d. Rights, Preferences and restrictions
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each member is entitled to one vote by e-voting (remote e-voting / e-voting at the meeting), every shareholder is entitled to vote in proportion to their holdings.
f. During the year 2019-20, the company had allotted 41,60,000 Equity Shares of ' 10/- each as fully paid up by way of Bonus shares
27.5. Other Particulars
27.5a. Contingent Liability not provided for as on 31st March 2024 is ' 0.51 Crores (disputed GST Demand) (previous year Rs. Nil)
27.5b. The amount of Capital commitment pending as on 31st March 2024 is Rs. NIL (previous year Rs. NIL Crores)
27.6. Employee benefits
Defined Contribution Plans:
During the year, the Company has recognized the following amounts in the Profit and Loss Statement, which
29. Disclosure on Accounting for adoption in accordance with IND AS 116
All Rent payments being in the nature of short term/cancellable leases, are charged off in the Statement of Profit and Loss
Trade Receivables, Trade Payables, Cash and Cash equivalents, Cash Credits, Trade Payables, other financial assets and liabilities are stated at amortised cost which approximates their fair values.
B. Fair value hierarchy
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:
Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active market.
Level 2 hierarchy - The Fair value of Financial Instruments that are not traded in an active market, is determined using valuation techniques which maximise the use of observable market data.
Level 3 hierarchy - includes Financial Instruments for which one or more of the significant inputs are not based on observable market data. This is applicable for unlisted securities.
C. Financial risk management
The Company's business activities are exposed to liquidity risk and credit risk. The Risk management policies have been established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy accordingly.
a) Management of Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities. In doing this, management considers both normal and stressed conditions.
The Company regularly monitors the rolling forecasts and the actual cash flows to service the financial liabilities on a day-to-day basis through cash generation from business and by having adequate banking facilities.
The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.
b) Management of Credit risk
Credit risk is the risk of financial loss to the Company if the other party to the financial assets fails to meet its contractual obligations.
a) Trade receivables:
Concentration of credit risk with respect to trade receivables are limited as the customers are reviewed, assessed and monitored regularly on a monthly basis with pre determined credit limits assessed based on their payment capacity. Our historical experience of collecting receivables demonstrates that credit risk is low. Hence, trade receivables are considered to be a single class of financial assets.
b) Expected Credit Loss:
We have in place, a rigorous process of followup for collecting long outstanding receivables and write off identified unrecoverable amounts. Over and above the bad debts written off, we have additionally provided an amount of Rs. 18.55 lakhs as Expected Credit Loss (ECL) in compliance with IND AS.
c) Other financial assets:
The Company has exposure in Cash and cash equivalents and term deposits with banks and others. The Company's maximum exposure to credit risk as at 31st March, 2024 is the carrying value of each class of financial assets as on that date.
31. Capital Management
The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company's objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.
The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has generally been a net cash surplus Company with cash and bank balances along with investment in liquid and short term mutual funds and equity shares.
32. Dividend:
The Board of Directors have declared an interim dividend of ' 9/- (90%) per equity share of ' 10/- each for the Financial Year 2023-24. A final dividend of ' 18/- (180%) per equity share was recommended by the Board, which, together with the interim dividend, aggregates to a total dividend of ' 27/- (270%) per equity share on the paid-up share capital of ' 12.48 crores. This will absorb a sum of ' 33.70/- Crores as dividend for the year. The Register of Members and Share Transfer Book of the Company shall remain closed from 16/07/2024 to 24/07/2024.
34. Merger :
In the matter of amalgamation of the wholly owned Subsidiary, CAPL Motor Parts Private Limited with India Motor Parts and Accessories Limited, the Hon'ble NCLT - Chennai Bench vide its Order received by the Company on 02nd May, 2024 has fixed the next hearing on 19th June, 2024 and directed to send notices to the Authorities, also publish notice of the hearing in the newspapers i.e., Business Line and Makkal Kural.
35(a) Additional Regulatory Disclosures under Schedule III
a. The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
b. The title deeds of all the 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 are held in the name of the Company as at the balance sheet date.
c. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
e. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
f. The Company has not entered into any derivative contracts during the year.
g. The Company has Workings Capital Limits from banks on the basis of security of current assets. The returns
or statements of current assets filed by the Company with banks are in agreement with the books of accounts.
h. The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authority.
i. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (restriction on number of Layers) rules, 2017.
j. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
k. 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 beneficiary
l. 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.
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