(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 ofprofit 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 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 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.
Smartlift Bulk Packaging Limited is a private limited company limited by shares incorporated in England and wales and domiciled
at United Kingdom. Smartlift Bulk Pacaging (Ireland) Limited, a wholly owned subsidiary of Smartlift Bulk Packaging Limited, is
a company limited by shares incorporated and registered in the Republic of Ireland and domiciled at Ireland.
The Company holds 50% Shareholding in Smartlift Bulk Packaging Ltd U.K. (Previous Year - 49%)
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 party identified by or on behalf
of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(Refer note no 2.5 (e) for accounting policy, note no 2.3 (b), note no. 36(xvii) and note no 44 for other information)
d Terms/ Rights attached to equity shares :
The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to
one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportion to their shareholding.
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.
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 2111.49 Lakhs (Previous year balance Rs 2105.01 Lakhs) is secured by first and
exclusive hypothecation charge on all existing and future current 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 first & 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 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.
(f) Property situated at Plot No. F-13-A Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold land and
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 of the Company).
Term Loan from Kotak Mahindra Bank Limited consists of Rupee Term Loan of Rs. 2111.49 Lakhs (Previous year balance. 2084.95
Lakhs) and Foreign Currency Term Loan (FCTL in Euro) of Rs. Nil (Previous year balance Rs. 20.06 Lakhs). There repayments are as -
(i) FCTL - 5933FC0400000009 of Rs. Nil Lakhs having interest rate 5.94 % (Euro Nil) (Previous year balance Rs. 20.06 Lakhs having
interest rate 5.94 %(Euro 21,727.64)) 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 has been paid in INR in September, 2025.
(ii) Rupee Term Loan I (No.-5933TL0100000392) of Rs. 1,643.90 Lakhs having interest rate 7.25 % (Previous year balance Rs. 2,084.95
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.
(iii) Rupee Term Loan II (No.-5933TL0100000567) of Rs. 337.96 Lakhs having interest rate 7.90 %(Previous year balance Rs. Nil) is
repayable in Seventy Two Equated Monthly Installment starting from January, 2027 to November, 2033 and last installment of Rs. 4.04
Lakhs will fll due in December, 2033.
(iv) Rupee Term Loan III (No.-5933TL0100000574) of Rs. 129.63 Lakhs having interest rate 7.90 %(Previous year balance Rs. Nil) is
repayable in Eighty Four Equated Monthly Installment starting from March, 2027 to January, 2034 and last installment of Rs. 1.51
Lakhs will fall due in February, 2034.
b2 Term Loan from HDFC Bank Limited
Term Loan from HDFC Bank Limited consists ofRupee Term Loan ofRs. 246.46 Lakhs (Previous year balance Rs. 570.44 Lakhs)."
Term loan from HDFC Bank Limited is secured by exclusive first charge by way of equitable mortgage of leasehold factory land
situated at 3/2, 3/1, 2/1 Sector 1 Industrial Area, Pithampur, Dist. Dhar and Building theron. It is further secured by exclusive first
charge by way of equitable mortgage of leasehold factory land & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur,
Dist. Dhar (M.P.) 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 of hypothecation of entire machineries, electrical installations and other movable fixed assets of the
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 of the Company).
There repayment is as -
(i) Rupee Term Loan I (No.-83511438) of Rs. 91.09 Lakhs having interest rate 7.50% (Previous year balance is Rs. 272.69 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. Nil having interest rate 7.50% (Previous balance is Rs. 54.83 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. 155.37 Lakhs having interest rate 7.50% (Previous year balance is Rs. 217.58 Lakhs
interest rate 9.09% ) is repayable in Eighty Nine Equated Monthly Installment ofRs. 6.45 Lakhs starting from June, 2021 to July, 2028.
(iv) Rupee Term Loan IV (No.-450555362) GECL- 01 of Rs. Nil having interest rate 9.25% (Previous year balance is Rs. 25.33 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 Guanteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs.
Nil (Previous year balance is Rs. 57.67 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. Nil (Previous year balance is 57.67 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 Term Loan
(i) Term Loan (Car Loan-Tucson) from HDFC of Rs. 13.23 Lakhs having interest rate 7.90 %(Previous year balance Rs 20.37 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. 18.31 Lakhs having interest rate 8.90 % (Previous year balance Rs 28.62 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- 1756) from Bank ofBaroda ofRs. 12.99 Lakhs having interest rate 8.50 % (Previous year balance is 16.62 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 of Rs. 3.29 Lakhs in September, 2028. The term loan is secured by hypothecation of Innova Car.
(iv) Term Loan (Car Loan- 1952) from Bank of Baroda of Rs. 11.58 Lakhs having interest rate 8.50 % (Previous year balance is Rs. 14.12
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 of Rs. 2.58 Lakhs in May, 2029. The term loan is secured by hypothecation of XUV700 Car.
(v) Term Loan (Car Loan- 4742) from Bank of Baroda of Rs. 121.00 Lakhs having interest rate 7.60 % (Previous year balance is Rs. Nil) is
repayable in Sixty equated monthly instalment of Rs. 2.43 Lakhs each commencing from May, 2026 to March, 2031 and last installment
of Rs. 2.43 Lakhs in April, 2031. The term loan is secured by hypothecation of BMW Car.
(vi) Term Loan (Car Loan- 002) from Mercedes - Benz Financial Services India Private Limited of Rs. 134.00 Lakhs having interest rate
7.49 % (Previous year balance is Rs. Nil) is repayable in Thirty Six monthly instalment of Rs. 4.08 Lakhs each commencing from May,
2026 to March, 2029 and last installment of Rs. 4.16 Lakhs in April, 2029. The term loan is secured by hypothecation of Mercedes Car.
(vii) Term Loan (Car Loan- 000) from Indian Overseas Bank of Rs. 23.11 Lakhs having interest rate 7.80 % (Previous year balance is Rs. Nil)
is repayable in Thirty Six eqauted monthly instalment of Rs. 0.93 Lakhs each commencing from July, 2025 to May, 2028 and last
installment of Rs. 0.93 Lakhs in June, 2028. The term loan is secured by hypothecation of Mahindra Xev Car.
Other Information
Terms of Repayments of loan
Kotak Mahindra Bank Limited
Working Capital Loan from Kotak Mahindra Bank Limited of Rs. 7,410.48 Lakhs having interst rate 7.50% (Previous balance
Rs. 6,353.77 Lakhs, interest rate 8.45%) is secured by first and exclusive hypothecation charge on all existing and future
current 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 first & 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
(Techtex) Leasehold Landand Building thereon.
(f) Property situated at Plot No. F-13-A Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold
land and building thereon.
The Working loan is also guaranteed by Shri Anil Choudhary Managing Director, Smt. Ranjana Choudhary, Whole Time
Director ofthe Company and Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).
HDFC Bank Limited
Working Capital Loan from HDFC Bank Limited of Rs. 488.94 Lakhs having interest rate 7.50% (Previous balance Rs. 53.20
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 Sector - I, Pithampur, Dhar (M.P.)
consisting of leasehold land and building thereon. It is further secured by exclusive first charge by way of equitable mortgage
of leasehold factory land & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.)
State Bank of India
Working Capital Loan from State Bank of India of Rs. 430.32 Lakhs (Previous balance Rs. Nil 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 ofthe Company.
a. Information about government grant
Information about government grant under Deen Dayal Upadhyaya Grameen Kaushalaya Yojna
1 Nature of Grant : The company has entered into MOU for execution of projects under Deen Dayal Upadhyaya Grameen Kaushalaya
Yojna (DDU-GKY) Guidelines july 2016, (as may be amended from time to time the skill training and placement programme of the
ministry of rural development (MoRD). Grants-in Aid is provided to the company for the execution of aforsaid purpose
Information about government grant under Mukhya Mantri Sheekho Kamao Yojna & Samarth Enrty Level
2 Nature of Grant :
1. The Company has entered into MOU for execution of projects under Mukhya Mantri Sheekho Kamao Yojna (MMSKY) &
2. MOU for Samarth Enrty Level dated 11.03.2022 with Secretary MOT ( GOI ) , (as may be amended from time to time the scheme
for capacity Building in Textile Sector, provided to the Company for the execution of aforsaid purpose
a. Defined Contribution Plans :
All eligible employees of the Company in India are entitled to receive benefits under the provident fund plan. The Company
makes provident fund contribution, a defined contribution plan, for qualifying employees. It also contributes to employee state
insurance corporation,which is also defined contribution plan. The Company recognised Rs. 210.47 lakhs (Previous Year :
200.18 lakhs) and Rs. 114.62 lakhs ( Previous Year : Rs. 106.54 lakhs) respectively for PF and ESIC contruibution in statement
of profit and loss Provident fund and ESIC are managed through government administered funds.
of employment.
The Company has opted the Employee Group Gratuity Scheme of the 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 of the defined benefit obligation and the related current service cost were as measured and provided to us
by a consulting actuary.
In respect of Sales Tax
Demands amounting to Rs. 221.48 lakhs ( Previous Year 186.69 Lakhs) have been raised by the Direct & 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.
(iv) The company has not revalued its intangible assets.
Trade Receivables :
Difference in trade receivables is due to following reasons -
a. Recognition of revenue and trade receivables is made as per principles of Ind AS 115 at the time of finalisation of
financial statements. Whereas trade receivables are reported to banks without applying principles of Ind AS 115.
b. Making of adhoc loss allowance when submitting statements to the bank while loss allowance as per Ind AS 109 is
made while finalising financial statements.
(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 gurantee, 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.
Other Information
1 Remuneration paid to Key Managerial Person
The above figures do not include provisions for gratuity as separate actuarial valuation are not available and the cost to develop
it would be excessive.
"The contributions to defined contribution plans for key management personnel in respect of Provident fund is Rs. 0.86 lakhs
(Previous Year : Rs. 0.86 lakhs)"
2 Terms and Conditions for Outstanding Balances:
The balances are unsecured and would be settled in money.
3 Guarantee Given or Received by or to any Related Party
The Loan of Rs. 11016.22 Lakhs (Previous Year Rs. 9184.07 Lakhs) is guaranteed by Shri Anil Choudhary (Managing
Director) and Smt Ranjana Choudhary (Whole Time Director)
40 Corporate Social Responsibility (CSR)
(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII there of by the
company during the year is Rs.24.62 Lakhs (Previous Year Rs. 26.82 Lakhs).
(b) Expenditure related to Corporate Social Responsibility is Rs. 23.71 Lakhs (Previous Year Rs. 29.68 Lakhs)
41 Research & Development
The Company has carried out R&D for the following -
Development of Electrostatic FIBC, UN FIBC, Ventilated Bags, FIBC Liners, Poly Tarpauline, Container Bags, UN Tarpauline,
Geomembrane and Vermibed. The Company is in the process of Development of Ventilated Fabric without monofilament
locking and Primary Carpet Backing with ultra-low shrinkage tapes. The Company is planning for Development of insect
resistance mosquito net, Fire retardant tarpauline, Polyster Woven Geotextiles, Reflective Ground Cover, HDPE Geomembrane
Scrim Fabric.
The Company also got Recognition of its In-House R&D Centre from Department of Scientific and Industrial Research (DSIR),
Ministry of Science and Technology, New Delhi.
(c) Investment by the loanees in the shares ofthe Company
During the year Pravi Investments LLP (Loanee) has converted its 387000 preferential warrants into equity shares and has the
outstanding 6,13,000 warrants pending for conversion as on the date of balance sheet. The total shareholding of Pravi
Investments after conversion of3,87,000 preferential warrants is 15.85 Lakhs shares.
(d) Refer Note 4 for details of Investments in subsidiaries, associates and other entities
(e) Details of guarantees given
Corporate Guarantee given to Kotak Mahindra Bank Limited for credit facility availed by Comsyn India Private Limited
outstanding Rs. 261.37 Lakhs (Previous Year Rs. 282.93 Lakhs)
Corporate Guarantee given to HDFC Bank Limited for credit facility availed by Comsyn International Private Limited
outstanding Rs. 730.82 Lakhs (Previous Year Rs. Nil)
(f) The Company has provided security covered under Section 186.
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.
d3. Interest Rate Risk
The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its
financial instruments, principally debt. Any movement in the reference rates could have an impact on the Company’s cash
flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities.
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 13,723.72 lakhs ( Rs 9,963.66 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,
2026 and 31st March, 2025. 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.
44 f. Derivative financial instruments and hedging activity
The company’s revenue is denominated in various foreign currencies. Given the nature the business, a large portion of costs are
denominated in Indian Rupees. This exposes the company to currency fluctuations.
The Board of Directors have constituted a Risk Management Policy to frame, implement and monitor the risk management plan
of the company which inter alia covers risks arising out of exposure of foreign currency fluctuations.
The company uses various derivative instruments such as foreign exchange forward in which the counter party is generally the
bank.
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