3.19 Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation (legal or constructive)
as a result of past event and it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, in respect of which a reliable estimate can
be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources.
18.1 Vehicle Loans from Bank are secured by hypothecation of Trucks and Motor Cars for
which loan has been taken.
18.2 The Commercial Vehicle Loan taken from HDFC Bank and GECL on the same is secured
against hypothecation of Trucks purchased against the same.
18.3 Loan against residential Property taken from ICICI Bank and Top Up Loan on the same
is secured by mortgage of Residential Flat purchased by the company at Surat. Loan
against office building taken from ICICI Bank is secured by mortgage of Office Building
purchased by the company.
18.4 Term Loans from Banks includes ECLGS is secured by hypothecation of Assets
created out of Bank Finance. The rate of interest of TL is 7.75% as at the year end.
The above information disclosure regarding Trade Payables of Micro, Small and Medium Enterprises is made by the Management as per information from suppliers’ regarding their status
under the Micro, Small and Medium Enterprises Development Act, 2006 and relied upon by Auditors. The liability to pay interest u/s 16 of MSMED Act is provided in books of accounts as
and when same is claimed by supplier by raising Debit Note in respect of the same. Accordingly, the above disclosure has been given as per liability of Trade Payable shown in the books of
accounts of the company.
42. SEGMENT REPORTING
In line with Ind AS - 108 on 'Operating Segments’, taking into account the organizational
structure, product type as well as the differing risks and returns criterion, the Company is
engaged in only one reportable segment viz. “Building Materials”.
45. DISCLOSURE UNDER RULE 11(E) OF COMPANIES (AUDIT AND AUDITORS) RULES, 2014
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or
entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by
or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee,security or the like on behalf of
the Ultimate Beneficiaries.
46. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value
information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Equity Security includes only shares of Co-operative bank. The equity instruments of Co-operative Bank is not listed on stock exchange and are not tradable security. Further, share have
been purchased due to banking relation with said bank and as per Co-operative bank policy only face value of shares is paid back at time of closure of relationship. Hence, equity security
with Co-operative bank is taken at face value only as no amount above it can be realized by the company.
B. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
(i) credit risk
(ii) liquidity risk
Risk management framework
The Company’s board of directors has overall responsibility for the establishment and
oversight of the risk management framework.
The board of directors has established the risk management committee, which is
responsible for developing and monitoring the Company’s risk management policies. The
committee reports regularly to the board of directors on its activities.
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 regularly to
reflect changes in market conditions and the Group’s activities. The Company, through its
management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
The financial risk disclosures presented are only illustrative and reflect the facts and
circumstances of the Group. In particular, Ind AS 107 requires the disclosure of summary
quantitative data about an entity’s risk exposures based on information provided internally
to an entity’s key management personnel, although certain minimum disclosures are also
required to the extent that they are not otherwise covered by the disclosures made under
the 'management approach’ above.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Company’s receivables from customers, loans and investments in debt securities.
The carrying amounts of financial assets and contract assets represent the maximum
credit exposure.
Impairment losses on financial assets and contract assets recognised in profit or loss were
NIL.
Liquidity risk
Liquidity risk is the risk that 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 objective when managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation.
47. Additional Information as required by para 7 of General Instructions for preparation
of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not
Applicable.
48. Previous Year Figures have been regrouped/rearranged wherever necessary.
50. ADDITIONAL REGULATORY INFORMATION
(i) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period in respect of loans taken/
repaid during the year.
(ii) Borrowings from banks or financial institutions on the basis of security of current assets The material differences in amount of quarterly statement/return filed with Bank and as per
books of accounts as given below:
Note on Explanation for difference in amount as per Books of accounts and amount reported in quarterly statement/return filed with bank.
1 The difference between amounts as per books of accounts and amounts reported in quarterly statement filed with bank is because stock statements are filed with bank before
updation/finalization of accounts for quarterly limited review/audit of the accounts. Hence, debtors, creditors and stock are reported on adhoc basis with bank without complete
updation of books of accounts.
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