(xiii) Provisions and Contingent Liabilities /Assets
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. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement. Contingent
liabilities are not recognised but are disclosed in notes.
Contingent Assets are not recognised in financial statements but are disclosed, since the former treatment may result in the
recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is appropriate.
(xiv) 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.
(xv) 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.
(xvi) 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;
Ý Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Ý Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Ý 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.
(xvii) Significant Accounting Judgments, Estimates and Assumptions
In the process of applying the Company's accounting policies, management has made the following estimates, assumptions and
judgements which have significant effect on the amounts recognized in the financial statement:
a. Income taxes
Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and
liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used
in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the
standalone financial statements.
b. Contingencies
Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.
c. Allowance for uncollected accounts receivable and advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances
for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not
collectible. Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the
financial assets.
d. Defined Benefit Plans.
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in future. These Includes the determination of the discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
e. Fair Value Measurement of Financial Instruments.
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow
(DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments.
(b) Equity Shares:
The Equity Shareholders have:-
Ý The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders.
The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.
Ý The Company has only one class of Equity Shares having face value of Rs. 10/- each and each shareholder is entitled to one
vote per share.
Ý In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after
preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding
in the paid up equity capital of the Company.
A. NCDs of Rs. 177.55 Crore are secured by means of first pari passu mortgage/charge on the fixed assets of the company. NCDs are
repayable as under:
1. NCDs of Rs. 177.55 Crore is repayable in 7 Half yearly installments from September 2025 to September 2028
B. Term Loans of Rs. 136.22 Crore (FIs - Rs. Nil, Banks Rs. 136.32 Crore) and NCD of Rs. 86.55 Crore is secured by means of first pari
passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term
Loans are/shall be repayable as under :-
1. Term Loan of Rs. 136.32 Crore is repayable in total 10 quarterly installments from June 2025 to September 2027.
2. NCDs of Rs. 86.55 Crore is repayable in 9 Half yearly installments from May 2025 to May 2029.
C. Term Loans of Rs. 954.64 Crore (FIs - Rs. 180.03 Crore, Banks Rs. 774.61 Crore) is secured by means of first pari passu mortgage/charge
on the fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-
1. Term Loans aggregating to Rs. 351.02 Crore are repayable in total 67 equal quarterly-installments from April 2025 to March
2032.
2. Term Loans aggregating to Rs. 387.76 Crore are repayable in total 21 equal half-yearly installments from June 2025 to June
2031.
3. Term Loans of Rs. 215.86 Crore are repayable in 26 quarterly installments from June 2025 to September 2031.
D. Secured Term loans from Financial Institutions and Banks have been reduced by Rs. 2.89 Crore (FIs - Rs. 0.91 Crore, Banks Rs 1.98
Crore) and NCDs have been reduced by Rs. 1.06 Crore due to effective rate of interest.
E. Secured Term loans from Financial Institutions and Banks include Rs. 739.94 Crore foreign currency loans. Certain charges are in
the process of satisfaction.
F. Lease Liabilities aggregating to Rs. 71.01 Crore is repayable in total 704 equal monthly installments from April 2025 to September 2041.
G . Public deposits are due for repayment from April 2025 to March 2028.
Nature of CSR activities:
Conservation of natural resources, Promotion of Education, Health care, rural development and livelihood interventions, Disaster
relief, Digital Literacy amongst others.
Note- Unspent CSR amount of Rs. 3.50 crore for the financial year 2024-25, has been transferred to Unspent Corporate Social
Responsibility Bank account as per the provisions of Section 135 of the Companies Act, 2013. This amount will be spent in succeeding
years on CSR projects/activities of the Company.
iii Details of loans given, investments made and guarantee given covered U/s 186(4) of the Companies
Act 2013
The company has given loan to Subsidiaries amounting to Rs. 14.50 Crore (Previous year Rs. 33.00 Crore ) and other parties
amounting to Rs. NIL (Previous year Rs. NIL) mentioned above for general business purpose.There are no investment made by
the company other than those stated under Note no 4 and 9 of the financial statements
40 a) The Company had invested Rs. 27.81 Crores in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar
through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking
restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated
above, as a matter of prudence the Company had made provision of Rs. 11.10 Crores against its investment in subsidiary of
Rs. 22.59 Crores.
b) Sales include export incentives of Rs. 9.40 Crore (Previous year Rs. 7.94 Crore).
c) Interest Income includes Rs. 0.52 Crore (Previous year Rs 0.59 Crore) on Deposits with Banks and Rs. 48.41 Crore (Previous
year Rs. 53.93 Crore) on others.
d) Scrap sale of Rs. 21.84 Crore (Previous year Rs. 28.37 Crore) has been netted off from Consumption of Stores and Spares.
e) The Company has used an accounting software for maintaining its books of accounts during the year ended March 31,2025,
which has a feature of recording audit trail (edit log) facility and has operated throughout the year except (a) the audit trail
feature was not enabled for certain relevant tables at the application level and (b) change log is not enabled for certain
information during the year.The audit trail has been preserved by the company as per the statutory requirements for record
retention.
f) The Board of Directors has recommended a final Dividend of Rs. 5 /- per share (50%), on the Equity Share Capital for the
financial year ended 31st March, 2025.
Note 45 :
Miscellaneous expenses include contribution of Rs. 13.00 crore made to a political party under section 182 of the Companies Act,
2013.
Note 46 :
The Board of Directors of the Company at its meeting held on 13th December 2024, have approved a Composite Scheme of
Arrangement under Sections 230 to 232 (read with Section 66 and other applicable provisions) of the Companies Act, 2013 between
the Company (Transferee Company), its subsidiaries namely JKPL Utility Packaging Solutions Private Limited (Formerly Manipal
Utility Packaging Solutions Private Limited), Securipax Packaging Private Limited, Horizon Packs Private Limited, Enviro Tech Ventures
Limited (Transferor/Demerged Companies) and Resulting Company namely PSV Agro Products Private Limited and their respective
shareholders (the 'Scheme').The aforementioned Scheme having appointed dates of 1st April 2024 and 1st April 2025, as further
detailed in the Scheme, is subject to required regulatory and other necessary approvals. Pending necessary approvals, the effect of
the Scheme has not been given in these Financial Statements.
NOTE 49: (Contd.)
(iii) Other Information in terms of the amendment in Schedule III 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 struck off.
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 have not traded or invested in crypto currency or virtual currency during the financial year.
d) The Company have 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 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:
(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.
f) The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities,
which are normally in agreement with the books of account other than those as set out below.
* The above differences represents balance of creditors as at each reporting date.
# Working Capital Borrowings are secured by hypothecation of Raw Materials, Finished Goods, Stock-in-Process, Stores &
Spares and Book Debts.
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.
h) The Company have not been declared willful defaulter by any Banks or any other Financial Institution at any time during the
financial year.
NOTE 50 : EMPLOYEE BENEFITS
The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately
administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of
contributions payable in the year.
a) Defined Contribution Plans:-
Amount recognized as an expense and included in Note 32 Item "Contribution to Provident and Other Funds Rs. 0.71 Crore
(Previous year Rs. 0.44 Crore) for Superannuation Fund.
b) Other long-term benefits
Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. Rs. 5.23 Crore (Previous year
Rs. 6.73 Crore) for long term compensated Absences.
c) Defined benefits plans
(i) Amount recognized as an expense and included in Note 32 & Note 44 "Contribution to Provident and Other Funds" Rs. 12.39
Crore (Previous year Rs. 12.12 Crore) for Provident and other fund.
(ii) Gratuity Expense Rs. 4.08 Crore (Previous year Rs. 3.77 Crore) has been recognized in "Contribution to Provident and Other
Funds" under Note 32. as per Actuarial Valuation
The following methods and assumptions were used to estimate the fair values.
A The fair values of derivatives are on MTM as per Bank
B Company has opted to fair value its mutual fund investment through statement of profit & loss
C Company has opted to fair value its quoted investments in equity share through OCI
D As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in subsidiaries, JVs and
Associates at cost or at fair value. Company has opted to value its investments in subsidiaries, JVs and Associates at cost.
E Company has adopted effective rate of interest for calculating Interest. This has been calculated as the weighted average of
effective interest rates calculated for each loan. In addition processing fees and transaction cost relating to each loan has also
been considered for calculating effective interest rate.
* The carrying amounts are considered to be the same as their fair values due to short term nature.
Fair value hierarchy
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).
Note 53 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
53.1 Financial risk factors
The Company's operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company
realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is
foreign exchange risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost
of currency cover also. Whenever, the currency cover costs are such as to neutralize the advantage in foreign currency, loans are
hedged so as to not to lose advantage. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.
i. Credit Risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only
financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence
risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit
determined by the company. The company has stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to fluctuation in market
prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments
affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign
currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help
us to mitigate such risk.
a. Foreign Currency Risk and sensitivity
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments
to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking
cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in
foreign currency exchange rate(s).
b. Interest Rate Risk and Sensitivity
The Company's exposure to the risk of changes in market interest rates relates primarily to long term debt. The Company
has entered into various interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference
between fixed and variable interest amounts calculated by reference to an agreed upon principal amount. Borrowings
at variable rates exposes to cash flow risk. With all other variables held constant, the following table demonstrates
composition of fixed and floating rate borrowing of the company and impact of floating rate borrowings on company's
profitability.
c. Commodity price risk and sensitivity
The Company is exposed to the movement in price of key raw materials in domestic and international markets. The
Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations.
The Company manages fluctuations in raw material price through hedging in the form of advance procurement when the
prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep
raw material and prices under check cost of material hedged to the extent possible.
CREDIT RISK
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 187.69 Crore and Rs. 167.68 Crore
as of March 31, 2025 and March 31, 2024, respectively. Trade receivables are typically unsecured and are derived from
revenue earned from customers primarily located in India. Credit risk has always been managed by the company through
credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the
Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses
expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the
expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company's historical
experience for customers.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective
of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirement.
The company has an established liquidity risk management framework for managing its short term, medium term and
long term funding and liquidity management requirements. The company's exposure to liquidity risk arises primarily from
mismatches of the maturities of financial assets and liabilities. The company manages the liquidity risk by maintaining
adequate funds in cash and cash equivalents. The company also has adequate credit facilities agreed with the banks to
ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.
*Net of Receivables USD 7.42 Million - Rs. 63.54 Crores (Previous year USD 6.04 Million - Rs. 50.37 Crores), EUR 0.31 Million - Rs. 2.90
Crores (Previous year EUR 0.13 Million - Rs. 1.18 Crores) and AED NIL (Previous year AED 0.12 Million - Rs 0.27 Crore).
Interest Rate Swaps
The Company has variable interest borrowings. To offset the risk of variation in interest rates, the Company has entered into, fix pay
and variable receipt, interest rate swaps. These swap contracts are in US Dollar, Euro and INR. Outstanding amortised notional value
of loan for swap contracts and MTM taken there on are as follows :
NOTE 55 : ACQUISITION OF CONTROLLING STAKE IN SUBSIDIARIES
i) The Board of Directors at its meeting held on 13th December 2024 had approved acquisition of 60% stake in Radhesham
Wellpack Private Limited (RWPL) by way of entering into a Share Purchase and Shareholders' Agreement (SPSHA). Acquisition
was completed on 3rd February 2025 pursuant to which RWPL became subsidiary of the Company. The impact of Business
Combination has been given in the Consolidated financials of the Company as per IND AS 103.
ii) The Board of Directors at its meeting held on 29th January 2025 had approved acquisition of 65% stake in Quadragen Vethealth
Private Limited (QVPL) by way of entering into a Share Purchase and Shareholders' Agreement (SPSHA). Acquisition of 62.14 %
equity share was completed on 25th March 2025 pursuant to which QVPL became subsidiary of the Company. The impact of
Business Combination has been given in the Consolidated financials of the Company as per IND AS 103.
NOTE 57 : IMPAIRMENT REVIEW
During the year, assets (including goodwill) are tested for impairment whenever there are any internal or external indicators of
impairment.The testing did not result in any impairment in the carrying amount of goodwill and other assets.
Impairment test is performed at the level of each Cash Generating Unit ('CGU') or groups of CGUs within the Company at which the
assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on
higher of value in use and value from sale calculations.The measurement of the cash generating units' value in use is determined
based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions
for short to- mid-term market conditions.
Key assumptions used in value-in-use calculations are:-
(i) Operating margins (Earnings before interest and taxes), (ii) Discount Rate, (iii) Growth Rates and (iv) Capital Expenditure
NOTE 58 information related to consolidated financials
The Company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS110,
Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on Company's web
site for public use.
NOTE 60 : Segment information
Information about primary segment
The Company has one reportable business segment i.e. Paper and Packaging and one geographical reportable segment i.e. Operations
mainly within India. The performance is reviewed by the Board of Directors (Chief operating decision makers).
NOTE 61 :
Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year's classification.
NOTE 62 :
Notes 1 to 61 are annexed to and form an integral part of financial statements.
The accompanying notes referred to above form an integral part of the Standalone Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors
for LODHA & CO LLP Harsh Pati Singhania
Chartered Accountants (DIN: 00086742) Vinita Singhania (DIN: 00042983)
Firm's Registration Number 301051E/E300284 Chairman & Managing Director Sushil Kumar Roongta (DIN: 00309302)
Anoop Seth (DIN: 00239653)
Deepa Gopalan Wadhwa (DIN: 07862942)
(Shyamal Kumar) A.S.Mehta Rajya Vardhan Kanoria (DIN: 00003792)
Partner (DIN: 00030694) Sandip Somany (DIN: 00053597)
Membership No. 509325 President & Director Directors
New Delhi, the 19th May, 2025
KR Veerappan Pradeep Joshi
Chief Finance Officer Company Secretary
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