* The Company alloted 10% Cumulative Convertible Preference Shares (CCPS) that are convertible into equity shares at par during the period commencing three years from the date of allotment or ending on the five years from the date of allotment or such date as may be decided by their holders & approved by the controller of capital issue. The terms and conditions of CCPS are still in process of validation as per the new Companies Act, 2013 and SEBI "ICDR Guidelines". The conversion of CCPS into equity shares & listing them with stock exchange is possible only after terms and conditions of CCPS are validated by the members of the Company and stock exchange. Documents depicting terms ands conditions of preference shares are not with the company.
(b) Terms/ rights attached to equity shares
(i) The Company has only one class of equity shares having par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share held and is entitled to dividend, if declared at the Annual General Meeting. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the company (after distribution of all preferential amounts, if any) in the proportion of equity held by the shareholders.
(ii) Convertible Preference Shares are convertible into Equity Shares at par at the option of the shareholders and subject to the approval of the relevant authorities.
As per decision taken by the management, there is no need to provide any additional liability for Gratuity & Leave Encashment as majority of employees has been retrenched. Further, no actuarial valuation report have been obtained for such employees benefit as applicable financial reporting framework suggest Actuarial valuation at regular intervals which is taken as 3 years by the management.
# The Company has not received information from suppliers or service providers, whether they are covered under Micro, Small and Medium Enterprises (Development) Act, 2006 and hence it has not been possible to ascertain the required information relating to unpaid amounts, if any, as at year end together with interest paid or payable to them.
Note 22 Contingent Liabilities and commitments (to the extent not provided for)
(i) Claims against the company not accepted and not provided for Rs. NIL (Previous Year Rs. NIL)
(ii) Estimated amount of contracts remaining to be executed on capital accounts Rs. NIL (Previous Year Rs. NIL)
(iii) I ncome Tax authorities have raised demand amounts to Rs. 12.39 lakhs (Previous Year Rs. 12.39 lakhs) in respect of assessment year 2013 to 2021 due to certain disallowances and additions. The matters are pending before authorities. In the Opinion of management, no provision is required in respect of any matter as these demands are not expected to materialized.
Note 24 Segment Information
The company is engaged primarily in Job work and Manufacturing of pet jars/ bottle and caps. The company has only one business segment as identified by management named aforesaid. Segments have been identified taking into account nature of products and differential risk and return of the segment.
Note 27 Financial Risk Management Objective And Policies
The Company's Financial risk management is an integral part of how to plan and execute its business Strategies. The Company's Financial risk management policy is set by Board. The Companies activities are exposed to a variety of financial risks from its operation. The Key risks includes market risk, Credit Risk and Liquidity risk
Market risk
Market risk is the risk of future earnings, fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Value of financial instrument may change as result of change in the equity prices and other market changes may affect market risk sensitive instruments. Market risks is attributable to all market risk sensitive financial instruments and deposits.
The company has elaborate risk management systems to inform Board members about risk management and minimization procedures.
Commodity Price Risk and sensitivity
Commodity price fluctuation can have an impact on the demand of Bottles/ Caps for particular product. Therefore, company continuously keep on track the commodity price movement very closely and take advance production decision accordingly.
Credit risk
Credit risk is the risk that counterparty might not honours its obligations under a financial instruments or customer contract, leading to financial loss. the company is to credit risk from its operation activities (Primarily trade Receivables)
Trade Receiavles : Customer Credit Risk is managed based on company's establishment policy, Procedures and controls. The company assesses the credit quality of the counterparties, takingh into account their financial position, past experience and other factors.
The Company has well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting date on an individual basis. However a large number of minor receivables are regularly monitored and assessed.
Liquidity Risk:
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with the financial liabilities that are settled by delivering cash and another financial asset. The Company's approach is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when due. the Company relies on Operating cash flows to meet its need for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The company monitoring rolling forecasting of its liquidity requirements to ensure it has sufficient cash to meet Operational needs.
In Management view, there is not any reasonable certainty for future profits that's why Deferred Tax is not Recognised in Statement of profit &loss during the FY 2024-25.
Note 30 Capital Management
For the purpose of the company's capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company manages its capital structure and make adjustments in light of changes in economic condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. the company monitors capital using a gearing ratio, which is net debt divided by total capital and net debt. The company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
* Remarks on Current Ratio Working Capital was positive in the FY 2023-24 and FY 2024-25 though there is no major changes however there are slightly increase in GST Input credit and increase in trade payables that's why Ratio showing positive to 1.52. Because of this variance is showing -91.76%. As such there is no major change in working capital.
Note 32
Figures for previous year have been regrouped/rearranged financial wherever necessary.The accompanying notes are integral part of standalone financial statements - 2 to 32
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