The fair value of financial assets and liabilities are included at the amount at which instruments could be exchanged in a current transaction between the willing parties. The following methods and assumptions were used to estimate the fair value:
(A) The Company has opted to fair value its unquoted equity instruments at its Net Asset Value through Retained Earnings.
(B) The fair values of cash and cash equivalents, other bank balances, trade receivables, loans, other financial assets, short term borrowings, trade payables, and other financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments. Company has adopted Effective Interest Rate Method (EIR) for fair valuation of
Fair Value Hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices 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).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
NOTE NO .21
Financial Risk Management Objectives and Policies:
The Company’s activities are exposed to a variety of Financial Risks from its Operations. The key financial risks include Market risk, Credit risk and Liquidity risk.
(a) Market Risk: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly three types of risk:, Foreign currency risk, Interest rate risk and other price risk such as Equity price risk and Commodity Price risk.
(b) Foreign Currency Risk:
There are no Foreign Currency transecton during the financial year.
(c) Foreign Currency Sensitivity:
There are no Foreign Currency transecton during the financial year.
(d) Interest Rate Risk and Sensitivity:
The Company does not have any term borrowings.
(e) Commodity price risk:
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material and therefore, require a continuous supply of certain raw materials & brought out components such as fibre, polyethylene compound, copper etc. To mitigate the commodity price risk, the company has an approved supplier base to get the best competitive prices for the commodities and to manage the cost without any compromise on quality.
(f) Equity price risk:
The Company's exposure to equity instruments price risk arises from investments held by the company and classified in the balance sheet at fair value through OCI. Having regard to the nature of securities, intrinsic worth, intent and long term nature of securities held by the company, fluctuation in their prices are considered acceptable and do not warrant any management estimation.
(g) Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).
Trade Receivables:
Customer credit risk is managed based on company’s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss and the same, if any, is provided as per its respective customer's credit risk as on the reporting date
(h) Deposits with Bank:
The deposits with banks constitute mostly the investment made by the company against bank guarantee and are generally not exposed to credit risk .
(i) Liquidity Risk:
Liquidity risk is the risk, where 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 is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.
NOTE NO. 22 Capital Management:
The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders.
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31-Mar-24
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31-Mar-23
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Rs.
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Rs.
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NOTE NO. 23
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Estimated amount of contracts remaining to be executed on Capital Account and not
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Nil
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Nil
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NOTE NO. 24
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Contingent Liabilities not provided for in respect of
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Nil
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Nil
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i) Bonds executed in favour of Customs and Excise Authorities
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Nil
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Nil
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ii) Foreign bills discounting with Banks
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Nil
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Nil
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iii) Claims not acknowledged as debts (Disputed by the Company and or appealed
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Nil
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Nil
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a) Demand of Income Tax
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Nil
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Nil
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b) Demands by Excise department
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Nil
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Nil
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(including Service Tax )
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c) Demands of Sales Tax.
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Nil
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Nil
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d) Demands of workers
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Nil
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Nil
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iv) Others
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Nil
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Nil
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NOTE NO. 26
Accounts in respect of Current and Non-Current Liabilities, Trade Receivables , Other Current Assets, Loans and Advances and Deposits are subject to confirmations of respective NOTE NO. 27
The management has certified that the Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, disclosures, if any, relating to total outstanding dues of Micro Enterprises and Small Enterprises and the Principal amount and Interest due thereon remaining unpaid and the amount of Interest paid/ payable as required under amended Schedule III of the Companies Act.2013 could not be compiled and disclosed. The
NOTE NO. 31
The disclosures required as per the Indian Accounting Standards (Ind-AS 19 - Employee Benefits) notified under the Companies (Indian Accounting Standards) Rules, 2015 are as under Defined - Contribution Plans
The Company offers its employees defined contribution plan in the form of provident fund(PF), family pensions fund (FPF) and Employees State Insurance Scheme (ESI) which covers substantially all regular employees. Contribution are paid during the year into separate funds under certain fiduciary-type arrangements. Both the employees and the company pay pre determined contribution into the provident funds, family pension fund and the Employees State Insurance Scheme. The Contributions are normally based on a certain proportion of the employee's salary.
Contribution to Defined Benefit Plan, recognized and charged off for the year are as under (excluding for on contracts payments):
Rs. Rs.
Provident Fund Nil Nil
Family Pension Fund Nil Nil
Employees State Insurance Scheme Nil Nil
Defined - Benefit Plans
The Cluase does not apply to the Company.
NOTE NO. 32
“The Ind AS Financial Statement which describes the outstanding amount of Rs. 659.33 lakhs under the heading “Long Term Loans & Advances” & Rs.212.31 lakhs under the heading “Other Non-Current Assets” comprising mainly of Trade Receivables (Non-Current), Security deposit, Advance given for purchase of Properties and Long-Term Loans and Advances are outstanding for more than three Years.The Management is of the view that the discussions with the concerned parties are still on and the amount is expected to be recovered in the
NOTE NO. 33
The company has residual inventory of other items amounting to Rs. 1,71,213 available with them. The said inventory is measured at Net realisable value. The Management will dispose the same in the current year. However, on a conservative basis any diminution in the value of inventory is not expected to be significant which may have material impact on the results of
NOTE NO. 34
Previous Year, figures have been regrouped / rearranged, wherever necessary.
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