Terms and rights attached to equity shares
The company has issued only one class of equity shares having a par value of t 10 per share. Each holder of equity shares is entitled to vote per share. The company declares and pays dividend if any, in Indian Rupees. The dividend proposed by the Board of Directors Is subject to approval of the shareholders In the ensuing Annual General Meeting.
In tho event of liquidation of the company, tha holders of equity shares will bo entitled to receive remaining assets of the company, aftor distribution of all the preferential amount. The distribution will bo In proportion to tho number of oquity shares held by the shareholder.
Nature & Purpose of the Reserve:
(a) Capital reserve: Capital Redemption reserve Is a statutory, non-distributablc reserve created on account of redemption of redeemable preference shares as per the provisions of Companies Act. 2013 and will he utilised accordingly.
(b) General reserve: The General reserve is created by way of transfer of profits from retained earnings for appropriation purposes. This reserve is utilised in accordance with the provisions of the Companies Act. 2013.
(c ) Securities premium: Securities premium Is credited when shares are issued at premium. This will be utilised in accordance with the provisions of the Companies Act. 2013.
(d) Retained earnings: The balance consists of surplus retained from earned profits after payment of dividends and tax thereon. Actuarial gains and losses for defined benefit plans are recognised through OCI in the period In which they occur. Re>measurements arc not rc-classificd to the statement of profit and loss in subsequent period.
(c) Other Comprehensive Income: Other comprehensive income represents balance arising on account of changes in fair value of equity instruments carried at fair value net of tax through other comprehensive income.
Risks associated with plan provision.
The Group I. exposed to number of risks In die defined benefit plans. Most significant risks pertaining to defined benefit plans and managements esdmadon of die Impact. If diem, risks
Salary growth risk
The present value of the defined benefit plan liability Is calculated by reference to the fiitutr solar,., of plan pardclpants. An Increase In die s.l.iy of die plan pattlcip.nts will Increase die ptan liability.
Interest rate risk
A decrease in interest rate In future years will increaso the plan liability.
Life expectancy risk
participants wl^mcrcase^InTplan^Ui^bty11'1 15 ca'ailatccl reference lo the belt estimate of mortshry ol plan participants both during andatthcendof the employment An Increase In the life expectancy of the plan
Withdrawals Risk
Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuadons can Impact plan's liability.
Performance obligation
Information about the Company's performance obligations arc summarised below
a) Income from Sale of Goods
considerations, which are estimated and recognized only to the extent that It Is highly probable that a significant reversal In the amount of cumulative revenue recognized will not occur.
b) Income from Rendering of Services
The Company recognizes revenue from rendering of services over timo. in accordance witHnd AS 1 IS - Revenue from Contracts with Customers
A) Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management Is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support Its business and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it In light of changes in economic conditions or Its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividen payment to shareholders, return capital to shareholders or Issue new shares. The Company monitors capital using a gearing ratio and includes within net debt. Interest bearing loans and borrowings less cash and short term deposits (including other bank balance).
B) Financial risk management Financial Risk Management
The Company's principal financial liabilities comprise Borrowings, trade payables and other payables. The main purpose of these financial liabilities Is to finance the Company's operations. The Company's principal financial assets include trade & other receivables, cash & cash Equivalent. Investment & other assets.
Company is exposed to following risk from the use of its financial instrument:
(i) Credit Risk (il) Liquidity Risk (ill) Market Risk (iv) Interest Rate Risk
The Company's Financial Risk Management is an integral part of how to plan and execute Its business strategics. The Company's financial risk management Is set by die Managing Board.
(i) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial Instrument fails to meet Its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial Institutions.
Provision for Expected Credit or Loss
Financial assets for which loss allowance is measured using 12 month expected credit losses
The Company has assets where the counter-parties have sufficient capacity to meet Ihc obligations and where (ho risk of default Is very low. Accordingly, no loss allowance for Impairment has been recognised.
(b) Financial assets for which loss allowance is measured using life line expected credit losses
The Company provides loss allowance on trade receivables using life nine expected credit loss and as per simplified approach.
Interest rate risk arises from the sensitivity of financial assets and liabilities to changes In market rate, of Interest
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