1) Working Capital Facilities - Axis Bank Limited
Working Capital Facilities From Axis Bank Limited is secured by Primary and Collateral Securities as per below:-
Primary Security
i) Hypothecation of entire current assets of the company (Present and future).
ii) Hypothecation of movable fixed assets (other than vehicle financed by other banks/NBFC) (both present and future of the company).
Collateral Security
i) Equitable Mortgage of land situated at New Block No. 497 at Mouje Bhoyan-Moti, Taluka Kalol admeasuring 19781 sq mtrs. In the name of M/s. Vasundhara Seamless Stainless Tubes Private Limited.
ii) The above credit facilities are further secured by personal guarantees of Mr. Chandraprakash B. Chopra and Corporate guarantee of M/s. Vasundhara Seamless Stainless Tubes Private Limited.
Rate of Interest
Interest rate on above short term credit facilities for Cash Credit is at 9.25% p.a. (i.e. 2.75% above Repo 6.50 % p.a.) charged by Axis
Bank and on Packing Credit Limit at 9.00% (i.e 2.50% above Repo 6.50% p.a.) As per sanction letter dated 10.01.2025.
As per Actuarial Valuation Report, the company has recognised as an expenses in profit and loss account in respect of defined contribution plan ' 2.64 Lakhs (P.Y ' 2.68 Lakhs) administrated by government.
Defined benefit plan and long term employment benefit Defined Benefit Plan (Gratuity)
The company has a defined benefit gratuity plan. Every employee who has completed five years and more service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance company in the form of qualifying insurance policy.
38. Appropriateness of Current and Non-Current Classification
"For the purpose of current/non-current classification of assets and liabilities, the company has ascertained its normal operating cycle as twelve months. This is based on the nature of business and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.
The classification of assets and liabilities has been done on the basis of documentary evidences. Where conclusive evidences are not available, the classification has been done on the basis of management's best estimate of the period in which the assets would be realized or the liabilities would be settled. We have evaluated the responsibility of the management's estimate."
39. Event Occurring After Balance Sheet before date of signing of report :-
There is no significant subsequent event that would require adjustments or disclosure in the financial statements as on the balance sheet date.
40. The financial statements of the company for the year ended March 31, 2025 haven been reviewd by the audit committee and approved by the Board of Directors in its meeting held on 15th May, 2025.
41. Previous year's compiled figures have been regrouped, reclassified and rearranged wherever necessary for proper presentation. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year. Figures have been rounded off to nearest of Lakhs.
42. Balances of Trade Payables & Receivables/Payables to/from various parties/authorities, Loans & advances are subject to confirmation from the respective parties, and necessary adjustments if any, will be made on its reconciliation.
43. In the Opinion of the Board of Directors the aggregate value of current assets, loans and advances on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.
53. Financial Risk Management Objectives & Policies:
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The company's financial risk management policy is set by the Managing Board. The Company's principal financial liabilities, other than derivatives, comprise borrowings and trade & other payables. The main purpose of these financial liabilities is to finance the Company's operations and to support its operations. The Company's principal financial assets include Investments, loans given, trade and other receivables and cash & short-term deposits that derive directly from its operations. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities.
The company has exposure to the following risks arising from financial instruments: -
(i) Market Risk
(a) Currency Risk
(b) Interest Rate Risk
(c) Commodity Risk
(d) Equity Risk
(ii) Credit Risk
(iii) Liquidity Risk
Risk Management Framework
The Company's activities expose it to variety of financial risks, including market risk, credit risk and liquidity risk. The Company's primary risk management is to minimize potential adverse effects of risk on its financial performance. The company's risk management assessment policies and processes are established to identify and analyze the risk faced by the company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company's Activity. The Board of Directors and Audit Committee are responsible for overseeing these policies and processes.
In order to minimize any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency exposures. Derivatives are used exclusively for hedging purposes and not as trading/speculative instruments.
(i) Market Risk:-
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices, commodity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.
The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss of the company, where any transactions has more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.
Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risk primarily relates to fluctuations in U.S. Dollar against the respective functional currency (INR) of Camex Limited.
The company, as per its risk management policy, uses its foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The company does not use derivative financial instruments for trading or speculative purpose.
Exposure to Currency Risk
Refer Note 52(c) for foreign currency exposure as at March 31, 2025 and March 31, 2024 (Hedge Accounting).
Sensitivity Analysis
A 1% strengthening/weakening of the respective foreign currency with respect to functional currency of Company would result in increase or decrease in profit or loss as shown in table below. The following analysis has been worked out based on the exposures as of the date of statements of financial position.
(b) Interest Rate Risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company's exposure to market risk for changes in interest rates relates to borrowings from financial institutions. In order to optimize the company's position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.
The company does not have interest rate linked financial instrument which is subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates. Refer Note 18 and 21 for interest rate profile of the Company's interest-bearing financial instrument at the reporting date.
(c) Commodity Risk
The prices of Dyes, Chemicals, Metal and others are subject to wide fluctuations due to unpredictable factors such as quality, Purity, Thickness, Market Competition, Government Policies etc. During its ordinary course of business, the value of the Company's open sales and purchases commitments and inventory of raw material changes continuously in line with movements in the prices of the underlying commodities. To the extent that its open sales and purchases commitments do not match at the end of each business day, the Company is subjected to price fluctuations in the commodities market.
(d) Equity Risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities. The fair value of some of the Company's investments in Fair value through profit and loss account, securities exposes the Company to equity price risks. However the company has not invested in investment in such securities which are subject to market risk. Hence the company is not exposed to Equity Risk.
(ii) Credit Risk
Credit risk arises from the possibility that a customer or counter party may not be able to settle their contractual obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is significant increase in credit risk the company compares the risk of a default occurring and the asset at the reporting date with the risk of default as the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i Actual or expected significant adverse changes in business.
ii Actual or expected significant changes in the operating results of the counterparty.
iii Financial or economic conditions that are expected to cause a significant change to the counter Party's ability to mere it's obligation
iv Significant increase in credit risk on other financial instruments of the same counterparty.
v Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements.
A. Trade and Other Receivables: -
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, credit agency information, industry information and in some cases bank references. Sale limits are established for each customer and reviewed periodically.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, as per management perceptions, loss on collection of receivable is not material hence no additional provision considered.
B. Cash and Cash Equivalents
The Company holds cash and cash equivalents with credit worthy banks and financial institutions of '238.27 Lacs as at March 31, 2025 ['914.93 Lacs as at March 31, 2024]. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good (Refer Note No. - 10 to the financial statements).
C. Derivatives
The derivatives are entered into with credit worthy banks and financial institution on counterparties. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.
D. Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties.
Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash flows.
The Company has obtained fund and non-fund based working capital loan from various banks. The Company also constantly monitors various funding options available in the debt and capital markets with a view to maintaining financial flexibility.
As of March 31, 2025, the Company has No Working Capital Borrowing. [As of March 31, 2024, the Company has No Working Capital Borrowing]
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 optimise return to our shareholders through continuing growth. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and short-term deposits (including other bank balance).
54 Disclosures pursuant to Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers (1) Disaggregation of revenue
The Company believes that the information provided under note 24, Revenue from Operations is sufficient to meet the disclosure objectives with respect to disaggregation of revenue under Ind AS 115, Revenue from Contracts with Customers.
55. Exceptional Items
The Company's wax plant (leased) in Ankleshwar located at Plot No., J-7833 & C-1/B 7834 Nr. Dhiraj Can Co., GIDC, Ankleshwar -393002, engaged in the manufacturing of wax and related items. A fire was occurred on July 31, 2024 at company's wax plant, which resulted in destruction of all movable and immovable properties of the company. The company has identified total loss of all the inventories (including raw materials, work-in-progress, stores and spares and finished goods) and fixed assets, papers, documents, invoices, vouchers etc. and other records of the company for the said period. The said plant is temporarily disrupted due to the fire. The manufacturing/production of wax unit at Ankleshwar has stopped from the said event.
"The company has identified the estimated total loss to the company at an amount approximately of ' 206.63 lacs including loss of Inventories (including raw materials, work-in-progress, stores and spares and finished goods) of ' 121.40 lacs (including GST) and loss of property, plant & equipment of ' 85.23 Lacs. (fixed assets including plant and machineries, vehicles etc. are considered on written down value basis as per books).
The said assets are adequately insured with the insurance companies and the company is under process for the claim amount from the insurance companies. Final claim amount from the Insurance Company will be completed in FY 2025-26 and any gain / loss will be booked in the said financial year.
This fire accident has not affected our ""Going Concern"" assumption. Accordingly, the Company will continue as a going concern."
56. Additional Regulatory Disclosures As Per Schedule III Of Companies Act, 2013
Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.
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 Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the said facility, the submissions made by the Company to its lead bankers based on closure of books of accounts at the year end, the quarterly returns or statements comprising stock statements, statement of trade receivables and trade payables and ageing analysis of the debtors/other receivables, and other stipulated financial information filed by the Company with such banks or financial institutions are generally in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed except as stated below.
Note :- The above differences are not considered material with reference to the size and nature of the business operations of the company.
#1 Effect of Advance Received & Paid and differences of exchange fluctuations are not accounted for while submitting the statements to the bank.
c. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.
d. The Company has not entered any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Company Act, 1956.
e. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
f. Registration of charges or satisfaction with Registrar of Companies (ROC)
There has been no delay in Registration and satisfaction with Registrar of Companies (ROC)
g. The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.
h. The Company has not received any funds 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 to or on behalf of the Ultimate Beneficiaries.
i. The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
j. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
58 Segment Information :
The Company operating segments are established on the basis of those components of the Company that are evaluated regularly by the Executive Committee (the 'Chief Operating Decision Maker' as defined in Ind AS 108 - 'Operating Segments'), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The Company has Two operating and reporting segments; viz. Dyes & Chemicals ,Metal.
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