a) Term/rights attached to Equity Shares
The company has only one class of issued equity shares having a par value of Rs 1/- per share. Each shareholder is entitled to one vote per share. In the event of liquidation of the company. The holders of equity shares will be entitled to receive remaining assets of the company after distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
2. Retained Earnings: Retained earnings comprise of net accumulated profit/(loss) of the Company, after declaration of dividend.
3. Capital Redemption Reserve: Capital Redemption Reserve was created on account of buy back of shares of the Company.
4. Revaluation Reserve: Revaluation reserve which are kept aside out of company's profit to meet the future obligation
5. Central Subsidy: Central Subsidy which are kept aside out of company's profit to meet the specific obligation
6. FVTOCI Equity Instruments : FVTOCI reserve created to set asisde the amount on account of fair value of equity instrument.
18(a) Term Loan from HDFC Bank Limitd has been prepaid during the year.
18(b) Vehicle loan from Kotak Mahindra Bank Limited is secured against hyphotication of vehicle. The loan has been taken during the financial year 2022-23 and is repayable in monthly installment of INR 5.08 lacs each. Accordingly, Installments due with in a year is INR 46.70 (Principal only) has been clasified under “ Other Current Financial Liabilities” The loan is repayable in 60 installments ending in November 2027.
18(c) Vehicle loan from HDFC Bank Limited is secured against hyphotication of vehicle. The loan has been taken during the financial year 2021-22 and is repayable in monthly installment of INR 0.24 lacs each. Accordingly, Installments due with in a year is INR 1.65 lacs (Principal only) has been clasified under “ Other Current Financial Liabilities”. The loan is repayable in 36 Installments ending in October 2024.
Notes:
20(a) Cash credit facilities from Scheduled Banks are secured by hypothecation of stock, trade receivables and first pari-passu charge on specific fixed assets of the company. Further, it has been guaranted by some of the Directors.The Company has taken loans against security of current assets and quarterly returns or statements of current assets filed by the Company with bank are in agreement with the books of accounts. It is repayable on demand.
Rate of Interest on the above loans is linked with Repo rate/ MCLR which is reset for every 3 months.
a) All the Trade payable are Unsecured
b) There are no disputed trade payables in the current and previous year.
c) Terms and conditions of the above financial liabilities:
Trade payables are non-interest bearing and are normally settled on 30-120 day terms.
d) No Debts due to Directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member.
The carrying amount of financial assets and financial liabilities measered at amortised cost in the financial statements are a reasonable approximation of their fair values since the company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
35. In the opinion of Board of Directors and to the best of their knowledge and belief, the above disclosure pursuant to Securities Exchange Board Of India (Listing Obligation and Disclosure Requirement and Regulation 2015) and Section 186 of the Companies Act 2013.
46. Retirement and Other Employees Benefits
The Company's employee benefits primarily cover provident fund, gratuity and leave encashment.
Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue. Gratuity liability is a defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.
47. Segment Reporting
Factors used to identify the reportable segments.
The Company has following business segments, which are its reportable segments. These segments offer different products and services and are managed separately because they require different technology and production process. Operating segment disclosures are consistent with the Information.
48. financial risk management objectives and policies
The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets other than derivatives include trade and other receivables, cash and cash equivalents and deposits that derive directly from its operation.
The Company is exposed to market, credit, liquidity and regulatory risks. The Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :
A. 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: commodity risk, interest rate risk and foreign currency risk.
(i) Commodity Price Risk
Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating activities require the on-going purchase of these materials. The company has arrangement to pass-through the increase/decrease in these material price through price variance clause in majority of the contract.
(ii) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rate relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency). Further, the Company has foreign currency risk on import of input materials, capital commitment and also borrow funds in foreign currency for its business. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate the risks.
(iii) Interest Rate risk
The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined by current market interest rates, projected debt servicing capability and view on future interest rates.
B. Credit Risk
Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents Company's maximum exposure to the credit risk.
With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payment and other relevant factors. The Company's exposure to credit risk is influence mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associated with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. with respect to other financial risk Viz loan and advances , deposit with government, the credit risk is insignificant since the loans and advances are given to its employees only and deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.
C. Regulatory Risks
The Company performance may be impacted due to change in Regulatory Environment. The Company is closely monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper compliance commensurate with new regulatory requirements.
D. Liquidity Risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans
49. 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 holders of the Company. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
Debt = Non current borrowings Current Borrowings.
Equity = Equity Share capital Other Equity
a) Change in the Current ratio is due to decrease in the Current Liabilities due to Prepayment of Term Loan.
b) Change in Debt Equity ratio is due to Prepayments of Long Term borrowings
c) Change in Trade receivables ratio is due to faster realization of trade receivables.
51. Other Statutory Information
A. RELATIONSHIP WITH STRUCK OFF COMPANIES
The company do not have any transactions with company's struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2024 (Previous year: Nil).
B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME
The company do not have any such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended 31st March, 2024 and also for the year ended 31st March, 2023 in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
C. DETAILS OF BENAMI PROPERTY HELD
The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2024 and also for the year ended 31st March, 2023.
D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company do not have any charges or satisfaction, which are yet to be registered with ROC beyond the statutory period, during the year ended 31st March, 2024 and also during the year ended 31st March, 2023.
E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March, 2024 and also during the year ended 31st March, 2023.
F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM
The company have not advanced or loaned 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.
The company have 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.
G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
52. Confirmation letters of majority of balances under the heads Trade Payables, Claims Recoverable, Loans & Advances, Trade Receivables and Deposits from and with various parties/ Government Departments have been sent but in number of cases such confirmation letters from the parties are yet to be received.
53. In respect of financial year commencing on or after 01st April 2023, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software and the audit trail feature has not been tampered with and the audit trail has been and will be preserved by the company as per the statutory requirements for record retention
54. Previous year's figures have been regrouped and rearranged, wherever found necessary
Following changes has been done in the comparative period (as at March 31, 2023) which is not material qualitatively and quantitatively to the Company's prior period financial statements.
(A) Re- classification in “Balance Sheet”:
Borrowings (Current - "109.24 lacs) it was earlier shown under Current Liabilities are now shown under Non -Current Liabilities being long term in nature for better presentation
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