(b) T erm/right attached to equity shares:
The Company has only one class of equity share having a par value of INR 2 per share. Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the Company, the holder of the equity shares 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.
The Cash Credit limit is under multiple banking arrangement between ICICI and Canara bank .These facilities are secured by first charge by way of hypothecation of Trade receivables, Inventories, Other current assets and Plant and Machinery of the Company including land & Building except those finance by other Banks/FIs/NBFCs both present and future . This Limit is also personally guaranted by director Namely Mr. Harpreet Singh Nibber and Mr. Raminder Singh Nibber (demised on 12.03.2024).The rate of interest for each drawal of the Facility will be stipulated by ICICI Bank at the time of disbursement of each drawal, which shall be sum of I-MCLR-1Y Spread per annum, subject to minimum of I-MCLR-1Y, plus applicable statutory levy, if any.As on date the I-MCLR-1Y is 9.10% and Spread is 0.65% . The rate of interest stipulated by Canara Bank will be RLLR i.e 9.25% .
36 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the net profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the net profit attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential items into Equity shares.
38 Disclosure pursuant to IND AS 19 on Employee benefit
The Company operates post retirement defined benefit plan for retirement gratuity, which is funded. The Company through the gratuity trust has taken Company gratuity policy of Life Insurance Corporation of India Gratuity Scheme.
Actuarial Valuation Method
The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19 to determine the Present Value of Defined Benefit Obligations and the related Current Service Cost and, where applicable, Past Service Cost. It should be noted that valuations do not affect the ultimate cost of the plan, only the timing of when the benefit costs are recognised.
C) Fair value Measurement (i) Fair Value hierarchy
Level 1- It includes financial instruments measured using quoted prices in active markets for identical assets or liabilities.
Level 2- Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs other than Level 1 inputs; and Level 3- If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
There are no assets and liabilities which have been carried at fair value through the profit and loss account.
Investment in Quoted shares ,mutual fund and defined benefit obligation i.e Gratuity. which have been carried at fair value through the other comprehenssive income .
The management assessed that cash and cash equivalents, trade receivables, trade payables, and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
40 Capital Management
The company manages its capital to ensure that entities in the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the capital deployment.
The company determines the amount of capital required on the basis of annual operating plans and long-term plans and other strategic investment plans. The funding requirement are met through equity and long-term/ short-term borrowings.
The company monitors the capital structure on the basis of total debt to equity ratio and maturity of the overall debt portfolio of the Company.
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. No changes were made in the objectives, policies or processes for managing capital during the period ended March 31, 2025.
42 Scheme of Arrangement and Demerger
During the last financial year 2023-24, the Company implemented a Scheme of Arrangement between Pritika Industries Ltd. (the Demerged Company) and Pritika Auto Industries Ltd. (the Resulting Company) being demerger of business undertaking of Pritika Industries Limited and vesting with Pritika Auto Industries Limited. This scheme was approved by National Company Law Tribunal (NCLT), Bench Chandigarh, vide its order dated 4th December 2023, pursuant to Sections 230 to 232, read with other relevant provisions of The Companies Act, 2013. The annual financials for the year ending 31st March 2025 and 31st March 2024 include the financial figures of the demerged business undertaking of Pritika Industries Ltd. vest into Pritika Auto Industries Ltd. Pursuant to the Scheme of demerger between Pritika Auto Industries Limited and Pritika Industries Limited approved by NCLT Chandigarh bench. The Revenue from Operations for the year ending 31st March 2025 includes the sales on GST No. 03AAACP9500B1Z4 and GST No. 02AAACP9500B1Z6 related to Pritika Industries Limited .
43 The Adjudicating officer ( GST ) had rejected the claim of refund relating to the budgetary support of Rs. 153.54 lakhs. The Company had filed writ pettition before the Hon'ble High Court of Himachal Pradesh at Shimla against the said rejection order and Hon'ble High Court remanded back the case to the Adjudicating Officer ( GST) to decide the case afresh . Adjudicating Officer passed an order and rejected the refund on 03.02.2025.The Company has filed fresh writ pettition before the Hon'ble High Court of Himachal Pradesh at Shimla against the order dated 03.02.2025 which has been admitted by the Hon'ble High Court of Himachal Pradesh at Shimla. The management is hopeful that the writ will be decided in favour of the Company . The amount of refund is shown as receivable in the financials Statement.
Market risk is the risk of loss related to adverse changes in market prices, including interest rates and foreign exchange rates. In the normal course of business, we are exposed to certain market risks including foreign exchange rate risk and interest risk.
(i) Liquidity risk
The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to maintain sufficient cash and deposits to meet the obligations as and when fall due.
(ii) Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings assigned by credit rating agencies. Investments primarily include investment in shares . The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. Customer credit risk is managed by the Entities's established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.
The impairment analysis is performed on client to client basis at each reporting date for major customers. The company has not considered an allowance for doubtful debts in case of trade receivables that are past due but there has not been a significant change in the credit quality and the amounts are still considered recoverable.
Write off Policy
The financial assets are written off, in case there is no reasonable expectation of recovering from the financial asset.
(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 changes 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.
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, which are included in interest bearing loans and borrowings in these financial statements. The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
At the reporting date the interest rate profile of the Company's interest bearing financial instrument is at its fair value:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium ) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or ** otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Belieficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
No funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the
54 understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
55 Quarterly returns or statements of current assets filed by the Company with the banks or financial institutions are in agreement with the books of accounts.
The Company do not have any Benarni property, where any proceeding has been initiated or pending against the Company for holding any Benarni property.
57 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961
59 The Company do not have any transactions with companies struck off during the year .
60 Previous year figures has been regrouped/rearranged wherever considered necessary.
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