n Provisions, contingent liabilities and contingent assets
Provisions are recognized wnen the Company has a present obligation (legal or constructive.‘as 3 result of a past event, it is probable that
an outflow of resources embodying economic benefit wfli be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation . These are reviewed at each Balance Sheet date and adjusted to reflea tne current best estimates
Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the
financial statements
o Related Party Transactions:
Disclosure of transactions with Related Parties., as required oy Ind AS 24 "Related Party Disclosures" has been set out in a separate
statement annexed to this Schedule as per Note no.35. Related Parties as defined in Ind AS 24 h3ve been identified on the oasis of
representations made by key managerial personnel and information availab'e with the Company
p Provisions:
A provision is recognized when Company has a legal and constructive obligation, as a result of a past event for which it is probable that
C3sn outflow will be required and a reliable estimate n.3s been made of tne amount of the obligation. Accordingly, provision for income
tax payaoie has not been done MAT credit of Rs Nil (P.Y. Rs. Nil) laKhs and unaosoroed deoreciation of Rs.Nil/- (P.Y. Rs 344.62) lakhs
q Classification of Subsidy Receivable into Current and Non-Current Asset:
(a) The Company has received eligibility certificate from concerned deoartment regarding VAT concession for amount of Subsidy of
Rs 3066.38 cakP.s for 3 years in equal installments. Tne VAT Concession is for the penod of 3 years from 01-01-2014 to 31-01-202L
Amount under Subsidy receivaole is treated as Non-Current Assets Tne status of subsidy amount as per certificate received from
concerned authorities is as under
30 Employees Benefit
(I) Post Employment Defined Contribution Plan
Tns Company contributes to the Provident Fund (PF) maintained by the Regional Provident Fund Commissioner. Under the PF scheme
contributions are made by both the Company and its eligible employees to the Fund . based on the current salaries. An amount of
Rs .7.61 Lakhs (31st March 2024 : Rs.il 9S Lakhs) has oeen charged to the Statement of Profit and Loss towards Company's contribution
to the aforesaid PF scheme.
Apart from making monthly contribution to the scheme, the Company has no other obligation
(ii) Post Employment Defined Benefit Plan-Gratuity (Funded)
The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees.
( c ) Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments:
(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payaoles, bank overdrafts and other
current financial assets 3nd liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments
(ii) The fair values of tne equity investment which are quoted, 3re derived from Quoted market pnces in active markets. The Investments
measured at fair value (FVTOCIS and falling under fairvalue hierarchy Level 3 are valued on the b3sisof valuation reports provided by
external valuers with the exception of certain investments, where cost has been considered as 3n appropriate estimate of fair value
Because of a wide range of possible fairvalue measurements and cost represents the best estimate of fair values within that range.
The Company considers Comparable Companies Method ( CCM) method and the illiquidity discount based on its assessment of the
judgement that market participants would apply for measurement of fair value of unquoted investments. In the CCM method, the
Company would find comparable listed entities in the market and use the same PE multiple (ranging from 9 .80 to 20.60) for
determining the fair V3lue of the investment.
(fii)The fa r values of investments in mutual fund units is based on the net asset value i'NAV') as stated oy the issuers of these mutual
fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of
mutual fund and the price at which issuers will redeem sucn units from the investors.
(iv> The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative
financial instruments is based on odservaoie market inputs including currency spot and forward rate, yield curves, currency volatility,
credit quality of counterparties , interest rate and forward rate curves of the underlying instruments etc. and use of appropriate
valuation models.
(v) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not be
significantly different from their carrying amounts as there is no significant change in the under-tying credit risk of the Company (since
the date of inception of the loans).
( d ) Financial risk management objectives
The Company is exposed to market risk (including currency risk, interest rate risk 3nd other price risk}, credit risk 3nd liquidity risk. The
Company's risk management strategies fc-cus on the un-predictability of these elements 3nd seek to minimise the potential adverse
effects on its financial performance Tne Company's senior management which is supported by a Treasury Risk Management Group
(’TRMG1) manages these risks. TRMG advises on financial risks and the appropriate financial risk governance framework for the
Company and provides assurance to the Company's senior management that the Company's financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured 3nd managed in accordance with the Company"s
policies and risk objectives . All hedging activities 3re carried out by specialist teams that h3vethe appropriate skills, experience and
supervision The Company's policy is not to trade in derivatives for speculative purposes
38.1 Financial Risk Management
The Company's principal financial liabilities comprise loans 3nd borrowings in domestic & foreign currency, trade payables and other payables
The ma-n purpose of these financial Ii30tfrties is to finance the Company's operations. The Company's principal financial assets include loans, trade
and other receivacles. 3nd cash ana short-term deposits that derive directly from its operations
The Company has exposure to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Market risk
This note presents information about the Company's exoosure to each of the above risks 3nd how the Company is managing such risk.
The company’s Board of Directors n.as overall responsibility for the estaolishment and oversight of the company's risk management
framework. The company's risk management policies are established to identify and analyse the risks facec by the company, to set sopropnate
risk limits and Control and to monitor risks Risk management policies and systems are reviewed regularly to reflect changes in market
conditions end the company's activities.
38.2 Credit Risk Management
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company's receivables from customers and others. In addition, credit risk arises from financial
guarantees
Tne Company imp>ements a credit risk management policy under which the Company only transacts business with counterparties that have
a certain level af credit worthiness D3sed on internal assessment of the parties, financial condition, historical experience, and other factors.
Tne Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer Tne Company has
estaolished 3 credit policy under which each new customer is analyzed individually for creditworthiness.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of U3de and other
receivables Tne main components of this allowance are 3 specific toss component that relates to individually significant exposures,
and a collective loss component that are expected to occur The collective loss allowance is determined based on historical data of
payment statistics for similar financial assets Deot securities ars analyzed individually, and 3n expected loss sh.311 be directly deducted from
debt securities
Credit risk also arses from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents
and various deposits. Tne Company manages its exposure to this credit risk by only entering into transactions witn oanfcs that have high ratings.
Tne Company's treasury department authorizes, manages and oversees new transactions with parties with whom the Company h3S no
previous relationship.
Tne Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends
and ageing of accounts receivable. Individual risk limits are set accordingly
38.3 Liquidity Risk
Liquidity risk is the risk that the Company may encounter difficulty in meeting the obligations associated with its finandalliabinties that a-e
settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet it3 liabilities when due , under both normal and stressed conditions, without incurring
unacceptable iosses or risking damage to the Company's reputation
The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes 3nd policies
related to such risks are overseen cy senior management. Management monitors the company's net liquidity position through rolling forecast
or. the basis of expected cash flows.
38.4 Market risk
Market risk is the risk of loss of future earnings, f3ir values or future cash flows that m3y result from a change m the price of 3 financial
Instrument The value of a financial instrument may change as a result of changes in the merest rates, foreign currency exchange rates, equity
prices 3r.d other market changes that affect market risk sensitive instruments- Market risk is attributable to aii market risk sensitive financial
instruments including investments and deposits , foreign currency receivables , payables and lean borrowings. The go3l of market risk
management is optimization of profit and controlling the exposure to market risk within acceptable iimits.
a) Foreign currency rate risk
Foreign currency risk s the risk that the fair V3lue or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.
The Group transacts business in foreign currencies (primarily USD. EUR and GBP). Consequently.the Group hes foreign currency trade payables and
receivable- and is therefore exposed to foreign exchange risk. The Group manages its foreign currency risk by following policies approved by board
as per established risk management policy.
Principa Raw Material for company's products are Polyp—plane Granules, HOPE Granules. LDPE Granu!es,filler, HOPE Granules, Master Batch etc
Company sources its raw material requirements from domestic markets as well as International markets. Domestic market prize generally remains
In line with international market prices. Volatility in Granules prices, currency fluctuation of rupee vis-a-vis other prominent currencies coupled with
demand-supply scenario in the world market affects the effective price of raw materials. Company effectively manages availability o? material 35
well as price volatility through well planned procurement and inventory strategy and also through approprate contracts 3nd commitments.
40 The Company has fi03tsd a Limited Liaoility Partnership {LLP) in Malaysia in the name of HCP Plastene Buikpack PIT with 60% stake with an
investment of iNR 5.51 Lakhs (RM 30,000) Tne otner two individual partners have 3 Balance 10% stake in LlP. The ODjsetive of floating an
LLP in Malaysia is to explore FIBC and other related product markets in Malaysia and other Asia-Pacific Countries.
41 Tne Company has issued Employee Stock Options {ESOP) to the employees of the Company and its Subsidiary ESOP entitles its holder to equity
shares to be considered Potential Equity Shades.
42 Additional statutory information:
(a) Tne title deeds of all the immovacie properties., {other than immovable properties where the Group is the lessee and the lease ag'eements are duly execute:
in favour of the Group) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name o
the Group as at the balance sheet date
(b) The Group has not advanced or loaned or invested funds to any oromoterfs), Directors). KMP(s) or Related Parties.
(c) Tne Group Goes not have any ben3mi property, where any proceeding has been initiated or pending against the Group for holding any benami property.
(d) The Group is not declared wilful defaulter by and bank or fir\3nci3ls institution or lender
(e) Tne Group does not have any transactions with companies which are struck off.
(f) Tne Group does not nave any charges or satisfaction which is yet to be registered with ROC oeyond the statutory period.
(g) Tne Group has complied with the number of layers prescriced under clause (S7) of section 2 of the Act read with the Companies (Restriction on number of
Layers) Rules. 2017.
(h) No scheme of arrangements have beer approved by tne competent authority. Hence, reporting under this point is not apoiicabie.
(i) I. The Group 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:
{l| 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 benefr claries i
(it) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
II. The Group has not received any fund from any person(s) orentity(iEs), including foreign entities (funding party) with the understanoing (whether recorder
in writing or otherwise) that the Company shall
(I) directly or indirectly lend or invest in other persons or entities -oentrfied In any manner whatsoever py or on behalf of the funding party (ultimate beneficiaries (
(or)
(ii) provide any guarantee, security or the like on Denalf of the ultimate beneficiaries.
(j) There are no transactions not recorded in the books of accounts that has been surrendered or disposed as income during the year in the tax assessments
under the Income Tax Act, 19S1
(k) Corporate social responsibility
(a) Corporate social responsibility . amount require to be spent as per Section 135 of the companies Act. 2013 read with Schedule VII
(b) Expenses related to Corporate Social responsibility is Rs. Nil
43 Figures for the previous year have been regrouped/.-eclassified wherever necessary to conform to current period's classification, in order to
comply with the requirements of the amended Schedule III to the Companies Act,2013.
Referred to in our report of even date For and on behalf of the 8oard of Directors of
HCP Plastene BulkpackLimrted (Earlier known as Gopaia Polyplast Limited)
For Ashok Dhariwal & Co CIN : L25200GJ1984PLC050560
Chartered Accountants
Firm Regd. No.: 100648W
Ashok Dhariwat Prakash Parekh Anil Goyal
Partner Managing Director Chairman
Membership No.: 036452 DIN:00158264 DIN:03071035
Place: Ahmedabad
Date 26th May. 2025
UD1N : 250364528MKTGK2676
ShwetaJhawar DhrumilShah
Company Secretary Chief Financial Officer
Place: Ahmeda03d Place Ahmedabad
Date: 26th May, 2025 Date: 26th May, 2025
|