2.20 Provisions, Contingent Liabilities and Capital Commitments
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation
The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly
within the control of the Company, or present obligations where it is not probable that an outflow of resources will
be required or the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognized in the Standalone Ind AS financial statements but are disclosed unless the
possibility of an outflow of economic resources is considered remote.
2.21 Earnings per Share
Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect
of all dilutive potential equity shares.
2.22 Classification of Assets and Liabilities as Current and Non-Current
All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle
(determined at 12 months) and other criteria set out in Schedule III of the Act.
2.23 Cash and Cash equivalents
Cash and cash equivalents include cash at bank, cash, cheque and draft on hand. The Company considers all
highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.
2.24 Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.
2.25 Leases
The Company, as a lessee, recognises a rightof-use asset and a lease liability for its leasing arrangements, if the
contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset
and the Company has substantially all of the economic benefits from use of the asset and has right to direct the
use of the identified asset.
The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred.
The rightof-use assets is subsequently measured at cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any remeasurement of the lease liability.
The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter
of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental
borrowing rate.
For short-term and low value leases, the Company recognises the lease payments as an operating expense on a
straight-line basis over the lease term.
d. Rights / Preferences and restrictions attached to equity shares.
Each holder of equity shares is entitled to one vote per equity share. They are entitled to receive dividend
proposed by the Board of Directors and approved by shareholders in General Meeting, right to receive annual
report and other quarterly / half yearly / annual publications and right to get new shares proportionately in case of
issuance of additional shares by the Company.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
Nature and Purpose of Reserves :
Capital Reserves
Capital Reserve is created on account of Forfeiture of Equity Shares.
Securities Premium Reserve
Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Act..
General Reserve
General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.
Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to
shareholders.
Note 1 : 9.00% to 9.60% Vehicle Loan from banks for 36 months bearing floating interest rate are secured by
hypothecation of vehicles.
Note 2 : 10.10% to 10.50% Term Loan from bank for 7 years bearing floating interest rate are secured by second
charge with the existing credit facilities, in terms of cash flows and securities, with charge on the assets financed under
the scheme.
Note 3 : Buyer Credit from banks bearing fixed interest rate from 5.00% to 7.00% are secured by first pari passu
hypothecation charge on stock, book debts and movable fixed assets of the Company both present and future and
cash margin in form of FDRs.
Note 4 : Cash Credit Facility from banks bearing floating interest rate 9.10% to 9.40% are secured by first pari passu
hypothecation charge on stock, book debts and movable fixed assets of the Company both present and future and
cash margin in form of FDRs.
Defined Benefit Plans
The Company has the following Defined Benefit Plans:
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. The following are the details of defined
benefit plans:
Major risk to the planI. Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
a) Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result
into an increase in Obligation at a rate that is higher than expected.
b) Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit, the acceleration of cashflow will leading to an actuarial loss or gain depending on the relative values
of the assumed salary growth and discount rate.
c) Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.
II. Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not
be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent
of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are
significant changes in the discount rate during the inter-valuation period.
III. Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.
IV. Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets
One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value
of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice
versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of
liability is exposed to fluctuations in the yields as at the valuation date.
V. Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to
pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation
and the same will have to be recognized immediately in the year when any such amendment is effective.
Note 32 : Disclosures on Related party transactions
i) Nature and Relationship of Related Parties
a) Holding Entity
Wellknown Business Ventures LLP
b) Subsidiary Companies
Responsive Industries Limited, Hongkong
Axiom Cordages Limited, HongKong
Responsive Industries LLC, USA
# The above expenditure includes contribution to funds, expenses through registered trusts / registered society or
company established under the companies Act and direct expenses by the Company.
* Excess paid shown separately
## Nature of CSR activities
-CSR for physical and mental development for children's
-CSR for education of poor children's
Note 34 : Segment Reporting
The Company is primarily engaged in the business of Manufacturing & Selling of articles made out of Plastics /
Polymers. As such, the Company operates in a single segment and there are no separate reportable segments as
defined in Ind AS 108 - "Operating Segments". The same is consistent with the information reviewed by the Chief
Operating Decision Maker (CODM).
Geographical Information:
The operation of the Company comprises of local sales and export sales. The Management views the Indian market
and Export market as distinct geographical areas. The following is the distribution of the Company’s Revenues by
geographical markets :
C. Financial Risk Management
C. i. Risk management framework
A wide range of risks may affect the Company’s business and operational / financial performance. The
risks that could have significant influence on the Company are market risk, credit risk and liquidity risk.
The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors
suitable actions taken by management to minimise potential adverse effects of such risks on the Company’s
operational and financial performance.
C. ii. 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, and arises principally from the Company’s trade and other receivables,
cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses
financial reliability of customers, taking into account the financial condition, current economic trends and
analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in
case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals, establishing
credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms
in the normal course of business.
The Company considers the probability of default upon initial recognition of asset and whether there
has been a significant increase in the credit risk on an on-going basis through each reporting period. To
assess whether there is a significant increase in credit risk the Company compares the risk of default
occurring on assets 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 operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties
ability to meet its obligation
iv) Significant changes in the value of the collateral supporting the obligation or in the quality of third
party guarantees or credit enhancements
Financial assets are written off when there is no reasonable expectations of recovery, such as a
debtor failing to engage in a repayment plan with the Company. When loans or receivables have
been written off, the Company continues to engage in enforcement activity to attempt to recover the
receivable due, When recoverable are made, these are recognised as income in the statement of
profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual
customers 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, loss on collection of receivable is not material hence no additional provision
considered.
(b) Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs. 144.56 Lakhs at March 31,
2026 (P.Y. Rs. 122.25 Lakhs). The cash and cash equivalents are held with bank with good credit ratings
and financial institution counterparties with good market standing. Also, Company invests its short term
surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore
does not expose the Company to credit risk.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Company’s short,
medium and long-term funding and liquidity management requirements. The Company manages
liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by
continuously monitoring forecast and actual cash flows and by matching the maturity profiles of
financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted.
C. iv. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and
other price risk.
C. iv. a Currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional
currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD
exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in
the future. The Company’s business model incorporates assumptions on currency risks and ensures any
exposure is covered through the normal business operations. This intent has been achieved in all years
presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective
and efficient ways of managing the currency risks.
Sensitivity analysis
A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars at March 31 would
have affected the measurement of financial instruments denominated in US dollars and affected profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign
exchange fluctuation is capitalised to fixed assets, the impact indicated below may affect the Company's
income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing
respectively.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company is exposed to interest rate risk through the impact
of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by
monitoring the movements in the market interest rates closely.
Exposure to interest rate risk
Company’s interest rate risk arises primarily from borrowings. The interest rate profile of the Company’s
interest-bearing financial instruments is as follows.
Cash flow sensitivity analysis for variable-rate instruments
The sensitivity analysis below have been determined based on the exposure to interest rates for financial
instruments at the end of the reporting year and the stipulated change taking place at the beginning of
the financial year and held constant throughout the reporting period in the case of instruments that have
floating rates. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management’s assessment of the reasonably possible change in
interest rates :
C. iv.c Other price risk
The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly
liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This
investments are susceptible to market price risk, mainly arising from changes in the interest rates or market
yields which may impact the return and value of such investments. However due to the very short tenor of the
underlying portfolio in the liquid schemes, these do not pose any significant price risk.
Note 38 : Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and
to optimise returns to our shareholders. Management monitors the return on capital as well as the debt equity ratio
and make necessary adjustments in the capital structure for the development of the business. The capital structure
of the Company is based on management's judgement of the appropriate balance of key elements in order to meet
its strategic and day - to - day needs. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Company’s debt to equity ratio at March 31,2026 was 0.20 (PY. 0.26)
Note : For the purpose of computing debt to equity ratio, equity includes Equity share capital and Other Equity and
Debt includes Long term borrowings, Short term borrowings and current maturities of long term borrowings.
Note 42: Other statutory information :
(I) The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
(II) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(III) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(IV) The Company has not advanced or loaned or invested funds to any person(s) or entity(is), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) 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 (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(V) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(VI) The Company does not have any transaction which is not recorded in the books of accounts that 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.
VII) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters
issued by the Reserve Bank of India.
VIII) The title deeds of immovable properties (other than immovable properties where the Company is the lessee and
the lease agreements are duly executed in favor of the lessee) disclosed in the Standalone Financial Statements
are held in the name of the Company.
IX) No loans or advances in the nature of loans have been granted to promoters, directors, KMPs or related parties
that are repayable on demand or without specifying any terms or period of repayment (or actuals, as applicable).
X) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on Number of Layers) Rules, 2017.
Note 43: Figures of previous year have been regrouped, reclassified, and / or rearranged wherever necessary to
confirm with current year's presentation.
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