j. Provision and Contingencies
A provision is recognised if as a result of past event the company has a present legal or constructive obli¬
gation that is reasonably estimated and it is probable that an outflow of economic benefit will be required
to settle the obligation. Provisions are determined by discounting the expected cash flow at a pre-tax rate
that reflects current market assessments of the time value of the money and the risk specific to the liabili¬
ties.
A contingent liability is a possible obligation that arises from past events whose existence will be con¬
firmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of
the Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. The Company does not recognize a contingent liability
but discloses its existence in the financial statements. if material, are disclosed by way of notes to the ac¬
counts.
Contingent assets are not recognised in the financial statements, as they are dependent on the outcome
of legal or other processes.
k. Employee Benefits : Expenses and liabilities in respect of employee benefit are recorded in accordance
with Indian Accounting Standard (IND AS 19 employees benefit).
(i) Short Term Employees Benefit
Short Term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which
employees render the related service) are recognized as expenses in the period in which employee servic¬
es are rendered as per the Company's scheme based on expected obligations on undiscounted basis.
(ii) Post-Employment Benefit Plans
Under Defined Contribution Plan, the contribution is payable in keeping with the related schemes are
recognized as expenses for the year.
Under Defined Benefit Plan, the present value of the obligations is determined based on actuarial valua¬
tions using the Projected Unit Credit Method, on the basis of actuarial valuations carried out by actuary
at each Balance Sheet date. Actuarial gain /loss, if any,arising from experience adjustments and change in
actuarial assumptions are charged or credited to Other Comprehensive income in the period in which they
arise.
(iii) Other Long-Term Employee Benefits
Leave encashment/compensated absence is determined by valuations using the Projected Unit Credit
Method, on the basis of actuarial valuations carried out by actuary at each Balance Sheet date. Actuarial
gain /loss, if any, arising from experience adjustments and change in actuarial assumptions are charged or
credited to Other Comprehensive income in the period in which they arise.
l. Cash and Cash Equivalents
Cash and Cash equivalent in the balance sheet comprise cash at banks and on hand and short term depos¬
its with an original maturity of three months or less, which are subject to an insignificant risk of changes in
value.
For the purpose of statement of cash flows, cash and cash equivalents consist of cash at banks and on hand
and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an
integral part of Company's Cash Management.
m. Dividend
Annual dividend distribution to the shareholders is recognised as a liability in the period in which the div¬
idend is approved by the shareholders. Dividend payable and corresponding tax on dividend distribution
is recognised directly in equity.
n. Earnings Per Share
Basic Earnings per equity shares are calculated by dividing the net profit or loss before OCI for the period
attributable to equity shareholders by the weighted average number of equity share outstanding during
the year.
For calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to eq¬
uity shareholders and the weighted average number of share outstanding during the period are adjusted
for the effect of all diluted potential equity shares.
o. Financial Instruments
(a) Financial Assets
Initial Recognition and Measurement
All financial Assets are recognised initially at fair value plus, in case of financial assets not recorded at
fair value through profit or loss, transaction cost that are attributable to the acquisition of the financial
asset.
Subsequent measurement
(i) Financial Assets carried at amortised Cost- A Financial Assets is subsequently measured at
amortised cost, using effective interest rate (EIR) method, if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest term on the principal amount outstanding.
Amortised cost is calculated by taking into account any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance in¬
come in the statement of profit or loss. The losses arising from impairment are recognised in the
profit or loss. This category generally applies to trade receivables, cash and bank balances, loans
and other financial assets of the company.
(ii) Financial Assets at fair value through other comprehensive income- A financial asset is sub¬
sequently measured at fair value through other comprehensive income if it is held within a busi¬
ness model whose objective is achieved by both collecting contractual cash flows and selling fi¬
nancial assets and the contractual terms of the financial asset give rise on a specified date to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
The Company has made an irrevocable election for its investment which are classified as equity
instruments to present the subsequent changes in fair value in other Comprehensive income
based on its business model., Further in case where the company has made an irrecoverable elec¬
tion based on its business model for its investments, which are classified as equity instrument the
subsequent changes in fair value are recognised in other comprehensive income.
If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the
amounts from OCI to statement of profit and loss, even on sale of investment. However, the Com¬
pany may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all chang¬
es recognized in the statement of profit and loss.
(iii) Financial assets at fair value through profit or loss - A financial asset which is not classified in
any of the above categories are subsequently fair valued through profit or loss
(b) Financial Liabilities
Initial recognition and Measurement
Financial Liabilities are recognised at fair value on initial recognition and in case of loan and borrow¬
ing or payables net of directly attributable transaction costs.
Subsequent Measurement
Financial Liabilities are subsequently carried at amortized cost using effective interest rate meth¬
od. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as
through the EIR amortisation process. Amortised cost is calculated by taking into account any dis¬
count or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amorti¬
sation is included as finance costs in the statement of profit and loss.
For trade and other payables maturing within one year from the Balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.
(c) De-recognition of financial instrument
The company de-recognises the financial assets when contractual right to cash flow from financial
assets expire or it transfer the financial assets and transfer qualities for de-recognition under IND AS
109. A financial liability or a part of a financial liability is de-recognised from the company's Balance
Sheet when obligation specified in the contract is discharged or cancelled or expires.
(d) Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
p. Fair value financial instruments
The company measure financial instrument at fair value at each balance sheet date. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between mar¬
ket participants at the measurement date.
In determining the fair value of its financial instruments, the company use various method and assump¬
tion that are based on market conditions and risks existing at each reporting date. The methods used to
determine the fair value includes discounted cash flow analysis, available quoted market price and dealer
quotes and valuation report etc. The method of assessing fair value results in general approximation of
value and such value may never actually be realised.
Fair Values are categorized into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
When measuring the fair value of an asset or liability, the company uses observable market data as far as
possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is significant to the entire measurement.
q. Income Tax
The income tax expense or credit for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses. The current income tax
charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the re¬
porting period in the countries where the Company operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax reg¬
ulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts ex¬
pected to be paid to the tax authorities. Deferred income tax is provided in full, using the liability method,
on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
in the standalone financial statements. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the end of the reporting period and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and
deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
b) Note:
Segment assets and segment liabilities represent assets and liabilities of respective segment. Investments, tax
related assets/ liabilities and other assets and liabilities that cannot be allocated to a segment on reasonable
basis have been treated separately.
c) Information about Secondary Geographical Segments:
The Company has common property, plant and equipment located in India for producing/selling goods for
domestic markets. Therefore, the value of property, plant and equipment and additions thereto cannot be al¬
located to the geographical segments. Hence, the total carrying amount of segment assets and cost incurred
during the period to acquire segment assets has not been given in respect of secondary segments.
The Company's financial liabilities include Loan and borrowing, security deposits, retention money and Trade & oth¬
er payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
financial assets include investments, trade & other receivables, deposits and cash & cash equivalents.
The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks
to minimize potential adverse effects on the Company's financial performance. The Company uses derivative finan¬
cial instruments to hedge certain risk exposures. The Company does not acquire or issue derivative financial instru¬
ments for trading or speculative purposes.
The Company's activities expose it to Credit Risk, Liquidity Risk, Market Risk, and Equity Price Rise. The Company
has a Risk management policy and its management is supported by a Risk management committee that advises on
risks and the appropriate financial risk governance framework for the Company. The Risk management committee
provides assurance to the Company's management that the Company's risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Com¬
pany's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these
risks, which are summarised below.
A. Credit Risk- A risk that counterparty may not meet its obligations under a financial instrument or customer
contract, leading to a financial loss is defined as Credit Risk. The Company is exposed to credit risk from its op¬
erating and financial activities.
Customer credit risk is managed by the respective marketing department subject to the Company's established
policy, procedures and control relating to customer credit risk management. The Company reviews the credit¬
worthiness of these customers on an on-going basis. The Company estimates the expected credit loss on the
basis of past data, experience and policy laid down in this respect. The maximum exposure to the credit risk at
the reporting date is the carrying value of the trade receivables disclosed in Note 9 (Nine) as the Company does
not hold any collateral as security. The Company has a practice to provide for doubtful debts as per its approved
policy.
An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on
historical data of credit losses.
B. Liquidity Risk- A risk that the Company may not be able to settle or meet its obligations at a reasonable price
is defined as liquidity risks. The Company's treasury department is responsible for managing liquidity, funding
as well as settlement management. In addition, processes and policies related to such risks are overseen by
senior management. Management monitors the Company's net liquidity position through rolling forecasts on
the basis of expected cash flows.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use
of cash credits, Term loans among others.
C. Market Risk- A risk that the fair value of future cash flows of a financial instrument may fluctuate because of
changes in market prices is defined as Marketing Risk. Such changes in the value of financial instruments may
result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market
changes.
(i) Foreign Currency Risk- A risk that the fair value or future value of the cash flows of a forex exposure will
fluctuate because of changes in foreign exchange rates is defined as Foreign Currency Risk. The Company's
exposure to the risk of changes in foreign exchange rates relates primarily to the Company's import and
foreign currency loan/ derivatives operating activities. The Company, as per its risk management policy,
uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure.
The management monitors the foreign exchange fluctuations on a continuous basis.
Derivative instruments and un-hedged foreign currency exposure:
The Company does not enter into any derivative instruments for trading or speculative purposes.
(ii) Interest rate risk-The Company's exposure to the risk of changes in market interest rates relates primarily to
long term debt. The Company is not exposed to such risk as on 31st March, 2023.
The Company's objective when managing capital (defined as net debt and equity) is to safeguard the Company's
ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakehold¬
ers, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity
funding. The Company manages its capital structure and makes adjustments to it, in taking into consideration the
economic conditions and strategic objectives of the Company.
For the purpose of the Company's capital management, capital includes issued capital, share premium and all other
equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and
short term deposits.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches of the financial covenants of any interest bearing loans and borrowing for
reported periods.
Note No: 411| ADDITIONAL DISCLOSURES:
a. The company has no immovable property whose title deeds are not held in the name of the company and it
also has no such immovable property which is jointly held with others,.
b. The Company has not revalued its Property, Plant and Equipment accordingly disclosure as to whether the re¬
valuation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered
Valuers and Valuation) Rules, 2017 is not applicable to the Company.
c. 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 the rules made thereunder, the company for
the financial year 2022-23.
d. The Company has not taken any borrowings from banks or financial institutions on the basis of security of cur¬
rent assets during the financial year ended 31 03 2023.
e. The Company is not declared as willful defaulter by any bank or financial Institution or other lender.
f. The company has not entered into any transactions with companies which are struck off under section 248 of
the Companies Act, 2013 or section 560 of Companies Act, 1956 during the financial year ended on 31st March,
2023.
g. The Company satisfied all the charges on the assets of the Company, except for Rs. 3.89 Lakhs for which whole
amounts of Rs. 3.89 Lakhs paid to the Charge Holder (Governor of Odisha) and the Company is having "No
Objection Certificate from the Charge Holder, the Company is pursuing the charge holder to file satisfaction of
charge to Registrar of Companies.
h. During the year Company has not advanced or loaned or invested funds (either borrowed funds or share pre¬
mium or any other sources or 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.
i. During the year Company has not received any fund from any person(s) or entity(ies), including for¬
eign 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 persons or entities identified in any manner whatso¬
ever 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.
j. The Company has no such transaction which are not recorded in the books of accounts during the year and also
there are not such unrecorded income and related assets related to earlier years which have been recorded in
the books of account during the year.
k. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note No: 43
Previous year figures are regrouped and rearranged wherever necessary.
In terms of our report on even date
For AMK & Associates
Chartered Accountants
FRN: 327817E Krishna Kumar Kothari Rajesh Kumar Singhi
Director Director (Commercial) & CFO
(Din: 00233174) (Din: 01210804)
Bhupendra Kumar Bhutia
Partner
M. No. 059363
Place: Kolkata Akash Ghuwalewala
Date: 15th May, 2023 Company Secretary
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