j) Provisions
A provision is recognized when an enterprise has a present obligation (legal or constructive) as result of past
event and it is probable that an outflow of embodying economic benefits of resources will be required to settle
a reliably assessable obligation. Provisions are determined based on best estimate required to settle each
obligation at each balance sheet date. 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 recognised as a finance cost.
k) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or
a present obligation that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent
liability but discloses its existence in the financial statements.
l) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding during the year is adjusted for
events of bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
m) Taxes
Tax expense comprises of current and deferred tax.
Current income tax
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between
taxable income and accounting income for the year and reversal of timing differences of earlier years. Current
income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred income tax
The Company is incurring losses for the past many years and operations have stopped for the past 6 years. In
view of this, neither Deferred Tax Assets or Liabilities are recognised
Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the recognition and measurement principles of IND
AS requires management to make judgements, estimates and assumptions that affect the reported balances of
revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertaininty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.
n) Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.
i) Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This reassessment may result in change in depreciation expense in future periods.
ii) Provisions and contingent liabilities
A provision is recognised when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which the
reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are
not discounted to its present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the
current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent
asset is neither recognised nor disclosed in the financial statements.
16. Contingent Liabilities
Sales Tax case with the Appellate Tribunal for the year 2002-03 has been upheld in the favour of the revenue and the balance
that is payable has been duly remitted. There are no contingent liabilities as on 31st March, 2024.
17. Financial Instruments-accounting classification and fair value measurement
The carrying values of trade and other receivables, other assets, cash and short-term deposits, trade and other
payables, based on their national amounts, reasonably approximate their fair values because these are mostly short
term in nature or are re-priced frequently.
18. Financial risk management objectives and polices
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Senior Management overseas
the management of these risks. The Company’s senior management ensures that the company’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarized below.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings.
ii) Interest Rate Risk
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’s exposure to the risk of changes in market interest
rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company
manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
iii) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its trade receivables.
iv) Liquidity Risk
The Company’s objective is to maintain a balance between continuity of funding and flexibility through the
use of bank deposits and loans.
19. Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital
management is to maintain strong credit rating and healthy capital ratios in order to support its business and maximise
the shareholder value.
22. Going Concern basis of accounting
As the Company has suspended its manufacturing operations and has sold of its land, buildings and manufacturing
facilities and in the absence of final action plan / affairs and operations of the Company, the Financial Statements of
the Company have not been prepared on a going concern basis. These Financial Statements have been prepared on a
realizable value basis.
23. External Confirmations
The Company has not obtained confirmation of balances from the parties from whom monies are receivable / to
whom monies are payable. The management is of the view that absence of confirmation of balances will not have any
adverse impact on the financial statements.
OTHER NOTES:
a) No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.
b) The Company has complied with the no. of layers prescribed u/s 2(87) read with the applicable Rules.
c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237.
d) Thecompany has not advanced/loaned/invested or received funds (either borrowed funds or share premiumorany other sources or kind of funds) to
any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) thatthe
Intermediary shall directlyor indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalfof the company
(Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
e) There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.
f) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
g) Previous year figures have been regrouped /reclassified wherever necessary to suit the current year's layout.
Note: During the financial year the company has not carried out any commerical operations and the ratios are not comparable to the previous
year. The company has liquidated the deposits and repaid the outstanding loans.
As per our report of even date attached
For GMK Associates For and on behalf of the Board of Directors
Chartered Accountants Deccan Polypacks Limited
FRN: 006945S CIN: L24134TG1984PLC005215
M S Prakasa Rao DRSP Raju DV Prudvi Raju
Partner Director Whole Time Director
Membership No. 027278 DIN: 00306612 DIN: 03024648
Place : Hyderabad
Date : 28-05-2024
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