Notes to Accounts of GRM Overseas Ltd.

Mar 31, 2023

Note - During the previous financial year 2021-22, the company has issued bonus shares in the ratio of 2:1 and also sub-divided equity share of face value of Rs. 10/- per share into five equity shares of face value of Rs. 2/- per share. Consequently, the basic and diluted earnings per share have been computed for all the periods presented in the Standalone Ind AS Financial Statements of the Company on the basis of the new number of equity shares in accordance with Ind AS 33 - Earnings per Share.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

A) 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 financial assets represents the maximum credit exposure.

- trade receivables.

- other current financial Assets

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets. A: Low B: Medium C: High

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become past due one year.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the company operates.

Maturities of financial liabilities

The tables below analyze the Company’s financial liabilities into relevant maturity of the Company based on their contractual maturities for all non-derivative financial liabilities.

C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company.

(ii) Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates of USD, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur. Accordingly, no sensitivity analysis in respect of such loans is given. The Company’s exposure to foreign currency changes for all other currencies is not material.

A positive number represents decrease in profits while a negative number represents increase in profits. b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any non current obligations with floating rate of interest. The Company has floating rate of interest in respect of current borrowings.

37. Other Statutory Information

1. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

2. The Company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

3. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

4. The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

5. 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

6. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

7. The Company has not received any fund from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall :

8. (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

9. (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

10. The Company has not any such 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.

11. The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

38. Capital management

The Company’s capital management objectives are:

- to ensure the Company’s ability to continue as a going concern.

- to provide an adequate return to shareholders.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt. The Company’s adjusted net debt to equity ratio as at year end were as follows:

40. Note for Contingent assets / Liabilities (Amount in lakhs unless otherwise stated)
Contingent Liabilities & Commitments	As at 31st March, 2023	As at 31st March, 2022
Contingent Liabilities :
Claim against the company not acknowledged as debt guarantees	-	-
Corporate Guarantee for Subsidiary Loan	750.00	750.00
Other money for which the company is contingently liable	-	-
Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for	-	-
Uncalled liability on shares and other investments party paid	-	-
Other commitments (specify nature)	-	-
Total	750.00	750.00

43. The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

44. The Company is predominantly engaged in the single business segment of food sector.

45. Approval of financial Statements

The financial statements were approved by the board of directors on 24th May, 2023.

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Mar 31, 2018

1. No information has been received by the Company from the creditors whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006.

2. Corporate Social Responsibility (CSR)

a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs,14.10 lakh (Previous Year Rs,12 lakh).

b) Expenditure related to Corporate Social Responsibility is Rs,13 lakh (Previous Year Rs,12 lakh).

3. Capital Management

The Company manages its capital to ensure that it will continue as going concern while maximizing the return to stakeholders. The Company manages its capital structure and make adjustment in light of changes in business condition. The overall strategy remains unchanged as compare to last year.

4. The Company is mainly engaged in ‘Rice Sheller’ activity. All the activities of the Company revolve around this main business. Accordingly, the Company has only one identifiable segment reportable under Ind AS 108 “Operating Segment”. The Executive Director (the ‘Chief Operational Decision Maker as defined in Ind AS

108 - Operating Segments) monitors the operating results of the entity’s business for the purpose of making decisions about resource allocation and performance assessment.

5. The Board of Directors have recommended payment of dividend of ''''5/- per fully paid up equity share of ''10/each, aggregating ''216.71 lakh including ''32.23 lakh dividend distribution tax for the financial year 2017-18. Dividend has been provided subject to members approval at the ensuing 24th Annual General Meeting.

6. The financial statements were approved for issue by the Board of Directors at its meeting held on 26th May, 2018

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Mar 31, 2015

1. General Information

GRM Overseas Limited (the 'Company') is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed on one stock exchange in India. The Company is engaged in the business of manufacturing and trading of Rice.

2. No information has been received by the Company from the creditors whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006.

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Mar 31, 2014

1. General Information

GRM Overseas Limited (the ''Company'') is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed on one stock exchange in India. The Company is engaged in the business of manufacturing and trading of Rice.

2.0 Cash and Cash Equivalent

In the Cash Flow Statement, cash and cash equivalents include cash on hand, demand deposits with banks, other short-term highly liquid investments, if any, with original maturities of three months or less.

2.1 Earning Per Share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

3. Share Capital

(a) Rights, preference and restrictions attached to shares issued: The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend if 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."

(b) Detail of shares held by shareholders holding more than 5% of the aggregate shares in the Company."

4. No information has been received by the Company from the creditors whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006.

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Mar 31, 2013

1. General Information

GRM Overseas Limited (the ''Company'') is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed on one stock exchange in India. The Company is engaged in the business of manufacturing and trading of Rice.

NOTE 2

No information has been received by the Company from the creditors whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006.

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Mar 31, 2012

1. General Information

GRM Overseas Limited (the 'Company') is a public limited company domiciled in India, incorporated under the provisions of the Companies Act, 1956 and is listed on one stock exchange in India. The Company is engaged in the business of manufacturing and trading of Rice.

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Mar 31, 2010

1. Cash credit facilities availed from S.B.I., G.T. Road, Panipat are secured by the hypothecation of inventories and personal guarantee of directors.

2. The outstanding balance of debtors, creditors etc. are subject to confirmation & reconciliation.

3. The Company generally follows mercantile system of accounting and recognizes income and expenditure on accrual basis except taxes, interest & penalties by sales tax authorities, which are taken on payment basis.

4. Previous year figures have been regrouped/rearranged wherever necessary.

5. Additional Information

a. Class of goods manufactured Rice.

b. Capacity/Licensed

c. Installed

6. Expenditure on employees

Employees in receipt of remuneration in aggregate not less than Rs. 12,00,000/- per annum if employed throughout the year or Rs. 1,00,000/- per month if employed for the part of the year. No. of employees : NONE Amount : Nil