6 Terms/rights attached to equity shares :
- The company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in indian rupees. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.
- In the event of liquidation of the company, the holders of the Equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proporation to the number of equity shares held by the share holders.
I. Capital reserve represents reserve created pursuant to the business combinations and includes forfeited shares.
II. General reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, bonus issue, etc.
III. Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to the shareholders.
Details of security:
1. Primary Security: The Cash Credit loan from Punjab National Bank is secured against hypothecation of ship/scrap/other trading stocks, Book debts and other curret assets generated out of ship breaking operations (present and future). Inland Letter of credit is secured against DA/DP bills and Foreign Letter of Credit is secured against DA/DP bills, Document of title of goods, exclusive hypothecation of the ship/Scrap/other trading stocks, book debts and creation of charge on other current Assets.
2. Collateral Security: Exclusive charge of Punjab National Bank by way of mortgage of a) Flat No.13-C, 13th Floor, Welington View, Tardeo, Mumbai-400034 (Owned by HUF of director), b) 601, Kalpvruksha Heritage, Colaba, Mumbai-400005 (Owned by director), c) Flat No.141, Persepolis Apt, Cuffe Parade, Mumbai-400005 (Owned by director) d) 13, Lifescape Acquino, Plot No.1262/B, Near Tata Press, Prabhadevi, Mumbai-400025 (owned by Group Company) e) Charge on block of movable and immovable assets and f) Personal guarantee of two directors and a group company.
Note 5.2 : Employee benefits A. Defined contribution plans:
Eligible employees of the Companyare entitled to receive benefits in respect of provident fund, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The contributions are made to the provident fund as set up by Government.
Note 5.4 : Capital Management
The Company's capital management is intended to create value for shareholders by facilitating the achievement of long-term and short-term goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic investment and expansion plans.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes, within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.
(b) Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below. Except for the following, the management considers that the carrying amounts of financial assets and financial liabilities recognised in the standalone financial statements approximate their fair values:
(ii) Quantitative disclosures fair value measurement hierarchy for liabilities :
Company does not have any financial liability which is measured either at Fair value through profit and loss account or measured at Fair value through other comprehensive income.
(c) Financial risk management
In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments.
The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater predictability to earnings. In line with the overall risk management framework and policies, the management monitors and manages risk exposure through an analysis of degree and magnitude of risks.
Market risk
Market risk Market risk is the risk of any loss in future earnings, in realising fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
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 the Company'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 debt obligations.
This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
Foreign currency risk
The fluctuation in foreign currency exchange rates may have a potential impact on the statement of profit and loss and equity.
The Company, as per its risk management policy, uses foreign currency forward contracts primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Company's cost of imports and cost of borrowings and consequently may increase the cost of financing the Company's capital expenditures.
Equity price risk
Equity price risk is related to change in market reference price of investments in equity securities held by the Company. The fair value of quoted investments held by the Company exposes the Company to equity price risks. In general, these investments are not held for trading purposes.
The fair value of quoted investments in equity, classified as fair value through profit and loss as at March 31, 2025 and March 31, 2024 was ^1006 and ^678, respectively. Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, balances with bank, bank deposits. None of the financial instruments of the Company result in material concentration of credit risk.
Trade receivables
Customer credit risk is managed by the Company's internal policies, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on market feedback and credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in independent markets.
Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow and outflow.
The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.
1. The Company has ongoing disputes with income tax authorities relating to tax treatment of certain items. These mainly include disallowance of expenses, tax treatment of certain expenses claimed by the Company as deduction and the computation of or eligibility of the Company's use of certain allowances.
2. The Company has deposited Rs.6.19 Lacs (March 31,2024: Rs.6.19 Lacs) under protest against demand of Rs. 12.38 Lacs raised by Excise & Customs Department. The matter is pending before the appellate authority (CESTAT). The company expects to sustain its position on ultimate resolution of the said appeal.
3. The Company has deposited Rs.155.63 Lacs (March 31,2024:Rs.155.63 Lacs) under protest agaisnt demand raised by Gujarat Maritime Board (GMB) on account of amendement fees and delayed interest.The matter is pending before the appellate authority of GMB. The company expects favourable resolution of the said appeal.
4. The Company has deposited amount under protest of Rs.12.51 Lacs (March 31, 2024 : Rs. 12.51 Lacs) in respect of various demands relating to customs and excise duty. The matters are pending before the various appellate authorities. The company expects favourable resolution of the said appeals.
Note 5.11 : Disclosures required under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006:
The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise registered under the applicable category as perthe provisions ofthe Micro, Small and Medium Enterprises (Development) Act, 2006 (MSMED Act, 2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the confirmations received by the company upto the date of the financial statements.
Note 5.12 : Other Notes
i) The figures for the previous year have been reclassified/ regrouped wherever necessary for better understanding and comparability.
ii) The balances of trade receivables, other current andd non current assets, trade payables and other current and non current liabilities are unsecured and subject to confirmation from the respective parties.
iii) The company has invested in two partnership firms and balance outstanding in current capital account as on March 31, 2025 is Rs.22.01 Crores (As on March 31, 2024 Rs.24.70 Crores). Persuant to partnership deed exceuted among partners no interest is payable or recoverable to or from partners on balances outstanding in current capital account.
iv) In the opinion of the Management Long Term Loans and Advances, Other Non Current Assets, Current Assets and Other Current Assets fetch approximately the value as stated in the Financial Statement if realised in the ordinary course of business subject to balance confirmation. The provision for all known liabilities is adequate and is not in excess of amounts considered reasonably necessary.
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