Mar 31, 2023
A) Financial risk management objectives and policies
The Companyâs activities expose it to market risk, liquidity risk and credit risk. The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
B) 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 risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.
(i) 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. At present the company has no borrowing and accordingly the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.
(ii) Foreign currency risk- is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates.The Company does not have any foreign exchange transactions or any derivative instruments for trading or speculative purposes.So foreign currencey risk is nil.
(iii) Other price risk- is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price.Other price risk arises from financial assets such as investments in mutual funds ,bonds ,equity instruments etc. The Company is exposed to price risk arising mainly from investments in mutual funds recognised at FVTOCI. As at 31st March, 2023, the carrying value of mutual funds recognised at FVTOCI amounts to Rs. 21,890.40 lakhs (Previous year Rs 18,193.64 lakhs).
The Company is mainly exposed to change in market rates of its investments in equity investments recognised at FVTOCI. A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:
If the equity prices had been higher/lower by 5% from the market prices existing as at 31st March, 2023, Other Comprehensive Income for the year ended 31st March, 2023 would increase/(decrease) by Rs.1094.52 Lakhs (2021-22 - Rs.909.65 lakhs) with a corresponding increase/decrease in total equity of the Company as at 31st March, 2023. 5% represents managementâs assessment of reasonably possible change in equity prices as the company has basically invested in Debt oriented Mutual Funds.
C) Credit Risk
Credit risk refers to risk that a counter party will default on its contractual obligations resulting in financial loss to the Company.Credit risk arises primarily from financial assets such as trade receivables,derivative financial instruments, other balances with banks, loans and other receivables.To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterpartyâs ability to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.
Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of .profit and loss.
(D) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.
The company is exposed to liquidity risk as there are outstanding related to trade and other payables. The company measures risk by forecasting cash flows.
The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Companyâs reputation. The Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.
Capital Management
For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity share-holders of the Company. The Companyâs objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.
Terms / rights attached to equity shares:
The company has one class of equity shares having a par value of Rs. 10 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 remaining assets of the company in proportion to their shareholding after distribution of all preferential amounts.
Percentage changes during the year include change due to purchase/sale of equity shares during the year by the promoters as well as change in shareholding pattern due to buyback of 20,00,000 (twenty lakh only) no. of equity shares by the company and extinguishment of the same. The bought back shares were extinguished during the period on various dates from 22nd December, 2020 to 6th April, 2021.
Equity shares movement during the 5 years preceding March 31,2023
The Company bought back 20,00,000 equity shares for an aggregate amount of Rs.2922.76 lakh being 7.95% of the total paid up equity share capital at an average cost of Rs.146.14 per equity share during the period from 04.12.2020 to 31.03.2021.The equity shares bought back were extinguished on various date upto 6th April, 2021.
There is no differences between basic and diluted earning per share during the year ended 31.03.2023 and the year ended 31.03.2022.
NOTE 32 : EMPLOYEE BENEFIT PLANS Gratuity:
The Company provides gratuity for employees as per Payment of Gratuity Act, 1972. Employees who are in continuous for Service for a period of 5 years are eligible for gratuity. The amount gratuity payble on retirement/termination is the employeesâ last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.
NOTE 39:
Balances of trade recievables, trade payables and loans & advances are subject to confirmation and consequential adjustments, if any.
NOTE 40 :
In the opinion of the board, current assets, loans and advances have value in the ordinary course of business at least equal to the amount at which they are stated.
NOTE 41 :
The figures of the previous years have been regrouped / rearranged wherever necessary. The company has compiled the above accounts based on the revised/Modified schedule III applicable for the accounting period 2022-2023. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.
NOTE 42 : ADDITIONAL REGULATORY INFORMATION
(i) No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company has not been declared as wilful defaulter by any bank or Financial Institution or other lender.
(iii) There are no trasaction which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous year.
(v) There are no funds, which have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign entities (âintermediariesâ), with the understanding, whether recorded in writing or otherwise, that the intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âthe Ultimate Beneficiariesâ) by or on behalf of the Company or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(vi) There are no funds have been received by the Company from any person or entities, including foreign entities (âthe Funding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall,
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(vii) The Company has complied with the layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the names and CIN of the companies beyond the specified layers and the relationship or extent of the Company in such downstream companies shall be disclosed.
(viii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(ix) The company has not been sanctioned working capital limits from its banks on the basis of security of current assets.
(x) During the year ended 31st March, 2023 the company has entered into transactions with companies struck off under section 248 of the Act or section 560 of Companies Act, 1956. The details of transactions are as follows:
Name of Companies Nature of transactios Balance outstanding Relationship with struck off Companies
Phegan Exports Private Limited Payables 0.08 NA
During the year ended 31st March, 2022 the company does not have any transactions with companies struck off under section 248 of the Act or section 560 of Companies Act, 1956.
Mar 31, 2018
NOTES TO FINANCIAL STATEMENTS
Explanations for reconciliation of Statement of Profit and loss as previously reported under IGAAP to Ind AS Other Comprehensive Income
Under Ind AS, all items of income and expense recognised in a period should be included in the Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as ''other comprehensive income'' includes Investment in equity instruments and Mutual Funds etc. The concept of other comprehensive income did not exist under previous GAAP.
Particulars |
As at 31st March 2018 |
As at 31st March 2017 |
As at 31st March 2016 |
NOTE 3 : INVESTMENTS |
Rs. |
Rs. |
Rs. |
Non-current investments |
|||
A. Investment in Equity Shares: |
|||
Unquoted - Associates: |
|||
Shoeline Trading Pvt Ltd. (F.V. Rs 10) |
1,571,011.400 |
1,569,918.03 |
1,572,783.41 |
Total |
1,571,011.400 |
1,569,918.032 |
1,572,783.408 |
B. Investment in Mutual Fund |
|||
Sundram Bond Saver |
9,197,915.25 |
8,673,720.59 |
7,914,725.29 |
Sundram Select Debt Short- Term Plan |
44,376,090.31 |
41,882,286.48 |
39,601,688.14 |
ICICI Income Plan Regular Growth |
14,363,431.86 |
13,639,541.16 |
12,513,955.68 |
ICICI Pru - Dynamic Bond Fund - Regular Plan - Growth |
3,635,443.41 |
3,445,683.27 |
3,161,446.50 |
ICICI Pru - Regular Saving Fund |
207,631,059.98 |
185,018,553.84 |
155,249,909.94 |
ICICI Pru - Balance Advantage Fund- Growth |
14,733,131.09 |
13,456,052.07 |
- |
ICICI Pru. Corporate Bond Fund |
40,890,281.69 |
38,357,640.75 |
36,288,586.51 |
ICICI Pru. Large Cap Fund |
- |
1,171,967.03 |
980,861.29 |
ICICI Prudential Corporate Bond Fund -Direct Plan Growth |
11,815,455.69 |
10,989,044.96 |
- |
ICICI Income Opportunities Fund Direct Plan Growth |
17,412,585.46 |
16,404,258.92 |
- |
ICICI Pru - Dynamic Bond Fund - Direct Plan - Growth |
29,387,277.87 |
27,610,130.34 |
- |
ICICI Pru. Long Term-Direct Plan Growth |
12,107,618.69 |
11,301,703.63 |
- |
ICICI Pru - Regular Saving Fund-Direct Plan-Growth |
96,633,727.85 |
23,618,122.67 |
- |
ICICI Income Direct Plan Growth |
- |
20,777,239.87 |
- |
Reliance Regular Saving Fund Debt Plan |
11,251,758.45 |
10,530,852.40 |
9,865,397.09 |
HDFC Liquid Fund Growth |
- |
3,425,256.22 |
3,194,995.29 |
Reliance Liquid Fund Treasury Plan |
- |
- |
181,732.39 |
Reliance Medium Term Fund- Direct |
41,589,790.41 |
- |
- |
Reliance Corporate Bond Fund- Direct Growth Plan |
94,831,185.14 |
88,219,625.25 |
- |
Reliance Regular Saving Fund Debt Plan |
118,514,325.45 |
90,988,227.45 |
- |
HDFC High Interest Growth |
- |
11,045,333.07 |
9,945,340.32 |
HDFC Income Fund Growth |
- |
11,005,306.69 |
9,977,156.01 |
HDFC Med. Term Oppt. Fund |
- |
5,846,058.36 |
5,318,457.82 |
ICICI Pru- FMP Series |
- |
- |
19,324,068.10 |
HDFC Gilt Fund- Long Term Growth |
- |
- |
360,078.50 |
Total |
768,371,078.60 |
637,406,605.04 |
313,878,398.87 |
Total NAV - Mutual Funds |
761,163,393.99
|
639,803,129.27
|
313,878,398.87
|
Total(A B) |
769,942,090.00 |
638,976,523.07 |
315,451,182.28 |
Fair Value Measurement
Financial Instruments by Category and hierarchy
The Company uses following hierarchy for determining and disclosing the fair value of financial instruments by Valuation technique :
Level 1 : Quoted (Unadjusted) Prices in active markets for identical assets or liabilities.
Level 2 : Other techniques for which all inputs which have significant effect on the recorded fair value are observable either directly or indirectly.
Level 3 : Techniques which use inputs have a significant effect on the recorded fair value that are not based on observable market data.
Fair Value Through Profit and Loss |
Fair Value Through Other Comprehensive Income |
Carried at Amortised cost |
||||||||||||||
Non Current |
Current |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Total Amount |
|
Financial Assets and Liabilities as at 1st April 2016 |
||||||||||||||||
Financial Assets Investments |
||||||||||||||||
Unqouted Equity Instruments |
1,572,783.41 |
1,572,783.41 |
. |
. |
1,572,783.41 |
1,572,783.41 |
. |
. |
_ |
1,572,783.41 |
||||||
Investment In Mutual Fund |
313,878,398.87 |
313,878,398.87 |
313,878,398.87 |
313,878,398.87 |
- |
- |
- |
313,878,398.87 |
||||||||
315,451,182.28 |
- |
315,451,182.28 |
- |
- |
- |
- |
313,878,398.87 |
1,572,783.41 |
- |
315,451,182.28 |
- |
- |
- |
- |
315,451,182.28 |
|
Other Financial Assets |
||||||||||||||||
Security Deposits |
3,448,839.36 |
3,448,839.36 |
- |
- |
- |
- |
3,448,839.36 |
3,448,839.36 |
3,448,839.36 |
|||||||
Trade Receivables |
. |
321,801.88 |
321,801.88 |
. |
. |
. |
. |
321,801.88 |
321,801.88 |
321,801.88 |
||||||
Cash & Cash Equivalent |
- |
180,649,530.96 |
180,649,530.96 |
- |
- |
- |
- |
180,649,530.96 |
180,649,530.96 |
180,649,530.96 |
||||||
Loans and Advances |
- |
7,030,285.10 |
7,030,285.10 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
7,030,285.10 |
7,030,285.10 |
7,030,285.10 |
|
Other Financial Assets |
- |
9,740,739.04 |
9,740,739.04 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
9,740,739.04 |
9,740,739.04 |
9,740,739.04 |
|
3,448,839.36 |
197,742,356.98 |
201,191,196.34 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
201,191,196.34 |
201,191,196.34 |
201,191,196.34 |
||
Financial Liabilities Other Financial Liabilities |
||||||||||||||||
Security Deposit from agents |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
|||||||||||
Security Deposits (Construction) |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
|||||||||||
Refundable Retainership Money Uncleared Cheques of CRB Capital Market Trade Payable Other Financial Liabilities |
82,836.00 56,889.70 |
33,776,516.55 31,548,988.29 |
82,836.00 56,889.70 33,776,516.55 31,548,988.29 |
- |
- |
- |
- |
82,836.00 56,889.70 33,776,516.55 31,548,988.29 |
82,836.00 56,889.70 33,776,516.55 31,548,988.29 |
82,836.00 56,889.70 33,776,516.55 31,548,988.29 |
||||||
15,309,908.70 |
65,325,504.84 |
80,635,413.54 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
80,635,413.54 |
80,635,413.54 |
80,635,413.54 |
|
Financial Assets and Liabilities as at 31st March 2017 |
||||||||||||||||
Financial Assets Investments |
||||||||||||||||
Unqouted Equity Instruments |
1,569,918.03 |
1,569,918.03 |
. |
1,569,918.03 |
1,569,918.03 |
. |
. |
_ |
1,569,918.03 |
|||||||
Investment in Mutual Fund |
637,406,605.04 |
637,406,605.04 |
637,406,605.04 |
637,406,605.04 |
- |
- |
- |
637,406,605.04 |
||||||||
638,976,523.07 |
- |
638,976,523.07 |
- |
- |
- |
- |
637,406,605.04 |
1,569,918.03 |
- |
638,976,523.07 |
- |
- |
- |
- |
638,976,523.07 |
|
Other Financial Assets |
||||||||||||||||
Security Deposits |
3,494,840.44 |
3,494,840.44 |
. |
. |
. |
. |
3,494,840.44 |
3,494,840.44 |
3,494,840.44 |
|||||||
Trade Receivables |
. |
7,325,064.30 |
7,325,064.30 |
. |
. |
. |
. |
7,325,064.30 |
7,325,064.30 |
7,325,064.30 |
||||||
Cash & Cash Equivalent |
. |
57,507,937.89 |
57,507,937.89 |
. |
. |
. |
. |
57,507,937.89 |
57,507,937.89 |
57,507,937.89 |
||||||
Loans and Advances |
. |
8,892,202.22 |
8,892,202.22 |
_ |
_ |
_ |
_ |
_ |
_ |
_ |
_ |
_ |
8,892,202.22 |
8,892,202.22 |
8,892,202.22 |
|
Other Financial Assets |
- |
1,496,499.74 |
1,496,499.74 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,496,499.74 |
1,496,499.74 |
1,496,499.74 |
|
3,494,840.44 |
75,221,704.15 |
78,716,544.59 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
78,716,544.59 |
78,716,544.59 |
78,716,544.59 |
Fair Value Through Profit and Loss |
Fair Value Through Other Comprehensive Income |
Carried at Amortised cost |
||||||||||||||
Non Current |
Current |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
Total Amount |
|
Financial Liabilities |
||||||||||||||||
Other Financial Liabilities |
- |
- |
- |
- |
- |
- |
- |
|||||||||
Security Deposit from agents |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
15,150,000.00 |
|||||||||||
Security Deposits (Construction) |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
|||||||||||
Refundable Retainership Money |
79,308.00 |
79,308.00 |
79,308.00 |
79,308.00 |
79,308.00 |
|||||||||||
Uncleared Cheques of CRB Capital Market |
56,889.70 |
56,889.70 |
56,889.70 |
56,889.70 |
56,889.70 |
|||||||||||
Trade Payable |
- |
47,028,438.38 |
47,028,438.38 |
- |
- |
- |
- |
47,028,438.38 |
47,028,438.38 |
47,028,438.38 |
||||||
Other Financial Liabilities |
- |
37,690,494.59 |
37,690,494.59 |
- |
- |
- |
- |
37,690,494.59 |
37,690,494.59 |
37,690,494.59 |
||||||
15,306,380.70 |
84,718,932.97 |
100,025,313.67 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
100,025,313.67 |
100,025,313.67 |
100,025,313.67 |
|
Financial Assets and Liabilities |
||||||||||||||||
as at 31st March 2018 |
||||||||||||||||
Financial Assets |
||||||||||||||||
Investments |
||||||||||||||||
Unqouted Equity Instruments |
1,571,011.40 |
1,571,011.40 |
- |
1,571,011.40 |
1,571,011.40 |
- |
- |
- |
1,571,011.40 |
|||||||
Investment in Mutual Fund |
768,371,078.60 |
768,371,078.60 |
768,371,078.60 |
768,371,078.60 |
- |
- |
- |
768,371,078.60 |
||||||||
769,942,090.00 |
- |
769,942,090.00 |
- |
- |
- |
- |
768,371,078.60 |
1,571,011.40 |
- |
769,942,090.00 |
- |
- |
- |
- |
769,942,090.00 |
|
Other Financial Assets |
||||||||||||||||
Security Deposits |
2,754,299.00 |
2,754,299.00 |
- |
- |
- |
- |
2,754,299.00 |
2,754,299.00 |
2,754,299.00 |
|||||||
Trade Receivables |
- |
4,355,613.30 |
4,355,613.30 |
- |
- |
- |
- |
4,355,613.30 |
4,355,613.30 |
4,355,613.30 |
||||||
Cash & Cash Equivalent |
- |
262,063,139.98 |
262,063,139.98 |
- |
- |
- |
- |
262,063,139.98 |
262,063,139.98 |
262,063,139.98 |
||||||
Loans and Advances |
- |
33,968,935.38 |
33,968,935.38 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
33,968,935.38 |
33,968,935.38 |
33,968,935.38 |
|
Other Financial Assets |
- |
1,528,967.69 |
1,528,967.69 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,528,967.69 |
1,528,967.69 |
1,528,967.69 |
|
2,754,299.00 |
301,916,656.35 |
304,670,955.35 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
304,670,955.35 |
304,670,955.35 |
304,670,955.35 |
||
Financial Liabilities |
||||||||||||||||
Other Financial Liabilities |
- |
- |
- |
- |
- |
|||||||||||
Security Deposit from agents |
12,150,000.00 |
12,150,000.00 |
12,150,000.00 |
12,150,000.00 |
12,150,000.00 |
|||||||||||
Security Deposits (Construction) |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
20,183.00 |
|||||||||||
Refundable Retainership Money |
79,308.00 |
79,308.00 |
79,308.00 |
79,308.00 |
79,308.00 |
|||||||||||
Uncleared Cheques of CRB Capital Market |
56,889.70 |
56,889.70 |
56,889.70 |
56,889.70 |
56,889.70 |
|||||||||||
Trade Payable |
- |
42,196,831.91 |
42,196,831.91 |
- |
- |
- |
- |
42,196,831.91 |
42,196,831.91 |
42,196,831.91 |
||||||
Other Financial Liabilities |
- |
160,896,718.30 |
160,896,718.30 |
- |
- |
- |
- |
160,896,718.30 |
160,896,718.30 |
160,896,718.30 |
||||||
12,306,380.70 |
203,093,550.21 |
215,399,930.91 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
215,399,930.91 |
215,399,930.91 |
215,399,930.91 |
(A) Financial risk management objectives and policies
The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.
B) 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 risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.
(i) 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. Since the Company have some fixed rate unsecured borrowings, the exposure to risk of changes in market interest rates is minimal.The Company has not used any interest rate derivatives.
(ii) Foreign currency risk- is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates.The Company does not have any foreign exchange transactions or any derivative instruments for trading or speculative purposes.So foreign currencey risk is zero.
(Mi) Other price risk- is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price.Other price risk arises from financial assets such as investments in mutual funds ,bonds ,equity instruments etc. The Company is exposed to price risk arising mainly from investments in mutual funds recognised at FVTOCI. As at 31st March, 2018, the carrying value of mutual funds recognised at FVTOCI amounts to Rs. 76.84 crores (Previous year Rs 63.74 crores and Rs 31.38 crores as at 1st April, 2016).
The Company is mainly exposed to change in market rates of its investments in equity investments recognised at FVTOCI. A sensitivity analysis demonstrating the impact of change in market prices of these instruments from the prices existing as at the reporting date is given below:
If the equity prices had been higher/lower by 5% from the market prices existing as at 31st March, 2017, Other Comprehensive Income for the year ended 31st March, 2018 would increase/decrease by Rs.384.19 lakhs (2016-17 Rs.318.70 lakhs, 2015-16 Rs.156.94 lakhs) with a corresponding increase/decrease in Total Equity of the Company as at 31st March, 2017. 5% represents management''s assessment of reasonably possible change in equity prices as the Company has basically invested in Debt oriented Mutual Funds.
C) Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company -Credit risk arises primarily from financial assets such as trade receivables,derivative financial instruments, other balances with banks, loans and other receivables.To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.
Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
(D) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.
The company is exposed to liquidity risk as there is huge amount of trade and other payables. The company measures risk by forecasting cash flows.
The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company''s reputation. The Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.
Maturity patterns of borrowings Short term borrowings |
0-1 Years |
Between 1 to 5 Year |
Over 5 Year |
Total |
Maturity patterns of other Financial Liabilities As at 31st March 2018 |
0-3 months |
3-6 months |
6 months to 12 months |
Beyond 12 months |
Trade Payable |
. |
. |
. |
. |
Other Financial liability (Current and Non Current) |
- |
- |
- |
- |
Maturity patterns of other Financial Liabilities As at 31st March 2017 |
0-3 months |
3-6 months |
6 months to 12 months |
Beyond 12 months |
Trade Payable |
- |
- |
- |
- |
Other Financial liability (Current and Non Current) |
- |
- |
- |
- |
Maturity patterns of other Financial Liabilities As at 1st April 2016 |
0-3 months |
3-6 months |
6 months to 12 months |
Beyond 12 months |
Trade Payable |
- |
- |
- |
- |
Other Financial liability (Current and Non Current) |
- |
- |
- |
- |
2. Capital Management
For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity share-holders of the Company. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.
Particulars |
As at 31st March 2018 |
As at 31st March 2017 |
As at 31st March 2016 |
Rs. |
Rs. |
Rs. |
|
NOTE 4 : OTHER NON CURRENT FINANCIAL ASSETS |
|||
Security Deposit |
2,754,299.00 |
3,494,840.44 |
3,448,839.36 |
NOTE 5 : OTHER NON CURRENT ASSETS |
|||
VAT Refundable |
- |
- |
208,431.00 |
Tax Deducted at Source |
233,219.80 |
- |
1,602,340.13 |
Deferred Revenue Expenditure |
99,350.16 |
107,555.28 |
115,760.00 |
Total |
332,569.96 |
107,555.28 |
1,926,531.13 |
NOTE 6 : INVENTORIES |
|||
Stock In Trade |
105,126,131.31 |
91,579,114.49 |
80,315,129.00 |
Goods In Transit |
777,050.00 |
3,716,630.35 |
2,531,844.00 |
Total |
105,903,181.31 |
95,295,744.84 |
82,846,973.00 |
NOTE 7 : TRADE RECEIVABLES |
|||
Sundry Debtors (Unsecured considered good) |
|||
- For more than 6 Months |
2,684,110.30 |
6,036,936.30 |
5,536,610.30 |
- Other |
1,671,503.00 |
1,288,128.00 |
(5,214,808.42) |
Total |
4,355,613.30 |
7,325,064.30 |
321,801.88 |
Mar 31, 2016
1. SEGMENT REPORTING
The Company operates in a single segment, hence segment reporting as required under Accounting Standard 17 issued by the Institute of Chartered Accountants of India, is not applicable.
2. Disclosures under Section 22 of the Micro, Small and Medium Enterprises development Act, 2006 could not be furnished as none of the suppliers of the company have provided the details of their registration under the said act.
3. Balances of trade receivables, trade payables and loans & advances are subject to confirmation and consequential adjustments, if any.
4. In the opinion of the board, current assets, loans and advances have value in the ordinary course of business at least equal to the amount at which they are stated.
5. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures of the previous years are given in brackets. The company has compiled the above accounts based on the revised/ Modified schedule III applicable for the accounting period 2015-2016. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.
Mar 31, 2015
1. SEGMENT REPORTING
The Company operates in a single segment, hence segment reporting as
required under Accounting Standard 17 issued by the Institute of
Chartered Accountants of India, is not applicable.
2.RELATED PARTY DISCLOSURE
Nature of Relationship
Parties where common control exists:
- M/s Sreeleathers
- Sumanta Susanta Overseas (P) Ltd
- Upkar Vinimay (P) Ltd
- Duel Leather Dzines (P) Ltd
- Tug Overseas (P) Ltd Key Managerial Personnel:
- Satya Brata Dey
Note: Related party relationship is as identified by the company and
relied upon by the auditors.
3. Disclosures under Section 22 of the Micro, Small and Medium
Enterprises development Act, 2006 could not be furnished as none of the
suppliers of the company have provided the details of their
registration under the said act.
4. Balances of trade receivables, trade payables and loans & advances
are subject to confirmation and consequential adjustments, if any.
5. In the opinion of the board, current assets, loans and advances
have value in the ordinary course of business at least equal to the
amount at which they are stated.
6. The figures of the previous years have been regrouped / rearranged
wherever necessary. The Figures of the previous years are given in
brackets. The company has compiled the above accounts based on the
revised/ Modified schedule III applicable for the accounting period
2014-2015. The disclosure requirements are made in the notes to
accounts or by way of additional statements. The other disclosures as
required by the Companies Act are made in the notes to accounts.
Mar 31, 2014
1.1 CONTINGENT LIABILITIES
Appeals filed in respect of disputed demands:
- whete the company is in appeal
(a) Sales Tax 1,422,254.00 1,422,254.00
- where the department is in appeal
(b) Central Excise Tax 9,320,010.00 -
10,742,264.00 1,422,254.00
OTHER EXPLANATORY NOTES & INFORMATION
1.2 SEGMENT REPORTING
The Company operates in a single segment, hence segment reporting as
required under Accounting Standard 17 issued by the Institute of
Chartered Accountants of India, is not applicable.
1.3 RELATED PARTY DISCLOSURE Nature of Relationship
Parties where common control exists
- M/s Sreeleathers
- Sumanta Susanta Overseas (P) Ltd
- Sumanta Susanta Exports (P) Ltd.
- Upkar Vinimay (P) Ltd.
- Duel Leather Dzines (P) Ltd.
- Tug Overseas (P) Ltd. Key Managerial Personnel:
- Satya Brata Dey
Note : Related party relationship is as identified by the company and
relied upon by the auditors.
1.4 Disclosures under Section 22 of the Micro, Small and Medium
Enterprises development Act, 2006 could not be furnished as none of the
suppliers of the company have provided the details of their
registration under the said act.
1.5 Previous year figures have been regrouped and arranged wherever
necessary.
Mar 31, 2013
As at As at
Particulars 31st March
2013 31st March 2012
1.1 CONTINGENT LIABILITIES
Appeals filed in respect of disputed
demands:
(a) Sales Tax 1,422,254.00 1,422,254.00
- where the company is in appeal 1,422,254.00 1,422,254.00
OTHER EXPLANATORY NOTES & INFORMATION
1.2 SEGMENT REPORTING
The Company operates in a single segment, hence segment reporting as
required under Accounting Standard 17 issued by the Institute of
Chartered Accountants of India, is not applicable.
1.3 RELATED PARTY DISCLOSURE
Nature of Relationship
Parties where common control exists
- M/s Sreeleathers
- Sumanta Susanta Overseas (P) Ltd.
- Sumanta Susanta Exports (P) Ltd.
- Upkar Vinimay (P) Ltd.
- Duel Leather Dzines (P) Ltd.
- Tug Overseas (P) Ltd.
1.4 Disclosures under Section 22 of the Micro, Small and Medium
Enterprises development Act, 2006 could not be furnished as none of the
suppliers of the company have provided the details of their
registration under the said act.
1.5 Previous year figures have been regrouped and arranged wherever
necessary.
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