Corporate information:
Duropack Limited (“The Company”), incorporated in October 23, 1986. It is engaged in manufacturing of packaging
materials in the form of bags, pouches, laminated films, multi-laminated films etc. The Company is a public company
limited by shares, incorporated and domiciled in India and is listed at Bombay Stock Exchange (Scrip Code: 526355).
1. Significant Accounting Policies.
Set out hereunder are the significant accounting policies adopted by the company in the preparation of the accounts for
the year ended 31st March, 2025. There is no material change in accounting policies of the Company.
a) Basis of Preparation:
The financial statements comply, in all material aspect, with Indian Accounting Standards (Ind AS) notified under section
133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015 and notified by Ministry
of Corporate Affairs (“MCA”)] and other relevant provisions of the Act.
The accounts of the Company are prepared under the historical cost convention except for certain financial instruments
that are measured at fair value at the end of each reporting period, as explained in the accounting policies below. The
accounts are prepared in accordance with the applicable accounting standards issued by the Institute of Chartered
Accountants of India and relevant provisions of the Companies Act, 2013 except where otherwise stated. There is no
material change in the accounting policies of the company as compared to the previous year.
The Entity, generally, follows mercantile system of accounting and recognizes significant items of income and expenditure
on accrual basis except in case of significant uncertainties.
The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a
reasonable and prudent basis taking into account all available information, actual results could differ from these estimates
and assumptions and such differences, if arise, are recognized in the period in which the results are crystallized.
iii) Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and
other criteria set out in Schedule III to the Companies Act, 2013 and Ind AS-1- Presentation of Financial Statements
based ON the nature of services and the time between the acquisition of assets for processing and their realization in cash
and cash equivalents.
iv) Property, Plant and Equipment
Property, Plant and Equipment are stated at historical cost less depreciation and amortization and impairment losses, if
any. Such cost includes purchase price, borrowing cost, inward freight, duties, taxes and any other cost directly
attributable to bringing the assets into its working conditions for its intended use. As per management decisions, dies and
moulds, having lifespan of less than one year, have not been capitalized as per Companies Act, 2013, but have been
treated as consumable. Subsequent costs are included in the assets carrying amount only when it is probable that future
economic benefits associated with the item will be realized. All other repairs and maintenance costs are charged to the
Statement of Profit and Loss, as incurred.
Depreciation Method
Depreciation on Property, Plant and Equipment is provided on Straight Line Method. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except in respect of the following assets,
where useful life is different than those prescribed in Schedule II.
v) Impairment of Assets
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use.
vi) Inventories
Inventories are valued at lower of cost and net realizable value. Net realizable value represents the estimated selling price
for inventories less all estimated costs of completion and costs necessary to make the sale. Inventory of raw material,
stock-in-trade, stores and spares and finished goods are measured using FIFO (First In First Out) basis, whereas work-in¬
progress are valued on the basis of material's FIFO rate, its cost of conversion and other costs incurred.
vii) Investment properties
Property that is held for long term rental yields or for capital appreciation or both, and that is not occupied by the company
(if any), will be classified as Investment Property. Investment Property will be initially measured at cost, including related
transactions costs and where applicable borrowing costs. Subsequent expenditures are capitalized to the assets carrying
amount only when it is probable that future economic benefits associated with the item will be measured reliably. All other
repairs and maintenance costs are charged to the statement of Profit and Loss as incurred.
Investment Properties are depreciated using the straight-line method over their estimated useful lives. Investment
properties generally have a useful life of 30 years.
viii) Intangible Assets
Company will amortize intangible assets (if any) with a finite life using the straight-line method over 5 years.
ix) Revenue Recognition
The Company derives its revenues from multiple products and services including flexible packaging products, and related
activities, etc. Revenue from sale of goods is recognised at a point in time when the control has been transferred subject
to the terms with the customers, which generally coincides with dispatch of goods to customers in case of domestic sales
and on the basis of bill of lading in the case of export sales. The performance obligations in our contracts are fulfilled at
the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Revenue is measured on the basis of contracted price, after deduction of any trade discounts, volume rebates and any
taxes or duties collected on behalf of the government such as goods and services tax, etc. Revenue is only recognised to
the extent that is highly probable a significant reversal will not occur.
Customers have the contractual right to return goods only when authorised by the company.
Revenue from sale of services are measured at fair value of the consideration received or receivable, after deduction of
any sort of discounts and any taxes or duties collected on behalf of the government such as goods and services taxes.
Income from services rendered is recognised based on agreements/arrangements with the customers as the service is
performed and there are no unfilled obligations.
x) Employees benefits:
The undiscounted amount of short-term employee benefits expected to be paid in exchange of services rendered by
employees is recognized during the period when the employee renders the services. These benefits include salaries,
bonus and performance incentives.
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits and they are recognized in the period in which the employee renders the related service. These benefits include
salaries and wages, bonus etc. The Company recognizes the undiscounted amount of short term employee benefits
expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount
already paid.
Defined contribution plan
In respect of the retirement benefit in the form of provident fund, the Entity's contribution paid/payable under the schemes
is recognized as an expense in the period in which the employee renders the related service. The Entity's contributions
towards provident fund, which are being deposited with the recognized provident fund, are charged to the Statement of
Profit and Loss.
Post-Employment Benefits
Gratuity
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company's liability is
actuarially determined (using the Projected Unit Credit method) at the end of each year. The present value of the defined
benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government
bonds. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive income in the period in which they arise.
xi) Financial Instruments
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are
adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognized using trade date
accounting.
B. Subsequent measurement
Debt Instrument
* Financial assets carried at amortized cost (AC)
A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
* Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
* Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories is measured at FVTPL.
Equity Instruments
The Company subsequently measures all equity investments at fair value. Where the company's management has
elected to present fair value gains and losses on equity investments in other comprehensive income, there is no
subsequent reclassification of fair value gains or losses to profit or loss as other income when the company rights to
receive payment is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in other gain/ losses in the
statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investment measured at
FVOCI are not reported separately from other changes in fair value.
C. De-recognition of financial instruments
A financial asset is derecognized only when:
• The company has transferred the rights to receive cash flows from the financial assets or
• Retains the contractual rights to receive the cash flows of the financial assets, but assumes contractual obligations
to pay the cash flows to one or more recipients.
Where the company transferred the financial assets, the company evaluates whether it has transferred substantially all
risks and reward of ownership of the financial assets. In such cases, the financial asset is derecognized. Where the entity
has not transferred substantially all risks and rewards of the ownership of the financial assets, the financial assets is not
derecognized.
Where the company retains control of the financial assets, the asset is continued to be recognized to the extent of
continuing involvement in the financial assets.
xii) Earnings per share
Earnings per share are calculated by dividing the profit attributable to owners of the company by the weighted average
number of equity shares outstanding during the financial year.
xiii) Taxes on Income
a) Current Income Tax
Current Income tax assets and liabilities are measured at the amount expected to be paid to the taxation authorities. The
tax rate and tax laws are used to compute are those that are enacted or substantively enacted, at the reporting date
together with any adjustments to tax payable in respect of previous years.
b) Deferred Tax
Deferred Tax is provided on temporary difference between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all
deductible temporary differences to the extent it is probable that future profits will be available against which deductible
temporary differences can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the assets are
realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Deferred tax relating to item recognized outside profit or loss is recognized outside profit or loss (either OCI or in equity).
Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
xiv) Use of estimates and judgments:
The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgments and assumptions. Provisions involving substantial degree of estimation in measurement are recognized when
there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.
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