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Notes to Accounts of Kamdhenu Ltd.
Mar 31, 2025
1.10 Provisions, contingent liabilities, contingent assets
A provision is recognised when an enterprise has a
present obligation as a result of past event and it is
probable that an outflow of resources will be required
to settle the obligation in respect of which a reliable
estimate can be made. Provisions are measured at the
present value of management''s best estimate of the
expenditure required to settle the present obligations at
the end of the reporting period. If the effect of the time
value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the changes in the provision due to
the passage of time are recognised as finance cost.
Contingent liabilities are disclosed in the case of:
a) a present obligation arising from the past events,
when it is not probable that an outflow of resources
will be required to settle the obligation;
b) a present obligation arising from the past events,
when no reliable estimate is possible; and
c) a possible obligation arising from past events,
unless the probability of outflow of resources is
remote.
Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefit is probable.
1.11 Employee benefits
A. Defined contribution plans
Retirement benefit in the form of contribution to
provident fund and pension fund are charged to
statement of Profit and Loss.
B. Defined benefit plan (funded)
Gratuity is the nature of a defined benefit plan.
Provision for gratuity is calculated on the basis of
actuarial valuation carried out at reporting date
and is charged to statement of profit and loss.
The actuarial valuation is computed using the
projected unit credit method.
Re-measurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amount included in net interest on the
net defined benefit liability and the return on plan
assets (excluding amount included in net interest
on the net defined benefit liability) are recognised
immediately in the Balance Sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re¬
measurement is not reclassified to profit or loss in
subsequent periods.
C. Other employee benefits (unfunded)
Leave encashment is recognised as an expense
in the statement of profit and loss account as and
when they accrue. The Company determines the
liability using the projected unit credit method
with actuarial valuations carried out as at balance
sheet date.
1.12 Revenue recognition
Revenue from sale of goods and services
The Company derives its revenue from sale of
manufactured goods & traded goods primarily from
steel segment and also from royalty services in respect
of franchisee arrangement. The Company recognises
revenue from sale of products & services at a time
when performance obligations are satisfied and upon
transfer of control of promised products and services
to the customer as per the contract, in an amount that
reflects the consideration, the Company expects to
receive in exchange for their products or services. The
Company disaggregates the revenue based on nature
of products.
The revenue from sale of goods and services is net of
variable consideration on account of various discounts
and schemes offered by the Company.
Royalty income is recognised as per the contract when
the goods are sold by the franchisee.
Sale of Power is recognised as per the agreement rates
as per contract based on the unit produced.
Interest income
Interest income is recognised using the EIR method.
The EIR is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to the gross carrying amount of a
financial asset. When calculating the effective interest
rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial
instruments (for example, prepayment, extension, call
and similar options) but does not consider the expected
credit loss.
1.13 Taxes on income
Income tax expenses comprise current tax expenses
and the net change in the deferred tax asset or
liabilities during the year. Current and deferred tax
are recognised in statement of profit and loss, except
when they relate to items that are recognised in other
comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognised
in other comprehensive income or directly in equity
respectively.
Current tax
The Company provides current tax based on the
provisions of the Income Tax Act, 1961 applicable to
the Company.
Deferred tax
Deferred tax is recognised using the balance sheet
approach. Deferred tax assets and liabilities are
recognised for deductible and taxable temporary
differences arising between the tax base of assets and
liabilities and their carrying amount.
Deferred tax liabilities are recognised for all taxable
temporary differences.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable
that taxable profit will be available against which
the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses
can be utilised.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax assets to be
recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when the
asset is realized or liability is settled, based on tax rates
(and tax laws) that have been enacted or substantially
enacted at the reporting date.
Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income (loss) or in equity).
Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.
1.14 Leases
In accordance with Ind AS 116, the Company
recognises right of use assets representing its right
to use the underlying asset for the lease term at the
lease commencement date. The cost of right of use
asset measured at inception shall comprise of the
amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before
commencement date less any lease incentive received
plus any initial direct cost incurred and an estimate
of cost to be incurred by lessee in dismantling and
removing underlying asset or restoring the underlying
asset or site on which it is located. The right of use asset
is subsequently measured at cost less accumulated
depreciation, accumulated impairment losses, if
any, and adjusted for any re-measurement of lease
liability. The right of use assets is depreciated using the
straight-line method from the commencement date
over the shorter of lease term or useful life of right of
use asset. The estimated useful lives of right of use
assets are determined on the same basis as those of
property, plant and equipment. Right of use assets are
tested for impairment whenever there is any indication
that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in statement of
profit and loss.
The Company measures the lease liability at the present
value of the lease payments that are not paid at the
commencement date of lease. The lease payments are
discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot
be readily determined, the Company uses incremental
borrowing rate.
The lease liability is subsequently re-measured by
increasing the carrying amount to reflect interest
on lease liability, reducing the carrying amount to
reflect the lease payments made and re-measuring
the carrying amount to reflect any reassessment or
lease modification or to reflect revised-in-substance
fixed lease payments. The Company recognises
amount of re-measurement of lease liability due to
modification as an adjustment to write off use asset
and statement of profit and loss depending upon the
nature of modification. Where the carrying amount
of right of use assets is reduced to zero and there is
further reduction in measurement of lease liability, the
Company recognises any remaining amount of the re¬
measurement in statement of profit and loss.
The Company has elected not to apply the requirements
of Ind AS 116 to short term leases of all assets that have
a lease term of 12 months or less unless renewable on
long term basis and leases for which the underlying
asset is of low value. The lease payments associated
with these leases are recognised as an expense over
lease term.
1.15 New additional amended standard adopted by the
Company
Ministry of Corporate Affairs ("MCA") notifies new
standards under companies (Indian Accounting
Standards) Rules as issued from time to time. For the
year ended 31st March, 2025, MCA has not notified
any new standards or amendments to the existing
standards applicable to the Company.
The repayment of equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent
regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash.
The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of
shares during the period of five years immediately preceding the balance sheet date.
(d) Dividend
The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance
of dividends outside India is governed by Indian law on foreign exchange.
The amount of per share dividend recognised as distributions to equity shareholders during FY 2024-25 pertaining to FY
2023-24 amounted to '' 554.77 Lakhs have been shown as deduction from retained earning.
The Board of Directors of the Company in their meeting held on 7th May, 2025 have proposed a dividend @ 25% i.e.
'' 0.25/- per equity share for the financial year ended 31st March, 2025, which are subject to the approval of shareholders
at the AGM.
e) Share warrants
(i) The Company has issued and allotted 27,50,000 (Twenty Seven Lakh Fifty Thousand only) share warrant convertible into
equivalent number of equity shares, having face value of '' 10/- per equity shares, within a period of 18 months from the
dated of allotment i.e 22nd February, 2024 at an issue price of '' 353/- (Rupees Three Hundred and Fifty three Only) (including
premium of '' 343/- each) to individual (Non-Promoters) and Public-FPIs (Non-Promoters). The Company has received
'' 2426.88 lakhs being 25% of the total amount payable towards subscription of the warrants from all the allotees in FY
2023-24.
During the year ended 31st March 2025, the Company has received an amount of '' 2125.41 lakhs towards conversion of
8,02,800 warrants into equity shares (out of 27,50,000 warrants allotted on 22nd February, 2024 at an issue price of '' 353/-
per warrant) on 28th June, 2024. The utilization of the proceeds from issue of warrants and its abovesaid conversion into
equity shares have been given below:
ii) Demand of'' 156.30 lakhs has determined u/s 74 and 50 of CGST Act, 2017 for FY 2017-18 & 2018-19 , out of which
'' 3.35 lakhs has been deposited under protest, appeal against orders, have been filied to appropriate authority by the
Company
iii) Demand of'' 47.83 lakhs has been determined u/s 73 and 50 of CGST Act, 2017 for FY 2020-21. Appeal for rectification
of Order filed on 2nd April, 2025.
c) The Company vide its termination letter dated 19th September, 2024 had terminated all MOUs, Agreements and License
User Agreement dated 29th January, 2021 with Ashiana Ispat Limited. The litigations are currently sub-judice with the
Courts. However, based on the legal opinion obtained by the Company, these litigations will have no material impact on
the financial statements.
Defined contribution plan
The Company deposit an amount determined a fixed percentage on salary paid of every month to the state administerd
provident fund, employee state insurance and labour welfare fund for the benefit of employees.The total amount recognised
in statement of profit and loss during the financial year is '' 121.59 lakhs (31st March, 2024: '' 121.23 lakhs) and is included in
note 32 " Employees benefit expenses".
Financial risk management framwork
The Companyâs activities expose it to variety of financial risks viz. Credit risk, liquidity risk and market risk. These risks are
managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse
effects on the financial performance of the Company.
The Companyâs principal financial liabilities comprise lease liabilities, trade payables, security deposits received, other payables
etc. The main purpose of these financial liabilities is to manage finances for the Companyâs operations. The Companyâs
principal financial assets include investments, trade receivables, unbilled revenue, cash and cash equivalents etc. that derive
directly from its operations.
The Company has exposure to the following risks arising from financial instruments:
1) Credit risk
2) Liquidity risk
3) Market risk
1) Credit risk
The Company extends credit to customers in normal course of business. The Company considers factors such as
credit track record in the market and past dealings for extension of credit to customers. The Company monitors the
payment track record of the customers. Outstanding customer receivables are regularly monitored.
Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of
the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing
basis; these polices factor in the customerâs financial position, past experience and other customer specific factors.
Financial instruments that are subject to concentration of credit risk principally consists of trade receivables, investments,
Loans, security deposit paid and other financial assets. None of the financial instruments of the Company results in
material concentration of credit risk.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage
in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off, when a debtor fails
to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for
or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When
recoveries are made, these are recognised in statement of profit and loss. The Company has followed expected credit loss
(ECL) model to provide for provision for ECL allowance.
2) 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 and 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 condition, without incurring unacceptable losses or risking damage to the Companyâs reputation.
Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate
liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities and by continuously monitoring forecast and actual cash fows, and by matching the maturity profiles of
financial assets and liabilities.
Maturity profile of financial liabilities
The below table provide the detail regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments. The contractual maturities based on the earliest date on which Company
may be required to pay.
3) Market risk
Market risk is the risk that changes in the market prices such as foreign currency risk, interest risk, equity price and
commodity prices. The market risk will affect the Companyâs income or value of its holding of financial instruments. The
objective of the market risk management is to manage and control market risk exposure within acceptable parameters,
while optimizing the returns.
i) Commodity risk
Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar,
the main product in Steel segment. The requirement of raw material is sourced on spot basis so as to float with
fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material
prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw
material costs.
ii) Interest rate risk
Interest rate is the risk that fair value or future cash flows of a financial instrument will fluctate because of changes
in interest rate. There is no borrowings of funds by the Company during the year hence there is no interest rate risk.
iii) Price Related Risk
The Companyâs exposure to price risk arises for investment in equity shares, portfolio management services, mutual
funds, bonds and other debts held by the Company. To manage its price risk arising from the above investments, the
Company diversifies its portfolio.
vi) Foreign Exchange Risk
The Company do not have any foreign currency exposure as at 31st March, 2025.
Capital Management
The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Company have sufficient surplus to meet its business interest and any capital
risk in future.
During the year, The Company has not availed debts therefore gearing ratio (debt to total equity ratio) is not applicable for
current year.
Disclosure in accordance with requirements under Ind AS-10 Event after the reporting date:
(i) The Board of Directors of the Company have recommended a dividend @ 0.25 per equity share for the financial year
ended 31st March, 2025 for the approval of shareholders. The actual dividend outgo will be dependent on share capital
outstanding as on record date.
(ii) The Company had allotted 40,00,000 equity shares of face value of '' 1 each, as fully paid-up shares at a price of '' 35.30
per equity share, consequent upon the conversion of 4,00,000 Warrants issued earlier at an Issue price of '' 353/- each,
after adjusting the number of shares, paid-up capital per share and premium per share post sub-division of nominal value
of the equity share of the Company from 1 Equity Share of '' 10/- each to 10 Equity Shares of '' 1/- each, upon conversion
of equivalent number of Warrants and after making necessary adjustment of Sub-division of equity shares. Company had
received remaining 75% (i.e '' 26.475 per share) amount of '' 1059 lakhs.
As per our report of even date attached For and on behalf of Board of Directors of Kamdhenu Limited
For S S Kothari Mehta & Co. LLP Sd/- Sd/-
Chartered Accountants (Satish Kumar Agarwal) (Sunil Kumar Agarwal)
Firm Registration No. 000756N / N500441 Chairman & Managing Director Whole Time Director
DIN: 00005981 DIN: 00005973
Sd/- Sd/- Sd/-
Sunil Wahal (Harish Kumar Agarwal) (Khem Chand)
Partner Chief Financial Officer Company Secretary
Membership No. 087294 ICAI M. No. 075505 M.No.- F10065
Place: Gurugram
Date : 7th May, 2025
Mar 31, 2024
1.10 Provisions, contingent liabilities, contingent assets
A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligations at the end of the reporting period. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the changes in the provision due to the passage of time are recognised as finance cost. Contingent liabilities are disclosed in the case of:
a) a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;
b) a present obligation arising from the past events, when no reliable estimate is possible; and
c) a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefit is probable.
1.11 Employee benefits
A. Defined contribution plans
Retirement benefit in the form of contribution to provident fund and pension fund are charged to statement of Profit and Loss.
B. Defined benefit plan (funded)
Gratuity is the nature of a defined benefit plan. Provision for gratuity is calculated on the basis of actuarial valuation carried out at reporting date and is charged to statement of profit and loss. The actuarial valuation is computed using the projected unit credit method.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amount included in net interest on the net defined benefit liability and the return on plan assets (excluding amount included in net interest on the net defined benefit liability) are recognised
immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurement is not reclassified to profit or loss in subsequent periods.
C. Other employee benefits (unfunded)
Leave encashment is recognised as an expense in the statement of profit and loss account as and when they accrue. The Company determines the liability using the projected unit credit method with actuarial valuations carried out as at balance sheet date.
1.12 Revenue recognition
Revenue from sale of goods and services
The Company derives its revenue from sale of manufactured goods & traded goods primarily from steel segment and also from royalty services in respect of franchisee arrangement. The Company recognizes revenue from sale of products & services at a time when performance obligations are satisfied and upon transfer of control of promised products and services to the customer as per the contract, in an amount that reflects the consideration, the Company expects to receive in exchange for their products or services. The Company disaggregates the revenue based on nature of products.
The revenue from sale of goods and services is net of variable consideration on account of various discounts and schemes offered by the Company.
Royalty income is recognised as per the contract when the goods are sold by the franchisee.
Sale of Power is recognised as per the agreement rates as per contract based on the unit produced.
Interest income
I nterest income is recognised using the EIR method. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instruments (for example, prepayment, extension, call and similar options) but does not consider the expected credit loss.
1.13 Taxes on income
Income tax expenses comprise current tax expenses and the net change in the deferred tax asset or liabilities during the year. Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.
Current tax
The Company provides current tax based on the provisions of the Income Tax Act, 1961 applicable to the Company.
Deferred tax
Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
1.14 Leases
In accordance with Ind AS 116, the Company recognises right of use assets representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of right of use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before commencement date less any lease incentive received plus any initial direct cost incurred and an estimate of cost to be incurred by lessee in dismantling and removing underlying asset or restoring the underlying asset or site on which it is located. The right of use asset is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any, and adjusted for any re-measurement of lease liability. The right of use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right of use asset. The estimated useful lives of right of use assets are determined on the same basis as those of property, plant and equipment. Right of use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of lease. The lease payments are
discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on lease liability, reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect any reassessment or lease modification or to reflect revised-in-substance fixed lease payments. The Company recognises amount of re-measurement of lease liability due to modification as an adjustment to write off use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of right of use assets is reduced to zero and there is further reduction in measurement of lease liability, the Company recognises any remaining amount of the remeasurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all assets that have a lease term of 12 months or less unless renewable on long term basis and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense over lease term.
1.15 New additional amended standard adopted by the Company
Ministry of Corporate Affairs ("MCA") notifies new standards under companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
(c) Term/ rights attached to equity shares
The Company has only one class of equity shares having a face value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share.
The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
(d) Dividend
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange.
The amount of per share dividend recognised as distributions to equity shareholders during FY 2023-24 pertaining to FY 2022-23 amounted to '' 404.03 Lakhs have been shown as deduction from retained earning.
The Board of directors of the Company in their meeting held on 6th May, 2024 have proposed a dividend @20% i.e '' 2/- per equity share for the financial year ended 31st March, 2024 for the approval of shareholders.
e) Share Warrants
(i) The Board of Directors of the Company at their meeting held on 13th January, 2024 has approved the withdrawal of the preferential Issue of 50,00,000 warrants convertible into equity shares, which was approved by the Board at their meeting held on 11th November, 2022, and subsequently approved by the shareholders of the Company at their ExtraOrdinary General Meeting held on 9th December, 2022, which could not be completed in view of seeking clarification on the issue price from regulatory authorities, the period of 12 months lapsed from the passing of the said Special Resolution, within which allotment against the said preferential issue had to be made. Therefore, Board of Directors of the Company has accorded their approval to withdraw the above said proposal of fund raising.
(ii) The Company has issued and allotted 27,50,000 (Twenty Seven Lakhs Fifty Thousand only) warrant convertible into equivalent number of equity shares, having face value of '' 10/- per equity shares, within a period of 18 months from the dated of allotment i.e 22nd February, 2024 at an issue price of '' 353/- (Rupees Three Hundred and Fifty three Only'' (including premium of '' 343/- each) to individual (Non-Promoters) and Public-FPIs (Non-Promoters). The Company has received '' 2426.88/- Lakhs being 25% of the total amount payable towards subscription of the warrants from al the allotees.
The amount of '' 2426.88 Lakhs received on allotment of warrants remained unspent as at 31st March, 2024 anc kept in fixed deposits for the time being. Further there is no deviation in uses of preferential issue proceeds ol '' 2426.88 Lakhs for the period ended 31st March, 2024.
a) Securities premium:
Securities premium includes premium on issue of shares. It will be utilised in accordance with the provisions of the Companies Act, 2013.
b) Other comprehensive income:
The Company has elected to recognise changes in the fair value of certain investments in equity securities, bonds and other debt in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity.
c) Retained Earning:
Represents surplus/ (deficit) in statement of profit and loss during the year, including retained earnings of transferor companies/demerged company on account of merger.
Nature of CSR Activity:
During the year company has contributed an amount of '' 5 Lakhs to Kamdhenu Jeevandhara Foundation for purchasing of land for construction of building for carrying out education & skill development programe and also medical facilities on an ongoing basis.
The Comapany has made provision of '' 71.50 Lakhs as at 31st March, 2024 and separately disclosed as "Unspent CSR Expenses" in other current financial liabilities in note 24 representing the extent to which the amount is to be transferred with in 30 days from the end of financial year 31st March, 2024. The Company has since transferred unspent CSR expenses amount of '' 71.50 Lakhs to "Kamdhenu Limited Unspent CSR account- FY 2023-24" on 30th April, 2024 in compliance with provision of section 135 (6) of Companies Act, 2013.
B) LEAVE ENCASHMENT
The provision for leave encashment based on acturial valuation has been included in provisions-current and non-current and does not require disclosure as mentioned in para 158 of Ind AS 19.
DEFINED CONTRIBUTION PLAN
The Company deposit an amount determined at fixed percentage on salary paid every month to the State Administerd Provident Fund, Employee State Insurance and Labour Welfare Fund for the benefit of employees.The total amount recognised in statement of profit and loss during the financial year is '' 121.23 Lakhs (31st March, 2023: '' 119.58 Lakhs) and is included in note 32 "employees benefit expenses".
FINANCIAL RISK MANAGEMENT
The Companyâs activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk and capital risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse effects on the financial performance of the Company.
i) Commodity risk
Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar, the main product in steel segment. The requirement of raw material is sourced on spot basis so as to float with fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw material costs.
ii) Credit risk
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored.
Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these polices factor in the customer''s financial position, past experience and other customer specific factors. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off, when a debtor fails to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognised in statement of profit and loss. The Company has followed expected credit loss (ECL) model to provide for provision for ECL allowance.
iii) 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 and 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans. The Company considers liquidity risk as low risk.
iv) Interest rate risk
Interest rate is the risk that fair value or future cash flows of a financial instrument will fluctate because of changes in interest rate. Now Interest rate risk is immaterial because company has repaid all its fixed rate and variable rate bearing loans.
v) Exposure to liquidity risk
T he following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.
vi) Capital Management
The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company has sufficient surplus to meet its business interest and any capital risk in future.
During the year, the Company has repaid all its debts therefore debt to equity ratio for current year is not applicable.
vii) Foreign Exchange Risk
The Company does not have any foreign currency exposure, hence no foreign currency risks.
DISCLOSURE IN ACCORDANCE WITH REQUIREMENTS UNDER IND AS-10 EVENT AFTER THE REPORTING DATE:
The Board of Directors of the Company have recommended a dividend @ 20% i.e '' 2/- per equity share for the financial year ended 31st March, 2024 for the approval of shareholders. The actual dividend outgo will be dependant on share capital outstanding as on record date.
Previous years figures have been regrouped, rearranged or reclassified, whenever necessary to confirm the current yearâs classification.
As per our report of even date attached
For S. S. Kothari Mehta & Co. LLP For and on behalf of board of directors of Kamdhenu Limited
Chartered Accountants
Firm Registration No. 000756N / N500441 Sd/- Sd/-
(Satish Kumar Agarwal) (Sunil Kumar Agarwal)
Chairman & Managing Director Whole Time Director
Sd/- DIN: 00005981 DIN: 00005973
Sunil Wahal
Partner
Membership No. 087294
Sd/- Sd/-
(Harish Kumar Agarwal) (Khem Chand)
Place: Gurugram Chief Financial Officer Company Secretary
Date : 6th May, 2024 (ICAI M. No. 075505) (M.No.- F10065)
Mar 31, 2023
1.13 Provisions, contingent liabilities, contingent assets
A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligations at the end of the reporting period. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the changes in the provision due to the passage of time are recognized as finance cost.
Contingent liabilities are disclosed in the case of:
a) a present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;
b) a present obligation arising from the past events, when no reliable estimate is possible; and
c) a possible obligation arising from past events, unless the probability of outflow of resources is remote.
Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefit is probable.
1.14 Share based payment
a) Equity-Settled share based payments to employee (primarily employee stock option scheme) and others providing similar services are measured at the fair value of the equity instrument at the grant date.
b) The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of revision of the original estimates, if any, is recognized in statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to share based payment reserve.
c) The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
1.15 Employee benefits
A. Defined contribution plans
Retirement benefit in the form of contribution to provident fund and pension fund are charged to statement of Profit and Loss.
B. Defined benefit plan (unfunded)
Gratuity is the nature of a defined benefit plan.
Provision for gratuity is calculated on the basis of actuarial valuation carried out at reporting date and is charged to statement of profit and loss. The actuarial valuation is computed using the projected unit credit method.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amount included in net interest on the net defined benefit liability and the return on plan assets (excluding amount included in net interest on the net defined benefit liability) are recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurement is not reclassified to profit or loss in subsequent periods.
C. Other employee benefits (unfunded)
Leave encashment is recognized as an expense in the statement of profit and loss account as and when they accrue. The Company determines the liability using the projected unit credit method with actuarial valuations carried out as at balance sheet date.
1.16 Revenue recognition
Revenue from sale of goods and services
The Company derives its revenue from sale of manufactured goods & traded goods primarily from steel segment and also from Royalty services in respect of franchisee arrangement. The Company recognizes revenue from sale of products & services at a time when performance obligations are satisfied and upon transfer of control of promised products and services to the customer in an amount that reflects the consideration, the Company expects to receive in exchange for their products or services. The Company disaggregates the revenue based on nature of products. The revenue from sale of goods and services is net of variable consideration on account of various discounts and schemes offered by the Company.
Dividend income
Dividend income is recognized when the right to receive is established and there is a reasonable certainty of its collection.
Interest income
Interest income is recognized using the EIR method. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial
instruments (for example, prepayment, extension, call and similar options) but does not consider the expected credit loss.
Insurance income
Income in respect of insurance claims recognized on acceptance basis or when there is reasonable certainty that the ultimate collection will be made.
Others
Income in respect of other claims and commissions are measured at fair value and recognized when there is reasonable certainty that the ultimate collection will be made.
1.17 Taxes on income
Income tax expenses comprise current tax expenses and the net change in the deferred tax asset or liabilities during the year. Current and deferred tax are recognized in statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
Current tax
The Company provides current tax based on the provisions of the Income Tax Act, 1961 applicable to the Company.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.
Deferred tax liabilities are recognized for all taxable temporary differences.
Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
1.18 Earnings per share
Basic earnings per share are calculated by dividing the profit after tax or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. In case there are any dilutive securities during the period presented, the impact of the same is given to arrive at diluted earnings per share
1.19 Segment reporting
The Chief Operational Decision Makers (Board of Directors) monitors the operating results of it business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with the profit or loss in the financial statements. The Operating Segments have been identified on the basis of the nature of products/services.
a) Segment revenue includes sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.
b) Expenses that are directly identifiable with/ allocable to segments are considered for determining the segment results. Expenses which relate to the Company as a whole and not allocable to segments are included under unallocable expenditure.
c) Income which relates to the Company as a whole and not allocable to segments is included in unallocable income.
d) Segment result includes margin on inter-segment sales which are reduced in arriving at the profit before tax of the Company.
e) Segment assets and liabilities include those directly identifiable with the respective segments. Un-allocable assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.
Inter-Segment transfer pricing Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis and are on an arm''s length basis in a manner similar to transactions with third parties.
1.20 Leases
In accordance with Ind AS 116, the Company recognizes right of use assets representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of right of use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before commencement date less any lease incentive received plus any initial direct cost incurred and an estimate of cost to be incurred by lessee in dismantling and removing underlying asset or restoring the underlying asset or site on which it is located. The right of use asset is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any, and adjusted for any re-measurement of lease liability. The right of use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right of use asset. The estimated useful lives of right of use assets are determined on the same basis as those of property, plant and equipment. Right of use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.
The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on lease liability, reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect any reassessment or lease modification or to reflect revised-in-substance fixed lease payments. The Company recognizes amount of re-measurement of lease liability due to modification as an adjustment to write off use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of right of use assets is reduced to zero and there is further reduction in measurement of lease liability, the Company recognizes any remaining amount of the remeasurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all assets that have a lease term of 12 months or less unless renewable on long term basis and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense over lease term.
1.21 Foreign exchange transactions
Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction. All monetary foreign currency assets and liabilities are converted at the exchange rates prevailing at the reporting date. All exchange differences arising on translation of monetary items are dealt with in the statement of profit and loss.
1.22 Recent amendment
Ministry of Corporate Affairs (''''MCA'''') notifies new standards or amendments to the existing standards under companies (Indian Accounting Standards) Rules as issued from time to time on 31st March, 2023. MCA amended the companies (Indian Accounting Standards) Amendment Rules, 2023, as below:
Ind AS 1 - Presentation of Financial Statements -
This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after 1st April , 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after 1st April , 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.
Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.
(c) Term/ rights attached to equity shares
The Company has only one class of equity shares having a par value of ''10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
(d) Dividend
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange.
The amount of per share dividend recognized as distributions to equity shareholders during FY 2022-23 pertaing to FY 2021-22 amounted to '' 269.36 Lakhs have been shown as deduction from retained earning.
The Board of directors of the Company in their meeting held on 18th May, 2023 have proposed dividend of '' 1.50 per share for the financial year ended 31st March, 2023 for the approval of shareholders.
Nature and purpose of reserve:
a) Capital reserve:
The excess of net assets taken over the respective investments carried in Transferor Companies/ Demerged Company is treated as capital reserve on account of meger, refer note 51. Capital reserve on account of merger is not available for the distribution to the shareholders.
b) Securities premium:
Securities premium includes premium on issue of shares. It will be utilized in accordance with the provisions of the Companies Act, 2013.
c) Other comprehensive income:
The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity.
d) Retained Earning:
Represents surplus/ (deficit) in statement of Profit and Loss during the year, including retained earnings of Transferor Companies/ Demerged Company on account of merger.
(i) In accordance with the scheme, all the assets and liabilities [including GECL (Covid Loan)] of Demerged Business which ceases to be assets and liabilities of the Company as at Appointed Date of 1st April, 2022, has been reduced from the books of accounts of the Company at respective book values as appearing at 1st April, 2022. Though the outstanding amount of GECL (Covid Loan) of ''1,169.58 Lakhs ceases to be a liability of the Company, the change of name to Kamdhenu Colour and Coatings Limited (Resulting Company No. 2) in the records of the Banker is still awaited.
(ii) Common Covid-19 Emergency Credit Line (CCECL) (Term Loan) from State Bank of India and Indian Bank are secured by way of Primary :
a) Extension of first pari passu charge by way of hypothecation charge on entire current assets (present and future) of the Company.
Collateral :
a. Extension of first pari passu charge by way of hypothecation charge on entire fixed assets (movable and immovable) of the Company both present and future including plant and machinery except vehicle financed by other banks.
b. Extension of first pari passu charge by way of equitable mortgage over factory land and building of the company situated at A-1112 & A-1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
Guarantee :
c. Personal Guarantee of the followng directors:-
(i) Satish Kumar Agarwal (Chairman and Managing Director).
(ii) Sunil Kumar Agarwal (Whole time director)
(iii) Saurabh Agarwal (Independent director)
(iv) Sachin Agarwal (Whole time director)
(iii) Vehicle loans from banks are secured by hypothecation of respective vehicle.
(iv) The Company has repaid all its banking loans during the financial year 2022-23
(i) The Company has repaid working capital loan of Indian Bank and State Bank of India during financial year 2022-23. Indian Bank has released all hypothecation and mortgages from all assets.
(ii) Working capital loan from State Bank of India are secured by way of primary :
a. First pari passu charge by way of hypothecation charge on entire current assets (present and future) of the Company. Collateral :
a. First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.
b. First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A- 1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
Guarantee :
c. Personal guarantee of the followng directors:-
(i) Satish Kumar Agarwal (Chairman and Managing Director).
(ii) Sunil Kumar Agarwal (Whole time director)
(iii) Saurabh Agarwal (Independent director)
(iv) Sachin Agarwal (Whole time director)
(iii) In accordance with the scheme, all the assets and liabilities [including GECL (Covid Loan)] of Demerged Business which ceases to be assets and liabilities of the Company as at Appointed Date of 1st April, 2022, has been reduced from the books of accounts of the Company at respective book values as appearing at 1st April, 2022. Though the outstanding amount of GECL (Covid Loan) of ''1,169.58 Lakhs ceases to be a liability of the Company, the change of name to Kamdhenu Colour and Coatings Limited (Resulting Company No. 2) in the records of the Banker is still awaited.
B) LEAVE ENCASHMENT
The provision for leave encashment based on acturial valuation has been included in provisions-current and non-current and does not require disclosure as mentioned in para 158 of Ind AS 19.
Defined contribution plan
The Company deposit an amount determined a fixed percentage on salary paid of every month to the state administerd provident fund, employee state insurance and labour welfare fund for the benefit of employees.The total amount recognized in statement of profit and loss during the financial year is '' 119.58 Lakhs (31st March, 2022: '' 112.76 Lakhs) and is included in note 34 " Employees benefit expensesâ.
FINANCIAL RISK MANAGEMENT
The Company''s activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk and capital risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse effects on the financial performance of the Company.
i) Commodity risk
Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar, the main product in steel segment. The requirement of raw material is sourced on spot basis so as to float with fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw material costs.
ii) Credit risk
The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored.
Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these polices factor in the customer''s financial position, past experience and other customer specific factors. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off, when a debtor fails to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognized in statement of profit and loss. The Company has followed expected credit loss (ECL) model to provide for provision for ECL allowance.
The Company do not envisage any financial difficulties resulting in additional credit risk higher than usual credit terms due to COVID-19 outbreak and allowance for expected credit loss is not estimated to exceed the amount already created in books of accounts. The Company has invested in Portfolio Management Scheme with reputed asset management company and do not forsee any credit risk.
iii) 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 and 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 condition, without incurring unacceptable losses or risking damage to the Company''s reputation.
The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans. The Company considers liquidity risk as low risk.
BUSINESS COMBINATION
During the year, the Hon''ble National Company Law Tribunal, Chandigarh Bench (NCLT) vide its order dated 3rd June, 2022 has approved the Scheme of Arrangement involving merger/demerger of Kamdhenu Concast Limited, Kamdhenu Overseas Limited, Kamdhenu Paint Industries Limited, Kamdhenu Infradevelopers Limited, Kamdhenu Nutrients Private Limited, Kay2 Steel Limited, Tiptop Promoters Private Limited (Transferor Companies), Kamdhenu Limited (Transferee Company), Kamdhenu Ventures Limited (Resulting Company No.1) and Kamdhenu Colour and Coatings Limited (Resulting Company No. 2). The Scheme became effective on 18th July, 2022, upon filing of the NCLT Order by the Transferor Companies, Transferee Company, Resulting Company No.1 and Resulting Company No. 2, with the Registrar of Companies, NCT of Delhi & Haryana.
Rationale of scheme:
(i) Steel and Paint Business have substantially different character. Both the business segments require sharper focus and management bandwidth for growth; which is not possible as a single entity. In relation to future fund raise, there are separate set of investors for each of the businesses. The valuation and investment parameters are also different for each of these businesses.
(ii) Better, efficient and economical management, cost savings, pooling of resources, reduction of corporate tiers, creating better synergy across the group, optimum utilization of resources, rationalization of administrative expenses/ services, control and running of businesses and further development and growth of the business;
(iii) Enable pooling of financial, commercial and other resources and considerable synergy of operations would be achieved from business and administrative point of view and conserve administrative resources and cost overheads; and
(iv) To achieve better financial and business prospects.
Merger:
The Company has also given impact of scheme of arrangement w.r.t amalgamation of Kamdhenu Concast Limited, Kamdhenu Overseas Limited, Kamdhenu Paint Industries Limited, Kamdhenu Infradevelopers Limited, Kamdhenu Nutrients Private Limited, Kay2 Steel Limited, Tiptop Promoters Private Limited as at 1st April, 2022, in accordance with Pooling of Interest method as given in Ind AS 103, accordingly:
(i) All the assets, and liabilities recorded in the books of transferor Companies have been transferred to the company at their respective carrying values.
(ii) Cross investment and inter-company balances have been cancelled.
(iii) Surplus arising out of amalgamation has been credited to Capital Reserves.
(iv) The identity of reserves of the Transferor Companies is incorporated in the books of the Transferee Company in the same form as they appeared in the financial statements prior to the Scheme coming into effect.
(v) The Shareholders of transferor companies against cancelation of 78,04,145 cross holding equity shares of '' 10/- each are allotted 78,04,145 Equity Shares of '' 10/- each and 1,09,58,078 9% non-Cumulative Compulsorily Redeemable Preference Shares of '' 10/- each of the Company on 20th July, 2022 and redeemed by the company at par on 8th September, 2022.
(vi) Any deficit arising out of amalgamation (including on account of cancellation of cross holdings or any other inter-company balances) shall be adjusted against capital reserves , if any, in the books of the Transferee Company and the balance will be adjusted in other available reserves. Whereas any surplus arising out of Amalgamation (including on account of cancelling of cross holdings or any other inter-company balances) shall be credited to capital reserve.
(vii) Upon Amalgamation, the loans & advances of '' 1,026.31 Lakhs given by the Transferor Companies to certain borrowers, were transferred into the books of the Company. During the financial year 2022-23, loans & advances of '' 766.80 Lakhs were repaid by the respective borrowers to the Company.
The Company has applied principles of Appendix C to Ind AS 103 - ''Business Combinations'' on ''Business Combinations of entities under Common Control'' w.e.f. 1st April, 2021 and accordingly previous year numbers including disclosures have been restated to give the effect to the scheme of merger as if the common control business combination had occurred from the beginning of the earliest period presented irrespective of actual date of the combination.
Demerger:
Pursuant to the Scheme of Arrangement became effective, the Paint Business (Demerged Business) of Kamdhenu Limited have been transferred to and vested with the Resulting Company No. 2 Kamdhenu Colour and Coatings Limited with effect from 1st April, 2022 being the Appointed Date.
Accounting of Demerger as per approved Scheme:
a) In accordance with the scheme, all the assets and liabilities of Demerged Business (difference between assets and liabilities referred to as net assets) which ceases to be assets and liabilities of the Company as at appointed date of 1st April, 2022, has been reduced from the books of accounts of the Company at respective book values as appearing in books of accounts of the Company as at 1st April, 2022 and
b) The Company made an adjustment equal to the net assets of the demerged Business, first in the Capital Reserve to the extent available, thereafter in the Securities Premium to the extent available and residual balance in the Retained Earnings under the head "Other Equityâ;
Further, upon demerger of the paint business of the Company, statement of profit and loss account for year ended 31st March, 2022 have been reinstated to make it comparable as profit/(loss) from discontinued operations.
Shareholders of the Company in their Extraordinary General Meeting held on 9th December, 2022, has considered and approved to create, offer, issue and allot Convertible Warrants ("Warrantsâ) on preferential basis, in one or more tranches, up to maximum of 50,00,000 (Fifty Lakhs Only) Warrants entitling the Proposed Allottees/ Warrant Holder to exercise option to convert and get allotted one equity share of face value of '' 10/- (Rupees Ten only) each fully paid-up against each warrant, within 18 (Eighteen) months from the date of allotment of warrants at a price of '' 141/- (Rupees One Hundred and Forty One Only) (including premium of '' 131/- each) or such other higher price as may be ascertained by the Statutory or Regulatory Authorities, to the persons belonging to Promoter Group and Non-Promoters entities. Application for in-principal approval is pending with BSE and NSE.
Disclosure in accordance with requirements under Ind AS-10 Event after the reporting date:
The Board of Directors of the Company have recommended dividend of '' 1.50 per share for the financial year ended 31st March, 2023 for the approval of shareholders. The actual dividend outgo will be dependant on share capital outstanding as on record date.
Previous years figures have been regrouped, rearranged or reclassified, whenever necessary to confirm the current year''s classification. Previous year balance sheet figures includes the amount of demerged business hence current year balance sheet figures are not comparable.
As per our report of even date attached
For S. S. Kothari Mehta & Company For and on behalf of board of directors of Kamdhenu Limited
Chartered Accountants (Satish Kumar Agarwal) (Sunil Kumar Agarwal)
Firm Registration No. 000756N Chairman & Managing Director Whole Time Director
DIN: 00005981 DIN: 00005973
Sunil Wahal (Harish Kumar Agarwal) (Khem Chand)
Partner Chief Financial Officer Company Secretary
Membership No. 087294 (ICAI M.No.- 075505) (M.No.- F10065)
Place: Gurugram Date : 18th May, 2023
Mar 31, 2022
a) The concentration of credit risk on trade receivable is limited due to the fact that the customer base is large and is unrelated to each other.
b) No trade receivable is due from directors & other officers of the Company either singly or severely with any other person or firm or private companies in which any director is interested as partner/ director.
c) The Company has assessed the risk of recovery from trade receivable arising on account of Pandemic Covid-19 and based on its assessment, the management of company do not foresee any impact on realisability of Trade receivable and is of the view that allowance for Expected credit loss created is sufficient and no further provisioning on this account is necessitated.
(d ) Term/ rights attached to equity shares
The Company has only one class of equity shares having a par value of '' 10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
(d) Dividend
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. The remittance of dividends outside India is governed by Indian law on foreign exchange.
The amount of per share dividend recognized as distributions to equity shareholders during FY 2021-22 pertaing to FY 2020-21 amounted to '' 215.48 Lakhs have been shown as deduction from retained earning.
The Board of directors of the Company in their meeting held on 30th May, 2022 have proposed dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders.
(i) CCECL (Term Loan) from State Bank of India and Indian Bank are secured by way of Primary :
a) Extension of First pari passu charge by way of hypothecation charge on entire current assets (present and future)
of the Company.
Collateral
a. Extension of First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.
b. Extension of First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A-1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
Guarantee :
a. Personal Guarantee of whole time directors.
(ii) Vehicle loans from Banks are secured by hypothecation of respective vehicle.
22.1 Working Capital Loan from State Bank of India and Indian Bank are secured by way of Primary :
a. First pari passu charge by way of hypothecation charge on entire current assets (present and future) of the Company. Collateral :
a. First pari passu charge by way of hypothecation charge on entire fixed assets (movable & immovable) of the Company both present & future including plant & machinery except vehicle financed by other banks.
b. First pari passu charge by way of equitable mortgage over factory land & building of the Company situated at A-1112 & A- 1114, RIICO Industrial Area, Phase III, Bhiwadi Rajasthan and at E-538 & E-539A, RIICO Industrial Area, Chopanki, Rajasthan.
a. Personal Guarantee of whole time directors.
22.2 The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of accounts of the Company.
b) The amount of interest due and payable for the year due to delay in making payment under Micro, Small and Medium Enterprise Development Act 2006 is '' 30.18 Lakhs (P.Y. '' 29.68 Lakhs).
c) Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.
During the year the Company has contributed an amount of '' 2.50 Lakhs towards old age home and a rescue center set up by Earth Savior Foundation (NGO). (CSR Reg. No. : CSR00002026)
* Includes unspent amount on on-going project on Education & Skill development program and also medical facilities by Kamdhenu Jeevandhara Foundation amounting to '' 34.30 Lakhs for which provision for liability for the amount has been made as at 31st March, 2022 and is separately disclosed on ''âUnspent CSR Expenses" in other current financial liabilities in note no. 25 representing the extent to which the amount is to be transferred with in 30 days of end of financial year ended 31st March, 2022. The Company has since transferred unspent CSR expenses amount of '' 34.30 Lakhs to ''â Unspent CSR account- FY 2021-2022 on 22nd April, 2022 in compliance with provision of section 135 (6) of Companies Act, 2013.
*Demand of '' 912.64 Lakhs as penalty under Rule 26 of Central Excise Rules, 2002, at Kamdhenu Limited as Co-noticee in various matters out of which '' 8 Lakhs has been deposited under protest. All matters are pertaining to FY 2008-09 and appeal before CESTAT have been filed against each orders except order dated 22nd March, 2022 of '' 607.64 Lakhs which is under appeal filing process.
**Demand of '' 709.83 Lakhs has been determined under section143(3) of Income tax Act 1961 for A.Y. 2018-19 out of which '' 142.30 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC). **Demand of '' 3.39 has determined under section154 of Income tax Act 1961 for A.Y. 2019-20 out of which '' 0.70 Lakhs has been deposited under protest and appeal is pending before National Faceless Appeal Centre (NFAC).
a) Projected unit credit (PUC) actuarial method to assess the planâs liabilities allowing for retirements, deaths-in-service and withdrawals (Resignations / Terminations).
b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan accrual formula and service as at the beginning and end of the period, but using memberâs final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.
The provision for leave encashment based on actuarial valuation has been included in provisions - current and non-current and does not require disclosure as mentioned in para 158 of Ind AS 19.
The Company makes contribution to Statutory Provident Fund in accordance with Employees Provident Funds and Miscellaneous Provisions Act 1952. This is the post employment benefit and is in the nature of defined contribution plan. The total amount contributed to provident fund during the financial year is '' 184.60 Lakhs (previous year '' 159.56 Lakhs) and is included in Note no. 34 " Employees Benefit expenses".
The Companyâs activities expose it to variety of financial risks viz. commodity price risk, credit risk, liquidity risk and capital risk. These risks are managed by the senior management of the Company supervised by the Board of Directors to minimize potential adverse effects on the financial performance of the Company.
i) Commodity Risk
Demand/supply risk are inherent in the prices of Ingot/Billet, the main raw material and also the prices of TMT bar, the main product in Steel segment. The requirement of raw material is sourced on spot basis so as to float with fluctuations in the market and to guard against price volatility. The Company has also linked its sales to raw material prices so that the Company has adequate cushion to protect its margin in the event of any increase/decrease in raw material costs. The main raw material in paint segment is Alkyd Resin/Titanium Dioxide and its prices fluctuates based on change in international crude oil prices. In Paints segment, the volatility in final product prices is dependent on market forces.
ii) Credit Risk
Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the credit worthiness of the banks, the Company works with. The Company has specific policies for managing customer credit risk on an ongoing basis; these polices factor in the customerâs financial position, past experience and other customer specific factors. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company makes provision for doubtful debt or writes off when a debtor fails to make contractual payments based on provisioning matrix. When loans or receivables have either been provided for or written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognized in Statement of Profit and Loss. The Company has followed Expected Credit Loss (ECL) model to provide for provision for ECL allowance.
The Company do not envisage any financial difficulties resulting in additional credit risk higher than usual credit terms due to COVID-19 outbreak and allowance for expected credit loss is not estimated to exceed the amount already created in books of accounts. The Company has invested in Portfolio Management Scheme with reputed asset management company and do not foresee any credit risk.
iii) 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 and 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 condition, without incurring unacceptable losses or risking damage to the Companyâs reputation.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank overdrafts, bank loans. The Company considers liquidity risk as low risk.
Interest rate is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rate. The Company has taken term loan and working capital limits from bank which has considered as variable rate borrowing.
The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company monitors capital using gearing ratio which is net debt divided by total equity. The Companyâs net debts includes interest and non interest bearing loans less cash and bank balances.
Operating segments are established on the basis of those components that are evaluated regularly by the Management in deciding how to allocate resources and in assessing performance. The Company is principally engaged in two business segment viz., Steel and Paint.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting:
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".
b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".
The Ministry of Corporate Affairs ( MCA ) through Companies ( Indian Accounting Standard) Amendment Rules 2019 and Companies ( Indian Accounting Standard) Second Amendment Rules has notified Ind AS 116 ''leasesâ which replaces existing lease standard, Ind AS 17 Leases and other Interpretation. Ind AS 116 sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single on balance sheet lease accounting model for lessees.
The Company has adopted Ind AS 116 effective annual reporting period beginning from 1st April, 2019 and applied the standard to its leases retrospectively with the cumulative effect of initially applying the standard, recognised on the date of initial application (1st April, 2019). The cumulative effect of initially applying standard has been recognised as an adjustment to opening balance of retained earnings as on 1st April, 2019.
On application of Ind AS 116, the nature of expense has changed from lease rent in previous periods to depreciation cost for right of use asset and finance cost for interest accrued on lease liability.
Depreciation on right of use asset is '' 183.30 Lakhs and interest on lease liability for year ended 31st March, 2022 is '' 73.43 Lakhs Lease Contracts entered by the Company majorly pertains to building taken on lease to conduct the business activities in ordinary course.
The leases that the Company has entered with lessors towards properties used as corporate office/office are long term in nature and no changes in terms of those leases are expected due to Covid-19.
The Hon''ble National Company Law Tribunal, Chandigarh Bench, Chandigarh (''NCLT'') during the hearing held on 22nd April, 2022, has reserved the order on the Scheme of Arrangements (''Scheme'') including the De-merger of the Paint Business of the Company into a separate entity. The order is pending to be pronounced by the NCLT. Accordingly, no disclosure of accounting effect of such amalgamation and de-merger in the books of accounts of the Company has been made in the financial statements for the FY 2021-22.
The Company continues to monitor the impact of COVID 19 on its business including its impact on customers, supply chain etc. Due care has been exercised on significant accounting judgement and estimates including in relation to recoverability of receivables, inventory and other financial assets based on information available to date while preparing the Companyâs financial statements for the FY 2021-22.
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under companies (Indian Accounting Standards) Rules as issued from time to time on 23rd March, 2022. MCA amended the companies (Indian Accounting Standards) Amendment Rules, 2022, as below
Ind AS 16- Property Plant and equipment- The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing. If any, shall not be recognized in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.
Ind AS 37- Provisions, Contingent Liabilities and Contingent Assets- The amendment specifies that the "cost of fulfillingâ a contract comprises the ''costs that relate directly to the contract'', Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labor, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after 1st April, 2022, although early adoption is permitted, The Company has evaluated the amendment and there is no impact on the financial statement.
DISCLOSURE IN ACCORDANCE WITH REQUIREMENTS UNDER IND AS-10 EVENT AFTER THE REPORTING DATE:
The Board of Directors of the Company have recommended dividend of '' 1/- per share for the financial year ended 31st March, 2022 for the approval of shareholders. The actual dividend outgo will be dependent on share capital outstanding as on record date.
Previous years figures have been regrouped, rearranged or reclassified, whenever necessary to confirm the current yearâs classification.
Mar 31, 2018
RECONCILIATION NOTES
The Company has adopted Ind AS with effect from 1st April 2017 with comparatives figures being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
Note 1: Fair value of Investments
Under the previous GAAP, investments in Equity Shares were classified as long-term investments or current investments based on the intended holding period and realisability. Longterm investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments amounting to Rs. 20.29 Lakhs have been recognized in retained earnings (net of related deferred taxes of Rs.46.94 Lakhs) as at the date of transition and subsequently in the Other Comprehensive Income for the year ended 31st March, 2017
Note 2: Fair Value of Property, Plant and Equipments
The Company has elected to measure class of assets comprising Land, Building and Plant & Machinery at fair value on transition date and considered that fair value as deemed cost. The resulting fair value change of these class of Land, Building and Plant & Machinery amounting to Rs.2,797.94 Lakhs has been recognized in retained earnings (net of deferred taxes of Rs.1,048.47 Lakhs) as on date of transition. The depreciation impact on account of deemed carrying amount based on fair value amounting to Rs.225.52 Lakhs for the year ended 31st March, 2017 have been charged to the Statement of Profit and Loss for the year ended 31st March, 2017
Note 3: Dividend
As per Ind AS dividend is recognized only when it is approved by the shareholders and hence dividend provision of Rs.163.80 Lakhs together with tax on dividend of Rs.33.35 Lakhs (total Rs.197.15 Lakhs) proposed for the year ended 31st March, 2016 was reduced from provisions and added to the retained earnings in the opening balance as on 01st April, 2016.
Note 4: Expected Credit Loss
Under Indian GAAP, no provision for doubtful debts was made. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss (ECL) model. Due to this model, the Company impaired its trade receivables by Rs.541.39 Lakhs as on transition date which has been adjusted as on 1st April, 2016 in retained earnings. The impairment of Rs.64.67 Lakhs for the year ended 31st March, 2017 has been recognized in trade receivables and Statement of Profit and Loss for the year ended 31st March, 2017.
Note 5: Dealer/ Distributor Deposits
The Company has received security deposits from its Dealers and Distributors under the Dealership Agreement at rates below the prevailing market rates. Under the Indian GAAP these Security Deposits were shown under long term liability. Under the Ind AS, these deposits have been revalued at fair value using the present value method using a discount rate which is market borrowing rate. An amount of '' 14.89 Lakhs was reduced from Deposit amount and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.
Note 6: Prior Period Adjustment
An amount of Rs.0.34 Lakhs shown under prior period adjustment under Indian GAAP is added to profit after tax as on 31st March, 2017, under Ind AS it was charged to retained earnings as on 01st April, 2016.
Note 7: Defined Benefit Obligations
The actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in the net interest on the net defined benefit liability are recognized in balance sheet through other comprehensive income. Thus, employee benefit expenses are reduced by Rs.1.54 Lakhs and recognized in other comprehensive income gross of tax for the year ended 31st March, 2017
Note 8: Security Deposit Paid
Under IGAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly the Company has fair valued these security deposits under Ind AS. Difference between the fair value and the transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the security deposit reduced by Rs.1.32 Lakhs and charged to the Statement of Profit and Loss during the year ended 31st March, 2017.
Note 9: Rebate and Discounts
Under IGAAP rebate and discounts were shown as part of ''Other Expenses''. Under Ind AS, these are netted off from Sales. Accordingly, Revenue from Operations for the year ended 31st March, 2017 has been reduced by Rs.60.91 Lakhs with corresponding adjustment in Other Expenses.
Note 10: Other Comprehensive Income
Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, the Statement of Profit and Loss under previous GAAP has been reconciled with Statement of Profit and Loss and Other Comprehensive Income as per Ind AS.
Note 11: Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. This has resulted in increase in deferred tax liability (net) by Rs.814.16 Lakhs as on 01st April, 2016 as follows:
Note 12:
The transition from previous GAAP to Ind AS has not had a material impact on the statement of cash flows.
Note 13:
In line with the requirements of Ind AS, the Company has reclassified certain assets and liabilities as at 01st April, 2016 and 31st March, 2017. These majorly include reclassification between current and non-current investments, security deposits and prepayments, investments, current/ non current financial/ non financial assets/ liabilities.
Mar 31, 2016
1. Terms/rights attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs.10/- Per Share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 st March 2016, the amount of proposed dividend recognized as distribution to equity shareholders is Re. 0.70 per equity share of Rs. 10each (Previous year Re. 0.70 per share).
The repayment of Equity share capital in the event of Liquidation and buy back of Shares are possible subject to prevalent regulations. In the event of Liquidation, normally the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash. The Company has neither allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date.
2 Nature of Security of Term Loan from Bankand Financial institution:
#Term Loans from State Bank of Bikaner & Jaipur are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No. A-1112&A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539ARIA, Chopanki,Rajasthan & Personal guarantee of whole time directors.
* Vehicle loans from Banks are secured by hypothecation of respective vehicles.
Nature of Security of Short Term Borrowings:
#Working Capital Loan from Banks are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts & Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including equitable mortgage of land & building at Plot No.A-1112 &A-1114,RIA. Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki, Rajasthan & Personal guarantee of whole time directors.
3. As per Accounting Standard-17 â Segment Reportingâ issued by ICAI, the Company has identified three reportable business segments viz. Steel, Power & Paints and following policies have been adopted for the segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which could not be allocable to a specific segment are being disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and liabilities in respective segment. Investments, tax related assets, other assets and liabilities that cannot be allocated to a segment on a reasonable basis have been disclosed as ''Un-allocable''.
4. Disclosures in respect of Related Parties as per Accounting Standard 18 "Related Party Disclosures" issued by ICAI, with whom transactions were carried out in the ordinary course of business during the year as given below;
Mar 31, 2015
1. Terms/rights attached to Equity Shares
The Company has only one class of equity shares having a par value of
Rs.10/- Per Share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2015, the amount of per share dividend
recognised as distribution to equity shareholders is Re. 0.70 per
equity share of Rs. 10 each (Previous year Rs. Nil per share).
The repayment of Equity share capital in the event of Liquidation and
buy back of Shares are possible subject to prevalent regulations. In
the event of Liquidation, normally the equity shareholders are eligible
to receive the remaining assets of the company after distribution of
all preferential amount, in proportion of shareholding.
The Company has not allotted any fully paid up shares pursuant to
contract(s) without payment being received in cash. The Company has
neither allotted any fully paid up shares by way of bonus shares nor
has bought back any class of shares during the period of five years
immediately preceding the balance sheet date.
2. Nature of Security of Term Loan from Bank and Financial
institution:
# Term Loans from State Bank of Bikaner & Jaipur are secured by way of
:
(a) Pari passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No. A- 1112 & A-1114,RIA.
Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan &
Personal guarantee of whole time directors.
* Vehicle loans from Banks are secured by hypothecation of respective
vehicles.
## Term Loans from RIICO are secured by way of First pari passu charge
over the movable and immovable assets including equitable mortgage of
land & building at Plot No. A-1112 & A-1114,RIA. Bhiwadi, Rajasthan and
Personal guarantee of whole time directors.
#Working Capital Loan from Banks are secured by way of:
(a) Pari passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) Pari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No.A-1112 & A-1114,RIA.
Bhiwadi, Rajasthan & Plot no. E-538-539A RIA, Chopanki,Rajasthan &
Personal guarantee of whole time directors.
3. Contingent Liabilities and Commitments (to the extent not provided
for) (Amount in Rs.)
a. Contingent Liabilities
Particulars Year ended Year ended
31st March, 2015 31st March, 2015
(A) Claims against the company not
acknowledged as debt
- Central Excise & Service Tax 166,233,152 46,618,128
- Income Tax 1,827,000 8,921,000
- Sales Tax & Central Sales Tax 27,598,891 36,192,544
(B) Guarantees issued by Bank 4,300,000 4,520,000
199,959,04 96,251,672
b. Commitments
Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(Net of advance) 3,128,134 1,989,593
3,128,134 1,989,593
TOTAL (a b) 203,087,177 98,241,265
4. Some of the balances of Trade Receivables, Trade Payables, advances
and Security deposits as on 31.03.2015 are subject to confirmation. The
company had initiated legal cases on some debtors for its recovery and
the same have been included to the extent of Rs.1,07,87,259/- in
outstanding for more than six months and Rs.2,15,09,264/- in other non
current assets. The management of the company is hopeful of favourable
decision on such legal cases, hence no provision for bad and doubtful
debts have been considered. Other payables under other long term
liabilities includes Rs.2,39,33,701/- of trade payables under
litigation.
5. In the opinion of the management, current & non current assets,
loans & advances have a value on realisation in the ordinary course of
business at least equal to the amount at which thay are stated in the
Balance Sheet.
6. Effective from 01.04.2014, the company has revised estimated useful
life of its fixed assets as per the Schedule II of the Companies Act
2013. Based on current estimates, after retaining the residual value,
the carrying amount of the fixed assets of Rs.53,46,251 (net of
deffered tax assets of Rs.28,29,445) on account of fixed assets whose
useful life has already exhausted as on 1st April, 2014 have been
adjusted to General Reserves. Had there not been any change in the
useful of life of the fixed assets, net depreciation for the year ended
31.03.2015 would have been lower by Rs. 55,32,096.
7. The gross amount required to be spent by the company on CSR during
the year worked out to be Rs.10,41,236 which is yet to be spent.
8. Disclosure of related parties and transaction with them:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satish Kumar Agarwal, Chairman &
Managing Director
Sh. Sunil Kumar Agarwal, Whole Time
Director
Sh. Saurabh Agarwal, Whole Time
Director
Sh. Sachin Agarwal, Whole Time
Director
Sh. Harish Kumar Agarwal-Chief
Financial Officer
Sh. Jogeswar Mohanty-Company Secretary
Related Company M/s Kamdhenu Overseas Ltd.
9. As per Accounting Standard-28 " Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
10. Previous year figures have been reclassified/ rearranged wherever
necessary.
Mar 31, 2014
1. Terms/rights attached to Equity Shares
The Company lias only one class of equity shares having a par value of
Rs. 10/- Per Share. Each holder of equity shares is entitled to one
vote per share. The Company declares aixj pays drvidends in Indian
rupees.The repayment of Equity share capital in the event of
Liquidation and buy back of Shares are possible subject to prevalent
regulations. In the event of Liquidation, normally the equity
shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amount, in proportion of
shareholding.
2. The Company has not allotted any fully paid up shares pursuant to
contracts) without payment being receded m cash. The Company has
neither allotted any fully paid up shares by way of bonus shares nor
has bought back any dass of shares during the period of frve years
immediately preceding the balance sheet date.
3. Nature of Security oi'Term Loan from Bank and Financial
institution:
-# Term Loans from State Bank of Bikaner & Jaipur are secured by way of
(a) Pbri passu charge by way of hypothecation of stocks, book debts &
Other current assets of the company, present & future.
(b) fari passu charge over the movable and immovable assets including
equitable mortgage of land & building at Plot No. A- IIl 2 &
A-1114.R1A. Bhiwadi, Rajasthan & Plot no. E-538-539A R1A. Chopanki.
Rajasthan & Personal guarantee of whole time directors.
# # Term Loans from Rl ICO are secured by way of.
(a) First pari passu charge over the movable and immovable assets
including equitable mortgage of land & building at Plot No. A-1 112 &
A- 1114.RIA. Bhrwadi, Rajasthan and Personal guarantee of whole time
directors.
*Vehicle loans from Banks are secured by hypothecation of respective
vehicles.
4. Some of the balances of Trade Receivaoles, Trade Payables, advances
and Security deposits as on 3 i .03.2014 are subject to confirmation.
The company had initiated legal cases on some debtors for its recovery
and the same have been included to the extent of Rs.97.87,786 in
outstanding for more than six months and Rs. i .91.37.711 in other non
current assets. The management of the company is hopeful of favourable
decision on such legal cases, hence no provision for bad and doubtful
debts have been considered. Other payables under other long term
liabilities includes Rs.2.39,33.701 of trade payables under litigation.
5. In the opinion of the management, current & non current assets,
loans & advances have a value on realisation in the ordinary course of
business at least equal to the amount at which thay are stated in the
Balance Sheet.
6. The Company has already initiated the process of obtaining copies
of memorandum fifed with the concerned authonty by entities falling
under the MSMED Act 2006. The Company has received copies of the said
memorandum as on date from few entities and outstanding amount against
these memorandums are NIL.
7. The company does not have any fund for gratuity and leave
encashment liability and same is accounted for as provision or. actunal
basis. The following table summarizes the components of net
benefitsy'expenses neconginsed in the statement of profit & loss and
balance sheet.
8. As per Accounting Standard-17 " Segment Reporting issued by ICAI,
the Company has identified three reportable business segments viz.
Steel, Power & Paints and following policies have been adopted for the
segment reporting.
a) Revenu and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocate to a specific segment are being
disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and
liabilities in respective segment. Investments, tax related assets,
other assets and liabilities that cannot be aflocated to a segment on a
reasonable basis nave been disclosed as " Un-allocable".
9. .As per Accounting Standard-18 "Related Party Disclosures' issued
by The Institute of Chartered Accountants of India, the disclosure of
transactions with the related parties as defined in the Accounting
Standard are given below:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satsh Kumar Agarwal. Chairman &
Managing Director
Sh. Sum! Kumar Agarwal. Whole Time
Director
Sh. Saurabh Agarwal. Whole Time
Director
Sh. Sachin Agarwal. Whole Time
Director
Related Companies M/s Kamdhenu Overseas Ltd.
M/s Kamdhenu Nutrients Pvt Ltd.
M/s Somti Polymers Pvt. Ltd.
Mar 31, 2013
1. Contingent Liabilities and Commitments (to the extent not provided
for) lAmount in *:¦
a. Contingent Liabilities
(A) Cairns agains; the company not acknowledged as debt
- Ceniral Excise & Service Tax 42.160.&45 23.692.62S
- Income Tax 3,921,000 36.095.148
- Sales Tax & Central Sales Tax 37.542.436 38.494.436
{B) Guarantees Issued by Bank. 1.5 20.000 2.236.590
90,164,051
b. Commitments
Estimated amount of contracts
remaining to De executed an capital
account and not crowded
for ''Net of advance} 4.965.585 2.626.328
4,965.585 2,626.326
TOTAL (a b)
2. Some of the balances of Trade Receivables, Trade Payables,
advances and Security deposits as on 3 1.03.2013 and sub|ect
tdconfjiinatioo. Trade Receivables, outstanding for mere than six
months includes fts. 2,66,78,776 on w*nch legal cases have been
initiated for recovery by the company. The management of the company is
hopeful of favourable decision on such legal cases, hence no provision
for bad and doubtful debts have been considered.
3. In the opinion of the management, current & ncr> current assets,
toans a advances have a value on realisation In the ordinary course of
bus.ness at least equal io the amount at which thay are stated m the
Balance Sheet,
4. The Company has already initiated the process of obtaining copes
of memorandum filed with the concenied authority by entities falling
under the M5MED Act 2006. The Company has received copies of the sad
memorandum as on date from few entities and outstanding amount against
these memorandums are NIL,
5. The company does not have any fund for gratuity and leave
encashment liability and same is accounted for as provision on actural
basis, The following table summarizes thecomponentsofnet
benefits/expenses reconginsed ir.the statement of profit & toss and
balance sheet.
6. As per Accounting Stindand-1 7" Segment Reporting'' issued by iCfii,
the Company has identified three reportable bus-ness segments v
Expenses wfwch could noL be allocable to a specie segment are being
disclosed separately as un-allocable. b} Segment Assets and Segment
Liabilities represent assets and liabilities in respective segment.
Investments, tax related assets, other assets and liabilities mat
cannot be allocated to a segment on a reasonable basis have been
disclosed as" Un allocable",
7. As per Accounting Standard- IS '' Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
8. Previous year Inures, have been reclassified,'' rearranged where ver
necessary.
Mar 31, 2012
1) Contingent liabilities:
(A) Claims against the company/disputed liabilities not acknowledged as
debts Rs in Lacs Rs in Lacs 2010-2011 2009-2010 a) Central Excise &
Service Tax 279.97 281.97 b) Income Tax 359.07 20.90 d) Sales Tax &
Central Sales Tax 366.53 366.53 Total 1,005.57 669.40
(B) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.42.74 Lacs (Previous year Rs.328.55
Lacs) net of advances.
2) The company was subjected to search by the Directorate General of
Central Excise Intelligence (DGCEI), New Delhi during the financial
year ended 31.03.2009 and deposed a sum of Rs.100 Lacs under protest
which has been shown as "Excise Duty Deposed under Protest" in Loans &
Advances. Subsequently, the company has received a show cause notice
dated 09.05.2011 from the DGCEI, New Delhi for imposing excise duty
aggregating amount of Rs.4492 Lacs. The Company is in the process of
filing suitable reply of the alleged imposition of Excise duty and due
to pending adjudication of the show cause notice, liability on this
account has neither been considered nor disclosed in the accounts.
3) Some of the balances of sundry debtors, creditors, advances and
unsecured loans as on 31.03.2011 are subject to confirmation. Sundry
Debtors, outstanding for more than six months includes Rs.191.67 Lacs
on which legal cases have been initiated for recovery by the company.
The management of the company is hopeful of favourable decision on such
legal cases, hence no provision for bad and doubtful debts have been
considered.
4) In the opinion of the management, currents assets, loans & advances
have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet.
5) The Company has already initiated the process of obtaining copies of
memorandum filed with the concerned authority by entities falling under
the MSMED Act 2006. The Company has not received copies of the said
memorandum as on date from any such entity. In the absence of
information, the company is unable to identify units and as well as
furnish details required under the said Act.
6) The company does not have any fund for gratuity and leave encashment
liability and same is accounted for as provision.
7) Remuneration paid/payable to Managing/whole time directors during
the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).
8) During the year, in terms of memorandum of settlement/arrangement
dated 14.03.2011 arrived at before the Hon'ble Delhi High Court,
Mediation & Conciliation Centre, The company has agreed to assign trade
mark of Kamdhenu Cement, cement bricks, cement tiles and cement sheets
only falling under Class-19 of the Trade Mark Rules,2002 for a total
sum of Rs.140 Lacs in favour of Kamdhenu Cement Limited. The said
revenue net of tax has been included in the "Royalty, Trademarks &
Others" of Schedule-13.
9) Royalty,Trademarks & Others comprises royalty of Rs. 1406.79 Lacs
(Previous Year Rs.1473.98 Lacs), Sale of Trademark of Rs.133.33 Lacs
(Previous Year NIL), Income from derivatives of Rs.79.09 Lacs (Previous
Year 105.03 Lacs) and priority dealership charges of Rs.1.16 Lacs
(Previous Year 21.46 Lacs).
10) During the year, the Company has undertaken modernisation program
at its Steel Plant with capital investment of Rs.545.20 Lacs in Plant &
Machinery which have since become operational from 25.03.2011.
11) Balance with Schedule Bank in Current Accounts includes Unpaid
Divident amount of Rs.2.33 Lacs and IPO Refund amount of Rs.2.62 Lacs
(Previous Year of Rs. 2.38 Lacs & Rs.2.62 Lacs respectively).
12) The Cash flow Statement has been prepared in accordance with the
requirements of Accounting Standard-3 "Cash Flow Statement" issued by
ICAI.
13) As per Accounting Standard-17 " Segment Reporting" issue business
segments viz. Steel, Power & Paints and following policies have been
adopted for the segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocable to a specific segment are being
disclosed separately as un-allocable.
b) Segment Assets and Segment Liabilities represent assets and
liabilities in respective segment. Investments, tax related assets,
other assets and liabilities that cannot be allocated to a segment on a
reasonable basis have been disclosed as "Un-allocable".
14) As per Account Standard-28 "Impairment of Assets" issued by ICAI,
there are no indication of overall
15) Additional information pursuant to provisions of paragraph 3 & 4 of
part II of Schedule VI of the Companies Act ,1956.
16) Value of Import on CIF basis in respect of Traded goods Rs.14.85
Lacs (Previous Year NIL).
17) Expenditure in Foreign Currency on Import of Traded goods Rs.13.55
Lacs (Previous Year NIL).
18) The previous year's figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amounts
and other disclosure for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current
year
Mar 31, 2010
1) Contingent liabilities:
(A) Claims against the company/disputed liabilities not acknowledged as
debts
Rs in Lacs Rs in Lacs
2009-2010 2008-2009
a) Central Excise & Service Tax # 281.97 123.65
b) Income Tax 20.90 20.90
d) Sales Tax & Central Sales Tax 366.53 97.64
Total 669.40 242.19
- Includes Rs.156.35 Lacs on account of show cause notices issued by
the Excise Department during the Financial Year 2009-10.
(B) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.328.55 Lacs (Previous year Rs.8.89
Lacs) net of advances.
2) Some of the balances of sundry debtors, creditors, advances and
unsecured loans as on 31.03.2010 are subject to
confirmation. Sundry Debtors, outstanding for more than six months
includes Rs.108.79 Lacs and others includes Rs.5.64 Lacs on which legal
cases have been initiated for recovery by the company. The management
of the company is hopeful of favourable decision on such legal cases,
hence no provision for bad and doubtful debts have been considered.
3) In the opinion of the management, currents assets, loans & advances
have a value on realisation in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet.
4) The Company has already initiated the process of obtaining copies of
memorandum filed with the concerned authority by entities falling under
the MSMED Act 2006. The Company has not received copies of the said
memorandum as on date from any such entity. In the absence of
information, the company is unable to identify units and as well as
furnish details required under the said Act.
5) The company does not have any fund for gratuity and leave encashment
liability and same is accounted for as provision
6) Remuneration paid/payable to Managing/whole time directors during
the year was Rs.148.68 Lacs (Previous Year Rs.148.68 Lacs).
7) Royalty & others comprises royalty of Rs.1473.98 Lacs, Income from
commodity derivaties of Rs.105.03 Lacs and priority dealership charges
of Rs.21.46 Lacs.
8) Provision for tax for current year amounting to Rs.42.52 Lacs
(Previous year Rs.26.77 Lacs) have been made U/s 115JB of Income Tax
Act,1961. Tax credit available U/s 115JAA of Income Tax Act.1961
amounting to Rs.33.11 Lacs (Previous year Rs.26.77 Lacs) have been
taken as "MAT Credit Entitlemant Account" by giving credit to profit &
loss account.
9) The company was subjected to search by Income Tax and Excise
Authorities during the year ended 31st March,2009 .The proceedings are
under process. Income Tax & Excise Duty liability,if any,upon
conclusion of search proceedings shall be provided for in the year in
which assessment by concerned authorities are completed.Pending
assessment by Excise Authority,the company has deposited a sum of
Rs.100 Lacs under protest,which has been shown as Excise Duty
Deposited under Protest in Loans & Advances.
10) Balance with Schedule Bank in Current Accounts includes Unpaid
Divident amount of Rs.2.38 Lacs and IPO Refund amount of Rs.2.62 Lacs (
Previous Year of Rs. 2.74 Lacs & Rs.2.98 Lacs respectively).
11) The Cash flow Statement has been prepared in accordance with the
requirements of Accounting Standard-3 "Cash Flow Statement" issued by
ICAI.
12) Sales includes Rs.3.53 Lacs (Previous Year Rs.30.70 Lacs) of stores
items sold being not usable.
13) As per Accounting Standard-17 " Segment Reporting" issued by ICAI,
the Company has identified three reportable business segments viz.
Steel, Power & Paints and following policies have been adopted for the
segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis
of relationship to operating activities of the segment. Revenue and
Expenses which could not be allocable to a specific segment are being
disclosed separately as un-allocable.
14) As per Accounting Standard-18 "Related Party Disclosures" issued by
The Institute of Chartered Accountants of India, the disclosure of
transactions with the related parties as defined in the Accounting
Standard are given below:
Description of Relationship
Nature of Relationship Name of Related Party
Key Management Personnel Sh. Satish Kumar Agarwal, Chairman &
Managing Director
Sh. Sunil Kumar Agarwal, Whole Time Director
Sh. Saurabh Agarwal, Whole Time Director
Sh. Sachin Agarwal, Whole Time Director
Relatives of Key
Management Smt. Radha Agarwal W/o Sh.Satish Kumar
Agarwal
Smt. Priyanka Agarwal W/o Sh.Saurabh Agarwal
Smt. Shivani Agarwal W/o Sh.Sachin Agarwal
Smt. Shafali Agarwal W/o Late Shailendra
Kumar Agarwal
Sh. Ayush Agarwal S/o Late Shailender Kumar
Agarwal
Ms. Shreya Agarwal D/o Late Shailender Kumar
Agarwal
Smt. Sarita Agarwal W/o Sh.Sunil Kumar
Agarwal
Ms. Ishita Agarwal D/o Sunil Kumar Agarwal
Ms. Somya Agarwal D/o Sunil Kumar Agarwal
Ms. Shatul Agarwal D/o Sunil Kumar Agarwal
Related Companies
and other Kamdhenu Overseas Limited
Kamdhenu Cement Industries Limited
Satish Kumar Agarwal & Sons (HUF)
Sunil Kumar Agarwal & Sons (HUF)
Shailender Kumar Agarwal & Sons (HUF)
15) As per Accounting Standard-28 " Impairment of Assets" issued by
ICAI, there are no indication of overall impairment in assets.
16) The previous years figures have been reworked, regrouped,
rearranged and reclassified wherever necessary. Accordingly, amounts
and other disclosure for the preceding year are included as an integral
part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current
year.
Schedules "1 to 22Ã form an integral part of the Balance Sheet and
Profit & Loss Account and have been duly authenticated as such.
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