Note : During the previous year ended 31st March, 2023 the Company has issued equity shares of face value of Rs. 10 each as bonus shares in the proportion of two bonus equity share of face value of Rs. 10 each for every one equity share of face value of Rs. 10 held.
(ii) Details of rights, preferences and restrictions attached to the shares
The company has only one class of equity shares and the holders of these ordinary shares are entitiled to receive dividends as and when declared by the company. All shares rank equally with regard to the company's residual assets.
Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in
To maintain or adjust the
capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings, less cash and cash equivalents, excluding discontinued operations.
In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the current period. All the borrowings have been paid in full in the current period and there is no balance of outstanding borrowing as at 31 March 2024.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024.
As company has no Net Debt Gearing ratio is Not Applicable Dividends
The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The Company declares and pays dividends in Indian rupees.
Companies are required to pay / distribute dividend after deducting applicable withholding income taxes.
The Board of Directors, at its meeting on May 28, 2024, recommended a final dividend of Rs. 9 per equity share for the financial year ended March 31,2024. This payment is subject to the approval of shareholders in the Annual General Meeting (AGM) of the Company.
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 board of directors along with the top management are responsible for developing and monitoring the Company's risk management policies.
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 Company's 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,
ii. 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 trade receivables, certain loans and advances and other financial assets.
The carrying amount of financial assets represents the maximum credit exposure The maximum exposure to credit risk for trade and other receivables are as follows:
Trade receivables
The Company has developed guidelines for the management of credit risk from trade receivables. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
28. Financial instruments - Fair value and risk management
Trade receivables
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue, Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.
The Company's exposure to credit risk for trade receivables by relationship is as follows:
Cash and cash equivalents
The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.
Investments in equity instruments
Investments in equity instruments majorly includes investment in equity shares of Co-operative banks in furtherance of the credit facities taken by Company from these banks. The credit worthiness of such banks are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.
iii. Liquidity risks
lliquidity 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.
iv. Market risks
Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is not exposed to market risk primarily related to foreign exchange rate risk (currency risk). It however is exposed to interest rate risk. Thus the Company’s exposure to market risk is just a function of borrowing activities as it doesnot have any transactions in foreign currency which leads to currency risk.
(d) There is no provision to be made with respect to any liability incurred by entering into a contractual obligation.
33. Operating segment
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components and for which discrete financial information is available. The Company’s chief operating decision-maker (CODM) is considered to be the Company’s Managing Director ('MD'). The Company is engaged in the business of Productions of wood adhesives which are widely used in fast moving consumer market on days. Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the context of Operating Segment as defined under the Indian Accounting Standard 108 'Segment Information', there is no separate reportable segment. Further Company sells its products only in India and hence there is no separate reportable segment in this context.
(I) There are no amounts due to or due from related parties which have been written off/written back during the year. (ii) Remuneration does not include Gratuity and Leave encashment which is computed for the Company as a whole. Additional Regulatory Information
35. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 2(a) on Property, plant and equipment to the financial statements, are held in the name of the Company.
36. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
37. Willfull Defaulter
(I) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
38. The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
39. The Registration of charge in respect of secured loans filed to ROC beyond the statutory period is NIL.
40. The company does not have any subsidiary. Therefore clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
42. There is no scheme of arrangements approved by the competent authority in terms of section 230 to 237 of the companies Act, 2013 during the year.
43. The Company has not advanced or loaned or invested funds to any other person or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
44. The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
45. The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
46. The Company has not surrendered or disclosed as income or the previously unrecorded income and related assets during the year in the tax assessments which are not recorded in the books of accounts of the company.
47. The Company has not traded or invested in Crypto currency or ^rtual Currency during the financial year.
48. Disclosures under Rule 11(f) of the Company (Audit & Auditors) Rule, 2014 - Dividends
The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The Company declares and pays dividends in Indian rupees.
49. Previous year figures have been recasted/restated wherever necessary including those as required in keeping with revised Schedule III amendments.
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