9.1.7 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 Share is entitled to one vote per share. The shareholders are entitled to dividend in the proportion of their shareholding. In the event of of Liquidation of the company the Holders of Equity Shares will be entitled to receive remaining assets of the Company, after payment of all external liabilities. The Distribution will be in proportionate to the number of Equity Shares.
Explanation for change in the ratio by more than 25% as compared to the preceding year as follows:
a) Current Ratio
As the Working Capital of the company has reduced as compared to the previous year, the Current Ratio of the company has improved.
b) Debt-Equity Ratio
The total Debts of the company has decreased as compared to Previous year and Shareholders equity has been reduced due to Loss of Current Year and therefore impact on the ratio.
c) Return on Equity Ratio
Net Profit after taxes (Loss in case of the company) has decreased as compared to Previous Year, and therefore impact on the ratio.
d) Inventory Turnover Ratio
As Net Sales of the company for current year are less as compared to the Previous Year, also the Sales of current year is made from Opening Inventory, and therefore the Inventory Turnover ratio has reduced resulting in impact as compared to previous year.
e) Trade Receivables Turnover Ratio
As Net Sales of the company for current year are less as compared to the Previous Year, the Trade Receivables Turnover ratio has reduced resulting in impact as compared to previous year.
f) Net Capital Turnover Ratio
As Net Sales of the company for current year are less as compared to the Previous Year, the Net Capital Turnover ratio has reduced resulting in impact as compared to previous year.
g) Net Profit Ratio
The Total Revenue of the company has reduced as compared to the previous year resulting in variation in the Net Loss Ratio.
20.3 The Company has Capital Work in Progress of ' 11,850/- (Rupees in thousands) as on March 31,2024 [Previous Year ' 11,850/-]. The Value is represented by items such as Plant and Machinery, Equipments, Building which were planned for erection of Line No. 1 (Conti Ploy) Spinning Line. The progress and work of the erection of the above Capital Asset is delayed due to unavoidable circumstances beyond the control of the Management. The Delay was caused on account of Covid-19 Lockdown followed by suspension of ELectricity by the Assam State Electricity Board and Workers union strike. The management is in process to restart the Erection in consultation with the project manager. The Erection of the Spinning Line is planned to be completed either by own funds or by a Joint Venture with third Party by the Management.
23 The Company in the Financial Year 2018 - 2019 had received an order from Company Law Board Kolkata Bench for transferring of 30,00,000 Preference Shares in the Name of 3A Capital Services Limited. The Hon’ble National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi has passed an order dated May 16, 2024 (“Order”), setting aside CA (AT) No. 133 of 2022 filed by 3A Capital is hereby dismissed though without any order as to costs. The earlier order passed by the National Company Law Tribunal, Guwahati Bench, Guwahati, in the matter of 3A Capital Private Limited whereby the Company was directed to pay sum of ' 5,79,97,128/- along with a penalty of ' 5,00,000 to MCA within 45 days from the order is now set aside by the NCLAT.
24 Contingent Liability not Provided for in the Financial Statements:
(Rupees in Thousands)
Particulars
As on March 31, 2024
As on March 31, 2023
Claims against the Group not acknowledged as debts
249,781
333,703
Letter of undertaking executed in favor of Joint Director General of foreign trade under Duty Exemption Entitlement Scheme (Advance License Scheme) for custom duty
13,041
Letters of credit and Bank Guarantees given by bankers on behalf of the Company.
5,250
PF Demand Notices Against the Damages
2,949
-
Guwahati Workers Liability
200
LIC Interest on Late Payment of Rent
20,080
Assistant Commissioner of Sales Tax, Guwahati
2,030
Deputy Commissioner of Central Excise, Tezpur
3,117
296,448
351,994
25 The Board is contemplating taking steps for recovering the calls-in-arrears from defaulting applicants, including forfeiture of the shares as a last resort after exhausting all other avenues for recovery in a spirit of maintaining shareholder friendly environment. The Board therefore considers it prudent not to provide for the interest on calls-in-arrears.
26 In the opinion of the Board of Directors, in the ordinary course of business the value on realization of current assets, loans and
advances, including security Deposits are at least equal to the amount at which they are stated in the Balance Sheet.
27 Amounts appearing in Trade Receivables & Payables are realized and paid as on date of signing. Balances of Banks, Sundry
Debtors, Sundry Creditors, Loans & Advance, and Deposits are subject to confirmation.
28 Prag Bosimi Synthetics Limited (Holding Company) has two subsidiary companies i.e. Prag Bosimi Texurising Private Limited and Prag Bosimi Packaging Private Limited which are non-operating and non-revenue generating. Therefore, operating expenditure’s incurred by the companies are absorbed by the holding Company. The same is authorized by the Board Resolution dated: 14/08/2014.
29 The production activities of the company was stopped from 23rd March 2020, with the National Lockdown which was declared due to COVID-19 Pandemic. With the said closure, the company suffered heavy financial losses leading to severe liquidity crunch because of non realisation of debtors or movement of stock. Such liquidity crunch lead to worker’s agitation which eventually resulted in Union Strike by the Workers Union. This led to blockage of the main gate of the Factory, unabling the management to restart timely production work. Further, due to Natural Calamities the Electricity supply of the company was destroyed resulting complete stopage of Electricity to the company. Even after destruction the company was burdened with heavy electricity dues by the Assam Power and Distribution Company Limited which eventually led to disconection of power supply due to Non Payment of Dues. In the meantime Covid-19 had struck a heavy blow to the company in the form of death of its founder Managing Director, Shri. Hemant B. Vyas along with a number of Senior Executives. Besides the deaths almost all of the Top Management suffered from it. However the company kept up with the challenges. The company had managed to make settlement with its workers and have paid all their debts and realeased them under the Golden Handshake Scheme in which Hon,ble Minister of Industries & Commerce, Government of Assam was a signatory along with the Local Member of Legislative Assembly (MLA) and Assam Industrial Development Corporation. On settlement with the workers the company started selling off its finished stock. The Board of Directors also approved Selling off its Old, Unused Plant, Property and Equipment which coud generate funds. Now that the initial problems are resolved the company had already approached Assam Power Distribution Company Limited for
reconciliation and reconnection of power. Once the power is reconnected, the company would take steps for refurbishing its 132 KV substation and maintenance of its plant and machinery, The company is also planning the optimal manpower required for phase wise restarting and the recruitment process of the same.
30 Disclosure under IND AS - 108 - Segment Report: Operating Segments:
• Packaging - Corrugated Box
• Garment - Readymade Garments
• Knitted Fabrics - Knitted Fabrics
• Others - Fabrics, Yarn and Others
The chief operational decision maker (CODM) monitors the operating results of its business for the purpose of making decisions about resource allocation and performance assessment. Operating segments have been identified on the basis of the nature of products. Revenue and Expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses. Assets & Liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets & Liabilities are disclosed as un-allocable.
31 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these financial statements, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company’s financial statements may differ from that estimated as at the date of approval of these financial statements.
33 Previous Year’s figures are regrouped / reclassified / rearranged wherever necessary, to confirm to this year’s classification.