xvi) PROVISIONS
A Provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.
xvii) CONTINGENT LIABILITIES
A disclosure is made for a contingent liability when there is a:
a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain future events, not fully within the control of the Company;
b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
c) present obligation, where a reliable estimate cannot be made.
xviii) SEGMENT REPORTING Basis of Segment Reprting
The company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
Inter-segment Transfers
The Company generally accounts for inter-segment sales and transfers as if the sales or transfers were to third parties at current market prices.
Allocation of common costs
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.
Unallocated items
Other segment includes income and expense items which are not allocated to any business segment.
xix) CASH AND CASH EQUIVALENTS
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. Non-cash transactions are excluded from the cash flow statement.
Note : 39 Credit facilities:
i) The company has borrowings from bank on the basis of security of current assets.
ii) There is no material discrepencies in quarterly returns or statements of current assets filed by the company during the year with bank and books of account.
Note : 40 Fair value measurements:
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial assets, financial liability and equity instrument are disclosed in Note 1(Viii) to the financial statements.
42 Segment Reporting:
The only segment identified by the company during the year under report is Vanaspati and Refined oil segment, which forms the basis of review of operating performance by the management. In line with the practice and considering the nature of the materiality in operations, the dealing in shares/securities has not been reported as a separate segment. Accordingly the segmental information as required in accordance with the Ind AS-108 as specified in the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 is not given, as there is only one segment of the company.
43 Operating Lease:
Lease Payments:
a) The Company has entered into Lease transaction mainly for leasing of Office Premises. Terms of lease include terms of renewal, increase in rent in future period and terms of cancellation.
b) The operating lease payments recognized in Profit & Loss A/c Rs. 11.21 lacs (P.Y Rs.9.42 lacs) for the lease which commenced on or after April 01,2001.
c) General description of Lease terms:
i) Lease payments are made on the basis of agreed terms;
ii) The premises are taken on operating lease for a period of three years with a lock in period of one years from the date of conmencement.
44 Forward exchange Contracts entered into by the company and outstanding :
For hedging currency related risk:
Nominal amount of forward exchange contracts entered in to by the company and outstanding as at 31.03.2024 for Rs. Nil (P.Y. Rs. 2475.35 lacs) covered by financial hedge.
45 Contribution towards Corporate Social Responsibility
As per section 135 of the Companies Act 2013, a company, meeting the applicability threshold , needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities as specified in schedule VII of the act. The areas for CSR activities are food for everyone and Child Literacy with Mid-Day Meals, Udaan - An initiative by Be Kind Towards Women Empowerment, Distribution of Books and career counseling to female beneficiaries (Women empowerment), school and hospitals projects.
A CSR committee has been formed by the company as per the act. As informed by the chairman of the CSR committee, during the year the immediate preceding financial year the company's turnover is more than Rs. 1,000 Crore hence CSR activities during the financial year2023-24 as per Section 135 ofthe companies act, 2013 is applicable. . .
46 Financial risk management
In the course of its business, the company is exposed primarily to fluctuations in foreign currency exchange rates, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which not only covers the foreign exchange risks but also other risk associated with financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The risk management framework aims to:
(i) create a stable business planning environment by reducing the impact of currency and interest rate fluctuations on the company's business plan.
(ii) achieve greater predictability to earnings by determining the financial value of the expected earnings in adance.
(A) Credit risk
The company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Maximum exposure to credit risk of the company has been listed below:
i) Trade receivables
Customer credit risk managed by the company is through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and generally carrying upto 21 days credit terms. The company has a detailed review machanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, trade receivables are backed by security deposits/bank guarantee.
(B) Liquidity risk
The company's current assets aggregate Rs. 15,913.01 lacs (2023- Rs. 18,229.73 lacs) including inventories, current investments, cash and cash equivalents and other bank balances of Rs. 14,195.83 lacs (2023- Rs. 14,106.43 lacs) against aggregate current liability of Rs. 7,854.15 lacs (2023 Rs. 9,932.53 lacs). The balance of other non-curret liabilities are Rs. 720.94 lacs (2023- Rs. 679.28 lacs) on the reporting date.
Further, while the company's total equity stands at Rs. 13,069.89 lacs (2023- Rs. 12,580.03 lacs), it has non-current borrowings of Rs. Nil (2023- Rs. Nil). In such circumstances, liquidity risk or the risk company may not settle or meet its obligations as they become due does not exist
(C) Foreign currency risk
The company deals with foreign currency trade payables and is therefore exposed to foreign exchange risk associated with exchange rate movement.
The company is exposed to foreign exchange risk through its purchases from overseas suppliers in foreign currencies.
Foreign currency risk exposure
The company's exposure to foreign currency risk at the end of the reporting period expressed in INR (Foreign currency amount multiplied by closing rate) are as follows:
include implementing hedging strategies for foreign currency exposures, specification of transaction limits; identification of the personnel involved in executing, monitoring and controlling such transactions.
(D) Commodity Price Risk
The main raw material i.e. crude edible oil, which company procures is global commodity and their prices are to a great extent linked to the movement in global prices directly or indirectly.
The pricing policy of the Company final product is structured in such a way that any change in price of raw materials is passed on to the customers in the final product however, with a time lag which mitigates the raw materials price risk. 47 Disclosure required under Section 186(4) of the Companies Act, 2013
i). Details of Investment made are given in Note - 5 of Financial Statements.
48 Other statutory information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) 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 on behalf of the Ultimate Beneficiaries,
(viii) The Company has 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
49 Previous year's figures have been regrouped/reclassified, wherever considered necessary, to conform to current year's classification.
>4s per our report of even date attached
For and on the Behalf of Board of Directors
For TAS ASSOCIATES
Chartered Accountants
|CA| Firm registration number: 010520N Sushil Kumar Goyal Abhey Goyal
(Managing Director) (Whole Time Director) DIN:00125275 DIN:02321262
Mukesh Agrawal
Partner
Membership number:090582
ed/- ed/-
Place : New Delhi Jai Gopal Sharma Kapil
Date : 30th May, 2024 (Chief Financial Officer) (Company eecretary)
UDIN : 24090582BKDHEE7350 PAN:ANYPe9660D M.NO. 10992
|