1.2.13. Provisions, Contingent Liabilities and Contingent Assets
The Company estimates the provisions that have present obligations as
a result of past events and it is probable that outflow of resources will be
required to settle the obligations. These provisions are reviewed at the end of
each reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgements to assess contingent liabilities.
Contingent liabilities are disclosed when there is a possible obligation
arising from past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Group or a present obligation that arises
from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount
cannot be made. Contingent assets are neither recognised nor disclosed in
the standalone financial statements.
1.2.14. Fair Value measurement
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
which can be accessed by the Company for the asset or liability.
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.
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 Standalone 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:
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 assets and liabilities that are recognized in the Standalone Financial
Statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.
l.2.15Financial Assets
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
Subsequent measurement is determined with reference to the classification
of the respective financial assets. Based on the business model for managing
the financial assets and the contractual cash flow characteristics of the
financial asset, the Company classifies financial assets as subsequently
measured at amortized cost, fair value through other comprehensive income
or fair value through profit and loss.
Debt instruments at amortized cost
Debt instruments such as trade and other receivables, security deposits
and loans given are measured at the amortized cost if both the following
conditions are met:
Ý The asset is held within a business model whose objective is to hold
assets for collecting contractual cash flows, and
Ý Contractual terms of the asset give rise on specified dates to cash
flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.
After initial measurement, such financial assets are subsequently measured
at amortized cost using the effective interest rate (EIR) method. Amortized
cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the profit or loss. The losses
arising from impairment are recognized in the profit or loss.
Debt instruments at Fair value through Other Comprehensive Income
(FVOCI)
A ‘debt instrument' is classified as at the FVTOCI if both of the following
criteria are met:
Ý The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets, and
Ý the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest (SPPI)
on the principal amount outstanding
Debt instruments included within the FVTOCI category are measured initially
as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income (OCI).
Debt instruments at Fair value through Profit or Loss (FVTPL)
FVTPL is a residual category for debt instruments excluding investments in
subsidiary companies. Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
After initial measurement, any fair value changes including any interest
income, foreign exchange gain and losses, impairment losses and other net
gains and losses are recognized in the Statement of Profit and Loss.
Equity investments
All equity investments in scope of Ind-AS 109 are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For
all other equity instruments, the company decides to classify the same either
as at FVTOCI or FVTPL. The company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and
is irrevocable.
Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the Profit or loss.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a
group of similar financial assets) is primarily derecognized (i.e. removed from
the Company's Balance Sheet) when
Ý The rights to receive cash flows from the asset have expired, or
Ý The Company has transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received cash flows
in full without material delay to a third party under a ‘pass-through'
arrangement; and either:
Ý The Company has transferred substantially all the risks and rewards of
the asset, or
Ý The Company has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
On de-recognition, any gains or losses on all debt instruments (other than
debt instruments measured at FVTOCI) and equity instruments (measured
at FVTPL) are recognized in the Statement of Profit and Loss. Gains and
losses in respect of debt instruments measured at FVTOCI and that are
accumulated in OCI are reclassified to profit or loss on de-recognition. Gains
or losses on equity instruments measured at FVTOCI that are recognized and
accumulated in OCI are not reclassified to profit or loss on de-recognition.
1.2.16. Impairment of financial assets
The Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit
risk exposure:
a) Financial assets that are debt instruments, and are measured at
amortized cost e.g., loans, debt securities, deposits, trade receivables
and bank balance.
b) Financial assets measured at fair value through other
comprehensive income.
In case of other assets (listed as a) above), the company determines if there
has been a significant increase in credit risk of the financial asset since initial
recognition. If the credit risk of such assets has not increased significantly, an
amount equal to 12-month ECL is measured and recognized as loss allowance.
However, if credit risk has increased significantly, an amount equal to lifetime
ECL is measured and recognized as loss allowance.
1.2.17. Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case ofloans
and borrowings and payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as
described below:
Financial Liabilities at Fair Value through Profit or Loss (FVTPL)
Financial liabilities at fair value through profit or loss include financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities designated upon initial recognition at fair value through
profit or loss are designated at the initial date of recognition, and only if the
criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk is recognized
in OCI. These gains/ losses are not subsequently transferred to profit or loss.
However, the company may transfer the cumulative gain or loss within equity.
All other changes in fair value of such liability are recognized in the statement
of profit or loss.
Financial Liabilities at amortized cost
Financial liabilities classified and measured at amortized cost such as loans
and borrowings are initially recognized at fair value, net of transaction
cost incurred. After initial recognition, financial liabilities are subsequently
measured at amortized cost using the Effective interest rate (EIR) method.
Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of profit and loss.
Derecognition
A financial liability is derecognized when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the de-recognition of the original liability and
the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount is
reported in the standalone balance sheet if there is a currently enforceable
legal right to offset the recognized amounts and there is an intention to settle
on a net basis, to realize the assets and settle the liabilities simultaneously.
The legally enforceable right must not be contingent on future events and
must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the company, or the counterparty.
Borrowings
Borrowings are initially recognized at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortized cost. Any
differences between the proceeds (net of transaction costs) and the
redemption amount is recognized in Profit or loss over the period of the
borrowing using the effective interest method. Fees paid on the establishment
of loan facilities are recognized as transaction costs of the loan to the extent
that it is probable that some or all of the facilities will be drawn down. In this
case, the fee is deferred until the drawdown occurs.
The 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 the financial liability that has been
extinguished or transferred to another party and the consideration paid
including any noncash asset transferred or liabilities assumed, is recognized
in profit or loss as other gains/(losses).
Borrowings are classified as current liabilities unless the group has an
unconditional right to defer settlement of the liability of 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 Standalone Financial
Statement for issue, not to demand payment as a consequence of the breach.
1.2.18.Borrowing Cost
Borrowing costs directly attributable to the construction or production of
a qualifying asset are capitalized during the period of time that is required
for 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 capitalized 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 (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment
to interest costs) that an entity incurs in connection with the borrowing
of funds.
1.2.19.Taxes on Income
Current and Deferred Tax
Current tax is the amount of tax payable determined in accordance with the
applicable tax rates and provisions of the Income Tax Act, 1961 and other
applicable tax laws.
Deferred tax is recognized on differences between the carrying amounts of
assets and liabilities in the Balance sheet and the corresponding tax bases
used in the computation of taxable profit and are accounted for using the
liability method. Deferred tax liabilities are generally recognized for all taxable
temporary differences, and deferred tax assets are generally recognized for
all deductible temporary differences, carry forward tax losses and allowances
to the extent that it is probable that future taxable profits will be available
against which those deductible temporary differences, carry forward tax
losses and allowances can be utilized. Deferred tax assets and liabilities are
measured at the applicable tax rates. Deferred tax assets and deferred tax
liabilities are off set, and presented as net.
Current and deferred taxes relating to items directly recognized in reserves
are recognized in reserves and not in the Statement of Profit and Loss.
Unused tax credit
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future income
tax liability, is considered as an asset if there is convincing evidence that
the Company will pay normal income tax. Accordingly, MAT is recognized as
a deferred tax asset in the Balance Sheet when it is probable that future
economic benefit associated with it will flow to the Company.
1.2.20. Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax
(including the post-tax effect of extraordinary items, if any) by the weighted
average number of equity shares outstanding during the year. Diluted earnings
per share is computed by dividing the profit / (loss) after tax (including
the post-tax effect of extraordinary items, if any) as adjusted for dividend,
interest and other charges to expense or income (net of any attributable
taxes) relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.
1.2.21. Cash and Cash equivalents
For the purpose of presentation in statement of cash flows, cash and
cash equivalents includes cash on hand, deposit held at call with financial
institution, other short term, highly liquid investments with original maturities
of 3 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 Balance sheet.
1.2.22. Cash Flows
Cash flows are reported using the indirect method, whereby profit / (loss)
before extraordinary items and tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.
1.2.23.Segment Reporting
An operating segment is a component of the Company that engages in
business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the
Company's other components, and for which discrete financial information is
available. Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker is responsible for allocating resources
and assessing performance of the operating segments and has been
identified as the Managing Director of the Company.
1.2.24. Dividend
Final dividend on shares is recorded as a liability on the date of approval by
the shareholders and Interim dividends are recorded as a liability on the date
of declaration by the Company's Board of Directors.
1.2.25. Recent Pronouncements:
Ministry of Corporate Affairs ("MCA") notifies new standards of amendments
to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended March 31, 2025, MCA
has not notified any new standards or amendments to the existing standards
applicable to the Company.
2. Property, Plant and Equipment (Contd.)
(i) Leased Assets
The lease term in respect of assets acquired under finance leases expires within 56-72 years.
(ii) Assets given as security for borrowings
All the items of property, plant and equipment of the Company have been given to lenders as security for various borrowing facilities. (Refer Note 17)
(iii) Impairment
During the previous year, the Company had assessed recoverable amount of its property, plant and equipment by estimating its value in use. Based on the aforementioned
assessment it has been concluded that the recoverable amount is higher than the respective carrying amount except the moulded product division wherein based on
assessment, the impairment loss of Rs 420.42 lakhs was identified during the previous year and accordingly, the goodwill recognised of Rs 408.80 Lakhs relating to
Moulded products division was fully impaired.
(iv) Other Notes:
a) Property, Plant and Equipment values are carried in the Standalone financial statements on their Historic value (Cost of Acquisition).
b) Title deeds of all immovable properties of land and buildings which are freehold are in the name of the Company.
c) For capital commitments, Refer Note 47
d) The Company has not revalued any of its Property, plant and equipment and intangible assets during the year.
e) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property
17A. Borrowings (Contd.)
(a) Term Loan from Banks
Term Loan from Banks were repaid during the year.
(b) Loans from Non Banking Finance Company
i. Loan from Axis Finance Limited - The loan from Axis Finance Limited is repayable in 20 quarterly installments commencing from 31st December 2025 . Tenor of
the term loan is 7 years from the date of initial disbursement. Rate of Interest is 9.75 %
The loan is secured by -
1. First Pari Passu charge by way of mortgage over the movable and immovable fixed assets of the Borrower , both present and future
2. Second Pari Passu charge by way of hypothecation over the current assets of the Borrower , both present and future
3. Personal guarantee of Mr.Ved Krishna
The company has created & registered charge of Rs.75 Crores for the said loan.
ii. Loan from Aditya Birla Finance Limited - The loan from Aditya Birla Finance Limited is repayable in 20 quarterly installments commencing 30th June 2024. The
Applicable interest shall be 10.50 % p.a. payable monthly in arrears.
This loan is secured by -
1. First Pari Passu charge by way of hypothecation and mortgage over the fixed movable and immovable assets of the Borrower respectively, both present
and future
2. Second Pari Passu charge by way of hypothecation over the current assets of the Borrower, both present and future
3. Irrevocable and Unconditional Personal Guarantee of Promoter
The company has created & registered charge of Rs.50 Crores in relation to the said loan."
iii. Loan from Pradeshiya Industrial & Investment Corporation of UP Limited (PICUP) -
The above loan is interest free, repayable in the FY 2027-28 and is secured by bank guarantee.
During last year, the tenure of two loans out of total of four loan availed from Pic UP due for repayment in FY 2024-25 was extended and the said loans are now
repayable in FY 2027-28 and The resultant impact of Rs. 18.06 lakhs has been recognized in the Statement of Profit and Loss during previous year.
iv. Loans from Related parties -
The loan from Yash Agro Products Limited & Loan from Ved Krishna are repayable after repayment of loan from Banks (UCO Bank & United Bank).
The loan from Ved Krishna is Interest-free loan.
The loan from Yash Agro Products Limited carries interest rate of 10 %.
(a) Working Capital Loans from Banks -
i. Working Capital Demand Loan (WCDL) From HDFC Bank -
The company has availed WCDL of Rs.60 crores during the year. The rate of interest for the same is 8.75% p.a.or as may be decided at the time of WCDL disbursal
time to time.
This is secured by -
Current Assets : First Pari Passu charge with other WC lenders over entire current assets of the company consisting of Raw Material, Stock in Process, FG, Stores
and spares and receivables.
Movable Fixed Assets : Second Pari Passu charge on entire current and future Movable fixed assets of the Company.
Factory Land and Building : Second Pari Passu charge with other lenders on Company Plant, Property Land and Building of the Company.
Personal Guarantee: Personal Guarantee of Shri. Ved Krishna and Mrs. Manjula Jhunjhunwala
Corporate Guarantee : Corporate Guarantee of M/s Yash Agro Products Ltd and M/s Satori Global Ltd"
ii. Cash Credit from Axis Bank -
Cash Credit availed during the year amounted to Rs.40 crores. The applicable interest rate ranges from 9.20% to 9.30%.
This is secured by -
- Primary: First pari passu charge by way of hypothecation over the current assets of the Borrower, present and future.
- Collateral: Second pari passu charge by way of mortgage over the fixed movable and immovable assets of the Borrower, present and future.
1. Land Building at Yash Nagar parakhan Faizabad Uttar Pradesh224135, Mohalla -Rampur, Halwara, Plot no. 149, 199, 40, 185, 187 (Ga), 242, 196, 187 (Ang0, 128, 139,
142 (kha), 144, 174, 184, 187, 384, 187 (k), 187 (kha), 187 (gha), 183, 195
2. Parakahan and khata no.283, plot no. 21, 22, 23 Khata no.25, Plot no. 4mi, 5mi, 6mi, 7mi. Mauja Rampur Halwara & Parakhan, Per Haweli Awadh Distt-Faizabad Now
Ayodhya). Total (2761 Hec). The property stands in the name of borrower and has RV of Rs 94.92 Cr as per valuation dated 22.01.2025.
37. Employee Benefit Disclosures (Contd.)
i) Mortality rates considered are as per the published rates in the India Assured Lives Mortality 2012-14 (P.Y. 2012-14): India Assured Lives Mortality (2006-08)
(Modified) ULT. ) mortality table.
ii) The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.
iii) The contribution made by the Company for funding its liabilities for gratuity during the financial year 2024-25 amounts to Rs.110.00 lakhs (PY Rs. 200.00 Lakhs).
iv) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over entire life of the related obligation.
v) The assumption of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotion, supply and demand and other
relevant factors.
d) Terms and conditions of transactions with related parties
Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The transactions with related parties are made in the
ordinary course of business. No provisions are held against receivables from related parties.Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash.
e) Other Notes
No amount has been written off/back or provision made for loss allowance during the year in respect of related parties except as disclosed above.
39. Financial Instruments
(i) Capital Management
The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding
requirements are met through equity and other long-term/short-term borrowings. The Company's policy is aimed at combination of short-term and long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Total borrowings includes all long and short-term borrowings as disclosed in notes 17 to the financial statements.
Calculation of Fair Values
The fair values of the financial assets and liabilities are defined as 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 following methods and assumptions have been used to estimate the fair values of financial instruments:
a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the reporting date.
b) The fair value of the long-term 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 underlying credit risk of the Company (since the date of inception of the loans)
c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities is estimated by discounting future cash flows
using rates currently available for debt or similar terms and remaining maturities.
d) Cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities have fair values that approximate to their carrying
amounts due to their short-term nature.
Fair value measurements recognized in the balance sheet:
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on
the degree to which the fair value is observable.
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 fair value measurements are those derived from 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 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market
data (unobservable inputs).
The Company's principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is
to raise finance for the Company's operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly
from its operations.
The main risks arising from Company's financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of
Directors review and agree policies for managing each of these risks.
(a) Credit risk:
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 trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of
all the financial instruments covered below is restricted to their respective carrying amount.
Trade and Other receivables
Customer credit is managed by each business unit subject to the Company's established policies, procedures and control relating to customer credit risk
management. Trade receivables are non-interest bearing and the agreed divisional payment terms are : (i) Paper & Pulp - Domestic Sale 20 days, Export Sale
30-90 days. (ii) Moulded - 30 days. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are
regularly monitored.
The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the
entity operates. Loss rates are based on actual credit loss experience and past trends.
At 31st March, 2025, the Company's top three customers accounted for Rs.1,537.30 lakhs of the trade and other receivables carrying amount (P.Y. : Rs.1082.53
lakhs).
39. Financial Instruments (Contd.)
Other financial assets
The Company maintains exposure in cash and cash equivalents and term deposits with banks.
The Company held cash and cash equivalents of Rs.6515.20 lakhs at 31st March, 2025 (P.Y.: Rs.5354.13 lakhs). Cash and cash equivalents are held with reputable
and credit-worthy banks.
Individual risk limits are set for each counter party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are
actively monitored by the Management of the Company.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
(b) Market risk:
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises
three types of risk: currency risk, interest rate risk and price risk.
(I) Foreign currency risk
The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee.
Company's exposure is mainly denominated in U.S. dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to
fluctuate substantially in the future.
The Company does not use derivative financial instruments for trading or speculative purposes.
The carrying amounts of the Company's financial assets and financial liabilities denominated in foreign currencies at the reporting date are as follows:
The following table details the Company's sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currency receivables
and payables. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase
in profit and other equity where the respective functional currency strengthens by 5% against the relevant foreign currency. For a 5% weakening of the
functional currency against the relevant currency, there would be an equal and opposite impact on the profit and other equity, and the balances below would
be negative.
(II) Interest rate risk:
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an
impact on the Company's cash flows as well as costs.
Interest rate sensitivity analysis:
The Company is exposed to interest rate risk because company borrow funds at both fixed and floating interest rates. The risk is managed by the Company
by maintaining an appropriate mix between fixed and floating rate of borrowings.
The Company's borrowings which are contracted at a fixed rate , are carried at amortised cost. Further these borrowings are not affected due to interest rate
risk as defined in Ind AS 107 as neither the carrying amount nor the future cash flows will fluctuate in the event of a change in market interest rates.
The risk estimates provided assume a parallel shift of 25 basis points interest rate. This calculation also assumes that the change occurs at the balance sheet
date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average
debt outstanding during the period.
This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
(Note: The impact is indicated on the profit/(loss) before tax basis)."
(III) Liquidity risk:
The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times
through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has a cash credit facility
with banks to support any temporary funding requirements.
The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet
requirements. Accordingly, liquidity risk is perceived to be low.
Liquidity table:
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their contractual maturities.
The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows along with its
carrying value as at the Balance Sheet date.
(IV) Other price risk:
The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2025. Equity investments are held for strategic
rather than trading purposes. The Company does not actively trade these investments.
Equity price sensitivity analysis:
There is minimum exposure to equity price risks as at the reporting date or as at the previous reporting date.
40.Segmental Information
Business Segment
The Company has determined following reporting segments based on the information reviewed by the Company's Chief Operating Decision Maker ('CODM').
a) Paper, Pulp and other products
b) Moulded Products
43. Disclosure in terms of Ind AS 102 on the Share-based Payment Arrangement
A. Description of share-based payement arrangement
Share Option Programme (Equity Settled)
The members of the Company had approved the YASH TEAM STOCK OPTION PLAN - 2021' (‘TSOP'/ ‘Plan') at the extra ordinary general meeting held on 6th May
2022.The plan envisaged grant of share options to eligible employees at market price as defined in Securities and Exchange Board of India (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 (‘SBEB Regulations').The Plan covers eligible employees (except promoters or those belonging to the promoters' group,
independent directors and directors who either by himself or through his relatives or through any body-corporate, directly or indirectly holds more than 10%of the
outstanding Shares of the Company). Under the Scheme, the Nomination and Remuneration Committee of directors of the Company, administers the Scheme and
grants stock options to eligible directors or employees of the Company.The Committee determines the employees eligible for receiving the options and the number of
options to be granted subject to overall limit of 20,00,000 (Twenty Lakhs Only) equity shares of the Company.
(i) Tranch-I: Pursuant to above, during FY 2022-23, the Company has granted 14,16,600 options at an exercise price of INR 82.21 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 3.5 years from the date of last vesting. During the year the Company has allotted 10,89,600 equity
shares at Rs. 82.21 per equity share upon exercise of share options vested in terms of TSOP -2021 plan. The remaining options would have to be exercised by the
concerned eligible team of the Company, before the end date i.e., 31st December, 2026 from the date of respective vesting.
(ii) Tranch-II: Pursuant to above, during FY 2023-24, the Company has granted 1,25,400 options at an exercise price of INR 118.13 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 2.5 years from the date of last vesting.The said options would have to be exercised by the concerned
eligible team of the Company, before the end date i.e., 31st December, 2026 from the date of respective vesting.
(iii) Tranch-III: Pursuant to above, during FY 2024-25, the Company has granted 22,500 options at an exercise price of INR 239.63 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 1.5 years from the date of last vesting.The said options would have to be exercised by the concerned
eligible team of the Company, before the end date i.e., 31st December, 2026 from the date of respective vesting.
50. Other disclosures as per amended Schedule III-
(i) The Company do not have any transactions with Companies stuck off as per section 248 of the Companies Act, 2013.
(ii) The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.
(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
(iv) 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(v) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the Companies Act, 2013
(vi) During the year, the Company repaid two term loans, However, filing of satisfaction of charge related to these loans is still pending. There are no other charges that
are yet to be registered with the Registrar of Companies beyond the statutory period
(vii) 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:
(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."
(viii) 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:
(a) 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
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries"
(ix) The Company has complied with the requirements of clause 87 of section 2 of the Companies Act 2013 read with Compliance (Restriction on number of layers)
Rules, 2017.
51. Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on , 30 May, 2025
As per our attached report of even date For and on behalf of the Board
For C N K & Associates LLP Jagdeep Hira Gautam Ghosh
Chartered Accountants Managing Director Executive Director
Firm Registration No.: 101961W/W-100036 DIN: 07639849 DIN: 10371300
Place: Ayodhya Place: Ayodhya
Date: 30.05.2025 Date: 30.05.2025
Diwakar P. Sapre Neetika Suryawanshi Sachin Kumar Srivastava
Partner Chief Financial Officer Company Secretary
Membership No.: 040740
Place: Mumbai Place: Ayodhya Place: Ayodhya
Date: 30.05.2025 Date: 30.05.2025 Date: 30.05.2025
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