1.15 PROVISIONS AND CONTINGENCIES
A provision is recognized if, as a result of a past event, the group has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are
lower than the unavoidable costs of meeting the future obligations under the contract.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not
require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty.
When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is
made.
1.16 CASH AND CASH EQUIVALENTS
Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term
highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of
changes in value. Where original maturity is three months or less.
1.17 CASH FLOW STATEMENT
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a
non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company
are segregated.
1.18 BORROWING COST
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying
assets are capitalized as a part of Cost of that asset, during the period till all the activities necessary to prepare the Qualifying assets
for its intended use or sale are complete during the period of time that is required to complete and prepare the assets for its
intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended
use or sale.
Other borrowing costs are recognized as an expense in the period in which they are incurred.
1.19 EARNINGS PER SHARE
Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equities
shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless
impact is anti-dilutive.
The company's pending litigation comprises mainly claims against the Company, proceedings pending with other Authorities. The
Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed
the contingent liabilities, wherever applicable, in its financial statements.
(ii) Commitment:
Capital Commitment: ' 110.52 Lakhs/- (Previous Year ' Rs. 201.19 Lakhs)
(iii) The amount of exchange difference (net) of ' 22.24/- Lakhs credited (Previous year credited of ' 142.22/- Lakhs) to the statement
of Profit & Loss for the year
As per Ind AS-108 Segment Reporting
(iv) The Company's operations fall under single segment namely Industrial Packaging in accordance with Indian Accounting Standard
IND AS 108.
Financial risk management objectives and policies
The Company Financial risk management is an integral part of how to plan and execute its business strategies. The company risk
management policy is set by the Managing Board.
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 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, payables and
loans and borrowings.
(i) Market Risk- Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in
market interest rates. In order to optimize the company's position with regards to 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 its total portfolio.
(iii) Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this,
the company periodically assess financial reliability of customer, 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 through each reporting period. To assess whether there is a significant increase in
credit risk the company compares the risk of default occuring on asset as at the reporting date with the risk of default as at 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 opertaing results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its
obligations,
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 the third-party guarantees or
credit enhancements .
(iv) Liquidity Risk
Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time, or at a reasonable
price. The company's treasury deparment is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related such risk are overseen by senior management. Management monitors the company's net liquidity
position through rolling forecasts on the basis of expected cash flows.
a) The Company has been sanctioned limit of working capital facilities Fund Based amounting to ' 5100 lakhs & Non Fund
Facility of ' 3650 lakhs which are secured to bank by 1st Charge ranking pari passu on Current Assets (Present & Future) of
the company & 2nd Charge ranking pari passu on Fixed Assets (movable & immovable) of Silvassa Unit, Pantnagar
(Gadarpur) Unit, Bhuj Unit & Fixed Assets (movable) of Ratlam Unit & Vizag Unit.
b) The Company has been also sanctioned Term Loan of ' 1400 lakhs (maturing on 31st August 2027) which is secured to
Bank by 1st Charge ranking pari passu on Fixed Assets (movable & immovable) of Silvassa Unit, Pantnagar (Gadarpur) Unit,
Bhuj Unit & Fixed Assets (movable) of Ratlam Unit & Vizag Unit, first charge (exclusive) on the fixed assets of Dahej unit in
favor of IDBI Bank. and 2nd pari passu charge on Current Assets (Present & Future) of the company.
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short
term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities
of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for
expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying
amounts.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly
or indirectly.
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market
data.
36 DISCLOSURE PURSUANT TO IND AS - 19 "EMPLOYEE BENEFITS"
i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The
Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on
retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of
employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are
determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund
administered by Life Insurance Corporation of India under Group Gratuity Scheme.
Demographic Assumptions
Mortality in Service : Indian Assured Lives Mortality 2012-14 (Urban)
As per our attached report of even date
For Raman S Shah & Associates For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 119891W Mahinder Kumar Wadhwa Jayesh Ashar
Chairman Chief Executive Officer
Raman S Shah DIN-00064148
Partner
Mumbership Number: 033272
Place : Mumbai Pawan Agarwal Hemant Soni
Date: 23rd May, 2025 Chief Financial Officer Company Secretary
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