Terms / Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, holder of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.
The amount that can be distributed by the Company as dividends to its equity shareholders, is determined based on the requirements of Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.
a. Interest Rate of Loan is 9.25% P.A.
b. Period Of Loan is given below
Woking Capital Term Loan has tenure of 48 months including moratorium of 12 Months Woking Capital Term Loan GECL 1.0 has tenure of 60 months including moratorium of 24 Months
c. Loan from SBI is primary secured by hypothecation of entire Current Assets of the firm, present & future, including stocks, stores, finished goods & receivable and 1st charge on Plant and Machinery and collateral secured as Registered Mortgage of company Land & Building and Personal Guarantee of Directors namely , Sh. Vishal Tayal and Sh. Abhinav Bhardwaj and the Shareholders namely Manju Bhardwaj and Dipti Gupta.
d. Interest Rate of Loan is 8.50% P.A.
e. Period Of Loan is given below Car Loan has tenure of 36 months
There is no default in repayment of any loan or interest thereon.
g. Cash Credit facility provided by State bank of india is primary secured by hypothecation of entire Current Assets of the firm, present & future, including stocks, stores, finished goods & receivable and 1st charge on Plant and Machinery and collateral secured as Registered Mortgage of company Land & Building and Personal Guarantee of Directors namely Sh. Vishal Tayal and Sh. Abhinav Bhardwaj and the Shareholders namely Manju Bhardwaj and Smt. Dipti Gupta.
h. Inter-Corporate Loan carry an simple interest rate of 7.5% p.a., 6.0% p.a. and are repayable on demand.
i. There is no default in repayment of any loan or interest thereon.
j. Includes interest of INR 9384.47 hundred and INR 10116.62 hundred as at March 31, 2024 and March 31, 2023 respectively.)
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.
Trade receivables are non interest bearing. Credit period generally falls in the range of 60 to 90 days. Contract liabilities consist of short-term advances received to supply goods from customer.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company's activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The board of directors oversees how management monitors compliance with the company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The board of directors is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the board of directors.
Financial risk
The Company's Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest through proven financial instruments. a) Liquidity
The Company requires funds both for short-term operational needs as well as for long-term investment programme mainly in growth projects.
The Company remains committed to maintaining a healthy liquidity, gearing ratio, deleveraging and strengthening our balance sheet. The maturity profile of the Company's financial liabilities based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted cash obligation of the Company.
c) Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company regularly monitors its counterparty limits by reviewing the outstanding balance and ageing of the same.
The carrying value of the financial assets other than cash represents the maximum credit exposure. The Company's maximum exposure to credit risk at March 31, 2024 is INR 16,24,777.07 and at March 31, 2023 is INR 14,37,380.61.
d) Foreign currency risk
The company is exposed to currency risk on account of import and export of goods or services from other countries. The functional currency of the company is Indian Rupee. Considering the countries and economic enviornment from which the company imports, its operations are subject to risks arising from the fluctuations primarily in the US dollar. Currency risk exposure is evaluated and managed through advance payments for procurements.
31 Employee Benefits
The Company participates in defined contribution and benefit schemes and the amount charged to the statement of profit or loss is the total of contributions payable in the year.
a. Defined contribution plan
The Company makes contributions towards provident fund and employee state insurance scheme to a defined contribution retirement benefit plan for qualifying employees. The Company's contribution to the Employees Provident Fund and Employees State Insurance scheme is deposited with the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits.
During the year, the Company has recognised INR 20.46 lacs (Previous year INR 20.82 lacs) for Employer's contributions to the Provident Fund and INR 4.84 lacs (Previous year INR 4.87 lacs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contribution payable to the plan by the Company is at the rate specified in rules to the scheme.
b. Defined benefit plan - Gratuity plan
The Company's contribution towards its gratuity liability is a defined benefit retirement plan.
The gratuity liability arises on retirement, withdrawal, resignation and death of an employee. The aforesaid liability is calculated on the basis of fifteen days salary (i.e. last drawn qualifying salary) for each completed year of service subject to completion of five years service.
i. Risks associated with Plan Provisions
Risks associated with the plan provisions are actuarial risks. These risks are:- (i) investment risk, (ii) interest risk (discount rate risk), (iii) mortality risk and (iv) salary risk.
In respect of the plan in India, the most recent acturial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2024 by Ashok Kumar Garg. The present value of defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Notes
1 The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.
2 The expected return is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.
The current service cost and the net interest expense for the year are included in the 'Employee benefits expense ' in the Statement of Profit and Loss.
The remeasurement of the net defined benefit liability is included in the other comprehensive income.
The Company expects to make a contribution of INR 6.90 lacs to the defined benefit plan during the next financial year.
e. Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit liability recognised in the Balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
In respect of the plan in India, the most recent acturial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2024 by Ashok Kumar Garg. The present value of defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Notes
1 The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.
2 The expected return is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.
3 The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit liability recognised in the Balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
1 The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.
2 The leave encashment plan is unfunded.
3 The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
34 In the opinion of the Management, Current Assets, Loans and Advances are of the value stated, if realized in the ordinary course of business except otherwise stated. The provision for all the known Liabilities is adequate and not in excess of the amount considered reasonably necessary.
35 The company has to recover a sum of INR 6876.16 from PCB Delhi. The matter is pending before District Court, Tis Hazari, Delhi for adjudication. The management is hopeful of recovering this pending amount. But, During the year company has made a provision of INR 6876.16.
36 The company has to recover a sum of INR 4742.83 from Rehaan International. The matter is pending for dishonor of cheques before District Court, Saket, Delhi for adjudication. The management is hopeful of recovering this pending amount.
37 Remuneration paid to the Directors included in Employees Benefits Expenses is INR 21,600.00 (Previous Year INR 15,300.00).
38 All Trade Receivable are good and recoverable except as stated in point no 35 and 36.
39 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
40 Previous year figures have been regrouped/reclassified by the company to conform with current year's presentation, none of which it believes to be material, hence no additional disclosure is provided.
41 Contigent Liabilities and Capital Commitements
1. The company has contingent liability of letter of credit outstanding for Raw Material as on March 31. 2024 is INR 2,86,461.82. (Previous Year 6,75,590.78).
2. The Company received an income tax demand notice under section 148 for INR 3,541.54. The Company has filed an appeal with the Commissioner of Income Tax (Appeals) [CIT(A)] in this matter.
3. There is no capital commitement payable on March 31, 2024.
42 The company has not declared any dividend during the year.
43 The company do not have any long- term contracts including derivative contract.
44 The Company has migrated to upgraded version of accounting software from legacy accounting software during the year. The audit trail feature in respect of the legacy accounting software is not enabled. The upgraded accounting software used for maintaining its books of account has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with in respect of upgraded accounting software.
b No proceedings have been initiated or is pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1948 (45 of 1988) and the rules made thereunder.
c The Company is not declared wilful defaulter by any bank or financial Institution or other lender.
d The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
e The Company has adequately registered the charge and there is no charge which has beyond the statutory period.
f No scheme of arrangement for the Company has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.
(A) The Company has not advanced or loan or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall
i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
ii) provide any guarantee, security, or the like to or on behalf of the Ultimate Beneficiaries.
(B) 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 manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security, or the like on behalf of the Ultimate Beneficiaries.
j There is no transaction to be 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 and also there is no previously unrecorded income and related assets to be recorded in the books of account during the year.;
k The company is not covered under section 135 of the Companies Act.
l The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
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