A. Rights, preferences and restrictions attached to equity shares
The Company has a single class of equity shares having par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held. During the year ended 31 March 2024, the Company has not declared any dividend.
D Details of aggregate number and class of shares issued other than by way of cash, issue of
bonus shares and shares bought back for 5 years immediately preceeding the balance sheet date.
The Company had not alloted shares as fully paid up pursuant to contract without payment being
received in cash.
The Company had not alloted Bonus shares.
The Company has bought back 42,36,440 equity shares during the year ended 31st March 2019.
Additional Regulatory Information
(i) Title deeds of all the immoveable property held by the company are in the name of the company.
(ii) The company has not classified any of its properties as investment properties and hence the neccesity of valuation does not arise.
(iii) The company has not revalued any of its property, plant and equipment.
(iv) There are no intangible assets and hence the neccesity of valuation does not arise.
The company has not granted any loans to promoters, directors, KMPs and the related parties either
(v) severally or jointly with any other person that are repayable on demand or without specifying any terms and conditions of repayment
(vi) There is no Capital work in progress during the year.
(vii) There are no Intangible assets under development.
There are no proceedings initiated or pending against the company for holding any benami property
(viii) under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ix) The company has not borrowed any monies from banks or financial institution on the basis of security as current assets.
(x) The Company has not been declared as a wilful defaulter by any bank or financial institution.
(xi) The company has not transacted with companies struck of under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
(xii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
(xiii) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act, read with the Companies (Restriction on number of layers) Rules, 2017.
(xv) The company has not entered into any scheme of arrangment during the year.
(xvi) A. The company has not advanced or loaned or invested funds to any other persons or entities including foreign entities (Intermediaries) with understanding 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 beneficiary) or ;
(b) provide any guarantee, security or like to or on behalf of the ultimate beneficiaries.
B. The company has not received any funds from any persons or entities including foreign entities (Intermediaries) with understanding 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 beneficiary) or ;
(b) provide any guarantee, security or like to or on behalf of the ultimate beneficiaries.
(xiv) RatiosBasis for Ratios
a) Current Ratio = Current Assets / Current Liabilities
b) Debt - Equity Ratio = Total Debt (Current Non-Current) / Equity
c) Debt Services Coverage Ratio = Profit before Interest depreciation and Tax/ Debt service
d) Return on equity Ratio = Profit (or) Loss for the year / Equity
e) Inventory Turnover Ratio = COGS / Average Inventory
f) Trade Receviables Turnover Ratio = Turnover/ Average Trade Receivables f) Trade Payables Turnover Ratio = Purchase/ Trade payables
h) Net Capital Turnover Ratio = Turnover/ Working capital
i) Net Profit Ratio = Net Profit/ Turnover
j) Return on Capital Employed = Profit / (Loss) before Tax/ Capital employed
Reason for Deviations by more than 25%
a) Return on equity Ratio
The Variance is due to decrease in profit earned during the current year as comparred to that in the previous financial year
b) Net Profit Ratio
The variance is due to decrease in profit earned during the current year as compared to that in the previous financial year
c) Return on Capital Employed
The variance is due to decrease in profit earned during the current year as compared to that in the previous financial year.
d) Return on Investment
The variance is due to decrease in profit earned during the current year as compared to that in the previous financial year.
B. Risk Management (i). Credit Risk
Credit risk primarily arises from cash and cash equivalents, trade receivables and investments carried at amortised cost. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forward looking information.
a) Cash and Cash Equivalents
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies.
b) Trade Receivables
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates. The Company manages its credit risk through credit approvals, establishing credit limits and continuously monitoring credit worthiness of customers to which the Company grants credit terms in the normal course of business.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade receivable and other financial assets. The management uses a simplified approach (i.e. based on lifetime ECL) for the purpose of impairment loss allowance, the company estimates amounts based on the business environment in which the Company operates, and management considers that the trade receivables are in default (credit impaired) when counterparty fails to make payments for receivable more than 2 years past due. However the Company based upon historical experience determine an impairment allowance for loss on receivables.
(ii). Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company believes that its liquidity position, including total cash and cash equivalent and bank balances other than cash and cash equivalent of Rs 823.72 lakh as at 31.03.2024 (715.17 lakh as at 31.03.2023), anticipated future internally generated funds
from operations, enable it to meet its future known obligations in the ordinary course of business. However, if a 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 Company will continue to consider various borrowing or leasing options to maximize liquidity and supplement cash requirements as necessary.
The Company's liquidity management process as monitored by management includes the following:
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). Market Risk
Market risk is the risk that the 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 Interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
a) Currency Risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is not exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows as there is no foreign currency exposure.
b) Interest Rate Risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company has not borrowed any funds from banks/financial institutions/other and thereby there is no foreseeable
risk due to change in interest rates._
24. Capital Management
For the purpose of the Company's capital management, capital includes issued equity share capital and all other equity reserves
attributable to the equity holders of the Company.
The company's objectives when managing capital are to
safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
ii. maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided (total borrowings net of cash and cash equivalents) by Total Equity (equity attributable to owners of the parent plus interestbearing debts).
27. Capital Advance
Pursuant to the scheme of demerger of erstwhile Binny Limited as approved by the Hon'ble High Court of Madras, the amounts payable by M/s Padmaadevi Sugars Ltd to erstwhile Binny Limited amounting to Rs. 21.34 crore was allocated to S V Global Mill Limited as treated as recoverable from M/s Padmadevi Sugars Ltd.
M/s Padmadevi Sugars Ltd has been referred to the National Company Law Tribunal by its creditors. Considering the proceedings before the NCLT, the management by way of abundant caution during the financial year 2018-19 provided for the entire amount recoverable from M/s Padamadevi Sugars Ltd.
Pending further developments in the matter, the Impairment allowance is retained at the same level and capital advance is presented net off impairment allowance.
28. Exceptional Item
The erstwhile Binny Limited could not operate the Bangalore Wollen, Cotton and Silk Mills, Bangalore and the factory declared a lock out during the period 26.12.1988 to 05.08.1989. Consequently, the dispute regarding wages during lock out period arose and Industrial Tribunal vide I.D. 9/1990 dated 03.11.1990 passed an award against Binny Ltd for payment of wages and other benefits for the lock out period.
Against the order of the Industrial Tribunal, a Writ Appeal was filed before the Hon'ble High Court of Karnataka, by erstwhile M/s Binny Ltd which was dismissed. Against the order of the Hon'ble High Court of Karnataka a Special Leave Petition was filed by erstwhile M/s Binny Ltd before the Hon'ble Supreme Court of India which was also dismissed. Thereafter, the matter was referred back to the Deputy Labour Commissioner (DLC), Division - I, Bangalore for determination settlement payable to the labourers. In the meanwhile, as per the Scheme of demerger approved by the Hon'ble High Court of Madras, M/s. SV Global Mill Ltd has taken over this dispute.
During the financial year 2017-18, the Deputy Labour Commissioner ordered to settle the amounts to the respective labourers covered by the order and accordingly the company during the year has paid an amount of Rs. 4,89,616 (previous year Rs.9,36,323) and the same has been treated as Exceptional Item in the Statement of Profit and Loss for the year ended 31st March 2023.
Out of the total payable of Rs. 5,68,42,280 as result of the order, the company has settled an amount of Rs. 2,95,21,742 till 31st March 2024. The balance amount of Rs. 2,78,10,154 is expected to be settled as and when the claim is lodged by those entitled to it.
30. Claims not acknowledged as debt
During the financial year 2016-17, the company has received legal notices from various statutory authorities pertaining to the affairs of Binny Limited. As the company is not involved in the allegations/disputes, the company has challenged the issue of notices on M/s. SV Global Mill Limited.
The Wealth Tax Authorities has reassessed the wealth tax for the FY 2010-11 to FY 2014-15 resulting in the demand of Rs.12.63 crores. Against the orders passed by the wealth tax authorities, the company has filed appelas before the commissioner of Wealth Tax (Appeals) which is pending. Pending appeals the company has paid an amount of Rs.2 crores in aggregate under protest for the aforesaid FYs.
31. Appeal for enhanced compensation on compulsory acquisition
Lands to the extent of 3 acres and 16 guntas was compulsorily acquired during the year 2013-14, by the Special Land Acquisition Officer (SLOA), Government of Karnataka for public purpose. In respect of the compulsory acquisition, the Company during the financial year 2014-15 received compensation under the Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR 2013) .
The award was accepted under protest with regard to the determination of market value, the manner and the method of Upon hearing the protest application, the II-Additional City Civil and Session Judge vide his order dated 29.10.2018
In the meanwhile, against order enhancing the compensation for compulsory acquisition, the Government of Karnataka filed an appeal before the Hon'ble High Court of Karnataka. An appeal of the Government of Karnataka against the order of the Civil Court was dismissed by the Hon'ble High Court of Karnataka against which a SLP was filed before the Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India on 10th August 2021 remitted back the review petition to the Hon'ble High Court of Karnataka for order on merits.The Hon'ble High Court of Karnataka vide its order dated 21st October 2022 dismissed the review petition as not maintanable against the order. Against the order, the Government of Karnataka has filed an SLP before the Hon'ble Supreme Court of India, which is pending. Pending finality of the matter, the enhanced compensation is not recorded in the books of accounts.
32. Undisclosed Income
There were no transaction that were 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
33. Corporate Social Responsibility
The company has not exceeded the threshold limits specified under sub section 1 of section 135 of the Companies Act 2013 and as a result there is no requirement for spending on CSR Actvities
34. Details of Crypto Currency or Virtual Assets
The company has not traded or invested in cypto currency or virtual currency during the finanical year.
35. Disclosure as required by Micro, Small and Medium Enterprises Development Act, 2006
The company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures if any relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been made.
37. Figures in the financial statements and in the Notes have been rounded off to the nearest Lakh
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