(b) Terms & Right attached to equity shares
The company has only one class of equity shares having a face value of S10 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation, shareholder will be entitled to receive remaining assets of the company after distribution of all preferential amount. The distribution will be in proportion to the member of equity share held by the shareholders.
T erms of security and repayment
Secured term loan from bank aggregating S10078.01 (2023: g Nil) (including current maturities of Rs. Nil (P.Y.Rs.Nil) classified as Current maturities of long term debt in Note 8) is secured by first charge by way of hypothecation of plant & machinery and other movable assets and equitable mortgage of the factory lease land and shed/building. The loan is further secured by second charge by way of hypothecation of entire current assets including inventories and book debts/receivables. The loan is repayable in 28 quarterly instalments starting w.e.f. June, 2025.
The above term loan is further secured by Equitable mortgage of a residential house in the name of Mr. Ramesh Kumar Agrawal, Director including personal guarantee of promoters and directors of the company including corporate guarantee of holding company and subsidiaries of holding company.
Other Loans from bank aggregating Rs.79.32 lacs (P.Y.Rs.74.61 lacs) (including current maturities of Rs. 33.02 lacs (P.Y. 63.56 lacs) classified as Current maturities of long term debt in Note 8) are secured by hypothecation of vehicles and specific assets.
Terms of borrowings:
Working Capital facilities from banks are repayable on demand and are secured as follows:
• First charge by way of hypothecation of entire current assets including inventories and book debts/receivables of the Company.
• Second charge by way of hypothecation of plant & machinery and other movable assets and equitable mortgage of factory land and shed/building of the Company.
• Equitable mortgage of a residential house in the name of Mr. Ramesh Kumar Agrawal, Director
• Personal guarantee of Mr. Ramesh Kumar Agrawal (Director), Mr. Keshav Kumar Agrawal (Joint Managing Director and Chief Financial Officer) and Mr. Chetan Kumar Agrawal (Chairman and Managing Director)
Note-30 Employee benefits :
-Defined Contribution Plan:
The company has certain contribution plans viz. provident fund. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
-Defined Benefit Plan:
Gratuity Valuation
The Gratuity scheme is a final salary defined benefit plan that provides for a lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. Benefits provided under this plan is as per the requirement of
the Payment of Gratuity Act, 1972. The scheme has been funded with LIC. Company makes provision of such gratuity liability in the books of accounts on the basis of Actuarial Valuation as per the Projected Unit Credit Method (PUC Method).
Leave Encashment Valuation (Unfunded):
During the year the company has started leave encashment of the employees and accordingly the leave encashment provision has been taken based on actuartial valuation. The Company has a defined benefit plan for leave encashment. The principle assumptions are the Discount Rate and Salary growth Rate. The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities and the salary growth rate should take account inflation seniority, promotion and other relevant factors.
(c) Capital Commitments:
Estimated amount of contracts remaining to be executed on capital accounts Rs.8672.59 Lacs (Previous Year g 7254.92 Lacs).
Note-32
During the year ended 31.03.2023, the company has raised g 2421.36 Lacs through Initial Public Offer (IPO). Specifically to meet its general corporate purpose and working capital requirements. The unutilized amount of g 1650.00 Lacs has been utilized during the period ended 31.03.2024. Given below are the details of utilization of proceeds raised through IPO -
Note-33
There are no transactions during the current and previous year for the disclosures required to be made with regard to earnings/expenditure in foreign currency and CIF value of imports.
Note-34
During the year the company has incurred g 29.70 lacs on account of Corporate Social Responsibility Activities. According to provisions of section 135 of the Companies Act,2013, the company is required to spent g 28.40 lacs based on the average net profits/loss of the previous three years. The break-up of amount spent during the year are as follows:
There was no short fall in the amount of CSR expenditure required to be spent either in current year or in earlier years. Further all the expenditure on CSR activities has been spent by the company either on its own account or by way of contribution to implementing agencies through Institutions being related parties Rs. 5 lacs, with established track record of not less than three years.
Details of loans given, investments made and guarantee given covered under Section 186(4) of the Companies Act, 2013.
Investment made are given under the respective heads. Further the company has not given any guarantee.
Loan given by the Company in respect of loans as at 31st March, 2024
During the period, the company has amortized it's Leasehold land retrospectively and accordingly g 20.60 lacs related to previous years are disclosed as prior period items in the statement of profit and loss.
Note-39
The Company was having fuel supply agreement (FSA) with Western Coalfields Limited (WCL) against which the Company had given bank guarantees to WCL against FSA for which fixed deposits amounting to S36.65 lacs has been pledged with bank. In the opinion of the management, the same is recoverable in nature.
Note-40
The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act 2013 or section 560 of Companies Act 1956 during the current year or in previous year.
Note-41
The Company has working capital facilities from banks on the basis of security of current assets & submitting quarterly Financial Follow up Report as per the terms & conditions of sanction letters. There are no material discrepancies in the amount of current assets between Financial Follow Report and books of account.
Note-42
None of the banks, financial institutions or other lenders from whom the company has borrowed funds has declared the company as a willful defaulter at any time during the current year or in previous year.
Note-43
All the transactions are recorded in the books of accounts and there was no income that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Also there was no previously unrecorded income and related assets which has been recorded in the books of account during the year.
Note-44
No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
Note-45
The company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. Further, the company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding , whether recorded in writing or otherwise, that the company shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note-46
The company does not have investment in subsidiary companies and accordingly the disclosure as to whether the company has complied with the number of layers of companies prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
Note-47
The company has neither traded nor invested in Crypto Currency or Virtual Currency during the financial year. Note-48
No scheme of compromise or arrangement has been proposed between the company & its members or the company & its creditors under section 230 of the Companies Act 2013 ("The Act") and accordingly the disclosure as to whether the scheme of compromise or arrangement has been approved or not by the competent authority in terms of provisions of sections 230 to 237 of the Act is not applicable.
Note-49
All the charges or satisfaction of which is required to be registered with Registrar of Companies(ROC) have been duly registered within the statutory time limit provided under the provisions of Companies Act 2013 and rules made thereunder, except in the following cases where no dues certificate from lender is pending for filing of satisfaction of charge with Registrar of Companies.
The Company's only identifiable reportable business segment is manufacturing of steel products. Further, the Company operates and controls its business activities within/from India. Hence disclosure of Segment-wise information is not applicable under Accounting Standard -17 "Segment Reporting" (AS-17).
Note-51
Disclosure pursuant to Regulation 34(3) and para A of Schedule V of SEBI (LODR), Regulations, 2015
not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.
Note-54
Previous year's figures are regrouped/rearranged wherever necessary.
The above loans were given for the business activities of the recipient's and have been so utilized by them.
Note-52
In the opinion of the Board, the value of realization of loans and advances and current & non current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.
Note-53
The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have
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