I) Rupee Term Loan of Rs 174.66 lakhs (Previous Year 405.34 Lakhs) , carrying interest @ 9.40% p.a. Sanctioned Rs. 1125 lakhs in 2021-22 by HDFC bank with tenure of 60 months ending October 2026. The Loan is primarily secured by way of First Pari-pasu charge on immovable and movable Fixed Assets. Secondary Security is Personal Guarantee of Shri Shailesh Khaitan. This loan was used for the purpose it was drawn.
ii) Rupee Term Loan of Rs 561.97 lakhs (Previous Year 1012.50 Lakh) , carrying interest @ 7.55% p.a. Sanctioned Rs. 2250 lakhs in 2022-23 by AXIS bank with tenure of 60 months ending April 2027. The Loan is primarily secured by way of First Pari-pasu charge on immovable and movable Fixed Assets. Secondary Security is Personal Guarantee of Shri Shailesh Khaitan. This loan was used for the purpose it was drawn.
iii) Rupee Term Loan of Rs 0.00 Lakhs (Previous Year 110.61 Lakh) carrying interest @ 8.85% p.a, Sanctioned Rs 170 Lakhs in March 2023 by ICICI bank with tenure of 60 months ending March 2028. The Loan was secured by the hypothecation of the car and has been prepaid during the year .
iv) Rupee Term Loan of Rs 97.36 Lakhs (Previous Year 147.68 Lakh ) carrying interest @ 7.30% p.a, Sanctioned Rs 325 Lakhs in 2020-21 by HDFC bank with tenure of 84 months ending December 2027. The Loan is secured by the hypothecation of the car.
v) Rupee Term Loan of Rs 2200.00 Lakhs (Previous Year 2200.00 Lakhs) carrying interest @ 9.00% p.a, Availed from Shradha Projects Ltd . Rs 1588.00 Lakhs (Previous Year : 1588.00 Lakhs) & from The Majestic Packaging Pvt. Ltd. Rs 612.00 Lakhs (Previous Year : 612.00 Lakhs) in April 2025-26. This is Unsecured Related party Loan .
40. The Company is in the process of obtaining confirmations and reconciliation with its trade receivables, trade payables and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.
41. During the year, the Company disposed of certain building assets pursuant to the management's strategic decision to discontinue the related operations. Consequent to the disposal and measurement of related assets, impairment/loss amounting to Rs. 416.16 lakhs has been recognised and disclosed under discontinued operations in the Statement of Profit and Loss.
44. Leases
Operating lease - Company as lessee
(a) The Company has lease contracts for various land, buildings (godowns, office and residential premises), vehicles and other equipment used in its operations. Generally, the Company is restricted from assigning and subleasing the leased assets. The Company also has certain leases of godowns and other equipment with lease terms of 12 months or less. The Company applies the ‘short-term lease' recognition exemptions for these leases.
(b) Future minimum rentals payables under non-cancellable operating leases:
b) Other long-term benefits
Amount recognized as an expense and included in Note 34 Item “Provision for Gratuity and Leave encashment related expenses Rs. 39.72 lakhs (Previous year Rs 22.16 lakhs) for long term compensated Absences.
c) Defined benefits plans
i) Leave Encashment Expense Rs.23.95 lakhs (Previous year Rs.22.17 lakhs) has been recognized in “Provision for Gratuity and leave encashment” under Note 34. as per Actuarial Valuation.
The company does not have any exports, hence reporting on secondary segment does not arise.
51. Financial Risk Management objectives and Policies 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.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of 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 expose the Company to cash flow interest rate 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.
II. 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. 6552.51 Lakhs and Rs. 7543.20 lakhs as of March 31, 2026 and March 31, 2025 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.
iii) Liquidity risk
Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimise adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Company's approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and company monitors rolling forecasts of its liquidity requirements.
Competition and Price risk
The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.
55. Impact of Code on Social Security, 2020 have been duly incorporated in the financial statements.
56. Subsequent events
No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization of these financial statements.
57. a) The financial statements are presented in INR and all value are rounded to the nearest INR Lakhs, except when otherwise indicated. b) Other Statutory information
i) The Company do not have any benami property, and no proceeding has been initiated against the Company for holding any benami property.
iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company have not traded or invested in crypto currency or virtual currency during the financial year.
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.
v) The Company has not incured 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.
vi) The Company has not been declared willful defaulter by any banks or any other financial institution at any time during the financial year.
58. Previous year figures have been re-arranged and/or regrouped wherever considered necessary, to confirm current year classification.
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