j) Provisions and Contingent Liabilities:
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. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current
pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed 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
will be required to settle the obligation or a reliable estimate of the amount cannot be made.
k) Revenue Recognition
Sales represents amounts received and receivable from the goods supplied to the customers. Sales are recognized when
control of the goods has been transferred to the customer. Controls are transferred by satisfying the performance obligation
of the contract. Revenue towards satisfaction of a performance obligation is measured at the transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of the goods sold is net of variable
consideration on account of various discounts and schemes offered by the Company as part of the contract.
Income from export incentives such as duty drawback and premium on sale of import licenses are recognised on accrual basis.
Incentives are recognized when there is reasonable assurance that the Company will comply with the conditions and the
incentive will be received. Duties and taxes waivers for capital assets purchased under Export Promotion Credit Guarantee
(EPCG) schemes are recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis
over the periods in which the related performance obligations are fulfilled.
Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on
deposits, loans and interest bearing securities is recognized on a time proportionate method using underlying interest rates.
Insurance claims are recognised when there exists no significant uncertainty with regard to the amounts to be realised and
the ultimate collection thereof.
l) Government grants:
Government grants related to expenditure on property, plant and equipment are credited to the statement of profit and loss
over the useful lives of qualifying assets or other systematic basis representative of the pattern of fulfilment of obligations
associated with the grant received. Government grants received is subject to any condition to be fulfilled by the Company,
recognition of grant in the statement of profit and loss is made on a systematic basis in proportion to fulfillment of such
condition. Total grants received less the amounts credited to the statement of profit and loss at the balance sheet date are
included in the balance sheet as deferred income.
m) Expenditure:
Expenses are accounted on accrual basis.
n) Employee Benefits:
Defined contribution plans
Contributions to defined contribution schemes such as employees' state insurance, labour welfare fund, superannuation
scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be
made as and when services are rendered by the employees. Company's provident fund contribution, in respect of certain
employees, is made to a government administered fund and charged as an expense to the Statement of Profit and Loss. The
above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond
the monthly contributions.
Defined benefit plans
The Company's Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end of
each financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the
measurement procedure as per Indian Accounting Standard (Ind AS)-19., 'Employee Benefits' These liabilities are funded on
year-to-year basis by contribution to respective funds. The costs of providing benefits under these plans are also determined
on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized
through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
The Defined Benefit Plan can be short term or Long terms which are defined below:
a. Short-term Employee Benefit
All employees' benefits payable wholly within twelve months rendering services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the
expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.
b. Long-term Employee Benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of the defined benefit obligation
at the balance sheet date.
o) Impairment of Non-Financial Assets:
At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment and intangible
assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through
continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the
extent of impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the
Company estimates the recoverable amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset
exceeds its recoverable amount.
Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to
the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that
would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years.
A reversal of an impairment loss is recognised in the statement of profit and loss immediately.
p) Extinguishment of financial liabilities with equity instrument
When any financial liability is extinguished in exchange of equity instruments; the difference if any, between the carrying
amount of the financial liability extinguished and the fair value of equity instrument issued or exchanged (whether explicitly
or constructively) is recognized in profit and loss statement in the period in which such extinguishment takes place.
q) Income Taxes:
Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and
Loss except to the extent it relates to an item which is recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the
Balance Sheet date, and any adjustment to taxes in respect of previous years.
Deferred tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred
income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is
recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off against future income tax liability. MAT is recognised as deferred
tax assets in the Balance Sheet when the asset can be measured reliably and it is probable that the future economic benefit
associated with the asset will be realised.
r) Leases:
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is reasonably certain. The company makes an assessment on the
expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to
extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to Emami's operations taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the
current economic circumstances.
s) Foreign Currency Transactions and Translations
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions are recognised in the Statement of Profit and Loss
at the end of each reporting period.
In accordance with Ind AS 101, the company has continued capitalization of exchange differences arising on long-term
foreign currency monetary items outstanding as on 31st March, 2016 in accordance with paragraph 46A of Accounting
Standard 11, "The Effect of Changes in Foreign Exchange Rates". Accordingly, exchange differences arising from such long
term foreign currency monetary items relating to the acquisition of a depreciable asset are added to or deducted from the
cost of the depreciable capital asset. Other exchange differences are recognized as income or expenses in the Statement of
Profit & Loss.
Monetary Assets and Liabilities in foreign currency that are outstanding at the year end are translated at the year end
exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
t) Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each
reporting period. The resulting gains / losses is recognised in the Statement of Profit and Loss immediately unless the
derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or loss /
inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the
hedged item.
The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge
instruments. At the inception of the hedge relationship, the Company documents the relationship between the hedge
instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge
transaction, which can be a fair value hedge or a cash flow hedge.
a. Fair value hedges -
Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or
loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the
hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in fair value
of the hedged item attributable to the hedged risk are recognised in the Statement of Profit and Loss in the line item
relating to the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising
from the hedged risk is amortised to profit or loss from that date.
b. Cash flow hedges -
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in the other comprehensive income. The gains / losses relating to the ineffective portion is recognised in the
Statement of Profit and Loss.
Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when
the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a
non-financial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included
in the initial measurement cost of the non-financial asset.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated
in equity at that time remains in equity and is reclassified when the underlying transaction is ultimately recognised.
When an underlying transaction is no longer expected to occur, the gains / losses accumulated in equity is recognised
immediately in the Statement of Profit and Loss.
u) Segment Reporting:
An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed by the company's chief operating decision maker to
make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS
108, the chief operating decision maker evaluates the Company's performance and allocates resources based on an analysis
of various performance indicators by business segments and geographic segments.
v) Earnings Per Share:
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the
Company by the weighted average number of equity shares outstanding during the period. The weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.
w) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated.
x) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.
Discounts or premiums and expenses on the issue of debt securities are amortised over the term of the related securities
and included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of future finance
costs, are written off as borrowing costs when paid.
y) Non -Current Assets Held for Sale
The Company classifies assets and disposal groups as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use and a sale is considered highly probable.
The sale is considered highly probable when the management has a committed plan for selling those assets and the sale
is expected to be completed sale within one year from the date of classification as held for sale. The actions required to
complete the plan of sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan
will be withdrawn.
Assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less cost
of disposal.
Immediately before the initial classification of the asset (or disposal group) as held for sale, the carrying amounts of the asset
(or all the assets and liabilities in the group) are measured in accordance with applicable Ind AS.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.
z) Fair value measurements
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance
sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability In an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
Ý In the principal market for the asset or liability.
Or
Ý In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole;
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Convertible Non-Cumulative Redeemable Preference Shares (OCRPS). The company had the option for converting the OCRPS Into
a fixed number of equity shares upon the completion of 12 years from the date of allotment. Additionally, provisions existed for early
redemption or conversion, subject to mutual agreement between the Company and the OCRPS holders at a duly convened meeting.
However, the Company's option to convert the OCRPS into equity shares was subject to a knock-out condition, whereby such
conversion would become non-exercisable if the average market price of the Company's equity shares during the 26 weeks
immediately preceding the redemption or proposed conversion date was less than H180 per share. Upon the occurrence of such an
event, the Company would be obligated to redeem the OCRPS at a predetermined value.
On the scheduled date of redemption/conversion of 20,00,000 shares i.e., 28th March, 2025, the knock-out condition was triggered,
as the average market price of the equity shares fell below H180 per share. Consequently, the Company was not permitted to exercise
the option of conversion.
Subsequently, with the prior approval of both the OCRPS holders and the equity shareholders, the tenure of the said preference
shares has been extended by an additional four years and the shares have been reclassified as 8% Non-Convertible Non-Cumulative
Preference Shares (Series I NCRPS), bearing the same 8% non-cumulative dividend.
These Series I NCRPS shall be redeemable at a premium of H716 per share, and the redemption shall take place at the end of four
years from the date of variation, i.e., upon completion of 16 years from the original date of allotment. These Series 1 NCRPS may be
redeemed before maturity at mutually agreed premium.
The OCRPS is classified as an equity instrument, and its classification is evaluated at each reporting period. Based on the Company's
evaluation, supported by the opinion of an independent expert, no change in classification is required for the current year.
The NCRPS is classified as long-term debt, measured at an amortized cost from the date of variation in its terms. The difference
in valuation arising from the reclassification of 20,00,000 Preference Shares from equity to debt has been adjusted against
retained earnings
The Company declares and pays dividends in Indian Rupees on a pro-rata basis from the date of allotment. Dividends proposed by the
Board of Directors are subject to shareholder approval at the ensuing Annual General Meeting. Holders of OCRPS and NCRPS have
voting rights on matters relating to their respective classes of shares.
In the event of liquidation of the Company prior to conversion or redemption, OCRPS and NCRPS holders shall have priority over
equity shareholders in the repayment of capital.
Retained earnings
This represents the cumulative profits that the company has earned till date, less any transfers to General reserve, dividends or other
distributions paid to shareholders. and can be utilized in accordance with the provisions of the Companies Act, 2013"
Securities premium
This reserve represents the amount of premium received on issue of shares, which may be utilised for purposes specified under the
Companies Act, 2013.
General reserve
This represents free reserves of the Company created through transfer of profits from retained earnings.
Capital reserve
This reserve represents the excess of net assets purchased over consideration paid against the identifiable assets.
Equity instruments through other comprehensive income
This reserve represents the cumulative gains (net of losses) arising on the valuation of Equity instruments measured at fair value
through Other Comprehensive Income, net of amounts reclassified to retained earnings when those equity instruments are
disposed off.
Defined benefit plans through other comprehensive income
This reserve represents actuarial gain (net of losses) arising from the remeasurement of defined benefit plans including change in
actuarial assumptions of gratuity liability.
2.50 DISCLOSURES ON FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional information on
balance sheet items that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed
in Note 2 (i) to the financial statements.
(a) Financial assets and liabilities
The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at 31st March,
2025 and 31st March, 2024.
The company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The
Company's senior management has the overall responsibility for establishing and governing the Company's risk management
framework. The Company has established a Risk Management system, which is responsible for developing and monitoring the
Company's risk management policies. The Company's risk management policies are established to identify and analyse the risks faced
by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and
reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of
the Company.
A. MANAGEMENT OF LIQUIDITY RISK
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company 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 the financial liabilities on a day-to¬
day basis.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest
bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
The following table shows the maturity analysis of the Company's financial liabilities and financial asset based on contractually
agreed cash flows along with its carrying value as at the Balance Sheet date.
The above risks may affect the Company's income and expenses, or the value of its financial instruments. The Company has a risk
management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and
liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific
market movements cannot be normally predicted with reasonable accuracy.
a) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and
equity, where any transaction references more than one currency or where assets/liabilities are denominated in a
currency other than the functional currency.
Considering the countries and economic environment in which the Company operates, its operations are subject to
risks arising from fluctuations in exchange rates. The risks primarily relate to fluctuations in U.S. dollar, Euro and GBP
against the functional currencies of the Company.
The Company, as per its risk management policy, uses forward cover and other derivative instruments primarily to hedge
foreign exchange exposure. Any weakening of the functional currency may impact the Company's imports, exports and
cost of borrowings and consequently may impact profitability of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.
The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate
exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each
currency by 1%.
1% appredation/depredation of the respective foreign currencies with respect to functional currency of the Company
would result in decrease/increase in the Company's net profit/(loss) before tax by approximately H0.22 crores and H0.02
crores for financial assets and financial liabilities respectively for the year ended March 31, 2024.
b) Interest rate risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. 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. The Company's interest
rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial
instruments to manage the liquidity and fund requirements for its day to day operations like short-term loans.
c) Equity Price risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities. The company
is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion
which are accordingly measured at fair value through Other Comprehensive Income.
The fair value of Company's investment in quoted equity securities as at March 31, 2025 and March 31, 2024 was
H54.i1 crores, and H40.03 crores, respectively. A 10% change in equity price as at March 31, 2025 and March 31, 2024
would result in an impact of H5.41 crores and H4.00 crores, respectively.
(Note: The impact is indicated on equity before consequential tax impact, if any).
(ii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
The Company is exposed to credit risk mainly from trade receivables and other financial assets. The Company only deals with
parties which has good credit ratings / worthiness based on company's internal assessment.
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.
Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a
single class of financial assets.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in treasury bills,
government securities, money market liquid mutual funds and derivative instrument with financial institutions. The Company
has set counter-parties limits based on multiple factors including financial position, credit rating, etc.
The Company's maximum exposure to credit risk as at 31st March, 2025 and 31st March, 2024 is the carrying value of each
class of financial assets.
C. COMPETITION AND PRICE RISK MANAGEMENT
The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage
in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of
its customers.
D. COMMODITY PRICE RISK MANAGEMENT
Commodity price risk for the Company is mainly related to fluctuations in raw material prices linked to various external factors,
which can affect the production cost of the Company. Since the raw material cost costs is one of the primary costs drivers, any
fluctuation in raw material prices (pulp and waste paper etc.) can lead to variability in operating margin.
The company has developed sustainable relation with leading domestic and international suppliers of raw material, which
enable procurement at most competitive rates. Dedicated expert team and market intelligence supports the company
procurement functions.
E CAPITAL RISK MANAGEMENT
The Company's policy is to maintain an adequate capital base with the objective to create value for the shareholders along
with maintaining creditor and market confidence. Capital includes issued capital, share premium and all other equity reserves
attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or
reduce capital, as the case may be.
2.54 FAIR VALUE HIERACHY
Level 1 - Quoted Prices (Unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following tables presents fair value hierachy of assets and liabilities measured at fair value on a recurring basis -
2.60 Long term leases
Company as lessee
The Company has long term lease contracts for lands used In Its business and operations. The lease terms ranges upto 99 years. The
Company's obligations under Its leases are secured by the lessor's title to the leased assets.
The carrying amounts of right-of-use assets and its movement during the year Is disclosed in Note no 2.1 under the head Leasehold
land (RoU Assets)
2.61 Short term leases
The Company's leasing arrangements are in respect of short term leases. These leasing arrangements which are cancellable for period
of 11 months and the Company has elected not to recognize ROU assets hence, lease liabilities for short term leases and recognizes
the lease payments associated with these leases as an expense on a straight-line basis over the lease term. The Company has paid
lease rentals of H0.41 crore ( Previous year - H0.39 crore) which Is included in other expenses.
2.62 The Company's business activity falls within a single primary business segment which Is "Manufacture of Paper and Paper
Board” and the Company primarily operates In India. As per Ind AS 108 "Operating Segments”, specified under Section 133 of
the Companies Act, 2013, there are no reportable operating or geographical segments applicable to the Company.
2.64 The Company had foreign exchange earnings from export of H149.00 crores during the F.Y.2024-25 (last year - H114.97 crores).
2.65 Other Information in terms of the amendment in Schedule Ill of the Companies Act vide notification G.S.R. 207(E) dated 24th
March 2021.
a) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies
Act 2013 or Section 560 of Companies Act, 1956 during the financial year.
b) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company
for holding any benami property.
c) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or
ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.
e) The Company has not received any fund from any Person(s) or Entity(ies), including Foreign Entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
i) 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
2.65 (Contd.)
ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.
f) The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts and there are no material discrepancies between them.
g) The Company has no such transaction which is not recorded in the Books of Accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
h) The Company has not been declared willful defaulter by any Banks or any other Financial Institution at any time during
the financial year.
i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
2.66The Board of Directors has recommended a dividend of H1.60/- per equity share (80%) having face value of H2 each and H8/- per
preference shares (8%) having face value of H100/- each for the financial year 2024-25.
2.67 Corresponding figures of the previous period have been regrouped/ rearranged wherever necessary.
The accompanying notes are an integral part of these financial statements
In terms of our attached report of even date
For S K Agrawal and Co Chartered Accountants LLP For and on behalf of the Board
Chartered Accountants
Firm Registration Number : 3O6O33E/ E3OO272 Aditya V. Agarwal Manish Goenka
Executive Chairman Vice Chairman
DIN :OO149717 DIN :OO363O93
Sandeep Agrawal
Partner
Membership No. - O58553
Vivek Chawla Mukesh Kumar Agarwal D. Banthiya
Place: Kolkata Whole-time Director & CEO Chief Financial Officer Company Secretary
Date: 20th May, 2025 DIN : O2696336 M.No.: F - 7790
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