In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.
CONTINGENT LIABILITIES
a. Estimated amount of contracts remaining to be executed on Capital Account H593.13 Lakhs net of advance given (Previous Year H163.00 Lakhs).
b. Bank has given guarantee on behalf of the Company to various parties to the extent of H1204.16 Lakhs (Previous Year H1226.24 Lakhs.)
EMPLOYEE BENEFIT OBLIGATIONS
The disclosure required as per Indian Accounting Standard (IndAS) 19 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and as specified under section 133 of the Companies Act, 2013 (The Act) read with rule 7 of the Companies (Accounts) Rules, 2014., and based on the report generated by the actuarial valuer.
The Company has schemes (funded) for payment of gratuity to all eligible employees calculated at specified number of days of last drawn salary depending upon the tenure of service for each year of completed service subject to minimum service of five years payable at the time of separation upon superannuation or on exit otherwise. These defined benefit gratuity plans are governed by Payment of Gratuity Act, 1972
The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC, which is a defined benefit plan
(j) A description of methods used for sensitivity analysis and its Limitations:
Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. Discount rate Sensitivity Salary growth rate Sensitivity Withdrawal rate (W.R.) Sensitivity The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any. Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged..
(k) A Description of any Asset-Liability Matching Strategies.
It was informed by the company that Gratuity Benefits liabilities of the company are funded. There are no minimum funding requirements for a Gratuity Benefits plan and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities under the Plan. The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.
(l) The Effect of the Plan on the Entity's Future Cash Flows
The Company has purchased an Insurance policy to settle the Gratuity Payment to their employees. Company may do the contribution every years based on the funding valuation carry out by insurance company based on the latest data provided by Company.
37. Since the company has presented Consolidated Financial Statements, it is not required to present segment information in the standalone financial statements as per Ind AS 108- Operating Segments.
A. Capital Management
For the purpose of Company's Capital Management, capital includes Issued Equity Capital, Securities Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary objective of the Company's Capital Management is to maximize the Share Holder Value.
The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The company includes within net debt, interest bearing loans and borrowings, less cash and Cash Equivalents.
B. Financial Risk Management
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets include trade and other receivables and cash and short term deposits. The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i. Market Risk
Is the risk of loss of future earnings, fair values or cash flows that may result from change of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans & borrowings and foreign currency payables.
Company's Term Loans & Working Capital interest rates are linked to 1 year MCLR rate, reset annually. Short Term Borrowings as and when taken are governed by prevailing rates at the time of disbursement.
If the interest rates had been 1% higher / lower and all other variables held constant, the company's profit for the year ended 31st March, 2024 would have been decreased/ increased by H151.45 Lakhs.
The Company is exposed to risk with regard to foreign currency payables.
The Company is affected by the price volatility of Polymer prices. The Company enters into purchase contracts on a short term and forward foreign exchange contracts (matching the purchase contracts) are entered into to minimize price fluctuations.
ii. Credit Risk
Is the risk that a counter party will default on its contractual obligations resulting in a financial loss to the Company. It arises from cash and cash equivalents as well as credit exposure to customers.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.
Company's marketing policies & credit period is determined on the basis of segments sales history and credit worthiness of the customers. The sales affected through dealer network is normally 7-10 days credit period & in institutional sales some customers open Letters of Credit and some large corporate enjoys the credit facilities ranging 30-90 days.
iii Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring forecasts and actual cash flows.
The Company has a system of forecasting next month cash inflow and outflow and all liquidity requirements are planned.
All Long term borrowings are for a fixed tenor and generally these cannot be foreclosed.
The Company has access to various source of Short term funding and debit maturing within 12 months can be rolled over with existing lenders/new lenders, or repaid based on short term requirements. Trade and other payables are plugged as per credit terms and paid accordingly.
All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts.
43. GOVERNMENT GRANTS
Madhya Pradesh Industrial Development Corporation, a Government of Madhya Pradesh Undertaking, has approved a sum of H19.15 Crores (Rupees Nineteen Crores and Fifteen Lakhs only) as Investment Promotion Assistance out of the eligible investment of H49.02 Crores (Rupees Forty Nine Crores and Two Lakhs only). The total assistance is to be spread over a period of seven years, subject to compliance with the terms and conditions. Out of the above sum of H19.15 Crores, the State Level Empowered Committee (SLEC) has sanctioned a sum of H Nil [previous year H2.41 Crores] as Investment Promotion Assistance (IPA) under the Investment Promotion Assistance (IPA) Scheme of Government of Madhya Pradesh. The same has been reduced from the carrying cost of the eligible assets and such reduced cost of the assets are depreciated over their useful lives.
44 . The Board of Directors have recommended dividend of H0.20 per fully paid up equity share of H1/ each aggregating H99.21 Lacs for the financial year 2023-24. The actual amount will be dependent on the relevant share capital outstanding as on the record date/ book closure relevant share capital as on March 31, 2024.
45. The company has invested 788141 shares of H10 each (34.78% stake) for H78,81,410 of FP Elite Energy Private Limited. The company has recognized its share in the profit /loss of Associate Company as " Share in Net Profit /(Loss) of Associate" in consolidated Financial statements.
46. Fire broke out at the Pithampur (M.P) Plant, on 28th April, 2022. Due to robust safety measures adopted by the Company, the situation was brought under control without any casualties, but stock and other assets valued at H19.04 crores were damaged. These items were adequately insured and the Company has filed necessary insurance claim which is under process, deduction (if any) by Insurance company at the time of settlement of claim shall be Accounted for in the year of settlement. The management is confident of realization of the claim made.
47. OTHER DISCLOSURES
i. No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder
ii. The Company has not been declared willful defaulter by any bank or financial institution or other lender.
iii. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956
iv. The Company has complied the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
v. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current as well as the previous year.
vi. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source 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,
vii. The company has not received any fund from any person(s) or entity(ies), including foreign 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 whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries,
viii. The Company does not have any transaction 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)
ix. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year as well as in the previous financial year.
x. The Company has not made any contribution to any political party during the current financial year as well as in the previous financial year.
xi. The Company does not have any benami property as defined under Benami Transaction (Prohibition) Act 1988.
xii. All the immovable property held by the company are in the name of the company.
48. APPROVAL OF FINANCIAL STATEMENTS
The financial statements are approved by the Board of Directors in their meeting held on 03.05.2024.
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