* Pursuant to sanction letter received from District Trade and Industries Centre, Pithampur Madhya Pradesh in relation to Micro, Small and Medium Enterprises policy, 2019 and Micro, Small and Medium Enterprises policy, 2017, the Company is entitled to subsidy of I NR 90.86 lakhs in equal 4 installments and INR 57.30 lakhs in 5 equal installments for SEZ Unit 1 and SEZ Unit 2 respectively on admissible value of plant and machinery.
* The Company has paid an amount of INR 636.60 lakhs and issued 104,232 equity shares of value amounting to INR 1,419.64 lakhs to acquire 80% stake in Waterfront Fluid Controls Limited, UK. The aggregate amount of INR 2,056.24 lakhs is disclosed as advances for pending issue and allotment of the said equity shares by Waterfront Fluid Controls Limited, UK.
* Pursuant to sanction letter received from District Trade and Industries Centre, Pit ham pur Madhya Pradesh In relation to Micro, Small and Medium Enterprises policy, 2019 and Micro, Small and Medium Enterprises policy, 2017, the Company is entitled to subsidy of I NR 90.86 lakhs in equal 4 installments and INR 57.30 lakhs in 5 equal installments for SEZ Unit 1 and SEZ Unit 2 respectively on admissible value of plant and machinery. Above INR 22.72 lakhs is for SEZ Unit 1 which will be receivable as next (last) installment in the next 12 months.
** Derivatives are forward exchange contracts measured at fair value and are carried as asset when their fair value is positive and are carried as liability when their fair value Is negative. The above derivative Is a currency derivative pertaining to a forward exchange contract. This contract Is entered Into by the company to mitigate the risk invloved in expected foreign currency cash inflows and outflows.
b) Note for shares held under ESOP Trust:
The ESOP trust has been treated as an extension of the Company and accordingly shares held by ESOP Trust are netted off from the total share capital. Shares held by the Trust are Nil as of 31 March 2024 (31 March 2023: Nil). Consequently, all the assets, liabilities, income and expenses of the trust are accounted for as assets and liabilities of the Company. The financial statements of the Trust have been audited by an independent other auditor.
For the details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company refer note 50.
e) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend In Indian Rupees. 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 holders of equity shares will be entitled to receive remaining assets of tiie Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
f) Shares reserved for issue under options
Information relating to Jash Engineering Employee Stock Option Scheme, including the details of options granted during the financial year and options outstanding at the end of reporting period are specified in Note 50
g) Details of shares issued pursuant to contract without payment being received in cash, allotted as fiily paid up by way of bonus issues and bought back during the last 5 years to be given for each class of shares
During the year, the Company has issued 104,232 equity shares of INR 10/- each at fair value of INR 1,362 per share towards acquisition of 80% stake in Waterfront Fluid Controls Limited, UK. The issue of shares (including security premium) amounts to INR 1,419.64 lakhs.
The Board of Directors of the Company, In their meeting held on 09 May 2024, recommended a final dividend of INR 7.20 per fully paid-up equity share of Rs. 10/- each, for the year ended 31 March 2024, subject to approval of shareholders at the ensuing Annual General Meeting of the Company.
Nature and purpose of reserves:
Securities premium: 'Securities premium represents premium received on Issue of shares. The reserve Is being utilised In accordance with the previsions of the Companies Act, 2013.
General reserve: General reserve Is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve Is created by a transfer from one component of equity to another.
ESOP reserve: This reserve represents recognition of the grant date value of options Issued to employees under Employee stock option plan and adjusted as and when such options are exercised or otherwise expire.
SEZ Re-Investment Reserve: This reserve created for to avail tax benefit u/s 10AA. 50% of profit has been transferred In SEZ reserve and can be utilized for eligible plant and machinery. During the year, amounts equivalent to 50% profits of SEZ Unit I, INR 736.33 lakhs for financial year 2023-24 and INR 358.98 lakhs for financial year 2022-23 has been transferred to this reserve. During the financial year 2023-24 and 2022-23 INR 90.33 lakhs and INR 51.57 lakhs respectively utilised for invest in eligible new plant and machinery specified under section 10AA of the Income tax act, 1961.
Application money received towards convertible share warrants: During the year, the Company issued convertible share warrants aggregating to 29,999 share warrants to promoter and non-promoter share holder at INR 1,527.50 each. Out of the above, the Company has received 25% as application money i.e INR 114.56 lakhs towards allotment of such share warrants.
Repayment terms and security for the outstanding long term borrowings (including current maturities):
i) Term loans from banks
1) The Company availed loan against property facility from HDFC Bank amounting to INR 385.00 lakhs at rate of Interest of over 0.85% of MCLR rate p.a. Repayment of term loan is to be done in 119 monthly instalments of INR 5.02 lakhs with last instalment faling due in year 2029-30. The entire amount of loan has been repaid in FY 2023-24. Outstanding book balance of term loan is INR Nil (31 March 2023: INR 270.81 lakhs).
The aforesaid term loan is secured by way of :
Personal guarantee by Mr. Suresh Patel and Mr. Pratik Patel.
2) The Company availed term loan facility from Axis Bank amounting to INR 918.94 lakhs payable in 55 equal instalment of INR 16.70 lakhs starting from October 2019 at rate of interest of over 3% on repo rate. The company paid 3 installments amounting to INR 50.12 Lakhs and subsequently in January 2020 company has converted its rupee term loan into foreign currency loan amounting to INR 852.10 Lakhs ((USD 12,17,291.42 (excluding last instalment amounting to INR 16.70 Lakhs)). The converted loan is to be repaid in 51 monthly installments from February 2020 but the company has repaid the entire outstanding amount in FY 2023-24. The Outstanding rupee term loan as at 31 March 2024 is INR Nil (31 March 2023: INR 16.70 lakhs) and outstanding foreign currency loan Is INR Nil (USD Nil) (31 March 2023: INR 252.30 lakhs (USD 306,871.93)).
The aforesaid term loan loan facility Is secured by way of:
(a) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over factory land and building of the Company situated at Plot No. M-19, SEZ Phase II, Pithampur admeasuring total area 8661.67 square meter in the name of the Company.
(b) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of hypothecation of plant and machinery situated at at Plot No. M-19, SEZ Phase II, Pithampur
3) The Company has availed working capital term loan from Axis Bank of amounting to INR 755.00 lakhs at rate of interest of over 3.35% of repo rate p.a. Repayment of working capital term loan in 48 equal monthly principal Instalments of INR 15.73 lakhs and moratorium period of 12 months from the date of first disbursement. Outstanding book balance of working captial term loan is INR 346.04 lakhs (31 March 2023: INR 534.79 lakhs).
The aforesaid Working capital loan facility is secured by way of:
Primary:
First pari passu charge over Company's entire stocks comprising raw materials, stock in process, finished goods, consumable stores and spares and receivables at 18A, 18B, 18C, 19. 29-31, 32B Sector C. Industrial area. Sanwer Road, Indore Plot No. 1M-11, Misc. zone Phase-ll SEZ, Pithampur disL Dhar, and survey no. 74/1, 74/2/1, 74/2/2, 76/1/3 (now 76/1/4), 76/1 (now 76/1/1), 76/1/3 (now 76/1/5) PH No. 19, Bardari Tehsil, dist Sanwer, Indore survey no. 77 (now 77/1), PH no. 36, Bardari Tehsil, sanwer district, Indore Plot no. 19SEZ Phase-ll, pithampur and at such other places approved by the Bank including good in fransit/shipment in the name of Company.
4) The Company also availed working capital term loan from HDFC Bank of amounting to INR 350.00 lakhs at rate of interest of over 1% of RBI reference rate p.a. Repayment of working capital term loan in 48 equal monthly prindal instalments of INR 7.29 lakhs and moratorium period of 12 months from the date of disbursement. Outstanding book balance of working capital term loan is INR 175.00 lakhs (31 March 2023: INR 262.50 lakhs)
(a) First pari passu charge over Company's entire current assets
(b) Pari passu charge on entire fixed asset of the Company.
Collateral:
(a) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over land and building of the Company situated at Plot No. M-19, SEZ Phase II, Pitham bur admeasuring total area 8661.67 square meter In the name of the Company.
(b) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank byway of mortgage over Plot No. 29, 30, Industrial Area Sanwer Road, District-lndore admesuring 1,20,000 Sq. ft in the name of the Company.
(c) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. 18 C, 31, 32 B Industrial Area Sanwer Road, District-lndore admesuring 87,270 Sq. ft in the name of the Company.
(d) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. M-11, Special Economic Zone-ll, Pithampur Industrial Area, Dlstrict-Dhar admesuring 12,035 Sq. Mtr In the name of the Company.
(e) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Survey No, 74/2/2, patwari haka No. 19 admeasuring 1.179 Hec. situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Patamin Investments Private Limited.
(f) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Industrially diverted Land of Survey No. 74/1 (0.866 Hec) & 74/2/1 (0.313 Hec) total admeasuring 1.179 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
(g) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage ovar industrially diverted Land of Survey No. 76/1 Paiki new Survey no. 76/1/2 total admeasuring 0.567 Hec situated at Vilage Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
(h) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Industrially diverted Land of Survey No. 76/1/3 new Survey no. 76/1/4 total admeasuring 0.425 Hec situated at Vilage Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
(i) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over indusfrialy diverted Land of Survey No. 77 new Survey no. 77/1 total admeasuring 0.125 Hec situated at Vilage Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
0 First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over industrially diverted Land of Survey No. 76/1 Paiki new Survey no. 76/1/1 total admeasuring 0.243 Hec situated at Vilage Bardari, Tehsil Sanwer, District-lndore in the name of the Patamin Investments Private Limited.
(k) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Industrially diverted land of Survey No. 76/1/3 new Survey no. 76/1/5 total admeasuring 0.183 Hec situated at Vilage Bardari, Tehsil Sanwer, District-lndore. in the name of the Patamin Investments Private Limited..
(l) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. 18-A & 19, Sector-C, Industrial Area, Sanwer Road, Tehsil & Distt Indore admesuring 70,500 Sq. Ft in the name of the Company.
(m) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. 18-B, Sector-C, Industrial Area, Sanwer Road, Tehsil & Distt Indore admesuring 6050 Sq. Ft in the namB of thB Company.
(n) First pari passu charged with HDFC, SBI, Kotak Mahindra and Axis bank of pledge of 30% (No. 40,509 ) shares of Shivpad Engineers Private Limited.
Also secured by way of guarantees from:
Mr. Suresh Patel Mr. Pratik Patel
Primary for HDFC Bank:
Collateral for all the banks:
(a) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank byway of mortgage over land and building of the Company situated at Plot No. M-19, SEZ Phase II, Pithambur admeasuring total area 8661.67 square meter in the name of the Company.
(b) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. 29, 30, Industrial Area Sanwer Road, District-Indore admesuring 1,20,000 Sq. ft In the name of the Company.
(c) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Hot No. 18 C, 31, 32 B Industrial Area Sanwer Road, District-lndore admesuring 87,270 Sq. ft in the name of the Company.
(d) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Hot No. M-11, Special Economic Zone-ll, Plthampur Industrial Area, Dlstrict-Dhar admesuring 12,035 Sq. Mtr in the name of the Company.
(e) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank byway of mortgage over Survey No. 74/2/2, patwari halka No. 19 admeasuring 1.179 Hec. situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Patamin Investments Private Limited.
(f) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over industrialy diverted Land of Survey No. 74/1 (0.866 Hec) & 74/2/1 (0.313 Hec) total admeasuring 1.179 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore In the name of the Company.
(g) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over industrially diverted Land of Survey No. 76/1 Paiki new Survey no. 76/1/2 total admeasuring 0.567 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore In the name of the Company.
(h) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Industrially diverted Land of Survey No. 76/1/3 new Surrey no. 76/1/4 total admeasuring 0.425 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
(i) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over industrially diverted Land of Survey No. 77 new Survey no. 77/1 total admeasuring 0.125 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Company.
(j) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over industrialy diverted Land of Survey No, 76/1 Paiki new Survey no. 76/1/1 total admeasuring 0.243 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore in the name of the Patamin Investments Private Limited.
(k) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank byway of mortgage over industrially diverted land of Survey No. 76/1/3 new Survey no, 76/1/5 total admeasuring 0.183 Hec situated at Village Bardari, Tehsil Sanwer, District-lndore. In the name of the Patamin Investments Private Limited..
(l) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Hot No. 18-A & 19, Sectar^C, Industrial Area, Sanwer Road, Tehsil & Distt. Indore admesurina 70.500 So. Ft in the name of the Comoanv.
(m) First pari passu charge with HDFC, SBI, Kotak Mahindra and Axis bank by way of mortgage over Plot No. 18-B, Sector-C, Industrial Area, Sanwer Road, Tehsil & Distt. Indore admesuring 6050 Sq. Ft in the name of the Company.
(n) First pari passu charged with HDFC, SBI, Kotak Mahindra and Axis bank of pledge of 30% (No. 40,509) shares of Shivpad Engineers Private Limited.
Patamin Investments Private Limited (except for HDFC Bank)
Notes:
A) Details of working capital facility :
(i) 'Fund based credit facility of INR 3P0D0 lakhs (31 March 2023: INR 3,000 lakhs) sanctioned to the Company from HDFC Bank, it comprises of Cash Credit CCC) facility Including sub-lmlt of short term loan facility at annual rate of Interest of 8.9% linked wtth 1Y-MCLR and and export packing credit ('EPC') within CC limit at an annual rate of interest 0.55% above 6M MCLR. Outstanding book balance forCC account from HDFC as on 31 March 2024 is INR 217.66 lakhs (31 March 2023 is INR 206.13 lakhs), EPC account as on 31 March 2024 is INR 1301.14 lakhs (31 March 2023: INR Nil) and outstanding book balance of short term loan account is INR 1,000 lakhs (31 March 2023: INR 2,300 lakhs).
ii) Fund based credit facility sanctioned from State Bank of India comprise of cash credit facility amounting to INR 2,400 lakhs (31 March 2023: INR 2,400 lakhs) at an annual rate of interest 1% above 6M MCLR and export packing credit (’EPC) within CC limit amounting to INR 2,100 lakhs (31 March 2023: INR 2,100 lakhs) at an annual rate of interest 0.55% above 6M MCLR. Outstanding book balance for CC account as on 31 March 2024 Is INR 127.43 lakhs (31 March 2023 : INR 237.89 lakhs), EPC account as on 31 March 2024 is INR 266.78 lakhs (31 March 2023: INR 617.79 lakhs) and overdraft book balance is INR 1340.17 lakhs (31 March 2023: INR 1045.67 lakhs).
iii) Fund based credit facility sanctioned from Axi3 Bank during the year comprise of cash credit ('CC') facility of INR 1,050 lakhs (31 March 2023: INR 1,050 lakhs) at annual rate of interest of 3.00% above Repo rate. Outstanding Book balance for CC account as on 31 March 2024 is INR 353.10 lakhs (31 March 2023: INR 889.55 lakhs). Outstanding Book balance for foreign currency demand loan as on 31 March 2024 is INR Nil (31 March 2023: INR Ni).
During the year the Company roll-over the buyer's credit in form of Foreign Bank Guarantee Loan facility of Euro 150,000 repayable in one year. The outstanding balance as of 31 March 2024 is INR 135.33 lakhs (31 March 2023: INR 268.82 lakhs).
iv) Fund based credit facility sanctioned from Kotak Mahindra Bank Limited comprise of cash credit facility amounting to INR 1,000 lakhs (31 March 2023: INR 1,000 lakhs) at an annual rate of Interest 2.6% above Repo Rate and export packing credit CEPC) within CC Imlt amounting to INR 1,000 lakhs (31 March 2023: INR 1,000 lakhs). Outstanding book balance for CC account as on 31 March 2024 is INR 189.04 lakhs (31 March 2023 : INR 500.62 lakhs), EPC account as on 31 March 2024 is INR 500 lakhs (31 March 2023: INR Nil).
The aforesaid Working capital loan facility Is secured by way of :
Primary for SBI and Axis Bank:
First pari passu charge over Company's entire stocks comprising raw materials, stock in process, finished goods, consumable stores and spares and receivables at 18A, 18B, 18C, 19, 29-31, 32B Sector C, Industrial area, Sanwer Road, Indore Plot No. 1M-11, Mlsc. zone Phase-ll SEZ, Plthampur dlst. Dhar, and survey no. 74/1, 74/2/1, 74/2/2, 76/1/3 (now 76/1/4), 76/1 (now 76/1/1), 76/1/3 (now 76/1/5) PH No. 19, Bardari Tehsil, dist Sanwer, Indore survey no. 77 (now 77/1), PH no. 36, Bardari Tehsil, sanwer district, Indore Plot no. 19SEZ Phase-ll, plthampur and at such other places approved by the Bank Including good In translt/shlpment In the name of Company.
(I) Dues to micro and small enterprises pursuant to section 22 of the Micro,Small and Medium Enterprises Development Act (MSMED),2006
On the basis of confirelation obtained from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act ,2006 (MSMED Act, 2006) and based on the information available with the company.the following are the details:
Primary for Kotak Bank:
First pari passu hypothecation charge to be shared with Axis Bank, HDFC Bank and State Bank of India on all existing and future current assets and Movable fixed Assets.
The Company had granted employee stock option during the year 2019-20, with a vesting schedule of four years, beginning from 13 February 2021 to 13 February 2024. Accordingly, in addition to common shares, 95,983 shares (31 March 2023: 1,92,473 shares) dilutive shares have been considered for computing diluted earning per share.
The Company had also granted employee stock option during the year 2023-24, with a vesting schedule of four years, beginning from 04 February 2024 to 04 February 2027. Accordingly, in addition to common shares, 53,700 shares (31 March 2023: Nil shares) dilutive shares have been considered for computing diluted earning per share.
The company had also issued 29,999 convertible equity share warrants during the year 2023-24. Accordingly in addition to common shares, 29,999 convertible equity share warrants consider a potental equity shares for computing diluted earning per share.
(All amount in INR lakhs unless stated otherwise)
42 Contingent liabilities and other matters
(a) Contingent liabilities (under litigation), not acknowledged as debt, include:
As at
31 March 2024
31 March 2023
Corporate guarantee given on behalf of Shivpad Engineers Private Limited Demand for central sales tax*
1,875.00
1,675.00
Financial year 2016-17
-
124.92
Financial year 2017-18 Demand for Goods and Service Tax**
42.20
Financial year 2017-18
16.25
Financial year 2018-19 Demand for income tax*
18.23
2.13
3.85
Financial year 2019-20
27.80
1,943.26
1,848.10
‘includes demand raised by Sales tax authorities against pending C Forms to be submitted by the Company (amount deposited under protest INR 56.72 lakhs.
*The demand of Goods and Service Tax (amount deposited under protest INR 1.90 lakhs (previous year INR Nil))
'Includes demand raised by Income tax authorities on account of certain disallowances in tax assessment.
Note: The Company has certain litigations involving vendor and work contractor. Based on legal advice of in-house legal consultants, the management believes that no material liability will devolve on the Company in respect of these litigations
b) Commitments
Estimated amount of contracts remaning to be executed on capital accounts and not provided for (net of advances INR 56.79 lakhs (31 March 2023: INR 49.03 lakhs)
551.95
220.47
c) Bank Guarantees
State bank of India
757.48
1,206.38
Axis Bank Limited
419.56
231.99
HDFC Bank limited
4,412.00
4,321.87
5,589.04
5,760.24
B Fair values hierarchy
The fair value of financial instruments as 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 or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
The categories used are as follows:
Level 1: Quoted prices for Identical Instruments In an active market
LBvel 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions In the same Instrument nor are they based on available market data.
" Fair value of financial assets and liabilities measured at amortised cost approximates their respective carrying values as the management has assessed that there is no significant movement in factor such as discount rates, interest rates, credit risk from the date of the transition. The fair values are assessed by the management using Level 3 inputs.
***The financial instruments measured at FVTPL represents the following items constitutes to level 1 category and other financial liability containing derivative liability has been valued using level 2 valuation hierarchy above.
C Financial Risk Management Risk Management
The Company’s activities expose It to market risk, liquidity risk and credit risk. The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
The Company’s risk management is carried out by a finance department (of the Company) under policies approved by the Board of directors. The Board of directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.
1 Credit risk
Credit risk is the risk that a counterparty fais to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other financial assets measured at amortised cast. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
a) Credit risk management
//) Credit risk rating
52 Segment Reporting
The Company has opted to provide segment information in its consolidated Ind AS financial statement in accordance with para 4 of Ind AS 108 -Operating Segments.
53 Additional regulatory Information not disclosed elsewhere In the financial statements
a) The Company does not have any Benami property and no proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
b) The Company has not been declared a ‘Wilful Defaulter' by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
c) The Company has complied 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.
d) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
e) The Company does not have any such 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
f) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
g) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
h) The Company does not have any transactions with struck off companies.
i) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
j) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the 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 Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
k) The Company has not received any fund from any persons or entities, 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
61 As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014 the Company uses only such accounting software for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account along with the date when such changes were made and who made those changes within such accounting software. This feature of recording audit trail has operated throughout the year and was not tampered with during the year. In respect of one accounting software, audit trail was not enabled as per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014 for direct data changes to database level. The company has established and maintained an adequate internal control framework over its financial reporting and based on its assessment, has concluded that the internal controls for the year ended 31 March 2024 were effective.
62 The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to 09 May 2024, the date the financial statements were available to be issued. Based on the evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the financial statements.
63 The Financial Statement were approved for issue by the Board of Directors on 09 May 2024.
This is a Summary of material accounting policy and other explanatory information referred to in our report of even date