3. Contingent Liabilities, along with their nature and description in brief as required under IND AS - 37, not provided for in the books of accounts, are
as under :
44. a) Previous year figures have been regrouped and rearranged, wherever considered necessary, to make them comparable with
those of current year.
b) Figures have been rounded off to the nearest rupee in lakhs.
5. Provision for income tax or MAT has been made in the books of accounts Rs.Nil (Previous year Rs. Nil ) under consideration, under the provisions
of the Income Tax Act.
6. A) PRIMARY SEGMENT (BUSINESS SEGMENT)
Business segments have been identified on the basis of the nature of products/services, their risk-return profile, the organizational structure and the
internal reporting system of the Company.
Reportable Segments:
Reportable segments have been identified as per the aggregation criteria specified in IND AS 108:’Operating Segments’
Segment Composition:
1) Fibre includes Staple Fibre, Tow and Tops.
2) Yarn includes all kinds of Yarn manufactured and sold by the by the Company.
Operating Segments:
1) The risk-return profile of the Company’s business is determined predominantly by the nature of its products and services.
2) In respect of geographical information, the Company has identified its geographical areas as (i) Domestic and (ii) Overseas. The expenses and
incomes which are not directly attributable to the business segments are shown as central administration costs. Unallocated assets mainly comprise
of investments, cash and bank balances, advance tax and unallocated liabilities mainly include tax provisions and provisions for employee retirement
benefits.
13. Following the order of Hon'ble High Court dated 30.08.2012, company has filed a Execution Petition before the court on 14.01.2013 praying therein
for attachment of bank account and other assets of M/s E.I. DuPont of USA to realize its claim of US$ 5 lakhs plus interest thereon amounting to US$
9.75 lakhs from the date of award (16.03.2002) till the date of petition (14.01.2013). The total amount of company claims as already decreed by the
court under the arbitration and Conciliation Act 1996 comes to Rs.814.49 lakhs and same has been treated as Income in the year 2012-13. The man¬
agement of the company is confident of recovery of these claims.
14. Financial risk management objectives and policies
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities
is to finance the Company's operations and to support its operations. The Company's financial assets include loans, trade and other receivables, and
cash & cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company's senior management oversees the management of these risks. The
company's senior management is supported by a Business Risk.
Management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This Business
Risk Management committee provides assurance to the Company's senior management that the Company's financial risk activities are governed by
appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company's policies and risk
objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarized as below:
Market risk
a) Price Risk
Fluctuation in commodity price in global market affects directly and Indirectly the price of raw material and components used by the Company in its
products. The key raw material for the Company’s business is Acrylonitrile.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Company's exposure to the risk of changes in market interest relates primarily to the Company's long term debt obligations with floating interest
rates. The Company is carrying its borrowings primarily at variable rate.
c) Interest rate Sensitivity
For the Purpose of computing interest rate sensitivity on the above borrowings, management has estimated a reasonably possible change in interest
rate as 50bps based on current as well as expected economic conditions. This analysis is based on Long Term Risk exposures outstanding at the
reporting date and assumes that all other variables, in particular foreign currency exchange rates, remains constant. The period and balances are not
necessarily representative of the average amounts outstanding during the period.
e) Credit risk
The credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations
towards the Company and arises principally from the Company’s receivables from customers and deposits with banking institutions. The maximum
amount of the credit exposure is equal to the carrying amounts of these receivables. The Company has developed guidelines for the management of
credit risk from trade receivables.
f) Liquidity risk
The liquidity risk encompasses any risk that the Company cannot fully meet its financial obligations. To manage the liquidity risk, cash flow forecasting
is performed in the operating divisions of the Company and aggregated by Company finance. The Company’s finance monitors rolling forecasts of
the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn
committed borrowing facilities / overdraft facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable)
on any of its borrowing facilities.
AUDITORS’ REPORT
Certified in terms of our separate report of even date annexed.
DHEERAJ GARG TEJINDER KAUR
For AKR & ASSOCIATES Addl. Managing Director
Chartered Accountants ALOK GOYAL DEVA BHARATHI REDDY
Regn.No.021179N Executive Director RAJA SHIVDEV INDER SINGH
SURINDER KANSAL SASHI BHUSHAN GUPTA
C.A. KAILASH KUMAR CFO
Place : CHANDIGARH Partner BHAVNESH K. GUPTA SANJAY KRISHAN AHUJA
Dated : 30th May 2025 M.No.505972 Company Secretary Directors
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