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Notes to Accounts of Satia Industries Ltd.
Mar 31, 2025
(o) Provisions, Contingent Liabilities and Contingent
Assets
Provisions
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that the company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).
When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received
and the amount of the receivable can be measured
reliably.
Onerous contracts
A contract is considered as onerous when the expected
economic benefits to be derived by the company from
the contract are lower than the unavoidable cost of
meeting its obligations under the contract. The
provision for an onerous contract is measured at the
lower of the expected cost of terminating the contract
and the expected net cost of continuing with the
contract. Before a provision is established, the company
recognises any impairment loss on the assets
associated with that contract.
a. Contingent Liabilities
Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate
of the amount cannot be made.
b. Contingent Assets
Contingent assets are not recognized in the accounts.
However they are disclosed when the possible right to
receive exists.
(p) Earnings Per Share (EPS)
Basic earnings per share (''EPS'') is computed by dividing
the net profit or loss without impact of Other
Comprehensive Income for the year attributable to
equity shareholders by the weighted average number
of shares outstanding during the year.
Diluted EPS is computed using the weighted average
number of equity and delusive equity equivalent shares
outstanding during the period except where the result
would be anti dilutive.
(q) Leases
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.
The Company as a lessee
Right of use assets and lease liabilities
The Company considers whether a contract is, or
contains a lease. A lease is defined as ''a contract, or part
of a contract, that conveys the right to use an asset (the
underlying asset) for a period of time in exchange for
consideration''. The Company enters into leasing arr¬
angements for various assets. 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 obtains 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.
Recognition and initial measurement
At lease commencement date, the Company recognizes
a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which
is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Company,
an estimate of any costs to dismantle and remove the
asset at the end of the lease (if any), and any lease
payments made in advance of the lease commence¬
ment date (net of any incentives received).
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.
Subsequent measurement
The Company depreciates the right-of-use assets on a
straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-
use asset or the end of the lease term. The Company
also assesses the right-of-use asset for impairment
when such indicators exist.
At lease commencement date, the Company measures
the lease liability at the present value of the lease
payments unpaid at that date, discounted using the
interest rate implicit in the lease if that rate is readily
available or the Company''s incremental borrowing rate.
Lease payments included in the measurement of the
lease liability are made up of fixed payments (including
in substance fixed payments) and variable payments
based on an index or rate. Subsequent to initial
measurement, the liability will be reduced for
payments made and increased for interest. It is re¬
measured to reflect any reassessment or modification,
or if there are changes in in-substance fixed payments.
When the lease liability is re-measured, the corres¬
ponding adjustment is reflected in the right- of use
asset.
The Company has elected to account for short-term
leases and leases of low value assets using the practical
expedients. Instead of recognizing a right-of-use asset
and lease liability, the payments in relation to these are
recognized as an expense in standalone statement of
profit and loss on a straight-line basis over the lease
term.
Where the Company is the lessor
Leases in which the Company does not transfer sub¬
stantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income
from operating lease is recognized on a straight-line
basis or another systematic basis as per the terms of the
relevant lease. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the
carrying amount of the leased asset and recognized
over the lease term on the same basis as rental income.
Contingent rents are recognized as revenue in the
period in which they are earned.
Leases are classified as finance leases when sub¬
stantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts due
from lessees under finance leases are recorded as
receivables at the Company''s net investment in the
leases. Finance lease income is allocated to accounting
periods so as to reflect a constant periodic rate of return
on the net investment outstanding in respect of the
lease.
(r) Segment Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker (''CODM'') of the
Company. The CODM is responsible for allocating
resources and assessing performance of the operating
segments of the Company.
(s) Cash and Cash Equivalent
For the purpose of presentation in the cash flow
statement, cash and cash equivalents include cash on
hand, demand deposits with banks, other short term
highly liquid investments with original maturities of
three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.
(t) Loan to Employees and Key Managerial Personnel
(KMP)
The Company has policy to provide Loan to Employees
and KMP as per the provisions of the Companies Act
2013. In case a period of loan is more than twelve
months, a discount rate is applied to check the variation
where the interest being is charged is different from the
discount rate, if any variation is assessed then same will
be recognised as income or expense in the statement of
profit and loss account.
(u) Significant management judgement in applying
accounting policies and estimation uncertainty
i. Significant management judgements
When preparing the financial statements, management
undertakes a number of judgements, estimates and
assumptions about the recognition and measurement
of assets, liabilities, income and expenses.
The following are significant management judgements
in applying the accounting policies of the Company that
have the most significant effect on the financial
statements.
Recognition of deferred tax assets: The extent to which
deferred tax assets can be recognised is based on an
assessment of the probability of the Company''s future
taxable income against which the deferred tax assets
can be utilised.
ii. Estimation
Information about estimates and assumptions that
have the most significant effect on recognition and
measurement of assets, liabilities, income and
expenses is provided below. Actual result may be
substantially different.
Defined benefit obligation: Management estimates of
these obligation is based on a number of critical
underlying assumptions such as standard rates of
inflation, medical cost trends, mortality, discount rate
and anticipation of future salary increases. Variation in
these assumptions may significantly impact the defined
benefit obligation amount and the annual defined
benefit expenses.
Provisions: At each balance sheet date based on
management judgement, changes in facts and legal
aspects, the company assesses the requirement of
provisions against the outstanding warranties and
guarantees. However the actual future /outcome may
be differ from this judgement.
(v) Current and Non Current Classification
The Company presents assets and liabilities in the
Balance Sheet based on Current/ Non-Current
classification.
An asset is treated as Current when it is
Expected to be realised or intended to be sold or
consumed in normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realised within twelve months after the
reporting period, or
Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the
reporting period, or
There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.
The Company classifies all other liabilities as non-
current.
Deferred tax assets and liabilities are classified as non
-current assets and liabilities.
(w) Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31,2025, MCA has amendments to Ind AS 116- Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.
Notes:
(a} Above term loans outstanding except Ba.iaj Finance, AXA Ba>nk & Vehicle Loans from banks are secured as follows.-
l1) 1 pari passu charge:- Hypothecation of entire fixed assets lexcept assets which are exclusively charged by other lenders) of the Company (both present and future) including
equitable mortgage.
121 rd
2 pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets | both present and future I.
(b) Term loan from 8ajaj Finance is primarily secured by way ol hypothecation of moveable assets specifically financed by them.
Above term loans are further personally guaranteed by the Chairman Cum Managing Oirector and Joint Managing Director of the Company
|c) Vehicle loans are primarily secured by way of hypothecation of moveable assets specifically financed by them.
(d) The loan due to AKA Bank, Frankfurt. Germany is an external commeicial borrowing amounting to 16,31,983 12 EURO at the rate of 1.40% ⢠EURIBOR
(e) Instalments for repayment of term loans due to be paid in the next year amounting f. 1,711,97 Lakhs 12023-24 t 12,092.52 Lakhs) have been treated as short-term borrowings and
are not included in âong term liability.
(f) India ratings and research has assigned a rating of A to the above term loans
(g) Terms of repayment
Normal Repayment Period 4-6 Years
Interest rates on Term Loans are in range of 3.90% to 9,45%.
lh) There was no default in repayments during financial year 2024-25 and previous year.
39. Employee Benefit Plant (Contd.)
B. Defined benefit plans and other long-term benefits
a| Gratuity
fbe Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme ss unfunded. The liability for the same is
recogrwed on the basis of actuarial valuation.
b) Leave Encashment
The Company has a defined benefit leave encashment plan for its employees. Linder this plan, they are entitled to encashment of earned leaves subject to certain limits and other
conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.
These plants typically expose the
Investment Rrsk The present value of the defined benefit plan liability {denominated in Indian Rupee} is calculated using a discount rate which is determined bv
reference to market yields at the end of the reporting period on government bonds
Interest Risk A decrease in the bond interest rjte will Increase the plan liability
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both
during and alter their employment An increase m the life''s expectancy of the plan participants will increase the plan''s liability
Salary Risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan part.cipants. As such, an Increase in
the salary of the plan participants will Increase the plan''s liability
The most recent actuarial valuation and the present value of the defined benefit obligation were earned out as at March 31. 2025. The present value of the defined benefit
obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
41.3 Financial risk management objectives (Contd.)
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resuiting in financial loss to the Company. The Company has limited exposure to credit risk
m respect of trade receivables The Company''s bank balances are held with o reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial
assets and liabilities.
The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepied pricing models based on a
discounted cash flow analysis, with the most significant Inputs being the discount rate that reflects the cred''t nsk of counterparties
51. In the opinion of the Board of Directors, current assets have a value on realisation In the ordinary course of business at least equal to the amount at which they are stated m the
balance sheet and provisions for all known / expected liabilities nave been made
52. The balances confirmations of trade receivables, trade payables, advances given, and other financial and non-financial assets and liabilities are received in most of the cases. In a few
cases, such balances confirmations are subject to reconciliation. Adjustments, if any, will be accounted for on reconciliation of the same, which in the opinion of the management
will not have a material impact
53. The Company receives security deposits from certain parties on the basis of financial exposure. The repayment of these security deposits is based on the performance and
satisfaction of the Company and are repayable a: the notice of one year.
54. The Company has used accounting software systems for maintaining its boob of account for the financial year ended March 31. 2025 wtv-ch have the feature of recording audit trail
(edit log) facility and the same has operated throughout the year for ail relevant transactions recorded in the software systems. Further, during the year no instance of audit trail
feature being tampered with was noted In respect of accounting software except that, audit trait feature Is not enabled for direct changes to data when using certain access rights.
The audit trail has been preserved by the Company as per the statutory requirements for record retention.
56. Additional disclosures relating to the requirement of Schedule III
a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property
b) The Company has not traded or invested in Oypto currency or Virtual Currency during the financial year
c) The Company has not granted Loans Qt Advances in the nature of loan to any promoters, Directors. KMPs and the related parties (As per the Companies Act, 2013), which are
repayable on demand or without specifying any terms or period of repayments
d) The Company has not advanced or loaned or invested funds to any other person(s) or entities), including foreign entities (intermediaries) with the understanding tf>3t the
intermediary shall:
i. Directly or indirectly lend or invest in otner persons or entities identified in any manner ''whatsoever by or on behalf of The Company {ultimate beneficiaries) or
ii. Provide any guarantee, security or the like to or on behalf of the ultimate benefioar.es.
e) The Company has not received any fund from any person(s) or entltyiies), including foreign entities (funding party) with the understanding {whether recorded In writing or
otherwise! that The Company shall:
I. 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
ii. Provide any guarantee, security or the like on behalf of the ultimate beneficiaries
H) The Company does not have any such transaction which Is not recorded In the books of accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act. 1961 |such as search, survey or any other relevant provisions of the Income-tax Act, 1961).
h) The Company dcs not have have any subsxSiary or associate Therefore compliance with number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restnctron of number of layers) Rules. 2017 is not appticable.
I) The Company has not been declared wilful defaulter by any bank or financial Institution or government or any government authority.
jl The Company does not have any charges or satisfaction which is vet to be registered with Registrar of Companies (ROCI beyond the statutory period
k) Quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
l) The Company has no: earned out revaluation of items of property, plant and equipment and intangible assets during the -year accordingly the disclosure as to whether the
revaluation >s based on the valuation by a registered valuer as defined under Rule 2 of the Companies {Registered Valuers and V3luatlon| Rules, 2017 is not applicable
m) The Company has used me borrowings from banks and financial statements for the specific purpose for which It was obtained.
n) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act. 2013
o) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements arc duly executed in favour of the
Company) disclosed in the financial statements included in property, plant and equipment and capital work m progress are held in the name of the Company as at the balance sheet
date
p| The Company does not have any transac tions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the
year ended March 31, 2025 and the year ended March 31,2024,
r) The Company does not nave any Investment property and accordingly the disclosure as to wnether the fair value is based on the vaiuaton by a registered valuer as defused under
Rule 2 of the Companies (Registered Valuers and Valuation) Rules. 2017 Is not applicable.
s) Disclosure under secvon 186(4) of the Companies Act 2013
a) Details of investments made are given in notes.
b) The Company has not given any loan and not provided any guarantee and security during the financial year, requiring disclosure under section 186(4) of the Companies Act,
2013.
57. The figures for the previous year have been reclassified / regrouped wherever necessary including for amendments relating to Schedule III of the Companies Act, 2013 for better
understanding and comparability
The figures of the financial statements are represented as in lnd:3n Rupees lakhs (H in lakhs) upto two decimal places leaving the scope of rounding up variations.
The accompanying notes from an integral part of the financial statements.
for N. Kumar Chhabra and Co. for and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration Number 00837N
CA. Ashivh Chhabra Dr. Ajay Salta Rajinder Kumar Bhandari
fCA. Partner Chalrman-Cum Managing Director Joint Managing Director
Membership Number 507083 DIN: CO350792 DIN: OQ732SB8
UDIN: 255O7O830MKNHN2514
Place: Chandigarh
Date: May 24,2025 Rakesh Kumar Dhuria Rachit Nagpal
Company Secretary Chief Financial Officer
Membership Number: A7149 PAN: AMBPN1908P
Mar 31, 2024
(o) Provisions, Contingent Liabilities and Contingent Assets
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Onerous contracts
A contract is considered as onerous when the expected economic benefits to be derived by the company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision for an onerous contract is measured at the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that contract.
a. Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
b. Contingent Assets
Contingent assets are not recognized in the accounts. However they are disclosed when the possible right to receive exists
(p) Earnings Per Share (EPS)
Basic earnings per share (''EPS'') is computed by dividing the net profit or loss without impact of Other Comprehensive Income for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.
Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the result would be anti-dilutive
(q) Leases
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.
The Company as a lessee
Right of use assets and lease liabilities
For any new contracts entered into on or after 1st April, 2019, the Company considers whether a contract is, or contains a lease. A lease is defined as ''a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration''. The Company enters into leasing arrangements for various assets. 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 obtains 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.
Recognition and initial measurement
At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any incentives received).
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.
Subsequent measurement
The Company depreciates the right-of-use assets on a straight-line basis from
the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.
At lease commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company''s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as an expense in standalone statement of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognized on a straight-line basis or another systematic basis as per the terms of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over
the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
(r) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (''CODM'') of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.
(s) Cash and Cash Equivalents
For the purpose of presentation in the cash flow statement, cash and cash equivalents include cash on hand, demand deposits with banks, other short term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(t) Loan to Employees and Key Managerial Personnel (KMP)
The Company has policy to provide Loan to Employees and KMP as per the provisions of the Companies Act 2013. In case a period of loan is more than twelve months, a discount rate is applied to check the variation where the interest being is charged is different from the discount rate. if any variation is assessed then same will be recognised as income or expense in the statement of profit and loss account.
(u) Significant management judgement in applying accounting policies and estimation uncertainty
i. Significant management judgements
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Recognition of deferred tax assets: The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilised.
ii. Estimation
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual result may be substantially different.
Defined benefit obligation: Management estimates of these obligation is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.
Provisions: At each balance sheet date based on management judgement, changes in facts and legal aspects, the company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future /outcome may be differ from this judgement.
(v) Current and Non Current Classification
The Company presents assets and
liabilities in the Balance Sheet based on Current/ Non-Current classification.
An asset is treated as Current when it is
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as noncurrent.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
(w) Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Notes:
(a) Above term loans outstanding except Bajaj Finance, AKA Bank & Vehicle Loans from banks are secured as follows:-
(1) 1st pari passu charge:- Hypothecation of entire fixed assets (except assets which are exclusively charged by other lenders) of the Company (both present and future) including equitable mortgage.
(2) 2nd pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets (both present and future).
(b) Term loan from Bajaj Finance is primarily secured by way of hypothecation of moveable assets specifically financed by them.
Above term loans are further personally guaranteed by the Chairman Cum Managing Director and Joint Managing Director of the company.
(c) Vehicle loans are primarily secured by way of hypothecation of moveable assets specifically financed by them.
(d) Company entered into a swap agreement amounting to INR 3018.13 Lakhs with loan amounting to Euro 34,50,707.17. The impact of Mark to market gain/(loss) under the Swap agreement has been separately provided and charged to statement of profit and loss account.
(e) The loan due to AKA Bank, Frankfurt, Germany is an external commercial borrowing amounting to 48,95,949.28 EURO at the rate of 1.40% EURIBOR.
(f) Instalments for repayment of term loans due to be paid in the next year amounting Rs. 12092.52 Lakhs (202223 Rs. 12,277.74 Lakhs) have been treated as current liability and are not included in long term liability.
(g) India ratings and research has assigned a rating of A to the above term loans.
(h) Terms of repayment:
Normal Repayment Period : 4-6 Years
Interest rates on Term Loans are in range of 5.33% to 9.25%.
(i) There was no default in repayments during financial year 2023-24 and previous year.
Gratuity
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 70.44 Lakhs (increase by Rs.80.9S Lakhs) [as at March 31, 2023: decrease by Rs. 59.72 Lakhs (increase by Rs.68.35 Lakhs)].
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 81.01 Lakhs (decrease by Rs. 71.46 Lakhs) [as at March 31, 2023: increase by 68.44 Lakhs (decrease by Rs. 60.61 Lakhs)].
The estimated term of the benefit obligations in case of gratuity is 14 years (As at March 31, 2023:13 years)
Leave Encashment
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 33.31 Lakhs (increase by Rs. 38.85 Lakhs) [as at March 31, 2023: decrease by Rs. 26.22 Lakhs (increase by Rs. 30.43 Lakhs)].
If the expected salary growth increases (decreases] by 100 basis points, the defined benefit obligation would increase by Rs. 39.35 Lakhs [decrease by Rs. 34.27 Lakhs) [as at March 31, 2023: increase by Rs. 30.90 Lakhs [decrease by Rs. 27.04 Lakhs)].
The estimated term of the benefit obligations in case of leave encashment is 16 years (As at March 31, 2023: 16 years).
The sensitivity analysis presented above may not be representative of the actual change in the
defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
There has been no change in the process used by the Company to manage its risks from prior periods.
41. Segment Information
Information reported to the Chief Operating Decision Maker (CODM) i.e., Managing director for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.
Specifically, the Group''s reportable segments under Ind AS 108 are as follows
1. Paper division
2. Cogeneration division
3. Agriculture division
The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors'' salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Revenue and expenses directly identifiable to the segments have been allocated to the relatively primary reportable segments.
41. Segment Information (Contd.)
For the purposes of monitoring segment performance and allocating resources between segments:
a) All assets are allocated to reportable segment.
b) All liabilities are allocated to reportable segments other than Rs. 1,14,877.75 Lakhs (As at March 31, 2023: Rs. 73,319.75 Lakhs) on account of share capital, other equity.
Notes:
Capital Expenditure includes addition during the year to property, plant and equipment, and capital work-inprogress.
Geographical information:
The geographical segments considered for disclosure are based on markets, broadly as under
1. India
2. Rest of the World
42.3 Financial risk management objectives
The Company''s corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.
Market Risk
The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.
A. Currency risk
(a) Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.
The carrying amounts of the company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.
(b) Foreign Currency sensitivity analysis
For the year ended March 31, 2024, every one rupee depreciation/ appreciation in the exchange rate against U.S. dollar, might have affected the Company''s incremental operating margins approximately by 0.34% (previous year 0.12%) and for every one rupee depreciation/ appreciation in the exchange rate against Euro, might have affected the Company''s incremental operating margins approximately by 0.33% (previous year 0.03%).
B. Interest risk
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change 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.
Interest rate sensitivity analysis
For the year ended March 31, 2024, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the Company''s incremental operating margins approximately by 0.14% (previous year 0.17%).
C. Other price risks
The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company doesn''t actively trade these investments.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has limited exposure to credit risk in respect of trade receivables. The Company''s bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2024:
52. Disclosure as per Ind AS 1 ''Presentation of financial statements'' and Disclosure as per Ind AS 8 - ''Accounting Policies, Changes in Accounting Estimates and Errors''.
(a) Changes in significant accounting estimates:
In the previous financial year, to improve the appropriateness of the allocation of the deprecation expense on its property, plant and equipment over the remaining useful life of the assets, the Company has changed the estimate of residual value from 10% to 5%, which is inline with Schedule II to the Companies Act 2013. As a result of this change in estimate, the accumulated depreciation has been adjusted by Rs. 8,295.82 Lakhs upto March 31, 2023 and Rs. 5,903.64 Lakhs upto March 31, 2022 in accordance with Ind AS 8 ''Accounting Policies, Changes in Accounting Estimates and Errors''.
It is pertinent to note that this change in depreciation estimate has been applied prospectively, and prior periods have not been restated. The Company believes that this change will lead to a more appropriate allocation of depreciation expense over the remaining useful life of the assets and is consistent with its policy of continuously reviewing and updating accounting estimates as necessary.
Further, due to the higher depreciation, higher deferred tax asset is created which correspondingly reduced the tax expense for the financial year 2022-23.
(b) Certain other changes have also been made in the policies for improved disclosures. There is no impact on the financial statements due to these changes.
53. The balances confirmations of trade
receivables, trade payables, advances given,
and other financial and non-financial assets and liabilities are received in most of the cases. In a few cases, such balances confirmations are subject to reconciliation. Adjustments, if any, will be accounted for on reconciliation of the same, which in the opinion of the management will not have a material impact.
54. The Company receives security deposits from certain parties on the basis of financial exposure. The repayment of these security deposits is based on the performance and satisfaction of
the Company and are repayable at the notice of one year.
55. The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, no instance of audit trail feature being tampered with was noted in respect of the software.
whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.
l) The Company has used the borrowings from banks and financial statements for the specific purpose for which it was obtained.
m) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.
n) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work in progress are held in the name of the Company as at the balance sheet date.
o) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the year ended March 31, 2024 and the year ended March 31, 2023.
58. The figures for the previous year have been reclassified / regrouped wherever necessary including for amendments relating to Schedule III of the Companies Act, 2013 for better understanding and comparability.
The figures of the financial statements are represented as in Indian Rupees Lakhs upto two decimal places leaving the scope of rounding up variations.
The accompanying notes from an integral part of the financial statements.
for N. Kumar Chhabra and Co. for and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration Number 00837N
CA. Ashish Chhabra Dr. Ajay Satia Rajinder Kumar Bhandari
FCA, Partner Chairman-Cum Managing Director Joint Managing Director
Membership Number 507083 DIN: 00850792 DIN: 00732588
UDIN: 24507083BKBLWS8346
Rakesh Kumar Dhuria Rachit Nagpal
Place : Chandigarh Company Secretary Chief Financial Officer
Date: May 27, 2024 Membership Number: A7149 PAN: AMBPN1908P
Mar 31, 2023
(i) Rights, preferences and restriction attached to shares
The Company has only one class of equity shares having a par value of Re. 1 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, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The distribution will be in proportion to the number of equity shares held by the shareholders.
(a) Above term loans outstanding except Bajaj Finance, AKA Bank & Vehicle Loans from banks are secured as follows:-
(1) 1st pari passu charge:- Hypothecation of entire fixed assets (except assets which are exclusively
charged by other lenders) of the Company (both present and future) including equitable mortgage.
(2) 2nd pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets (both present and future).
(b) Term loan from Bajaj Finance is primarily secured by way of hypothecation of moveable assets specifically financed by them.
Above term loans are further personally guaranteed by the Chairman Cum Managing Director and Joint Managing Director of the company.
(c) Vehicle loans are primarily secured by way of hypothecation of moveable assets specifically financed by them.
(d) Company entered into a swap agreement amounting to INR 3018.13 lacs with loan amounting to Euro 34,50,707. The impact of Mark to market gain/(loss) under the Swap agreement has been separately provided and charged to statement of profit and loss account.
(e) The loan due to AKA Bank, Frankfurt, Germany is an external commercial borrowing amounting to 81,59,915.44 EURO at the rate of 1.40% EURIBOR.
(f) Instalments for repayment of term loans due to be paid in the next year amounting Rs. 12,277.74 lacs (2021-22 Rs. 9,607.54 Lacs) have been treated as current liability and are not included in long term liability.
(g) India ratings and research has assigned a rating of A to the above term loans.
(h) Terms of repayment:
Normal Repayment Period : 4-6 Years
Interest rates on Term Loans are in range of 1.4% to 9.25%.
There was no default in repayments during financial year 2022-23 and previous year.
39. Disclosures regarding leases as per Ind As 116 ''Leases''
A. Assets taken on lease
The Company has leases for office building, and land etc. With the exception of shortterm leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
B. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Rental expenses recorded for short-term leases and low value leases is Rs. 59.03 lacs during year ended March 31, 2023 (March 31, 2022 Rs. 87.51 lacs).
40. Employee Benefit Plans
A. Defined Contribution Plans
The Company makes contribution towards employees'' state insurance, employees'' provident fund, and Labour welfare fund. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs. 380.60 lacs (March 31, 2022 Rs. 267.03 lacs) during the year as expense towards contribution to these plans.
B. Defined benefit plans and other long-term benefits
a) Gratuity
The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is unfunded. The liability for the same is recognized on the basis of actuarial valuation.
b) Leave Encashment
The Company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.
These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
Investment Risk The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest Risk A decrease in the bond interest rate will increase the plan liability.
Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the
life''s expectancy of the plan participants will increase the plan''s liability.
Salary Risk The present value of the defined benefit plan liability is calculated
by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
The most recent actuarial valuation and the present value of the defined benefit obligation were carried out as at March 31, 2023 by Mr. Ashok Kumar Garg. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Sensitivity Analysis (Based on most likely/possible changes in assumptions used)
Gratuity
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 59.72 lacs (increase by Rs.68.35 lacs) [as at March 31, 2022: decrease by Rs. 53.88 lacs (increase by Rs.61.71 lacs)].
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 68.44 lacs (decrease by Rs. 60.61 lacs) [as at March 31, 2022: increase by Rs. 61.53 lacs (decrease by Rs. 54.44 lacs)].
The estimated term of the benefit obligations in case of gratuity is 13 years (As at March 31, 2022:13 years )
Leave Encashment
If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 26.22 lacs (increase by Rs. 30.43 lacs) [as at March 31, 2022: decrease by Rs. 28.01 lacs (increase by Rs. 32.88 lacs)].
If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 30.90 lacs [decrease by Rs. 27.04 lacs) [as at March 31, 2022: increase by
Rs. 33.29 lacs (decrease by Rs.28.81 lacs)].
The estimated term of the benefit obligations in case of leave encashment is 16 years (As at March 31, 2022: 18 years)
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
There has been no change in the process used by the Company to manage its risks from prior periods.
41. Segment Information
Information reported to the Chief Operating Decision Maker (CODM) i.e., Managing director for the purposes of resource allocation and assessment of segment performance focuses on the
types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.
Specifically, the Group''s reportable segments under Ind AS 108 are as follows
1. Paper division
2. Yarn and cotton division
3. Cogeneration division
4. Agriculture division
5. Solar division
Note: The note should state the judgements made by management in applying the aggregation criteria. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics.
The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors'' salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Revenue and expenses directly identifiable to the segments have been allocated to the
relatively primary reportable segments.
For the purposes of monitoring segment performance and allocating resources between segments:
a) All assets are allocated to reportable segment.
b) All liabilities are allocated to reportable segments other than Rs. 1,07,529.62 lacs (As at March 31, 2022: Rs. 97,090.57 lacs) on account of share capital, other equity, deferred tax liabilities and other liabilities of corporate office.
Capital Expenditure includes addition during the year to property, plant and equipment, and capital work-in-progress.
Geographical information:
42. Financial Instruments
42.1 Capital Management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.
The capital structure of Company consist of equity and external borrowings.
Gearing ratio
42.3 Financial risk management objectives
The Company''s corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest
rate risk and price risk), credit risk and liquidity risk.
Market Risk
The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.
A. Currency risk
(a) Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.
The carrying amounts of the company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.
(b) Foreign Currency sensitivity analysis
For the year ended March 31, 2023, every one rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Company''s incremental operating margins approximately by 0.12% (previous year 0.08%) and for every one rupee depreciation/appreciation in the exchange rate against Euro, might have affected the Company''s incremental operating margins approximately by 0.03% (previous year 0.07%).
B. Interest risk
Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates.The company''s exposure to the risk of changes in market intrerest rates relates primarily to the company''s long term debt obligations with floating interest rates.
Interest rate sensitivity analysis
For the year ended March 31, 2023, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the Company''s incremental operating margins approximately by 0.17% (previous year 0.23%).
C. Other price risks
The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company doesn''t actively trade these investments.
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has limited exposure to credit risk in respect of trade receivables. The Company''s bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilites including estimated interest payments as at March 31, 2023:
42. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES
Name of related party and nature of related party relationship (with which the company has any transaction during the year)
A. Individual owning directly or indirectly substantial interest in the voting power of the Company
T.C. Spinners Private Limited Satia Paper Mills Private Limited
YCD Industries Limited (Formerly known as Bhandari Export Industries Limited)
RYM Realtors Private Limited
Commitments for expenditure
Estimated amounts of contracts remaining to be executed on capital account, net of advances - Rs. Nil (Previous Year Nil).
45. Dividend
During the financial year 2022-23, the Board of Directors of the Company had declared and paid interim dividend of 20% each (Re. 0.20 per Equity Share of Rs. 1/- each). Further, the Board of Directors have recommended a final dividend of 20% (Re. 0.20 per Equity Share of Rs. 1/- each) for the financial year 2022-2023, subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company and is not recognised as a liability as at March 31, 2023. During the financial year 2021-22, the Board of Directors had recommended a final dividend of 20% each (Rs. 0.20 per Equity Share of f 1/-each).
46. The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (âMSMED Actâ)
48. Events after the reporting period
There were no adjusting events occurred subsequent to the balance sheet date and before date of approval of financial statements.
49. Disclosure as per Ind AS 36 ''Impairment of Assets''
The Company has reviewed the carrying amount of its tangible and intangible
assets (being a cash generating unit) with its future present value of cash flows and there has been no indication of impairment of the carrying amount of the Company''s such Assets taking consideration into external and internal sources of information.
50. Fair Value Measurement Fair Valuation Techniques and Inputs used - recurring Items
The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
50. Disclosure as per Ind AS 1 ''Presentation of financial statements'' and Disclosure as per Ind AS 8 - ''Accounting Policies, Changes in Accounting Estimates and Errors''.
(a) Changes in significant accounting estimates:
In the current financial year, to improve the appropriateness of the allocation of the deprecation expense on its property, plant and equipment over the remaining useful life of the assets, the Company has changed the estimate of residual value from 10% to 5%, which is inline with Schedule II to the Companies Act 2013. As a result of this change in estimate, the accumulated depreciation has been adjusted by Rs. 8,295.82 lacs upto March 31, 2023 and Rs. 5,903.64 lacs upto March 31, 2022 in accordance with Ind AS 8 ''Accounting Policies, Changes in Accounting Estimates and Errors''.
It is pertinent to note that this change in depreciation estimate has been applied prospectively, and prior periods have not been restated. The Company believes that this change will lead to a more appropriate allocation of depreciation expense over the remaining useful life of the assets and is consistent with its policy of continuously reviewing and updating accounting estimates as necessary.
Further, due to the higher depreciation, higher deferred tax asset is created which correspondingly reduced the tax expense for the financial year 2022-23.
(b) Certain other changes have also been made in the policies for improved disclosures. There is no impact on the financial statements due to these changes.
The Company earns a return on investment
ranging from 5.35% to 7.25% p.a. on fixed
deposit.
Reasons for variances
a. Due to the reason increase in total equity and reduction of in debts.
b. Reflects better operational performance.
c. Due to increase in revenue from operations and decrease in average inventory, in the current year.
d. During the year, there has been a reduction in average trade payables and with higher sales, material consumption for the year has also increased resulting into an increase in the trade payable turnover ratio.
52. Additional disclosures relating to the requirement of Schedule III
a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.
b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
c) 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;
i . 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
ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
d) 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;
i. 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
ii. Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
Nature of CSR activities:
Conservation of natural resources, Promotion of Education, Health care, rural development and livelihood interventions, Disaster relief, Digital Literacy amongst others.
Note: The set off available in the succeeding
years is not recognised as an asset as a
matter of prudence.
f) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search, survey or any other relevant provisions of the Income Tax Act, 1961).
g) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction of number of layers) Rules, 2017.
h) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
i) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
j) Quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
k) The Company has not carried out revaluation of items of property, plant and equipment during the year and
accordingly the disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.
l) The Company has used the borrowings from banks and financial statements for the specific purpose for which it was obtained.
m) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work in progress are held in the name of the Company as at the balance sheet date.
n) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the year ended March 31, 2023 and the year ended March 31, 2022.
52.The figures for the previous year have been reclassified / regrouped wherever necessary including for amendments relating to Schedule III of the Companies Act, 2013 for better understanding and comparability.
Mar 31, 2018
Corporate Information
Satia Industries Limited (herein after referred to as (âThe Companyâ) was incorporated on 26 November, 1980 under the Companies Act with the registration no L21012PB1980PLC004329 is presently dealing in the following business (a) Manufacturer of Writing and Printing Paper (b) Generation of Power (c) Trading activities in Cotton & Yarn, (d) Agricultural & Plantation Operations etc. The shares of the Company are listed on BSE Limited (BSE).
Application of New & Revised Ind AS
At the date of preparation of these financial statements, there were neither new Ind ASs issued nor there were any amendments issued to the existing Ind ASs, after the initial notification issued by the MCA.
1.1 Trade receivables
The average credit period on sales of goods is 60 days. No interest is charged on trade receivables.
The Company has no history of bad debts and based on historical trend the company has not provided any provision on trade receivables. The Companyâs exposure and credit worthieness of its counterparties is regularly monitored.
Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting period for which the Company has not recognised an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are still considered recoverable.
2. Financial assets: (i) Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, cheques and drafts on hand. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the balance sheet as follows:
Fixed deposits held as margin money
The amount in deposit accounts represents the restricted balance in respect of letter of credits/Bank Guarantee issued by the banks in favour of the Company.
(ii) Rights, preferences and restriction attached to 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, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The distribution will be in proportion to the number of equity shares held by the shareholders.
Term loans:
The loans due to Punjab National Bank, Central Bank of India, Indian Overseas Bank and Andhra Bank are secured by way of equitable mortgage on all present and future immovable properties, hypothecation of companyâs present and future movable assets except Vehicles which have been specifically hypothecated. The mortgages and charges referred to above rank pari-passu among the lenders. All the borrowings are personally guaranteed by the Chariman Cum Managing Director and joint managing director of the company. The Company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
The loans due to Punjab National Bank are further secured by pledge of 24 lacs equity shares of the Company.
Vehicle loans:
Vehicle loans are secured by hypothecation of vehicles acquired against such loans.
Installment for repayment of term loans due to be paid in the next year amounting Rs 4,202.36 lacs (2017- 3,892.22 Lacs, 2016 - 3, 689.95 lacs) has been treated as current liability and are not included in long term liability.
The weighted average effective interest rate on the bank loans is 10.32% per annum.
Terms of repayment:
Normal Repayment Period - 5 Years
Working capital Borrowingsâ are secured by hypothecation of all stocks of raw material, stores, work in progress finished stock and book debts in addition to personal guarantee by C.M.D & joint managing director of the company. In addition to this the working capital limits are further secured by way of second parri passu charge on all the fixed assets of the company.
The Company pays its vendors within 60 days and no interest during the year has been paid or is payable under terms of the Micro, Small and Medium Enterprises Development Act, 2006.The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Refer note 48 for information available related to Micro & Small Enterprises as defined under the MSMED ACT,2006.
Impact of changes in accounting policies
There are no changes in the accounting policies which had impact on the amounts reported for earning per share
3. Operating lease arrangements
The Company has entered into Operating leases arrangements for agriculture land and branch office with lease terms between 7 and 10 years. All operating lease contracts are for a period over 5 years. The company does not have an option to purchase the leased land at the expiry of the lease periods.
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease
4. Employee benefit plans
A. Defined Contribution Plans
The Company makes contribution towards employeesâ provident fund and employeesâ penshion scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as payments are recognized as an expense in the Profit & Loss Account on a Straight-Line basis over the lease term.
specified in the rules of the schemes, to these defined contribution schemes. The Company recognized 125.3 lacs (2016-17 -157.69 lacs) during the year as expense towards contribution to these plans.
During the year the Company has recognised the following amounts in the statement of profit and loss :-
B. Defined Benefit Plans and Other Long Term Benefits
a) Contribution to Gratuity Funds - Employeeâs Gratuity Fund.
The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is non funded. The liability for the same is recognized on the basis of actuarial valuation.
b) Leave Encashment/ Compensated Absence.
The company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves and medical leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.
These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
The most recent actuarial valuation and the present value of the defined benefit obligation were carried out as at March 31, 2018 by Ashok Kumar Garg. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
Sensitivity Analysis (Based on most likely/possible changes in assumptions used)
Gratuity
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 39.26 lacs (increase by Rs.44.84) (as at March 31, 2017: decrease by Rs. 26.46 lacs (increase by Rs.29.96 lacs)) (as at April 1, 2016: decrease by Rs. 22.08 lacs (increase by Rs.24.93 lacs)).
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 44.92 lacs (decrease by Rs. 39.81 lacs) (as at March 31, 2017: increase by Rs. 30.26 lacs (decrease by Rs. 27.03 lacs)) (as at April 1, 2016: increase by Rs. 25.55 lacs (decrease by Rs. 22.97 lacs)).
- The estimated term of the benefit obligations in case of gratuity is 13 years( As at March 31, 2017:12 years )
Leave Encashment
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 12.61 lacs (increase by Rs.14.52 lacs) (as at March 31, 2017: decrease by Rs. 11.82 lacs (increase by Rs. 13.53 lacs))
- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs.14.78 lacs (decrease by Rs. 13.03 lacs) (as at March 31, 2017: increase by Rs. 13.88 lacs (decrease by Rs. 12.30 lacs))
The estimated term of the benefit obligations in case of leave encashment is 15 years( As at March 31, 2017: 15 years )
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
There has been no change in the process used by the Company to manage its risks from prior periods.
5. Segment information
Information reported to the chief operating decision maker (CODM) i.e. Managing director for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.
Specifically, the Groupâs reportable segments under Ind AS 108 are as follows
1. Paper division
2. Yarn and cotton division
3. Co generation division
4. Agriculture division
5. Solar division
Note:
The note should state the the judgements made by management in applying the aggregation criteria. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics.
The accounting policies of the reportable segments are the same as the Companyâs accounting policies described in Note 3. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directorsâ salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
Revenue and expenses directly identifiable to the segments have been allocated to the relatively primary reportable segments.
Segment revenue and expenses which are not directly identifiable to the primary reportable segments have been disclosed under unallocable, which primarily includes interest and other income and Corporate Expenses. Other income includes interest income, export incentives Income. Corporate Expenses includes Employee staff benefit expense, Administrative expense and Depreciation expense of Corporate office.
For the purposes of monitoring segment performance and allocating resources between segments:
a) all assets are allocated to reportable segment
b) all liabilities are allocated to reportable segments other than Rs. 22261.08 (As at March 31, 2017: Rs. 15830.76) on account of share capital, other equity, deferred tax liabilities and other liabilities of corporate office.
Notes:
Capital Expenditure includes addition during the year to Fixed Assets and CWIP Geographical information:
The geographical segments considered for disclosure are based on markets , broadly as under :
1. India
2. Rest of the World
6. Financial Instruments
6.1 Capital management
The company manages itâs capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.
The capital structure of Company consist of equity and external borrowings.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows;
*Debt is defined as long-term and short-term borrowings (excluding derivatives and financial guarantee contracts). ** Equity includes all capital and reserved of the company that are managed as capital.
6.2 Financial risk management objectives
The Companyâs corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.
6.3.1 Market Risk
The Companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
There has been no change to the Companyâs exposure to market risks or the manner in which these risks are being managed and measured.
6.3.2 (a) Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Companyâs exposure to currency risk relates primarily to the Companyâs operating activities and borrowings when transactions are denominated in a different currency from the Companyâs functional currency.
The carrying amounts of the companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.
6.3.2 (b) Foreign Currency sensitivity analysis
For the year ended March 31, 2018, every one rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Companyâs incremental operating margins approximately by 0.02 % the Companyâs exposure to foreign currency changes for all other currencies is not material.And for every one rupee depreciation/appreciation in the exchange rate against Euro, might have affected the Companyâs incremental operating margins approximately by 0.03 %
6.3.3 (a) Interest rate risk management
Interest rate risk is the risk that the fair valur or future cash flows of a financial instrument will fluctuate because of change in market interest rates.The companyâs exposure to the risk of changes in market intrerest rates relates primarily to the companyâs long term debt obligations with floating interest rates.
6.3.3 (b) Interest rate sensitivity analysis
For the year ended March 31, 2018, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the companyâs increamental operating margins approximately by 0.34%
6.3.4 Other price risks
The company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The company doesnât actively trade these investments.
6.5 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.The Company has limited exposure to credit risk owing to the balance of trade receivables as explained in Note no. 14.Companyâs bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.
6.7 Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2018:
8. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES Name of related party and nature of related party relationship
A. Individual owning directly or indirectly substantial interest in the voting power of the company
T.C Spinners Pvt Ltd Satia Paper Mills Pvt. Ltd
YCD Industries Ltd (Formerly known as Bhandari Export Industries Ltd)
B. Key Management Personnel and other relatives
Dr. Ajay Satia (Chairman-cum-Managing Director)
Mr. R.K. Bhandari (Joint Managing Director)
Mr. Chirag Satia ( Director)
Mr. Hardev Singh ( Director)
Mr. J.R Sharma (Director ceased to be director as on 30.09.2017)
Mrs Bindu Satia (Wife of Dr. Ajay Satia)
Mr. Dhruv Satia (Son of Dr Ajay Satia)
Mrs Priyanka Satia (Daughter in Law of Dr. Ajay Satia)
Mrs. Renu Pahwa (Sister of Dr. Ajay Satia)
Mrs. Archana Saluja (Sister of Dr. Ajay Satia)
Mr. Anil Satia (Brother of Dr. Ajay Satia)
Mrs.Yachna Satia (Daughter of Dr. Ajay Satia)
Mr. Rajat Mehta (son in law of Dr.Ajay Satia)
Mrs.Pushpa Bhandari (Mother of Mr. R.K. Bhandari)
Mrs. Kiran Bhandari (Wife of Mr. R.K. Bhandari)
Ms.Vasudha Bhandari (Daughter of Mr. R.K. Bhandari)
Mr. Ankit Dani (Son in law of Mr. R.K Bhandari)
Mr. Vineet Bhandari (Son of R.K Bhnadari)
Satia Paper Mills (Enterprise of Mr. Dhruv Satia)
Mrs Suman Rani ( Wife of Mr. Hardev Singh)
Mr. Amit Sharma (Son of Mr. J.R Sharma)
9. Events after the reporting period
There were no adjusting events occurred subsequent to the balance sheet date and before date of approval of financial statements.
10. Approval of financial statements
The financial statements were approved for issue by the board of directors on May 30, 2018.
RECONCILIATION OF EQUITY AS PREVIOUSLY REPORTED UNDER IGAAP TO IND-AS As at April 1, 2016
11. Transition to Ind-AS
The effect of the companyâs transition to Ind AS, described in note below, is summarized in this note as follows:
(i) Transition election
(ii) Reconciliation of equity as previously reported under Indian GAAP to Ind-AS
(iii) Adjustments to the statement of cash flows.
(i) Transition election
Prior to preparation of its first Ind AS financial statements, the Companyâs financial statements were prepared in accordance with the previous GAAP. These financial statements, for the year ended March 31, 2018 are their Ind AS financial statements and have been prepared in accordance with Ind AS as issued by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015.
Accordingly, the Company has adopted all of the new and revised standards and interpretations as issued by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 that are relevant to its operations and effective as on March 31, 2018 and applied the same in preparation of these financial statements, which have been prepared to assess the impact of the transition to Ind AS on the equity of the Company.
The guidance for first time adoption of Ind AS is set out in Ind AS 101 âFirst time adoption of Indian Accounting Standardsâ. Ind AS 101 requires an entity to comply with each Ind AS effective at the reporting date for its full set of Ind AS financial statements. As a general principle, Ind AS 101 requires the standards effective at the reporting date to be applied retrospectively. However, retrospective application is prohibited in some areas; particularly where retrospective application would require judgments by the management after the outcome of the particular transaction is already known and where mandatory exceptions are available to retrospective application of certain Ind ASs (Appendix B of Ind AS 101). In addition, a number of limited optional exemptions from full retrospective application of Ind ASs are granted where the cost of compliance is deemed to exceed the benefits to the users of the financial statements.
On adoption of Ind ASs, the Other Equity of the Company have increased by Rs 847.84 lacs on transition date and as explained in part (ii) below. This note includes reconciliations as required by Ind AS 101.
The company has applied the following transition exemptions apart from mandatory exceptions in Ind-AS 101:
1. In accordance with Ind-AS transitional provisions, the company opted to consider previous GAAP carrying value of property, plant and equipment as deemed cost on transition date.
2. In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.
3. Designation of previously recognized financial instruments exemption- The Company do not have any investments in equity instruments of Companies (other than subsidiaries, joint ventures and associates) which company opted for transition option to be measured at FVOCI or at amortised cost.
4. Fair value measurement of financial assets or liabilities at initial recognition: Ind AS 109 require that all financial liabilities and assets must be recognised at fair value(adjustment of transaction costs for financial assets and liabilities not measured at fair value through Profit and Loss) with the excpetion of trade receivable.
5. Compunded financial instrument: Ind AS 32 requires compound financial instruments to be separated at their inception into equity and liability components, based on the substance of the arrangement rather than their legal form. Ind AS 32 requires convertible bonds (i.e. convertible by the holder into a fixed number of ordinary shares) and mandatorily redeemable non-cumulative preference shares with discretionary dividends to be separated into two individual equity and liability components. However, after the assessment of the financial statements there are no such compounded financials instruments identified.
6. Decommissioning liabilities included in the cost of property, plant and equipment: Under Appendix A to Ind AS 16, specified changes in a decommissioning, restoration or similar liability are added to or deducted from the cost of the asset to which it relates, and the adjusted depreciable amount of the asset is then depreciated prospectively over its remaining useful life. As per the transition provision the Company may elect not to comply with requirements of Appendix A to Ind AS 16 for changes in such liabilities that occurred before the date of transition to Ind ASs. Where this exemption is taken, the first-time adopter should measure the liability as at the date of transition to Ind ASs in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets. On the assessment of the contracts for leasehold land and other arrangement, there are no such clauses identified where liability is required to be created under Ind AS 37.
Notes:
1. Under Ind-AS dividends payable and the associated corporate dividend tax are recorded as a liability in the year in which these are declared and approved. Under perivous Indian GAAP, dividends payable are recorded as a provision in the year to which they relate.
2. Under previous Indian GAAP, the Company amortizes the processing fees over the tenure of the borrowings. Under Ind AS, these fee considered as part of the effective interest rate on the underlying borrowings.
3. Under previous Indian GAAP Biologicl assets were measured at cost. Under Ind AS, biological assets are measured at fair value less cost to sell.
4. Under Ind-AS, loans are measured at market interest rate as a result of which any employee cost which is the difference between market rate of interest and contractual interest rate is recognized over the usage pattern of the loan. Under pervious Indian GAAP such employee cost are not accounted for and interest cost is recognized based on the contractual interest rate.
5. Under Ind-AS, guarantees issued are recognized at fair value at inception and measured at the higher of the amortized value or the obligation amount in case it is probable that the guarantee amount is payable. Under previous Indian GAAP, guarantee issued are not recognized unless it is probable that the guarantee amount is payable.
6. Prior Period Adjustments is with respect to an expnese booked in FY 2016-17 which pertains to FY 2015-16. Under Ind AS such prior period items are required to be reinstated and account for in the year to which they pertains.
7. Consequential deferred tax on all the above adjustments.
8. Under previous GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognised in profit or loss.
9. Under previous GAAP actuarial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit or loss.
* Under previous GAAP income from REC has been considered as capital receipt and booked under capital reserve.
(iii) Adjustments to the statement of cash flows .
The transition from Indian GAAP to Ind-AS had no significant impact on cash flows generated by the company. Cash flows relating to interest are classified in a consistent manner as operating,investing or financing each period.
The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.
Mar 31, 2016
Corporate Information:-
Satia Industries Limited (herein after referred to as âThe Companyâ) is presently dealing in the following business
1. Manufacturer of Writing and Printing Paper
2. Generation of Power
3. Trading activities in Cotton & Yarn
4. Agricultural & Plantation Operations etc.
Segment Reporting
5. Business Segments:
Based on the guiding principles given in AS-17 âSegment Reportingâ issued by the institute of Chartered Accountants of India, the Group business segment include. Writing & Printing Paper, Power Generation Yarn Division and Agriculture Division.
6. Geographical Segments:
Since the Group activities/operations are primarily within th country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.
7. Segment Accounting Policies:
In Addison to the significant accounting policies applicable to the business segments as set out in note no.1 of âNotes to the accountsâ the accounting policies in relation to segment reporting are as under:
8. Segment Revenue
Segment revenue and expenses are directly attributable to the segments.
9. Segment Assets and Liabilities
Segment assets include all operating assets used by a segment and consists principally of operating cash, debtors inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. plincipaty of creditors and accrued liabilities.
10. Inter segment
Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.
11. information about business segments: The detailed reporting is as per annexure. The company is carrying on the agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the Inventories which will be set off against the future income under the segment In terms of the provisions of AS-17 âSegment Reportingâ the company has recognized four segments
Revenue for inter segment transactions have been recognized as below:-
12 Power
Power is charged by Cogeneration division at the rate at par with the tariff & other charges invoiced by the Punjab State Power Corporatien Ltd.
13. Steam
Steam generated by Cogeneration division is put to revenue of the Segment on the basis of cost on pro rate basis.
14. Agriculture Division
Expenses are recognized in the year of production of crop.
15. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.
16. In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.
c) However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note 17 : The loans due to PNB, CBI AND IOB are secured by the first charge by way of equitable mortgage of companyâs immovable properties, present and future, hypothecation of companyâs movable assets, present and future in their favour on parripassu basis and further personally guaranteed by the Managing Director and a director of the company.
Note 18 : The loans of PNB are further secured by pledge of 24 lacs equity shares held by the promoters Note 3 : Vehicle loans are secured by hypothecation of specific assets only.
Note 19 : Installment for repayment of term loans due to be paid in the next year amounting '' 3102.09 lacs ( PY '' 1849.73 lacs) has been treated as current liability and are not included as long term liability.
20. MSMED ACT2006
The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT,2006 is Rs. 36.33 lacs (previous year Rs. 62.55 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.
21. EMPLOYEE BENEFITS
Effective from 1st January,2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.
The following table sets out the status of the gratuity scheme plan as at 31.03.2016.
22. Table Showing Changes in Present, Value of Obligations:
23. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.
24. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 26.69 lacs (Previous year Rs 28.48 lacs) are not included in the valuation of inventory of such goods. However they said liability if provided in accounts would have no effect on the profits for the period.
25. During the period the company has made provision for Tax amounting to Rs. Nil.
26. The management of the company has not recognized any loss for impairment of any of the fixed assets of the company
27. Segment Reporting
28. Business Segments:
Based on the guiding principles given in AS-17 âSegment Reportingâ issued by the
Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, Power Generation, Yarn Division & Agriculture Division.
29. Geographical Segments:
Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment
30. Segment Accounting Policies:
In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of âNotes to the accountsâ, the accounting policies in relation to segment reporting are as under:
31. Segment Revenue and Expenses:
Segment revenue and expenses are directly attributable to the segments.
32. Segment assets and liabilities
Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.
33. Inter segment revenue:
Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.
34. Information about business segments:
The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set off against the future income under the segment.
35. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.
36. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.
37. Figures in brackets represent figures of previous year.
38. Previous Yearâs figures have been regrouped and/or re-arranged wherever considered necessary.
Mar 31, 2015
1. In the opinion of Board of Directors and to the
best of their knowledge and belief, the value on realization of Current
Assets, Loans and Advances in the ordinary course of business would not
be less than the amount at which they are stated in Balance Sheet. The
provision for all known liabilities is adequate and neither is excess
nor short of the amount reasonably necessary.
2. The liability of Excise Duty on finished goods remaining nucleated
in the factory premises and lying in stock at the end of the year
estimated at Rs 56.33 lacs (Previous year Rs 26.69 lacs) are not
included in the valuation of inventory of such goods. However they said
liability if provided in accounts would have no effect on the profits
for the period.
Earning Per Share (EPS)
Basic
Diluted
Diluted EPS is calculated after taking into consideration of potential
equity share capital.
3. During the period the company has made provision for Tax amounting
to Rs. 127.00 lacs.
4. The management of the company has not recognized any loss for
impairment of any of the fixed assets of the company
5. Depreciation
Effective from April 01, 2014, the company has with retrospective
effect changed its method of providing depreciation on fixed assets
from " Straight Line" method to them, "Written Down Value " method, at the rates keeping in view the remaining useful life as certified by the
Chartered Engineers, except the Captive Power Plants(CO-Gen Division)
where in the useful life of the assets has been taken wherever
necessary with the help of a Technical Advice keeping in view the
terms of Schedule II of Companies Act 2013. Had the company continued
to use the earlier method the depreciation would have been at a figure
6. Current Assets including advances are considered good and in view
of the management of the company to be realizable within 12 months from
the date of Balance Sheet.
7. Outstanding balances in sundry debtors, creditors & security
deposits are subject to confirmation.
8. Figures in brackets represent figures of previous year.
9. Previous Year's figures have been regrouped and/or re-arranged
wherever considered necessary.
Mar 31, 2014
1. Corporate Information:-
Satia Industries Limited formerly known as Satia Paper Mills Limited
(herein after referred to as 'The Company') is a manufacturer of
Writing and Printing Paper. The company is also engaged in generation
of power and trading activities in Cotton & Yarn.
The Company has only one class of shares referred to as equity shares
having a par value of Rs. 10/-. Each holder of equity shares is
entitled to one vote per share.
20,00,000 Shares out of the issued,subscribed and paid up share capital
were allotted as bonus shares in the last five years by capitalization
of reserves.
In the event of Liquidation of the company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
company, after distribution of all preferential amounts. However, no
such preferential amounts exist currently. The distribution will be in
proportion to the number of equity shares held by the shareholders.
2.Share Application Money
The Company has received Share Application money of Rs.300.00 Lacs (
Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the
financial year 2004-2005 and 32.55 Lacs in financial year 2005- 2006)
from promoters and associates to partly finance the project cost
approved and stipulated by Financial Institution and Bank.
During the year ended 31.03.06 the company allotted 20,00,000 Equity
shares @ Rs. 10 per share amounting to Rs.200 .00 lacs to the promoters
and their associates on preferential basis as per approval received
from SEBI and remaining share application money of Rs.100.00 lacs
against which shares will be allotted in future as permitted under the
statue. These funds were utilized in the year of receipt for purpose of
capital expenditure as per scheme approved by the financial
institutions and the terms of allotment are as below:-
No. of Balance Shares May be issued: 118003 The amount of premium: Rs.
74.74
The company has sufficient authorised share capital amount for
allotment of shares against the share application.
3. The loans are further secured by pledge of 24 lacs equity shares
held by the promoters
4. Vehicle loans are secured by hypothecation of specific assets
only.
5. Instalments for repayment of term loans due to be paid in the
next year amountng to Rs. 1397.59 lacs ( PY Rs.1538.34 lacs) has been
treated as long term liability.
6. Working capital Borrowings are secured by hypothecation of all
stocks of raw material stores,work in progress finished stock and book
debts,personal guarantee by M.D & a Director of the company.In addition
to this the working capital limits are further secured by way of second
parri passu charge on all the fixed assets of the company.
7. The loan due to PNB is further secured by pledge of 24 lacs
equity shares held by the promoters
8. Exceptional Items
There were no exceptional Items during the year.
9. Extraordinary Items
In includes prior period expenses.
10. Contingent Liabilities and Commitments (to the extent not provided
for)
Year Ended Year Ended
Particulars As On As On
31March,2014 31March,2013
Bank Guarantee 540.94 81.14
Unexpired Letter of Credit 1681.33 1962.53
(Opened by Bank)
(Material received against LCs has
been accounted for and credited to
suppliers account)
Excise & Customs duty demand 3.83 3.83
in dispute
Sales Tax demand in dispute 3.86 3.86
Customs Duty in respect of 73.72 53.27
Export Obligation
Corporate Guarantee in favour 1210.00 490.00
of Uco Bank on
Behalf of T.C Spinners Pvt.Ltd
(Outstanding balance Rs. 838.65)
11. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.
Nature of Relationship Name of Related Party
Individual Owing directly or M/s T.C. Spinners Pvt. Ltd.
indirectly substantial interest
in the voting power of the company.
Associates
Key Management Personnel Dr. Ajay Satia
Mr. R.K. Bhandari
Mr. Janak Raj Sharma
Relative of key Management(Relevant Mrs Bindu Satia (Wife of Dr.
Personnel) Ajay Satia)
Mr. Anil Satia (Brother of Dr.
Ajay Satia)
Mrs. Saloni Satia( Wife of Mr
Anil Satia)
Smt.Krishna Satia (Mother of Dr.
Ajay Satia)
Mrs. Renu Pahwa (Sister of Dr.
Ajay Satia)
Mr. Rajat Mehta (son in law of
Dr.Ajay Satia)
Ms. Yachna Satia (Daughter of
Dr. Ajay Satia)
Mr. Chirag Satia (Son of Dr.
Ajay Satia)
Mr. Kulbir Pahwa (Sisters
Husband of Dr. Ajay Satia)
Mr. Vinod Saluja (Sisters
Husband of Dr. Ajay Satia)
Mrs. Archana Saluja (Sister of
Dr. Ajay Satia)
Mrs.Pushpa Bhandari (Mother
of Mr. R.K. Bhandari)
Mrs. Kiran Bhandari (Wife of
Mr. R.K. Bhandari)
Ms. Vasudha Bhandari (Daughter
of Mr. R.K. Bhandari)
Mr. Amit Sharma (Son of Mr.
Janak Raj. Sharma)
Mr. Dhruv Satia (Son of Dr Ajay
Satia)
12. MSMED ACT2006
The company has been obtaining confirmation from suppliers who have
registered themselves under the Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED ACT, 2006).Based on the information
available with the company, balance due to Micro & Small Enterprises as
defined under the MSMED ACT,2006 is Rs. 35.73 lacs (previous year
Rs.24.88 lacs). Further no interest during the year has been paid under
the terms of the MSMED Act, 2006.
13. EMPLOYEE BENEFITS
Effective from 1st January,2007 the company adopted Accounting Standard
15 (revised 2005) on Employees Benefits issued by the Institute of
Chartered Accountants of India.
14. In the opinion of Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business would not be less than
the amount at which they are stated in Balance Sheet. The provi- sion
for all known liabilities is adequate and neither is excess nor short
of the amount reasonably necessary.
15. The liability of Excise Duty on finished goods remaining uncleared
in the factory premises and lying in stock at the end of the year
estimated at Rs 26.69 lacs (Previous year Rs.28.48 lacs) are not
included in the valuation of inventory of such goods. However the said
liability if provided in accounts would have no effect on the profits
for the period.
16. During the period the company has made provision for Tax amounting
to Rs. 710 lacs.
17. The management of the company has not recognised any loss for
impairement of any of the fixed of the company.
18. The management of the company has recognised the loss of advance
of Rs.8.52 crores given to PSIDC being irrecoverable.
19. Depreciation
The management has decided to account for depreciation during the year
on the basis of remaining useful life of the fixed assets as determined
by an independent agency. Consequently the depreciation charge for the
current year is higher.
20. Segment Reporting
A. Business Segments:
Based on the guiding principles given in AS-17 "Segment Reporting"
issued by the Institute of Chartered Accountants of India, the Groups
business segment include: Writing & Printing Paper, power generation
and yarn division.
B. Geographical Segments:
Since the Group activities/operations are primarily within the country
and considering the nature of products it deals in, the risks and
returns are same and as such there is only one geographical segment
C. Segment Accounting Policies:
In addition to the significant accounting policies applicable to the
business segments as set out in note no.1 of "Notes to the accounts",
the accounting policies in relation to segment reporting are as under:
a) Segment Revenue and expenses:
Segment revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities
Segment assets include all operating assets used by a segment and
consist prin- cipally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and ac- crued
liabilities.
c) Inter segment revenue:
Inter segment revenue between operating segments are accounted for at
market price. These transactions are eliminated in consolidation.
d) Information about business segments: The detailed reporting is as
per annexure. During the year company has started a new segment for
agriculture operations of plantation. The cost incurred in this segment
has been treated as prepaid expenses and included in the inventories
which will be set off against the future income under the segment.
21. Current Assets including advances are considered good and in view
of the management of the company to be realizable within 12 months from
the date of Balance Sheet.
22. Outstanding balances in sundry debtors, creditors & security
deposits are subject to confirmation.
23. Figures in brackets represent figures of previous year.
24. Previous Year's figures have been regrouped and/or re-arranged
wherever considered necessary.
Mar 31, 2013
1. Corporate Information:-
Satia industries Limited formerly known as Satia Paper Mills Limited
(herein after referred to as The Company') is a manufacturer of Writing
and Printing Paper. The company is also engaged in generation of power
and trading activities in Cotton & Yarn.
2. The Company has only one class of shares referred to as equity shares
having a par value of Rs. 10/-, Each holder of equity shares is
entitled to one vote per share.
20,00,000 Shares out of the issued,subscribed and paid up share capital
were allotted as bonus (20,00,000) shares in the last five years by
capitalization of Reserves.
In the event of Liquidation of the company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
company, after distribution of all preferential amounts. However, no
such preferential amounts exist currently. The distribution will be in
proportion to the number of equity shares held by the shareholders.
3. Share Application Money
The Company has received Share Application money of Rs.300.00 Lacs (Rs.
175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial
year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from
promoters and associates to partly finance the project cost approved
and stipulated by Financial Institution and Bank. During the year ended
31.03.06 the company has allotted 20,00,000 Equity shares @10 per
shares amounting to Rs.200.00 lacs to the Promoters and their
associates on preferential basis as per approval received from SEBI and
remaining share application money of Rs. 100.00 lacs against which
shares will be allotted in future as permitted under the statue. These
funds were utilized in the year of receipt for purpose of capital
expenditure as per scheme approved by the financial institutions and
the terms of allotment are as below:-
No. of Balance Shares Proposed to be issued: 140357 The amount of
premium: Rs. 61.25
The company have sufficient authorised share capital amount for
allotment of shares against the share application.
4. Contingent Liabilities and Commitments to the extent not provided
for)
Year Ended Year Ended
Particulars As On As On
31 March,2013 31March,2012
Bank Guarantee 81.14 227.98
Unexpired Letter of Credit 1962.53 1239.09
(Opened by Bank)
(Material received against LCs
has been accounted for and
credited to suppliers account)
Excise & Customs duty demand in dispute 3.83 4.40
Sales Tax demand in dispute 3.86 3.86
Customs Duty in respect of Export Obligation 53.27 22.78
Corporate Guarantee in favour of Uco Bank on 490.00 490.00
Behalf of T.C Spinners Pvt.Ltd(Outstanding
balance Rs. 204.83)
5. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.
Nature of Relationship Name of Related Party
Individual Owing directly or M/s T.C. Spinners Pvt. Ltd.
indirectly substantial interest
in the voting power
of the company.
Key Management Personnel Mr. Ajay Satia
Mr. R.K. Bhandari
Mr. Janak Raj Sharma
Relative of key Management(Relevant Mrs Bindu Satia (Wife of Sh.
Personnel) Ajay Satia)
Mr. Anil Satia (Brother of Sh.
Ajay Satia)
Mrs Saloni Satia( Wife of Sh
Anil Satia)
Smt.Krishna Satia (Mother of
Sh. Ajay Satia)
Mrs. Renu Pahwa (Sister of Sh.
Ajay Satia)
Ms Yachna Satia (Daughter of
Sh. Ajay Satia)
Mr. Chirag Satia (Son of Sh.
Ajay Satia)
Mr. Kulbir Pahwa (Sisters
Husband of Dr. Ajay Satia)
Mr. Vinod Saiuja (Sisters
Husband of Dr. Ajay Satia)
Mrs. Archana Saiuja (Sister
of Dr. Ajay Satia)
Mrs. Pushpa Bhandari (Mother
of Sh. R.K. Bhandari)
Mrs. Kiran Bhandari (Wife of
Sh. R.K. Bhandari)
Ms. Vasudha Bhandari (Daughter
of Sh. R.K. Bhandari)
Mr. Amit Sharma (Son of Sh.
Janak Raj. Sharma)
Mr. Dhruv Satia (Son of
Dr Ajay Satia)
6. MSMED ACT2006
The company has been obtaining confirmation from suppliers who have
registered themselves under the Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED ACT, 2006). Based on the information
available with the company, balance due to Micro & Small Enterprises as
defined under the MSMED ACT, 2006 is Rs. 24.88 lacs (previous year Rs.
20.28 lacs). Further no interest during the year has been paid under
the terms of the MSMED Act, 2006.
7. CER/VER/REC ACCOUNTING
Carbon Emission Reductions (CER), Voluntary Emission Reductions (VER)
and Renewable Energy Certificates have been accounted for on accrual
basis against the Clean Development Mechanism registered (CDM) project
with the United Nations Framework Convention on Climate Change
(UNFCCC).
8. EMPLOYEE BENEFITS
Effective from 1st January, 2007 the company adopted Accounting
Standard 15 (revised 2005) on Employees Benefits issued by the
Institute of Chartered Accountants of India.
9. In the opinion of Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business would not be less than
the amount at which they are stated in Balance Sheet. The provision for
all known liabilities is adequate and neither is excess nor short of
the amount reason- ably necessary.
10. The liability of Excise Duty on finished goods remaining uncleared
in the factory premises and lying in stock at the end of the year
estimated at Rs 28.48 lacs (Previous year Rs.22.26 lacs) are not
included in the valuation of inventory of such goods. However the said
liability if provided in accounts would have no effect on the profits
for the period.
11. During the period the company has made provisions for Minimum
Alternative Tax amounting to Rs 386 Lacs against which the Company is
entitled to MAT Credit entitlment of 386 lacs. The managemant of the
Company has not recognised any loss for imparcment of any of the fixed
of the Company.
12. Segment Reporting
A. Business Segments:
Based on the guiding principles given in AS-17 "Segment Reporting"
issued by the Institute of Chartered Accountants of India, the Groups
business segment include: Writing & Printing Paper, power generation
and yarn division.
B. Geographical segments:
Since the Group activities/operations are primarily within the country
and considering the nature of products it deals in, the risks and
returns are same and as such there is only one geographical segment.
C. Segment Accounting Policies:
In addition to the significant accounting policies applicable to the
business segments as set out in note no.1 of "Notes to the accounts",
the accounting policies in relation to segment reporting are as under:
a) Segment Revenue and expenses:
Segment revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities
Segment assets include all operating assets used by a segment and
consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued
liabilities.
c) Inter segment revenue:
Inter segment revenue between operating segments are accounted for at
market price. These transactions are eliminated in consolidation.
d) Information about business segments:
The detailed reporting is as per annexure. During the year company has
started a new segment for agriculture operations of plantation. The
cost incurred in this segment has been treated as prepaid expenses and
included in the inventories which will be set of against the future
income under the segment.
13. Current Assets including advances are considered good and in view
of the management of the company to be realizable within 12 months from
the date of Balance Sheet.
14. Outstanding balances in sundry debtors, creditors & security
deposits are subject to confirmation.
15. Figures in brackets represent figures of previous year.
16. Previous Year's figures have been regrouped and/or re-arranged
wherever considered necessary. Figures have been rounded off to the
nearest rupee.
Mar 31, 2012
1. Nature of Operations:-
Satia Industries Limited formerly known as Satia Paper Mills Limited
(herein after referred to as The Company') is a manufacturer of Writing
and Printing Paper. The company is also engaged in generation of power
and trading activities in Cotton & Yarn.
2. Share Application Money
The Company has received Share Application money of Rs.300.00 Lacs (
Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the
financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006)
from promoters and associates to partly finance the project cost
approved and stipulated by Financial Institution and Bank. During the
year ended 31.03.06 the company has allotted 20,00,000 Equity shares @
10 per shares amounting to Rs.200 .00 lacs to the and asso- ciates on
preferential basis as per approval received from SEBI and remaining
share applica- tion money of Rs.100.00 lacs against which shares will
be allotted in future as permitted under the statue. These funds were
utilized in the year of receipt for purpose of capital expenditure as
per scheme approved by the financial institutions and the terms of
allotment are as below:-
No. of Balance Shares Proposed to be issued: 174322 The amount of
premium: Rs. 47.36
The company have sufficient authorised share capital amount for
allotment of shares against the share application.
3. Contingent Liabilities and Commitments to the extent not provided
for)
Year Ended Year Ended
Particulars As On As On
31 March,2012 31 March,2011
Bank Guarantee 227.98 721.97
Unexpired Letter of Credit 1239.09 1129.02
(Opened by Bank)
(Material received against
LCs has been accounted
for and credited to suppliers
account)
Excise & Customs duty demand 4.40 4.40
in dispute
Sales Tax demand in dispute 3.86 3.86
Customs Duty in respect of 22.78 0.12
Export Obligation
Corporate Guarantee in favour 490.00 490.00
of Uco Bank on
Behalf of T.C Spinners Pvt. Ltd
(Outstanding balance Rs. 287.92)
4. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.
Nature of Relationship Name of Related Party
Individual Owing directly or M/s T.C. Spinners Pvt. Ltd.
indirectly substantial interest
in the voting power
of the company.
Key Management Personnel Mr.Ajay Satia
Mr. R.K. Bhandari
Mr. Janak Raj Sharma
Relative of key Management Mrs Bindu Satia (Wife of Sh.
(Relevant Personnel) Ajay Satia)
Mr. Anil Satia (Brother of Sh.
Ajay Satia)
Mrs Saloni Satia( Wife of Sh Anil
Satia)
Smt.Krishna Satia (Mother of Sh.
Ajay Satia)
Mrs. Renu Pahwa (Sister of Sh.
Ajay Satia)
Ms Yachna Satia (Daughter of Sh.
Ajay Satia)
Mr. Chirag Satia (Son of Sh. Ajay
Satia)
Mr.Kulbir Pahwa (Sisters Husband
of Dr. Ajay Satia)
Mr. Vinod Saluja (Sisters Husband
of Dr. Ajay Satia)
Mrs. Archana Saluja (Sister of Dr.
Ajay Satia)
Mrs.Pushpa Bhandari (Mother of Sh.
R.K. Bhandari)
Mrs. Kiran Bhandari (Wife of Sh.
R.K. Bhandari)
Ms.Vasudha Bhandari (Daughter of
Sh. R.K. Bhandari)
Mr. Amit Sharma (Son of Sh. Janak
Raj. Sharma)
Mr. Dhruv Satia (Son of Dr Ajay
Satia)
5. MSMED ACT2006
The company has been obtaining confirmation from suppliers who have
registered themselves under the Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED ACT, 2006).Based on the information
available with the company, balance due to Micro & Small Enterprises as
defined under the MSMED ACT, 2006 is Rs. 20.28 lacs (previous year Rs.
37.84lacs). Further no interest during the year has been paid under the
terms of the MSMED Act, 2006.
6. CER/VER ACCOUNTING
Carbon Emission Reductions (CER) and Voluntary Emission Reductions
(VER) have been accounted for on accrual basis against the Clean
Development Mechanism (CDM) project registered with the United Nations
Framework Convention on Climate Change (UNFCCC).
7. EMPLOYEE BENEFITS
Effective from 1st January, 2007 the company adopted Accounting
Standard 15 (revised 2005) on Employees Benefits issued by the
Institute of Chartered Accountants of India.
The following table sets out the status of the gratuity scheme plan as
at 31.03.2012.
8. In the opinion of Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business would not be less than
the amount at which they are stated in Balance Sheet. The provision for
all known liabilities is adequate and neither is excess nor short of
the amount reasonably necessary.
9. The liability of Excise Duty on finished goods remaining uncleared
in the factory premises and lying in stock at the end of the year
estimated at Rs 22.26 lacs (Previous year Rs.28.64 lacs) are not
included in the valuation of inventory of such goods. However the said
liability if provided in accounts would have no effect on the profits
for the period.
Diluted EPS is calculated after taking into consideration of potential
equity share capital. The com- pany proposes to issue 174322 nos. of
equity shares to promoters and associates (calculated on basis of book
value of equity shares as on 31.03.12) under obligation to financial
institutions and banks as per scheme sanctioned by financial
institution and bank.
10. During the period the company has made provision for Tax amounting
to Rs 100,29 Lacs.
11. Segment Reporting
A. Business Segments:
Based on the guiding principles given in AS-17 "Segment Reporting"
issued by the Institute of Chartered Accountants of India, the Groups
business segment include: Writing & Printing Paper, power generation
and yarn division.
B. Geographical segments:
Since the Group activities/operations are primarily within the country
and considering the nature of products it deals in, the risks and
returns are same and as such there is only one geographical segment.
C. Segment Accounting Policies:
In addition to the significant accounting policies applicable to the
business segments as set out in note no.1 of "Notes to the accounts",
the accounting policies in relation to segment reporting are as under:
a) Segment Revenue and expenses:
Segment revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities
Segment assets include all operating assets used by a segment and
consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued
liabilities.
c) Inter segment revenue:
Inter segment revenue between operating segments are accounted for at
market price. These transactions are eliminated in consolidation.
d) Information about business segments:
12. Current Assets including advances are considered good and in view
of the management of the company to be realizable within 12 months from
the date of Balance Sheet.
13. Outstanding balances in sundry debtors, creditors & security
deposits are subject to confirmation.
14. Figures in brackets represent figures of previous year.
15. Previous Year's figures have been regrouped and/or re-arranged
wherever considered necessary. Figures have been rounded off to the
nearest rupee.
Mar 31, 2011
1. Nature of Operations:-
Satia Industries Limited formerly known as Satia Paper Mills Limited
(herein after referred to as 'The Company') is a manufacturer of
Writing and Printing Papers.
2. Estimated amount of contract remaining to be executed on capital
account and not provided for net of advance Rs. 1177.65 Lacs (previous
year Rs. 713.62 Lacs).
3. Contingent liabilities not provided for in respect of:
a) Bank Guarantee Rs. 721.97 Lacs (P.Y. Rs. 1386.54 Lacs)
b) Unexpired Letter of Credit: Rs. 1129.62 (P.Y. Rs.427.67 Lacs.)
However the company has accounted for the materials received against
the LCs by way of credit to the account of the party.
c) Excise & custom duty demands in dispute Rs. 4.40 (P.Y. Rs.4.52 Lacs)
d) Sales Tax demand in dispute Rs 3.86 lacs (P.Y.Rs.3.86 Lacs)
e) Customs Duty in respect of Export Obligation 0.12 (P.Y. Rs.6.33)
f) Corporate Guarantee Rs.490 lacs ( P.Y. 490 Lacs) in favour of Uco
Bank on behalf of T.C. Spinners Pvt. Ltd., Lalru (Outstanding Balance
Rs. 374.25 lacs).
4. The company has been obtaining confirmation from suppliers who have
registered themselves under the Micro, Small & Medium Enterprises
Development Act, 2006 (MSMED ACT, 2006). Based on the information
available with the company, balance due to Micro & Small Enter- prises
as defined under the MSMED ACT, 2006 is Rs. 37.84 lacs (previous year
Rs. 20.22 lacs). Further no interest during the year has been paid
under the terms of the MSMED Act, 2006.
5. Carbon Emission Reductions (CER) and Voluntary Emission Reductions
(VER) has been ac- counted for on accrual basis against the Clean
Development Mechanism (CDM) project registered with the United Nations
Framework Convention on Climate Change (UNFCCC).
6. Employee Benefits
Effective from 1st January, 2007 the company adopted Accounting
Standard 15 (revised 2005) on Employees Benefits issued by the
Institute of Chartered Accountants of India.
The following table sets out the status of the gratuity scheme plan as
at 31.03.2011.
7. In the opinion of Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business would not be less than
the amount at which they are stated in Balance Sheet. The provision for
all known liabilities is adequate and neither is excess nor short of
the amount reasonably necessary.
8. The liability of Excise Duty on finished goods remaining uncleared
in the factory premises and lying in stock at the end of the year
estimated at Rs 28.64 lacs (Previous year Rs.15.25 lacs) are not
included in the valuation of inventory of such goods. However the said
liability if pro- vided in accounts would have no effect on the profits
for the period.
9. The Company has received Share Application money of Rs.300.00 Lacs
(Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the
financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006)
from promoters and associates to partly finance the project cost
approved and stipulated by Financial institutions and bank. During the
year ended 31.03.06 the company has allotted 20,00,000 equity shares @
10 per shares amounting to Rs.200 .00 lacs to the promoters and
associates on preferential basis as per approval received from SEBI and
remaining share application money of Rs. 100.00 lacs against which
shares will be allotted in future as permitted under the statue. These
funds were utilized in the year of receipt for purpose of capital
expenditure as per scheme approved by the financial institutions and
banks.
10. Disclosure requirement as per AS-18, on related party disclosure:-
Nature of Relationship Name of Related Party
Individual Owing directly or M/s T.C. Spinners Pvt. Ltd.
indirectly a substantial
interest in the voting
power of the company
Key Management Personnel Mr.Ajay Satia
Mr. R.K. Bhandari
Mr. Dhruv Satia
Mr. Janak Raj Sharma
Relative of key Management Mrs Bindu Satia (Wife of Sh. Ajay
(Relevant Personnel) Satia)
Mr. Anil Satia (Brother of Sh. Ajay
Satia)
Mrs Saloni Satia( Wife of Sh Anil
Satia)
Smt.Krishna Satia (Mother of Sh. Ajay
Satia)
Mrs. Renu Pahwa (Sister of Sh. Ajay
Satia)
Ms Yachna Satia (Daughter of Sh. Ajay
Satia)
Mr. Chirag Satia (Son of Sh. Ajay
Satia)
Mr.Kulbir Pahwa (Sisters Husband of
Dr. Ajay Satia)
Mr. Vinod Saluja (Sisters Husband of
Dr. Ajay Satia)
Mrs. Archana Saluja (Sister of Dr.
Ajay Satia)
Mrs.Pushpa Bhandari (Mother of Sh.
R.K. Bhandari)
Mrs. Kiran Bhandari (Wife of Sh.
R.K. Bhandari)
Ms.Vasudha Bhandari (Daughter of Sh.
R.K. Bhandari)
Mr. Amit Sharma ( Son of Sh. Janak
Raj. Sharma)
Transaction with parties as listed above during the period under
consideration:
11. During the period the company has made provision for tax amounting
to Rs 149.06 lacs under Minimum Alternative Tax. In view of the
improving business conditions and requisite addition to the Plant &
Machinery, the Management is of the opinion that the company would be
able to generate adequate profits to claim credit of tax paid under Mat
as per the provisions of income Tax Act. Accordingly the tax credit has
been accounted for though part payment of the tax liability under MAT
is yet to be made.
12. Segment Reporting
A. Business Segments:
Based on the guiding principles given in AS-17 "Segment Reporting"
issued by the Institute of Chartered Accountants of India, the Groups
business segment include: Writing & Print- ing Paper, power generation
and yarn division.
B. Geographical segments:
Since the Group activities/operations are primarily within the country
and considering the nature of products it deals in, the risks and
returns are same and as such there is only one geographical segment.
C. Segment Accounting Policies:
In addition to the significant accounting policies applicable to the
business segements as set out in note no.2 of schedule no. 18 "Notes to
the accounts", the accounting policies in relation to segment reporting
are as under:
a) Segment Revenue and expenses:
Segment revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities
Segment assets include all operating assets used by a segment and
consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provi- sions which are reported as direct
offsets in the balance sheet. Segment liabilities in- clude all
operating liabilities and consist principally of creditors and accrued
liabilities.
c) Inter segment revenue:
Inter segment revenue between operating segments are accounted for at
market price. These transactions are eliminated in consolidation.
d) Information about business segments:
13. Outstanding balances in sundry debtors, creditors & security
deposits are subject to confirmation.
14. Figures in brackets represent figures of previous year.
15. Previous Year's figures have been regrouped and/or re-arranged
wherever considered necessary. Figures have been rounded off to the
nearest rupee.
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
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Satia Industries Ltd. Financial Data
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Satia Industries Ltd. Corporate Announcements
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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
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