Note 2D Terms/ Rights attached to Equity Shares
The Company has only one class of equity shares having a par value of ? 10/- per share. Each holder of equity shares is entitled to one vote per share and ranks pari passu.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.
The Company had allotted 7264036 convertible warrants to persons belonging to 'non-promoter' category on July 04, 2023, for an issue price of ? 135/- per warrant. Out of total issue price, ? 67.50 (50% of the issue price) per warrant was received as the initial subscription amount at the time of allotment of the warrants. During the year ended March 31, 2024, out of 7264036 convertible warrants, the company had converted 2350000 warrants by receiving balance subscription amount ? 67.50 (50% of the issue price).
Working capital loan from HDFC bank
- Quarterly return or statements were in agreement with books of account.
- The loan stands repaid and closed as at the year end. The loan was secured by hypothecation of stock and receivables and security margin for bank guarantee and Letter of Credit. Collaterally secured by personal guarantees from property owners and Directors/ shareholders and deposits with bank of ? 50 Lakh lien marked in favour of bank.
NOTE 32 CONFIRMATION OF TRADE RECEIVABLE, TRADE PAYABLES AND OTHERS
The Company has carried out exercise of balances confirmation of trade receivable, trade payable, advances given, and other financial and non-financial assets and liabilities and have received confirmations in most of the cases. In few cases, such balances are subject to confirmation/ reconciliation and their balances are stated as per books of accounts. Adjustments, if any will be accounted for on confirmation/ reconciliation of the same, which in the opinion of the management will not have a material impact.
In the opinion of the Board of directors, assets other than property, plant and equipment and intangible assets have a value on realised in the ordinary course of the business at least equal to the amount at which they are stated in the Balance Sheet and provisions for all known / expected liabilities have been made.
In accordance with the principles given in Accounting Standard on Segment Reporting (AS-17) specified under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021, as applicable, the Company has only reportable single business segment of business i.e., manufacturing ERW MS PIPES and Trading of MS PIPES. As regards geographical segment, company operates in single segment i.e., India only. Hence, no separate disclosure is given as per AS - 17 "Segment Reporting".
NOTE 37 ACCOUNTING STANDARD 22 (AS-22) “ACCOUNTING FOR TAXES ON INCOME"
In compliance with the Accounting Standard-22 relating to "Accounting for Taxes on Income" the deferred tax liability of current year is charged/ (credited) to statement of profit and loss.
There are no Micro and Small Enterprises, to whom the Company owes dues as at March 31, 2024 (Nil as at March 31, 2023). This has been determined to the extent the status of such parties could be identified on the basis of information available with the Company.
NOTE 40 IMPAIRMENT OF ASSET
In term of Accounting Standard on 'Impairment of Assets' (AS - 28) specified under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021, as applicable, according to the assessment made by the management there is no indication that the assets of the Company are impaired as on the Balance Sheet date. Accordingly, the Company has not provided any impairment loss in the accounts during the year.
NOTE 41
There being no import, export and foreign exchange earning/ outgo during the period under review so that additional information pursuant to the provisions of Schedule III to the Act is not provided.
NOTE 42 ANALYTICAL RATIOS (CONTD.)
1. The current assets are increased compared to increase in current liability, hence there is increase in ratio.
2. Debt service coverage ratio increase due to increase in EBITDA.
3. Return on equity ratio higher due to increase in net profit after tax.
4. It has reduced because of considerable increase in inventory vis-a-vis turnover.
5. Trade receivables turnover ratio increased due to lower trade receivable and increased turnover.
6. Trade payable turnover ratio increased due to lower trade payable and increased purchases.
7. It has reduced because of considerable increase in average working capital vis-a-vis turnover.
8. Due to increase in profit after tax for current year as compared to previous year.
9. Due to increase in earnings before tax and finance costs as compared to previous year.
NOTE 43 ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 20131. Details of Benami Property held
No proceedings have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (45 of 1988) and the rules made thereunder as amended from time to time.
2. Title dees of immovable properties
The title deeds of all immovable properties disclosed in the financial statements included in property, plant and equipment and capital work in progress are held in the name of the Company as at the balance sheet date.
3. Revaluation of property, plant and equipment
As per the Company's accounting policy, Property, Plant and Equipment and intangible assets are carried at historical cost (less accumulated depreciation and impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.
4. Security of current assets against borrowings
The Company had borrowings from banks or financial institutions on the basis of security of current assets during the year. The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of account. Hence, requirements of furnishing summary of reconciliation and reasons of material discrepancies do not apply.
5. Wilful defaulter
The Company had borrowings from banks or financial institutions or other lenders. However, the Company has not been declared a wilful defaulter at any time during the year or after the end of reporting period, but before the date when financial statements are approved or in an earlier period and the default has continued for the whole or part of the current year by any bank or financial institution or other lender.
6. Relationship with Struck off companies
The Company has no transaction during the year with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
7. Registration of charges or satisfaction with Registrar of Companies
During the financial year, there is no delay by the Company in the registration of charges or satisfaction with Registrar of Companies beyond statutory period except in one case which is disclosed as under:
8. Compliance with number of layers of companies
The Company is not having any subsidiary. Hence, requirement of compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
9. Compliance with approved Scheme(s) of Arrangements
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 year. Hence, the requirements of disclosure of effect of such Scheme of Arrangements in the books of account in accordance with the Scheme and in accordance with accounting standards are not applicable.
NOTE 43 ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013 (CONTD.)## Utilisation of Borrowed funds and share premium
(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) during the year 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.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) during the year 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.
## Crypto currency or Virtual Currency transactions
The Company has not operated in any crypto currency or Virtual Currency transactions.
## Undisclosed Income
The Company has not surrendered or disclosed as income any transaction not recorded in the books of account during the year in the tax assessments under the Income-tax Act, 1961.
## Loans or advances - Additional disclosures
a. The Company has not granted any loan or advance in nature of loan to promoters, directors, key managerial personnel and related parties as defined under the Act either severally or jointly with any other person that is (a) repayable on demand; or (b) without specifying any terms or period of repayment.
b. Particulars of investments - Refer note 14 non-current investment.
c. There is no guarantee given or security provided by the Company.
The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level and certain master fields (Asset Master, Customer Master and Vendor Master) for users with certain privileged access rights as it related to the accounting softwares. Further no instance of audit trail feature being tampered with was noted in respect of the software.
NOTE 45
The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.
The figures of the financial statements are represented as ? in Lakhs upto two decimal places leaving the scope of rounding up variations.
The accompanying notes from an integral part of the financial statements.
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