A provision is recognised if as a result of a past event the company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are
determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle
the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. Expected future operating losses are not provided for.
Contingencies
Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognised when
it is probable that a liability has been incurred and the amount can be estimated reliably.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably
will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.
Contingent assets has to be recognised in the financial statements in the period in which if it is virtually certain that an inflow of
economic benefits will arise. Contingent assets are assessed continually and no such benefits were found for the current
financial year.
n. Earnings per share
Basic Earnings Per Share (‘EPS') is computed by dividing the net profit attributable to the equity shareholders by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit
by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing
diluted earnings per share, only potential equity shares that are dilutive and that either reduces earnings per share or increases
loss per share are included. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all
periods presented for the share splits.
o. Cash flow statement
Cash flows are reported using the indirect method, whereby net profit/ (loss) before tax is adjusted for the effects of transactions
of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from regular revenue generating (operating activities), investing
and financing activities of the Company are segregated.
p. Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible (including interest thereon) to known amounts of cash and which are subject to an insignificant risk of
changes in value.
q. Assets held for sale
Assets are classified as assets held for sale if it is highly probable that they will be recovered primarily through sale rather than
through continuing use. Such assets are generally measured at the lower of their carrying amount and fair value less costs to
sell. Losses on initial classification as held for sale and subsequent gains and losses on re-measurement are recognised in
profit or loss.
Once classified as held for sale, intangible assets, property, plant and equipment and investment properties are no longer
amortised or depreciated.
r. Events after reporting date
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of
material size or nature are only disclosed.
a) First pari-passu charge on entire fixed assets of the company situated at Mundra, Kutch , Gujarat along with Indian Bank
- for Term Loan
b) First pari-passu charge on factory Land and Building situated at Survey No. 380/PAIKA /1 Gandhi Dham Road, Village,
Bhadreshwar, Tehsil, Mundra, Kutch, Gujrat along with Indian Bank - for Term Loan
c) First charge over Factory Land and Building at Khasra No.9/0-17-0 and Khasra no.10/0-16-0,11/10-17-0,12/0-19-0,8/0-4-
0,14/1 M/2-9-10, situated at village Acheja, Tehsil Dadri Dist. Ghaziabad, Gautam Budh Nagar(Uttar Pradesh) admeasuring
total area 3 bigha,13 biswa, 6 sahi, 2/3 Biswansi along with other term lenders Indian Bank and HDFC Bank.
d) First Charge on entire fixed assets Located at Dadri, district Ghaziabad Plant
e) Second pari passu charge entire current assets of the Company , (both present and future), along with other term landers
Indian Bank and HDFC Bank
f) Personal guarantee of Mr. Madhusudan Bagla , the Managing Director of the Company .
g) The Term Loan is repayable in 24 Quarterly instalments, interest is payable on monthly basis
h) The applicable rate of interest is 10.40%
B Term Loans from Indian Bank is secured by way of :
a) 1st Pari Passu charge of Term Lenders on entire fixed assets of the Borrower situated at Mundra, Kutch & Gujrat along
with other lender HDFC Bank.
b) 2nd Pari - passu charge of Term Lenders on entire current assets of the Borrower (both present & future) along with other
lender HDFC Bank.
c) 2nd Pari Passu charge on entire fixed assets including Land &Building of the Borrower situated at Mundra, Roorkee and
Dadri Plant (shared with HDFC for its facilities availed by Bagla Technopack Private Limited).
d) Negative lien on land measuring 0.0253 hectares part of the existing factory land located at Dadri Ghaziabad, Uttar
Pradesh along with other lender HDFC Bank.
e) Personal guarantee of the Managing Director Mr. Madhusudan Bagla Managing Director of the Company.
f) The Term Loan of is repayable in 24 Quarterly instalments, starting from June 2021, interest is payable monthly.
C Term Loans from HDFC Bank is secured by way of :
a) Exclusive charge on entire fixed assets of the Borrower situated at Howrah, West Bengal.
b) 1st Pari Passu charge of Term Lenders on entire fixed assets of the Borrower situated at Mundra, Kutch & Gujrat along
with other lender Indian Bank.
c) 2nd Pari - passu charge of Term Lenders on entire current assets of the Borrower (both present & future) along with other
lender HDFC Bank.
d) 2nd Pari Passu charge on entire fixed assets including Land &Building of the Borrower situated at Mundra, Roorkee and
Dadri Plant (shared with HDFC for its facilities availed by Bagla Technopack Private Limited).
e) Negative lien on land measuring 0.0253 hectares part of the existing factory land located at Dadri Ghaziabad, Uttar
Pradesh along with other lender HDFC Bank.
f) Personal guarantee of the Managing Director Mr. Madhusudan Bagla Managing Director of the Company.
g) The Term Loan of is repayable in 47 month including (11 month as a moratorium period) and 12 Quarterly instalments,
starting from October 2025, interest is payable monthly.
h) The applicable rate of interest is 10.08%
D Auto Loan from ICICI Bank, Indian Bank & HDFC Bank are secured by way of hypothecation of the vehicle financed by them.
E Loan from directors are interest free and repayable on demand.
a) 1 st Pari Passu charge of Working Capital Lenders by way of hypothecation on entire current assets of the Borrower both
present and future, including stock & receivables located at all its plants i.e. Gujrat, Ghaziabad and Roorkee and Howrah
or any other places.
b) 2nd Pari Passu charge on Factory land & building at Survey No 380/PAIKI/1, Gandhidham Road, Village Bhadreshwar,
Tehsil - Mundra, Kutch, Gujarat, Total Area: 22561 Sq. Mtrs. (shared with HDFC for its facilities availed by Bagla Technopack
Private Limited).
c) 2nd Pari Passu charge of on Factory land and building at Plot No 15, belonging to Khasra no. 366, 369 & e or 370, KIE
Industrial Estate at Village - Mundiyaki, Post - Manglour, Tehsil Roorkee, District Haridwar, Uttarakhand, Total Area: 1800
Sq. Mtrs. (shared with HDFC for its facilities availed by Bagla Technopack Private Limited).
d) 1st Pari Passu charge of on entire fixed assets including Land & Building situated at Dadri, Uttar Pradesh (shared with
HDFC for its facilities availed by Bagla Technopack Private Limited).
e) 2nd Pari Passu charge on entire fixed assets including Land &Building of the Borrower situated at Mundra, Roorkee
andDadri Plant (shared with HDFC for its facilities availed by Bagla Technopack Private Limited).
f) 2nd Pari Passu charge on entire fixed assets of the Borrower situated at Howrah, West Bengal. (shared with HDFC for its
facilities availed by Bagla Technopack Private Limited).
g) Negative lien on land measuring 0.0253 hectares part of the existing factory land located at Dadri Ghaziabad, Uttar
Pradesh.
h) Personal guarantee of Mr. Madhusudan Bagla , the Managing Director of the Company .
36 Government Grants
The Company has applied the requirements in Ind AS 109, Financial Instruments, and Ind AS 20, Accounting for Government
Grants and Disclosure of Government Assistance.
37 Closure of the Roorkee Plant
All the Plant and Machinery insttalled at its Roorkee Plany other than one EBM machine were sold on as is where is basis to a
group company M/s Bagla Polifilms Limited( BPL) with effect from 31.05.2024. The building structure and EBM machine were
given on Lease to the BPL from 01.06.2024.
Employees of the roorkee units were also transferred w.e.f. 1/6/2024 in the other group company (BPL) on continuation of
service. The amount gratuity payable Rs. 528,394 for such emplyees for the period upto which these have served in the
comapany has been paid /credited to the account of BPL.
A Fire Broke out on 15.12.2024 at the Industrial Unit of the company at Roorkee, Haridwar, destroying completely the building,
Plant & Machinery and other equipment i0ncluding those given on lease to a group company Bagla Plifilms limited , also the
stocks lying therein . The book value of building and structure as on the date of fire Rs. 31.89 Lacs, Property, Plant & other
Equipments (PPE) Rs. 176.99 Lacs and for stocks owned by the company Rs. 3.97 Lacs total Rs.212.85 Lacs has been
accounted as Insurance claim receivable. The Surveyers from the insurance company has inspected the site and the process
of claim is started, however, the insurance compny has not yet permitted for removal of the debris and salvages. In the absance
of which expenditure to be incurred for removal etc could not be assertained wiith resonable accuracy hence not provided for.
The insurance claim in respect of loss due to fire has not yet been ascertained, however, the management has considered as
claim receivable Rs. 212.85 Lacs as good for recovery.
38 During the year the company has entered into an agreement with an overseas party to acquire used Industrial Plant & Machinery
from M/s. Filtrona Holdings UK ( Filtrona) lying at 3 different locations i.e. a) in United Kingdom, b) Paraguay, c) Indonesia. The
plant and machinery as listed out in the agreement were acquired at a lump sum plus the removal/dismantling packing and
transportation cost. Only the Machineries lying in UK were removed and were brought to India in parts under different shipments
with different locations India.
The goods lying in Paraguay as per Valuation report dated 23/06/2025 of a Certified engineer in that country and for goods
lying in Indonesia as per Valuation report dated 20/06/2025 of a Certified engineer in that country, both are considered as
trading purchases of Machinery , and the value asigned based on valuation report has been reduced from the overall payments
made for the consolidated agreeemnt price.
The goods lying in Paraguay have been transferred to a group company M/s. Bagla Paraguay S.A. (a company controlled by
the Managing Director & CFO). and the goods lying in indonesia o a group company M/s PT.Bagala Group Indonesia (a
Subsidiary of the company), both these transaction has been recorded as sale of traded machines.
B Guarantees
i) Bank Guarantees given by the Company Rs. 49.73 Lacs (Previous year Rs.49.73 Lacs).
ii) Corporate Guarantee given to HDFC Bank on behalf of its wholly owned subsidiary i.e. Bagla Technopack Pvt Ltd Rs.
4070.00 Lacs.
iii) Foreign letter of credit opened with IDBI Bank, Indian Bank, State Bank of India & HDFC Bank for import of Raw material
etc. worth Rs. 47.52 Lacs (Previous year Rs.126.73 Lacs) and domestic letter of credit for procurement of raw material
from domestic supplier Rs. Nil (Previous year Rs. NIL).
40 A Commitments
i. Estimated Amount of capital commitment for contracts remaining to be executed Rs 90.86 Lakhs Crore (Previous
year 3.58 Crore) against which advances are given Rs 30.34 Lacs (previous year Rs.1.50 Crore).
41 Disclosures of the Additional Regulatory Information to the extent applicable to the company are made in compliance
with the amendments made in Schedule III to the Companies Act 2013 vide Notification No. GSR 207(E) dated 24th
March, 2021, are given as under:
(i) The Title Deeds of the Property owned by the Company are held by the Company in its own Name, and the documents
thereof are pledged with the State Bank of India and later on with SBICAP Trustee Company Limited
(ii) The Company does not hold any property as Investment as any time during the year
(iii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)
(iv) The Company does not have any intangible assets at any time during the year however company incurred expenditure for
implemation of new accounting software Rs 5.79 Lacs ( Previous year Rs.7.80 Lacs ) which have been charged to
revenue expenditure.
(v) The company has granted Loans to promoters, directors, KMPs and the related parties (as defined under Companies Act,
2013) at any time during the year, and the same are shown in Note 41(xxiv).
(vi) The Company have Rs 2291.67 Lacs in Capital Work in Progress (CWIP) at the close of the financial year.
(vii) The Company does not have any Intangible assets under development at any time during the year, except for developing
a new accounting software, the expenditure incured for the same has been charged to the revenue account.
(viii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ix) The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from State Bank of
India as lead banker in the consortium where IDBI , HDFC and Indian Bank are members. on the basis of returns or
statements filed by the Company with banks are in agreement with the books of account of the Company except for
statements filed for month ended 30 June 2024, 30 September, 2024, 31 December 2024 and 31 March 2025 where
differences were noted between the amount as per books of account for respective months and amount as reported in the
quarterly statements.
The difference were in case of Debtors amounting to Rs ( )53.45 Lakhs (amount reported - Rs 1879.64 Lakhs Vs amount
per books of account - Rs 1933.00), Rs ( )5.62 Lakhs (amount reported - Rs 2976.65 Lakhs Vs amount per books of
account - Rs 2,971.03 Lakhs), Rs Nil Lakhs (amount reported - Rs 2,855.81 Lakhs Vs amount as per books of account -
Rs 2,855.81 Lakhs) and Rs 789.85 Lakhs (amount reported - Rs 1936.68 Lakhs Vs amount as per books of account - Rs
2726.53Lakhs) for quarter ended 30 June 2024, 30 September 2024, 31st December 2024 and 31st March 2025.
Further, Inventory had a difference of Rs 11.60 Lakhs (amount reported to Bank-Rs 4810.45 Lakhs Vs amount per books
of account- Rs 4,822.06), Rs( ) 2.17 Lakhs (amount reported to Bank - Rs 4,478.84 Lakhs Vs amount per books of
account - Rs 4,481.01 Lakhs), Rs ( ) 2.09 Lakhs (amount reported to Bank - Rs 4,647.03 Lakhs Vs amount per books of
account - Rs 4649.12 Lakhs) and (-)Rs. 41.50 Lakhs (amount reported to Bank - Rs. 6301.62 Lakhs Vs amount per
books of account - Rs.6260.12 Lakhs) for quarter ended 30 June 2024, 30 September 2024, 31st December 2024 and
31st March 2025.
Further, Creditors had a difference of Rs (-) 522 Lakhs (amount reported to Rs. 2110 Lakhs Vs amount per books of
account- Rs 1,588), Rs Nil Lakhs ( amount reported - Rs 2,188 Lakhs Vs amount per books of account - Rs 2,188 Lakhs)
Rs. Nil (amount reported - Rs 1783. Lakhs Vs amount per books of account - Rs 1783 Lakhs), Rs.(-) 736.58 Lakhs
(amount reported - Rs 2471 Lakhs Vs amount per books of account - Rs 3207.58 Lakhs) Lakhs or quarter ended 30 June
2024 and 30th September 2024 and 31st December 2024 and 31st March 2025.
Further that, Turnover had a difference of Rs 387 Lakhs (amount reported to Bank-Rs 6793 Lakhs Vs amount per books
of account- Rs. 6406 Lakhs, Rs.726 Lakhs (amount reported to Bank - Rs. 9170 Lakhs Vs amount per books of account
- Rs. 8444 Lakhs), Rs. 1029 Lakhs (amount reported to Bank- Rs. 8284 Lakhs Vs amount per books of account - Rs.
7216 Lakhs) and Rs. 1261 Lakhs (amount reported to Bank - Rs.7638 Lakhs Vs amount per books of account -
Rs.6377 Lakhs) for quarter ended 30 June 2024, 30 September 2024, 31st December 2024 and 31st March 2025 the
difference is due to Inter-unit sales not excluded while submitted it to the Bank.
The overall impact on Working capital based on figures as per books of account as compared to the reported figures is,
a Decrease in working capital by Rs. (-) 586 lakhs and Rs. (-) 7.79 Lakhs as of 30th June and 30th September 2024 and
an increase in working capital by Rs 2.09 Lakhs and Rs. 12.77 Lakhs and 31st December, 2024 and 31st March 2025
and respectively.
(x) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.
(xi) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.
(xii) There are no charges or satisfaction of Charges yet to be registered with Registrar of Companies beyond the statutory
period.
(xiii) The Company has multiple subsidiaries, hence the provision with regard to compliance with the number of layers for its
holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the
Companies (Restriction on number of Layers) Rules, 2017 are applicable to the company.
(xiv) During the year under report no Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.
(xv) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(is), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) 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;
(xvi) The company has not received any fund from any person(s) or entity(is), 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(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
42 Balance with Indian Bank- Ahmadabad Rupees 15,150 having no transactions during the year is subject to Confirmation.
43 Accrued benefits of duty-free imports available to the company in the form of transferable import licenses for completed export
obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same
has no impact on financial statements of the company. hence, Rs..8.57 Lacs duity benefit used for import of machine has been
capitlized during the year.
44 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and
advances including amount recoverable from Income Tax, Goods and Service tax , Central Excise, Service Tax, VAT and
deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are
stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management
is hopeful of recovering the debit balances.
45 The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company has
received Capital Subsidy amounting to Rs.30.00 lacs during 2014-15 under the said scheme credited to capital reserves.
47 Segment Reporting
The Company is principally engaged in a single business segment viz. Manufacturing of Packaging Self Adhesives Tape based
on nature of products, risks, returns and the internal business reporting system. The Board of directors of the Company,
evaluates the Company's performance, allocate resources based on the analysis of the various performance indicators of the
Company as a single unit. Accordingly, there is no other reportable segment in terms of Ind AS 108 ‘Operating Segments'. The
Company has opted for exemption under Ind AS 108 ‘Operating Segments', as the segment reporting is reported in its consolidated
financial statements.
53 Figures in brackets represent previous year figures.
54 The above audited results for the quarter and year ended 31st March, 2025 has been reviewed by the Audit committee and
approved by the Board of Directors at their respective meetings held on 03/07/2025
55 Capital Management :
The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to
stakeholders through the optimisation of the debt and equity balance. The Company determines the amount of capital required
on the basis of annual master planning and budgeting and corporate plan for working capital, capital outlay and long-term
product and strategic involvements. The funding requirements are met through equity, internal accruals and a combination of
both long-term and short-term borrowings.The Company monitors the capital structure on the basis of total debt to equity and
maturity profile of the overall debt portfolio of the
The quarterly returns or statements of current assets filed by the Company with Banks are in agreement with the books of
account.
The Company has complied with covenants given under the facility agreements executed for its borrowings.
For SALARPURIA & PARTNERS For and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Regn. No. 302113E
CA SHWETA AGIWAL (Ashok Kumar Pathak) (M. S. BAGLA) (Amit Kumar Jha) (N. M. BAGLA)
Partner Director Mg. Director Company Secretary CFO
Membership No. 571014 DIN 09283908 DIN 01425646 M. No.ACS65302
Place : New Delhi
Date : 03/07/2025
UDIN: 25571014BMJLZK5999
|