r) Provisions and Contingencies
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists, and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.
If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liabilities. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A disclosure for contingent liabilities is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as Contingent Liabilities.
s) Exceptional Items
An ordinary item of income or expense which by its size, nature, occurrence or incidence requires a disclosure in order to improve understanding of the performance of the Company is treated as an exceptional item in the standalone statement of profit and loss.
t) Event after Reporting Date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
All the events occurring after the balance sheet date up to the date of the approval of the standalone financial statement of the Company by the board of directors on May 24, 2024, have been considered, disclosed and adjusted, wherever applicable, as per the requirement of Indian Accounting Standards.
u) Cash Flow Statements
Cash flows statements are reported using the method set out in the Ind AS - 7, “Cash Flow Statements”, whereby the net profit / (loss) before tax is adjusted for the effects of the transactions of a non - cash nature, any deferrals or accrual of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
v) Cash and Cash Equivalents
Cash and cash equivalents include cash and cheques-in-hand, balances with banks, and demand deposits with banks where the original maturity is three months or less and other short - term highly liquid investments net of bank of overdrafts which are repayable on demand as these from an integral part of the Company’s cash management.
1.5 RECENT ACCOUNTING PRONOUNCEMENT
Ministry of Corporate Affairs (“the MCA”) notifies new standards or amendments to the existing standards under the Companies (Indian Accounting Standard) Rules as issued from time to time. For the period March 31, 2024, the MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
1.6 KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Company’s standalone financial statements is in conformity with the Ind AS, which requires the Company’s managements to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of the assets, liabilities, incomes, and expenses (including the contingent liabilities) and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities effected in future periods. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revision to accounting estimates is recognized in the period in which the estimates are revised and in any future periods affected.
The key assumptions concerning the future and other key resources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amount of the assets and liabilities within the next financial year, are described as follow:
a) Income Tax: The Company’s tax jurisdiction is in India. Significant judgments are involved in estimating budgeted profits for the purpose of paying advance tax, determining the income tax provisions, including the amount expected to be paid / recovered for uncertain tax provisions (Refer “Note No. 20”).
b) Property, Plant and Equipment: Property, plant and equipment represent a significant proportion of the assets base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company assets are determined by the Company’s management at the time the assets are acquired and reviewed periodically, including at each financial year end. The useful lives of each of these assets are based on the life prescribed in Schedule II to the Companies Act, 2013 or based on the technical estimates, taken into the account the nature of the assets, estimated usage, expected residual values and operating conditions of the assets. The useful lives are based on historical experience with the similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the assets.
c) Defined Benefits Obligations: The costs of providing gratuity and other post-employment benefits are charged to the standalone statement of profit and loss in accordance with Ind AS -19, “Employee Benefits” over the period during which benefit is derived from the employees’ services. It is determined by using the actuarial valuation and assessed on the basis of assumptions selected by the Company’s management. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates. The same is disclosed in “Note No. 44”, “Employee Benefits”. Due to complexities involved in the valuation and its long-term in nature, a defined benefit obligation is highly sensitive to change in these assumptions. All assumptions are reviewed at each balance sheet date by the Company’s Management.
d) Fair Value measurements of Financial Instruments: When the fair values of financial 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 cashflow model, which involves various judgments and assumptions. The input to these models is taken from observable markets wherever possible, where this is not feasible, a degree of judgment is required in establishing fair value. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of the financial instruments.
e) Recoverability of Trade Receivables: Judgment is required in assessing the recoverability of overdue trade receivables and determining whether a provision is against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payments.
f) Provisions and Contingent Liabilities: The Company’s management estimates the provision that have present obligation as a result of past events, and it is probable that outflow of resources will be required to settle the obligation. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are disclosed when there is possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the controls of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount can not be made. Contingent assets are neither recognized nor disclosed in the standalone financial statements.
g) Impairment of Financial and Non-Financial Assets: The impairment provision of financial assets is based on the assumptions about the risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s history, existing market conditions as well as forward looking estimates at the end of the reporting period.
In case of non-financial assets, the Company estimates asset’s recoverable amount, this is higher of an assets or cash generating units (CGU) fair value less the cost of disposal and the value-in-use. In assessing the value-inuse, the estimated future cash flows are discounted using the pre-tax discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. In determining the fair value less cost of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is being used.
h) Recognition of Deferred Tax Assets and Liabilities: Deferred tax assets and liabilities are recognized for deductible temporary differences and unused tax losses or unused tax credit for which there is probability of utilization against the future taxable profits. The Company uses judgments to determine the amount of deferred tax that can be recognized, based upon the likely timing and the level of future taxable profits and business developments.
i) Amortization of Leasehold Land: The Company’s lease assets primarily consist of lease for industrial land. The lease premium is the fair value of land paid by the Company to the respective authorities at the time of acquisition and there is no liability at the end of the lease term. The lease premium paid by the Company has been amortized over the lease period on systematic basis and the same has been classified under Ind AS - 16, “Property, Plant and Equipment” and therefore, the requirements of both the Ind AS - 116 and Ind AS - 17, as to the period over which, and the manner in which, the right of use assets (under Ind AS - 116) or the assets arising from the finance lease (under Ind AS - 17) amortized as similar.
b) Terms / Rights attached to Equity Shares
i) The Company has only one class of shares - referred to as - equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share.
ii) As per the Companies Act, 2013, in the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all the preferential amounts. However no such preferential amounts exists currently. The distribution will be in the proportion to the number of equity shares held by the Shareholders.
iii) The Company declares and pays the dividend in Indian Rupees ('). The payment of dividend is also made in foreign currency to the shareholders outside India. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in their ensuing Annual General Meeting (AGM), except in case of interim dividend.
a) Capital Reserve: Capital reserve was created on the capital incentive received from sales tax department for the purpose of setting up the manufacturing plants in the State of Maharashtra. The incentive has attached certain terms and conditions, non-compliance of those terms and conditions would render the forfeiture of the incentive.
b) Securities Premium: Securities premium account is used to record the premium on issue of equity share. These reserve is mainly utilized in accordance with the provisions of the Companies Act, 2013.
c) Remeasurement of Defined Benefits Plan: This represents the cumulative gains and losses arising on the remeasurements of the defined benefits plan in accordance with the Ind AS - 19 that have been recognised in Other Comprehensive Income.
d) Equity Instruments through Other Comprehensive Income: This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.
e) Retained Earnings: Retained earning reserves represents the undistributed accumulated earnings of the Company as at the date of standalone financial statements.
a) Term loan from Axis Bank Limited are secured by first pari-passu charge on both present and future property, plants and equipments of the Company and these credit facilities are further secured by way of first pari-passu charge on immovable property, plants and equipments including the equitable mortgage on factory land and building situated at Survey No. 43, 55/1, 56/1 and 56/2, Mouza Maregaon, Distt. Bhandara and are further secured by way of equitable mortgage on land and building sitauted at Survey No. 1016, Mouza and Grampanchayat Neeri, PC No. 21, Mohadi, Distt. Bhandara and also further secured by way of Plot No. B - 28, Industrial Area, MIDC, Behind Mahindra and Mahindra, Hingna Road, Nagpur (M.H.) - 440016. These credit facilities are further secured by irrevocable personal guarantees of two of the Directors, Shri Arun Bhandari and Shri Lalit Bhandari.
b) Term loan from Axis Bank Limited are obtained to meet the liquidity mismatch arising out of the COVID - 19 and the same has to be repaid on monthly installments commenced from March 2024, and has to be repaid full on or before March 2027.
c) Term loan from Citi Bank Limited are secured by first pari-passu charge on both present and future property, plants and equipments of the Company and these credit facilities are further secured by way of first pari-passu charge on immovable property, plants and equipments including the equitable mortgage on factory land and building situated at Survey No. 43, 55/1, 56/1 and 56/2, Mouza Maregaon, Distt. Bhandara and are further secured by way of equitable mortgage on land and building sitauted at Survey No. 1016, Mouza and Grampanchayat Neeri, PC No. 21, Mohadi, Distt. Bhandara and also further secured by way of Plot No. B - 28, Industrial Area, MIDC, Behind Mahindra and Mahindra, Hingna Road, Nagpur (M.H.) - 440016. These credit facilities are further secured by way of demand promissory note of ' 2,500 Lakhs and are further secured by irrevocable personal guarantees of two of the Directors, Shri Arun Bhandari and Shri Lalit Bhandari.
d) Term loan from Citi Bank Limited has been obtained for setting up the solar power plant at the Company’s existing plant location situated in Shahpur, Bhandara and the same has been repaid on equated quarterly installments commencing from March 2025 and has to be repaid full on or before March 2028.
e) Term loan from related parties are unsecured and are repayable on demand basis.
Nature of Securities
a) Working capital loan from the Axis Bank Limited are secured by first pari-passu charge on the hypothecation of entire inventories, book debts, receivables and other current assets with the Company presently held and held in the near future and are further secured by way of equitable mortgage at the factory land and building situtated at Plot No. B -28, Industrial Area, MIDC, Hingna Road, Behind Mahindra and Mahindra, Nagpur and are further secured by way of equitable mortgage factory land and building situated at 1016, Mouza and Grampanchayat Neeri, Mohadi, Bhandara and are further secured by way of equitable mortgage of land and building situated at Survey No. 43, 55/1, 56/1 and 56/2, Mouza Maregaon, Bhandara. These credit facilities are also further secured by irrevocable personal guarantees of two of the Directors, Shri Arun Bhandari and Shri Lalit Bhandari.
b) Working capital loan from the ICICI Bank Limited are secured by first pari-passu charge on the hypothecation of entire inventories, book debts, receivables and other current assets with the Company presently held and held in the near future and are further secured by way of equitable mortgage at the factory land and building situtated at Plot No. B -28, Industrial Area, MIDC, Hingna Road, Behind Mahindra and Mahindra, Nagpur and are further secured by way of equitable mortgage factory land and building situated at 1016, Mouza and Grampanchayat Neeri, Mohadi, Bhandara and are further secured by way of equitable mortgage of land and building situated at Survey No. 43, 55/1, 56/1 and 56/2, Mouza Maregaon, Bhandara. These credit facilities are also further secured by irrevocable personal guarantees of two of the Directors, Shri Arun Bhandari and Shri Lalit Bhandari.
c) Working capital loan from Citi Bank Limited are secured by first pari-passu charge hypothecation of entire inventories, book debts, receivable and other current assets with the Company presently held and held in near future and these credit facilities are further secured by way of first pari-passu charge on immovable property, plants and equipments including the equitable mortgage on factory land and building situated at Survey No. 43, 55/1, 56/1 and 56/2, Mouza Maregaon, Distt. Bhandara and are further secured by way of equitable mortgage on land and building sitauted at Survey No. 1016, Mouza and Grampanchayat Neeri, PC No. 21, Mohadi, Distt. Bhandara and also further secured by way of Plot No. B - 28, Industrial Area, MIDC, Behind Mahindra and Mahindra, Hingna Road, Nagpur (M.H.) - 440016. These credit facilities are further secured by way of demand promissory note of ' 2,500 Lakhs and are further secured by irrevocable personal guarantees of two of the Directors, Shri Arun Bhandari and Shri Lalit Bhandari.
iii) Financial Instruments measured at Amortized Costs
The carrying amount of financial assets and financial liabilities measured at amortized costs in the standalone financial statements are a reasonable approximation of the fair value since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
38B - Financial Risk Management - Objectives and Policies
The Company’s principal financial assets mainly comprise of investments, security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations. The Company’s financial liabilities mainly comprise the borrowings in foreign as well as Indian currency, retention money, trade payable and other payables. The main purpose of these financial liabilities is to finance the Company’s business operations and to provide guarantees to support its operations.
The Company is exposed to Market Risk, Credit Risk and Liquidity Risk from its financial instruments. The Board of Directors (“the Board”) oversees the management of these financial risks. The risk management policy of the Company formulated by the Company’s management and approved by the Board of Director’s, which states the Company’s approached to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company’s managements, the structure for managing the risk and the framework for risk management. The framework seeks to identify, assess and mitigate the financial risks in order to minimize potential adverse effects on the Company’s financial performance. The Board has taken necessary actions to mitigate the risks identified on the basis of information and situations present.
The following disclosures summarize the Company’s exposure to financial risks and the information regarding the use of derivatives employed to manage the exposure to such risks. Quantitative sensitivity analysis has been provided to reflect the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of the Company.
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 the market prices. Market risk comprises three types of Risk: “Interest rate risk, Currency risk and Other price risk”. Financial instruments affected by the market risk include loans and borrowings in foreign as well as domestic currency, deposits, retention money, trade and other payables and trade receivables and derivatives financial instruments.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash outflows of a financial instrument will fluctuate because of changes in the market interest rates. An upward movement in the interest rate would adversely affect the borrowing costs of the Company. The Company is exposed to long-term and short-term borrowings. The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate balance. The Company has not used any interest rate derivatives.
c) Other Price Risk-
Other price risk is the risk that the fair value of a financial instruments will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in quoted equity instruments. The Company is exposed to price risk arising mainly from investments in quoted equity instruments recognized at FVTOCI. As at March 31, 2024, the carrying value of such quoted equity instruments recognized at amounts FVTOCI amounts to NIL (March 31, 2023'00.38 Lakhs). The details of such investments in equity instruments are given in “Note No. 5”.
The Company is mainly exposed to changes in the market traded rate of its investments in quoted equity instruments recognized in other comprehensive income. A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:
If the equity prices had been higher / lower by 10% from the market price existing as at March 31, 2024, Other comprehensive income (OCI) for the period ended would increase by ' NIL (Prev Year ' 00.03 Lakhs) and decrease by ' NIL (Prev Year ' 00.03 Lakhs) respectively with the corresponding increase / decrease in total equity of the Company as at March 31, 2024. 10% represents the management’s assessment of reasonably possible changes in equity prices.
2) Credit Risk
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial losses to the Company. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks and other financial assets such as other receivables with the Company.
The Company has adopted a policy of only dealing with counter parties that have sufficiently high credit ratings. The Company’s exposure and credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions is reasonably spread amongst the counterparties.
Credit risk arising from term deposits and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognized financial institutions with high credit rating assigned by the international credit rating agencies.
The average credit period on sale of products ranges from 80 to 90 days. Credit risk arising from trade receivable is managed in accordance with the Company’s established policy, procedures and control relating to customer credit risk management. The credit quality of a customer is assessed based on detailed study of creditworthiness and accordingly individual credit limits are defined / modified. The concentration on credit risk is limited due to the fact that, the customer base is large. There are very few of the customers, which represents more than 10% of its total balance of trade receivable. For trade receivables, as a practical expedient, the Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward-looking estimates. The provision matrix at the end of reporting period as follows:
3) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.
The Company has an established liquidity risk managements framework for managing its short-term, medium-term and long-term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in the cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
The Company believes that its liquidity positions {As At March 31, 2024 ' 104.84 Lakhs (Prev Year ' 255.90 Lakhs)}, anticipated future internally generated funds from operations, and its fully available revolving undrawn credit facilities will enable it to meet its future known obligations in the ordinary course of business. However, if liquidity needs were to arise, the Company believes it has access to financing arrangements, value of unencumbered assets, which should enable it to meet its ongoing capital, operating, and other liquidity requirements.
The liquidity position of the Company mentioned above, includes:
i) Cash and Cash Equivalents as disclosed in the Cash Flows Statements
ii) Current / non - current term deposits as disclosed in the other financial assets
The Company’s liquidity management process as monitored by the management, includes:
i) Day-to-day funding, managed by monitoring future cash flows to ensure that requirements can be met.
ii) Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.
iii) Maintaining diversified credit lines.
The below table analysis shows the financial liabilities of the Company in the relevant maturity grouping based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:
38C - Capital Management
The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles.
a) Maintain the financial strength to ensure BBB stable ratings domestically and investment grade ratings internationally.
b) Ensure financial flexibility and diversify the source of financing and their maturities to minimize liquidity risk while meeting its investment requirements.
c) Ensure sufficient liquidity is available (either through cash and cash equivalents, investments or committed credit facilities) to meet the needs of the business.
d) Minimize the finance costs while taking into consideration current and future industry, market and economic risks and conditions.
e) Safeguard its ability to continue as going as a going concern.
f) Leverage optimally in order to maximize shareholders’ returns while maintaining strength and flexibility of the Balance Sheet.
This framework is adjusted based on underlying macro-economic factors affecting the business environment, financial market conditions and interest rates environment.
The Board of Directors of the Company has primary responsibilities to maintain a strong capital base and reduce the cost of capital through a prudent management of deployed fund and leveraging in domestic and international financial market, so as to maintain investors, creditors and market confidence and to sustain future development of the business.
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
As at March 31, 2024 and March 31, 2023, the Company has only one class of equity shares and has low debts. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividends or reinvestments into business based on its long-term financial plans.
The Company manages its capital on the basis of the Net Debt to Equity Ratio which is Net Debt (Total Borrowings net of Cash and Cash Equivalents) divided by total equity.
43 Segment Reporting
The segment reporting of the Company has been prepared in accordance with Ind AS - 108, “Operating Segments” {specified under the section 133 of the Companies Act, 2013 read together with Companies (Indian Accounting Standard) Rule, 2015, as amended, time to time}. For the Company’s management purpose, the Company is organized into the business unit based on its products and services and has four reportable segment. Opearting Segments disclosure are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM) are as follows:
The Board of Directors of the Company monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performace assessments. Segment performance is evaluated based on profit or loss and is measured consistently with profit and loss in the standalone financial statements. Operating Sgement have been identified on the basis of the nature of products / services and have been identified as per the quantitative criteria sepcified in the Ind AS.
Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprises as a whole and are not allocable to a segments on reasonable basis have been disclosed as “unallocable”.
44 Employee Benefits 1 Post Employment Benefits
i) Defined Benefit Gratuity Plan (Unfunded)
The Company has defined benefits gratuity plan for its employees, which requires contribution to be made to a separately administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five year of services are only entitled to the specific benefits. The level of benfits provided depend on the member’s length of service and salary at retirement age.
ii) Defined Benefit Pension Plan (Unfunded)
The Company operates a defined benefits pension plan for certain specified employees and the same is payable upon if the employee satisfying certain terms and conditions attached to them, as approved by the Board of Directors of the Company.
iii) Defined Benefit Post Retirement Medical Benefit Plans (Unfunded)
The Company operates a defined benefits post-retirement medical benefits plan for certain specified employees and the same is payable upon if the employee satisfying the certain terms and conditions attached to them, as approved by the Board of Directors of the Company.
The most recent actuarial valuation of the plan assets and the present value of defined benefit obligation were carried out as at March 31, 2024 by Mr. Ashok Kumar Garg, Fellow of Institute of Actuaries of India. The present value of defined benefits obligation and the related current service cost were measured by using the “Projected Unit Credit Method”.
The following tables summarise the components of defined benefits expense recognized in the Statement of Profit and Loss / Other Comprehensive Income and amount recognized in the Balance Sheets for the respective plans:
49 Corporate Social Responsibility
As per the Section 135 of the Companies Act, 2013, a company, meeting its applicability thershold, need to spend at least 2% of its average net profit for the immediately preceeding three financial year on Corporate Social Responsibilities (CSR) Activities. The area of CSR Activity are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR Committee has been formed as per the requirement of the Companies Act, 2013. The funds has been adminstrated by the said Committee, once it is allocated to the Corpus for the purpose of CSR activities, prescribed under Schedule VII of the Companies Act, 2013.
a) Corporate Social Responsibilities required to be spent as per Section 135 of the Companies Act, 2013 read with the Schedule VII thereof, the Company during the reporting period ended at March 31, 2024 is ' 51.88 Lakhs (Prev Year ' 52.29 Lakhs).
b) Expenditure related to Corporate Social Responsibilities is ' 51.88 Lakhs out of those ' NIL commitments made previous financial period spent during the current financial period (Prev Year March 31, 2023'59.05 Lakhs).
The Board of Director’s of the Company has not declared any interim dividend during the current reporting period and previous reporting period. The Board of Directors, at its meeting held on May 27, 2023 had proposed a final dividend of ' 1.00 (One Rupee Only) per equity shares of the face value of ' 10 each for the financial period ended March 31, 2023. The proposal was approved by the shareholders at the Annual General Meeting (AGM) hold on August 26, 2023 and the same has resulted a cash outflow of amounting to ' 254.03 Lakhs..
Proposed Dividend
The Board of Director’s at their meeting held on May 24, 2024 have recommended a payment of final dividend of ' 1.50 per Equity Share of the Face Value of ' 10 per Equity Share i.e. 15% of the Face Value of Equity Share for the financial period ended at March 31, 2024. The Company has proposed ' 381.04 Lakhs as a final dividend subject to the approval of shareholders at their ensuing Annual General Meeting (AGM) of the Company, hence it is not recognized as a “Liabilities” in the standalone financial statements.
51 Details of Hedge and Unhedged Exposures in Foreign Currency Denominated Monetary Items A) Exposure in Foreign Currency - Hedged
The Company enters into forward exchange contracts to hedge its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any of the derivative instruments for trading and speculation purposes during the reporting period and previous reporting period. The forward exchange contracts used for hedging of the foregin currency exposures and their outstanding as at the end of the reporting period are as follows:
53 The Standalone Financial Statements are approved for issue by the Audit Committee at its meeting held on May 24, 2024, and by the Board of Directors on their meeting held on May 24, 2024.
54 Previous years audited figures has been regrouped / recasted / rearranged wherever necessary to make them comparable for the purpose of preparation and presentation of Standalone Financial Statements..
SIGNATURE TO THE NOTE “1” TO NOTE “54”
MATERIAL ACCOUNTING POLICIES 1
THE ACCOMPANYING NOTES ARE FORMING INTEGRAL PART OF THE FINANCIAL STATEMENTS
AS PER OUR REPORT OF EVEN DATE ATTACHED FOR AND ON BEHALF OF THE BOARD
For MANISH N JAIN & CO. Sd/- Sd/-
Chartered Accountants ARUN BHANDARI LALIT BHANDARI
FRN No.: 138430W Managing Director Director
DIN : 0008901 DIN : 00010934
Sd/- Sd/- Sd/-
ARPIT AGRAWAL SHARAD KHANDELWAL MADHURA UBALE
Partner Chief Financial Officer Company Secreatry
Membership No. 175398
Place: Nagpur Place: Nagpur Place: Nagpur
Dated: May 24, 2024 Dated: May 24, 2024 Dated: May 24, 2024
UDIN No.: 24175398BKAQOC8250
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