xxiii. Financial liabilities and equity instruments Classification as debt or equity
Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in statement of profit and loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
Financial liabilities
All financial liabilities are subsequently measured at amortized cost using the effective interest method.
xxiv. Earnings per equity share
Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods.
xxv. Critical accounting estimates and judgments
In the application of the Company's accounting policies, the directors of the Company are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates are:
- Estimation of current tax and deferred tax expense
- Estimation of values of contingent liabilities
Estimates and judgment are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
50. As on date company does not have any share application money pending for allotment.
51. Company has not issued any preference share or convertible securities.
52. The following are analytical ratios for the year ended March 31, 2024 and March 31, 2023
Sno1: The current Ratio - Ratio have an adverse effect due to significant increase in the value short term Borrowings to Rs. 110.21 Crores (PY Rs. 79.29 Crores).
Sno2: Debt Equity Ratio - The overall change in the Short-term borrowing to meet the Working Capital Requirement has a significant impact in the ration in current year (Rs. 110.21 Crores) as compare to previous year (Rs. 79.29 Crores).
Sno4: Return on Equity Ratio- The ratio have changed mainly due to the increase in Shareholder's Equity and variation in Net Profit is due to volatility in price of commodity in the market.
Sno6: Trade Receivable Turnover Ratio - The ratio have been impacted adversely due to decline in the total revenue of Rs. 1699.67 Crores (PY Rs. 2236.15 Crores).
Sno7: Trade Payables are at very low levels almost 1 day of Total Purchase. Same is at consistent level at Rs. 5.05 Crores (PY Rs. 6.05 Crores). Slight reduction in Creditors have result in change in Ratio.
Sno.8: Net Capital Turnover Ratio- The ratio have been changed mainly due to increase in the working capital to Rs.263.66 Crores (PY Rs. 230.58 Crores).
Sno9: Net Profit Ratio- The ratio have changed mainly due to variation in Net Profit is due to volatility in price of commodity in the market and due to decrease in revenue to 1706.05 crore (PY Rs.2237.76 crores)
Sno10: Return on Capital Employed- The ratio have changed mainly due to increase in Shareholder's Equity.
Sno11: Return on Investment/Total Assets- The ratio have changed mainly due to increase in total Assets to Rs.456.11 crore (PY Rs. 382.83 crore).
54. MICRO, SMALL & MEDIUM ENTERPRISES
As per the information available with the Company, the Company does not owe any dues (principal as well interest) as at 31st March 2024 to Micro, Small & Medium enterprises. Company had paid all dues according the provisions under Micro, Small & Medium Enterprises Development Act, 2006. The amount of interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year -Nil
55. Corporate Social Responsibility
As per Section 135 of Companies Act 2013, a company meeting the applicability of threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on Corporate Social Responsibility (CSR) Activities. The Areas for CSR activities are eradication of hunger and malnutrition, promoting education, art& culture, health care, destitute care and rehabilitation, environment sustainability, disaster relief and rural development project. A CSR committee is formed by the company as per the act.
56. Crypto Currency Transaction during the year NIL.
57. Previous year's figure have been regrouped, rearranged and recast where ever it is necessary.
58.
59. Note no. 1 to 58 forms an integral part of Financial Statement.
AS PER OUR REPORT OF EVEN DATE ANNEXED
For, Narendra Kumar Jain Chartered Accountants Firm Reg. No. 004110C
Vijay Shrishrimal Dhirendra Shrishrimal
(Chairman & Managing Director) (Whole Time Director & CFO)
DIN:00323316 DIN: 00324169
Narendra Kumar Jain Partner
M.No.073155
Neelam Wadhwani
(Company Secretary & Compliance Officer)
Date:
Place: Raipur UDIN:
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