(E) There were no equity shares allotted as fully paid up pursuant to contracts without payment received in cash, there were no bonus shares allotted and there were no equity shares bought back, during the period of 5 years immediately preceding the Balance Sheet date.
(F) The Company has one class of equity shares having par value of ' 10/- per share.
In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity share held by the shareholders.
Nature and Purpose of Reserves
(a) Capital reserve
Any profit or loss on purchase, sale, issue or cancellation of the Company's own equity instruments is transferred to capital reserve.
(b) Capital redemption reserve
A statutory reserve created to the extent of sum equal to the nominal value of the share capital extinguished on buyback of company's own shares pursuant to Section 69 of the Companies Act, 2013. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013.
(c) Securities premium account
Securities premium reserve is credited when shares are issued at a premium. It is utilized in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares, write-off equity related expenses like underwriting costs, etc.
(d) General reserve
General reserve is a free reserve, which is created by transferring funds from retained earnings to be used time to time to transfer profits from retained earnings for appropriation purposes.
(e) Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to General Reserve and payment of dividend
(f) Other items of other comprehensive income
Other items of other comprehensive income consist of re-measurement of net defined benefit liability/asset.
(g) Dividends declared by the Company are based on profits available for distribution. During financial year 2024-25 Company has paid final dividend of ' 2 per share in respect of the year ended 31 March 2024.
(h) The Board of Directors of the Company at the meeting held on 16 May 2025 proposed a dividend of ' 3.5 per share (previous year ' 2 per share) subject to approval of the members at the ensuing Annual General Meeting
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34. Contingent Liabilities and Capital Commitments a) Contingent Liabilities
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(' in lakhs)
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| |
Sr.
No
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Particulars
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As at
31 March 2025
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As at
31 March 2024
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| |
|
Claims against the Company not acknowledged as debt:
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|
|
| |
(i)
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Octroi (classification of raw materials)*
* Includes ' 142 lakhs (31 March 2024: ' 142 lakhs) for which bank guarantee has been given and shown under note below 34 (a)(vi)
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243
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243
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| |
(ii)
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Disputed income tax demands in respect of deductions/disallowances for earlier years pending with Appellate Tribunals (Determination of nature of receipt)
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30
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30
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| |
(iii)
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Disputed income tax demands in respect of deductions/disallowances for earlier years pending with Income Tax Authorities
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373
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623
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| |
(iv)
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Disputed Goods and Service Tax demands related to input tax credit claims
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210
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_
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| |
(v)
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Service Tax (Dispute on availment of cenvat on exempt goods)
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54
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54
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| |
|
|
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The Board of Directors at the meeting held on 16 May 2025 proposed a dividend of ' 3.5 per share (previous year ' 2 per share) subject to approval of the members at the ensuing Annual General Meeting.
37. Disclosure of Employee Benefits as per Ind AS 19 is as under:
i) Defined contribution plans:
The Company makes contributions towards provident fund and Employees State Insurance Scheme Contributions which are defined benefit contribution plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits. The provident fund plan is operated by the Government administered employee provident fund. Eligible employees receive the benefits from the said Provident Fund. Both the employees and the Company make monthly contribution to the Provident Fund plan equal to a specific percentage of the covered employee's salary. The Company has no obligations other than to make the specified contributions.
The Company has recognised the following amounts in the standalone statement of Profit and Loss
ii) Defined benefit plan:
The Company earmarks liability towards funded group gratuity and provides for payment to vested employees as under:
a) On Normal retirement/ early retirement/ withdrawal/resignation:
As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.
b) On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
The Company also provided for protected Gratuity calculated based on additional 15 days of service for all employees upto 1 December 2003.
The Company has established an income tax approved irrevocable trust fund to which it regularly contributes to finance liabilities of the plan. The fund's investments are managed by insurance company as per the mandate provided to them by the trustees and the asset allocation is within the permissible limits prescribed in the insurance regulations.
The most recent actuarial valuation of the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2025 by an independent actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
The following table sets out the status of the gratuity plan and the amounts recognised in the Group's financial statements as at 31 March 2025
43. Financial instruments - Fair values and risk management A. Accounting classification and fair values
The Company uses the following hierarchic structure of valuation methods to determine and disclose information about the fair value of financial instruments:
Level 1: inputs to valuation are quoted (unadjusted) prices in active markets for identical assets and liabilities;
Level 2: inputs to valuation are other than quoted prices included in level 1 that are observable for asset or liability, either directly or indirectly;
Level 3: inputs are not based on observable market data. Fair value are determined in whole or in part using a valuation model based on assumption that are either supported by prices from observable current market transaction in the same instruments nor are they based on available market data.
B. Measurement of fair values
The Management assessed that cash and bank balances, trade receivables, trade payables, cash credit and other financial assets and liabilities approximate their carrying amounts largely due to short-term maturities of these instruments.
The following methods and assumptions were used to estimate the fair value. a) The fair value of the quoted investments/units of mutual fund scheme are based on market price/net asset value at the reporting date.
i. Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
i. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt securities.
The carrying amount of following financial assets represents the maximum credit exposure:
Trade and other receivables
Trade receivables are consisting of a large number of customers. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The Risk Management Committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly.
The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.
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 due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The majority of the Company's Trade receivables are due for maturity within 60 days from the date of billing to the customer. Further, the general credit terms for Trade payables are approximately 45 days. The difference between the above mentioned credit period provides sufficient headroom to meet the short-term working capital needs for day-to-day operations of the Company. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, are retained as Cash and Investment in short term deposits with banks. The said investments are made in instruments with appropriate maturities and sufficient liquidity.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Exposure to interest rate risk
Company's interest rate risk arises from borrowings and fixed income securities. Fixed income securities exposes the Company to fair value interest rate risk. The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the Company is as follows.
The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
44. Capital Management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The Company monitors capital using a ratio of ‘adjusted net debt' to ‘total equity'. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.
47. Events after the reporting period
No significant adjusting event occurred between the balance sheet date and date of the approval of these financial statements by the Board of Directors of the Company requiring adjustment or disclosure.
48. Exceptional Items
a. During the current year, the Company sold its tenancy rights to a property situated in Mumbai for a total consideration of ' 153 lakhs. This transaction has resulted in a gain of ' 153 lakhs, which has been recognized as an exceptional item in the financial statements.
b. Loss by fire at Dahej Plant
Pursuant to a fire incident on 22 November 2020 at Dahej factory situated at Plot no. D-2/20, GIDC, Tal. Vagra, Dist. Bharuch - 392130, Gujarat, certain property, plant and equipment and inventory were damaged. It also disrupted the production process and impacted the financial performance of the Company for the year ended 31 March 2021. As a result of the incident, the Company had recognised a loss of ' 4,932 lakhs (' 4,326 lakhs towards property plant and equipment, ' 581 lakhs towards inventories and ' 25 lakhs towards other expenses) as an exceptional item in the standalone financial results for FY 2020-21. The Company's assets and inventories are covered under an Insurance policy and a claim has been lodged with the Insurance Company for the losses suffered. The Company has received an interim payment towards insurance claim of ' 400 lakhs in FY 2021-22 and stock insurance claim of ' 285 lakhs in FY 2022-23. During the previous year, the Company has received full and final settlement of fire insurance claim amounting to ' 2,058 lakhs on 12 September 2023 which is recognised as an exceptional item.
49. Other Statutory Information
(i) The Company did not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.
(ii) No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule 111:
(a) Crypto Currency or Virtual Currency
(b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
(c) Registration of charges or satisfaction with Registrar of Companies
(d) Approved scheme(s) of Arrangements
(e) Number of layers of companies
(f) Undisclosed income
(g) Revaluation of PPE and intangible assets
(h) Title Deeds of immovable properties not held in name of the company
(i) Wilful defualter
(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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
(iv) The Company has not received any fund from any person(s) or entity(ies), 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
(v) The Company has borrowings from bank on the basis of security of current assets. The quarterly returns or statement of current assets filed by the Company with banks are in agreement with the books of accounts.
50 Information with regard to other matters specified in Schedule III to the Act is either nil or not applicable to the Company for the year.
51 The Code on Social Security, 2020 (‘Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
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