9.1. Fixed Deposit Receipts of ^ 15.04 Lakhs (As at 31.03.23: ^ 14.20 Lakhs) has been pledged with IndusInd Bank Ltd. for obtaining bank overdraft facility.
9.2. The Company has taken Bank Guarantee of ^ 83.22 Lakhs (As at 31.03.23: ^ 31.87 Lakhs) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 18.76 Lakhs (As at 31.03.23: ^ 6.84 Lakhs) which has been given in favour of Brahmaputra Cracker & Polymer Ltd.
9.3. The Company has taken Bank Guarantee of ^ 55 Lakhs (As at 31.03.23: ^ 40 Lakhs) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 8.78 Lakhs (As at 31.03.23: ^ 8.23 Lakhs) which has been given in favour of JK Tyre & Industries Ltd.
9.4. The Company has taken Bank Guarantee of ^ 10 Lakhs (As at 31.03.23: ^ 10 Lakhs) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 2 Lakhs (As at 31.03.23: ^ 2 Lakhs) which has been given in favour of Deepak Phenolics Ltd.
9.5. The Company has taken Bank Guarantee of ^ 15 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 0.58 Lakhs (As at 31.03.23: ^ Nil) which has been given in favour of HPCL Mittal Energy Ltd.
9.6. The Company has taken Bank Guarantee of ^ 5 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd
against pledge of Fixed Deposit receipts of ^ 1 Lakh (As at 31.03.23: ^ Nil) which has been given in favour of Commissioner, Excise, Department of Prohibition, Excise and Registration, Government of Bihar.
9.7. The Company has taken Bank Guarantee of ^ 10 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 2 Lakhs (As at 31.03.23: ^ Nil) which has been given in favour of Qwik Supply Chain (P) Ltd.
9.8. The Company has taken Bank Guarantee of ^ 2 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 0.40 Lakhs (As at 31.03.23: ^ Nil) which has been given in favour of Laxmi Organic Industries Ltd.
9.9. The Company has taken Bank Guarantee of ^ 15 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 3 Lakhs (As at 31.03.23: ^ Nil) which has been given in favour of HMEL Organics (P) Ltd.
9.10. The Company has taken Bank Guarantee of ^ 5 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 1 Lakh (As at 31.03.23: ^ Nil) which has been given in favour of Marico Ltd.
9.11. The Company has taken Bank Guarantee of ^ 18.05 Lakhs (As at 31.03.23: ^ Nil) from IndusInd Bank Ltd against pledge of Fixed Deposit receipts of ^ 7.09 Lakhs (As at 31.03.23: ^ Nil) which has been given in favour of Assam Petro Chemicals Ltd.
e. Terms attached to equity shares
The Company has only one class of Ordinary Shares having a par value of ^ 10/- per share. Each holder of ordinary share is entitled to one vote per share and is entitled to dividend and to participate in surplus, if any, in the event of winding up.
f. Shareholding Pattern with respect of Holding or Ultimate Holding Company
The Company does not have any Holding Company or Ultimate Holding Company.
h. Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash for the period of five years immediately preceding the date as at which the Balance Sheet is prepared - Nil
i. No ordinary shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.
j. No Ordinary Shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.
k. No securities convertible into Equity/ Preference shares have been issued by the Company during the year.
l. No calls are unpaid by any Director or Officer of the Company during the year.
m. Disclosure of Shareholding of Promoters as at 31st March, 2024 is as follows:
16.1. The Company has availed cash credit facility, working capital term loan - NCGTC (under GECL scheme) and Bank Guarantee Limit with IndusInd Bank Ltd. and created first charge on all current assets of the company comprising of stock of raw material, WIP, Finished Goods, receivables, book debts and other current assets, on movable fixed assets of the company both present and future except other assets exclusively financed by other banks, and equitable mortgage value of office premises of the Company, office premises of Inter State Capital Markets (P) Ltd (enterprise over which Directors and relatives of Directors having significant influence), and Fixed Deposit Receipt of ^ 15.04 Lakhs has been pledged with IndusInd Bank Ltd. and also the personal guarantee of Mr. Sanjay Jain, Director of the Company.
16.2. Loan taken from Tata Capital Financial Services Ltd. is secured against pledge of equity shares as given in Note No. 4.1.
17.1. Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED, 2006) have
a. Principal amount outstanding: ^ 32.43 Lakhs (As at 31.03.2023: ^ Nil)
b. Interest due thereon: ^ Nil (As at 31.03.2023: ^ Nil)
c. Interest paid by the Company in terms of Section 16 of MSMED 2006 alongwith amount of the payment made to the suppliers beyond the appointed day during the year: ^ Nil (As at 31.03.2023: ^ Nil)
d. Interest due and payable for the period of delay in making payment (which has been paid but beyond the appointed day during the year) but without adding the interest specified under MSMED 2006: ^ Nil (As at 31.03.2023: ^ Nil)
e. Interest accrued and remaining unpaid: ^ Nil (As at 31.03.2023: ^ Nil)
f. Further interest remaining due and payable in the succeeding years: ^ Nil (As at 31.03.2023: ^ Nil)
17.2. Trade Payables ageing Schedule (Refer Note No. 34)
30. Disclosures as per Section 186(4) of the Companies Act, 2013:
Details of Investments made are given under the respective heads.
During the year, the Company has not granted any loans and advances (in the nature of loan).
31. Based on the information available with the company, the balance due to Micro and Small enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) is ^ 32.43 Lakhs (P.Y. ^ Nil). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.
36. Additional Regulatory Information
a The Company has used the funds borrowed from banks for the specific purpose for which it was taken at the balance sheet date.
b. All the Title deeds of immovable properties are held in the name of the company during the year.
c. The Company do not have any investment property during the year.
d. The company has not revalued its Property, Plant and Equipments during the year.
e. The company has not revalued its intangible assets during the year.
f. The company has not granted any loans or advances (in the nature of loans) to Promoters, Directors, KMPs and the related parties during the year.
g. The Company do not have any Capital Work-in-Progress during the year.
h. The Company do not have any Intangible Asset under Development during the year.
i. The Company has neither any Benami property during the year nor any proceeding has been initiated or pending against the Company for holding any Benami property during the year.
j. The quarterly returns or statements of current assets filed by the Company with banks are not in agreement with the books of accounts. The reconciliation statement alongwith the reasons is as follows:
k. The Company is not declared a wilful defaulter by any borrowings from bank or financial institution or other lender during the year.
l. Relationship with Struck off Companies
The Company do not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
m. Registration of charges or satisfaction with Registrar of Companies
i. Induslnd Bank Ltd has not yet provided the signed copy of Form CHG 1 for creation of charge on Fixed Deposits amounting to ^ 44.61 Lakhs (as on 31.03.2024) against the Bank Guarantees amounting to ^ 262.88 Lakhs (as on 31.03.2024) issued to various parties. Therefore, the Company is unable to file the said form with Registrar of Companies for creation of charges on above assets.
ii. The Company has taken continuous action for filing of satisfactions of charges in respect of which borrowings has been repaid. Details of satisfactions of charges yet to be file with Registrar of Companies beyond the statutory period are mentioned as below:
n. Compliance with number of layer of companies
The company do not have any subsidiaries as per 2(87) of the Companies Act, 2013 during the year. Therefore, the said disclosure is not applicable.
o. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
p. Undisclosed Income
The Company do not have any transactions which is not 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.
q. Corporate Social Responsibility
The company is not covered under section 135 of the Companies Act, 2013, therefore, disclosure in respect of Corporate Social Responsibility activities is not applicable.
r. Utilisation of Borrowed funds and share premium:
i. The Company has not advanced or loaned 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 (whether recorded in writing or otherwise) that the Intermediary shall, whether, directly or indirectly lend or invest in other persons/enti'ti'es identified in any manner whatsoever by or on behalf of the Company ('ultimate beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
ii. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) during the year, 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.
s. Details of Crypto Currency or Virtual Currency
The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year.
38. CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital 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.
The Company manages its capital structure and makes adjustments 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 Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.
39. FINANCIAL INSTRUMENTS i. Valuation
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a) The fair value of investment in quoted Equity Shares is measured at quoted price or NAV or cost as available with the management.
b) The fair value of investment in unquoted Equity Shares is measured at rate reflecting in demat statement as available with the management or at cost as no information is available with the management.
c) The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
Note:
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 are valued at rate reflecting in demat statement as available with the management or at cost as no information is available with the management.
ii. Foreign Currency Risk : N.A.
iii. Interest Rate Risk:
The following table shows exposure of the Company's borrowings to interest rate changes at the end of the reporting period:
v. Credit Risk:
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due, causing financial loss to the company. Credit risk arises from company's activities in investments and outstanding receivables from customers.
The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. Dues from customers to whom sales are made on credit are generally recovered within credit days allowed to the customer.
v. Liquidity Risk:
Liquidity risk arises from the Company's inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities (^ 186.29 Lakhs as on 31st March 2024; ^ 320.24 Lakhs as on 31st March 2023). Company accesses financial markets to meet its liquidity requirements.
The Company's liquidity is managed centrally with operating units forecasting their cash and liquidity requirements. Treasury pools the cash surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in the market.
40. Related Party Transaction
Related party disclosure as identified by the management in accordance with the Accounting Standard(AS) 18 on "Related Party Disclosures" are as follows:
A. Related party relationship
i. Key Managerial Personnel (KMP):
a. Shanti Lal Jain, Whole Time Director
b. Sanjay Jain, Managing Director
c. Pooja Sarda, Independent Director
d. Nand Kumar Bhatter, Independent Director
e. Sunil Shah, Independent Director
f. Malay Das, Chief Financial Officer
g. Nikita Mohta, Company Secretary (Resigned w.e.f. 31.01.2023)
h. Rashmi Sharma, Company Secretary (Appointed w.e.f. 01.02.2023)
ii. Relatives of Key Managerial Personnel (KMP):
a. Gunmala Devi Jain
b. Amann Jain
c. Siddhant Jain
iii. Enterprises over which KMP or relatives of KMP exercise significant influence:
a. Inter State Capital Markets (P) Ltd
b. Inter State Liquid Logistics Ltd
c. Fluid Truckage (P) Ltd (Seized to a related party w.e.f 8th June, 2023).
B. The company has adopted Projected Unit Credit Method for Gratuity. Every employee who has completed five years or more of services gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act ,1972. The aforesaid scheme is funded with LIC. The liability of Gratuity is recognised on the basis of actuarial valuation carried out by Dr. R. Kannan. The following table summarizes the components of net benefit expenses recognised in Statement of Profit & Loss, etc:
42. Contingent Liabilities (to the extent not provided for)
i) Bank Guarantee
a. The Company has taken Bank Guarantee of ^ 83.22 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 18.76 Lakhs which has been given in favour of Brahmaputra Cracker & Polymer Ltd.
b. The Company has taken Bank Guarantee of ^ 55 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 8.78 Lakhs which has been given in favour of JKTyre & Industries Ltd.
c. The Company has taken Bank Guarantee of ^ 10 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 2 Lakhs which has been given in favour of Deepak Phenolics Ltd.
d. The Company has taken Bank Guarantee of ^ 15 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 0.58 Lakhs which has been given in favour of HPCL Mittal Energy Ltd.
e. The Company has taken Bank Guarantee of ^ 5 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 1 Lakh which has been given in favour of Commissioner, Excise, Department of Prohibition, Excise and Registration, Government of Bihar.
f. The Company has taken Bank Guarantee of ^ 10 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 2 Lakhs which has been given in favour of Qwik Supply Chain (P) Ltd.
g. The Company has taken Bank Guarantee of ^ 2 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 0.40 Lakhs which has been given in favour of Laxmi Organic Industries Ltd.
h. The Company has taken Bank Guarantee of ^ 15 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^3 Lakhs which has been given in favour of HMEL Organics (P) Ltd.
i. The Company has taken Bank Guarantee of ^ 5 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 1 Lakh which has been given in favour of Marico Ltd.
j. The Company has taken Bank Guarantee of ^ 18.05 Lakhs from Induslnd Bank Ltd against pledge of Fixed Deposit receipts of ^ 7.09 Lakhs which has been given in favour of Assam Petra Chemicals Ltd.
k. The Company has taken Bank Guarantee of ^ 7.50 Lakhs from Induslnd Bank Ltd which has been given in favour of Indian Oil Corporation Ltd.
l. The Company has taken Bank Guarantee of ^ 7.50 Lakhs from Induslnd Bank Ltd which has been given in favour of Bharat Petroleum Corporation Ltd.
ii) Income Tax
a. The Company has received demand amounting to ^ 0.02 Lakhs from Income Tax Department relating to assessment of T.D.S from F.Y. 2008-09, and F.Y. 2023-24 against which Company will file necessary rectification within appropriate time.
b. The company has received demand amounting to ^ 95.42 Lakhs from Income Tax Department relating to A.Y. 2017-18 u/s 143(3) of the Income Tax Act, 1961 against which Company has filed an appeal with CIT (Appeal - 3), Kolkata. However, ^ 96.95 Lakhs has been paid by the company against the said demand. The Company expects to sustain its position on ultimate resolution of the appeals.
44. The figures for the previous year have been rearranged and/or regrouped wherever considered necessary.
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