1. Building Freehold include ' 1,452.55 Lakhs (Previous Year - ' 1,448.10 Lakhs), aggregate cost of Building on Leasehold Land situated at various locations.
2. The company imported plant & machineries under concessional rate or zero customs duty under Export Promotion Capital Goods Scheme (EPCG Scheme). Under the scheme, the company is obliged to export goods equivalent to 6 times of duty saved on capital goods. The company is required to meet this export obligation over a period of 6 years from the date of issue of authorisations. The company has fulfilled the entire export obligation and submitted the application for EODC for USD 5.46 lacs upto 31.03.24 with the appropritae authority but final approval is yet to receive.
C. Rights, Preference and Restriction attached to Shares
The company has only one class of equity shares having par value of Rs.10/- each and is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of the equity will be entitled to receive the remaining assets of the company after distribution of all preferential amounts.
a) Secured Loans are covered by:From Bank *
Secured by way of hypothecation first charge on Raw Material, Stock-in-process, Finished Goods, spares, stores, consumables, receivables and other current assets of the Company both present and future on pari passu basis with other Banker.
Terms and conditions of the above financial liabilities:
0 A sum of ' 147.16 Lakhs payable to Micro, and Small Enterprises as at 31st March, 2024. There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days during the year and also as at 31st March, 2024. This information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.
32. Additional Notes to Defined Benefit Plans/Long Term Compensated Absences Defined Contribution Plans -
The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Provident Fund, Pension and Gratuity Benefits are funded and Leave Encashment Benefits are unfunded in nature. The Defined Benefit Pension Plans are based on employees' pensionable remuneration and length of service. Under the Provident Fund, Gratuity and Leave Encashment Schemes, employees are entitled to receive lump sum benefits Risk Management
The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest rate risk and salary cost inflation risk
Investment Risks: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated corporate bonds - the valuation of which is inversely proportional to the interest rate movements..
Interest Rate Risk: The present value of Defined Benefit Plans liability is determined using the discount rate based on the market yields prevailing at the end of reporting period on Government bonds. A decrease in yields will increase the fund liabilities and vice-versa.
Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities These Plans have a relatively balanced mix of investments in order to manage the above risks. The investment strategy is designed based on the interest rate scenario, liquidity needs of the Plans and pattern of investment as prescribed under various statutes.
The Trustees regularly monitor the funding and investments of these Plans. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure adequacy of internal controls. Pension obligation of the employees is secured by purchasing annuities thereby de-risking the Plans from future payment obligation.
33. Segment Reporting
The company's operating business are organized and managed separately according to the nature of products. The four identified reportable segments are (i) Industrial Hand gloves, (ii) Garments (iii) Power generation and (iv) Other & traded items segment. The secondary segment is the geographical segment based on the I ocation of manufacturing unit.
The Chief Operating Decision Maker (CODM) monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.Segment performance is evaluated based on profit or loss and is measured consistently.
35. Additional Disclosure
According Ministry of Corporate Affairs (MCA) had introduced changes in Schedule III to the Companies Act, 2013 vide its notification G.S.R. 207(E) dated 24th March, 2021, the following disclosures are given.
a. Revaluation of Property, Plant and Equipment and intangible assets.
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
b. Loans or Advances granted to Promoters, Directors, KMPs and Related Parties
During the period the Company has not granted any Loans or Advances to Promoters, Directors, KMPs and Related Parties.
c. Wilful Defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
d. Transaction with struck off companies
The Company does not have any material transaction with struck off Companies.
e. Pending filing of charges
The Company does not have any pending filing of charges. f Compliance with Approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous financial years.
g Details of Crypto Currency or Virtual Currency
The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Reason for Variance
Debt service coverage ratio has been improved, since the Company does not have any long term debts repayment obligation during current financial year. Further Debt service coverage ratio has been calculated by considering the interest paid by the Company upon the working capital loan(i.e. CC, EPC, BP).
i Compliance with number of layers of investments
The Company has complied with number of layers of investments. j Details of Benami Property held
The Company does not hold any Benami Property and there were no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 and the Rules made there under, hence no disclosure is required to be given . k Utilization of Borrowed Funds and Share Premium
(i) The Company has not advanced or loaned or 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 the understanding (whether recorded in writing or otherwise) that the intermediary shall; Directly or indirectly lent or invest in other person(s) or entity (ies) identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) Or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Parties) with the understanding (whether recorded in writing or otherwise ) that the company shall. Directly or indirectly lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) Or Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. Hence no disclosure required.
l Undisclosed Income
The Company does not have any undisclosed Income which was not recorded in the books of accounts and which 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. Also the Company does not have previously unrecorded income and related assets which were required to be properly recorded in the books of accounts during the year m Borrowings secured against current assets
In respect of borrowings from banks or financial institutions on the basis of security of current assets, the quarterly returns or statements of current assets filed by the Company with them are in agreement with the books of accounts. n Details of title deeds of Immovable Properties not held in the name of the Company
The title deeds of immovable property ( other than properties where the company is the lessee and the lease agreement are duly executed in favour of lease) are held in the name of the Company.
36. Financial Instruments and Related Disclosures 1. Capital Management
The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern.
C. Financial risk management objectives
The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company's risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.
Liquidity Risk
The Company's Current assets aggregate to ' 11,397.51 Lakhs (2023 - ' 9,267.58 Lakhs ) including Cash and cash equivalents and Other bank balances of ' 79.96 Lakhs (2023 - ' 78.82 Lakhs) against an aggregate Current liability of ' 7,429.88 Lakhs (2023 - ' 5,955.28 Lakhs); Non-current liabilities due between one year to three years amounting to ' 245.78 Lakhs (2023 - ' 251.45 Lakhs) and Non-current liability due after three years amounting to ' 3.73 Lakhs (2023 - ' 9.90 Lakhs) on the reporting date.
Further, while the Company's total equity stands at ' 7,880.53 Lakhs (2023 - ' 7,039.43 Lakhs), it has borrowings of ' 15.84 Lakhs (2023 - ' 23.87 Lakhs). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.
Market Risks
The Company is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management is supported by a Senior officer that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist personnel's that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks.
Foreign currency risk
The Company undertakes transactions denominated in foreign currency (mainly US Dollar & Euro ) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, including the Company's net investments in foreign operations (with a functional currency other than Indian Rupee), are also subject to reinstatement risks.
The carrying amount of foreign currency denominated financial assets and liabilities including derivative contracts, are as follows :
D. Fair value measurement Fair value hierarchy
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.
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 cost has been considered as the best estimate of fair value.
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.
37. The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.38. Approval of Financial Statements
The Financial Statements were approved for issue by the Board of Directors on 22nd May, 2024.
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