(b) 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 shares is entitled to one vote per share.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.
The Company did not declare any dividend on equity shares for the year ended 31 March 2021 and 31 March 2020. The dividend if proposed by the Board of Directors, is subject to the approval of shareholders in the Annual General Meeting, except interim dividend.
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(d) Shares reserved for issue under option
The Company has not reserved any shares for issuance under options
(e) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date
The Company has issued bonus shares in the ratio of 2:1 on 27.03.2020, for consideration other than cash. However there is no buyback of shares in the current year and preceding five years from 31 March 2021
d) The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
36 Financial risk objective and policies
The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations/projects and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
In the ordinary course of business, the Company is mainly exposed to risks resulting from interest rate movements (interest rate risk) collectively referred as market risk, credit risk, liquidity risk and other price risks such as equity price risk. The Company's senior management oversees the management of these risks.
The Company's risk management activities are subject to the management, direction and control of Treasury Team of the Company under the framework of Risk Management Policy for Currency and Interest rate risk as approved by the Board of Directors of the Company. The Company's central treasury team ensures appropriate financial risk governance framework for the Company through appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings.
The sensitivity analysis in the following sections relate to the position as at March 31, 2021 and March 31, 2020.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities
held at March 31, 2021 and March 31, 2020.
b) Credit risk
Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.
Credit risk from balances with banks and financial institutions is managed by the Company's treasury team in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and maybe updated throughout the year subject to approval ofthe Company's Finance Committee. The limits are setto minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
c) Liquidity risk
Liquidity risk is the risk that the company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial assets. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.
g) Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. The sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:
42 Capital management
For the purposes of the company's capital management, capital includes issued capital and all other equity reserves. The primary objective of the company's capital management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
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 interest-bearing loans and 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 interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2021 and March 31, 2020 43 Disclosure under Para 44A as set out in Ind AS 7 on cash flow statements under Companies (Indian Accounting Standards) Rules, 2017 (as amended)
44 Standards Issued but not
As at the date of issue of financial statements, there are no new standards or amendments which have been notified by the MCA but not yet adopted by the Company. Hence, the disclosure is not applicable.
45 COVID 19 Impact
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Parameter
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Response
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Impact of Covid-19 Pandemic on Business
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Global pandemic, Covid-19 has started to surface significantly by mid-March 2020 forcing government to take decisive rules including lockdown.
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Ability to maintain operations including the factories/units/office spaces functioning and closed down;
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The plant operations were smooth adhering to social distancing and other health hygienic norms directed by the government. Working from home was preferred for selected team members considering safety and smooth functioning.
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Schedule, if any, for restarting the operations;
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This is not Applicable
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Steps taken to ensure smooth functioning of operations;
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The Company has volunteered for ensuring proper screening and social distancing once the directive has been delivered by the government health authorities:
- There was mandatory thermal screening for all employees, workers and visitors
- Mask has been made mandatory for all
- Sanitization has been done inside premises and for vehicles at regular intervals
- Hand sanitizers have been placed at key locations
- Travelling has been cancelled for overseas and domestic business development
- Social distancing has been practiced with proper space allocation within premise
- Awareness on government directives has been initiated through posters
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Estimation of the future impact of CoVID-19 on its operations;
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It is difficult to predict situation that has drastically changed since past few months. However, the Company is well placed to be confident to adapting to the changing business environment as it has done during this COvid-19 phase.
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Aakash Exploration Services Limited CIN : L23209GJ2007PLC049792
Notes to standalone financials statements for the year ended 31 March 2021
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Details of impact of CoVID-19 on:
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- Capital & Financial Resources: The Company is very comfortably leveraged with very insignificant impact.
- Profitability: The Company is confident of meeting the estimated profitability in line with the past track record.
- Liquidity Position: The Company has been able to meet its financial obligations, collections from debtors has been impacted marginally, which the company expects to fall in line with the past trends by the end of second quarter. The Company is supporting its customers by extending the credit days marginally with very insignificant impact on liquidity position of the company.
- Ability to service debt and other financing arrangements: Very insignificant.
- Assets: Nil
- Internal Financial Reporting & Control: Very insignificant.
- Supply Chain: It has delayed the availability of Active Pharmaceutical Ingredient in initial phase by few days and affected the transportation cost of finished formulation, which Company is passing on to the Customers
- Demand for products/ services: Usual
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Existing contracts/agreements where nonfulfilment of the obligations by any party will have significant impact on the listed entity's business;
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The Company is not anticipating any non-fulfilment, as Company operates in Essential Service sector-Pharmaceutical Manufacturing, in which there was no restriction. Also there was no restriction on any manufactured product of the Company for exports to multiple countries based on government guidelines.
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Other relevant material updates about the Company's business;
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No
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47 Approval of financial statements
The financial statements were approved for issue by the board of directors on 28th June, 2021. The accompanying notes form an integral part of financials statements
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