G) Provisions & Contingencies -
I) Provision - A provision is recognised for a present obligation (legal or constructive) as a result of past events if it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and in
respect of which a reliable estimate can be made. The amount recognized as provisions are determined based on
best estimate of the amount required to settle the obligation at the balance sheet date. These estimates are
reviewed at each balance sheet date and adjusted to reflect the current best estimate.
II) Contingent liability - A contingent liability is a possible obligation that arises from the past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of
the Company or a present obligation that is not recognized because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial statements.
III) Contingent Assets - Contingent asset is not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is virtually certain, then
the related asset is not a contingent asset and is recognised.
H) Foreign Exchange & Losses - Foreign currency transactions are recorded at the rates of exchange prevailing on the
date of transaction. Foreign currency monetary items are reported using the closing rate. Non-monetary items which are
carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of
the transaction.
Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially
recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in
which they arise.
I) Revenue Recognition -The Company earns revenue primarily by sale of packaging items. Revenue is recognised
upon transfer of control of promised products or services to customers in an amount that reflects the consideration
which the Company expects to receive in exchange for those products or services.
The Company has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how
much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction
Contracts. The Company has adopted Ind AS 115 using the cumulative effect method. The effect of initially applying
this standard is recognised at the date of initial application (i.e. April 1,2018). The standard is applied retrospectively
only to contracts that are not completed as at the date of initial application and the comparative information in the
statement of profit and loss is not restated - i.e. the comparative information continues to be reported under Ind AS
18 and Ind AS 11. The impact of the adoption of the standard on the financial statements of the Company is
insignificant.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
service level credits, performance bonuses, price concessions and incentives, if any, as specified in the contract
with the customer. Revenue also excludes taxes collected from customers.
J) Interest Income- Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial
recognition.
K) Other Income - Income are accounted for on accrual basis and accordingly company follows the Mercantile System of
Accounting. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.
L) Expenditure - Expenses are accounted on accrual basis. Further Prior period items are accounted under exceptional
items as per Ind AS 8 “Accounting policies, changes in estimates and errors”.
M) Retirement and other employee benefits -
a) Defined contribution plan - Employee benefits in the form of contribution to Provident Fund managed by
Government Authorities and Employees State Insurance Corporation are considered as defined contribution plans
and the same are charged to the statement of profit and loss for the year in which the employee renders the related
service.
b) Defined benefit plan -The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plan
is the present value of defined benefit obligations at the end of the reporting period less fair value of expected plan
assets. The defined benefit obligation is calculated annually by actuaries through actuarial valuation using the
projected unit credit method.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement
of profit and loss:
i) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non¬
routine settlements; and
ii) Net interest expense or income
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), and the return on
plan assets (excluding net interest), are recognized immediately in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to
profit or loss in subsequent periods.
c) Short term employee benefits - The undiscounted amount of short term employee benefits expected to be paid in
exchange for the services rendered by employees are recognized as an expense during the period when the
employees render the services. Further accumulated compensated absences, which are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service, are treated as
short term employee benefits. The Company does not recognize the expected cost of such absences as the
additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting
date; they are to be accounted for on cash basis. Thus its effect on Profit and Loss of the company is not
determined.
d) Other long-term employee benefits - There is no such other long term employees benefit for which actuarial
valuation is required. Hence no actuarial gain or loss is booked in statement of profit or loss.
e) Termination Benefit - Termination benefits are payable when employment is terminated by the Company before the
normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
Company recognizes termination benefits at the earlier of the following dates:
i) When the Company can no longer withdraw the offer of those benefits; and
ii) When the Company recognizes costs for a restructuring that is within the scope of Ind AS 37 and Involves the
payment of termination benefits.
N) Borrowing Cost- Borrowing cost directly attributable to acquisition and construction of assets that necessarily takes
substantial period of time to get ready for their intended use or sale are capitalised as part of the cost of such assets up to
the date when such assets are ready for intended use or sale. All other borrowing costs are expensed in the period in
which they occur. Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing
costs.
O) Taxation - Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the
statement of Profit and Loss except when they relate to items that are recognised outside profit and loss (whether in other
comprehensive income or directly in equity), in which case tax is also recognised outside profit and loss. Current income
taxes are determined based on respective taxable income of each taxable entity.
Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the
carrying values of assets and liabilities and their respective tax bases, and unutilised business loss and depreciation
carry-forwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity.
Deferred tax assets are recognised to the extent that it is probable that future taxable income will be available against
which the deductible temporary differences, unused tax losses, depreciation carryforwards and unused tax credits could
be utilised.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the
asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date. Current and deferred tax assets and liabilities are offset when there is a legally enforceable
right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
P) Leases- The Company assesses whether a contract contains a lease, at inception of a contract. 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. To assess whether a contract conveys the right to control the use of an identified assets, the Company
assesses whether:
(i) The contact involves the use of an identified asset;
(ii) The Company has avail 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.
As a lessee, the Company should recognize a right-of-use asset and a lease liability at the lease commencement
date. The right of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred
and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site
on which it is located less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the 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 estimated useful lives
of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-
of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurement of the
lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing
rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the fixed
payments, including in-substance fixed payments; the lease liability is measured at amortised cost using the
effective interest method.
The company has used number of practical expedients while applying Ind AS 116: - Short-term leases, leases of
low-value assets and single discount rate. The Company has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The
company has entered into a lease agreement with MPAKVN Limited, for factory Land at Pithampur, Indore (M.P.).
The company recognises the lease payments associated with these leases as an expense on a straight-line basis
over the lease term as the lease payment is of very low -value.
The company has paid the upfront lease premium at the time of execution of the lease deed which is being
amortizing over the period of lease term determined by the company under Ind AS 17, the same assessment of
lease term would be acceptable under Ind AS 116. The amortisation of lease premium is as per Ind AS 116 as the
company neither have purchase option of the factory land at the expiry of the lease term nor the title will be transfer in
the name of the company at the end of lease term.
Q) Government grants and subsidies - Grants and subsidies from the Government are recognised when there is
reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with.
Grant or subsidy relating to an asset is credited to the respective Property Plant & Equipment by the company which is in
line with Ind AS 20 “Accounting for government grants & disclosure of government assistance”.
R) Related Party Transactions - Transactions entered by the company with the related parties, has been disclosed by
way of notes as defined under Ind AS 24 “Related Party Disclosures”. (Refer Note-34)
S) Earning Per Share - As per Ind AS 33 “Earning per Share”, Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period. Basic earnings per share is Rs 4.60 per share as compared to Rs 3.065 per share in
previous year. Diluted earnings per share are computed by dividing the profit after tax as adjusted for dividend, interest
and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on conversion of all dilutive potential equity shares.
Diluted earning per share is Rs.4.60 per share as compared to Rs.3.065 per share in previous year.
T) Classification of current / non-current assets and liabilities - All assets and liabilities are presented as current or non¬
current as per the Company’s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013
and Ind AS 1 “Presentation of financial statements”. Based on the nature of products and the time between the acquisition
of assets for processing and their realisation, the Company has ascertained its operating cycle as 12 months for the
purpose of current / non-current classification of assets and liabilities.
U) Significant estimates and assumptions -The preparation of the Company’s financial statements requires
management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods. Estimates and judgments are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate
primarily to defined benefit obligations, useful life of property, plant and equipment, revenue recognition, fair value
measurement of financial instruments at the end of the reporting period.'
I) Defined benefit obligations - The cost of defined benefit gratuity plans is determined using actuarial valuations.
The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates
and future pension increases. Due to the long-term nature of these plans, such estimates are subject to significant
uncertainty.
II) Useful life of property, plant and equipment - The charge in respect of periodic depreciation is derived after
determining an estimate of an asset’s expected useful life and the expected residual value. Increasing an asset’s
expected life or its residual value would result in a reduced depreciation charge in the Statement of profit and loss.
The useful lives of the Company’s assets are determined by management at the time the asset is acquired and
reviewed at least annually for appropriateness. The lives are based on historical experience with similar assets as
well as anticipation of future events, which may impact their life, such as changes in technology.
III) Revenue recognition - Company provides various discounts, allowances and rebates to the customers. The
methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the
light of contractual and legal obligations, historical trends, past experience and projected market conditions.
IV) Classification of legal matters and tax litigation - The litigation and claims to which the Company is exposed to,
are assessed by management with assistance of the legal department and in certain cases with the support of
external specialized lawyers. Disclosures related to such provisions, as well as contingent liabilities, also require
judgment and estimations if any. (Refer Note-38)
V) Events after the reporting period - Events after the reporting period are those events, favorable and unfavorable,
that occur between the end of the reporting period and the date when the financial statements are approved by the
Board of Directors. These events can be classified as :
i) Adjusting Events those that provide evidence of conditions that existed at the end of the reporting period.
There are no such events after the reporting period for the company.
Note No : 15A
1) Securites provided towards secured loans;
i) Term Loan From HDFC Bank Loan Account No: 85921402 , For Total Tenure - 64 Months , Total Amount Financed-
29,718.567 Thousands Out of which Amount Disbursed-29,526.431 Thousands Payable In Monthly Installments of Rs
614,821/- (including interest) Commencing From 07/12/2021. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings' (Refer Note no.16)
ii) Term Loan From HDFC Bank Loan Account No: 86797539 , For Total Tenure - 63 Months ,Total Amount Financed-
15,000.000 Thousands Out of which Amount Disbursed- 14,955.042 Thousands Payable In Monthly Installments of Rs
304,146/- (including interest) Commencing From 07/08/2022. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings' (Refer Note no.16)
iii) Term Loan From HDFC Bank Loan Account No: 89767084 , For Total Tenure - 84 Months ,Total Amount Financed-
73,934.828 Thousands Out of which Amount Disbursed- 73,934.828 Thousands Payable In Monthly Installments of Rs
1,308,565/- (including interest) Commencing From 07/04/2024. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings which is duly been updated as and when amount
disbursed(Refer Note no.16)
iv) Term Loan From HDFC Bank Loan Account No: 89458829 , For Total Tenure - 84 Months ,Total Amount Financed-
30,400.583 Thousands Out of which Amount Disbursed- 30,400.583 Thousands Payable In Monthly Installments of Rs
550,055/- (including interest) Commencing From 07/02/2024. Installments Falling Due in respect of the above loan
upto 31.03.2026 have been grouped under "Short Term Borrowings which is duly been updated as and when amount
disbursed(Refer Note no.16)
v) Term Loan From HDFC Bank Loan Account No: 86959376 , For Total Tenure - 61 Months ,Total Amount Financed-
20,600.000 Thousands Out of which Amount Disbursed- 20,600.000 Thousands Payable In Monthly Installments of Rs
64,316/- (including interest) Commencing From 07/06/2022. Installments Falling Due in respect of the above loan upto
31.03.2026 have been grouped under "Short Term Borrowings' (Refer Note no.16)
vi) Term Loan From Bank Of Baroda Bank , For Total Tenure - 84 Months ,Total Amount Financed- 97,700.000 Thousands
Out of which Amount Disbursed- 73,015.275 ,Payable In Monthly Installments of Rs 10,00,000/- (excluding interest)
Commencing From 07/04/2025. Installments Falling Due in respect of the above loan upto 31.03.2026 have been
grouped under "Short Term Borrowings' (Refer Note no.16)
31. Segment Reporting - The principal business of the company is manufacturing and sale of Plastics bottles, caps, Plastic liners,
Sanitary Napkins, Adult Diapers & related products. All other activities are ancillary to the main activities. Operating segment is
reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker (CODM). The CODM
evaluates the Company’s performance, allocates resources based on analysis of the various performance indicators of the
Company as a single unit. CODM have concluded that there are 2 operating reportable segments as defined by Ind AS 108, i.e.
Plastic segment & Hygiene Segment.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31.03.2025
32. Employee Benefits: -
a) Defined contributions plans -
Amount recognized and included in Note-25 as “PF& ESI Contribution (Employer)” of statement of profit and loss
Rs.2618.66 Thousand (previous year Rs. 3005.78 Thousand).
b) Defined benefit plans -
Funded gratuity plan (LIC New Group Gratuity Cash Accumulation Plan) is accounted for on accrual basis. The company is
in process to calculate the past service cost/Liability with a Life Insurance corporation of India to that extent the liability is
undervalued and amount is unascertainable in absence of actuarial figures. Although for Leave Encashment benefits are
accounted for on cash basis, its effect on Statement of Profit and Loss of the company is not determined.
37- A Beneficiaries disclosures
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, 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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
b) No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether,
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 provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
38. Contingent Liability and Capital Commitments:
a) Direct tax (Income Tax)
For AY 2018-19, Assessment order U/s 143(3) was issued by ACIT, Income Tax, Central, Ujjain on 05.04.2021
making addition of Rs. 35,70,826/-The said order was appealed to CIT (A) on 24.04.2021.
b) Company’s Capital Commitments for the year is Rs.30.10 Crores.
39. Other Disclosures:
c) Accounts statements of in-operative bank accounts held in the name of the company are notavailable hence
balances in such accounts are subject to confirmation.
d) Balances of trade receivables, trade payables and loans & advances are subject to confirmation.
e) GST Credits and inputs are subject to reconciliation. The Concerned Statutory Form with respective department
were file as and when due for filing.
f) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any
companies struck off under Section 248 of the Companies Act, 2013.
g) The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.
h) No proceedings have been initiated during the year or are pending against the Company as at March 31,2025 for
holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and
rules made there under.
i) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the
statutory period.
j) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961 which have not been recorded in the books of account.
k) The Company has not traded or invested in Virtual Currency.
l) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring
companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software
which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
m) Company not falls under the provision of section 135 Of the companies Act, 2013 i.e. CSR Provision
n) Previous year figures have been rearranged / regrouped where ever necessary to confirm to current year’s classification.
As per our report on even date For and on behalf of Board of Directors
For V.K.Ladha & Associates For Raaj Medisafe India Limited
Chartered Accountants
Firm Regn. No. 002301C
Sd/- Sd/- Sd/-
Arpit Bangur Navin Jhawar Hemant Kasliwal
Managing Director Jt. Managing Director Chairman - Audit Committee
(DIN-02600716) (DIN-08729821) (DIN-01797300)
Sd/- Sd/- Sd/- Sd/- Sd/-
CA. V. K. Ladha Ateet Agarwal Rakesh Agrawal CA Ankita Jain CS Sachin Sarda
Membershio No 071501 Director Director Chief Financial Officer Company Secretary
(DIN-05167866) (DIN-09675176) (M.No.426121) (M. No.20930)
|