(1) Provisions and Contingent Liabilities
Provisions
Provisions are recognised when the Company has 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. 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 oftime is recognised as a finance cost.
Contingent Liabilities
Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable estimate of amount cannot be made.
(g) Revenue Recognition
Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct
goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes
and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a
receivable is recognised when it becomes unconditional.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an
amount that reflects the consideration entitled in exchange for those goods or services.
Sale of Goods
Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer,
provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future
obligations with respect to the goods shipped.
Commission income
The Company is also Del-credere Agent cum Consignment Stockiest of ONGC Petro additions Limited (OPaL) to deal in granules.
Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer,
provided transfer of title to the customer occurs and the Principal has not retained any significant risks of ownership or future
obligations with respect to the goods shipped.
Job work and other services
Revenue from rendering of other services is recognised over time by measuring the progress towards complete satisfaction of
performance obligations by using output method at the reporting period.
Interest Income
Interest Income from a Financial Assets is recognised using effective interest rate method.
Export Licences
The revenue from transfer of export licences has been recognised when control over licences are transferred.
(h) Contract Balances
Trade Receivables
A receivable represents the Company’s right to an amount of consideration that is unconditional.
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or
an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the Company performs under the contract.
(i) Government Grants
Government grants, including non-monetary grants at fair value, are recognised when there is reasonable assurance that:
(a) The entity will comply with the conditions attaching to them; and
(b) The grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses
the related costs for which the grants are intended to compensate.
Presentation of Government grants
Grant related to specific fixed assets are presented in the balance sheet by showing the grant as deduction from the gross value of asset
concerned in arriving at their book value.
Grants related to income are presented as part of profit or loss.
(j) Employee Benefits Expense
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 recognised as an expense during the period when the employees render the services.
Leave encashment is accounted for on cash basis. Company compulsorily pays for encashment of leave within 12 months. Hence all
payments are short term in nature.
Post-Employment Benefits
Defined Contribution Plans
The Company recognises contribution payable to the Provident Fund and ESIC scheme as an expense, when an employee renders the
related service.
Defined Benefit Plans
The Company has opted Group Gratuity Scheme of Life Insurance Corporation of India. The Company makes contribution to the
fund under that scheme. Provision for obligations is made for any shortfall in contribution to the fund as against the present value of
defined benefit obligations towards gratuity at the reporting date.
Remeasurement gains and losses arising from adjustments and changes in actuarial assumptions are recognised in the period in
which they occur in Other Comprehensive Income.
(k) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
(l) Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible Assets
The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and Equipment and
Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists, the
recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate
the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset
belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or
CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.
(m) Income Taxes
Income taxes
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and
deferred taxes are recognised in statement of profit and loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity, respectively.
Current taxes
Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the Income Tax authorities,
based on tax rates and laws that are enacted at the reporting date.
Deferred taxes
Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and
taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years
in which the temporary differences are expected to be received or settled.
(n) Leases
The Company, as a lessee, recognises a right-of-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 right-of-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 ofright-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 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.
(o) Foreign Currencies Transactions and Translation
Initial Recognition and Measurement
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction i.e. spot
exchange rate between the functional currency and the foreign currency.
Subsequent recognition and Measurement
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency at closing rates of
exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in
Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on
foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised
as cost of assets.
(p) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding
during the year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of
all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless
issued at a later date.
f Capital Management
Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company’s objective
for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company.
The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment
plans. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.
g Earnings Per Share
Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the year adjusted for bonus element in equity share.
Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of
all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless
issued at a later date.
h Terms of securities convertible into equity shares
(i) The Company has issued 20,00,000 warrants of Rs. 72.00 (Previous Year: Nil) each convertible into equity share on
preferential basis to promoter and promoter group. The company has received 25% up front subscription of Rs. 18 per warrant
aggregating Rs. 360 Lakhs.
Farthest and earliest date of conversion are 19-09-2026 & 20-03-2025 respectively.
b Terms of Repayment of Term Loans and other loans:
b1 Term Loan from Kotak Mahindra Bank Limited
Term loan from Kotak Mahindra Bank Limited Rs 2,105.01 Lakhs (Previous year balance Rs 2,911.09 Lakhs) is secured by first and
exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the
Borrower (i.e. Company) (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by
exclusive mortgage on following properties :-"
Nature of Security -
(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building
thereon.
(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting ofleasehold
land and building thereon.
(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.
(d) Property situated at Block A & B of office premises at Commercial House, 3-4 Jaora Compound, MYH Road, Indore.
(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited
(Techtex) Leasehold Landand Building thereon."
The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary,
Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).
Term Loan from Kotak Mahindra Bank Limited consists of Rupee Term Loan of Rs. 2084.95 Lakhs (Previous year balance. 2673.95
Lakhs) and Foreign Currency Term Loan (FCTL in Euro) of Rs. 20.06 Lakhs (Previous year balance Rs. 237.14 Lakhs). There
repayments are as -
(i) FCTL - 5933FC0400000006 of Rs. Nil Lakhs having interest rate 3.25 % (Euro Nil ) (Previous year balance is Rs. 20.43 Lakhs ,
Interest rate 3.25% (Euro 22,643.24 )) is repayable in Forty Six Equated Monthly Installment of Euro 3,814 each starting from June,
2020 to March, 2024 and balance of Euro 22,626.40 was paid in April, 2024.
(ii) FCTL - 5933FC0400000007 of Rs. Nil Lakhs having interest rate 5.91 % (Euro Nil) (Previous year balance Rs. 78.72 Lakhs having
interest rate 5.91 % (Euro 87,260.25 )) is repayable in Eight Equated Quarterly Installment of Euro 22,304 each starting from January,
2023 to October, 2024 and Balance of Euro 23,326.20 was paid in INR in January, 2025.
(iii) FCTL - 5933FC0400000008 of Rs. Nil Lakhs having interest rate 5.91 % (Euro Nil) (Previous year balance Rs. 81.49 Lakhs having
interest rate 5.91 %(Euro 90,330.56 )) is repayable in Eight Equated Quarterly Installment of Euro 23,087 each starting from January,
2023 to October, 2024 and Balance of Euro 24,152.37 was paid in INR in January, 2025.
(iv) FCTL - 5933FC0400000009 of Rs. 20.06 Lakhs having interest rate 5.94 % (Euro 21,727.64) (Previous year balance Rs. 56.50 Lakhs
having interest rate 5.94 %(Euro 62,628.39) is repayable in Eight Equated Quarterly Installment of Euro 10,906 each starting from
September, 2023 to June, 2025 and Balance ofEuro 11,300.91 will be paid in INR in September, 2025.
(v) Rupee Term Loan I (No. - 5933TL0100000177) of Rs. Nil Lakhs having interest rate 8.50 % (Previous year balance Rs. 46.52 Lakhs,
Interest rate 9.55%) is repayable in Eighteen Equated Quarterly Installment of Rs. 19.57 Lakhs each starting from June, 2020 to
September, 2024 and last installment of Rs. 9.39 Lakhs was paid in December, 2024.
(vi) Rupee Term Loan II (No.-5933TL0100000216) of Rs. Nil Lakhs having interest rate 8.50 % (Previous year's balance Rs. 11.55 Lakhs,
Interest rate 9.55%) is repayable in Forty Nine Equated Monthly Installment of Rs. 3.36 Lakhs each starting from June, 2020 to June,
2024 and last installment ofRs. 1.68 Lakhs was paid in July, 2024.
(vii) Rupee Term Loan III (No.-5933TL0100000225) of Rs. Nil Lakhs having interest rate 8.25 %(Previous year balance Rs. 3.86 Lakhs,
Interest rate 9.65%) is repayable in Fifty One Equated Monthly Installment of Rs. 0.78 Lakhs starting from June, 2020 to August, 2024
and last installment of Rs. 0.072 Lakhs was paid in September, 2024.
(viii) Rupee Term Loan IV (No.-5933TL0100000392) of Rs. 2,084.95 having interest rate 8.50 % (Previous year balance Rs. 2,612.02 Lakhs
having interest rate 8.95 %) is repayable in Seventy Three Equated Monthly Installment starting from June, 2023 to July, 2029 and last
installment of Rs. 40.40 Lakhs will fall due in August, 2029.
b2 Term Loan from HDFC Bank Limited
"Term Loan from HDFC Bank Limited consists ofRupee Term Loan ofRs. 570.44 Lakhs (Previous year balance Rs. 896.13 Lakhs)."
Term loan from HDFC Bank Limited is secured by exclusive first charge by way of equitable mortgage of leasehold factory land
admeasuring about 23,113 sq ft. situated at 3/2 Sector 1 Industrial Area, Pithampur, Dist. Dhar and Building measuring at 24,180 sq. ft.
situated at 3/1 Sector 1 Industrial Area, Pithampur, Dist. Dhar It is further secured by exclusive first charge by way of equitable
mortgage of leasehold factory land admeasuring about 4932 sq. ft. & building thereon at Plot No. 309, Sector 1, Industrial Area,
Pithampur, Dist. Dhar (M.P.). The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 8745
sq. ft. and Building thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric
installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the above mentioned
all factories, present and future. The loan also secured by exclusive 1st charge by way ofhypothecation of entire machineries, electrical
installations and other movable fixed assets ofthe company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur
present and future.
The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary,
Whole Time Director ofthe Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).
There repayment is as -
(i) Rupee Term Loan I (No.-83511438) of Rs. 272.69 Lakhs having interest rate 8.49% (Previous year balance is Rs. 437.29 Lakhs, interest
rate 9.09%) is repayable in Eighty Eight Equated Monthly Installment of Rs. 16.42 Lakhs starting from June, 2020 to September, 2026
and last installment ofRs. 14.59 Lakhs will fall due in September, 2026.
(ii) Rupee Term Loan II (No.-85084592/ Solar ) of Rs. 54.83 Lakhs having interest rate 8.49% (Previous balance is Rs. 109.94 Lakhs
interest rate 9.09%) is repayable in Sixty Two Equated Monthly Installment of Rs. 5.22 Lakhs starting from February, 2021 to March,
2026.
(iii) Rupee Term Loan III (No.-85256245) of Rs. 217.58 Lakhs having interest rate 8.49% (Previous year balance is Rs. 273.08 Lakhs
interest rate 9.09% ) is repayable in Eighty Nine Equated Monthly Installment of Rs. 6.45 Lakhs starting from June, 2021 to July, 2028.
(iv) Rupee Term Loan IV (No.-450555362) GECL- 01 of Rs. 25.33 Lakhs having interest rate 9.25% (Previous year balance is Rs. 75.82
Lakhs interest rate 9.25%) is repayable in Forty Nine Equated Monthly Installment of Rs. 4.62 Lakhs starting from September, 2022 to
September, 2025.
b3 Term Loan from State Bank of India
(i) Loan under Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs.
57.67 Lakhs having interest rate is 9.25%(Previous year balance is Rs. 195.88 Lakhs, Interest Rate 9.25% ) is secured by extension of
charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally
secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I,
Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt. Ranjana
Choudhary, Director ofthe Company."
Rupee Term Loan GECL Unit-01 (No.- 00000040365831307) of Rs. 57.67 Lakhs having interest rate 9.25 %(Previous year balance is
195.88 Lakhs, Interest Rate 9.25 %) is repayable in Thirty Six Monthly Installment of Rs. 11.55 Lakhs starting from August, 2022 to
July, 2025 (First Twelve Months Moratorium).
b4 Other Term Loans
(i) Term Loan (Car Loan-Tucson) from HDFC of Rs. 20.37 Lakhs having interest rate 7.90 %(Previous year balance Rs 26.97 Lakhs
Interest rate 7.90%) is repayable in Sixty equated monthly instalment of Rs. 0.71 Lakhs each commencing from December, 2022 to
November, 2027. Secured by hypothecation of Hyundai Tucson.
(ii) Term Loan (Car Loan-Innova) from HDFC of Rs. 28.62 Lakhs having interest rate 8.90 %(Previous year balance Rs Nil Lakhs) is
repayable in Thirty Nine equated monthly instalment of Rs. 1.04 Lakhs each commencing from August, 2024 to October, 2027. Secured
by hypothecation of Innova.
(iii) Term Loan (Car Loan- 1327) from Bank of Baroda of Rs. Nil Lakhs having interest rate 9.65 % (Previous year balance Rs. 28.35 Lakhs
Interest rate 9.65%) is repayable in Eighty Three equated monthly instalment of Rs. 0.76 Lakhs each commencing from August, 2020 to
June, 2027 and last installment of Rs. 4.17 Lakhs in July, 2027. The term loan is secured by hypothecation of vehicle Volvo S-90 which
is sold during the year and loan is prepaid in full.
(iv) Term Loan (Car Loan- 1756) from Bank ofBaroda ofRs. 16.62 Lakhs having interest rate 9.85 % (Previous year balance is 19.77 Lakhs,
Interest Rate 9.85%) is repayable in Eighty Three equated monthly instalment of Rs. 0.41 Lakhs each commencing from October, 2021
to August, 2028 and last installment ofRs. 3.29 Lakhs in September, 2028. The term loan is secured by hypothecation of Innova Car.
(v) Term Loan (Car Loan- 1952) from Bank of Baroda of Rs. 14.12 Lakhs having interest rate 9.60 % (Previous year balance is Rs. 16.33
interest rate 9.60%) is repayable in Eighty Three equated monthly instalment of Rs. 0.31 Lakhs each commencing from June, 2022 to
April, 2029 and last installment ofRs. 2.58 Lakhs in May, 2029. The term loan is secured by hypothecation of XUV700 Car.
Other Information
Terms of Repayments of loan
Kotak Mahindra Bank Limited
Working Capital Loan from Kotak Mahindra Bank Limited of Rs. 6,353.77 Lakhs having interst rate 8.45% (Previous balance
Rs. 4,700.60 Lakhs, interest rate 8.45%) is secured by first and exclusive hypothecation charge on all existing and future
receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (excluding assets (vehicles) financed by
other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties-"
(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and
building thereon.
(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of
leasehold land and building thereon.
(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.
(d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore.
(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited
(Leasehold Land).
The Working loan is also guaranteed by Shri Anil Choudhary Managing Director, Smt. Ranjana Choudhary, Whole Time
Director of the Company and Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).
HDFC Bank Limited
Working Capital Loan from HDFC Bank Limited of Rs. 53.20 Lakhs having interest rate 8.58% (Previous balance Rs. 447.41
Lakhs, Interest Rate 9.01%) is primarily secured by hypothecation of Plant and Machinery, Stock, Book Debts, FD of Unit - II
and collaterally secured by Equitable Mortgage of property at Plot No. S-2/1, 3/1,3/2 & Plot No. 309, Sector - I, Pithampur,
Dhar (M.P.) consisting of leasehold land and building thereon. "
State Bank of India
Working Capital Loan from State Bank of India of Rs. Nil Lakhs (Previous balance Rs. 329.43 Lakhs) is secured by first charge
by way of hypothecation of company’s stock/ receivable created out of bank finance, Fixed Deposit and collaterally secured
by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I,
Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt.
Ranjana Choudhary, Whole-time Director of the Company.
Description of Plans and risks
Defined benefit plans ofthe Company comprises Gratuity.
The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment.
The Company has opted the Employee Group Gratuity Scheme ofthe insurance service provider Life Insurance Corporation of India
("LIC") . Payments for Gratuity are funded through investments with Life Insurance Corporation of India.
The Company’s investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory
requirements. The plans expose the Company to a number of actuarial risks such as investment risk, interest rate risk, longevity risk
and inflation risk. The Company has developed policy guidelines for the allocation of assets to different classes with the objective of
controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Company of the
benefits provided.
The Company makes annual contribution to the Employee's Group Gratuity Cum Life Assurance Scheme of the Life Insurance
Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary
payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of
service.
The figures of present value ofthe defined benefit obligation and the related current service cost were as measured and provided to us
by a consulting actuary.
The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2024-25.
In respect of Sales Tax
Demands amounting to Rs. 186.69 lakhs ( Previous Year 186.69 Lakhs) have been raised by the Indirect Tax Authorities which
is contested by the company based on management evaluation and legal advice of tax consultants. Based on legal advice that
these amounts would get deleted or substantially reduced, the Company has not recognised these as liabilities.
36 Additional Regulatory Information-
(i) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed
in favour of the lessee) whose title deeds are not held in the name of the company and where such immovable property is
jointly held with others, details are given to the extent of company's share. - The Company has no such immovable
properties
(ii) The company does not hold any investment property.
(iii) The company has not revalued its property, plant and equipments.
(xi) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.
(xii) Relationship with struck off Companies- Nil/None
(xiii) Registration of charges or satisfaction with Registrar of Companies- No charge registration or satisfaction was
pending on the date of balance-sheet.
(xiv) Compliance with number of layers of companies- The Company has complied with laws in respect of number of layers
of companies.
(xv) Ratios- Refer note no 43 for ratios
(xvi) The information is not applicable - Compliance with approved Scheme(s) of Arrangements
"(xvii) Utilisation of Borrowed funds and share premium- 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 lend or invest in other person(s) or entity(ies) party identified in any manner
whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries’). or provide any guarantee, security or the like to
or on behalf of the ultimate beneficiaries. The Company has not received any fund from any person(s) or entity(ies),
including foreign party(s) ‘Funding Party’) with the understanding 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."
(xviii) Details of Crypto Currency or virtual currency- Nil
Details of items of exceptional and extraordinary nature- Nil
(xix) The company has not surrendered or disclosed any amount as income during the year in the tax assessment under the
Income Tax Act,1961.
38 Segment Information
i. The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating
Decision Maker (‘CODM’):
a. Manufacturing segment - Business of manufacture and sale of FIBC, HDPE/PP Tarpaulin, HDPE/PP, Bags, Ground Cover, Pond
Liners, Mulch Film, HDPE/PP Fabric, Laminates, Vermi Beds and Geotextiles, Ground Cover, Nets and other technical textiles
products which mainly have same risks and returns.
b. Trading segment - Trading of Granule ( Del credre agent cum Consignment Stockiest)
Power generated from solar power is captively consumed. The solar power generation segment is integral part of manufacturing
segment'.
The above business segments have been identified considering :
a. the nature ofproducts and services
b. the differing risks and returns
c. the internal organisation and management structure, and
d. the internal financial reporting systems.
ii. The Company's Chief operating Decision maker is Managing Director and Chief Executive Officer.
iii. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following
additional policies for segment reporting.
(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment.
Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been
disclosed as “Unallocable”.
(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other
assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.
The Company is exposed primarily to market risks being fluctuations in foreign currency exchange rates and interest rate, and
other risks namely credit and liquidity risks, which may adversely impact the fair value of its financial instruments. The
Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus is to assess
the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance of
the Company.
d1. Management of Market Risk
The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial
instruments:
d2. Foreign Currency Exchange Rate Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of the company.
The Company as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.
The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a
simultaneous parallel foreign exchange rates shift of all the currencies by 1% against the functional currency of the Company.
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amount according to
the contractual terms or obligations causing financial loss to the Company
Credit risk encompasses of risk of default, risk of deterioration of creditworthiness as well as concentration of risks.
Credit risk is controlled by analysing credit limits and creditworthiness of customers of a continuous basis to whom the credit
has been granted.
Exposure to Credit Risk
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk is Rs 9,963.66 lakhs ( Rs 9,296.28 lakhs in preceding year) being the total of carrying
amount of trade receivables, balance with banks, bank deposits and other financial assets.
Trade receivables
Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and
diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.
Other financial assets
The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short
term nature, there is no significant risks pertaining to these assets.
d5. Management of Liquidity Risk
Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date.
The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company
have access to undrawn lines of committed and uncommitted borrowing/ facilities
The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March,
2025 and 31st March, 2024. Cash flow from operating activities provides the funds to service and finance the financial
liabilities on a day-to-day basis.
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s
non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.
The accompanying notes 1 to 44 are an integral part of these Financial Statement As per our report 0f even date attached
For and on Behalf of Board of Directors For Ashok Kumar Agrawal & Associates
Chartered Accountant
FRN :022522C
Anil Choudhary Ranjana Choudhary Ravindra Choudhary
Managing Director Whole Time Director Chief Executive Officer
DIN 00017913 DIN 03349699
Abhishek Jain Sandeep Patel Place: Indore (CA Ashok Kumar Agrawal )
Chief Financial Officer Company Secretary Date : 30.05.2025 Proprietor
M No. - FCS 13157 M.No. 071274
|