Rs. 3.11 crores (31 March 2023 : Rs.3.11 crores) in respect of write-downs of inventory to its net realisable value. Further a sum of Rs. 2.99 crores (31 March 2023: Rs. 2.91 crores) is in respect of reversal of such write-downs. The write downs have been reversed primarily as a result of increased sales price or subsequent disposals.
2. Cost of inventories carried at net realisable value Rs. 4.36 crores (31 March 2023: Rs. 4.41 crores). Carrying amount of inventories carried at net realisable value Rs. 0.54 crores (31 March 2023: Rs. 0.72 crores)
3. Working capital loan from a bank is secured by hypothecation of inventories of the Company's Steel Division. Value of inventory of the Company's Steel Division as at 31.03.2024 is Rs. 14.95 crore. For details of complete hypothecation refer Note 20 (note (e)(i)A).
Transfer of financial assets
The Company discounted certain trade receivables with an aggregate carrying amount of Rs. 4.53 crores (31 March 2023: Rs. 1.89 crores) to a bank for cash proceeds of Rs. 4.52 crores (31 March 2023: Rs. 1.87 crores). If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying value of the receivables and has recognised the cash received on the transfer as secured borrowings.
At the end of the reporting period, there were no trade receivables that have been transferred but have not been derecognised.
Rights, preferences and restrictions attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.
Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
(a) For sanction of term loan amounting to Rs. 16.85 crores by Federal Bank Ltd. (Balance as at 31 March, 2024 is Rs. 9.96 crores), the following securities have been created:
The charge shall operate on first charge basis over the Company's Steel Division's entire current assets, documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.
The said loan is being paid in equal quarterly installments of Rs. 0.84 crores and with a final installment payment of Rs. 0.72 crores, the same would be discharged by January, 2027.
(b) For sanction of credit facilities amounting to Rs. 20.00 crores (including Capex Letter of Credit amounting to Rs. 15 crores as its sublimit) and Rs. 30.00 crores by ICICI Bank Ltd. (Balance as at 31 March, 2024 is Rs. 22.00 crores), following securities have been created:
- Exclusive charge over the movable properties including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company's stamping and
motor business's factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the course of transit or in high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition in such manner that the security cover of 1.25 times is maintained. For the limit utilised: (a) the Term Loan of Stamping Division is being repaid in 20 quarterly installments of Rs. 1.75 crores starting from 19 May, 2022. The same would be discharged by February 2027. (b) The Term Loan of Motor Division will be repaid in in 20 quarterly installments of Rs. 0.50 crores starting from 7 December, 2024 and the same would be discharged by September 2029.
(c) For sanction of credit facilities amounting to Rs. 60.00 crores and Rs. 10.00 crores by DBS Bank India Ltd. (Balance as at 31 March, 2024 is Rs. 3.10 crores), following securities have been created:
- Hypothecation by way of first and exclusive floating charge over all present and future movables plant and machinery, equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories and other moveables whether or not installed and whether lying loose or in cases or which are now lying or stored in or about and may hereafter from time to time during the currency of this deed be brought into or upon or be stored in or about all the Company's factories, premises, warehouses and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the courses of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition (all pertaining to Company's units located at Kolkata and Bangalore) stored or to be stored at the Company's Godowns or premises or wherever else the same may be except asset charged specifically for debt availed, if any for purchase of conventional press line subject to NOC being sought from DBS. The Term Loan was prepaid partially on few occasions and finally the balance amount of loan is being repaid in 7 equal quarterly installments starting from March, 2023. This loan would be discharged by September 2024.
(d) For sanction of external commercial borrowings amounting to USD 2.00 crores by Standard Chartered Bank, London, following securities have been created:
- Hypothecation by way of first and exclusive charge over all present and future moveable properties of the Company's manufacturing unit of air conditioners in Goa and on the existing plant and machinery of washing machine division at Goa (Verna) plant (except exclusive charge to term lenders), including without limitations its moveable plant and machinery, furniture and fittings, equipments, computers, hardware, computer software, machinery spares, tools and accessories and other movables, both whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company's premises, warehouses, stockyards and godowns or those of the Company's agents, affiliates, associates or representatives or at various worksites or at any upcountry place or places wherever else the same maybe or be held by any party including, without limitation, the following plot no. N-7, Phase IV, Survey No. 261/10, Verna Industrial Estate, Verna, Goa - 403722. The external commercial borrowings is standing at USD 0.37 crores as at 31 March, 2024. The loan is being repaid in 13 equal quarterly installments starting from 1 October, 2021. The same would be discharged by October, 2024.
(#) The Company has adopted the income approach as prescribed in Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance. Government grants received (related to depreciable assets) are set up as deferred income and the same is recognised as income in the Statement of Profit and Loss on a systematic basis over the remaining useful life of the related asset. Any balance remaining as at the year end is shown in note no 17 - "Other Liabilities" as "Deferred government grant". There are no unfulfilled conditions or other contingencies attaching to any government grant that has been recognised. During the year no Government grants has been received related to depreciable assets.
a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management's best estimate of the future outflow of economic benefit that will be required under the Company's obligation for warranties. It also includes provision in respect of warranty and installation cost in the year of sale of goods of an associate for which the Company has earned revenue for providing services. The revenue earned by the Company for the same is included under 'Sale of services' in Note 21.
b. Provision for warranty is expected to be utilised over a period of 1 to 5 years.
c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processes and discount rates.
d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.
(a) The Company has used the borrowings from banks for the specific purpose for which they were taken at the balance sheet date.
(b) The Company has borrowings from banks on the basis of security of current assets and the final quarterly statements of current assets filed by the Company with the banks are materially in agreement with the books of accounts and there is no discrepancy that has been identified.
(c) All charges for the borrowings have been registered with the Registrar of Companies as at the balance sheet date.
(d) The Company has not received any fund from any other persons or entities (Funding Party) with the understanding that the Company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party or shall provide guarantee, security or the like to or on behalf of the Funding Party.
(e) Charge and hypothecation details are as follows:
(i) Credit facilities utilised as at 31 March, 2024
(A) Hypothecation details of working capital demand loan by Federal Bank Limited (Utilised as at 31 March, 2024 Rs. 1.50 crores) as at 31 March, 2024:
Working capital facilities sanctioned by The Federal Bank Limited is Rs.38.00 crores Out of the sanctioned limit Rs. 32.00 crores can be used inter-changeably between fund based and non-fund based. Following securities has been created:
The charge shall operate on first charge basis over the Company's Steel Division's entire current assets, documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.
(ii) Credit facilities unutilised as at 31 March 2024
(B) For sanction of working capital facility amounting to Rs 100 crores by Standard Chartered Bank (Unutilised as at 31 March, 2024) following securities have been created
(i) First pari passu charge on the entire current assets, both present and future.
(ii) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).
(iii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).
(C) For sanction of capex facility amounting to Rs. 20.00 crores by Standard Chartered Bank (Unutilised as at
31 March, 2023), following securities have been created:
(i) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).
(ii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).
(D) For sanction of credit facilities amounting to Rs. 50.00 crores by ICICI Bank Ltd. (Unutilised as at 31 March,
2023) , following securities have been created:
- First and pari passu charge on all the current assets of the Company - the whole of the Company's stocks of raw materials, good-in-process, semi-finished and finished goods, consumable stores and spares and such other movables, including book debts, bills whether documentary or clean, both present and future, whether in the possession or under the control of the Company or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company's factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.
- Hypothecation by way of second charge on the moveable properties of the Company (save and except current assets) including its moveable plant and machinery, machinery spares, tools and accessories, non-trade receivables and other moveables both present and future whether in the possession or under the control of the Company or not, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company's factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.
- Hypothecation by way of first and pari passu charge on the receivables of the Company - all amounts owing to and received and / or receivable by, the Company and / or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from / in connection with business and all rights, titles, interest, benefits, claims and demand whatsoever of the Company into or in respect of all the aforesaid assets, including but not limited to the Company's cash-in-hand, both present and future. This facility remains unutilised as at 31 March, 2024.
(E) For sanction of credit facilities amounting to Rs. 50.00 crores by HDFC Bank Ltd (Unutilised as at 31 March,
2024) , following securities have been created:
- First pari passu charge by way of hypothecation on all the stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other goods, movable assets or merchandise whatsoever now.
- First pari passu charge by way of hypothecation on all the book debts, amounts outstanding, monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due.
(F) For sanction of credit facilities amounting to Rs. 35.00 crores by DBS Bank Ltd (Unutilised as at 31 March,
2024), following securities have been created:
- Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-
finished goods, stocks of raw materials, work in process located at various factories/warehouses/ godowns of the Company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the Company's present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.
- Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc stored or to be stored at Company's godowns or premises situated at 14, Taratala Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore-560048 (Engineering Division) or wherever else, the same may be.
(G) For sanction of credit facilities amounting to Rs. 60.00 crores by Kotak Mahindra Bank Ltd (Unutilised as at 31 March, 2024), following securities have been created:
- First Pari Passu hypothecation charge on all existing and future current assets of the Company including:
(i) book-debts, receivables, outstanding moneys, claims, demands, bills, contracts, engagements and securities belonging to or held by the borrower and which are now due and owing or accruing and which may at any time hereafter during the continuance of the security become due and owing or accrue to the borrower.
(ii) stocks of raw materials, finished and semi-finished goods, goods in process and consumable stores, which are now lying or stored in or which may hereafter from time to time during the continuance of the security be lying or stored in or brought into or be in or about the factories and godowns of the borrower or warehouses, whichever situate; and
(iii) related moveables in the course of transit or delivery, whether now belonging or which may hereafter belong to the borrower or which may be held by the person at any place within or outside India to the order or disposition of the borrower and all documents of title including bills of lading, shipping documents, policies of Insurance and other instruments and documents relating to such moveables together with benefits of all rights thereto.
32. Defined benefit plan - Gratuity
The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordance with its trust deeds and rules. The concerned trust is managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.
The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.
Risk management
The risks commonly affecting the gratuity liability and the financial results are expected to be:
1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.
2. Salary inflation risk - Higher the expected increase in salary, higher the defined benefit obligation.
3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
- The Company is primarily engaged in business of engineering (fine blanked components and stamping), home appliances, motors and steel. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated". These segments have been reported in the manner consistent with the internal reporting to divisional CEO's, who are the chief operating decision makers.
- The geographical information considered for disclosure are revenue within India and revenue outside India.
- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.
Leases
The Company is obligated under cancellable leases for residential, office premises, land, warehouses, etc. Total rental expense under cancellable short term operating lease amounted to Rs. 7.46 crores (31 March 2023: Rs. 8.55 crores).
In applying Ind AS 116 - "Leases", the Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics. The leases with remaining lease term of less than 12 'months are considered as "short term leases".
38. Dues to micro, small and medium enterprises
The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the 'Micro, Small and Medium Enterprise Development Act, 2006' ('MSMED Act, 2006'). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.
39. Financial instruments and related disclosures i) Capital management
The Company's capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.
Investments exclude investment in subsidiaries amounting to Rs. 21.60 crores (31 March 2023: Rs. 21.60 crores) and in an associate amounting to Rs. 97.00 crores (31 March 2023: Rs. 97.00 crores) which are shown at cost in balance sheet as per Ind AS 27 - 'Separate Financial Statements'.
(iii) Financial risk management objectives
The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company's risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.
a) Liquidity risks
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk that the Company may not be able to settle its financial liabilities as they become due does not exist.
The following tables shows a maturity analysis of the anticipated cash flows for the Company's derivative and nonderivative financial liabilities.
b) Market risks
The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are decentralised but administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.
The Company's investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Profit and Loss.
Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.
The Company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates. Hence interest rate fluctuations on borrowings does not affect the Company significantly.
c) Foreign currency risk
The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro, RMB, JPY and AED) which are subject to the risk of exchange rate fluctuations.
iii) Foreign currency sensitivity
For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax would change by Rs. 2.25 crores for the year ended 31 March 2024 (31 March 2023: Rs 2.47 crores).
d) Credit risk
Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.
Bank deposits are primarily held with highly rated and different banks.
The Company's customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.
In respect of financial guarantees provided by the Company to banks/financial institutions, the maximum exposure which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.
The Company's historical experience of collecting receivables and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the management.
Goodwill as stated above is carried at cost and annually tested for impairment in line with applicable Accounting Standards. Impairment testing for goodwill has been carried out considering their recoverable amounts which, inter-alia, includes
estimation of their value-in-use based on management projections. These projections have been made for a period of five years and consider various factors, such as market scenario, growth trends, growth and margin projections and terminal growth rates specific to the business. For such projections, discount rate of 15% and long-term growth rate of 3% have been considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of market benchmarks. Based on the above assessment, no impairment has been recognised during the year.
41. The Company has disaggregated revenues from contract with customers for the year by the type of goods and services. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Refer note 21 for revenue disaggregation.
The following table includes revenue expected to be recognised in the future related to annual maintenance contracts and extended warranty services and advance from customers.
The Company recognized revenue of Rs. 83.02 crores (31 March 2023 : Rs. 70.60 crores) arising from contract liability balances comprising of income received in advance on annual maintenance contracts and extended warranty services and advance from customers at the beginning of the year.
Invoicing in excess of revenues from sale of services are classified as "Income received in advance on annual maintenance contracts and extended warranty services" and Invoicing in excess of revenues from sale of goods are classified as "Advance from customers" in note no 17.
Reasons where the change in the ratios is more than 25% as compared to preceding years:
a) Debt-equity ratio has reduced due to repayments of borrowings and increase in equity (mainly attributable to profit for the year)
b) Earnings before depreciation, interest and tax (EBDITA) has increased due to higher income and decrease in material cost as a % of income. EBDITA being the numerator for the debt service coverage ratio, hence the increase in the ratio.
c) The ratios have been impacted due to increase in profits for the year for reasons stated in (b) above.
d) The increase in working capital for the period is more than the increase in sales and service income (both in no of times), hence the ratio has decreased.
e) Capital employed has not changed significantly, however earnings before interest and tax has increased for reasons stated (b) above
f) There has been a fall in average current investment for the year. This being the denominator for the return on investment. Hence the increase in the ratio
As on 31st March 2023, trade payables includes Rs. 0.88 crores for liabilities under supplier financing. The weighted average of which have extended the settlement of original payable to 61 days after physical supply and are due for settlement with 48 days after the year end.
The Company has entered into supplier financing arrangement to ensure easy access of credit to its supplier. The arrangement is mostly operating in nature as the financing element in the transaction is insignificant and the time frame in the financing arrangement is mostly consistent with the supplier terms available to the Company. The amount payable w.r.t. such supplier financing is classified as trade payables.
44. As per the E-Waste (Management) Rules, 2016, as amended, Companies dealing in certain categories of products as specified in Schedule-I therein are required to undertake Extended Producer Responsibility (EPR) for its end-of-life products. The obligation for a financial year is measured based on sales made in the preceding 9th/10th year and the Company has met its obligations for the current year. In accordance with Appendix B of Ind AS 37, 'Provisions, Contingent Liabilities and Contingent Assets', the Company will have an e-waste obligation for future years, only if it participates in the market in those years.
45. No proceedings have been initiated or is pending against the Company for holding any benami property under the 'Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
46. The Company has not been declared a wilful defaulter by any banks.
47. Balance outstanding with nature of transaction with struck off companies as per section 248 of the Companies Act, 2013
48. The Company has complied with the number of layers prescribed under (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
49. All transactions have been recorded in the books of accounts and there are no unrecorded income that have been disclosed during the year in the tax assessments under the Income Tax Act, 1961. Moreover there are no unrecorded income and related assets pertaining to previous years.
50. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
51. The Bangalore factory of Engineering Division at Malur is situated on a leased premises. In the current year, in view of the anticipated increase in volume of business in near future, the Company decided to acquire a plot of land at Malur and construct a factory with adequate infrastructure including deploying robotics to absorb the anticipated workload. The Board of Directors in its meeting held on 2nd November 2023 accorded approval to buy a land with a capital outlay of around Rs. 48.00 crores.
The existing leasing agreement at Malur, has a termination clause, which provides that the lessee (Company) can terminate the said agreement without cause by giving three months written notice to the lessor expressing its intention to terminate the lease deed. The Company has decided to exercise the same and discontinue the lease arrangement at Malur by March 2026 and shift to new location.
Consequent to the above decision for short closing the lease arrangement, the Company has given effect of the same in the financials for FY 23-24 as per INDAS 116 and accordingly the lease liability is remeasured and an amount of Rs. 43.59 crore is recorded as an adjustment to the right-of-use asset, while the excess of lease liability over right-of-use asset of Rs. 4.12 crore is included under 'Other Income' in the Statement of Profit and loss.
52. The standalone financial statements were approved by the Board of Directors on 28 May 2024.
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