Mar 31, 2023
Terms/rights attached to Equity shares :
The Company has only one class of issued Equity Shares having a par value of '' 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 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 residual assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Borrowings from Banks is towards Working Capital as per below details:
I) Union Bank of India '' 3,381.34 Lakhs (as at March 31, 2022: '' 2,982.65 Lakhs).
ii) Punjab National Bank '' 1,187.45 Lakhs ( as at March 31, 2022: '' 1,130.85 Lakhs).
iii) Bank of Baroda '' 546.35 Lakhs (as at March 31, 2022: '' 506.95 Lakhs).
iv) The Mehsana urban Co-op Bank Ltd '' 425.25 Lakhs (as at March 31, 2022: '' 363.88 Lakhs).
All the above loans are secured by pari passu mortgage of building, plant/machinery & factory land at Ahmedabad. Also, secured against pari passu charge on hypothecation of Inventories and Book debts of the textile division, by mortgage of the property in Sewree, Mumbai held by one of our group company and by pledge of Equity Shares of Swan Energy Limited held by the promoters/group company(s).
With respect to disclosure of fair value of financial instruments such as cash and cash equivalents, other bank balances, trade receivables and other receivables, other current and non current financial assets, borrowings and other current financial liabilities at March 31, 2023 and March 31, 2022 are similiar to carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.
The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework, which is reviewed by them periodically.
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, loans and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Company''s maximum exposure to credit risk as at March 31, 2022 is the carrying value of each class of financial assets.
i. Trade and other receivables
Credit risk on trade receivables is limited based on past experience and management''s estimate.
The Company held cash and bank balance with credit worthy banks of '' 960.77 Lakhs at March 31, 2023 (March 31, 2022: '' 1,049.82 Lakhs). The credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks where credit risk is largely perceived to be extremely insignificant. Further the Company has an interest accrued but not due on above fixed deposits of '' 4.90 Lakhs at March 31, 2023 (March 31, 2022: '' 50.97 Lakhs).
b Liquidity Risk
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.
Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. The Company manages its liquidity risk by preparing monthly cash flow projections to monitor liquidity requirements. In addition, the Company projects cash flows and considering the level of liquid assets necessary to meet these, monitoring the Balance Sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
i . Exposure to Liquidity Risk
The company has outstanding borrowing through Current and Non-Current borrowings from Banks / NBFCs and third parties.
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices and will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments.
i. Currency Risk
The Company is exposed to currency risk on account of its trade and other payables in foreign currency. The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company does not have any exposure in foreign currency.
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
According to the Company interest rate risk exposure is only for floating rate borrowings. Company does not have any floating rate borrowings on any of the Balance Sheet date disclosed in this financial statements.
Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in quoted instruments and units of mutual funds.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or financial liabilities at fair value through Profit or Loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial Assets or Financial Liabilities.
37. Employee Benefits - Gratuity
Gratuity is payable to all eligible employees of the company on superannuation, death and permanent disablement in terms of provisions of the payment of Gratuity Act as per the Company''s Scheme whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn base salary.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
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 the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Gratuity is payable as per entity''s scheme as detailed in the report.
Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.
Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation.
Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value.
Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.
Para 139 (a) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (unfunded). The entity''s defined benefit gratuity plan is a final salary plan for employees.
Gratuity is paid from entity as and when it becomes due and is paid as per entity scheme for Gratuity. Para 139 (b) Risks associated with defined benefit plan
Gratuity is a defined benefit plan and entity is exposed to the Following Risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. entity has to manage pay-out based on pay as you go basis from own funds.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Para 139 (c) Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
Para 147 (a)
Gratuity plan is unfunded.
42 Corporate Social Responsibility
For detailed information on Corporate Social Responsibility, refer point no. 9.10 (ii) of Director''s Report.
Based on the "Management Approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators of business, the segments in which the Company operates. The Company is primarily engaged in textile and Property development/others which the Management and CODM recognise as the business segments and accordingly the following information is given.
- All development and Trading activity have been undertaken in India only, hence Geographical segment reporting is not required.
44 Standards issued but not effective
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.
For the purposes of the company''s capital management, capital includes issued capital and all other equity. 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. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year. No changes were made in the objectives, policies, or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.
46 Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder:
There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
47 The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with the books of accounts.
48 The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
49 Relationship with Struck off Companies:
The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.
There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.
51 Previous Year''s figures are regrouped/rearranged wherever necessary.
Mar 31, 2022
The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework, which is reviewed by them periodically.
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Company''s maximum exposure to credit risk as at March 31, 2022 is the carrying value of each class of financial assets.
i. Trade and other receivables
Credit risk on trade receivables is limited based on past experience and management''s estimate.
The Loans have been given in the ordinary course of business and the management does not expect any impairment in the same.
Carrying amount of Loans that were not impaired was as follows -
The Company held cash and bank balance with credit worthy banks of '' 1,049.82 Lakhs at March 31, 2022 (March 31, 2021: '' 1,462.50 Lakhs). The credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks where credit risk is largely perceived to be extremely insignificant. Further the Company has an interest accrued but not due on above fixed deposits of '' 50.97 Lakhs at March 31, 2022 (March 31, 2021: '' 20.37 Lakhs).
b Liquidity Risk
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.
Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. The Company manages its liquidity risk by preparing monthly cash flow projections to monitor liquidity requirements. In addition, the Company projects cash flows and considering the level of liquid assets necessary to meet these, monitoring the Balance Sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
i. Exposure to Liquidity Risk
The company has outstanding borrowing through Current and Non-Current borrowings from Banks / NBFCs and third parties.
* The amount shown under ''Borrowings - (Current)'' includes advances received from subsidaries, other related parties and other third parties. These have been received in the ordinary course of business and are repayable on demand.
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices and will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments.
i. Currency Risk
The Company is exposed to currency risk on account of its trade and other payables in foreign currency. The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company does not have any exposure in foreign currency.
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
According to the Company interest rate risk exposure is only for floating rate borrowings. Company does not have any floating rate borrowings on any of the Balance Sheet date disclosed in this financial statements.
Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in quoted instruments and units of mutual funds.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or financial liabilities at fair value through Profit or Loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial Assets or Financial Liabilities.
36. Employee Benefits - Gratuity
Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement in terms of provisions of the Payment of Gratuity Act as per the Company''s Scheme whichever is more beneficial. Benefit would be paid at the time of seperati''on based on the last drawn base salary.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. 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 the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
Gratuity is payable as per entity''s scheme as detailed in the report.
"Actuarial gains/losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation."
Salary escalation & attrition rate are considered as advised by the entity; they appear to be in line with the industry practice considering promotion and demand & supply of the employees.
Maturity Analysis of Benefit Payments is undiscounted cashflows considering future salary, attrition & death in respective year for members as mentioned above.
Average Expected Future Service represents Estimated Term of Post - Employment Benefit Obligation. Weighted Average Duration of the Defined Benefit Obligation is the weighted average of cash flow timing, where weights are derived from the present value of each cash flow to the total present value. Any benefit payment and contribution to plan assets is considered to occur end of the year to depict liability and fund movement in the disclosures.
Qualitative Disclosures
Para 139 (a) Characteristics of defined benefit plan
The entity has a defined benefit gratuity plan in India (unfunded). The entity''s defined benefit gratuity plan is a final salary plan for employees.
Gratuity is paid from entity as and when it becomes due and is paid as per entity scheme for Gratuity." Para 139 (b) Risks associated with defined benefit plan
Gratuity is a defined benefit plan and entity is exposed to the Following Risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will
increase the plan''s liability.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. entity has to manage pay-out based on pay as you go basis from own funds.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Para 139 (c) Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
41. Corporate Social Responsibility
For detailed information on Corporate Social Responsibility, refer point no.8.5 of Director''s Report.
Based on the "Management Approach" as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators of business, the segments in which the Company operates. The Company is primarily engaged in textile and Property development/others which the Management and CODM recognise as the business segments and accordingly the following information is given.
i) All development and Trading activity have been undertaken in India only, hence Geographical segment reporting is not required.
43 Standards issued but not effective
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.
For the purposes of the company''s capital management, capital includes issued capital and all other equity. 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. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year. No changes were made in the objectives, policies, or processes for managing capital during the years ended March 31, 2022 and March 31, 2021.
45 Proceedings under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder:
There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder"
46 The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with the books of accounts.
47 The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
48 Relationship with Struck off Companies:
The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.
There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.
50 Previous Year''s figures are regrouped/rearranged wherever necessary.
The accompanying notes 1 & 2 are an integral part of the Standalone financial statements
Mar 31, 2018
Terms/rights attached to Equity shares :
The Company has only one class of issued Equity Shares having a par value ofRs.1 per share. Each Shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Term loan from Banks / NBFC include:
i) JM Financial Products Ltd. : Rs.9,000 Lakhs (as at March 31, 2017: Rs.9,000 Lakhs; : as at April 1, 2016 Rs.6,500 Lakhs). Secured by mortgage of fats at Ashok Garden located at Parel, Mumbai and by pledge of Equity Shares of Swan Energy Limited held by the promoters/group company(s).
ii) IIFL Private Wealth FInance Ltd. : Rs.1,325 Lacs (as at March 31, 2017: Rs.1,325 Lacs; as at April 1, 2016: NIL). Secured by pledge of Equity Shares of Swan Energy Limited held by the promoters/group company(s).
iii) Vehicle loan: Secured by hypothication of Vehicle.
Working Capital and Other Short Term Loans Loan from Banks/FI/NBFC (secured) include:
i) Union Bank of India Rs.3,656.41 Lakhs (as at March 31, 2017: Rs.3,651.28 Lakhs; as at April 1, 2016: Rs.3,582.41 Lakhs).
ii) Oriental Bank of Commerce Rs.1,296.89 Lakhs (as at March 31, 2017: Rs.1,182.26 Lakhs; as at April 1, 2016: Rs.1,278.69 Lakhs).
iii) Dena Bank Rs.580.26 Lakhs (as at March 31, 2017: Rs.589.32 Lakhs; as at April 1, 2016: Rs.604.70 Lakhs ).
iv) The Mehsana urban Co-op Bank Ltd Rs.435.18 Lakhs (as at March 31, 2017: Rs.412.93 Lakhs ; as at April 1, 2016: Rs.402.87 Lakhs ).
All the above loans are secured by pari passu mortgage of building, plant/machinery & factory land at Ahmedabad. Also, secured against pari passu charge on hypothication of Inventories and Book debts of the textile division.
v) Sicom loan: Nil (as at March 31, 2017: Rs.225 Lakhs; as at April 1, 2016: NIL). Secured by pledge of Equity Shares of Swan Energy Limited held by the promoters/group company(s).
As stated in Note 1, the Companyâs financial statements for the year ended March 31,2018 are the first annual financial statements prepared in compliance with Ind AS.
The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS that are effective for the first Ind AS Financial Statements for the year ended March 31, 2017, be applied consistently and retrospectively for all fiscal years presented.
All applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the carrying amounts ofthe assets and liabilities in the financial statements under both Ind AS and Previous GAAP as of the Transition Date have been recognised directly in equity at the Transition Date.
In preparing these financial statements, the Company has availed itself of certain exemptions and exceptions in accordance with Ind AS 101 as explained below:
a Ind AS mandatory exceptions i Estimates
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to refect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for following items in accordance with Ind AS at the date of transition as thesewere not required under previous GAAP:
1. Investment in equity instruments carried at FVTPL;
2. Impairment offnancial assets based on expected credit loss model.
ii De-recognition of Financial Assets and Liabilities
Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
b Exemptions from retrospective application
i Investments in Subsidiaries, Joint Ventures and Associates
Ind AS 101 provides the option to measure investments in subsidiaries, joint ventures and assosciates at previous GAAP carrying amount as the deemed cost, if the Company in its separate financial statements have elected to account for its investments in subsidiaries, joint ventures and associates at cost. The Company has opted to report the previous GAAP carrying amount as deemed cost for investments in subsidiaries.
1 Reconciliation
In preparing our opening IND AS Balance Sheet, we have adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to IND AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under IGAAP except where required by IND AS.
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101.
2 Financial Instruments - Fair Values and Risk Management Accounting classification and fair values A Carrying Value as on reporting date & Fair Value hierarchy:
The following table shows carrying amount and fair values of financial assets and financial liabilities, including their levels in fair value hierarchy. It does not include fair value information of financial assets and liabilities not measured at fair value if the carrying amount is reasonable approximation of fair value.
With respect to disclosure of fair value of financial instruments such as cash and cash equivalents, other bank balances, trade receivables and other receivables, other current and non current financial assets, short term borrowings and other current financial liabilities at March 31, 2018, March 31, 2017 and April 1, 2016 are similiar to carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short term nature.
B Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk ; and
- Market risk
The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework, which is reviewed by them periodically.
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 Companyâs receivables from customers, loans and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Companyâs maximum exposure to credit risk as at 31st March, 2018, 2017 and 1st April, 2016 is the carrying value of each class of financial assets.
i Trade and other receivables
Credit risk on trade receivables is limited based on past experience and managementâs estimate.
ii Loans
The Loans have been given in the ordinary course of business and the management does not expect any impairment in the same.
Carrying amount of Loans that were not impaired was as follows -
iii Cash and Cash Equivalents
The Company held cash and bank balance with credit worthy banks of Rs.1304.53 Lakhs at March 31, 2018 (March 31, 2017: Rs.2562.28 Lakhs, April 1, 2016 Rs.6071.67 Lakhs). The credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks where credit risk is largely perceived to be extremely insignificant. Further the Company has an interest accrued but not due above fixed deposit ofRs.3.84 Lakhs at March 31, 2018 (March 31, 2017: Rs.85.83 Lakhs, April 1, 2016 Rs.107.95 Lakhs).
b Liquidity Risk
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 Companyâs 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 Companyâs reputation.
Management monitors rolling forecasts of the Companyâs liquidity position on the basis of expected cash flows. The Company manages its liquidity risk by preparing monthly cash flow projections to monitor liquidity requirements. In addition, the Company projects cash flows and considering the level of liquid assets necessary to meet these, monitoring the Balance Sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
i Exposure to Liquidity Risk
The company has outstanding borrowing through Long Term and short term borrowings from Banks / NBFCs and third parties.
* The amount shown under âShort term borrowingsâ is interest free advances received from third parties. These have been received in the ordinary course of business and are repayable on demand.
c Market Risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices and will affect the Companyâs income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to interest rate risk and the market value of the investments.
i Currency Risk
The Company is exposed to currency risk on account of its trade and other payables in foreign currency. The functional currency of the Company is Indian Rupee. Currency risk is not material, as the Company does not have any exposure in foreign currency.
ii Interest Rate Risk
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 offluctuations in the interest rates.
Exposure to interest rate risk
According to the Company interest rate risk exposure is only for floating rate borrowings. Company does not have any floating rate borrowings on any of the Balance Sheet date disclosed in this financial statements.
iii Price Risk
Price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. It arises from financial assets such as investments in quoted instruments and units of mutual funds.
a Fair value sensitivity analysis for fixed rate Instruments
The Company does not account for any fixed rate financial assets or financial liabilities at fair value through Profit or Loss. Therefore, a change in interest rates at the reporting date would not affect Profit or Loss.
b Cash flow sensitivity analysis for variable rate Instruments
The company does not have any variable rate instrument in Financial Assets or Financial Liabilities.
3 Segment Reporting
Based on the âManagement Approachâ as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Companyâs performance and allocates resources based on an analysis of various performance indicators of business, the segments in which the Company operates. The Company is primarily engaged in textile and Property development/others which the Management and CODM recognise as the business segments and accordingly the following information is given.
Note:
i) * Others include expenses/ investments made on the projects related to Energy/FSRU.
ii) All development and Trading activity have been undertaken in India only, hence Geographical segment reporting is not required.
4 The Company had entered into Development Agreement with Peninsula Land Limited (Formerly Piramal Holdings Ltd) to develop and sale properties at Mumbai and as per the said agreement, they are entitled to 22% of the gross receipt. The transactions and effect thereof are already given in these accounts.
5 Previous Yearâs figures are regrouped/rearranged wherever necessary.
Mar 31, 2017
1 Segment Reporting
The company has identified bussiness segment as primary segments. The reportable business segments are textile and Property development/others
Note:
i) * Others include expenses/ investments made on the projects related to Energy/FSRU
ii) All development and Trading activity have been undertaken in India only, hence Geographical segment reporting is not required.
2 Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and measurement principles as laid down in the standards are followed with respect to such results.
3 At the Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the fixed assets. No impairment loss is determined.
4 Membership & Subscription expenses include a sum of Rs.125.35 Lakhs paid to CCI & Shirke Recreation Enterprises towards entrance/membership fees.
5 The Company had entered into Development Agreement with Peninsula Land Limited (Formerly Piramal Holdings Ltd) to develop and sale properties at Mumbai and as per the said agreement, they are entitled to 22% of the gross receipt. The transactions and effect thereof are already given in these accounts.
6 Details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016 is as under:
7 Previous Yearâs figures are regrouped/rearranged wherever necessary.
Mar 31, 2016
1. Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results.
2. At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
3. The Company had entered into Development Agreement with Peninsula
Land Limited (Formerly Piramal Holdings Ltd) to develop and sale
properties at Mumbai and as per the said agreement, they are entitled
to 22% of the gross receipt. The transactions and effect thereof are
already given in these accounts.
4. Previous Year''s figures are regrouped/rearranged wherever necessary.
Mar 31, 2015
1. Contingent Liabilities
i) Income tax (Rs In Lacs ) - 415.18
ii) Corporate guarantee (rs In Lacs ) 33,910.00 25,910.00
2.Related Party Disclosures, as required by AS-18 are given below:
A List of Related parties
Name of the parties Relationship
i) Cardinal Energy And Infrastructure
Private Limited
ii) Pegasus venture Private Limited Subsidiary
iii) Swan LNG Private Limited
iv) Mr. Nikhil v Merchant
v) Mr. Paresh v Merchant
Key Management Personnel
vi) Mr. Padmanabhan Sugavanam
vii) Mr.vilas A. Gangan
viii) Ms.vinita N. Merchant Relative of key Management
Personnel
ix) Ami Tech (India) Private Limited
x) Feltham trading Private Limited
x) Good Earth Commodities (India) enterprise over which key
Private Limited Management Personnel is
able to exercise
significant influence
xii) Dave Impex Private Limited
xiii) Dave Leasing and Holdings Private
Limited
xiv) Sahajanand Soaps and Chemicals
Private Limited
xv) Swan International Limited
3 Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results.
4 At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
5 Membership & Subscription expenses include a sum of rs 11.24 Lacs
(2013-2014: Nil) paid to NSCI towards entrance/membership fees.
6 the Company had entered into Development Agreement with Peninsula
Land Limited (Formerly Piramal Holdings Ltd) to develop and sale
properties at Mumbai and as per the said agreement, they are entitled
to 22% of the gross receipt. the transactions and effect thereof are
already given in these accounts.
7 Previous Year's figures are regrouped/rearranged wherever necessary.
Mar 31, 2014
Long Term Borrowings
Term loan from banks include:
i) ICICI Bank loan : Rs. 165.00 lacs (2012-2013: Rs. 3,147.39). Secured
by unsold property at Mumbai, charge on scheduled receivables,
extention of charge on the escrow account of property, exclusive charge
on DSR account.
ii) Union Bank of India and Oriental Bank of Commerce : Rs. 64.74 lacs
(2012-2013: Rs. 1,301.81 lacs). Secured by mortgage of property at
Ahmedabad for Textile project.
iii) Vehicle loan : Secured by hypothication of Vehicle.
Short Term Borrowings
Working Capital and Other Short Term Loans Loan from banks/Financial
Institutes and Others include:
i) Union Bank of India and Oriental Bank of Commerce Rs. 2,999.67 lacs
(2012-2013: Rs. 2,681.61 lacs), which is secured against 1st pari passu
charge on hypothication of Inventories and Book debts of the textiles
division.
ii) Yes Bank Rs. 495.84 lacs (2012-2013: Rs. 550.61 lacs), which is
secured against subservient charge on the entire current assets of the
textile division. Pledge of 8,45,000 shares of Swan Energy Limited held
by promoters/group companies.
iii) Sicom loan: Rs. 2,000 Lacs (2012-2013: NIL). Secured by pledge of
Equity Shares of Swan Energy Limited held by the promoters/group
company(s).
Other Current Liablities
Current maturities of long-term debt includes:
i) ICICI Bank loan: Rs. 2,982.39 lacs (2012-2013: Rs. NIL). Secured by
unsold property at Mumbai, charge on scheduled receivables, extention
of charge on the escrow account of property, exclusive charge on DSR
account.
ii) Union Bank of India and Oriental Bank of Commerce : Rs. 1,500 lacs
(2012-2013: Rs. 1,450 lacs) Secured by mortgage of property at
Ahmedabad for Textile project.
iii) Sicom loan: NIL (2012-2013: Rs. 2,000 lacs). Secured by pledge of
Equity Shares of Swan Energy Limited held by the promoters/group
company(s).
iv) TATA Capital: NIL (2012-2013: Rs. 1,400 Lacs). Secured by pledge of
Equity Shares of Swan Energy Limited held by the Guarantor/Security
provider.
v) Arum Investments: Rs. 4,000Lacs (2012-2013: NIL). Secured by pledge
of Equity Shares of Swan Energy Limited held by promoters and mortgage
of Kovilambakkam property at Chennai.
vi) Vehicle loan: Secured by hypothication of Vehicle.
Contingent Liabilities 2014 2013
i) Income Tax (Rs. In Lacs) 415.18 1,593.69
ii) Corporate guarantee (Rs. In Lacs) 25,910.00 19,500.00
Segment Reporting
Note:
i) * Others include expenses/ investments made on the projects related
to Energy/FSRU
ii) All development and Trading activity have been undertaken in India
only, hence Geographical segment reporting is not required.
* Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results.
* At the Balance Sheet date, an assessment is done to determine whether
there is any indication of impairment in the carrying amount of the
fixed assets. No impairment loss is determined.
* The Company had entered into Development Agreement with Peninsula
Land Limited (Formerly Piramal Holdings Ltd) to develop and sale
properties at Mumbai and as per the said agreement, they are entitled
to 22% of the gross receipt. The transactions and effect thereof are
already given in these accounts.
* Previous Year''s figures are regrouped/rearranged wherever necessary.
Mar 31, 2013
1 Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results.
2 At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
3 The Company had entered into Development Agreement with Peninsula
Land Limited (Formerly Piramal Holdings Ltd) to develop and sale
properties at Mumbai and as per the said agreement, they are entitled
to 22% of the gross receipt. The transactions and effect thereof are
already given in these accounts.
4 Previous Year''s figures are regrouped/rearranged wherever necessary.
Mar 31, 2012
1 Subsidiary Information
"Cardinal Energy and Infrastructure Private Limited" is now 100 %
Subsidiary of the Company. Though the Company has started its
commercial activities during the year, the consolidation of accounts
has not been done since there is no income/revenue of the Company. As
per Section 212 of the Companies Act, 1956, the final accounts of the
Subsidiary company is published separately herewith.
2 Related Party Disclosure
Disclosure as required by the accounting Standard 18 "Related Party
Disclosure" are given below:
A List of Related Parties:
I) Cardinal Energy and Infrastructure Private Limited - Subsidiary ii)
Ami Tech (India) Private Limited - Associate iii) Feltham Trading
Private Limited -
Enterprise over which Key Management Personnel is able to Exercise
Significant Influence iv) Mr.Nikhil V Merchant - Key Management
Personnel v) Mr.Paresh V Merchant - Key Management Personnel
3 Segment Reporting
The company has identified business segments as primary segments.
The reportable business segments are Textile and Property
Development/Others.
4 Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results.
5 At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
6 The Company had entered into Development Agreement with Peninsula
Land Ltd (Formerly Piramal Holdings Ltd) to develop and sale properties
at Mumbai and as per the said agreement, they are entitled to 22% of
the gross receipt. The transactions and effect thereof are already
given in this accounts.
7 Previous Year's figures are regrouped/rearranged wherever necessary.
Mar 31, 2011
1. A- TEXTILES
During the year, the Company has started its Process House at Ahmedabad
and have capitalized the amount spent towards the project.
B- REAL ESTATE
I. During the year, the construction work of Tower 'C' at Kurla has
been completed substantially and the Company has recognized the
sales/revenue and the expenses incurred thereon in its books of
accounts.
ii. As at Balance sheet date, Stock in trade of Rs.6544.57 lacs
includes construction / development expenses for unsold area at Kurla
and proportionate additional cost of unsold area at Sewri.
2. Cardinal Energy and Infrastructure Private Limited' is 99.98%
Subsidiary of the Company. Since no material transaction / activity has
been carried on by the Subsidiary Company during the year, the
Consolidated accounts are not considered.
Current Year Previous Year
3. Contingent Liabilities (Rs in lacs)
a) Income Tax 359.70 343.20
All development and Trading activity have been undertaken in India
only, hence Geographical segment reporting is not required.
4. All items of income and expenses in the period are included in the
determination of net profit for the year. There are no changes in the
accounting policies from that of the previous year.
5. Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results. The half yearly results are also subjected to limited review
by the auditors as required by SEBI.
6. At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
7. The Miscellaneous expenses includes donation of Rs. 17.66 lacs,
interest written off of Rs. 478.67 lacs and entrance/membership fees
Rs. 17.10 lacs.
8. The Company had entered into Development Agreement with Peninsula
Land Ltd (Formerly Piramal Holdings Ltd) to develop and sale properties
at Mumbai and as per the said agreement, they are entitled to 22% of
the gross receipt. The transactions and effect thereof are already
given in these accounts.
9. Previous Year's figures are regrouped/rearranged wherever
necessary.
Mar 31, 2010
1 The Company has completed substantial work of residential project
ASHOK GARDEN at Sewree and net sales & revenue thereon have been
recognised during the year. As at Balance sheet date, Stock in trade of
Rs. 23492.85 lacs includes conversion cost of land & development
expenses and cost of unsold area of Ashok Garden, Sewree.
2 Cardinal Energy and Infrastructure Pvt. Ltd. has been taken over by
the Company by purchasing 9,998 shares of Rs. 10/ - each at par during
this year. Since no material transaction/activity is carried on by the
said subsidiary company, the consolidated accounts are not considered.
3 All items of income and expenses in the period are included in the
determination of net profit for the year. There are no changes in the
accounting policies from that of the previous year.
4 Quarterly financial results are published in accordance with the
guidelines issued by SEBI. The recognition and measurement principles
as laid down in the standards are followed with respect to such
results. The half yearly results are also subjected to limited review
by the auditors as required by SEBI.
5 At the Balance Sheet date, an assessment is done to determine
whether there is any indication of impairment in the carrying amount of
the fixed assets. No impairment loss is determined.
6 The Miscellaneous expenses includes donation of Rs. 72.19 lacs and
scholership fees of Rs. 12 lacs.
7 The Company had entered into Development Agreement with Peninsula
Land Ltd (Formerly Piramal Holdings Ltd) to develop and sale of
properties at Mumbai and they are entitled to 22% of the gross receipt.
The transactions and effect thereof are accordingly given in this
accounts.
8 During the year, the Company has redeemed 9250 11 % Cumulative
Redeemable Preference Shares and 5,000 11 % Cumulative Preference
Shares, each of Rs. 100 each fully paid up, along with arrears of
dividend till 31/03/2010.
9 Previous Years figures are regrouped/rearranged wherever necessary.
V. Generic names of three Principal Products/Services of the Company
(as per monetary items)
Item Code No. (ITC Code) N. A.