Notes to Accounts of Raghav Productivity Enhancers Ltd.

Mar 31, 2022

(A) Defined Contribution Plan:-

The Company operates defined contribution retirement benefit plans for all qualifying employees. Contributions are made to registered provident fund and Employee state insurance administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

('' in Lacs)
Particulars	31-Mar-22	31-Mar-21
Contribution to provident fund and other fund recognised in Statement of Profit and Loss H	6.03	5.42

(B) Defined Benefit Plan:-

Gratuity

In accordance with the provisions of Payment of Gratuity Act, 1972, the company has defined benefit plan which provides for gratuity payment. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee''s last drawn salary and the year of employment with the company. The gratuity plan is a partially funded plan.

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary risk:

A) Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

Variabilty in mortality rates : If actual mortality rates are higher than the assumed mortality rates asssumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variabilty in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benfits will be paid earlier than expected.The impact of this will depend on whether the benefits are vested as at the resignation date.

B) Investment risk: For funded plans that rely on insurers for managing the assets,the value of assets certified by the insurer may not be fair value of

instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide

fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter valuation period.

C) Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy,accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

D) Market risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One acturial assumption that has material effect is the discount rate. The discount rate reflects time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits and vice-versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of the liability is exposed to fluctuations in the yields as at the valuation date.

E) Legislative risk: Legislative risk is the risk of increase in the plan laibilities or reduction in the plan assets due to change in legislation / regulation.

The Government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognised immediately in the year when any such amendement is effective.

No other post-retirement benefits are provided to the employees.

The actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2022 by a certified actuary of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Note 37 - Capital Management

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s risk management committee reviews the capital structure of the Company considering the cost of capital and the risks associated with each class of capital.

Note 38 - Related Party Disclosures

The Company has made the following transactions with related parties as defined under the provisions of Indian Accounting Standard-24 issued by the Institute of Chartered Accountants of India.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The following methods and assumptions were used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note 41 - Financial Risk Management Financial risk management policy and objectives

The key objective of the Company''s financial risk management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

Company''s principal financial liabilities, comprise Borrowings from Banks, trade and other payables. The main purpose of these financial liabilities is to finance Company''s operations and plant expansion. Company''s principal financial assets include investments, trade and other receivables, deposits with banks and cash and cash equivalents, that derive directly from its operations.

Company is exposed to market risk, credit risk and liquidity risk.

The Company''s Board oversees the management of these risks. The Company''s Board is supported by senior management team that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance to the Company''s Board that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

i) 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 price risk. Financial instruments affected by market risk include investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.

The sensitivity analysis in the following sections relate to the position as at 31 March 2020 and 31 March 2019. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.

a) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign exchange risk arising from foreign currency transactions primarily to EURO & USD. Company do not enter into any derivative instrument in order to hedge its foreign currency risks.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change by 5% in USD exchange rates, with all other variables held constant.

c) Commodity Risk

Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw Material/Finished Goods and change in demand of the product and market in which the company operates. The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company forecast annual business plan and execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.

ii) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.

Credit risk on trade receivables is managed by the Company 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 has no concentration of risk as customer base in widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial condition, ageing of outstanding and the Company''s historical experience for customers.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment Company adjust it''s exposure to various counterparties. Company''s maximum exposure to credit risk for the components of balance sheet is the carrying amount as disclosed in Note 40.

iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.

Where a provision is made with respect to a liability incurred by entering into a contractual obligation, the movements in the provision during the Year: Not Applicable

Note 43 - Dividend

During the Year interim dividend of '' 0.50 (par value of '' 10 each) per equity shares has been declared & paid and final dividend for Previous year was also paid during the current year. The Board has also recommended a Final Dividend of '' 0.50 (i.e. @ 5%) per equity share of '' 10/- each on 10876300 fully paid equity shares for the financial year 2021-22, aggregating to '' 54.38 lakhs.

Note 48 - Segment Reporting

The company operates in only one Segment i.e. ''Ramming Mass''. Accordingly, the Company is a single segment Company in accordance with Ind AS

108-Operating Segment.

Note 49 The previous year figures have been regrouped, rearranged and reclassified whenever necessary.

Note 50 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 and the final rules/interpretation have not yet been issued by the Government of India. 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.

Note 51 The Company has considered the possible effects that may result from COVID-19 in the preparation of these financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of COVID-19, the Company has, at the date of approval of the financial results, used internal and external sources of information and expects that the carrying amount of the assets will be recovered. The impact of COVID-19 on the Company''s financial results may differ from that estimated as at the date of approval of the same.

Note 52 The MCA vide notification dated March 24, 2021 has amended Schedule III to the Companies Act, 2013 in respect of certain disclosures. Amendments are applicable from April 01, 2021. The Company has incorporated the changes as per the said amendment in the standalone financial statements and has also changed comparative numbers wherever it is applicable.

Note 53 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies) including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding party) with the understanding that the company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (Ultimate Beneficiaries)or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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Mar 31, 2018

NOTE 1 - CORPORATE INFORMATION

1) Raghav Productivity Enhancers Limited (the company) is a Public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in manufacturing and trading of Ramming Mass and other Quartz related items.

2) The financial statements have been prepared to comply in all material respects with the notified accounting standards prescribed under section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India and Income Computation Disclosure Standards (ICDS) I to X issued by CBDT, wherever applicable, unless contrary to the requirement of Accounting Standards prescribed under section 133 of the Act. The accounting policies have been consistently applied.

(i) BOB Term Loan I is taken for the purchase of new plant & machinery and civil construction at the interest rate of 10.95% p.a . The term loan to be repaid in 57 monthly installments of which first 56 monthly installments of Rs. 10 Lakhs and last installment of Rs. 6.68 Lakhs and is Secured by hypothecation of entire plant & machinery, electrical installations, electric equipments, furniture & fixtures, office equipments and other moveable fixed assets of the company.

(ii) BOB Term Loan II is taken for the purchase of plant & machinery at the interest rate of 10.95% p.a . The term loan to be repaid in 60 monthly installments of Rs. 1.25 Lakhs each and is secured by hypothecation of entire plant & machinery, electrical installations, electric equipments, furniture & fixtures, office equipments and other moveable fixed assets of the company.

(iii) BOB Car Loan is taken for purchase of new car at an interest rate of 9.9% to be payable in 84 equated monthly installments of Rs. 87,713/- and is secured by the respective vehicle.

(iv) BOB Term Loan is taken for the purchase of Tractors. Interst applicable is MCLR SP 1.5% to be repayable in 60 monthly installments of Rs. 31,500/- and is secured by the respective vehicle.

(v) BOB Working Capital Term Loan is taken for improving NWC in the account. This term loan is payable at the interest rate of 10.95% p.a on the balance amount of term loan and for the residual period of pre-payment . The term loan to be repaid in 56 monthly installments of which first 29 installments of Rs. 3 Lakhs, then next installments of 7.9 Lakhs and last installment of Rs. 7.6 lakhs and is secured by extension of charge over entire current and fixed assets of the company.

(vi) HDFC Loan is taken for the purchase of Dumper at an interest rate of 8.88% p.a. payable in 35 monthly installments as per the repayment schedule and is secured by the respective vehicle.

Common Securities in BOB Loan

Exclusive first charge by way of hypothecation of stock, stock in progress, stores & spares, packing material, finished goods & book value of the company, both present & future and hypothecation of entire plant & machinery, electrical installation, electric equipments, furniture & fixtures, office equipments & other moveable assets of the company, both present & future.

Exclusive first charge by way of equitable mortgage of factory land & building Newai and Kaladera and negative lien on agricultural land situated at Newai.

Exclusive first charge by way of extension of equitable mortgage of residential property and commercial property (open land) of promoters including personal guarantee of promoters

(i) BOB cash credit of limit Rs. 9 Crores taken for working capital requirement at a margin of 25% over stock and book debts upto 90 days at an Interest rate of 10.95% p.a. and is secured by exclusive 1st charge by way of hypothecation of entire raw material, stock in process, stores and spares, packing material, finished goods & book Debts of the company both present & future.

Common Securities in BOB Loan

Exclusive first charge by way of hypothecation of stock, stock in progress, stores & spares, packing material, finished goods & bok valueof the company, both present & future and hypothecation of entire plant & machinery, electrical installation, electric equipments, furniture & fixtures, office equipments & other moveable assets of the company, both present & future.

Exclusive first charge by way of equitable mortgage of factory land & building Newai and Kaladera and negative lien on agricultural land situated at Newai.

Exclusive first charge by way of extension of equitable mortgage of residential property and commercial property (open land) of promoters including personal guarantee of promoters

Note 2.1 - Sundry Creditors ( Material ) includes BOB LC both inland & import of Rs. 1.10 Cr for procurement of raw material at a cash margin of 10% secured by hypothecation over the goods & book debts created from sales of goods.

NOTE 3 - Earnings Per Share

Basic Earnings per share is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the company by number of equity share outstanding during the year.

NOTE 4 SEGMENT REPORTING

Segment information required to be disclosed in accordance with Accounting Standard 17 (AS-17) on Segment Reporting is given below.

The company has disclosed manufacturing & trading segment as the primary segment. The same have been identified taking into account the type of products and the different risk and returns and internal reporting system. The various segments identified by the company comprise as under:

NOTE 5 CONTINGENT LIABILITIES, COMMITMENTS & CONTINGENT ASSETS

The directors of the company confirm that all the known liabilities have been provided for and there is no liability in contingent nature and there are no Pending Litigations which have impact on financial position of the company. There are no contingent assets.

NOTE 6 Previous year’s figures have been regrouped, wherever required.

NOTE 7 Figures are rounded off to the nearest rupee.