* Term Loan - loan against property/ Lease rental discounting sanctioned by HDFC Bank ltd is secured against the mortgage piece and parcel of the property bearing unit no. SF 06, Muncipal Katha no. 140/17/338/5, with a super built up area of 68,480 sq.ft & proportionate share in the common area along with 107 car parking spaces in the building known as Umiya Vellociti & 10,033.29 sq.ft of undivided share in the property bearing Muncipal no. 104/17/338, erstwhile survey no 54/2, 54/1. 50/6 & part of survey no.54/3, 53/2 and 53/1, situated at Hebbal village kasaba hobli, Bengaluru.
The rate of interest is 8.50% to 8.65% Per Annum (Previous year rate of interest is 8.50% Per Annum)
# Term Loan - loan against property/ Lease rental discounting sanctioned by Bajaj housing finance ltd is secured against the mortgage of land and building at Katha no. 140/17/338, formed in survey no 54/2, 54/1. 50/6 & 54/8 and part of survey no.54/ 3, 53/2 and 53/1, measuring 32,595 sq.ft of the salable super built up area constituting the portion of ground floor of the complex - umiya velociti.
The rate of interest is 7.50% to 10.00% Per Annum (Previous year 7.50% to 10.00% Per Annum)
'*** The company has availed a working capital term loan of Rs. 3 cr to meet out liquidity mismatch in lieu of Covid - 19 Crisis under " BOB Guaranteed Emergency credit line" Scheme(BGECLS) from Bank of Baroda against hypothication of land and building.
The rate of interest is 7.00% to 11.00% Per Annum (Previous year 7.00% to 11.00% Per Annum).
**The company has availed assistance under raw material assistance scheme from NSIC against the security of Bank Guarantee.
The rate of interest is 8.80% to 10.55% Per Annum (Previous year 8.80% to 10.55% Per Annum)
*** Term Loan - loan against property/ Lease rental discounting sanctioned by HDFC Bank ltd is secured against the mortgage piece and parcel of the property bearing unit no. SF 06, Muncipal Katha no. 140/17/338/5, with a super built up area of 68,480 sq.ft & proportionate share in the common area along with 107 car parking spaces in the building known as Umiya Vellociti & 10,033.29 sq.ft of undivided share in the property bearing Muncipal no. 104/17/338, erstwhile survey no 54/2, 54/1. 50/6 & part of survey no.54/3, 53/2 and 53/1, situated at Hebbal village kasaba hobli, Bengaluru.
The rate of interest is 8.50% to 8.65% Per Annum (Previous year rate of interest is 8.50% Per Annum)
*The company has received an order from The Sole Arbitrator and the order dated 3rd November 2023 states that the Company to required to make payment of Rs 28,56,178/- towards claim and Rs. 3,65,000/- towards Legal cost to KELTRON along with interest @12.75% per annum computed on monthly compounding basis from the date of the order till the date of payment.
**The company has received an order from CESTAT towards Excise Duty for the period January 2008 to March 2010. As per the CESTAT order Rs.5,88,26,035/- is payable towards
excise duty on manufacturing. Against the same input credit of Rs. 4,66,90,550/- paid on imported modems has been admitted by CESTAT. The difference of Rs. 1,21,35,485/- has to be
paid by the company and Against which Rs. 1,16,79,843/- has been paid by MRO-Tek under PLA in earlier years and Company is preferring an appeal against this order
Note 37
Segment Reporting
Disclosures pursuant to IND AS 108 prescribed under the Act are Primary Segment
The Company’s primary business segments are Products, Real Estate Development, EMS (Electronic Contract Manufacturing), Solutions (IT & Drone segment has been merged with Solutions segment).
Secondary Segment
The Company’s secondary segment is determined based on location of customers / export destinations (Geographical Segment).
The segment revenue in the geographical segments for disclosure are as follows:
Revenue within India includes sales to customers located within India and earnings in India.
Note 38
Financial Risk Management Objective And Policies
The Company’s principal financial liabilities comprise Borrowings and Trade payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include Investments, Trade Receivables, Loans, Cash and Cash Equivalents that derive directly from its operations.
The Company is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Interest rate risk
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.
This note presents information about the risks associated with its financial instruments, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital.
The company's risk management policies are established to identify and analyse the risk faced by the company, to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and group's activities.
The company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employee understand their roles and obligations.
A. 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 company's receivables from customers and loans.
The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company’s exposure to credit risk primarily relates to investments, trade receivable and cash and cash equivalents. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assess the credit quality of the counterparties taking into account their financial condition, past experience and other factors.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies.
The companies Trade and other receivables are actively monitored to review credit worthiness of the customers to whom credit terms are granted and also avoid significant concentrations of credit risks
The company continuously monitors defaults of customers and other counterparties , identified either individually or by the group and incorporates this information into its credit risk controls.
Trade receivables consists of large number of customers spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and where appropriate, credit guarantee insurance cover is purchased.
There is no receivable from single external customer outstanding more than 10% of companies total revenue for the year ended 31st March 2024 & for previous year ended 31 March, 2023.
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always 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.
The Company has an appropriate liquidity Risk management framework for the management of short, medium and long term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate cash reserves, banking facilities, and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Company's treasury department is responsible for managing the short term and long term liquidity requirements of the company, short term liquidity situation is reviewed daily by treasury. Long Term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.
Typically the company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
Maturities of financial liabilities
The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March, 2024 & 31 March, 2023.
Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the company's income or the value of its holdings of the financial instruments. The objective of market risk management is to manage and control market risk exposures with acceptable parameters, while optimising the return.
The Company is exposed to interest rate risk arises mainly from debt. The Company is exposed to interest rate risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates.
The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency other than the respective entity's functional currency hence exposures to exchange rate fluctuations arise The risk is that functional currency value of cash flows will vary as a result of movements in exchange rates.
ii) Foreign currency sensitivity analysis
The Company is mainly exposed to currency fluctuation of USD and EUR.
The following table details company's sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balance below would be negative
Note 39
Capital Management
The Company manages its capital to ensure that company will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Capital structure of the company consists of net debt borrowings (Note 18 & Note 21) offset by cash and bank balances and total equity of the company.
The Company is not exposed to any externally imposed capital requirements
ii) The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956
iii) The Company does not have any Benami property, where any proceeding has been initiated or pending against for any Benami property.
iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vii) The Company has not advanced or loaned or invested fund to any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
viii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).
ix) The Company does not have 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
x) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note 46
Code on Social Security, 2020
The Code on Social Security, 2020 which received the President's assent on September, 2020 subsumes nine law relating to Social Security, retirement and employee benefits, including the Provident Fund and Gratuity.
The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognised post notification of the relevant provisions
Note 47
Amount has been rounded off to nearest Lakhs & decimal thereof.
Corporate Social Responsibility (CSR) under the Companies Act, 2013, emphasises the role of business in contributing to Social welfare. By engaging in meaning CSR activities, Companies can make a positive impact on society while ensuring sustainable development and responsible business practices and as explained above, Board of Directors are pleased to inform that it has fulfiled its CSR obligation for the financial year 2022-23. The Company has spent the required 2% of its average net profits of the preceding 3 years into various CSR activities in alignment with the provisions of the Companies Act, 2013.
CSR provisions are not applicable to the Company for the financial year 2023-2024.
Note 49
Previous year’s figures have been regrouped / reclassified / restated wherever necessary to correspond with the current year's classification/disclosure.
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