(E) The company has one class of Equity Shares having a par value of Rs. 10.00 per share. Each Shareholder is eligible for one vote per share held and has same right to dividend.
(F) No bonus shares have been issued during five years immediately preceding 31st March, 2024.
(G) Shares reserved for issue under options and contracts or commitments for the sale of shares of disinvestment, including the terms and amounts- Nil
(H) For the period of five years immediately preceding the date at which the Balance Sheet is prepared-.
1) aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash- Nil
2) aggregate number and class of shares bought back- Nil
*Capital Work in progress amounting to Rs. 464.47 Lacs on which there is no progress and in absence of any decision regarding the treatment and usability of the same, the Company has considered 50% impairment on the same and provided for the same.
**(i) The Company has paid advances Rs.470 Lacs to Arch Herbals Pvt Ltd in the Financial Year 2020 and 2021 on behalf of Omkar Speciality Chemicals Ltd against which material was supposed to be supplied by OSCL, in the meantime OSCL admitted into CIRP, Company have filed claim with Resolution Professional status of which is still under inspection.. The said advance is forming part of Note 12- Other Current Assets- Advance paid to Suppliers.
(ii) Amount receivable of Rs.848.54 lacs from Vivid Finance & Holdings Ltd is forming part of Note 12- Other Current Assets- Advance paid to others. The same is also outstanding since long and a dispute is there regarding the recoverability of the said amount, however, the Company is making best possible efforts to recover the same.
Provision for Doubtful Advances is created at 50% during Quarter 4 FY 2023-24, for both advances (i) & (ii)
(iii) Loss due to fire includes Impairment of value of unit in Mahad on account of Fire due to floods
Note 29 : Financial instruments
1. The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction
between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments
(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.
2) Fair Value Hierarchy
Costs of certain unquoted equity instruments has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
Measurement of Fair Values:
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
The fair values of loans taken from banks and other parties, and preference shares is estimated by discounting cash flows using rates currently available for debt/instruments with similar terms, credit risks and remaining maturities. Management regularly assessses a range of reasonably possible alternatives for those significant observable inputs and determines their impact on the total fair value
The fair values of loans given to employees and other parties, and security deposit given is estimated by discounting cash flows using rates currently available for instruments with similar terms, credit risks and remaining maturities. Management regularly assessses a range of reasonably possible alternatives for those significant observable inputs and determines their impact on the total fair value
Note 30 : Employee Benefit
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on retirement / resignation or retirement under VRS at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.
The service cost and the net interest cost would be charged to the Profit & Loss account. Actuarial gains and losses arise due to difference in the actual experience and the assumed parameters and also due to changes in the assumptions used for valuation. The Company recognises these remeasurements in the Other Comprehensive Income (OCI).
The Company has a defined benefit obligation for Leave encashment which is partly funded. Generally the leave encashment is paid to employees in case of resignation, retirement under VRS or retirement except in some case the same is paid annually.
Discount Rate:
As per para 83 of Ind AS 19,the rate used to discount other long term employee benefit obligation (both funded and unfunded ) shall be determined by reference to market yield at the Balance Date on high quality corporate bonds. In countries where there is no deep market in such bonds the market yields (at the Balance Sheet Date) on government bonds shall be used. The currency and term of the corporate bond or government bond shall be consistent with currency and estimated term of the post employment benefit obligation.
Salary Growth Rate:
This is Management's estimate of the increases in the salaries of the employees over the long term. Estimated future salary increases should take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
Rate of Return on Plan Assets :
This assumption is required only incase of funded plans. Interest income on plan assets is calculated using the rate used to discount the defined benefit obligation
Note 33 : Financial Risk Management 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 the managing board. The details of different types of risk and management policy to address these risks are listed below:
(a) Market Risk:-
Market risk is the risk of loss of future earnings, fair values or 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 the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits,foreign currency receivables, payables and loans and borrowings. The objective of market risk management is to avoid excessive expsoure in our foreign currency revenues and costs
(a)(i) Market Risk - Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. The company's exposure to the risk of changes in market interest rates primarily to the Company's borrowings, both short term and long term obligations with floating interest rates.The company is also exposed to interest rate risk on its financial assets that include fixed deposits (which are part of cash and cash equivalents) since all these are generally for short durations, there is no significant interest rate risks pertaining to these deposits
Sensitivity analysis to interest rate risk
The company doesn't account for any fixed rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
(a)(ii) Market Risk - Price Risk
The Company has no surplus for investment in debt mutual funds, deposits etc. The Company does make deposit with the banks to provide security against gurantee issued by bank to companys trade payables. Deposit is made in fixed rate instrument. In view of this it is not susceptible to market price risk, arising from changes in interest rates or market yields which may impact the return and value of the investments.
(a)(iii)Market Risk - Currency Risk
The fluctuation in foreign currency exchange rates may have a potential impact on the statement of profit and loss and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The company is exposed to currency risk on account of its trade payables in foreign currency. The functional currency of the company is Indian Rupees. The Company follows a natural hedge driven currency risk mitigation policy to the extent possible
(b) 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, and arises principally from the Company's receivables from customers. The carrying amount of Financial Assets represents the maximum credit exposure
Trade Receivables
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, industry information, business intelligence and in some cases bank references.
Trade Receivables of the Company are typically unsecured ,except to the extent of the security deposits received from the customers or financial guarantees provided by the market organizers in the business. Credit Risk is managed through credit approvals and periodic monitoring of the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company performs ongoing credit evaluations of its customers' financial condition and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The Company has no concentration of Credit Risk as the customer base is geographically distributed in India.
Expected credit loss for trade receivable:
The allowance for impairment of Trade receivables is created to the extent and as and when required, based upon the expected collectability of accounts receivables. On account of adoption of Ind AS 109, the Company uses lifetime Expected Credit Loss (ECL) model for assessing the impariment loss. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for trade receivables. Loss rates are based on actual credit loss experience and past trends. The provision matrix takes into account external and internal credit risk factors and historical experience / current facts available in relation to defaults and delays in collection thereof
Other Financial Assets
The company maintains its Cash and Cash equivalents and Bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.
Expected credit loss on financial assets other than trade receivable:
With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be high quality assets with negligible credit risk. The management believes that the parties from whom these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for expected credit loss has been provided on such financial assets. Break up of financial assets other than trade receivables have been disclosed on balance sheet
The Company's maximum exposure to credit risk as at 31st March, 2024, 2023, 2022, 2021, 2020, 2019 and 1st April, 2018 is the carrying value of each class of financial assets.
(c) Liquidity Risk
Liquidity Risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach in managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. Any short term surplus cash generated, over and above the amount required for working capital and other operational requirements is retained as Cash and Cash Equivalents (to the extent required).
(d) Collateral
The Company has pledged its Non-Current as well as Current Assets to a consortium of lenders as collateral towards borrowings by the Company. Refer Note No. 16 for the detailed terms and conditions of the collaterals pledged.
Note: 34 Other Regulatory Information
The disclosure on the following matters required under Section III (amendment) not being relevant or applicable in case of the Company for the year ended March 31, 2024, same are not covered:
(a) The company has not traded or invested in crypto currency or virtual currency during the financial period.
(b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transaction (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(c) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(d) The Company has not entered into any scheme of arrangement.
(e) No satisfaction of charges are pending to be filed with ROC
(f) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.
(g) The Company has not entered into any transaction with Company struck off under section 248 of the Companies Act, 2013.
(h) The Company has not taken any working capital loan from banks or fianancial institutions and hence there is no requirement for filling of any periodical return or information to any authorities.
- Event occurring after the balance sheet date
No adjusting or significant non- adjusting events have occurred between the reporting date and the date of authorisation.
- Previous year figures
Figures of previous year have been regrouped, rearranged and recast wherever consider necessary to make them compare with current year's figure.
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