Note 4.1 Out of above Investments owned by the company, some of the scripts held in physical form have been transferred to Investor Education & Protection Fund (IEPF) in accordance with the provisions of section 124 & 125 of the Companies Act, 2013 read with Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Concerned physical scrips have been mis-placed by the company. The company is in process of re-claiming the same from Investor Education & Protection Fund (IEPF) in accordance with the rules and regulation of the said fund. Dividend on those Scrips accrued has been transferred to Investor Education and Protection Fund (IEPF) and the company has not received/accrued the dividend amount on these scripts, the same will be accounted for after getting the same from IEPF.
Note 12.2 Terms/ Rights attached to Equity Shares
“1. The company has only one class of Equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
2. In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
3. During the Financial Year 2022-23 company has made right Issue of Equity Shares of 3446325 number of equity shares @139 including per share premium of Rs. 129 per share having face value of Rs. 10/- each under the right issue scheme. Consequently, the issued & paid up share capital of the Company stands increase to Rs. 6,89,26,500 w.e.f 21st February, 2023 and the proceeds of Right issue has been used for the purpose for which they have been raised.
Security Premium: This reserve is used to record the premium on issue of shares. The same can be utilized in accordance with the provisions of the Act and Right issue Expenses has been netted off from the Security Premium amount.
General Reserve : It represents the actuarial gain or loss arising from the fair value measurement of investments made in Shares
Retained Earnings: It represents the surplus amount available in profit and loss as retained earnings and Gain/ Loss on Sale of Investment on which Irrevocable Option taken for Designated at FVTOCI for Long Term Strategic Reason. The reserve can be distributed/ utilised by the company in accordance with the Companies Act,2013.
Other Comprehensive Income: It represent the acturial gain or loss arising from the remeasurement of defined benefit obligation and fair value measurement of investments.
*Quantitative data mentioned in statement of changes in equity “
(a) Working capital Term loan from HDFC bank carries Interest @ 9.25% is secured by mortgage on property situated at village Bedla, District Udaipur and with respective Plant & Machinery and personal guarantee of some of directors of the company and the Loan is repayable in 49 monthly installments.
(b) Term Loan For Third line of Quartz (Taanj) fom HDFC Bank Carries Interest @ 8.52% is secured by mortgage on property situated at village Bedla, District Udaipur and with respective Plant & Machinery and personal guarantee of some of directors of the company and the Loan is repayable in 67 monthly installments.
(c) Term Loan For Quartz (Taanj) fom HDFC Bank Carries Interest @ 8.50% is secured by mortgage on property situated at village Bedla, District Udaipur and with respective Plant & Machinery and personal guarantee of some of directors of the company and the Loan is repayable in 63 monthly installments.
(d) Loans from Axis Bank for Vehicles carries interest @ 8.11%. The loans are repayable in 60 monthly installments and the loans are secured by hypothication of respective assets.
(e) Loans from Sai Baba finvest Pvt. Ltd. (NBFC) carries interest @ 9%.
The above loan from HDFC Bank which carries Interest @ SOFR 150 bps is secured by way of Hypothecation of Inventory i.e. Raw Materials, Stock in Process, Finished Goods, Stores & Spares and Book Debts,bill whether documentary or clean,outstanding monies,receivables, both present and future, equitable motgage of properties & the facility is subject to annual renewal and it also carries an unconditional and irrevocable personal guarantees of the Whole Time Directors and property holders.
Bank Overdraft which carries interest rate @ FDR 0.40% is secured agaisnt Fixed Deposit of INR 1000.00 Lacs from HDFC Bank.
Note 18.1 The Company has the process of identification of suppliers registered under the “The Micro, Small and Medium Enterprises Development (‘MSMED’) Act, 2006” by obtaining confirmation from suppliers. Based on the information available with the Company, there are no overdues more than 45 days, payable to the suppliers as defined under the 'Micro, small and Medium Enterprises Development Act, 2006 as at March 31, 2024.
Based on the information available with the Company, the balance due to micro and small enterprises as defined under the MSMED Act, 2006 is as follows:
Reason for Shortfall : Company has identified an ongoing project in meeting held among members of its CSR Committee. Company has transfer the remaining sum as per the Section 135 of Companies Act, 2013 and provisions thereof, on within 30 days of end of Financial Year i.e. Apr 30, 2022.
The company has not dealt with any related party in regard to its CSR Activities
Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the Year : Not Applicable
Note-34 Lease
The company has taken mines on Operating Lease from “Department of Mines & Geology” and minimum yearly rental is being paid which is adjusted against royalty amount, if payable.
Note-35 Employee Benefit
(A) Defined Contribution Plan:-
The Company operates defined contribution retirement benefit plans for all qualifying employees. Contributions are made to registered provident fund and Employee state insurance administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
(B) Defined Benefit Plan:-Gratuity
In accordance with the provisions of Payment of Gratuity Act, 1972, the company has defined benefit plan which provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee's last drawn salary and the year of employment with the company. The company’s gratuity plan is an unfunded plan.
These plans typically expose the Company to actuarial risks such as: Actuarial Risk, Investment Risk, Liquidity Risk, Market Risk & Legislative Risk:
"A. Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: Adverse Salary Growth Experience : Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.”
"B. Investment Risk :
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.”
"C. Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.”
"D. Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.”
"E. Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.”
No other post-retirement benefits are provided to the employees.
The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2024 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Assumptions:
The principal assumptions used for the purposes of the actuarial valuations are given below:
Leave Encashment
Compensated absence liability recognised as expense for the year is Rs. 7.55 Lakhs (Previous Year Rs. 17.83 Lakhs). The said amount has been calculated by the management. It has been calculated on the basis of leaves accumulated during the year other relevant factors.
Note-36 Capital Management
The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company's risk management committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.
Note-37 Related Party Disclosures
The Company has made the following transactions with related parties as defined under the provisions of Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India & notified by MCA under Companies (Indian Accouting Standard) Rules, 2015, as amended.
List of related parties with whom transaction have takenplace during the year along with the nature and volume of transaction is given below from 01.04.20223 to 31.03.2024
Note-38 Contingent Liabilities/Commitments, Contingent Assets & Pending Litigations Contingent Liabilities
(A) Claims against the company not acknowledged as debt.
A.IDemand Raised by the Central Excise Commissionerate of Rs 170.62 Lacs against which Rs 62.32 Lacs is deposited by the company. The Said Matter has been taken to the High Court and the petition is still pending.
A.2 The company has a total demand of Rs. 78.39 lacs of Custom Duty out of which the company has deposited Rs. 9.21 Lacs under protest against which the company has filed an appeal.
A. 3 During the Search Proceeding, demand of Rs. 2.61 Lacs has been raised for the AY 22-23 against which
company has filed an appeal before CIT (Appeal).
(B) Other Contingents Liabilities
B. 1 Show cause notice received from excise authorities of Rs 1.02 crore in respect of excise duty imposed on
ground of availing wrong benefit of exemption notification on imported marble blocks, however no demand has been received from the excise authorities against the same and based on the legal opinion obtained, the company does not expect any liability on this account.
B.2 Show Cause notice received from excise authorities of Rs 4.94 crore in respect of custom duty under the provision of Custom Act 1962 imposed on ground of availing wrong benefit of exemption notification on imported marble blocks. However no demand has been received from the Custom authorities against the same and based on the legal opinion obtained, the company does not expect any liability on this account.
B.3 Show Cause notice Received From Custom Authorities of RS 9.29 Lacs of Custom Duty under the Provision of Custom Act 1962 imposed on Ground of Wrongly Availing of Custom duty Benefits(Duty Forgone) on Saw Blades and Steel Grits imported /procurred under concessional rate of duty during Period of July 2016 to June 2017 . However, no demand has been received from the custom authorities against the same and based on Legal opinion obtained , the company does not expect any liabilities on this account
(C) Capital Commitments and other Commitments - Nil
(D) Contingent Assets - Nil
Note 39: Fair Value Measurement
The following table shows the carrying amounts and fair values of Investments including their levels in the fair value hierarchy.
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the 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 transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:
“1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
2) Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.”
Note 40: Financial Risk Management
Financial risk management policy and objectives
The key objective of the Company’s financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
Company’s principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The main purpose of these financial liabilities is to finance Company’s operations and plant expansion. Company’s principal financial assets include investments, trade and other receivables, deposits with banks and cash and cash equivalents, that derive directly from its operations.
Company is exposed to market risk, credit risk and liquidity risk.
“The Company’s Board oversees the management of these risks. The Company’s Board is supported by senior management team that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company’s Board that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.”
i) 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 three types of risk interest rate risk, currency risk and price risk. Financial instruments affected by market risk include investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.
The sensitivity analysis in the following sections relate to the position as at 31 March 2024 and 31 March 2023. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. “
a) Foreign currency risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign exchange risk arising from foreign currency transactions primarily to USD & EURO. Company do not enter into any derivative instrument in order to hedge its foreign currency risks.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change by 5% in USD & EURO exchange rates, with all other variables held constant.
Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order to optimize the Company's position with regards to interest income & expense and to manage the interest risk, the Company performs comprehensive interest risk management by balancing the proportion of fix & variable rate financial instruments.
c) Commodity Risk
Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/ Finished Goods and change in demand of the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company forecast annual business plan and execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.
Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration of risk as customer base in widely distributed both economically and geographically.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial condition, ageing of outstanding and the Company’s historical experience for customers.
a) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment Company adjust it’s exposure to various counterparties. Company’s maximum exposure to credit risk for the components of balance sheet is the carrying amount as disclosed in Note 41.
Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Company’s objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.
The table summarises the maturity profile of Company’s financial liabilities as follows:
Note 42. Code on Social security
The Code on Social Security, 2020 (‘code’) relating to employee benefits, during employment and post-employment, received Presidential assent on September 28, 2020. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders. The Company will assess the impact on its financial statements in the period in which the related rules to determine the financial impact are notified and the Code becomes effective.
NOTE 43 - Disclosures as per amendments in Schedule III of Companies Act,2013 with notification issued on 24th March 2021:
Information required against additional disclosures as per amendments in Schedule III of Companies Act, 2013 are as under:-
A. Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))- There are no immovable properties owned by the company whose title deeds are not held in its name except a assets whose Disclosure is given in Note 3
B. Revaluation of Property, Plant & Equipment (Para a(ii)(XIII)(Y)(ii)) - During the year under review the company has not revalued its property, plant & Equipment (Includign right of use assets).
C. Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XIII)(Y)(iii))-
The Company has not provided any loans and advance to the parties covered under this clause .
D. Intangible Assets under development (Para a(ii)(XIII)(Y)(v))-There are no intangible assets under development
E. Willful Defaulter (Para a(ii)(XIII)(Y)(viii))- The company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.
F. Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi)) - The company has not made violation of requirements related to number of layers of companies as prescribed under clause 87 of Section 2 read with Commpanies (Restriction of number of Layeers) Rules 2017.
G. Utilization of Borrowed funds and share premium (Para a(ii)(XIII)(Y)(xiv)) - No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
H. Undisclosed Income (Para a(iii)(ix))- Company has not surrendered or disclosed any transaction which was not recorded in the books of accounts as income during the year in the tax assessment under the Income Tax Act.
I. Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))- The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
J. Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XHI)(Y)(x)) - There are no charges or satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period except following :
Note 44. The previous year’s figures have been regrouped, rearranged and reclassified to conform to current year Ind-AS presentation requirements.
Note 45. TThere was a Search & Survey conducted by Income Tax Authorities in Feb 2023 on Factory and other premises of the company and certain records were seized by Income Tax Department. Assessment in this regard is yet to be completed and no provision has been made against the liability in this regard (if any) that may arise in future , the same will be dealt with only after completion of Assessment .The company had made necessary disclosure to the stock exchanges in this regard on February 21,2023, in accordance with regulation 30 of the SEBI (LODR) regulation, 2015 (as amended).
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