(m) Provisions
A provision is recognized when an enterprise has a present obligation because of past
event and it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to their present value and are determined based on the best estimate required
to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
(n) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence
will be confined 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. 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.
(o) Cash and cash equivalent
Cash and cash equivalents for the purposes of cash how statement comprise cash at bank
and in hand and short-term investments with an original maturity of three months or
less.
(p) Segment reporting policies
The Company prepares its segment information in conformity with the accounting
policies adopted for preparing and presenting the financial statements of the Company as
a whole.
Based on the guiding principles given in AS-17 "Segment Reporting" notified under Companies (Accounting Standards)
Rules, 2006, the Company's primary business segment is trading of paper and related items. Considering the nature of
nature of Company's business and operations, there are no separate reportable business segment, as there is only one
business segment and hence, there are no additional disclosures required to be provided other than those already
provided in the financial statements.
(g) details of related party transactions, e.g., contribution to a trust controlled by the company
in relation to CSR expenditure
No such transaction
(h) where a provision is made with respect to a liability incurred by entering into a contractual
obligation, the movements in the provision during the year should be shown separately.
40. Additional Disclosures
a) Title Deeds of all the immovable properties (other than properties where the Company is
the lessee and the lease agreements are duly executed in favour of the lease) are held in the
name of the company.
b) The Company has not revalued its property, plant and equipment or intangible assets or
both during the year.
c) The Company has not granted loans or advances in the nature of loan to any promoters,
Directors, KMPs and the related parties (As per Companies Act, 2013), which are
repayable on demand or without specifying any terms or period of repayments.
d) There is no Capital Work in Progress (CWIP) at the end of financials year.
e) There are no Intangible assets under development at the end of financials year.
f) There are no proceedings initiated or pending against the Company for holding any benami
property under the Prohibition of Benami Property Transactions Act, 1988 and res made
there under.
g) The Company has been sanctioned working capital amounts from banks on the basis of
security of inventories, Cash and cash equivalents and Trade receivables. The company is
regular in filing the monthly return/stock statement with bank. Further, the quarterly
returns or statements of current assets filed by the Company with banks or financial
institutions are in agreement with the books of accounts.
h) The Company has not been declared a wilful defaulter by any bank or financial institution
or by any other lender.
i) The Company does not have any material transactions with struck-off Companies.
j) The Company do not have any charges or satisfaction which is yet to be registered with
Registrars of Companies (ROC) beyond the statutory period.
k) The company is in compliance with number of layers of companies prescribed under clause
(87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017.
l) The ratios prescribed under Schedule III of the Companies Act, 2013 are given at the end
of notes.
m) No Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013 during the current financial year.
n) The Company have not advanced or loaned of invested funds (either borrowed funds or
share premium or any other sources or kind of funds) to any other person(s) or entity (ies),
including foreign entitles (Intermediaries) with the understanding that the Intermediary
shall,
(1) directly or indirectly lend or invest in other persons of entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(2) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
o) The Company have 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,
(1) 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) received any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
p) The Company have not any 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
q) The Company has not traded or invested in Crypto currency or virtual currency during the
financial year
(ii) Defined Benefit Plans
The Company has a defined gratuity plan. Every employee who has completed five years (not
applicable for death/disability) or more of services, gets a gratuity on departure at 15 days basis
salary (last drawn) for each completed year of service on terms not less favourable than the
provisions of the payment of Gratuity Act, 1972. The following tables summarise the components
of net benefit expense recognised in the statement of profit and loss and the defined benefit
obligation recognised in the balance sheet.
The following tables summarise the components of net benefit expense recognised in the
statement of profit and loss and the funded status and amounts recognised in the balance sheet
for the respective plans.
42. During the current financial year, the company has raised funds amounting to Rs. 4,115.16
lakhs through Initial Public Offering by way of listing on SME Platform. The company has
issued its equity shares having Face Value of Rs. 10 each at a premium of Rs. 128 each, resulting
in increase of Equity Share Capital and Security Premium account by Rs. 298.20 Lakhs and Rs.
3,816.96 Lakhs respectively.
43. For raising the money through IPO, the company has incurred total expenditure of Rs. 336.14
Lakhs on account of underwriting fees, market maker fee, advertisement, listing fee etc. The
company has adjusted the same against the Security Premium account and no amount has been
debited to Statement of Profit & Loss account.
44. The Parliament has approved the Code on Social Security, 2020 which could have a likely
impact on the contributions made by the company towards Provident Fund and Gratuity. The
Ministry of Labour and Employment has released draft rules for the Code on Social Security,
2020 on 13th November 2020 and has invited suggestions from stakeholders which are under
active consideration by the Ministry. The effective date from which the Code and applicable
rules shall be applicable is yet to be notified. The Company shall assess and evaluate the likely
financial impact once the subject rules are notified and become effective.
45. Previous year figures have been regrouped/rearranged where considered necessary to confirm
those of current year classification.
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