3.5 Title deed of Immovable property held in name of the company
The Company is the owner of Office Premises Unit no. 108/109 in T.V. Industrial Estate, Worli, Mumbai -30, Factory Shed on Survey No.22/1, Village Ringanwada, Kachigam Road, Nani Daman, Daman -396210 & Flat No. 201 in Dharmesh Apartments in Daman. The title deeds of these immoveable properties are held in the name of the Company.
The Company has taken certain premises on lease and lease agreements are duly executed in favour of the Company.
3.6 Fair valuation of investment property
The Company did not own any investment property during the year.
3.7 Revaluation of Property, Plant & Equipment and Right of Use Assets
The Company has not revalued its Property, Plant & Equipment and Right of Use Assets during the year.
3.8 Revaluation of Intangible assets
The Company has not revalued its Intangible Assets during the year.
3.9 Intangible assets under development ageing Schedule Intangible assets under development Completion Schedule
There is no intangible assets under development as on the date of Balance Sheet.
Level 1: Level 1 hierarchy includes Financial Instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.
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.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.This is the case for unlisted equity securities included in level 3.
39 Financial Risk Management
The Company’s activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk.This note explains the sources of risk which the entity is exposed to and how the entity manages the risk :
The Company’s risk management is carried out by chief financial officer under policies approved by the Board of Directors.Company's chief financial officer identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units.The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity. The risk management includes identification,evaluation and identifying the best possible option to reduce such risk. The Board has taken all necessary actions to mitigate the risks identified on the basis of the information and situation present.
A. Market riski. Currency risk
Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company’s functional currency (INR). This is closely monitored by the Management to decide on the requirement of hedging. The position of unhedged foreign currency exposure to the Company as at the end of the year expressed in INR are as follows :
Holding all other variables constant.
ii. Interest rate risk
The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period depends on the mixed of fixed rate and floating rate of the borrowings and the expected movement of market interest rate. The Company has fixed rate as well as floating rate of interest borrowings and therefore is exposed to interest rate risk.
iii Price risk
The Company’s exposure to equity securities price risk arises from investments held by the Company in listed securities and classified in the balance sheet as at fair value through profit or loss.
B. Credit risk
Credit risk arises when a counter party defaults on contractual obligations resulting in financial loss to the Company.Trade receivables consist of large number of customers, spread across diverse industries and geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.
C. Liquidity risk
The Company has sufficient cash and cash equivalent and other liquid current financial assets which can be easily realised in cash or cash equivalent in short time .Therefore there is no significant liquidity risk.
i) Maturities of Financial Liabilities
The tables below analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative Financial Liabilities.
For the purpose of the Company’s capital management, equity includes issued equity capital, Securities Premium and retained earnings attributable to the equity shareholders of the company. The primary objective of the Company’s capital management is to maximise the shareholders value. The Company’s Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholders’ value. The Company is monitoring capital using debt equity ratio as its base, which is debt to equity. The Company finances its long-term funds through Term loans. The company’s policy is to keep debt equity ratio at the minimum and infuse capital if and when it is required through issue of new shares and/or better operational results and efficient working capital management.
In order to achieve the aforesaid objectives, the Company has financed capital expenditure for new expansion projects through term loans from Banks/ Financial Institution, unsecured borrowings from Corporates and promoters and internal accruals in last two to three years keeping the debt to equity ratio at the optimum. However, modernization, upgradation and continued marginal expansions have been to remain competitive and improve product quality through efficient machinery. There is constant endeavour to keep balance between debt & equity as much as feasible and practical by improving operational and working capital management so that the debt-equity ratio remains at the optimum.
The Company has set up a new project at Malegaon for manufacturing Technical Textiles goods. The project is financed through funds raised through private placement of equity shares by way of preferential issue, term loan from bank & Financial Institution, unsecured borrowings from corporates and promoters and internal accruals.
45. Disclosures as per IND AS-19, “Employee Benefits” are given below :(i) Short Term Employee Benefits
I. The Company has provided for bonus amounting to Rs.18,77,492/- (Previous year Rs. 15,10,356/-) for all its employees under the Payment of Bonus Act, which has been recognized in the Statement of Profit and Loss for the year.
II. During the year the company has recognized Leave Salary amounting to Rs. 5,97,177/-(Previous year Rs.5,02,692/-) in the Statement of Profit and Loss on payment basis.
III. During the year the company has made contribution to Employees State Insurance Scheme amounting to Rs.3,62,821/- (Previous year Rs.2,26,890/-) which has been recognized in the Statement of Profit and Loss.
(ii) Long Term Employee Benefits
The Company has classified the various Long Term Employee Benefits as under:-I. Defined Contribution Plans
a) Contribution to Provident Fund
b) Contribution to Pension Scheme
The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
46. Segment Reporting
The Company has disclosed and reported Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organizational structure and internal reporting system. Accordingly the company has identified Textile Division, Plastics Division, Trading Division and Technical Textiles Division as the main business segments as per the IND AS on “Operating Segments” (IND AS-108) issued by The Institute of Chartered Accountants of India.
Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The income & expenses, which are not directly relatable to the business segment, are shown as unallocated corporate costs net of unallocable income. Similarly, Assets and Liabilities that cannot be allocated between segments are shown as unallocated corporate assets and liabilities respectively.
The Company is operating only in India and does not have any revenue from customers located outside India and hence there is no separate reportable Geographical Segment.
48. Additional Regulatory Information (to the extent applicable) as per MCA’s Notification no. G.S.R. 207(E) dated 24-03-2021i. Loans and advances to Specified Persons.
The Company has not granted any loans or Advances in nature of loans to Specified Persons, namely Promoters, Directors, KMP's & Related Parties during the year.
ii. Details of Benami Property held
The Company does hold any Benami Property.No proceedings have been initiated or pending against the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 and Rules made there under, during the year.
iii. Willful Defaulter
The Company is not decalared as willful defaulter by any Bank or Financial Institutions or other lenders during the year.
iv. Transaction with Struck off Companies
The Company has not entered into any transactions with struck-off Companies
v. Registration of Charges or satisfaction with Registrar of Companies
There is no charge pending for registration or satisfaction with Registrar of Companies.
vi. Compliance with No of layers of Companies.
The Company does not have any subsidiary Companies and hence, there is no question of any compliance with no of layers u/s. 2(87) of the Companies Act, 2013.
vii. Compliance with approved Scheme(s) of Arrangements
The Company has not made any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013 during the year.
viii. Utilisation of Borrowed funds and share premium:
The Company has not advanced / loaned / invested any funds (either from borrowed funds or from share premium or from any other sources / kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons 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.
The Company has not received funds from any person(s) or entity(ies), including foreign entities (Funding Parties), 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.
ix. Undisclosed income
The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961 which were not recorded in the books of accounts.
x. Corporate Social Responsibility (CSR)
The provisions of section 135 of the Companies Act, 2013 relating to CSR are not applicable to the Company during the year.
xi. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year,
xii. Borrowings secured against currents assets
The Company has availed working capital and overdraft facility from Bank against security of its current assets. The required disclosure in respect of the same is as under:
i. The company has availed the borrowings from banks on the basis of security of current assets during the year as per details given here under:
50. The Company has imported capital goods and raw materials for its Technical Textile Project at Malegaon, Maharashtra under the Manufacturing and Other Operations in a Custom Bonded Warehouse (MOOWR) Scheme (‘the Scheme’) of the Central Government of India. Under the Scheme, the custom duties on imported capital goods of Rs. 2,13,62,419/- during the year (Previous Year Rs.2,24,50,632/-) and raw materials of Rs. 56,27,506/- during the year (Previous Year Rs.7,81,591/-) are deferred till their clearance from the bonded warehouse.
The custom duty deferred on imported raw materials under the Scheme shall become payable on clearance of the finished goods manufactured by using imported raw materials. Accordingly, the Company has provided for the liability towards payment of deferred custom duty of Rs. 46,18,835/-(Previous Year Rs.7,81,591/-) on imported raw materials. The management of the Company does not have any plan to export or remove the imported capital goods in future and hence, no liability is provided towards payment of deferred custom duties of Rs.4,38,13,051/- (Previous Year Rs.2,24,50,632/-) on imported capital goods.
51. Contingent liability:
Contingent Liability on account of deferred custom duties of Rs.4,38,13,051/- on imported capital goods (Previous Year Rs. 2,24,50,632) under MOOWR Scheme (As referred in Note No. 50)
52. The previous year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make
them in compliance with disclosure requirement of Indian Accounting Standards.
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