11.1 Other unsecured non current and current deposits (which are considered good) include various EMD's given to government for participating in tenders and security deposit for utilities.
11.2 Balances of H 120.00 lakhs (2022-23 H 233.00 lakhs) with bank in deposit accounts are held as lien by banks against bank overdraft availed by the company.
11.3 Balances H 305.29 lakhs (2022-23 H 87.12 lakhs) with bank in deposit accounts are held as lien by banks against bank guarantees and PBG issued to government authorities in the normal course of business.
11.4 Other current financial assets include settlement of cash out services and other receivable from various service providers/ clients of Zapurse project.
Trade receivable are non-interest bearing and credit period extended to them is as per normal operating cycle. Above balances of trade receivable include balances with related parties.(refer note 38)
17.2 Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares having par value of H 10 per share. Each shareholder is eligible for one vote per share held and a right to dividend. 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, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
1 Securities premium represents the premium on equity shares issued.
2 General reserve are free reserves of the company which are kept aside out of company's profits to meet the future requirements as and when they arise. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
3 Retained earnings are the accumulated profits earned by the Company till date net off transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.
4 Capital reserve reflects an advance received from M/s Sainath against sale of plot, forfeited due to non-fulfilment of terms and conditions of sale agreement in earlier years.
19.1 The company had taken a vehicle loan from Bank of Baroda for purchase of vehicle of H 27.90 Lakhs. The loan carries interest @ 9.60% per annum payable monthly and is to be repaid in 60 monthly Instalments starting from January 2022. As on march 31, 2024, 33 monthly instalment are still remaining to be due. Further, the said loan is secured by primary security of vehicle.
19.2 The Company had a sanctioned limit of H 500.00 lakhs of working capital loan from Bank of Baroda. The loan carries interest @ 9.90% per annum payable monthly according to utilisation. The said loan is secured by way of hypothecation charge on company's entire current assets including stock and book debts.
19.3 The Company had a sanctioned limit of H 108.00 lakhs of overdraft against fixed deposit of H 120.00 lakhs from State Bank of India. The loan carries interest of 7.80% (Interest rate of fixed deposit is 6.80% per annum) per annum payable monthly according to utilisation. The said loan is secured by way of lien on fixed deposit.
19.4 The Company had a sanctioned limit of H 0.85 lakhs of overdraft against fixed deposit of H 1.00 lakhs from Axis Bank. The loan carries interest of 7.70% (Interest rate of fixed deposit is 6.70% per annum) per annum payable monthly according to utilisation. The said loan is secured by way of lien on fixed deposit.
19.5 Defaults in terms of repayment of principal and interest with regard to above borrowings is NIL.
Note - 35 Employee benefits
(1) Contribution to Provident Fund and Employees State Insurance -
The Company makes contributions to the Provident Fund and Employees State Insurance for eligible employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs. The Company has recognised H 18.14 lakhs (Previous year H 9.99 lakhs) as expense in the statement of profit and loss during the year towards contribution to these funds.
(2) ESOP -
In the financial year 2020-21, the Company introduced Atishay Limited Employees Stock Option Scheme 2020 ('AL ESOP 2020') for issuance of 10,00,000 stock options. Atishay Limited ESOP 2020 was approved by the Nomination and Remuneration Committee('NRC') and Board at their respective meetings held on November 9, 2020 and by the shareholders through postal ballot, result of which was announced on December 24, 2020. Below are the details of stock options granted during the financial year 2023-24 -
(3) Gratuity
The company has defined benefit gratuity plan for its employees, which requires contributions to be made to a separately administered fund. The fund has the form of a trust and it is governed by the Board of Trustees, in which benefits are defined as per such policy. The Trust has taken “Group Gratuity Scheme of LIC”.
Note: 1. The above remuneration to KMP does not include provision for gratuity as it is provided in the books on the basis of actuarial valuation for the company as a whole and hence individual figures cannot be identified.
Note: 2. During the year 20,000 stock option granted to Mr. Arjun Singh Dangi under Atishay Limited Employees Stock Option Scheme 2020 ('AL ESOP 2020').
Note - 39 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. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the act.
Note - 41 Financial Instruments
a) Financial risk management objects and policies
In its ordinary operations, the company's activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks.
Market risk : -
Market risk is the risk that changes market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), which affect the Company's income or value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
i) Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest-bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest - bearing investments will fluctuate because of fluctuations in the interest rates.
The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations.
Interest rate sensitivity
The sensitivity analysis below has been determined based on exposure to interest rates for term loans at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below:
ii) Foreign currency risk
The Company is not exposed to any foreign currency risk.
Credit risk : -
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Financial instruments that are subject to concentrations of credit risk principally consists of trade receivables, unbilled receivables, cash and cash equivalents, bank deposits and other financial asset.
The Company's revenue combination is of government and private parties. The company is having majority of receivables from Government undertakings. The exposure to credit risk at the reporting date is primarily from long due trade receivables of Government undertakings.
In case of private customers, the Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Credit Risk Exposure
The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date. The allowances for expected credit loss for year ended March 31, 2024 and March 31, 2023 was H 23.03 lakhs and H 12.67 lakhs respectively.
Liquidity risk : -
Liquidity risk refers to the risk that the Company cannot meet its financial obligations.The Company manages liquidity risk by maintaining adequate reserves, banking facilities and borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
b) Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company's objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stakeholders.
The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2024 and March 31, 2023.
The management assessed that cash and cash equivalents, trade receivables, trade payables, other bank balances, other current asset and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
The following methods and assumptions were used to estimate the fair values:
Long-term floating and variable-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual credit worthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.
The fair value of loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.
The fair values of the quoted Mutual Funds recognized at FVTPL financial assets have been estimated using per unit value provided by the respective asset management company.
d) Fair value hierarchy
All financial assets and liabilities at amortised cost are in Level 3 of fair value hierarchy and have been considered at carrying amount.
Note - 42 Previous year figures
The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable. The previous year's figures have been regrouped / reclassified wherever necessary, to make them comparable.
EBIT/PBIT - Earning before interest and taxes (Including other income)
EBITDA - Earning before interest, taxes, depreciation and amortisation PAT - Profit after taxes
Debt includes current and non current borrowings and lease liabilities.
Capital employed includes shareholders equity and non current liabilities.
Average Trade receivables does not includes non-trade receivables.
Earning for Debt Service includes non-cash operating expenses and other non cash adjustments.
Debt services includes principal repayments.
Note 44: Operating Segment
Factors used to identify the reportable segments:
The Company has following business segments, which are its reportable segments. These segments offer different services and products that are managed separately. Operating segment disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.
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