Click it and Unblock the Notifications
Notes to Accounts of Navkar Corporation Ltd.
Mar 31, 2025
M. Provisions and Contingent Liabilities
General
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation. When the company expects
some or all of the provisions to be reimbursed, the
expense relating to the provisions are presented
in the Statement of Profit and Loss net of any
reimbursement.
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 increase in the provision due to the passage of
time is recognised as a finance cost.
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrences or non-occurrences
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that an
outflow of resources will be required to settle the
obligation. The does not recognize a contingent
liability but discloses its existence in the financial
statements. Payments in respect of such liabilities,
if any are shown as advances.
N. Accounting for Taxation of Income
(i) Current taxes
Income tax expense is recognized in net profit
in the Statement of Profit and Loss except to
the extent that it relates to items recognized
directly in other comprehensive income or
equity, in which case it is recognized in other
comprehensive income or equity respectively.
Current income tax is recognized at the amount
expected to be paid to or recovered from the
tax authorities, using the tax rates and tax
laws that have been enacted or substantively
enacted by and as applicable to the balance
sheet date. The Company offsets current
tax assets and current tax liabilities, where it
has a legally enforceable right to set off the
recognized amounts and where it intends
either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.
Minimum Alternate Tax (''MAT'') under the
provisions of the Income Tax Act, 1961 is
recognised at current tax rate in the Statement
of Profit and Loss. The credit available under
the Income Tax act, 1961 in respect of MAT
paid is recognised as an asset only when and
to the extent there is convincing evidence that
the individual Company will pay normal income
tax during the period for which the MAT credit
recognised as an asset is reviewed at each
balance sheet date and written down to the
extent the aforesaid convincing evidence no
longer exists.
(ii) Deferred taxes
Deferred income tax assets and liabilities are
recognized for all differences arising between
the tax bases of assets and liabilities and their
carrying amounts in the financial statements.
Deferred income tax assets and liabilities are
measured using tax rates and tax laws that
have been enacted or substantively enacted
by the Balance Sheet date and are expected to
apply to taxable income in the years in which
those temporary differences are expected to
be recovered or settled. The effect of changes
in tax rates on deferred income tax assets and
liabilities is recognized as income or expense
in the period that includes the enactment or
the substantive enactment date. A deferred
income tax asset is recognized to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can be
utilized.
The carrying amount of deferred tax assets
is reviewed at each balance sheet date and
reduced to the extent that it is no longer
probable that the related tax benefit will be
realized.
Deferred tax assets and liabilities are offset
when there is a legally enforceable right to
set off current tax assets against current
tax liabilities and when they relate to income
taxes levied by the same taxation authority
and the Company intends to settle its current
tax assets and liabilities on a net basis.
Deferred tax includes MAT credit mat credit
available paid as per the provisions of the
Income Tax Act and the rules prescribe
thereunder as an asset only to the extent that
there is convincing evidence that the Company
will pay normal income tax during the specified
period, i.e. the period for which MAT credit is
allowed to be carried forward. The Company
reviews the "MAT credit entitlement" asset at
each reporting date and writes down the asset
to the extent the Company does not have
convincing evidence that it will pay normal tax
during the specified period.
O. Fair value measurement
The Company measures financial instruments, such
as, derivatives at fair value at each balance sheet
date.
Fair value is the price that would be received to sell
an asset or paid to settle a liability in an orderly
transaction between market participants at the
measurement date, regardless of whether that price
is directly observable or estimated using another
valuation techniques
In estimating the fair value of an asset or a liability,
the Company takes into account the characteristics
of the asset or liability if market participants would
use when pricing the asset or liability, assuming
that market participants act in their economic best
interest.
All assets and liabilities for which fair values are
measured or disclosed in the financial statements
are categorized within the fair value hierarchy,
described as follows, based on the lowest level input
that is significant to the fair value measurement as
a whole:
⢠Level 1 â Quoted (unadjusted) market prices
in active markets for identical assets or
liabilities
⢠Level 2 â Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable
⢠Level 3 â Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable
For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting date.
The Company''s Management determines the
policies and procedures for both recurring fair value
measurement, such as derivative instruments and
unquoted financial assets measured at fair values,
and for non-recurring measurement, such as assets
held for distribution in the event of discontinued
operations.
This note summarizes accounting policy for fair
value. Other fair value related disclosures are given
in the relevant notes.
P. Foreign Currency-Transactions and Balances
The Company''s functional currency is INR and
accordingly, the financial statements are presented
in INR in lacs.
Transactions in foreign currencies are initially
recorded by the company in their functional currency
spot rates at the date the transaction first qualifies
for recognition.
Monetary assets and liabilities denominated in
foreign currencies are translated into the relevant
functional currency at exchange rates in effect
at the Balance Sheet date. The Gains and losses
arising on account of differences in foreign
exchange rates on settlement/ or translation dates
of monetary assets and liabilities are recognised in
the Statement of Profit and Loss except exchange
differences on foreign currency borrowings relating
to assets under construction for future productive
use. These are included in the cost of the respective
assets when they are regarded as an adjustment to
interest costs on the foreign currency borrowings.
Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured
at fair value are translated at the exchange rate
prevalent at the date when the fair value was
determined. Non-monetary assets and non¬
monetary liabilities denominated in a foreign
currency and measured at historical cost are
translated at the exchange rate prevalent at the date
of the transaction. The related revenue and expense
are recognized using the same exchange rate.
Transaction gains or losses realized upon settlement
of foreign currency transactions are included in
determining net profit for the period in which the
transaction is settled. Revenue, expense and cash¬
flow items denominated in foreign currencies are
translated into the relevant functional currencies
using the exchange rate in effect on the date of
the transaction. Other comprehensive income, net
of taxes, includes translation differences on non¬
monetary financial assets measured at fair value
at the reporting date, such as equities classified as
financial instruments and measured at fair value
through other comprehensive income (FVOCI).
Q. Borrowing Costs
General and specific borrowing costs directly
attributable to the acquisition, construction or
production of qualifying assets, which are assets
that necessarily take a substantial period of time to
get ready for their intended use or sale, are added
to the cost of those assets, until such time as the
assets are substantially ready for their intended use
or sale. All other borrowing costs are recognised in
Statement of Profit and Loss in the period in which
they are incurred.
R. Leases
The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS
116. Identification of a lease requires significant
judgment. The Company uses significant judgment
in assessing the lease term (including anticipated
renewals) and the applicable discount rate. The
discount rate is generally based on the incremental
borrowing rate specific to the lease being
evaluated or for a portfolio of leases with similar
characteristics.
Company as a Lessee
The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right
to control the use of an identified asset for a period
of time in exchange for consideration. To assess
whether a contract conveys the right to control the
use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially
all of the economic benefits from use of the asset
through the period of the lease and (iii) the Company
has the right to direct the use of the asset.
At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of 12 months or less (short-term
leases) and low value leases. For these short-term
and low-value leases, the Company recognizes
the lease payments as an operating expense on a
straight-line basis over the term of the lease.
Certain lease arrangements includes the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that
they will be exercised. The ROU assets are initially
recognized at cost, which comprises the initial
amount of the lease liability adjusted for any lease
payments made at or prior to the commencement
date of the lease plus any initial direct costs less
any lease incentives. They are subsequently
measured at cost less accumulated depreciation
and impairment losses.
ROU assets are depreciated from the
commencement date over the shorter of the lease
term and useful life of the underlying asset. ROU
assets are evaluated for recoverability whenever
events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For
the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not
generate cash flows that are largely independent
of those from other assets. In such cases, the
recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted
using the interest rate implicit in the lease or, if
not readily determinable, using the incremental
borrowing rates in the country of domicile of these
leases. Lease liabilities are remeasured with a
corresponding adjustment to the related ROU asset
if the Company changes its assessment of whether
it will exercise an extension or a termination option.
Lease liability and ROU assets have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is
classified as a finance or operating lease. Whenever
as per the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All
other leases are classified as operating leases.
For operating leases, rental income is recognized
on a straight line basis over the term of the relevant
lease.
S. Employee Benefits
a) Short-term obligations
Short Term Liabilities for wages and salaries,
expected cost of the bonus and ex-gratia
including non-monetary benefits that are
expected to be settled wholly within 12
months after the end of the period in which
the employees render the related service are
recognised in respect of employee''s services
up to the end of the reporting period and are
measured at the undiscounted amounts of
the benefits when the liabilities are settled.
All employee benefits payable wholly within
twelve months of rendering the service
are classified as short-term employee
benefits. These benefits include short term
compensated absences such as paid annual
leave. The undiscounted amount of short¬
term employee benefits expected to be paid
in exchange for the services rendered by
employees is recognised as an expense
during the period. Benefits such as salaries
and wages, etc. and the expected cost of the
bonus/ex-gratia are recognised in the period
in which the employee renders the related
service. The liabilities are presented as current
employee benefit obligations in the balance
sheet.
b) Other Long-term employee benefit
obligations
The liabilities for compensated absences
(annual leave) which are not expected to be
settled wholly within 12 months after the end
of the period in which the employee render
the related service are presented as non¬
current employee benefits obligations. They
are therefore measured at the present value
of expected future payments to be made in
respect of services provided by employees
up to the end of the reporting period using the
Projected Unit Credit method. The benefits are
discounted using the market yields at the end
of the reporting period on government bonds
that have terms approximating to the terms of
the related obligations. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions (i.e. actuarial losses/
gains) are recognised in the Statement of
Profit and Loss.
The obligations are presented as current in the
balance sheet, if the Company does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.
c) Post- employment obligations
The Company operates the following post¬
employment schemes:
(i) Defined benefit plans such as gratuity
(ii) Defined contribution plans such as
provident fund.
Defined benefit plan - Gratuity Obligations
The Company provides for gratuity, a defined
benefit plan (the "Gratuity Plan") covering
eligible employees in accordance with the "The
Payment of Gratuity Act, 1972". The Gratuity
Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation
or termination of employment, of an amount
based on the respective employee''s salary and
the tenure of employment.
The liability or asset recognised in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period
less the fair value of plan assets. The defined
benefit obligation is actuarially determined
using the Projected Unit Credit method.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows with reference
to market yields at the end of the reporting
period on government bonds that have a terms
approximating to the terms of the obligation.
The net interest cost, calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair value
of the plan assets, is recognised as employee
benefit expenses in the Statement of Profit
and Loss.
Remeasurement of gains and losses arising
from experience adjustments and changes
in actuarial assumptions are recognised in
the other comprehensive income in the year
in which they arise and are not subsequently
reclassified to Statement of Profit and Loss.
Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in Statement of Profit and Loss
as past service cost.
Defined Contribution Plan
The Company pays provident fund
contributions to publicly administered
provident funds as per local regulatory
authorities. The Company has no further
obligations once the contributions have
been paid. The contributions are accounted
for as defined contribution plans and the
contributions are recognised as employee
benefit expense as and when they are due.
T. Earnings Per Share
Basic Earnings per Share (EPS) amounts are
calculated by dividing the profit for the reporting
period attributable to equity shareholders by
the weighted average number of equity shares
outstanding during the reporting period.
Diluted earnings per share is the adjusted figures
used in the determination of basic earnings per
share to take into account:
⢠The after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and
⢠Weighted average number of equity shares
that would have been outstanding assuming
the conversion of all the dilutive potential
equity.
U. Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or
less from the date of acquisition, which are subject
to an insignificant risk of changes in values.
V. Insurance claims
Insurance claims are accounted for on the basis of
claims admitted / expected to be admitted and to
the extent that there is no uncertainty in receiving
the claims.
W. Segment Reporting
The Company identifies operating segments based
on the internal reporting provided to the chief
operating decision-maker.
The chief operating decision-maker, who is
responsible for allocating resources and assessing
performance of the operating segments, has been
identified as the Board of Directors that makes
strategic decisions.
The accounting policies adopted for segment
reporting are in line with the accounting policies of
the Company. Segment revenue, segment expenses
have been identified to segments on the basis of
their relationship to the operating activities of the
segment.
The Company operates in a single reporting
segment hence disclosures under the Ind AS 108 -
"Segment Reporting" are not applicable.
X. Equity Instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Incremental costs
directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of
tax, from the proceeds.
Navkar Corporation Limited had agreed to transfer the Business Unit of the ICD situated at Tumb Village in Valsad District of Gujarat
as a going concern on ''slump sale'' for '' 830.70 crores (excluding the consideration for working capital) to ''Adani Forwarding Agents
Pvt Ltd'' in the financial year 2022-23. In order to facilitate successful conclusion of the clause 6.2.1.d(i) (conditioned to transfer
6.5 acres of Land Parcel under Schedule II, Part C of "Description of ICD Land") of this Business Transaction Agreement dated 16th
August 2022, said transfer is under process and the Company has incurred the cost of '' 5.10 Crores on the land parcel during the
year ended March 31, 2024
Further, amount of '' 2.20 Crores related to "working capital" consideration and to the extent not recoverable as per Clause 4.1 of the
BTA has been charged to ''Profit from discontinued operations before tax'' during the year ended March 31,2024.
The aforesaid costs incurred have been reported under ''Profit / (Loss) from discontinued operations before tax'' during the year
ended March 31,2024.
Disclosures as required under Indian Accounting Standard (Ind AS) 105 "Non-Current Assets Held for Sale and Discontinued
Operations", in the financial results for all the periods have been suitably presented and restated in relation to the Slump Sale.
Note 32 : FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS
Capital risk management
For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium and all
other reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to
maximise the value of the share and to reduce the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders,
issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company
includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents and other bank balances.
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
a) recognised and measured at fair value and
b) measured at amortised cost for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into three levels prescribed under the accounting standard.
Note 33 : Financial Risk Management Objectives and Policies
The Company''s principal financial liabilities, other than derivatives, comprises of loans and borrowings, trade and other payables,
and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to
provide guarantees to support its operations directly or indirectly. The Company''s principal financial assets include loans, trade and
other receivables, cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is
exposed to and how the entity manages the risk :
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions and other financial instruments.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 11,271.70 lakhs
and '' 8,972.52 lakhs as of March 31, 2025 and March 31, 2024, respectively.
Trade receivables
Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk
management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on
regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are
regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number
of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to
credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The
Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes
into account available external and internal credit risk factors and the Company''s historical experience for customers.
Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance
with the Company''s policy. Investments of surplus funds are made generally in the fixed deposits. The investment limits are set to
minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31, 2024
is the carrying amounts as stated in balance sheet .The Company''s maximum exposure relating to financial derivative instruments
is noted in the liquidity table below.
Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price.
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and by having access to funding through
an adequate amount of committed credit lines. The Company''s objective is to maintain a balance between continuity of funding and
flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety
of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to
meet its current requirements.
Market Risk
Market risk comprises two types of risk : interest rate risk and currency risk. Financial instruments affected by market risk include
loans and borrowings, deposits and derivative financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The exposure of the Company to interest rate changes at the end of the reporting period are as under:
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Group''s exposure to the risk of changes in foreign exchange rates relates primarily to the borrowings converted
in the foreign currency and purchase of stores and spares from out of India. The Company manages its foreign currency risk by
hedging repayment of principals that are expected to be paid within the period of loan. When a derivative is entered into for the
purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The
Company hedges its exposure to fluctuations on the translation into ? of its foreign payables in foreign currencies and by using
foreign currency option and forward contracts.
Note 35 : Segment Information
Information about Primary Business Segment
The Company is primarily engaged in one business segment, namely related to Container Freight Station (CFS) and Inland Container
Depot (ICD) Operations, which are primarily assessed as a single reportable operating segment as determined by the Chief Operating
Decision Maker (CODM) ,in accordance with Ind As 108 "Operating Segment".
Information about Secondary Geographical Segment
The Company is engaged in providing services to customers located in India, consequently the Company does not have separate
reportable geographical segment for the year ended March 31, 2025.
Information about Customers contributing more than 10% of revenue
One of our customer individually accounted for more than 10% of the revenues for the year ended March 31, 2025 (One Customer
- March 31, 2024)
Note 36 : Employee Benefits
The Company has classified the various benefits provided to employees as under:
I. Defined Contribution Plans
a. Employers'' Contribution to Provident Fund and Employee''s Pension Scheme
b. Employers'' Contribution to Employee''s State Insurance
During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:
* Includes Gratuity & Leave Encashment
Note 39 : Expenditure on Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of
its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care
and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed
by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the
Companies Act, 2013.
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company has not been declared wilfull defaulter by any bank or financial institution or government or any government
authority.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) The Company has not any such transaction which is not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period,
the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material
size or nature are only disclosed. No significant adjusting event occurred between the balance sheet date and the date of approval
of these financial statements by the Board of Directors of the company requiring adjustment or disclosure.
Note 42 : Previous Years'' Figures
The company has re-grouped and/or re-arranged figures for previous year, wherever required to confirm with current year''s
classification.
As per our report of the even date
For Uttam Abuwala Ghosh & Associates For and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration Number: 111184W
Ajaysingh Chauhan Rinkesh Roy Amit Garg
Partner Chairman Whole Time Director
Membership Number: 137918 DIN :07404080 DIN :00350413
UDIN : 25137918BMLBTF1065
Arun Sharma Sabyasachi Deepa Gehani
Place : Navi Mumbai Chief Executive Officer Mukherjee Company Secretary
Date : April 25,2025 Chief Financial Officer
Mar 31, 2024
M. Provisions and Contingent Liabilities General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the company expects some or all of the provisions to be reimbursed, the expense relating to the provisions are presented in the Statement of Profit and Loss net of any reimbursement.
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 increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrences or non-occurrences of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. This does not recognize a contingent liability but discloses its existence in the financial statements. Payments in respect of such liabilities, if any are shown as advances.
N. Accounting for Taxation of Income
(i) Current taxes
Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in other comprehensive income or equity respectively. Current income tax is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by and as applicable to the balance sheet date. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Minimum Alternate Tax (âMATâ) under the provisions of the Income Tax Act, 1961 is recognised at current tax rate in the Statement of Profit and Loss. The credit available under the Income Tax act, 1961 in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the individual Company will pay normal income tax during the period for which the MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.
(ii) Deferred taxes
Deferred income tax assets and liabilities are recognized for all differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Deferred tax includes MAT credit mat credit available paid as per the provisions of the Income Tax Act and the rules prescribe thereunder as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e. the period for which MAT credit is allowed to be carried forward. The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.
O. Fair value measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation techniques
In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities
⢠Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
⢠Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting date.
The Companyâs Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair values, and for non-recurring measurement, such as assets held for distribution in the event of discontinued operations.
This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
P. Foreign Currency-Transactions and Balances
The Companyâs functional currency is INR and accordingly, the financial statements are presented in INR in lakhs.
Transactions in foreign currencies are initially recorded by the company in their functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The Gains and losses arising on account of differences in foreign exchange rates on settlement/ or translation dates of monetary assets and liabilities are recognised in the Statement of Profit and Loss except exchange differences on foreign currency borrowings relating to assets under construction for future productive use. These are included in the cost of the respective assets when they are regarded as an adjustment to interest costs on the foreign currency borrowings.
Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. Other comprehensive income, net of taxes, includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI).
Q. Borrowing Costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.
R. Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgment in assessing the lease term (including anticipated renewals) and the applicable discount rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
Company as a Lessee
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related rOu asset if the Company changes its assessment of whether it will exercise an extension or a termination option. Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever as per the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
S. Employee Benefits
a) Short-term obligations
Short Term Liabilities for wages and salaries, expected cost of the bonus and ex-gratia including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeeâs services up to the end of the reporting period and are measured at the undiscounted amounts of the benefits when the liabilities are settled. All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. These benefits include short term compensated absences such as paid annual leave. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognised in the period in which the employee renders the related service. The liabilities are presented as current employee benefit obligations in the balance sheet.
b) Other Long-term employee benefit obligations
The liabilities for compensated absences (annual leave) which are not expected to be settled wholly within 12 months after the end of the period in which the employee render the related service are presented as noncurrent employee benefits obligations. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligations. Re-measurements as a result of experience adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognised in the Statement of Profit and Loss.
The obligations are presented as current in the balance sheet, if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
c) Post- employment obligations
The Company operates the following post-employment schemes:
(i) Defined benefit plans such as gratuity
(ii) Defined contribution plans such as provident fund.
Defined benefit plan - Gratuity Obligations
The Company provides for gratuity, a defined benefit plan (the âGratuity Planâ) covering eligible employees in accordance with the âThe Payment of Gratuity Act, 1972â. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employeeâs salary and the tenure of employment.
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is actuarially determined using the Projected Unit Credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows with reference to market yields at the end of the reporting period on government bonds that have a terms approximating to the terms of the obligation.
The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets, is recognised as employee benefit expenses in the Statement of Profit and Loss.
Remeasurement of gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the other comprehensive income in the year in which they arise and are not subsequently reclassified to Statement of Profit and Loss.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Statement of Profit and Loss as past service cost.
Defined Contribution Plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulatory authorities. The Company has no further obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense as and when they are due.
T. Earnings Per Share
Basic Earnings per Share (EPS) amounts are calculated by dividing the profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the reporting period.
Diluted earnings per share is the adjusted figures used in the determination of basic earnings per share to take into account:
⢠The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
⢠Weighted average number of equity shares that would have been outstanding assuming the conversion of all the dilutive potential equity.
U. Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less from the date of acquisition, which are subject to an insignificant risk of changes in values.
V. Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
W. Segment Reporting
The Company identifies operating segments based on the internal reporting provided to the chief operating decisionmaker.
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.
The Company operates in a single reporting segment and does not meet the quantitative thresholds laid down under the Ind AS 108 - âSegment Reportingâ for reportable segments, it has not been considered for segment reporting.
X. Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Note 36 : Discontinued Operation
The Board at its meeting held on the 16th of August, 2022 considered and approved the transfer of Business Undertaking comprising of the ICD operation Situated at Tumb Village in Gujarat as a going concern on an ââas is where is basisââ, as per the Business Transfer Agreement. The said transfer was done initially by way of Slump Sale for a Consideration of '' 835 Crores (excluding the consideration for working capital) to âAdani Forwarding Agents Pvt Ltdâ. However, after subsequent negotiations the Consideration amount was revised to '' 830.70 Crores (excluding the consideration for working capital) in the last quarter of FY 2022-2023.The Company has recognised a Slump Sale Loss amounting to '' 7.30 Crores in the year 2023-2024. Accordingly, as per Ind AS-105 on Non Current Assets Held for Sale and Discontinued Operations, the disclosures have been made in these financial statements for all the periods presented.
Reference to the above during the year ended on 31st March, 2024, to facilitate successful conclusion of the clause 6.2.1.d(i) (conditioned to transfer 6.5 acres of Land Parcel under Schedule II, Part C of âDescription of ICD Landâ) of this Business Transaction Agreement dated 16th August 2022, said transfer is under process and the Company has incurred the cost of '' 5.10
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade receivables
Customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer credit risk management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 11.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Companyâs historical experience for customers.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. Investments of surplus funds are made generally in the fixed deposits. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31, 2023 is the carrying amounts as stated in balance sheet .The Companyâs maximum exposure relating to financial derivative instruments is noted in the liquidity table below.
Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.
The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2024 and March 31, 2023:
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Groupâs exposure to the risk of changes in foreign exchange rates relates primarily to the borrowings converted in the foreign currency and purchase of stores and spares from out of the India. The Company manages its foreign currency risk by hedging repayment of principals that are expected to be paid within the period of loan. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the translation into '' of its foreign payables in foreign currencies and by using foreign currency option and forward contracts.
Note 46 : Segment Information
Information about Primary Business Segment
The Chief Executive Officer (CEO) of compay act as Chief Operating Decision Maker (CODM) of the company in accordance with Operating Segment (Ind As 108), for the purpose of assesing the financial performance and position of the company, and make strategic decisions. The Companyâs business activities are mainly related to Container Freight Station (CFS) and Inland Container Depot (ICD) Operations, which are primarily assessed as a single reportable operating segment in accordance with Ind As 108 by the CODM for the year ended March 31,2024.
Information about Secondary Geographical Segment
The Company is engaged in providing services to customers located in India, consequently the Company does not have separate reportable geographical segment for the year ended March 31,2024.
Information about Customers contributing more than 10% of revenue
One of our customer individually accounted for more than 10% of the revenues for the year ended March 31,2024 ( March 31,2023: Nil Customer )
Note 51 : Other Statutory Information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company has not been declared wilfull defaulter by any bank or financial institution or government or any government authority.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) The Company has not any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
Note 52 : Events occurring after balance sheet date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed. No significant adjusting event occurred between the balance sheet date and the date of approval of these financial statements by the Board of Directors of the company requiring adjustment or disclosure.
Note 53 : Previous Yearsâ Figures
The company has re-grouped and/or re-arranged figures for previous year, wherever required to confirm with current yearâs classification.
Signature to Notes 1 to 53
As per our report of even date
For Uttam Abuwala Ghosh & Associates For and on behalf of the Board of Directors of Navkar Corporation Limited
Chartered Accountants CIN : L63000MH2008PLC187146
ICAI Firm Registration Number: 111184W
Ajaysingh Chauhan Shantilal J Mehta Nemichand J Mehta
Partner Chairman and Managing Director Whole-time Director
Membership Number: 137918 DIN : 00134162 DIN : 01131811
Arun Sharma Prasoon Singh
Chief Executive Officer Chief Financial Officer
Place : Navi Mumbai Place : Navi Mumbai Deepa Gehani
Date : April 30 , 2024 Date : April 30 , 2024 Company Secretary
UDIN : 24137918BKGDOY3260
Mar 31, 2023
M. Provisions and Contingent Liabilities General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the company expects some or all of the provisions to be reimbursed, the expense relating to the provisions are presented in the Statement of Profit and Loss net of any reimbursement.
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 increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrences or non-occurrences of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The does not recognize a contingent liability but discloses its existence in the financial statements. Payments in respect of such liabilities, if any are shown as advances.
N. Accounting for Taxation of Income
(i) Current taxes
Income tax expense is recognized in net profit in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in other comprehensive income or equity respectively. Current income tax is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by and as applicable to the balance sheet date. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Minimum Alternate Tax (âMATâ) under the provisions of the Income Tax Act, 1961 is recognised at current tax rate in the Statement of Profit and Loss. The credit available under the Income Tax act, 1961 in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the individual Company will pay normal income tax during the period for which the MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.
(ii) Deferred taxes
Deferred income tax assets and liabilities are recognized for all differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Deferred tax includes MAT credit mat credit available paid as per the provisions of the Income Tax Act and the rules prescribe thereunder as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e. the period for which MAT credit is allowed to be carried forward. The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.
O. Fair value measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation techniques
In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities
⢠Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
⢠Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting date.
The Companyâs Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair values, and for non-recurring measurement, such as assets held for distribution in the event of discontinued operations.
This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
P. Foreign Currency-Transactions and Balances
The Companyâs functional currency is INR and accordingly, the financial statements are presented in INR in lacs.
Transactions in foreign currencies are initially recorded by the company in their functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated into the relevant functional currency at exchange rates in effect at the Balance Sheet date. The Gains and losses arising on account of differences in foreign exchange rates on settlement/ or translation dates of monetary assets and liabilities are recognised in the Statement of Profit and Loss except exchange differences on foreign currency borrowings relating to assets under construction for
future productive use. These are included in the cost of the respective assets when they are regarded as an adjustment to interest costs on the foreign currency borrowings.
Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and nonmonetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. The related revenue and expense are recognized using the same exchange rate. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled. Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional currencies using the exchange rate in effect on the date of the transaction. Other comprehensive income, net of taxes, includes translation differences on non-monetary financial assets measured at fair value at the reporting date, such as equities classified as financial instruments and measured at fair value through other comprehensive income (FVOCI).
Q. Borrowing Costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.
R. Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgment in assessing the lease term (including anticipated renewals) and the applicable discount rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
Company as a Lessee
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these short-term and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination
option. Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever as per the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
S. Employee Benefits
a) Short-term obligations
Short Term Liabilities for wages and salaries, expected cost of the bonus and ex-gratia including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeeâs services up to the end of the reporting period and are measured at the undiscounted amounts of the benefits when the liabilities are settled. All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. These benefits include short term compensated absences such as paid annual leave. The undiscounted amount of shortterm employee benefits expected to be paid in exchange for the services rendered by employees is recognised as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ex-gratia are recognised in the period in which the employee renders the related service. The liabilities are presented as current employee benefit obligations in the balance sheet.
b) Other Long-term employee benefit obligations
The liabilities for compensated absences (annual leave) which are not expected to be settled wholly within 12 months after the end of the period in which the employee render the related service are presented as non-current employee benefits obligations. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the Projected Unit Credit method. The benefits are discounted using the market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligations. Re-measurements as a result of experience adjustments and changes in actuarial assumptions (i.e. actuarial losses/ gains) are recognised in the Statement of Profit and Loss.
The obligations are presented as current in the balance sheet, if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
c) Post- employment obligations
The Company operates the following post-employment schemes:
(i) Defined benefit plans such as gratuity
(ii) Defined contribution plans such as provident fund.
Defined benefit plan - Gratuity Obligations
The Company provides for gratuity, a defined benefit plan (the âGratuity Planâ) covering eligible employees in accordance with the âThe Payment of Gratuity Act, 1972â. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employeeâs salary and the tenure of employment.
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is actuarially determined using the Projected Unit Credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows with reference to market yields at the end of the reporting period on government bonds that have a terms approximating to the terms of the obligation.
The net interest cost, calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets, is recognised as employee benefit expenses in the Statement of Profit and Loss.
Remeasurement of gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the other comprehensive income in the year in which they arise and are not subsequently reclassified to Statement of Profit and Loss.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in Statement of Profit and Loss as past service cost.
Defined Contribution Plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulatory authorities. The Company has no further obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense as and when they are due.
T. Earnings Per Share
Basic Earnings per Share (EPS) amounts are calculated by dividing the profit for the reporting period attributable to equity shareholders by the weighted average number of equity shares outstanding during the reporting period.
Diluted earnings per share is the adjusted figures used in the determination of basic earnings per share to take into account:
⢠The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
⢠Weighted average number of equity shares that would have been outstanding assuming the conversion of all the dilutive potential equity.
U. Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less from the date of acquisition, which are subject to an insignificant risk of changes in values.
V. Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
W. Segment Reporting
The Company identifies operating segments based on the internal reporting provided to the chief operating decisionmaker.
The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.
The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.
The Company operates in a single reporting segment and does not meet the quantitative thresholds laid down under the Ind AS 108 - âSegment Reportingâ for reportable segments, it has not been considered for segment reporting.
X. Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
b) For Previous Period :
Note:
(a) The facility being provided by Kotak Mahindra Bank amounting to '' 1,568.47 lakhs as on March 31, 2022 was secured against the following charge over various assets of the Company :
1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.
2. Collateral :
All that piece and parcel of land along with the property bearing N.A. land bearing block No. 38/1/Part 28 Paikee 1 bearing new block No.971 admeasuring about 06H, 07 Are,09 sq. mtrs., situated at village Tumb, Tal. Umbergaon & Dist.Valsad, Gujarat together with the structure erected/constructed thereon and any additional land or structures or as may be erected/constructed there upon any time from/after the date of respective mortgages and all additions there to and all fixtures and furniture''s and plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future and bounded as below
Towards East : Land bearing block/survey No. 44/1.
Towards West: Internal 12 mtrs. vide road.
Towards North : Internal 12 mtrs. vide road.
Towards South : Internal 12 mtrs. vide road.
Exclusive charge on the below mentioned assets :
1) Kalmar bearing registration number MH 46 B1411 (Model no. DRF 450 65S5)
2) Kalmar bearing registration number NL 02-L-0425 (Model no. DRF 450 65S5)
3) Kalmar bearing registration number NL 02-L-0424 (Model no. DRF 450 65S5)
4) Kalmar bearing registration number MH 46 B1546 (Model no. DRF 450 65S5)
5) Kalmar bearing registration number MH 46 B1548 (Model no. DRF 450 65S5)
6) Kalmar bearing registration number MH 46 B1459 (Model no. DRF 450 65S5)
3. An undated cheque issued in the favour of bank of facility amount.
4. Personal Guarantee of Mr. Shantilal J Mehta.
(b) The facility being provided by State Bank of India amounting to ''2071.37 lakhs was is secured against the following charge created over various assets of the company :
1. Primary: Hypothecation & first charge on entire current assets of the company, present and future, including documents of titles to goods and other assets such as outstanding monies, receivables, claims, bills, invoices, documents, contracts engagements, securities, investments and rights, hypothecation of stock & receivables.
2. Collateral Security:
First charge on all that piece and parcel of land with warehousing building at Container Freight Station, Yard I and II located at survey No. 137, Hissa No.1A1 admeasuring about 4-19-25 HRP i.e. equivalent to 41925 sq. mtrs. (currently known as Survey No. 138/1 as per revenue records of KGP admeasuring area 4-19-25 HRP out of total area 13-23-75 HRP), lying, being and situated at village Ajiwali, Taluka Panvel, District Raigad within the limit of Raigad Zilla Parishad and Panchayat Samittee Panvel, District Raigad and in the limits of M.M.R.D.A., in the registration and in the limits of Sub-Registrar of Assurances Panvel together with building/structures thereon and all plant and machinery attached to earth or permanently fastened to anything attached to earth, both present and future as follows :
Survey Nos 137/1A1, Area in H-R-P 4-19-25, Area in Sq.mts 41925.(currently known as Survey No.138/1 as per Revenue Records of KGP admeasuring area 4-19-25 HRP out of total area 13-23-75 HRP)
-Personal Guarantee of Mr. Shantilal J Mehta, Mr. Nemichand J Mehta, Mr. Kunthukumar S Mehta, Mr. Jayesh N Mehta, Mrs. Shailaja Nemichand Mehta, Mrs. Kamal Bai Shantilal Mehta, Mrs. Seema Kunthukumar Mehta and Mrs. Pratiksha J Mehta.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade receivables
Customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer credit risk management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 11.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company''s historical experience for customers.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. Investments of surplus funds are made generally in the fixed deposits. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as stated in balance sheet .The Companyâs maximum exposure relating to financial derivative instruments is noted in the liquidity table below.
Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.
Note 53 :Impact of COVID 19 on Business
The Company''s management has made an assessment of impact on business and financial risks on account of COVID-19. The impact of the Covid-19 pandemic is not significant presently or likely to be significant on future business operation. The Company will continue to closely monitor any material changes to the economic conditions.
Note 54 : Other Statutory Information
i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
iv) The Company has not been declared wilfull defaulter by any bank or financial institution or government or any government authority.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
vii) The Company has not any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
Note 55 : Events occurring after balance sheet date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed. No significant adjusting event occurred between the balance sheet date and the date of approval of these financial statements by the Board of Directors of the company requiring adjustment or disclosure.
Note 56 : Previous Years'' Figures
The company has re-grouped and/or re-arranged figures for previous year, wherever required to confirm with current year''s classification.
Signature to Notes 1 to 56
As per our report of even date
For Uttam Abuwala Ghosh & Associates For and on behalf of the Board of Directors of Navkar Corporation Limited
Chartered Accountants CIN : L63000MH2008PLC187146
ICAI Firm Registration Number: 111184W
Ajaysingh Chauhan Shantilal J Mehta Nemichand J Mehta
Partner Chairman and Managing Director Whole Time Director
Membership Number: 137918 DIN : 00134162 DIN : 01131811
Arun Sharma Anish S Maheshwari
Chief Executive Officer Chief Financial Officer
Place : Navi Mumbai Place : Navi Mumbai Deepa Gehani
Date : May 29, 2023 Date : May 29, 2023 Company Secretary
UDIN : 23137918BGYVXS3849
Mar 31, 2018
Note 1 : Company Overview
Navkar Corporation Limited (âthe Companyâ) is a public limited Company domiciled in India having its registered office at 205-206, J. K. Chambers, Sector-17, Vashi, Navi Mumbai, - 400 705. The Company was incorporated on September 29, 2008 under the provision of the Companies Act, 1956. The Company is engaged in providing Container Freight Station (CFS) facilities and Inland Container Depot (ICD) and is focused on capitalizing the available opportunities in the logistics space in western India. Our CFS is largely dependent on EXIM container traffic in and out of Indian port - JNPT. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 9, 2015.
Notes:
a) The Investment Property consist of Land and Land Developments.
b) Gross carrying amount of Investment Property includes certain land and development having gross block value of Rs. Nil (March 31, 2017: Rs. 278.48 lakhs) situated at different locations, which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.
c) The Board of Directors has decided in the meeting held on November 25, 2016 for development of Residential Township on approximately 45 acres of land of the Company situated at Narpoli and Dahivali in Panvel, District Raigarh, Maharashtra, located in close proximity to the other residential projects.
d) Amounts are recognised in the statement of profit and loss for the above investment properties is Rs. Nil during the financial year ended March 31, 2018 and March 31, 2017.
f) Description of valuation techniques used and key inputs to valuation on investment properties
As at March 31, 2018 and March 31, 2017, the fair values of the properties are Rs. 11,779.06 lakhs and Rs. 10,968.40 lakhs respectively. These valuations are based on valuations performed by Ramachandra & Associates, an accredited independent valuer. Ramachandra & Associates is a specialist in valuing these types of investment properties.
(a) Terms / rights attached to:
Equity Shares
The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their share holding.
(d) Pursuant to approval of the shareholders of the Company accorded in the Annual General Meeting of the Company held on August 24, 2017, the Board of Directors, on November 01, 2017, has issued and allotted 79,11,158 Equity Shares of Rs. 10 each of the Company at an issue price of Rs. 183/- per Equity Share (including premium of Rs. 173/- per Equity Share) to Qualified Institutional Buyers pursuant to the Qualified Institutions Placement under Chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, Section 42 of the Companies Act, 2013 and other applicable provisions and rules made thereunder.
The gross proceeds of QIP issue Rs. 14,477.42 lakhs has been utilised for the objects stated in the Placement Document dated October 30, 2017 and there has been no deviation in the use of QIP proceeds from the objects stated therein.
(e) Shares allotted as fully paid up equity shares as bonus issue (during 5 years immediately preceding March 31, 2018):
91,420,665 Equity Shares of Rs. 10 each fully paid up were issued as bonus shares on March 3, 2015 in the ratio of five fully paid up equity share for every equity share held on March 2, 2015, being the record date through capitalisation of surplus from the Statement of Profit and Loss.
Note:
The Company has issued redeemable non-convertible Preference Share. Accordingly, the Companies (Share Capital and Debentures) Rules, 2014 (as amended), require the Company to create CRR out of profits of the Company available for payment of dividend. CRR is required to be created for an amount which is equal to 100% of the amount to be redeemed of Preference Shares issued at the time of maturity. The CRR is required to be created over the life of Preference Share, the Company has created CRR out of retained earnings for an proportionate amount (March 31, 2018: 44.8% and March 31, 2017: 36.46% ).
(c) Nature of security and terms of repayment for Preference Share :
0% Cumulative Redeemable Preference Shares: The Company has one class of preference shares having a par value of Rs. 10 per share. They have been issued for a period of 12 years and are redeemable thereafter. These shares do not carry any dividend. In the event of liquidation, the preference shareholders are eligible to receive repayment of the capital. They do not have any rights to participate in the profits or assets of the Company. The effective interest rate used for these shares are 12.00% p.a.
6% Cumulative Redeemable Preference Shares
The Company has one class of preference shares having a par value of Rs. 100 per share and the same would be redeemed at the end of 10 years from the date of allotment. In the event of liquidation, the preference shareholders are eligible to receive repayment of the capital along with the dividend. They do not have any rights to participate in the profits or assets of the Company. Also the Company has call option to redeem the preference shares at any time after the end of one year from the date of allotment. The effective interest rate used for these shares are 12.00% p.a.
Shares allotted as fully paid up 6% Cumulative Redeemable Preference shares pursuant to the âScheme of Amalgamation (during 5 years immediately preceding March 31, 2018):
99,790 6% Cumulative Redeemable Preference shares of Rs. 100 each fully paid up were issued to the erstwhile shareholders of Navkar Terminals Limited pursuant to the âScheme of Amalgamationâ between the Company, Navkar Terminals Limited and their respective shareholders without payment being received in cash.
Note:
(a) These facilities are secured against the following charge on various assets of the Company :
1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.
2. Collateral :
Office number 1303, 1304 on 13th floor of the building known as Goodwill Infinity on the land bearing plot no. E/3A Sector
12, Kharghar, Navi Mumbai.
Exclusive charge on the below mentioned assets :
1) Kalmar bearing registration number NL 02-L-1411 (Model no. DRF 450 65S5)
2) Kalmar bearing registration number NL 02-L-0425 (Model no. DRF 450 65S5)
3) Kalmar bearing registration number NL 02-L-0424 (Model no. DRF 450 65S5)
4) Kalmar bearing registration number MH 46 B1546 (Model no. DRF 450 65S5)
5) Kalmar bearing registration number MH 46 B1548 (Model no. DRF 450 65S5)
6) kalmar bearing registration number MH 46 B1549 (Model no. DRF 450 65S5)
3. A undated cheque issued in the favour of bank of facility amount.
4. Personal Guarantees of Mr. Shantilal J Mehta.
(b) Working Capital Loan from HDFC Bank amounting to Rs. Nil (March 31, 2017 1,013.93 lakhs) repayable on demand.
At March 31, 2018, the Company had available Rs. Nil. (March 31, 2017: Rs. 524.50 lakhs) of undrawn committed borrowing facilities.
Note:
The Company has taken appropriate steps for refund of share application money received in Initial Public Offering in case of unallotted/ partially allotted applications. The balance is kept in a separate bank account âShare Application Money Refund Accountâ and the Company can not freely use this amount.
Note: The above other financial liabilities includes Foreign Currency Forward and Options Contracts. Only observable inputs directly and indirectly are available to recognise the same at fair value, accordingly fair value measurement is done considering the Level -2 of Fair Value Hierarchy as per the Ind-AS 113.
Note 2 : Financial Risk Management Objectives and Policies
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations directly or indirectly. The Companyâs principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade receivables
Customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer credit risk management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Companyâs historical experience for customers.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. Investments of surplus funds are made generally in the fixed deposits. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as stated in balance sheet .The Companyâs maximum exposure relating to financial derivative instruments is noted in the liquidity table below.
Liquidity Risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.
The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2018, March 31, 2017:
Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Companyâs policy is to keep balance between its borrowings at fixed rates of interest. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Groupâs exposure to the risk of changes in foreign exchange rates relates primarily to the borrowings converted in the foreign currency and purchase of stores and spares from out of the India. The Company manages its foreign currency risk by hedging repayment of principals that are expected to be paid within the period of loan. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the translation into â of its foreign payables in foreign currencies and by using foreign currency option and forward contracts.
Foreign Currency Sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Note 3 : Capital Management
For the purpose of the Companyâs capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the value of the share and to reduce the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.
Note 4 : Segment Information:
Information about Primary Business Segment
The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company is engaged in CFS Operations and related activities during the year, consequently the Company does not have separate reportable business segment for the year ended March 31, 2018.
Information about Secondary Geographical Segment
The Company is engaged in providing services to customers located in India, consequently the Company does not have separate reportable geographical segment for the year ended March 31, 2018.
Note 5: Merger of Subsidiary Company:
Board of Directors in their meeting held on March 30, 2017 approved the Scheme of Amalgamation of Navkar Terminals Limited (âNTLâ) with the Company (âthe Schemeâ). The Company holds 50,000 equity shares fully paid up in NTL, representing 100% of the total paid up equity share capital of NTL, which shall stand extinguished upon the Scheme becoming effective. The Scheme has been approved by the shareholders of both the companies and other regulatory authorities as prescribed in the law. The scheme was approved by the NCLT by its order dated March 28, 2018.
Pursuant to the Scheme, all assets and liabilities of the Transferor Company has been transferred to and vested in the Transferee Company on the appointed date (i.e. March 1, 2016) at their book values. The Transferee Company has issued one fully paid up 6% Cumulative Redeemable Preference Shares of Rs. 100 each for every Preference Shares of Rs. 100 each held in the Transferor Company pursuant to the Scheme. As per the NCLT order, this amalgamation is in nature of merger and the accounting treatment is to be given using the âPooling of Interest Method of Accountingâ. The details of assets and liabilities transferred by the Transferor Company as a result of amalgamation are as under:
Note 6 : Employee Benefits:
The Company has classified the various benefits provided to employees as under:
I. Defined Contribution Plans
a. Employersâ Contribution to Provident Fund and Employeeâs Pension Scheme
b. Employersâ Contribution to Employeeâs State Insurance
During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:
III. Other Employee Benefit
The liability for leave entitlement as at March 31, 2018 is Rs. 67.13 lakhs (March 31, 2017: Rs. 51.57 lakhs) disclosed under Long Term Provisions (Refer Note 19) and Short Term Provision (Refer Note 25).
IV. Sensitivity Analysis
The below sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
a. Gratuity
A quantitative sensitivity analysis for significant assumption as at March 31, 2018 and March 31, 2017 are as shown below:
Note 7 : Expenditure on Corporate Social Responsibility:
As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the Companies Act, 2013.
(a) Gross amount required to be spent by the Company during the year Rs. 216.11 Lakhs (previous year Rs. 205.38 Lakhs)
(b) Amount spent during the year on:
Note 8 : Qualified Institutional Placement:
Pursuant to approval of the shareholders of the Company accorded in the Annual General Meeting of the Company held on August 24, 2017, the Board of Directors, on November 01, 2017, has issued and allotted 79,11,158 Equity Shares of Rs. 10 each of the Company at an issue price of Rs. 183/- per Equity Share (including premium of Rs. 173/- per Equity Share) to Qualified Institutional Buyers pursuant to the Qualified Institutions Placement under Chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, Section 42 of the Companies Act, 2013 and other applicable provisions and rules made thereunder.
The gross proceeds of QIP issue Rs. 14,477.42 lakhs has been utilised for the objects stated in the Placement Document dated October 30, 2017 and there has been no deviation in the use of QIP proceeds from the objects stated therein.
Note 9 : Previous Yearsâ Figures:
The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The Company has adopted Ind-AS on April 1, 2016 with the transition date as April 1, 2015, and adoption was carried out in accordance with Ind-AS 101 - First Time Adoption of Indian Accounting Standards. The previous periodâs figures have been regrouped or rearranged wherever necessary.
The accompanying notes are an integral part of the these financial statements
Mar 31, 2017
Note 1 : Company Overview
Navkar Corporation Limited (âthe Companyâ) is a public limited Company domiciled in India having its registered office at 205-206, J. K. Chambers, Sector-17, Vashi, Navi Mumbai, - 400 705. The Company was incorporated on September 29, 2008 under the provision of the Companies Act, 1956. The Company is engaged in providing Container Freight Station (CFS) facilities and is focused on capitalizing the available opportunities in the logistics space in western India. Our CFS is largely dependent on EXIM container traffic in and out of Indian port - JNPT. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 9, 2015.
Note 2 : First Time adoption of ind-as
For all periods up to March 31, 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) Indian GAAP (âIGAAPâ). These standalone financial statements of Navkar Corporation Limited for the year ended March 31, 2017 have been prepared in accordance with Ind-AS. This is the first set of Financial Statements in accordance with Ind-AS. For the purpose of transition from the IGAAP to Ind-AS, the Company has followed guidance provided in Ind-AS 101 - First Time Adoption of Indian Accounting Standards, w.e.f. April 01, 2015 as the transition date.
The transition to Ind-AS has resulted in changes in the presentation of the financial statements, disclosures in the notes, accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the standalone financial statements for the year ended on March 31, 2017 as well as for March 31, 2016 for comparative information. In preparing these financial statements, opening balance sheet was prepared as at 1 April 2015. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended March 31, 2016.
Exemptions on first time adoption of Ind-AS availed in accordance with Ind-AS 101, have been described below: exemptions availed on first time adoption of ind-as 101
Ind-AS 101 allows certain optional exemptions and mandatory exemptions on first time adoption of Ind-AS from the retrospective application of certain provisions of Ind-AS. The Company has accordingly applied the following exemptions:
Ind-as optional exemptions:
(i) Property, plant and equipment and intangible assets
Ind-AS 101 permits, a first time adopter to elect to continue with the carrying values for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind-AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind-AS 38 Intangible Assets and Investment properties covered by Ind-AS 40 Investment Properties.
Accordingly, the Company has elected to measure all of its property, plant and equipment, Investment properties and intangible assets at their previous GAAP carrying value.
(ii) Measurement of investment in subsidiaries, associates and joint ventures
Ind-AS allows entity that subsequently measures an investment in a subsidiary, joint ventures or associate at cost, may measure such investment at cost (determined in accordance with Ind-AS 27) or deemed cost (fair value or previous GAAP carrying amount) in its separate opening Ind-AS balance sheet.
For investments in equity instruments of subsidiary, the Company has elected to apply separate exemption available under Ind-AS 101 by measuring at their previous GAAP carrying amount, which is the deemed cost at the date of transition to Ind-AS.
Ind-as mandatory exceptions:
(i) Estimates
An entityâs estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind-AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind-AS at the date of transition as these were not required under previous GAAP:
- Impairment of financial assets based on expected credit loss model.
(ii) Classification and measurement of financial assets
Ind-AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.
Accordingly, the Company has determined the classification of financial assets based on the facts and circumstances that exist on the date of transition.
Note 3 : reconciliations between previous GAAP and Ind-AS
The following reconciliations provides the effect of transition to Ind-AS from IGAAP in accordance with Ind-AS 101:
A. Equity as at beginning of April 1, 2015
B. Equity as at March 31, 2016
C. Net profit for the year ended March 31, 2016
D. Cash flows for the year ended March 31, 2016
Notes :
1. Preference share
The Company has issues 0% Cumulative Redeemable Preference Shares for 12 years. Under Indian GAAP, the preference shares were classified as share capital/ equity. Under Ind-AS, preference shares are classified as borrowings based on the nature and terms of the contract. Interest on liability is recognised using the effective interest method. Thus the preference share capital is reduced by Rs.2,300 lakhs including securities premium with a corresponding increase in borrowings as liability. Accordingly, borrowings have been net increased by Rs.736.97 lakhs with a corresponding net decrease in other equity as at April 1, 2015.
2. Secured Loan
Under Indian GAAP, transaction costs incurred in connection with borrowings are charged to profit or loss/ capitalised as and when incurred. Under Ind-AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss/ capitalised using the effective interest method. Accordingly, borrowings have been reduced by Rs.294.88 lakhs with a corresponding increase in retained earnings of Rs.72.97 lakhs, deferred tax liability of Rs.35.04 lakhs and decrease in property, plant and equipments of Rs.186.87 lakhs as at April 1, 2015.
3. Unsecured Loan
Under Indian GAAP, Unsecured Loans are measured at loan amount. Whereas Under Ind-AS, Unsecured Loans taken by the Company are recognised in the books at fair value. Subsequently the unsecured loans are measured at amortised cost by using effective interest method. Accordingly, borrowings have been reduced by Rs.5,930.88 lakhs with a corresponding increase in other equity as at April 1, 2015.
4. Trade receivables
Under Indian GAAP, the Company has created provision for impairment of trade receivables consists only in respect of specific amount for incurred losses. Under Ind-AS, impairment allowance has been determined based on Expected Credit Loss model (ECL). Accordingly, trade receivables have been reduced by Rs.11.71 lakhs with a corresponding decrease in retained earnings of Rs.7.91 lakhs and deferred tax liability of Rs.3.80 lakhs as at April 1, 2015.
5. Corporate Guarantee
Under Indian GAAP, corporate guarantee given by the Company on behalf of the other person/ entity is to be shown under capital and other commitment in the notes to the financial statements for disclosure purposes. Under Ind-AS, Financial guarantee contracts are recognised initially as a liability at fair value. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognised less cumulative amortisation. Accordingly, investments and other financial liabilities are increased by Rs.1,417.31 lakhs as at April 1, 2015.
Notes :
1. preference share
The Company has issues 0% Cumulative Redeemable Preference Shares for 12 years. Under Indian GAAP, the preference shares were classified as share capital/ equity. Under Ind-AS, preference shares are classified as borrowings based on the nature and terms of the contract. Interest on liability is recognised using the effective interest method. Thus the preference share capital is reduced by Rs.2,300 lakhs including securities premium with a corresponding increase in borrowings as liability. Accordingly, borrowings have been net increased by Rs.829.46 lakhs with a corresponding net decrease in other equity as at March 31, 2016.
2. Secured Loan
Under Indian GAAP, transaction costs incurred in connection with borrowings are charged to profit or loss/ capitalised as and when incurred. Under Ind-AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss/ capitalised using the effective interest method. Accordingly, borrowings have been increased by Rs.152.46 lakhs with a corresponding decrease in retained earnings of Rs.221.91 lakhs, decrease in deferred tax liability of Rs.117.43 lakhs and decrease in property, plant and equipments of Rs.186.87 lakhs as at March 31, 2016.
3. Unsecured Loan
Under Indian GAAP, Unsecured Loans are measured at loan amount. Whereas Under Ind-AS, Unsecured Loans taken by the Company are recognised in the books at the fair value. Subsequently the unsecured loans are measured at amortised cost by using effective rate of interest. Accordingly borrowings have been reduced by Rs.5,352.92 lakhs with a corresponding increase in other equity as at March 31, 2016.
4. Trade receivables
Under Indian GAAP, the Company has created provision for impairment of trade receivables consists only in respect of specific amount for incurred losses. Under Ind-AS, impairment allowance has been determined based on Expected Credit Loss model (ECL). Accordingly, trade receivables have been reduced by Rs.10.35 lakhs with a corresponding decrease in retained earnings of Rs.7.91 lakhs and deferred tax liability of Rs.3.58 lakhs as at March 31, 2016.
5. Corporate Guarantee
Under Indian GAAP, corporate guarantee given by the Company on behalf of the other person/ entity is to be shown under capital and other commitment in the notes to the financial statement for disclosure purposes. Under Ind-AS, Financial guarantee contracts are recognised initially as a liability at fair value. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognised less cumulative amortisation. Accordingly investments increased by Rs.1,417.31 lakhs with a corresponding increase in financial liabilities of Rs.1,321.39 lakhs and retained earnings of Rs.95.92 lakhs as at March 31, 2016.
Notes :
1. Guarantee fee
As per the requirements of Ind-AS 109, guarantee fee of Rs.95.92 lakhs recognised under âOther Incomeâ during the financial year 2015-16 (also refer Note 4-B(5) above).
2. Provision for expected Credit Loss
As per Ind-AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts is decreased by Rs.1.37 lakhs and the same is reversed and recognised in âOther Incomeâ during the financial year 2015-16.
3. Other comprehensive income (oCI)
Concept of other comprehensive income did not exist under Indian GAAP. Under Ind-AS, all items of income and expenses recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income or expenses that are not recognised in profit or loss but are shown in the statement of profit and loss as âOther comprehensive incomeâ includes remeasurement of defined employee benefits plans. The amount related to remeasurement of defined employee benefit plan of Rs.13.10 lakhs and tax effect of Rs.4.53 lakhs is presented as part of OCI during the financial year 2015-16.
4. Finance Cost
Ind-AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of interest expense by applying the effective interest method (also refer Note 4-B(1), 4-B(2) and 4-B(3) above).
5. Deferred Tax
Various Ind-AS transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in relation to the underlying transaction either in retained earnings or a separate component of equity. Effect of timing difference is considered for calculation of deferred tax for the financial year 2015-16 (also refer Note 4-B(2) and 4-B(4) above).
1. Capitalised Borrowing Cost
The amount of borrowing costs capitalised during the year ended March 31, 2017 was ? 164.73 lakhs (March 31, 2016: ? Nil lakhs) which is related to Kharghar Office. The rate used to determine the amount of borrowing costs eligible for capitalisation was 10.29% to 11.05% which is the effective interest rate of the specific borrowing.
2. Asset under construction
Capital Work-in Progress as at March 31, 2017 comprises expenditure for Capacity enhancement of the Somathane CFS, Development of the non-notified areas of CFSs and Establishment of a logistics park at Valsad (nearVapi).
3. Property, Plant and Equipments pledged/ mortgaged as security
All Property, Plant and Equipment are subject to a first charge/ collateral to secure the loans taken by the Company.
4. Gross carrying amount of Land and Land Development includes certain land and land development having gross block value of ? 1,661.59 lakhs (March 31, 2016: ? 1,661.59 lakhs; April 1, 2015: ? 1,614.84 lakhs) situated at different locations, which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.
5. Gross carrying amount of Motor Vehicles includes certain Motor Vehicles having gross block value of ? 173.57 (March 31, 2016: ? 188.99; March 31, 2015: ? 194.66) which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.
6. The Gross carrying amount of any fully depreciated property, plant and equipment is ? 788.11 lakhs (March 31, 2016: ? 562.02 lakhs; March 31, 2015: ? 461.93 lakhs) that is still in use.
Notes:
a) The Investment Property consist of Land and Land Developments.
b) Gross carrying amount of Investment Property includes certain land and development having gross block value of Rs.278.48 lakhs (March 31, 2016: Rs.278.48 lakhs; April 1, 2015: Rs.85.78 lakhs) situated at different locations, which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.
c) The Board of Directors has decided in the meeting held on November 25, 2016 for development of Residential Township on approximately 45 acres of land of the Company situated at Narpoli and Dahivali in Panvel, District Raigarh, Maharashtra, located in close proximity to the other residential projects.
d) Amounts are recognised in the statement of profit and loss for the above investment properties is Rs.Nil during the financial year ended March 31, 2017 and March 31, 2016.
f) Description of valuation techniques used and key inputs to valuation on investment properties
As at March 31, 2017 and March 31, 2016, the fair values of the properties are Rs.10,968.40 lakhs and Rs.9,168.75 lakhs respectively. These valuations are based on valuations performed by Ramachandra & Associates, an accredited independent valuer. Ramachandra & Associates is a specialist in valuing these types of investment properties.
Note 4- Current financial Liabilities - borrowings
Note:
(a) These facilities are secured against the following charge on various assets of the Company :
1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.
2. Collateral :
- Extension of mortgage charge on land with warehousing building at Container Freight Station, Yard I & II located at Village Ajiwali, Pune Mumbai National Highway (NH 4), Taluka Panvel, Raigad, measuring mortgageable area of 1,32,375 sq. mts., owned by the Company.
- Extension of mortgage charge on land with warehousing building at Container Freight Station, Yard III with railway siding facility, located at Village Somathane, Kon-Savla Road, Taluka Panvel, Raigad, measuring area of 2,91,123 sq. mts., owned by the Company.
- Extension of charge on entire property, plant and equipments of the Company located at locations stated above except the vehicles and equipments specifically charged for the vehicle / equipment loans.
- Extension of charge on 205-206, JK Chambers, Sector 17, Vashi, Navi Mumbai - 400 703, owned by Mr. Shantilal J Mehta, director of the Company.
- Plots of Land and Building situated at Survey No. 139/2, 140/0, 141/1B, Village Ajiwali, Tal-Panvel, District Raigad with total area of 4080 Sq. Mtrs. of WDV Value of Rs.518 lakhs and cash collateral of Rs.13 lakhs.
- DSRA equivalent to immediately ensuing quarter of debt servicing to be maintained in the form of Fixed Deposit of value of Rs.164 lakhs.
3. Personal Guarantees of : Mr. Shantilal J Mehta, Mr. Nemichand J Mehta, Mr. Jayesh N Mehta, Mr. Kunthu Kumar S Mehta, Mrs. Shailaja N Mehta, Ms. Kamalbai S Mehta, and Ms. Seema K. Mehta.
(b) Working Capital Loan from HDFC Bank amounting to Rs.1,013.93 lakhs (March 31, 2016 and April 1, 2015 : Rs.Nil) repayable on demand.
At March 31, 2017, the Company had available Rs.524.50 lakhs (March 31, 2016: Rs.389.11 lakhs, April 1, 2015: 696.24 lakhs) of undrawn committed borrowing facilities.
Note 5:- Financial assets at amortised Cost Method
The carrying value of the following financial assets recognised at amortised cost:
Note 6:- Financial Liabilities at amortised Cost Method
The carrying value of the following financial liabilities recognised at amortised cost:
Note 7:- Financial assets at fair value Through profit or Loss
The carrying value of the following financial assets recognised at fair value through profit or loss:
Note: The above investments are quoted instruments in active markets and the same is recognised at fair value. Fair value measurement is done considering the Level -1 of Fair Value Hierarchy as per the Ind-AS 113.
Note 8:- Financial Liabilities at fair value Through profit or Loss
The carrying value of the following financial liabilities recognised at fair value through profit or loss:
Note: The above other financial liabilities includes Foreign Currency Forward and Options Contracts and Liability for Corporate Guarantee. Only observable inputs directly and indirectly are available to recognise the same at fair value, accordingly fair value measurement is done considering the Level -2 of Fair Value Hierarchy as per the Ind-AS 113.
Note 9 : Financial risk Management objectives and policies
The Companyâs principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations directly or indirectly. The Companyâs principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade receivables
Customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer credit risk management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 15.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Companyâs historical experience for customers.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. Investments of surplus funds are made generally in the fixed deposits and for funding to subsidiary company. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2017 and March 31, 2016 is the carrying amounts as stated in balance sheet except for balances of subsidiary company. The Companyâs maximum exposure relating to financial guarantees and financial derivative instruments is noted in the liquidity table below.
Liquidity risk
The Company monitors its risk of a shortage of funds using a liquidity planning tool.
The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.
The table below provides details regarding the maturities of significant financial liabilities as of March 31, 2017, March 31, 2016 and March 31, 2015:
Market risk
Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Companyâs policy is to keep balance between its borrowings at fixed rates of interest. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Groupâs exposure to the risk of changes in foreign exchange rates relates primarily to the borrowings converted in the foreign currency and purchase of stores and spares from out of the India. The Company manages its foreign currency risk by hedging repayment of principals that are expected to be paid within the period of loan. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the translation into â of its foreign payables in foreign currencies and by using foreign currency option and forward contracts.
Foreign Currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Equity price risk
The Companyâs unlisted equity securities are of subsidiary and deemed cost of the same are taken as previous GAAP carrying value (i.e. cost of acquisition). The value of the financial instruments is not material and accordingly any change in the value of these investments will not affect materially the profit or loss of the Company.
Note 10 : Capital Management
For the purpose of the Companyâs capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the value of the share and to reduce the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.
Note 11 : Segment information: information about primary Business segment
The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company is engaged in CFS Operations and related activities during the year, consequently the Company does not have separate reportable business segment for the year ended March 31, 2017.
Information about secondary Geographical segment
The Company is engaged in providing services to customers located in India, consequently the Company does not have separate reportable geographical segment for the year ended March 31, 2017.
Note 12 : Merger of subsidiary Company:
Board of Directors in their meeting held on March 30, 2017 approved the Scheme of Amalgamation of Navkar Terminals Limited (âNTLâ) with the Company (âthe Schemeâ). The Company holds 50,000 equity shares fully paid up in NTL, representing 100% of the total paid up equity share capital of NTL, which shall stand extinguished upon the Scheme becoming effective. The Scheme is subject to approval of shareholders of both the companies and other regulatory authorities as prescribed in the law. Hence, no effect of the same is given in the financial statements.
Note 13 : Employee Benefits:
The Company has classified the various benefits provided to employees as under:
I. Defined Contribution Plans
a. Employersâ Contribution to Provident Fund and Employeeâs Pension Scheme
b. Employersâ Contribution to Employeeâs State Insurance
During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:
iii. Other employee benefit
The liability for leave entitlement as at March 31, 2017 is Rs.48.95 lakhs (March 31, 2016: Rs.44.95 lakhs; April 1, 2015: Rs.40.42 lakhs) disclosed under Long Term Provisions (Refer Note 24) and Short Term Provision (Refer Note 30).
iv. Sensitivity Analysis
The below sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Note 14 : Initial public offering:
During the financial year 2015-16, the Company has made an Initial Public Offering (IPO) for 3,87,09,676 equity shares of Rs.10 each, comprising of 3,29,03,225 fresh issue of equity shares by the Company and 58,06,451 equity shares offered for sale by Sidhhartha Corporation Private Limited (SCPL), a promoter group company. The equity shares were issued at a price of Rs.155 per equity share (including premium of Rs.145 per share). Out of the total proceeds from the IPO of Rs.60,000 lakhs, the Companyâs share is Rs.51,000 lakhs from the fresh issue of 3,29,03,225 equity shares. The total expenses in connection with the IPO are shared between the Company and SCPL in the proportion of the amount received from the IPO proceeds. Share issue expenses is adjusted against the securities premium account.
Fresh equity shares were allotted by the Company on September 4, 2015 and these shares rank pari-passu with the existing shares. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 9, 2015.
Notes:
1) Certain reductions to the estimated deployment of funds towards the objects of the IPO, in light of movement in prices of machinery and raw materials, as reviewed by the Audit Committee of the Board, were approved by the Board of Directors of the Company at their meeting held on November 2, 2015 and accordingly, the Company estimates savings to the tune of Rs.8726.80 lakhs, subject to any further revisions in prices in the future. The Company utilised/ intends to utilise the available excess funds on account of the aforementioned revisions for repayment of its existing loans, which will reduce the interest costs of the Company. In accordance with the disclosures made in the Prospectus, that the actual utilisation towards the objects is lower than the proposed deployment due to revision in the estimated costs, the Company intends to utilise such costs saved for further investment in business growth and expansion opportunities.
2) Pursuant to the approval accorded from the Shareholders of the Company through Postal Ballots process completed on May 05, 2017 for variation in terms of Objects of the IPO, accordingly subsequent to the year end, the Company has made repayment of secured borrowings of Rs.6,586.70 lakhs upto May 29, 2017.
Note 15 : Expenditure on Corporate social responsibility:
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the Companies Act, 2013.
(a) Gross amount required to be spent by the Company during the year Rs.205.38 lakhs (previous year Rs.162.87 lakhs)
(b) Amount spent during the year on:
Note 16 : Disclosure on specified Bank Notes (sBNs):
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below:
* For the purposes of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.
Note 17 : Previous Yearsâ figures:
The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The Company has adopted Ind-AS on April 1, 2016 with the transition date as April 1, 2015, and adoption was carried out in accordance with Ind-AS 101 - First Time Adoption of Indian Accounting Standards. The previous periodâs figures have been regrouped or rearranged wherever necessary.
Mar 31, 2016
(a) Terms / rights attached to:
Equity Shares
The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their share holding.
0% Cumulative Redeemable Preference Shares
The Company has one class of preference shares having a par value of Rs. 10 per share. They have been issued for a period of 12 years and are redeemable thereafter. These shares do not carry any dividend. In the event of liquidation, the preference shareholders are eligible to receive repayment of the capital. They do not have any rights to participate in the profits or assets of the Company.
(e) Shares allotted as fully paid up equity shares as bonus issue (during 5 years immediately preceding March 31, 2016):
91,420,665 Equity Shares of Rs. 10 each fully paid up were issued as bonus shares on March 3, 2015 in the ratio of five fully paid up equity share for every equity share held on March 2, 2015, being the record date through capitalization of surplus from the Statement of Profit and Loss Account.
Notes:
(a) Capital Reserve on Amalgamation is created as per the Scheme of Amalgamation between erstwhile Preeti Logistics Limited with the Company approved by the Hon''ble High Court Judicature at Bombay on February 11, 2010.
(b) Share holders have approved issue of bonus shares on February 28, 2015 in the ratio of five fully paid up equity share for one equity share held on March 2, 2015, being the record date, accordingly, the Company has issued 91,420,665 equity shares of Rs. 10 each fully paid up by utilizing its surplus in the Statement of Profit and Loss.
(c) With the applicability of Companies Act, 2013 with effect from April 1, 2014, and as per the provisions of Note 7 of Para C of Schedule II of the Companies Act, 2013, the Company has re-worked depreciation with reference to the estimated economic lives of fixed assets prescribed by Schedule II to the Act or actual useful life of assets, whichever is lower. For assets whose life has been completed as above, the carrying value, net of residual value aggregating Rs. 1,33,78,275 (net of deferred tax Rs. 90,37,694) as at April 1, 2014 has been adjusted to retained earnings and in other cases the carrying value as at April 1, 2014 has been depreciated over the remaining of the revised life of the assets and recognized in the Statement of Profit and Loss.
These facilities are secured against the following charge on various assets of the Company :
1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.
2. Collateral :
- Extension of mortgage charge on land with warehousing building at Container Freight Station, Yard I &
II located at Village Ajiwali, Pune Mumbai National Highway (NH 4), Taluka Panvel, Raigad, measuring mortgageable area of 92,375 sq. mts., owned by the Company.
- Extension of mortgage charge on land with warehousing building at Container Freight Station, Yard III with railway siding facility, located at Village Somathane, Kon-Savla Road, Taluka Panvel, Raigad, measuring area of 1,98,123 sq. mts., owned by the Company.
- Extension of charge on entire fixed assets of the Company located at locations stated above except the vehicles and equipments specifically charged for the vehicle / equipment loans.
- Extension of charge on 205-206, JK Chambers, Sector 17, Vashi, Navi Mumbai - 400 703, owned by Mr. Shantilal J Mehta, director of the Company.
- Plots of Land and Building situated at Survey No. 139/2, 140/0, 141/1B, Village Ajiwali, Tal-Panvel, District Raigad with total area of 4080 Sq. Mtrs. of WDV Value of Rs. 5.18 Crores and cash collateral of Rs. 0.13 Crores.
- DSRA equivalent to immediately ensuing quarter of debt servicing to be maintained in the form of Fixed Deposit of value of Rs. 1.64 Crores.
3. Personal Guarantees of : Mr. Shantilal J Mehta, Mr. Nemichand J Mehta, Mr. Jayesh N Mehta, Mr. Kunthu Kumar S Mehta, Mrs. Shailaja N Mehta, Mrs. Kamalbai S Mehta, and Mrs. Seema K. Mehta.
Note:
As per information available with the Company, there are no Micro and Small Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006, to whom the Company owes dues, which are outstanding as at March 31, 2016.
The Company has taken appropriate steps for refund of share application money received in Initial Public Offering in case of un allotted/ partially allotted applications. The balance is kept in a separate bank account ''Share Application Money Refund Account'' and the Company cannot freely use this amount. Subsequent to year end, Rs. 147,250 has been paid till May 27, 2016.
Notes:
1. With the applicability of Companies Act, 2013 with effect from April 1, 2014, and as per the provisions of Note 7 of Para C of Schedule II of the Companies Act, 2013, the Company has re-worked depreciation with reference to the estimated economic lives of fixed assets prescribed by Schedule II to the Act or actual useful life of assets, whichever is lower. For assets whose life has been completed as above, the carrying value, net of residual value aggregating Rs, 1,33,78,275 (net of deferred tax Rs, 90,37,694) as at April 1, 2014 has been adjusted to retained earnings and in other cases the carrying value as at April 1, 2014 has been depreciated over the remaining of the revised life of the assets and recognized in the Statement of Profit and Loss.
2. Gross block of Land and Land Development includes certain land and land development having gross block value ofRs, 19,40,06,776 (as at March 31, 2015: Rs, 17,00,61,841) situated at different locations, which are in the name of the promoters of the Company and are yet to be transferred in the name of the Company.
3. Gross block of Motor Vehicles includes certain Motor Vehicles having gross block value ofRs, 1,88,98,658 (as at March 31, 2015: Rs, 1,94,66,809) which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.
4. Land situated at Ajiwali was transferred in the books of account of the Company on September 29, 2008 from the erstwhile partnership firm, M/s. Navkar Infra & Logistics Corporation at INR 1,051.52 million. This land was revalued in the erstwhile partnership firm, M/s. Navkar Infra & Logistics Corporation and credited to the Partners Capital Accounts and Current Account. The balances of Partners Capital have been converted into Equity Share Capital Account and balances of Partners Current Accounts have been converted into Unsecured Loans in the Company on Part IX Conversion of the erstwhile partnership firm, M/s. Navkar Infra & Logistics Corporation into Navkar Corporation Limited.
(i) The Company has issued Corporate Guarantees aggregating to Rs. 2,671.82 million as at year end (March 31, 2015: Rs. 2,668.92 million) on behalf of Navkar Terminals Limited (Formerly known as Harvard Credit Rating Agency Limited) and Rs. Nil as at year end (March 31, 2015: Rs. 1,700 million) on behalf of Sidhhartha Corporation Private Limited. Liabilities outstanding for which Corporate Guarantees have been issued aggregates Rs. 1,398.01 million as on March 31, 2016 (March 31, 2015: Rs. 1,873.04 million).
(ii) The Company is a Co-Borrower for Commercial Vehicle Loans taken by Navkar Terminals Limited (Formerly known as Harvard Credit Rating Agency Limited) aggregating to Rs. 5.313 million as at year end (March 31, 2015: Rs. 5.313 million). Liabilities outstanding for which the Company is a co-applicant aggregates to Rs. 3.24 million as on March 31, 2016 (March 31, 2015: Rs. 4.47 million).
NoTE 5 : P. D. Sekhsaria Trading Company Private Limited and United India Insurance Company Limited filed a special civil suit dated March 25, 2013 before the Court of Civil Judge against the Company for recovery of Rs. 42,340,533 along with interest from the date of cause of action until realization of the amount in respect of loss of cargo stored at the Company''s premises due to fire. United India Insurance Company Limited settled the claim of P. D. Sekhsaria Trading Company Private Limited by paying an amount of Rs. 42,340,533 under a marine insurance policy taken by P. D. Sekhsaria Trading Company Private Limited from United India Insurance Company Limited and was entitled to file the suit pursuant to subrogation and assignment. The Company then filed a reply dated November 26, 2013. As per the Management''s view, the liabilities would not arise to the Company as the Company has insurance cover for the same, hence not considered as contingent liabilities.
note 6 : SEGMENT INFORMATION
Information about Primary Business Segment
The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company is engaged in CFS Operations and related activities during the year, consequently the Company does not have separate reportable business segment for the year ended March 31, 2016.
Information about Secondary Geographical Segment
The Company is engaged in providing services to customers located in India, consequently the Company does not have separate reportable geographical segment for the year ended March 31, 2016.
note 7 : employee BENEFITS
The Company has classified the various benefits provided to employees as under:
i. defined Contribution Plans
a. Employers'' Contribution to Provident Fund and Employee''s Pension Scheme
b. Employers'' Contribution to Employee''s State Insurance
During the year, the Company has incurred and recognized the following amounts in the Statement of Profit and Loss:
iii. other employee Benefit
The liability for leave entitlement as at year end is Rs. 4,495,167 (March 31, 2015: Rs. 4,041,704) disclosed under Long Term Provisions (Refer Note 8) and Short Term Provision (Refer Note 12).
note 8 : OPERATING Lease TRANSACTIONS
During the previous year, the Company has leased out certain trucks and trailers under cancellable operating lease agreements that are renewable on a periodic basis at the option of both the less or and the lessee for which Rent Income of Rs. Nil (2014-15: Rs. 8,750,000) for the year has been recognized in the Statement of Profit and Loss.
The Company has agreement for leased out of 45 numbers of trucks and trailers and not specific trucks and trailers, considering the nature of business of the Company, there are large number of trucks and trailers are owned by the Company, therefore, it is not feasible to identify the particular trucks and trailers are given on lease at a single point of time as the same is given on the basis of availability of the trucks and trailers as and when required by the party. Hence, the information regarding gross carrying amount, accumulated depreciation and net carrying amount as at year end and depreciation for the year as required by the Accounting Standard - (AS) 19 Rs. are not disclosed.
note 9 : related PARTY DISCLOSURE
i) Relationship
Description of relationship Names of Related Parties
Key Management Personnel Mr. Shantilal J Mehta
Mr. Nemichand J Mehta (CEO)
Mr. Jayesh N Mehta
Mrs. Ekta Chuglani (Company Secretary w.e.f. 12-09-2014)
Mr. Jayesh Kothari (Chief Financial Officer from 25-09-2014 to 05-02-2015) Mr. Anish Maheshwari (Chief Financial Officer w.e.f 06-02-2015)
Mr. Dinesh Gautama (w.e.f. 08-12-2014)
Relative of key management Mrs. Shailaja N Mehta personnel with whom the Company Mr. Kunthu Kumar Mehta has entered into transactions Mrs. Kamalbai S Mehta
Mrs. Sairabai J Mehta Mrs. Seema K Mehta
Subsidiary Navkar Terminals Limited (Formerly known as Harvard Credit Rating
Agency Limited)
Enterprises in which Key Sidhhartha Corporation Private Limited Management personnel and Harvard Global Logistics Limited
relatives of Key Management Navkar Terminals Limited (Merged with Harvard Credit Rating Agency personnel have significant influence Limited, as per the Scheme of Amalgamation, appointed date is 01-11-2014)
M/s. Arihant Industries (Proprietorship of Mr. Nemichand J Mehta) Navkar Charitable Trust
Notes:
1) The list of related parties above has been limited to entities with which transactions have taken place.
2) Related party transactions have been disclosed till the time the relationship existed.
note 10 : DERIVATIVE Instruments
The Company is exposed to foreign currency fluctuations on foreign currency assets/ liabilities, payables denominated in foreign currency. In line with the Company''s risk management policies and procedures, the Company enters into foreign currency option contracts and swap contracts to manage its exposure.
note 11 : initial PUBLIC OFFERING
During the year, the Company has made an Initial Public Offering (IPO) for 3,87,09,676 equity shares of Rs. 10 each, comprising of 3,29,03,225 fresh issue of equity shares by the Company and 58,06,451 equity shares offered for sale by Sidhhartha Corporation Private Limited (SCPL), a promoter group company. The equity shares were issued at a price of Rs. 155 per equity share (including premium of Rs. 145 per share). Out of the total proceeds from the IPO of Rs. 6,000 Million, the Company''s share is Rs. 5,100 Million from the fresh issue of 3,29,03,225 equity shares. The total expenses in connection with the IPO are shared between the Company and SCPL in the proportion of the amount received from the IPO proceeds. Share issue expenses is adjusted against the securities premium account. Fresh equity shares were allotted by the Company on September 4, 2015 and these shares rank pari-passu with the existing shares. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 9, 2015.
Certain reductions to the estimated deployment of funds towards the objects of the IPO, in light of movement in prices of machinery and raw materials, as reviewed by the Audit Committee of the Board, were approved by the Board of Directors of the Company at their meeting held on November 2, 2015 and accordingly, the Company estimates savings to the tune of Rs. 872.68 Million, subject to any further revisions in prices in the future. The Company utilized/ intends to utilize the available excess funds on account of the aforementioned revisions for repayment of its existing loans, which will reduce the interest costs of the Company. In accordance with the disclosures made in the Prospectus, that the actual utilization towards the objects is lower than the proposed deployment due to revision in the estimated costs, the Company intends to utilize such costs saved for further investment in business growth and expansion opportunities.
note 12: CURRENT ASSETS AND LOANS AND ADVANCES
In the opinion of the Board, the Current Assets and Loans and Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
note 13 : previous YEARS''S FIGURES
Previous year figures'' have been reclassified to conform to current year''s classification wherever applicable.
The accompanying notes are an integral part of these financial statements
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Navkar Corporation Ltd.
-
Navkar Corporation Ltd. Tools
- Bulk Deals
- Block Deals
-
Navkar Corporation Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Navkar Corporation Ltd. Key Financial Ratios
- Ratios
-
Navkar Corporation Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Navkar Corporation Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Navkar Corporation Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Navkar Corporation Ltd. Corporate Announcements
- Book Closure
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+