(A) Financial Risk Management Objectives and Policies
The Company’s principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to
finance the Company’s operations. The Company’s principal financial assets include trade and other receivables and cash and 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 and ensures
that Company’s financial risks are identified, measured and governed in accordance with the Company’s policies and risk objectives. The Board of Directors
reviews and agrees policies for managing each of these risks which are summarized below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk that affects the
Company comprises of one element: Interest rate risk. Financial instruments affected by market risk include loans, borrowings and deposits.
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 rates relates primarily to short term debt obligations with fixed interest rates.
(ii) 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. The Company is
exposed to credit risk from its operating activities and from its financing activities including deposits with banks and other financial instruments.
Trade Receivables
Customer credit risk is managed by the Company’s policy, procedures and control relating to customer credit risk management. Credit quality of a customer is
assessed based on an extensive credit rating and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are
regularly monitored. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial asset disclosed in respective note.
The Company does not hold collateral as security.
Cash deposits
Credit risk from balances with banks is managed by the Company in accordance with its policies. These policies are set to minimize concentration of risks and
therefore mitigate financial loss through counterparty’s potential failure to make payments.
(iii) Liquidity Risk
The Company manages its liquidity risk by using liquidity planning and balancing funds requirement vis a vis funds available. Various lines of credit available are
used to optimize funding cost and ensuring that adequate funds are available for business operations.
(B) Capital Risk Management
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the
business. Management monitors the return on capital as well as the level of dividends to equity shareholders.
The Company monitors capital using a ratio of adjusted net debt to equity. For this purpose, adjusted net debt is defined as total liabilities, comprising interest¬
bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Equity comprises all components of equity.
Note - 30 (a)
1. Previous Year's figures have been regrouped / reclassified wherever necessary to confirm to current year presentation.
2. Company has during the year granted loans to directors, companies / firms in which such directors are interested in contravention of Sec. 185 of the Companies
Act, 2013.
3. Wherever when original bills / vouchers/ supportings were not available during the course of our audit we have relied upon the vouchers / bills as certified by the
directors.
4. Trade Receivables and Trade Payables account also includes certain loan loan transactions.
Note - 30 (b)
Additonal Disclosure
a. there were no transactions that were not recorded in books of accounts and have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961.
b. During the year under Consideration the company has not traded or invested in crypto currency or vitual currency.
c. There are no charges or statisfaction of charges pending to be registered with registrar of companies beyond the statutory period.
d. The company has been not declared as willful defaulter by Reserve Bank of India till 31/03/2024.
e. The Company has complied with the no. of layers prescribed under clause (87) of Section 2 of the Act read with Copmpanies (Restriction on no.
of layers) Rules, 2017
f. The borrowing from the banks has been used for the specific purpose for which it was taken at the balance sheet date.
g. The Company is not covered under the provisions of Corporate Social Responsibility (CSR)
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