3 There are no amount receivable from directors or other officers of the Company either severally or jointly with any other person. Further, no amount is receivable from firms or private companies respectively in which any director is a partner or a director or a member.
B. Terms / Rights attached to Equity Shares:
The Holding Company has only one class of equity shares having a par value of Rs. 10 per share.Each share holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.
E. No additional shares were alloted asa fully paid up by way of Bonus shares or pursuant to contract without payment being received in cash during the last five years. Further, none of the shares were bought back by the company during last five years.
Nature and purpose of reserves:General Reserve
General Reserve has been created out of profits earned by the Company in the previous years. General reserves are free reserves and can be utilised in accordance with the requirements of the Companies Act, 2013.
Securities Premium
Securities Premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of Section 52 of the Companies Act, 2013
Retained Earnings
Retained Earnings are the profits that the Company has earned till date, less any transfer to general reserves, dividends and other distributions made to the shareholders.
Other Comprehensive Income (OCI)
OCI reserve includes the net gain/loss on fair value of Investments and remeasurements of defined benefits plans.
A. Car Loan from Bank of Baroda of RS 17.85 Lakhs was taken during the FY 2021-22 & the loan is repayable in 60 monthly installment of Rs. 35430 inclusive of interest from the date of loan.The car loan is secured by hypothection of Kia Seltos.
B. The Car Loan from HDFC BANK of Rs. 9.75 lakhs was taken during the Financial Period 2021-22 and the loan is repayable in 36 EMIs of Rs. 30396/- inclusive of interest from the date of loan. This loan is secured by hypothecation of the Car Hyundai Venue.
C. The Term Loan from Kotak Mahindra Bank LTD was sanctioned during the Financial Year 2021-22 and carries floating interest rate of applicable REPO rate plus 3.3% spread p.a. (currently 9.80% p.a.) with a sanctioned Loan Amount of Rs. 392 Lakhs. The loan is repayable in 120 equatable monthly installments of amounting Rs. 461230/- starting from 10.03.2022. The term loan is secured by the Exclusive Equitable Mortgage over the entire industrial Property at Mouza - Sankua, P.S. - Ramnagar, 24 Parganas (South), Khorda, Falta P.Z. Road, J.L. No. 59 & 41, Dag No. 439, 440 & 441, including Land and Civil Structure constructed thereon, and hypothecation of Machineries procured or to be procured out of the Term Loan. Further, the loans are secured by the personal guarantee of Mr. J.S Bardia, the Managing Director of the company.
D. The Term Loan from Kotak Mahindra Bank LTD was sanctioned during the Financial Year 2021-22 and carries floating interest rate of applicable REPO rate plus 3.3% spread p.a. (currently 9.80% p.a.) with a sanctioned Loan Amount of Rs. 333.43 Lakhs. The loan is repayable in 120 equatable monthly installments of amounting Rs. 392316/- starting from 10.04.2022. The term loan is secured by the Exclusive Equitable Mortgage over the entire industrial Property at Mouza - Sankua, P.S. - Ramnagar, 24 Parganas (South), Khorda, Falta P.Z. Road, J.L. No. 59 & 41, Dag No. 439, 440 & 441, including Land and Civil Structure constructed thereon, and hypothecation of Machineries procured or to be procured out of the Term Loan. Further, the loans are secured by the personal guarantee of Mr. J.S Bardia, the Managing Director of the company.
E. The Demand Loan to meet working capital requirement due to Covid19 from Bank of Baroda was sanctioned during the Financial Year 2020-21 and carries interest @ BRLLR plus 1% i.e 7.85% with monthly rests (as per latest Sanction Letter dated 06.03.2021) with a Limit of Rs.175 Lakhs. The loan is repayable in 36 installments, after completion of 12 months of moratorium bearing Principal Amount of Rs. 4.86 Lakhs. This loan is secured by Hypothecation of stocks of Raw Material, W.I.P, Finished Goods and Spares of the co., D.P. Note, Letter of Continuing Security, Hypothecation of Book Debts upto 90 days These loans are further secured by Equitable Mortgage of Leasehold Land at Falta and structure standing thereon in the name of the company together with Plant and Machinery thereon, lien on FDR, assignment of Keymen LIP. The loan is further secured by the personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T. S. Gulgulia. (As per sanction letter dated March 2021)
F. The SME Demand Loan to meet working capital requirement due to Covid-19 was taken from Magma Fincorp Limited of Rs. 9.28 lakhs during FY 2020-21 and carries interest @ 14% with monthly rest (as per sanction letter dated 03/07/2020) repayable in 48 equal monthly installments of Rs. 31717/- after completion of 12 months of moratorium from the sanction date.
G. An unsecured Business Loan was taken from ICICI Bank during the FY 2022-23 Amounting to Rs. 60 Lakh and carries Interest Rate @ 13.75% as per sanction letter dated 30.03.2023 repayable in 24 monthly equal installments of Rs. 287912
H. There is no default as on the balance sheet date in the repayment of borrowings and interest thereon.
A. The Packing Credit from Bank of Baroda has been renewed during the financial year 2023-24 and carries floating interest @ 1 Year BRLLR @ 0.50% over 1 yr BRLLR (2.65% 6.5%) Strategic Premium (0.25%) p.a. i.e. 9.9% with monthly rests subject to Limit of Rs. 300 Lacs. The loan is secured by hypothecation of both present and future stock of Raw material, Work in progress, Finished goods, Stores and spares, Lodgement of Letter of Credit/Company Order, WTPCG of ECGC, Equitable Mortgage of Land and Building/Factory Shed. Further, the loans are secured by personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T. S. Gulgulia , D.S. Bardia(As per sanction letter dated September2023).
B. The Cash credit from Bank of Baroda was renewed during the financial year 2023-24 with a limit ? 540.00 Lakhs and carries interest rate of 1 Year BRLLR @ 2% over 1 yr BRLLR (2.65% 6.5%) Strategic Premium (0.25%) p.a. i.e. 11.40%at a floating rate with monthly rests. The loan is repayable as per term each along with interest, from the date of loan. Further, the standby Letter of Credit (SBLC) Loan has been renewesduring FY 2023-2024 with a Limit of Rs. 200.00 Lakhs This loan is secured by Hypothecation of stocks of Raw Material, W.I.P, Finished Goods and Spares of the co., D.P. Note, Letter of Continuing Security, Hypothecation of Book Debts upto 90 days These loans are further secured by Equitable Mortgage of Leasehold Land at Falta and structure standing thereon in the name of the company together with Plant and Machinery thereon and Equitable Mortgage of Factory land & Factory shed and structure owned by the company situated at Bangangar together with Plant & Machinery thereon, lien on FDR, assignment of Keymen LIP. The loan is further secured by the personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T. S. Gulgulia D.S. Bardia. (As per sanction letter dated September 2023)
C. For details of terms on current maturities of long term borrowing refer note 20
45 Segment ReportingA. Primary Segment Reporting (by Business Segment) :
(a) . The Company has three reportable segments viz. Tyre,Rim and Wheels, Footwear and Hospital Equipments which have been
identified in line with IND AS-108 on Segment Reporting, taking into account the organizational structure as well as differential risk and return of these segments. Details of products included in each segments are as under:
(b) . Inter-segment transfers are based on market rates.
Note: Terms & Conditions of Transcations with related parties: Purchase and Sales from/to related parties are made in the ordinary course of business and on terms equivalent to those that prevail in arm's length transaction with other vendors.
48 Additional information pursuant to paragraphs 5(A)(viii) of Part II of Schedule III to the Companies Act, 2013 are follows:
a) In accordance with IND AS-116 Right of use assets (ROU Assets) stand at ? 1121.97 and a corresponding lease liabilty of ? 1230.16 has been recognised in the Balance Sheet. The changes in the carrying value of right of use assets for the year ended 31st March, 2024 are disclosed in Note 3.
b) "In the statement of profit and loss for the current year, rent expenses which was earlier recognised under other expenses is now recognised as depreciation of right of use assets and interest on lease liabilities“under finance cost. The adoption of this standard did not have any significant impact on the profit for the year and earnings per share. The total cash outflows for the year ended 31st March, 2024 is ? 3533.00 ('000)."
c) The weighted average incremental borrowing rate of 11% has been applied to lease liabilities recognised in the balance sheet.
d) As per the requirement of Ind AS-107, maturity analysis of lease liabilities have been shown under maturity analysis for financial liabilities under liquidity risk (Refer Note 52).
e) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are suffi cient to meet the obligation related to lease liabilities as and when they fall due.
50 Disclosure in accordance with Ind AS-19 on employee benefits expense Gratuity and other Post-employment benefits plan:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.
The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/ separation. This is an unfunded plan.
The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the Post - retirement benefit plans .
i) These investments in Gold are not held for trading. Upon application of IndAS - 109 - Financial Instruments, the Company has chosen to measure the investments in Gold at FVTPL as the management believes that presenting fair value gains and losses relating to these investments in the standalone statement of profit and loss is a proper disclosure by the Company.
ii) The management assessed that the fair value of cash and cash equivalents, other bank balances, bank deposits, loans to employees, advance to manufacturing units, trade payables and other financial liabilities approximate the carrying amount largely due to short term maturity of these instruments.In relation to Trade Receivables, however, impairement loss based on historically obseved default rates has been provided for and carrying of Trade Receivables has been reduced by this amount. For longterm borrowings at fixed/floating rates, management evaluatesthat their fair value will not be significantly different from the carrying amount.
b Fair Value hiearchy
The fair value of financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly market between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent in all the years. Fair value of financial instruments referred to in note (a) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable entity specific inputs.
The categories used are as follows:
- Level 1: quoted prices (unadjusted) in active markets for financial instruments
- Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
52 Financial Risk Management Objectives and policies
The Company’s financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade and other receivables, cash and cash equivalents, investments and deposits. The Company also holds investments in Gold and Sovereign Gold Bond and mutual funds
The Company has a Risk Management Committee that ensures that risks are identified, measured and managed in accordance with Risk Management Policy of the Company. The Board of Directors also review these risks and related risk management policy.
The market risks, credit risks and Liquidity risks are further explained below:
1 Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTOCI investments, trade payables, trade receivables, etc.
b. Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in USD/Euro exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material.
2 Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its financial obligations as they become due. The Company monitors its risk by determining its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs. The Company manages its liquidity risk in a manner so as to meet its normal fi nancial obligations without any signifi cant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversifi ed funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fi xed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be used as and when required; such credit facilities are reviewed at regular basis.
3 Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
a. Trade receivables
A significant part of the Company’s sales are under the ‘cash and carry’ model which entails no credit risk. For others, an impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data of credit losses. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are from several industries.
53 Capital Management
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 benefit for other stakeholders, 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 light of changes to economic conditions and strategic objectives of the Company.
54 MSME DISCLOSURE in MSME FORMAT
Disclosures under the Micro, Small and Mediaum Enterprises Development Act, 2006 are provided as under for the year 2023-24 to the extend that company has received intimation from suppliers regarding their status under the Act.
c) The amount of the payments made to micro and small suppliers beyond the appointed
day during each accounting year. - -
d) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the
interest specified under MSMED Act, 2006. - -
e) The amount of interest accrued and remaining unpaid at the end of each accounting year. - -
f) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for
the purposes of disallowance as a deductible expenditure under the MSMED Act, 2006. - -
The Company is Continously taking necessary steps for receiving intimations from suppliers regarding the status under the Micro, Small & Medium Enterprises Development Act, 2006 and discolsures. relating to amounts unpaid as at the year end along with interest paid or payable, if any as requied under the said Act have been given on the basis of such intimation received till your
end.
55 Pursuant to requirement u/s 186 of the Companies Act, 2013:-
(a) Investments made and loans given have been disclosed in the Financial Statements.
(b) The Loans have been used by the borrower for business purposes only.
(c) The company has not provided guarantee in respect of any loans taken by others.
57 OTHER REGULATORY INFORMATION
i. The Company has not been declared wilful defaulter by any bank or financial institution or lender in the financial year 2023-24 and financial year 2022-23
ii. The Conmpany does not have any Benami Property. Further, No proceedings has been initiated or pending against the company in the financial year 2023-24 and financial year 2022-23 for holding any benami property under the "Benami Transactions (Prohibition)Act, 1988 (45 of 1988) and rules made thereunder.
iii. "The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms “or period of repayment to promoters, directors, KMPs and the related parties."
iv. 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.
v. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
vi. The Company has not advanced or loaned or invested 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: (a) 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 (b) 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:“(a) 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“(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries"
viii. The Company does not have any transaction 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.
ix. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
x. The Company has not filed any Scheme of Arrangements in terms of Sections 230 to 237 of the Companies Act, 2013 with any Competent Authority.
xi. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
58 Significant Accounting Judgements, Estimates & Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions, as described below, that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and are reviewed at each Balance Sheet date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the reported amounts and disclosures. Information about critical judgements in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the financial statements is as follows:
a) Employee benefit plans
The cost of the employment benefit plans and their present value are determined using actuarial valuations which involves making various assumptions that may differ from actual developments in the future. For further details refer Note 50.
b) Fair value measurement
When the fair values of financials assets and financial liabilities recorded in the standalone balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.
c) Classification of leases:
Refer note 1.III (l) for details.
d) Recognition of deferred tax assets:
Refer note 1.III (n) for details.
e) Provision for litigations and tax disputes
The likelihood of outcome of litigations and tax disputes are estimated by the management based on past experiences, legal advice, other public information etc. For further details, refer Note 41.
59 The company has reclassified/rearranged/regrouped previous year figures to conform to this year's classification, where necessary.
|