* During the year, the Company has received sales tax incentive from State Government of Maharashtra aggregating to ?49.52 lakhs under “Package Scheme of Incentives 2008 & 2013”. Further, the Company has recognised an amount of ?33.02 lakhs (P.Y ?51.78 lakhs) as incentive receivable in accordance with the terms of scheme. The total receivable amount as at 31 March, 2024 stands at ?49.54 lakhs (31 March, 2023 ?66.04 lakhs).
* During the year, the State Government of Andhra Pradesh has sanctioned a total incentive of ?207.32 lakhs (P.Y ?297.90 lakhs) towards sales tax under “Industrial Development Policy 2015-20”. The total receivable amount as at 31 March, 2024 stands at ?594.97 lakhs (31 March, 2023 ?387.65 lakhs).
** During the year, the State Government of Andhra Pradesh has sanctioned a total incentive of ?12.84 lakhs (P.Y ?20.05 lakhs) towards power cost under “Industrial Development Policy 2015-20”. The Total receivable amount as at 31 March, 2024 stands at ?63.75 lakhs (31 March, 2023 ?50.91 lakhs).
79,95,776 equity shares out of the issued, subscribed and paid up share capital were allotted in the financial year 2008-09 pursuant to the Scheme of arrangement without payments being received in cash.
46,625 equity shares of ?10 each issued at a premium of ?52.95 per share on 6 July, 2011 by way of Employee Stock Option Scheme.
12.40.000 equity shares of ?10 each issued at a premium of ?30 per share on 7 September, 2011 by way of preferential offer.
9,125 equity shares of ?10 each issued at a premium of ?52.95 per share on 19 December, 2011 by way of Employee Stock Option Scheme.
19.25.000 equity shares of ?10 each issued at a premium of ?35.80 per share on 4 February, 2012 by way of preferential offer.
37.800 equity shares of ?10 each issued at a premium of ?52.95 per share on 5 July, 2012 by way of Employee Stock Option Scheme. 22,950 equity shares of ?10 each issued at a premium of ?52.95 per share on 28 June, 2013 by way of Employee Stock Option Scheme. 25,100 equity shares of ?10 each issued at a premium of ?52.95 per share on 13 June, 2014 by way of Employee Stock Option Scheme.
39.800 equity shares of ?10 each issued at a premium of ?52.95 per share on 25 July, 2014 by way of Employee Stock Option Scheme.
24,98,350 equity shares of ?10 each issued at a premium of ?210.17 per share on 3 February, 2015 by way of Qualified institutional placement.
5,000 equity shares of ?10 each issued at a premium of ?52.95 per share on 9 April, 2015 by way of Employee Stock Option Scheme.
Shareholders on 3 February, 2016 approved the share split of ?10 each, fully paid up into 2 (Two) equity shares of ?5 each fully paid up. The Board of Directors fixed the record date as 18 February, 2016. On 17 February, 2016 the Company has sub-divided the existing fully paid equity shares of 1,38,45,526 with face of ?10 each into 2,76,91,052 fully paid up shares with face value of ?5 each.
23,325 equity shares of ?5 each issued at a premium of ?254.85 per share on 18 October, 2019 by way of Employee Stock Option Scheme.
11,650 equity shares of ?5 each issued at a premium of ?254.85 per share on 27 October, 2019 by way of Employee Stock Option Scheme.
6,690 equity shares of ?5 each issued at a premium of ?254.85 per share on 13 August, 2020 by way of Employee Stock Option Scheme.
33,810 equity shares of ?5 each issued at a premium of ?254.85 per share on 3 October, 2020 by way of Employee Stock Option Scheme.
5,094 equity shares of ? 5 each are issued at a premium of ?179 per share on 15 March, 2021 upon conversion of share warrants to Equity shares.
6,060 equity shares of ? 5 each are issued at a premium of ?179 per share on 15 April, 2021 upon conversion of share warrants to Equity shares.
2,14,220 equity shares of ? 5 each are issued at a premium of ?179 per share on 15 June, 2021 upon conversion of share warrants to Equity shares.
75,209 equity shares of ? 5 each are issued at a premium of ?179 per share on 14 July, 2021 upon conversion of share warrants to Equity shares.
41,910 equity shares of ?5 each issued at a premium of ?254.85 per share on 28 July, 2021 by way of Employee Stock Option Scheme.
25,230 equity shares of ?5 each issued at a premium of ?254.85 per share on 28 July, 2021 by way of Employee Stock Option Scheme.
17,550 equity shares of ? 5 each are issued at a premium of ?179 per share on 16 August, 2021 upon conversion of share warrants to Equity shares.
32,404 equity shares of ? 5 each are issued at a premium of ?179 per share on 14 September, 2021 upon conversion of share warrants to Equity shares.
5,32,563 equity shares of ?5 each issued at a premium of ?175 per share on 9 November, 2021 upon conversion of partly paid up right equity shares to equity shares by way of Rights issue.
24,051 equity shares of ? 5 each are issued at a premium of ?179 per share on 15 November, 2021 upon conversion of share warrants to Equity shares.
11,100 equity shares of ?5 each issued at a premium of ?175 per share on 4 December, 2021 upon conversion of partly paid up right equity shares to equity shares by way of Rights issue.
14,00,000 equity shares of ?5 each issued at a premium of ?735 per share on 17 December, 2021 by way of Qualified institutional placement.
59,039 equity shares of ? 5 each are issued at a premium of ?179 per share on 22 December, 2021 upon conversion of share warrants to Equity shares.
23,955 equity shares of ?5 each issued at a premium of ?268.05 per share on 12 January, 2022 by way of Employee Stock Option Scheme.
13,613 equity shares of ?5 each issued at a premium of ?268.05 per share on 12 January, 2022 by way of Employee Stock Option Scheme.
21,250 equity shares of ? 5 each are issued at a premium of ?179 per share on 17 January, 2022 upon conversion of share warrants to Equity shares.
28,519 equity shares of ? 5 each are issued at a premium of ?179 per share on 15 February, 2022 upon conversion of share warrants to Equity shares.
9,54,827 equity shares of ? 5 each are issued at a premium of ?179 per share on 11 March, 2022 upon conversion of share warrants to Equity shares.
Forfeiture of 11,667 equity shares of ? 5 each issued at a premium of ? 175 per share on 4 December, 2021, partly paid up ? 1.25 per share.
10,56,894 equity shares of ? 5 each are issued at a premium of ?179 per share on 19 April, 2022 upon conversion of share warrants to Equity shares.
6,87,290 equity shares of ? 5 each are issued at a premium of ?179 per share on 16 May, 2022 upon conversion of share warrants to Equity shares.
1,23,334 equity shares of ? 5 each are issued at a premium of ?179 per share on 22 June, 2022 upon conversion of share warrants to Equity shares.
44,130 equity shares of ?5 each issued at a premium of ?268.05 per share on 09 February, 2023 by way of Employee Stock Option Scheme.
64,145 equity shares of ?5 each issued at a premium of ?268.05 per share on 20 February, 2024 by way of Employee Stock Option Scheme.
(d) MTPL Employee Stock Option Scheme
The Company has granted 2,02,000 Options to employees on 4 June, 2010 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at ?26 per option.
The Company has granted 95,100 Options to employees on 20 July, 2018 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at ?208 per option.
The Company has granted 54,900 Options to employees on 20 July, 2018 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at ?234 per option.
The Company has granted 95,900 and 54,100 Options to eligible employees aggregating to 1,50,000 options on 23 December, 2020 at ?245.75 and ?259.40 respectively under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.
Pursuant to the shareholders approval dated 3 Feb 2016, the Company’s Equity shares of ?10 each were split into Equity shares of ?5 each fully paid up and consequently the above options with face value of ?10 were converted to face value of ?5 each.
(e) Terms/Rights attached to equity shares
The Company has only one class of equity shares having a face value of ?5 each. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of other reserves
(i) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.
(ii) Capital reserve
Capital reserve arised on account of amalgamation, transfer of forfeited shares amount, state subsidy and others.
(iii) General reserve
General reserve is used for strengthening the financial position and meeting future contingencies and losses.
(iv) Share options outstanding account
The reserve represents the excess of the fair value of the options on the grant date over the exercise price which is accumulated by the Company in respect of all options that have been granted. The Company transfers the proportionate amounts, outstanding in this account, in relation to options exercised to securities premium account on the date of exercise of such options.
(v) Retained earnings
This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilised in accordance with the provisions of the Companies Act, 2013.
(vi) Equity Instruments through Other comprehensive income
This reserve represents the cumulative gains/loss (net) arising on fair valuation of Equity Instruments, net of amounts reclassified, if any, to retained earnings when those instruments are disposed off.
a) Secured loans
The following assets of the Company are given as security:
# First exclusive charge on Plant & Machineries and Equitable Mortgage on factory Land & Building at Plot No. 2A, in Sy.Nos. 25 lP, 255P, 256P, 261P, IC- PUDI, Pudi Village, Rambilli Mandal, Visakhapatnam District, Andhra Pradesh.
# First exclusive charge on Plant & Machineries at Unit 1 (new Block) at Annaram Vill, Near Air force academy, Medak Dist-502313, Telangana.
# First exclusive charge on Plant & Machineries and Equitable Mortgage on the factory Land & Buildings situated at Survey no.82/2A, Mahavashi Village, Khandala (Tal), Pune Satara District, Maharashtra State.
# First Exclusive Charge on Plant & Machineries and Equitable Mortgage on factory Land& Building at Survey No. 160/A, 161/1,161/5, Bhimpore Village, Nani Daman, Daman District.
# First exclusive cfiarge on Plant and Machineries and Equitable Mortgage on the factory Land & Buildings situated at Plot no.94, KIADB- Adakanahally Industrial Area, Chikkaiahnachatra Hobli, Nanjangud Taluk, Mysuru Dist. Karnataka-571301
# First exclusive charges on Plant & Machineries and Equitable Mortgage on factory Land and Building located at G40/2, G41 & G42/1, at Sultanput Village, Ameenpur Mandal, Sangareddy Dist, Telangana.
# First exclusive charge on Plant & Machineries and Equitable Mortgage on factory Land and Building Plot 29, Industrial Estate, Refinery Road, HSIIDC, Panipat, Haryana.
# First exclusive charge on Plant & Machineries and Equitable Mortgage oft Leasehold right of Land and Building located Plot no c-11, SIPCOT, Industrial Park, Cheyyar, Phase II,.Cheyyar Dist, Tamilnadu.
# Personal guarantees of J. Lakshmana Rao, A. Subramanyam and P. Venkateswara Rao directors of the Company.
# In case of vehicle loans obtained from banks and financial institutions, vehicles are offered as security.
b) Unsecured loans
During the year, the Govt. of Karnataka has sanctioned an interest-free SGST loan of ?933.81 lakhs. The loan is repayable in a single installment with a moratorium of 11 years from the date of disbursement. The total SGST loan amount as at 31 March, 2024 stands at ?933.81 lakhs.
The SGST deferment loan granted under State Investment Promotion Scheme is presented at fair value and difference between the actual loan disbursed and it’s fairvalue is recognised as deferred government grant under Note no.16 and Note 18.
Working capital facilities from the banks are secured by hypothecation by way of first charge on the following assets
of the Company:
i) First Pari passu charge to the above banks by way of hypothecation of the borrower’s entire current assets which inter-alia include stocks of raw material, work in process, finished goods, consumables, stores & spares and such other movables including book debts, outstanding monies, receivables both present and future of such form satisfactory to the bank.
ii) First Pari passu charge to the above banks by way of hypothecation of the borrower’s movable properties of the Company (Except those specifically charged to term loan lenders).
iii) First Pari passu charge to the above banks by way of equitable mortgage on the following Immovable properties of the Company:-
I. First Charge by way of equitable mortgage of land measuring 6.5125 acres and building in Sy.No 54,55/A,70, 71&72 of Annaram Village, Near Air Force Academy, Gummadidala Mandal, Sanga Reddy District, Telangana belonging to the Company.
II. First Charge by way of equitable mortgage of land measuring 6413 Sq. Yards and building in Sy.No. 164 part, Dammarapochampally Village, Gandimaisamma Dundigal Manda, Medchal District, Telangana belonging to the Company.
III. First charge by way of equitable mortgage of land measuring 1066.63 Sq. Yards and building in Plot No. D-177 phase III, IDA, Jeedimetla, Qutballapur Mandal, Medchal District. Telangana belonging to the Company.
IV. First charge by way of equitable mortgage of ground floor, Cellar area of building bearing Municipal No. 8-2-293/82/A/700&700/1 on Plot No. 700 forming part of S.Y. No. 120(New) of Shaikpet Village and S.Y. No 102/1 of Hakim pet Village admeasuring 3653 SFT of the office space presently occupied by the vendee 50% or 930 SFT of reception area of 1860 SFT all in relevance to the ground Floor 400 Sq.Yards out of 1955 Sq.Yards situated within the approved layout of the Jubilee Hills Co-operative House Building Ltd at Road No. 36 Jubilee hills, belonging to the Company.
V. First charge by way of equitable mortgage of land and building in Shed No. D-17 & D-18, phase III, IDA, Jeedimetla, Qutballapur Mandal, Medchal District. Telangana belonging to the Company.
VI. Personal guarantees of J. Lakshmana Rao, A. Subramanyam, and P. Venkateswara Rao, directors of the Company.
The incremental borrowing rate used for the measurement of lease liability is 7.75% which is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
The lessee has elected not to apply the requirements of Para 22-49 of Ind AS 116, Leases, classifying the same as short term leases as per the Para 6 of Ind AS 116. Rental expense recorded for short term leases is ?193.68 lakhs for the year ended 31 March, 2024.
20. Employee benefits
(i) Leave obligations
The leave obligation covers the Company’s liability for earned leave which is unfunded.
(ii) Defined contribution plan
The Company has defined contribution plan namely Provident fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plan is as follows:
(iii) Post- employment obligations a) Gratuity
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates post retirement gratuity plan with LIC of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Fair value of plan assets --- 100% with LIC of India
Expected contributions to post- employment benefit plans of gratuity for the year ending 31 March, 2025 are ?126.75 lakhs.
The above sensitivity analysis is based on a change in each assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
v) Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Interest rate risk
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary inflation risk
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.
Ind AS 115 - Revenue from contracts with customers
(A) The Company is primarily in the business of manufacture and sales of packaging containers. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch or delivery. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established, the Company does not give significant credit period resulting in no significant financing component.
34. Segment Information
a) The company’s Chairman & Managing Director and Chief Financial Officer examine the Company’s performance from a product prospective and have identified one operating segment viz Packaging Containers. Hence segment reporting is not given.
b) Information about products:
Revenue from external customers - Sale of packaging containers ?69557.95 lakhs (P.Y ?72583.26 lakhs).
The Company has made external sales to the following customers meeting the criteria of 10% or more of the entity revenue:
Customer 1 - ?21823.48 lakhs (P.Y. ?27850.55 lakhs).
36. Financial instruments and risk management
Fair values
a) The fair value of 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.
b) The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instruments are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.
There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.
The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.
37. Financial risk management
The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.
(A) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at 31 March, 2024 and 31 March, 2023.
The analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilties .
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March, 2024 and 31 March, 2023.
(i) Foreign currency exchange rate risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables and derivative assets/liabilities. The risks primarily relate to fluctuations in US Dollar, AUD, EURO, JPY and AED against the functional currencies of the Company. The Company’s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar, AUD, EURO, JPY and AED exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.
The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US Dollar, AUD, EURO, JPY and AED, where the functional currency of the entity is a currency other than US Dollar, AUD, EURO, JPY and AED.
(iii) 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 change in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.
As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.
The assumed increase/decrease in interest rate for sensitivity analysis is based on the currently observable market environment.
(B) Credit Risk
Financial assets of the Company include trade receivables, employee advances, security deposits held with government authorities and bank deposits which represents Company’s maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with government and banks, the credit risk is insignificant since the loans & advances are given to employees only and deposits are held with government bodies and reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.
(iii) Significant estimates and judgements Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company’s treasury maintains flexibility in funding by maintaining availability under deposits in banks.
38. Capital management
A. Capital management and Gearing Ratio
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2024 and 31 March, 2023.
Reasons for variance above 25%:
Debt-Equity ratio: Due to new loan facilities availed by the company.
Return on equity ratio: Due to decrease in turnover and profit of the company.
Return on investment: Due to increase in dividend income (interim & final dividend aggregating to '3.40 per share) in the current year compared to the previous year in which only interim dividend at '0.30 per share was received.
b. The Company has borrowings from banks on the basis of security of current assets. The quarterly statements of current assets filed by the Company with banks are in agreement with the books of account.
40. Code on Social Security: The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
41. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
42. The company has an accounting software for maintaining its books of account having the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, the audit trail is not disabled. However, the feature of recording audit trail (edit log) facility at database level is not enabled.
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