Footnotes:
1. Buildings includes 6 flats (March 31,2023 - 2 flats) which are classified as Investment Property by the Company in accordance with IND AS-40 "Investment Property”.
2. Cost of buildings includes cost of 2 shares (March 31,2023- 2 shares) of T 100 each fully paid in respect of ownership flats in 2 (March 31,2023- 2 flats) Co-operative Societies.
3. Rental income recognised by the Company during the year ended March 31,2024 was T 0.34 crore (March 31 2023: T 0.14 crore) and was included in 'Other income' (refer note 25).
4. The Company has not capitalised any borrowing cost during the current year (March 31,2023 - Nil).
5. Total fair value of Investment Property is T 26.93 crore (March 31,2023 T 7.24 crore).Refer footnote (a) and (b).
6. The Company has not recognised any impairment loss during the year (March 31,2023 - Nil) .
7. During the year, the Company transferred 4 flats from Aseets held for sale to Investment property having carrying value of T 1.23 crore. Depreciation of T 0.14 crore was charged off on account of transfer from assets held for sale.
8. The figures in italics are for the previous year.
9. Amount shows 0.00 represent less than ' 0.01crore.
(a) Fair Value Heirarchy
The fair value of investment property has been determined by external independent property valuers as defined under Rule(2) of Companies (Registered Valuers and Valuation) Rules 2017 ,having appropriate recognised professional qualification and recent experience in the location and category of the property being valued.
The fair value measurement for all of the investment property has been categoried as a level 3 fair value based on the inputs to the valuation techniques used.
(b) Description of Valuation Technique used:
The Company obtains Independent Valuations of its investment property as per requirement of Ind AS 40. The fair value of the investment property have been derived using the Direct Comparison Method.The direct comparison approach involves a comparison of the investment property to similar properties that have actually been sold in arms-length distance from investment property or are offered for sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located in close proximity to the investment property; these instances have been assessed for their locational comparative advantages and disadvantages while arriving at the indicative price assessment for investment property.
Goodwill includes amount of 3 165.22 crore (March 31, 2023 3 165.22 crore) allocated to Seeds business of Rallis India Limited (earlier named as Metahelix Life Sciences Ltd). The recoverable amount of Cash Generating Unit "CGU" was based on its value in use determined by discounting the future cash flows using discount rate of 10.9% (March 31, 2023 12.2%) for the period of 5 years using a 4.00 % (March 31,2023 2.00%) annual growth rate. The recoverable amount was determined to be higher than its carrying amount of CGU.
Goodwill of 3 30.60 crore (March 31,2023 3 30.60 crore) has been allocated to Geogreen business of Rallis India Limited (earlier named as Zero Waste Agro Organics Ltd). The recoverable amount of Cash Generating Unit "CGU" was based on its value in use determined by discounting the future cash flows using discount rate of 10.9% (March 31, 2023 12.2%) for the period of 5 years using a 5.00 % (March 31,2023 5.00%) annual growth rate. The recoverable amount was determined to be higher than its carrying amount of CGU.
An analysis of the sensitivity of the computation to a combined change in key parameters (operating margin, discount rates and long term average growth rate), based on reasonably probable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount.
1. The Company has not capitalised any borrowing cost during the current year (March 31,2023- Nil).
2. The Company has recognised impairment loss during the current year 3 Nil (March 31,2023 - Nil).
3. The Company has internally developed Seed development technology for producing hybrid seeds, which is Technical Knowhow. The Carrying amount of Seed development technology of 3 2.86 crore (March 31,2023 3 4.63 crore) will be fully amortized in next 3 years.
4. The figures in italics are for the previous year.
5. Amount shows 0.00 represent less than ' 0.01 crore.
During the year ended March 31, 2024, the company reviewed the carrying value of individual Intangible Assets under Development (IAUD) and determined their future economic benefits in accordance with IND AS 36 "Impairment of Assets" and the company's Accounting Policy. As a result of which the Company has determined that the carrying value of technical know-how related to seed development technology and product registration for some of the IAUDs was impaired. The impairment was primarily driven by changes in market conditions and significant changes in market segmental requirements. As a result of the impairment, the Company has recognized an expense of T 9.23 crore and T 30.16 crore for the year ended March 31,2024 and March 31,2023 respectively.
Footnote
Technical Knowhow project plans are assessed on annual basis and all the projects are executed as per rolling annual plan.
* Other projects consists of projects which have been grouped together as the individual project value is less than 10% of the total amount of intangible asset under development.
Also refer Note 32: Other Expenses
(a) There is no amount due from director, other officer of the Company or firms in which any director is a partner or private companies in which any director is a director or member at anytime during the reporting period.
(b) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(i) The cost of inventories recognised as an expense during the year was T 1,606.40 crore ( March 31,2023 T 1,940.01 crore).
(ii) The cost of inventories recognised as an expense includes T 4.43 crore (March 31, 2023 T 56.99 crore) in respect of adjustment of inventories to net realisable value/slow moving, and has been reduced by T 11.52 crore (March 31,2023 T 1.22 crore) in respect of reversal of such write-downs. In previous year,out of the total expense of T 56.99 crore, the company has recognised T 52.81 crore as provision for slow-moving seeds inventory arising due to re-assessment of future sales potential and changing market conditions.
(iii) The mode of valuation of inventories has been stated in note 3.14
(iv) The secured bank overdrafts and cash credit facilities are covered by first paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 11 and 18).
(i) The credit period ranges from 60 days to 180 days.
(ii) Before accepting any new customer, the Company assesses the potential customer's credit quality and defines credit limits by customer. Limits attributed to customers are reviewed periodically. Of the trade receivable balance as at March 31,2024, Customers with outstanding receivables greater than 5% amount to T Nil (as at March 31,2023 T Nil).
(iii) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.
(iv) Movement in the expected credit loss allowance
(i) The Company intends to dispose of 2 freehold lands and 1 building which it no longer utilises in the next 12 months. Additionally, during the year, the Company has sold a flat with carrying value of T 0.08 crore. The Company is currently in negotiation with some potential buyers. Neither impairment loss was recognised when reclassification of the assets as held for sale was done nor as at reporting date as the management of the Company expect that the fair value (estimated based on the recent market prices of similar assets in similar locations) less costs to sell is higher than the carrying amount except as disclosed in below footnote note (iii).
(ii) During the year, the Company has transferred 4 flats having carrying value of T 1.23 crore to Investment property and 1 flat having carrying value of T 0.02 crore to Property, plant and equipment from Assets held for sale as the Company was unable to make the sale at the expected price to potential buyers.
(iii) During the year, the Company has charged off an asset under the head "Buildings”, having carring value of T 0.12 crore of which T 0.10 crore (March 31,2023 - T Nil) has been charged as impairment of tangible asset (Refer note 32) and T 0.02 crore is included under depreciation (Refer note 31)
b. The Company has issued one class of equity shares having a par value of T 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
The Company has elected to recognise changes in the fair value of investments in equity instruments in other comprehensive income. These changes are accumulated within the Fair Value Through Other Comprehensive Income (FVTOCI) equity investments within equity. The balance in Other Comprehensive Income is transferred to retained earnings on disposal of the investment.
(i) Sales tax deferral scheme:
The loan is repayable in annual installments which ranges from a maximum of T 0.47 crore to a minimum of T 0.20 crore over the period stretching from April 1,2024 to March 31,2027. The amount outstanding is free of interest.
The balance outstanding as at March 31, 2024 is T 1.55 crore (March 31,2023 T 3.79 crore) of which T 0.47 crore (March 31, 2023 T 1.13 crore) has been grouped under note 18 Current Borrowings which are payable in next 12 months.
The Company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Total amount of working capital credit limits is T 157.5 crore (March 31,2023: T 235.50 crore from Consortium of Banks led by State Bank of India) . These facilities are secured against trade receivables and inventories. As on March 31,2024, amount utilised by the Company is T 71.6 crore (As at March 31,2023: T 158.24 crore).
(iv) Total amount of Unsecured working capital credit limits is T 593.5 crore (March 31,2023: T 475.50 crore) from multiple banks. As on March 31,2024, amount utilised by the Company is T 87.2 crore (As at March 31,2023: T 124.52 crore).
(v) During the previous year, the Company raised & repaid T 75 crore commercial papers borrowed for 85 days @ 7.05% p.a
(vi) The terms of short-term loan is stated below:
As at March 31, 2024
There is no unsecured short-term loan outstanding as on March 31,2024.
(i) The secured bank overdrafts and cash credit facilities are covered by first paripassu charge on inventories (including raw material, finished goods and work-in-progress) and trade receivables (refer note 10 and 11).
(ii) The weighted average effective interest rate on the bank overdraft and cash credit facility is 8.83% p.a.(for March 31,2023 8.06 % p.a.).
Due to the numerous uncertainties and variables associated with certain assumptions and judgments, and the effects of changes in the regulatory and legal environment, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. The Company regularly monitors its estimated exposure to such loss contingencies and, as additional information becomes known, may change its estimates significantly. However, no estimate of the range of any such change can be made at this time.
The provision for employee benefits includes gratuity, supplemental pay on retirement for certain employees, ex-director pension liability and compensated absences. The increase/decrease in the carrying amount of the provision for the current year is mainly on account of net impact of incremental charge for current year and benefits paid in the current year due to retirement and resignation of employees . For other disclosures, refer note 36.
34: Segment information
Products and services from which reportable segments derive their revenues
Information reported to the chief operating decision maker (CODM) for the purpose of resources allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. No operating segments have been aggregated in arriving at the reportable segments of the Company.
Based on the current operations, the Company has determined Agri inputs as reportable segments. Agri-inputs segment comprises of Pesticides, Plant Growth Nutrients, Organic Compost and Seeds. The other segment includes "Polymer".
For the purpose of monitoring segment performance and allocation resources between segments:
• All assets are allocated to reportable segments other than investments, other financial assets, non current tax assets, cash & bank balances, fixed deposits and interest accrued thereon.
• All liabilities are allocated to reportable segments other than borrowings, other financial liabilities, interest accrued on loans, provision for supplemental pay, Director pension scheme, unpaid dividend, current and deferred tax liabilities.
Geographical information
The Company operates in two principal geographical areas - India and outside India.
The Company's revenue from continuing operations from external customers by location of operations and information about its noncurrent assets* by location of assets are detailed below:
(i) Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (March 31,2023 ' Nil). The accounting policies of the reportable segments are the same as described in note 3.19.
(ii) Segment profit represents the profit before tax earned by each segment without allocation of central administration, director remuneration, director fees and commission, other income, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
There is no extension option available in any lease agreement. All the lease agreement are renewable based on mutual understanding between lessor and lessee.
All leases other than included above are of either low value or cancellable at the option of lessee.
The Company leases out its investment property. The Company has classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. All leases are cancellable leases hence disclosure relating to the same is not required (Refer note 25)
Contribution to provident fund and Employees' State Insurance Corporation (ESIC)
The Company makes provident fund contributions to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to government authorities (PF commissioner) at factories.
Amount recognised as expense and included in the Note 29 — in the head "Contribution to Provident and other funds" for March 31, 2024: T 9.56 crore (March 31,2023: T 9.32 crore).
The Company offers its employees, defined-benefit plans in the form of a gratuity scheme (a lump sum amount), a supplemental pay scheme (a life long pension) and ex-director pension liability. The gratuity scheme covers substantially all regular employees, ex-director pension liability covers ex-director and supplemental pay plan covers certain former executives. In the case of the gratuity scheme, the Company contributes funds to Gratuity Trust, which is irrevocable. Ex-director pension liability and supplemental pay scheme are not funded. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method.
These plans typically expose the Company to actuarial risk such as: investment risk, interest rate risk, longevity risk and salary risk.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets. Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.
The Company makes provident fund contributions to defined contribution retirement benefit plans for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company in case of certain locations. The Company is liable for contributions and any deficiency compared to interest computed based on the rate of interest declared by the Central Government under the Employees' Provident Fund Scheme, 1952 and recognises, if any, as an expense in the year it is determined.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in Balance Sheet.
There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The Company expects to make a contribution of T 5.10 crore (as at March 31,2023 T 3.20 crore) to the defined benefit plans during the next financial year.
The Company operates Provident Fund Scheme and the contributions are made to recognised fund. The Company is required to offer a defined benefit interest rate guarantee on provident fund balances of employees. The exempted funds guarantees the interest rate on provident fund investments which is equal to or higher than the rate declared by the Regional Provident Fund Commissioner (RPFC) on the provident fund corpus for their own subscribers. The Actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as on March 31, 2024 and March 31, 2023.
Amount recognised as expense and included in the Note 29 — in the head "Contribution to Provident and other funds" for the year ended March 31,2024 T10.97 crore (for March 31,2023 T10.76 crore).
As at March 31,2024, the fair value of the assets of the fund and the accumulated members' corpus is 2 137.50 crore and 2 130.84 crore respectively. In accordance with the assets and liability study, there is no deficiency as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest.
Compensatory absences
The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation. Amount of 2 3.81 crore (March 31, 2023 2 4.13 crore) has been recognised in the Statement of Profit and Loss on account of provision for long-term employment benefit.
37: Financial instruments Capital management
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 optimisation of debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 17.1 and 18, lease liabilities as per note 17.2, offset by cash and bank balances) and total equity of the Company.
The Company is not subject to any externally imposed capital requirements.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used:
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
The Company's corporate treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risk relating to the operation of the Company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The use of financial derivatives is governed by the Company's policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivatives financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade financial instrument, including derivative financial instruments, for speculative purposes.
The corporate treasury function reports quarterly to the Company's audit committee that monitors risks and policies implemented to mitigate risk exposures.
The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk including forward foreign exchange contracts to hedge the exchange rate risk arising on imports and exports.
Foreign currency sensitivity analysis
The Company is mainly exposed to the currency: USD, EUR, JPY, GBP, AED and CHF.
The following table details the Company's sensitivity to a 5% increase and decrease in the T against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit or equity where the T strengthens 5% against the relevant currency. For a 5% weakening of the ' against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.
The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to accounts receivable and accounts payable. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.
b) Other price risk Equity risk
There is no material equity risk relating to the Company's equity investments which are detailed in note 7 "Other investments". The Company's equity investments majorly comprises of strategic investments rather than trading purposes.
The Company is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the future market values of these investments. At March 31, 2024, the investments in mutual funds amounts to T 247.41 crore (March 31, 2023: T 219.44 crore). These are exposed to price risk. The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising from investments in mutual funds. A 1% increase/ (decrease) in prices would increase/(decrease) the profit or loss by the amounts shown below.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument that will fluctuate because of changes in market rates. The Company's exposure to the risk of changes in market rates relates primarily to the Company's non-current debt obligation with floating interest rates. The Company's policy is generally to undertake non-current borrowing using facilities that carry floating interest rate.
Moreover, the short-term borrowings of the Company do not have a significant fair value or cash flow interest rate risk due to their short tenure.
The credit risk related to the trade receivables is mitigated by taking security deposits / letter of credit - as and where considered necessary, setting appropriate credit terms and by setting and monitoring internal limits on exposure to individual customers.
There is no substantial concentration of credit risk as the revenue and trade receivables from any of the single customer do not exceed 10% of Company revenue and trade receivables.
The credit risk on investment in mutual funds and derivative financial instruments is limited because the counter parties are reputed banks or funds sponsored by reputed bank.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
All current financial liabilities are repayable within one year. The contractual maturities of non-current liabilities are disclosed in note no. 18.
The following tables detail the Company's remaining contractual maturity for its non-derivative and derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.
Cash flow sensitivity analysis for variable rate instrument
Current variable interest rate borrowings
If the interest rate is 100 basis point higher (lower), the impact on profit or loss would be decreased by T NIL (increased by T NIL) and as at March 31,2024: decreased by T 0.35 crore (increased by T 0.35 crore).
Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers.The Company's exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties. Outstanding customer receivables are reviewed periodically. Provision is made based on expected credit loss method and specific identification method (refer note 11- Trade receivable).
The Company has included both the interest and principal cash flows in the analysis. This best represents the liquidity risk being faced by the Company.
The cash flow related to derivative financial liabilities disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.
39: Contingent liabilities
The Company is involved in a number of appellate, judicial and arbitration proceedings (including those described below) concerning matters arising in the course of conduct of the Company's businesses. Some of these proceedings in respect of matters under litigation are in early stages, and in some other cases, the claims are indeterminate. A summary of claims asserted on the Company in respect of these cases have been summarised below.
Particulars
As at
March 31, 2024
March 31, 2023
Income Tax matters (Refer table (b) below)
143.57
170.33
Indirect Tax matters (Refer table (b) below)
60.16
50.34
Legal and Other matters (Refer table (c) below)
56.56
52.49
(i) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
(ii) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required or disclosed as contingent liabilities where applicable, in its financial statements.
Guarantees issued by bank on behalf of the Company as on March 31,2024 is T 21.96 crore (March 31,2023 T 19.79 crore). Out of these T 20.51 crore are covered by the charge created in favour of the said Company's bankers by way of hypothecation of stock and debtors.
Other claims include demand notices received from Mumbai Port Authority (MBPA) on four godowns taken on lease by the company from MBPA towards differential arrears of rentals for the years 2012 upto 2022 and Revised rates (SOR) from 2022 upto 2027 for these godowns. Based on the legal advice received by the Company, the demand (retrospective and prospective both) raised by the MBPA is challenged before the Bombay High Court by way of Writ petitions. The company has also filed the Writ petition for surrender of all godowns except 2 godowns.
Management is generally unable to reasonably estimate a range of possible loss for proceedings or disputes other than those included in the estimate above, including where:
(i) plaintiffs / parties have not claimed an amount of money damages, unless management can otherwise determine an appropriate amount;
(ii) the proceedings are in early stages;
(iii) there is uncertainty as to the outcome of pending appeals or motions or negotiations;
(iv) there are significant factual issues to be resolved; and/or
(v) there are novel legal issues presented.
However, in respect of the above matters, management does not believe, based on currently available information, that the outcomes of the litigation, will have a material adverse effect on the Company's financial condition, though the outcomes could be material to the Company's operating results for any particular period, depending, in part, upon the operating results for such period.
40: Commitments
(i) Estimated amount of contract with minimum commitment for plant activity T 14.24 crore (March 31,2023 T 22.79 crore).
(ii) Estimated amount of contracts remaining to be executed on capital account of property, plant and equipment is T 12.81 crore as at March 31, 2024 (March 31,2023 T 30.52 crore) and Intangible assets is T 3.43 crore as at March 31, 2024 (March 31, 2023 T 2.25 crore) against which advances paid aggregate T 1.36 crore as at March 31,2024 ( March 31,2023 T 1.41 crore).
The management believes that the claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of above matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period. Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.
During the year, the Company has also incurred T 2.13 crore (March 31,2023 T 2.17 crore) towards capital research and development expenditure which is included under capital work-in-progress.
The total amount included in intangible assets under development (net of provision) as at March 31,2024 is T 39.96 crore (as at March 31,2023 T 47.22 crore).
Footnote:
The above figures include the amounts based on separate accounts for the Research and Developments ("R&D") Centre recognised by the Department of Scientific & Industrial Research ("DSIR"), Ministry of Science and Technology for in-house research (consonance with the DSIR guidelines for in-house R & D Centre will be evaluated at the time of filing the return with DSIR).
In the previous year, Company had disclosed an immovable property of ' 0.57 crore. During the current year, the Company has filed a declaratory suit with regards to the title in respect of the flats. The said suit is decreed in lieu of the Consent terms filed by the Parties in the Bombay High Court, wherein the Co-operative Housing Society has accepted that the Company is the member/owner of the said flats. The share certificates are issued by the Co-operative Housing Society in the name of Company. Therefore, the same is removed from the disclosure in the current year.
50: Other Statutory Information:
i. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year
iii. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender
iv. The Company has not entered in to any 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).
51: Exceptional item as disclosed in Statement of Profit and Loss for the year ended March 31,2024, comprises profit on sale of flat (net of costs) of T 0.68 crore (March 31,2023'0.62 crore comprises profit on sale of land)
52: Subsequent event
The Board of Directors at its meeting held on 22 April, 2024 has recommended a dividend of T 2.50 per equity share (March 31,2023 T 2.50 per equity share), subject to shareholders approval at annual general meeting.
53: In the current year, the Company has adopted to present numbers in crore.
54: The MCA wide notification dated March 24, 2021 has amended Schedule III to the Companies Act, 2013 in respect of certain disclosures. The Company has incorporated appropriate changes in the financial statements of 31 March, 2024 and 31 March, 2023.