xi. Provisions ana contingencies
Necessary provisions are made for the present obligations that arise out of past events entailing future outflow of economic
resources. Such provisions reflect best estimates based on available information.
However a disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
xii. Government Grant
Grants and subsidies from the government are recognized if the following conditions are satisfied,
• There is reasonable assurance that the Company will comply with the conditions attached to it.
• Such benefits are earned and reasonable certainty exists of the collection.
However, company has opted for recording non monitory government grants at nominal value as per the Companies (India
Accounting Standards) second amendment rule 2018 notified as on 20th September 2018
xiii. Segment Reporting
The business of the Company falls under a single Reportable segment i.e. "Reinforced Polypropylene" for the purpose of Ind
AS 108.
B.5 Other accounting policies
i. Fair value measurement
The Company measures financial instruments such as 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:
• In the principal market for the asset or liability
Or
• 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.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in
its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Company’s management determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measured at fair value.
When required, external valuation experts are involved for valuation of assets and liabilities as per requirement of standard.
Involvement of external valuation experts is decided upon annually by the management.
ii. Intangible Assets
Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will
flow to the Company and the cost of the asset can be measured reliably.
Internally generated intangibles, excluding capitalized developments costs, are not capitalized and the related expenditure is
reflected in the statement of profit and loss for the period in which expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite. The amortization period and amortization
method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are
considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates.
Intangible assets with finite useful lives are amortized by using Written down value over the useful economic life and assessed
for impairment whenever there is an indication that the intangible asset maybe impaired. Amortization of Intangible assets is
[nr111rl or] in th o rl o nroriatinn a nrl amnrti7atinn in th o ctatomont nf Prrvfit a nrl I ncc
Intangible assets with indefinite useful lives, if any are not amortized, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether
the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective
basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.
Intangible assets are recorded at the consideration paid for acquisition. In case of internally generated intangible assets,
expenditure incurred in development phase, where it is reasonably certain that the outcome of development will be
commercially exploited to yield future economic benefits to the Company, is considered as an intangible asset. Such
developmental expenditure is capitalized at cost including a share of allocable expenses.
iii. Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. 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 to known amounts of
cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.
iv. Trade Receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant
financing components, when they are recognised at fair value. The company holds the trade receivables with the objective of
collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective
interest method, less loss allowance.
v. Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year
which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months
after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using
the effective interest method.
vi. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using the effective interest method.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss as other gains/(losses).
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan
arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the
reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before
the approval of the financial statements for issue, not to demand payment as a consequence of the breach.
vii. Borrowing Cost
Borrowing Costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized till the
month in which the asset is ready to use, as part of the cost of that asset. Other borrowing costs are recognized as expenses
in the period in which these are incurred.
viii. Cash dividend
The Company recognizes a liability to make cash distributions to the equity holders of the Company when the distribution is
authorized and the distribution is no longer at the discretion of the Company. As per the provisions of Companies Act, 2013, a
distribution is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.
Non-cash distributions, if any, are measured at the fair value of the assets to be distributed with fair value re-measurement
recognized directly in equity.
Upon distribution of non-cash assets, any difference between the carrying amount of the liability and the carrying amount of
the assets distributed is recognized in the statement of profit and loss.
ix. Earnings Per Share
Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
x. Cash Flow Statement
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of
a non cash nature and any deferral or accruals of past or future cash receipts or payments. The cash flows from regular
operating, investing and financing activities of the Company are segregated.
xi. Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the
requirement of Schedule III, unless otherwise stated.
Notes to the Financial Statements
(All amounts are in Rupees lakhs, unless stated otherwise)
Note 37: Financial instruments risk management objectives and policies
The Company’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables and other
financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations to support its
operations. The Company’s principal financial assets include trade and other receivables, cash and short-term deposits and
other financial assets that derive directly from its operations.
The company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Audit Committee and Board review financial risks and the appropriate risk governance
framework for the company’s financial risks are identified, measured and managed in accordance with the Company’s policies
and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below.
A) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price
risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, trade and other
receivables, trade and other payables and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024.
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and leave encashment
provisions. The following assumption has been made in calculating the sensitivity analyses:
• The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.
i) Interest rate risk
a.Exposure
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.
iii) Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require a continuous supply ol
polypropylene. However, the company being indirect user of these commodities and based on past trend to pass on those
volatility to customers, does not have direct impact on profitability over a period of time.
iv) Other Price Risk
The company does not hold investments in equity or mutual fund as on the date of Balance Sheet and hence it is not exposec
to any such risks.
v) Equity price risk
The Company has not made any investment in equity instruments and hence, the Company do not foresee any risk from this
unlisted equity shares.
B) Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
investing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Trade receivables
Receivables are reviewed, managed and controlled for each class of customers separately. Credit exposure risk is mainly
influenced by class / type of customers, depending upon their characteristics. Credit risk is managed through credit approva
process by establishing credit limits along with continuous monitoring of credit worthiness of customers to whom credit terms
are granted. Wherever required, credit risk of receivables is further covered through letter of credit, bank guarantee, business
deposits and such other forms of credit assurance schemes.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large
number of minor receivables are combined into homogenous category and assessed for impairment collectively. The
calculation is based on actual incurred historical data. The Company does not hold collateral as security. The Company
evaluates the concentration of risk with respect to trade receivables as low, as its customers are spread over vast spectrum.
C) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of underlying businesses, company’s treasury maintains flexibility in funding by
maintaining availability under committed credit lines.
Management monitors rolling forecast of the company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows. This is generally carried out at the local level in the operating companies of the group in accordance with
the practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in
which the entity operates. In addition, the company’s liquidity management policy involves projecting cash flows in major
currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and maintaining debt financing plans.
(i) The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:
* For the purpose of Net Debt reconciliation disclosed above Cash Credits are included in Cash and Cash equivalents and not
in Borrowings.
** Amount does not include Interest expense - others of Rs. 258.09 (PY - Rs. 205.68) and Other bank charges of Rs. 97.63 (PY -
Rs. 101.04) (Refer Note 27)
a Represent lease modification
Note 38 : Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure
that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder
value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and
31 March 2024.
The gearing ratios were as follows:
NOTE 41: Additional regulatory information required by Schedule III
i) Details of benami property:
No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made the reunder.
ii) Relationship with struck off companies:
The company has not entered into transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.
iii) Borrowings obtained on the basis of security of current assets:
The Company has not obtained any borrowings from banks and financial institutions on the basis of security of current assets.
iv) Revaluation of property, plant and equipment and intangible assets:
The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.
v) Tittle deeds of immovable properties:
The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease
agreements are duly executed in favor of the
lessee) are held in the name of the company.
vi) The company has not advanced or loaned or invested funds to any other person(s) or entity, 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 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:
vii) Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been
recorded in the books of account.
viii) Details of crypto currencies:
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
ix) Willful defaulters:
The company has not been declared willful defaulter by any bank or financial institution or government or any government
authority.
x) Registration of charges or satisfaction with Registrar of Companies:
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.
xi) Compliance with approved scheme(s) of Arrangements:
The company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
xii) Utilization of borrowings availed from banks and financial institutions
The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which
such loans were taken.
Note 42:
Previous year’s figures have been re-grouped wherever considered necessary to make them comparable with those of the
current year.
Signatures to Note 1 to 42, forming part of the Financial Statements
As per our attached report of even date For and on behalf of the board of directors
For P G BHAGWAT LLP BO JINGEN Mr. Doraiswami Balaji
Chartered Accountants Managing Director Whole Time Director
Firm Registration Number : DIN : 06617986 DIN: 08256342
101118W/W100682
ABHIJIT SHETYE CHEN XIAOQIONG
Partner Chief Financial Officer
Membership Number : 151638
Pune:28 May 2025
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