q Provisions, Contingent liabilities and Contingent assets
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 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 and 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.
As per our report of even date
For Rushabh R Shah and Co For and on behalf of the Board of
Chartered Accountants Essen Speciality Films Limited
Firm's Registration No. 156419W
Rushabh Shah Pallav K. Doshi Sunny D Mamtora
Proprietor Chairman and Whole time Director Company Secretary
Membership No. 607585 DIN: 02542047 M.No.:A62890
UDIN: 25607585BMKPMF8442
Place: Rajkot Jayantilal T. Jhalavadia Place: Shapar (Veraval)
Date: 5 May 2025 Chief Financial Officer Date: 5 May 2025
PAN:ABOPJ1358H
General Description of the Plan
The Entity operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to
fifteen days salary last drawn for each completed year of service. The same is payable on termination of
service or retirement, whichever is earlier. The benefit vests after five years of continuous service. In case of some
employees, the Entity's scheme is more favourable as compared to the obligation under Payment of Gratuity
Act, 1972.
The company has obtained gratuity valuation upto 31-03-2025 and thus the same has been provided upto
that period. No gratuity effect is given for the interim period.
Reasons for Variances
(a) Current Ratio: Variance in Current ratio because of more incrase in current liability as comapre to current
asset
(b) Debt-Equity Ratio: Variance in this ratio due to Increase in borrowings during the year.
(c) Debt Service Coverage Ratio: Variance in this ratio due to Increase in borrowings during the year.
(d) Return on Equity Ratio: Declined from 12.47% to 7.90%, driven by an increase in equity base (likely due to
bonus issue) and a fall in net profit, leading to lower returns generated on shareholders' funds.
(e) Inventory Turnover ratio : It is reduced from 4.08 to 3.04, indicating higher inventory holding periods and
reduced efficiency in managing stock, which may affect working capital.
(f) Trade Payable Turnover Ratio: There's a rise in purchase and a drop in accounts payable, leading to a higher
ratio by 47.47%
(g) Net Profit Ratio: It is declined from 9.98% to 6.77%, pointing towards margin erosion possibly due to
increased costs or pressure on sales pricing.
(h) Return on Capital Employed: It is dropped from 14.16% to 10.52%, as capital employed increased while
operating profits (EBIT) did not grow proportionately.
(i) Return on investment: Variance in Return on Investment is due to decrease in investment and increase in its
return.
Nature of CSR activities
Nature of Corportate Social Responibility Activities undertaken during the year ended March 31, 2025 and
March 31,2024 includes Education, Construction, Maintenace of old Age homes and Day Care Centres.
Details of related party transactions
The Company has incurred CSR Expenditure in one of related party named Shutina Foundation amounting Rs.
30,00,000 in Current Year and Rs. 25,00,000 in Previous Year.
41 Other Statutory Disclosures
1. The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs
or the related parties (as defined under Companies Act, 2013) either severally or jointly with any other
person, repayable on demand or without specifying any terms or period of repayment.
2. The Company does not have any benami property, where any proceeding has been initiated or
pending against the Company for holding any benami property.
3. The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.
4. The Company does not have any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.
5. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.
6. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the
Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
7. There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013.
8. 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:
a. 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
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
9. 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:
a. 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
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
10. The Company does not have 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).
11. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
12. As per the information and explanation given to us, the records examined by us and based on the
examination of the conveyance deeds/ registered sale deed provided to us We report that the title
deeds comprising all the Immovable Properties of building which are freehold and are held in the name
of the Company as at the Balance Sheet date.
13. The Company has not revalued its Property, Plant and Equipments during the year.
14. The Company has a Capital Work in Progress Account as at the Balance Sheet Date and its disclosed in
Note no. 11
42 Regrouping
The Previous period figures have been re-grouped/ re-classified wherever required to confirm to current year
classification.
As per our report of even date
For Rushabh R Shah and Co For and on behalf of the Board of
Chartered Accountants Essen Speciality Films Limited
Firm's Registration No. 156419W
Rushabh Shah Pallav K. Doshi Sunny D Mamtora
Proprietor Chairman and Whole time Director Company Secretary
Membership No. 607585 DIN: 02542047 M.No.:A62890
UDIN: 25607585BMKPMF8442
Place: Rajkot Jayantilal T. Jhalavadia Place: Shapar (Veraval)
Date: 5 May 2025 Chief Financial Officer Date: 5 May 2025
PAN:ABOPJ1358H
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