s) Provisions and Contingent Liabilities
A provision is recognised if as a result of a past event, the Company has a present obligation (legal or constructive) that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date. If the effect of time value of money is material, provisions are discounted using a current pre tax rate that reflects, when appropriate the risks specific to the liability.
A Contingent Liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent Liabilities do not warrant provisions but are disclosed unless the possibility of outflow of resources is remote. Contingent Assets are neither recognised nor disclosed in the Standalone Ind AS Financial Statements. However, when the realisation of income is virtually certain then the related asset is not a Contingent Asset and its recognition is appropriate.
t) Research and Development
Research costs are expensed as incurred. Product development costs are capitalised when technical and commercial feasibility of the products is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the product and the cost can be measured reliably. In other cases, such development costs are taken to the Statement of Profit and Loss. The costs which can be capitalised include the cost of material, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use. .
u) Rounding of Amounts
All amounts disclosed in the Standalone Financial Statements and accompanying notes have been rounded off to the nearest lakhs as per the requirement
of Schedule III of the Companies Act, 2013 unless otherwise stated.
v) Dividends
Dividend proposed is recognised in the period in which interim dividends are approved by the Board of Directors or in respect of final dividend when approved by shareholders.
w) Borrowing Cost
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
x) Government Grants
Government grants are recognised when there is a reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises as expense the related cost for which the grants are intended to compensate. Government grants related to assets,including non-monetary grants at fair value,shall be presented in the Balance Sheet by setting up the as deferred income.
y) Royalty
The Company account for royalty in accordance with the relevant licence/technical collaboration agreements.
z) Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new Standards or amendments to the existing Standards under Companies (Indian Accounting Standards) Rules, 2023, as issued from time to time. For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Description of Reserves
a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.
b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.
c) Securities Premium: Securities Premium represents excess amount received by the Company over the face value of its shares to be utilised for specific purposes only as per Section 52 of the Companies Act, 2013.
d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited with the Company.
e) General Reserve: General Reserve is free reserve of the Company which is kept aside out of Company's profits to meet future requirements as and when they arise. The Company had transferred a portion of the Profit After Tax to General Reserve pursuant to earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013.
f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income tax on dividend.
g) Other Reserves - FVTOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit obligation and fair valuation of Investments.
33. Disclosure as per Ind AS 19 'Employee Benefits'
a) Defined Contribution Plans:
The Company pays fixed contribution to funds below at predetermined rates to appropriate authorities:
i) Provident Fund
An amount of '1119 lakhs (previous year '1036 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.
ii) Superannuation Fund
An amount of '29 lakhs (previous year '24 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.
iii) Employee State Insurance/ Labour Fund
An amount of '48 lakhs (previous year '34 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.
Notes
i. The Company's Operating Segments are established on the basis of the information that is evaluated by the "Chief Operating Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance. The segments have been identified taking into account nature of products and services,production processes,risks and returns and the internal business reporting systems.
ii. For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the Company reports its primary segment information.
iii. All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, trade receivables, advances and operating cash and bank balances. Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Investments, tax related assets, loans and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as unallocable.
iv. Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics department. These transfers are eliminated on consolidation.
v. Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income on inter corporate deposit and interest expense.
vi. There are no Non-Current Assets located outside India.
vii. Revenue derived from a single external customer amounting to more than 10% of the entity's revenue attributable to Automotive Glass Segment ' 57189 Lakhs (Previous Year ' 49186 Lakhs).
39. Financial Risk Management
The Company's activities expose it to foreign currency risk, liquidity risk, interest rate risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency/commodity swaps are entered into by the Company to hedge certain foreign currency and commodity exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
The Company is exposed to the following risks from its use of financial instruments:
Credit Risk
Liquidity Risk
Foreign Currency Risk
Interest Rate Risk
a) Credit Risk
Credit risk arises from the possibility that the counter parties may not be able to settle their obligations. To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.
i) Exposure to Credit Risk
The carrying amount of Financial Assets represent the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
b) Liquidity Risk
Liquidity risk refers to the risk to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.
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.
d) Interest Rate Risk
The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (e.g. fixed, floating, rupee,foreign currency,etc.).
Fair Value Sensitivity Analysis for Fixed-Rate Instruments
The Company's fixed rate instruments 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.
Cash Flow Sensitivity Analysis for Variable-Rate Instruments
A change of 50 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for the previous year.
42. Capital Management
The Company's objectives when managing capital are to:
safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other Stakeholders and maintain an appropriate capital structure of debt and equity.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as result from operating activities divided by total Shareholders' equity. The Board of Directors also monitors the level of dividends to Equity Shareholders.
Under the terms of major borrowing facilities, the Company is required to comply with the financial covenants as may be prescribed by the lenders. There have been no breaches in the financial covenants of any interest bearing borrowings.
The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.
52. The Company has received an intimation from HDFC Bank on 31st March, 2024 regarding receipt/transfer of an amount of '9 Lakhs from RBI Deaf Account pertaining to Financial Year 2003-04 in the nature of Fractional entitlement arising from merger of erstwhile Float Glass India Limited with the Company pursuant to approved scheme of Amalgamation. Upon receipt of the information, the Company deposited the said amount with the Investor Education and Protection Fund and filed the necessary ROC forms before the approval of Financial Statements of the Company.
53. The quarterly returns/ statements of current assets filed by the Company with Banks/ Financial Institutions in respect of borrowings from Banks/Financial Institutions on the basis of security of current assets are generally in agreement with the books of accounts.
54. The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.
55. The Company does not have any transaction with Companies struck off under Section 248 of Companies Act, 2013/ Section 560 of Companies Act, 1956.
56. There are 5 charges yet to be satisfied with the Registrar of Companies beyond the statutory period as on the date of approval of Financial Statements.
57. The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with Companies (Restriction on number of Layers) Rules, 2017.
58. No Scheme of Arrangements has been approved by the competent authority in terms of Section 230 to 237 of Companies Act, 2013.
59. The Company has purchased Equity Shares of AIS Adhesives Limited and AIS Distribution Services Limited from its other shareholder resulting in increase in its shareholding to the extent that both these Associate Companies have become Subsidiaries w.e.f. 1st February, 2024. The above 2 companies along with 2 other subsidiaries, GX Sales & Services Limited and AIS Glass Solutions Limited have filed a Composite Scheme of Arrangement before NCLT for their amalgamation with the surviving entity, AIS Glass Solutions Limited. The filing also includes a proposal for subsequent Capital Reduction in the Transferee Company. The Composite Scheme of Arrangement, upon its approval by NCLT will have a positive impact on the financial parameters and operational performance of the merged entity including its functioning thereof.
60. The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with understanding (whether recorded in writing or otherwise) that the intermediary shall
i. Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii. Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.
61. 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
i. Directly or indirectly lend or invest in other persons or entities identified in any matter whatsoever by or on behalf of Funding Party (Ultimate Beneficiaries) or
ii. Provide any guarantee or security or the like on behalf of Ultimate Beneficiaries.
62. The Company does not have any transaction 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.
63. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
64. Amount in the Financial Statements are presented in ' lakhs except for per share data and as other-wise stated. Previous years figures have been regrouped/rearranged wherever considered necessary.
As per our report of even date For and on behalf of the Board
For V S S A & Associates Sanjay Labroo Masao Fukami
Chartered Accountants Chairman and Managing Director Deputy Managing Director
(Firm Registration No. 012421N) DIN : 00009629 DIN : 09811031
Samir Vaid
Partner
M. No.: 091309 Shailesh Agarwal Gopal Ganatra
Executive Director and Executive Director
Place: New Delhi Place: Gurugram Chief Financial Officer General Counsel & Company Secretary
Dated: 15th May, 2024 Dated: 15th May, 2024 ICAI M. No. 091255 ICSI M. No. F7090
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