Terms of repayment Terms Loan from banks
Secured Loans are repayable in 96 equal monthly installments (EMI) from the end of the reporting period, EMI of 5.8 Lacs along with interest and having interest rate 9.5%
Vehicle Loan from Banks
Secured Loans are repayable in 35 to 84 installments (EMI) from the end of reporting period, EMI ranging between 0.29 to 0.92 Lacs along with interest and having interest ranging from 7.25% to 9.25%
Terms and Security
The Cash Credit Loan from Yes Bank is secured by way of Hypothecation of Inventory and Trade receivables. Further the Cash credit loan along with Term Loan from Yes Bank is secured by way of Equitable mortgage of immovable properties of the company.
Note 2.29 Contingent Liabilities and Commitments
Nature of Transactions
Amount as on 31-03-2024
Amount as on 31-03-2023
Contingent Liability not provided for in respect of
Employee Provident Fund (The Honourable Supreme court has passed a decision on 28th February 2019 in relation to the inclusion of certain allowances within the scope of "Basic Wages” for the purpose of determining the contribution to Provident Fund under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The company, based on legal advice, is awaiting further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of judgement on the Company, with respect to the period and the n ature of allowances to be covered and the resultant impact on the past provident fund liability cannot be reasonably ascertained, at present)
Amount
unascertainable
Addition u/s 147 rws 144B of Income Tax Act for FY 2013-14. Company has preferred appeal against the said addition before CIT(Appeals) and further there would not be any tax outflow even in case of any adverse decision.
25.00
The balances of certain Debtors, Creditors, Loans & Advances are subject to external confirmation. In the opinion of the management, the Current Assets, Loans & Advances have a realizable value which is in the ordinary course of business at least equal to the amount at which they are stated unless indicated elsewhere in the document.
Currently no Earned leaves are accrued in the hands of Employees as on 31.03.2024 which needs recognition as employee retirement benefits in the accounting period 2023-24 as company is not having policy of accumulating Earned leave. All such untilised leave are lapsed at the end of year. Gratuity provision has been made in current year on the basis of Actuarial valuation report.
Provision has been made for Employees Benefits i.e. Gratuity and Leave Encashment in accordance with AS-15 on the basis of actuarial valuation of te company and Power generation unit acquired through slump sale has been taken separately. The figures below represent liability as applicable. The following information is disclosed in terms of Accounting Standard 15 issued by the ICAI:-
Note 2.36 Segment-Wise Revenue Results :
Basis of preparation :
(i) The Company's operations predominantly relate to manufacturing, generation and sale of Iron and Steel products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Submerged Arc Furnance” and "Foundry”.
(ii) The geographic segments identified as secondary segments are "Submerged Arc Furnance” and "Foundry”. Since there is significant export market revenue, the same has not been disclosed. The entire capital employed is within India.
Note 2.39: Immovable property with title deed not in the name of Company
There is no Immovable property whose title deed is not held in the name of the company.
Note 2.40^ Dealing in Virtual Digital assets_
The company has not traded or invested in cryptocurrency or virtual currency during the reporting period.
Note 2.41: Proceedings under Benami Transactions (Prohibition) Act
There are no proceedings 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.
Note 2.42: No classification as Wilful Defaulter by Bank
The company has not been declared as a wilful defaulter by any bank or Financial Institutions or consortium thereof in accordance with the guidelines on wilful defaulters issued by RBI.
Note 2.43: Compliance of Scheme of arrangement
During the year, company has not applied for any scheme of arrangement with NCLT and no previous compliances are pending as on the year end.
Note 2.44: Loans or Advances - Additional Disclosures
The Company has not given any loans and advances to its promoter, Directors, KMP's and other related parties (as defined under Companies Act, 2013) either severally or jointly with any other person.
Note 2.45: Security of current assets against borrowings
The quarterly statements of current assets filed with banks or finanacial institution are in agreement with the books of account.
Note 2.46: Utilization of money raised by way of Initial public offerings
During the year FY 2022-23, the Company had completed Initial Public Offer (IPO) of 32,40,000 Equity Shares of the face value of Rs. 10/- each at an issue price of Rs. 40/- per Equity Share, comprising fresh issue of 32,40,000 equity shares. The Equity Shares of the Company were listed on February 08, 2023 on BSE Limited .The total IPO expenses incurred Rs. 132.42 lacs (exclusive of taxes) have been proportionately allocated between capital expenditure and revenue expenditure.The details of utilisation of IPO proceeds are as under:
Reason for Variance over 25%:
Current ratio-Reduction in Current ratio is due to decrease in Trade Receivables and Bank, Cash and cash equivalents.
Debt Service coverage Ratio- Increase in Debt serice coverage ratio is due to prepayment of term liability in current period.
Return on Equity Ratio- Return on equity ratio has been reduced in current year on account of decrease in profitability in current year .
Trade Payable turnover Ratio- Trade payable ratio has been reduced in current period on account of decrease in purchase in the current year.
Net Capital turnover Ratio- Net Capital Turnover has Increased in current year on account of increase in average working capital.
Net Profit Ratio- Net profit ratio has decreased in current year on account of decrease in margin.
Return on Capital Employed- Return on Capital employed is on lower side in current period due to decrease in earnings during the year.
Note 2.50: Utilisation of Borrowed funds and share premium:
(i) The Company has not given any advance or loan or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) 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 by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries Note 2.51: Registration of charges or satisfaction with Registrar of Companies
Reason for non creation of charge
Company is in continuous followup with lending institutions for creation of charge, however, till date required digitally signed documents are not provided to the company for creation of charge.
Note 2.52: Regrouping of Balances
The previous year figures have been regrouped and/or rearranged and/or reworked and/or reclassified wherever necessary to correspond with the current period classification/disclosure.