Terms/rights attached to Equity shares
The Company has only one class of Equity shares having par value of '1 per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity shares held by the shareholders.
Nature and Purpose of Reserves:(i) Securities Premium
Securities premium account is created when shares are issued at premium. The Company may issue fully paid-up Bonus shares to its members out of the Securities premium account. As per Section 52 (2) (e) of the Companies Act, 2013, Securities premium account can be used for buy back of shares.
(ii) General Reserve
General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
(iii) Retained Earning
Retained earning are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the shareholders.
29 LEASES
The leasing arrangements are in most cases renewable by mutual consent, on mutually agreeable terms.
The Company’s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under “Other Expenses”.
The Company has not recognised any right- of- use asset (“ROU”) due to low value of leases where in the lease period is more then twelve months.
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30 CONTINGENT LIABILITIES & CAPITAL COMMITMENTS
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(' in lakhs)
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Particulars
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As at
31st March, 2024
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As at
31st March, 2023
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Claims against the Company not acknowledged as debts
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i. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances).
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720.00
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-
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ii. Income tax demand under appeal
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71.53
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71.53
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31 LOANS & ADVANCES
The Company has granted Unsecured loans to Companies, Firms, Limited Liability Partnerships and various other parties other than those covered under Section 185 of the Act. The aggregate amount of Loans given during the year is ' 24,246.75 lakhs, Loans received back during the year is ' 24,656.32 lakhs balance outstanding at the Balance sheet date is ' 29,818.06 lakhs (RY? 30,227.62 lakhs).
33 DETAILS OF FORWARD CONTRACTS & UNHEDGED FOREIGN CURRENCY EXPOSURE:33.1 Forward contracts outstanding as at the Balance Sheet date
There are no forward contract outstanding as at balance sheet date.
Note:The Company had incurred during the last year a sum of ' 2,432.49 lakhs as CSR expenses against the CSR obligation of ' 666.34 lakhs. Thus the excess amount available of ' 1,766.15 lakhs of last year is being set-off in the current year and the balance excess amount of '1024.76 lakhs is being carried forward to the next year. The same is in compliance with the FAQ issued by the Ministry of Corporate Affairs vide Circular no 14/2021 dated 25th August, 2021 wherein it has been clarified that the excess amount can be set off against the required 2% CSR expenditure up to the immediately succeeding three financial years subject to compliance with the conditions stipulated under Rule 7(3) of the Companies (CSR Policy) Rules, 2014.
38 CAPITAL MANAGEMENT
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value and to safeguard the companies ability to remain as a going concern.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions 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 or issue new shares. The current capital structure of the Company is equity based with no financing through borrowings. The Company is not subject to any externally imposed capital requirement.
No changes were made in the objectives, policies or processes during the year ended 31st March, 2024 and 31st March, 2023 respectively.
39 FAIR VALUE DISCLOSURES39.1 The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
The categories used are as follows:
• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds, ETFs and mutual funds that have quoted price;
• Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and
• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.
39.2 Financial Risk Management- Objectives And Policies
The Company’s activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The Company has various financial assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Company’s principal financial liabilities comprise of trade and other payables. The Company’s senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the company’s financial performance. The Company’s overall risk, management procedures to minimize the potential adverse effect of the financial market on the Company’s performance are as follows:
39.3 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. The Company is exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised cost.
A Trade Receivables:
Trade receivables of the Company are mostly unsecured. The Company performs ongoing credit evaluations of its customers’ financial conditions and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through internal evaluation. The allowance for impairment of trade receivables is created to the extent and as and when required, based upon the expected collectability of accounts receivables. The Company has no concentration of credit risk as the customer base is geographically distributed in India.
B Cash and cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
C Other financial assets measured at amortised cost
Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously and is based on the credit worthiness of those parties.
D Investments
Investment in Joint Venture are measured at cost as per Ind AS 28, ‘Investment in Associates and Joint Ventures’ and hence not presented here.
Provision for expected credit losses
a) Expected credit losses for financial assets other than trade receivables
The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.
b) Expected credit loss for trade receivables under simplified approach
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified approach,no allowance has been recognised.
39.4 Liquidity risk is the risk that the Company will not be able to meet its financial obligation as and when they fall due. Liquidity risk arises because of the possibility that the Company could be required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments. The Company manages its liquidity risk by maintaining sufficient bank balance .
39.5 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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The Company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:
A Foreign Currency Risk
Foreign currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies.
A.1 Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved board policy parameters. Quarterly reports are submitted to Board of Directors on the unhedged foreign currency exposures.
Company’s contributions paid/payable during the year to Provident Fund, ESIC, Labour Welfare Fund and Superannuation Fund are recognised in the Statement of Profit & Loss.
40.2 Defined Benefit Plans :
The Company’s liabilities towards gratuity and leave encashment, a defined benefit obligation, is accrued and provided for on the basis of actuarial valuation, using the projected unit credit method as at the Balance Sheet date.
42 INCOME TAXES
The Company has exercised the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the financial year 2019-20. Accordingly, the provision for income tax and deferred tax balances have been recorded/ remeasured using the such rates.
43 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 201343.1 Details of Benami property:
No proceeding have been initiated or are pending against the Company for holding any Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.
43.2 Utilisation of borrowed funds and share premium:
(a) 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:
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 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 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 or on behalf of the ultimate beneficiaries.
43.3 Compliance with number of layers of companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
43.4 Compliance with approved scheme (s) of arrangements:
The Company has not entered into any scheme or arrangement which has an accounting impact on current or previous year.
43.5 Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
43.6 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.
43.7 Valuation of Property, Plant and Equipment:
The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.
43.8 Willful Defaulter:
The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.
43.9 Details of Transaction with Struck of Companies:
There are no Transactions with Struck of Companies during the Current and Previous Year.
44 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.
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