b) Rights, preferences and restrictions attached to shares
Equity shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
c) Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company
‘Investment in note 6 includes investments in subsidiaries and joint ventures which are carried at cost and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures”. Hence, the same have been excluded from the above table.
B. Measurement of fair values
The below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follow:
Level 1: Quoted prices in active markets for identical assets and liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observabe for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
NOTE 35 : Financial instruments - Fair values and risk management
The Company's principal financial liabilities comprises of trade and other payables. The Company's financial assets include trade and other receivables, and cash & cash equivalents that it derives 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 the Board of Directors that advises on financial risks and the appropriate financial risk governance framework for the Company. This 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 summarised as below:
(i) Credit Risk
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.
The Company is exposed to cedit risk for trade receivables and other financial assets.
Other financial assets
Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, advances to employees etc.
• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.
• The Company has given security deposit to various government authorities. Being government authorities, the Company does not have exposure to any credit risk.
Trade and other receivables
The exposure to credit risk on accounts receivables and amounts due from related parties is monitored on an ongoing basis by the management and these are considered recoverable by the company's management. Accounts receivables were outstanding from few customers and hence the Company has concentration of accounts receivables and cosequent risk to that extent.
In view of the management based on the company's past history as well as forward looking estimates at the end of each reporting period, receivables are good and fully recoverable.
The following year end trade receivables, loans and other financial assets balances, though overdue, are expected to be realised in the normal course of business and hence, are not considered impaired as at March 31,2021 and March 31,2020 :
(ii) Liquidity Risk
The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects.
Management monitors forecasts of the Company's liquidity position and cash and cash equivalent on the basis of expected cash flows.
Financing arrangement
The Company had access to the following undrawn borrowing facilities at the end of the reporting period:
(iii) 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 comprises of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.
(a) Currency risk
Currency risk faced by the company is minimal as there are minimal foreign currency transactions. Most of the monetary assets and liabilities are denominated in United States Dollar (USD).
(b) Interest rate risk
Interest rate risk is the risk of variability in profit due to change in interest rates on interest bearing assets and interest bearing liabilities.
NOTE - 36 CAPITAL MANAGEMENT
The Company determines the amount of capital required on the basis of the annual business plan coupled with long term and short term strategic investments and expansion plans. The funding needs are met through equity, cash generated from operations, long terms and short term bank borrowings.
The Company monitors capital using a ratio of ‘adjusted net debt' to ‘adjusted equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents. Adjusted equity comprises all components of equity. The Company’s adjusted net debt to equity ratio is as follows.
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NOTE - 38 CAPITAL COMMITMENT AND CONTINGENT LIABILITIES
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Amount in Lakhs
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Particulars
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31st March 2024
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31st March 2023
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Estimated value of capital contracts yet to be executed & not provided for
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Contingent liabilities not provided for
Letter of credit, Guarantees and counter guarantees
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352.37
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346.40
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Liabilities Disputed in appeals
Excise duty/ Service Tax/Income Tax
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393.45
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415.35
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NOTE - 39 DISCLOSURES IN RESPECT OF RELATED PARTIES TRANSACTIONS (IND AS 24)
List of Related parties with whom transactions have been taken place during the year.
(a) Controlling Companies: There is no Controlling Company
(b) Subsidiary and Fellow Subsidiary Companies: There is no Subsidiary and Fellow Subsidiary Company
(c) Associate Companies: There is no Associate Company
(d) Other Related Parties
(1) Jyoti Ltd.
(2) Insutech Industries Ltd
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