1.22 Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from a past event, with the resolution of the contingency dependent on
uncertain future events, or a present obligation where no outflow is probable. Major contingent liabilities are disclosed in the
financial statements unless the possibility of an outflow of economic resources is remote. Contingent assets are not recognized
in the financial statements but disclosed, where an inflow of economic benefit is probable.
1.23 Earnings Per Share
Earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.
**Though Considered doubtful no provision has been made, Actual receivable is considered as carrying value.
Other Information
i) The Company has common assets for producing goods for domestic market and overseas market.
ii) Sales of the Company is evently distributed, disclosure of major customer could not be made.
(g) Trade & other receivable / Payables
The management assessed that Trade Receivables, Cash and Cash equivalents, Bank Balances, Deposits, other non derivative
current financial, assets, Short term borrowings,Trade payables, Non derivative Current Financial Liabilities approximate their carring
amount largely due to the short-term maturities of these instruments.
NOTE 27 - CAPITAL MANAGEMENT
The Company manages its capital to ensure to continue as a going concern while maximizing the return to the equity holders through
optimization of the debt to equity balance. In order to achieve this, requirement of capital is reviewed periodically with reference to
operating and business plans that take into account capital expenditure and strategic investments.Apart from internal accrual, sourcing
of capitalised one through judicious combination of equity and borrowings, both short and long term.
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 and current investment. Adjusted
equity comprises all components of equity.
Bank accounts in respect of non fund based limits became NPA w.e.f. July 2018 on account of LC devolvement. No interest has been
provided since July 2018 amount is unascertained.
NOTE : 28 - FINANCIAL RISK MANAGEMENT
(a) Risk Management Framework
In the ordinary course of business, the Company is exposed to a different extent to a variety of financial risks: foreign currency
risk, interest rate risk, liquidity risk, price risk and credit risk. In order to minimize any adverse effects on the financial performance
of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts
are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as
trading or speculative instruments.
(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 and investments in financial
instruments.
The carrying amount of financial assets represents the maximum credit exposure. The Company monitor credit risk very closely
both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low.
Investments are reviewed for any fair valuation loss on periodically basis and necessary provision/fair valuation adjustments has
been made based on the valuation carried by the management to the extent available sources, the management does not expect
any investment counterparty to fail to meet its obligations.
(c) Liquidity Risk management
Ultimate responsibility for liquidity risk management rests with the board of directors. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity risk table
The following table provides details of the remaining contractual maturity of the Company's financial Liabilities. It has been drawn
up based on the undiscounted cash flows and the earliest date on which the Company can be required to pay.
(d) 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 prices mainly comprise three types of risk: currency rate risk, interest rate risk and other price risks. Foreign
currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31,2025 and
March 31,2024. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return. The Company uses derivatives like forward contracts to manage market risks on account
of foreign exchange.
Currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD
and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated
in a currency that is not the company's functional currency (Rupees). Currency risks related to the principal amounts of the
Company's foreign currency payables, have been partially hedged using forward contracts taken by the Company.
Sensitivity analysis
A Reasonably possible strengthening/(weakening) of the Indian Rupees against US dollars at March 31 would have affected the
measurement of financial instruments denominated in US dollars and affected equity and profit or loss by the amounts shown
below. This analysis assmumes that all other variables, in particular interest rate remain constant and ignores any impact of
forecast sales and purchases.
Interest Rate Risk
The Company's main interest rate risk arises from long-term borrowings with variable rates, which exposes the Company to cash
flow interest rate risk. During 31st March 2025 and 31st March 2024, the Company's borrowings at variable rate were denominated
in India Rupees. Currently the Company's borrowings are within acceptable risk levels, as determined by the management,
hence the Company has not taken any swaps to hedge the interest rate risk.
Exposure to Interest Rate Risk
The Company's Interest Rate Risk arises from borrowings obligations. Borrowings issued exposes as fair value interest rate risk.
The interest rate profile of the company's interest bearing financial instruments as reported to the management of the
Company is as follows.
Cash flow Sensitivity Analysis for Variable -Rate Instruments
A reasonably possible change of 50 basis points in interest rates at the reporting date would have increased (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
exchange rate, remain constant.
NOTE : 29 - Trade and Other Receivables
Credit risk is the risk that a customer may default or not meet its obligations to the company on a timely basis, leading to financial
losses to the Company. The management has an advance collection /credit policy criteria in place and the exposure to credit risk is
monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. Before
accepting a new customer, the Company uses an internal credit system to assess the potential customer's credit quality and defines
credit limits separately for each individual customer. The gross carrying amount of trade receivables as at 31st March 2025
aggregates Rs. 31,651.99 Lacs (P.Y. Rs. 31,651.99 Lacs) and trade receivables are due for more than six months from the
DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE COMPANIES
ACT, 2013.
1 Loans given as at balance sheet date C.Y. Rs. 40.68 Crores (P.Y. 40.68 Crores)
2 Investments made as at balance sheet date of C.Y. Rs. 4.10 Crores (P.Y. Rs. 4.10 crores)
3 Guarantees given and Securities provided by the Company in respect of loan C.Y. Rs.NIL (P.Y. Rs.NIL)
The company has stopped merchant trade activity since FY 19-20 till the balance sheet date, however management is hopeful to
explore some business activity to be carried out in coming year, hence accounts are prepared on going concern basis.
NOTE:36
Company has neither paid any interim dividend during the year nor any dividend has been proposed as at the close of the year.
NOTE:37
Certain debit / credit balances are subject to confirmations and reconciliations.
NOTE:38
i) Forensic Audit: Forensic Audit got conducted by the banks for FY 12-13 to 17-18 by an independent firm of Chartered Accountants
and who submitted their report in Dec-2018; The management not being satisfied with the contents got a transactional audit
conducted and then sought legal opinion, the contents of both the transactional audit report and opinion supported the management
view. Case was filed by the company with the Apex court and matter remains Sub-judice.
ii) SFIO AND CBI : SFIO office and CBI have instituted enquiries against the company on grounds of its promotors association with
the promotors of Frost International Limited, being group company and with similar bank defaults. Their requirements are being
serviced on a continous basis. No penalty/ Show Cause Notice has yet been initiated.
NOTE : 39 - Deferred Tax Assets/Liabilities
The Company has not recognised Defferred Tax Assets during the year in view of losses and ultimate uncertainty of future profits.
NOTE : 40
The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.
NOTE : 41 - APPROVAL OF FINANCIAL STATEMENTS
The Financial Statements were approved for issue by the Board of Directors on 30.05.2025
As per our report of even date
For Bhatter & Associates For Olympic Oil Industries Ltd.
Chartered Accountants For and on behalf of Board
FRN: 131411W
Gopal Bhatter Nipun Verma Arvind Srivastava
Partner Director Director
M.No. 411226 Din : 02923423 Din : 01957831
Place: Mumbai
Date: 30.05.2025
|