Q) Provision and Contingent Liabilities:
A Provision is recognized when an enterprise has a present
obligation as a result of past event and it is probable
that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be
made. Provisions are determined based on management
estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date
and adjusted to reflect the current management estimates.
Contingent Liabilities are not recognized but are disclosed
in the notes. Contingent Assets are neither recognized nor
disclosed in the financial statements.
R) Derivatives:
Derivative financial instruments such as forward contracts,
option contracts and cross currency swaps, to hedge its
foreign currency risks are initially recognized at fair value
on the date a derivative contract is entered into and are
subsequently re-measured at their fair value with changes
in fair value recognized in the Statement of Profit and Loss
in the period when they arise.
S) Employee benefits
(i) Short-term obligations :
Liabilities for wages and salaries, including
non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognized in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(ii) Post-employment obligations :
The Company operates the following post-employment
schemes:
(a) Defined benefit plans such as gratuity; and
(b) Defined contribution plans such as provident
fund and superannuation fund.
a) Gratuity obligations
The liability or assets recognized in the balance sheet in
respect of gratuity plans is the present value of the defined
benefit obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit obligation
is calculated annually by actuaries using the projected
unit credit method
The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee
benefit expense in the statement of Profit and Loss.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognized in the period in which they occur, directly in
other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in
the balance sheet.
Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments
are recognized immediately in profit or loss.
b) Defined contribution plans
The Company pays provident fund contributions to
publicly administered funds as per local regulations and
superannuation fund to LIC. The Company has no further
payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution
plans and the contributions are recognized as employee
benefit expense when they are due.
T) Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year
and excluding treasury shares.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into
account:
- the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and
- t he weighted average number of additional equity
shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.
U) Recent Accounting Pronouncements :
Ministry of Corporate Affairs (“MCA”) notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. During the year ended March 31, 2025, MCA has
notified Ind AS 117 Insurance Contracts and amendments
to Ind As 116 Leases, relating to sale and lease back
transactions, applicable from April 1, 2024. The Company
has assessed that there is no significant impact on its
financial statements.
On May 9, 2025, MCA notifies the amendments to Ind
AS 21 Effects of Changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance on
assessing currency exchangeability and estimating exchange
rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning
on or after April 1, 2025. The Company is currently
assessing the probable impact of these amendments on its
financial statements.
b) Terms/rights attached to equity :
The Company has issued only one class of equity shares having a par value of ' 2/- per share. Each holder of equity share is
entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution
of all preferential amounts, in proportion to their shareholdings.
42) RELATED PARTY DISCLOSURES :
As per Ind AS 24, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below.
List of related parties where control exists and related parties with whom transactions have taken place and relationships:
(a) Key Management Personnel (KMP) : Shri Ramesh D. Poddar -Chairman & Managing Director, Shri Pawan D. Poddar
-Joint Managing Director, Shri Shrikishan Poddar - Executive Director, Shri Gaurav Poddar - President and Executive Director
,Shri Ashok Jalan - Sr. President cum Director, Shri Surendra Shetty - Chief Financial Officer, Shri William Fernandes - Company
Secretary
(b) Relatives of Key Management Personnel (KMP) : Smt. Ashadevi R Poddar, Shri. Avnish Poddar, Shri Harshit S. Poddar
upto 31.05.2024. Smt.Vibha Poddar upto 31.05.2024., Shri Ankit Pramod Poddar, Smt. Sangeeta Poddar upto May 31, 2023,
Smt. Anshruta Poddar upto May 31, 2023.
(c) Non Executive Directors and Enterprises over which they are able to exercise significant influence: Smt.Mangala
R.Prabhu Shri.Ashok N.Desai, Shri.Chetan S.Thakkar, Shri.Deepak R.Shah, Shri.Sachindra N.Chaturvedi.
(d) Subsidiary : Cadini S.R.L. (100% wholly owned subsidiary, incorporation in Italy).
(e) Other Related Parties (Enterprises - KMP having significant influence / Owned by Major Shareholders) :
Sanchna Trading & Finance Ltd.,S.P Finance & Trading Ltd, Wavelink Fabrics LLP erstwhile Santigo Textile Mills Ltd., Vishal
Furnishings Ltd., Golden Fibres LLP Beetee Fabrics Pvt Ltd erstwhile Beetee Textile Industries Ltd, Balkrishna Paper Mills
Ltd.,Vishal Furnishings Singapore, White Lights Food Pvt.Ltd., Tarapur Environment Protection Society,Kanga & Co., Vibrant
Clothing Co.Pvt.Ltd.,M/S.DRPS Enterprises LLP Oxemberg Fashions Ltd
# The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority promotion and other relevant
factors including supply and demand in the employment market. The above information is certified by the actuary.
VII) Sensitivity Analysis :
The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change
in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the
method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The
methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous
period.
VIII) Risk Exposure - Asset Volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform
this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in
government securities.
45) FAIR VALUE MEASUREMENT:
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values :
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities ,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term
maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account
for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.
3. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instrument by
valuation technique.
Level 1 : quoted (unadjusted) price in active markets for identical assets or liabilities
Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly.
Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.
46) FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES:
In the course of business, the Company is exposed to certain financial risk that could have considerable influence on the
Company's business and its performance. These include market risk ( including currency risk, interest risk and other price risk),
credit risk and liquidity risk. The Board of Directors review and approves risk management structure and policies for managing
risks and monitors suitable mitigating actions taken by the management to minimise potential adverse effects and achieve greater
predictability to earnings.
In line with the overall risk management framework and policies, the treasury function provides service to the business, monitors
and manages through an analysis of the exposures by degree and magnitude of risks. It is the Company's policy that no trading
in derivatives for speculative purposes may be undertaken. The company uses derivative financial instruments to hedge risk
exposures in accordance with the Company's policies as approved by the Board of Directors.
a) Market Risk - Interest rate risk:
Interest rate risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating
interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to
manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Sensitivity analysis below has been determined based on the exposures to interest rates at the end of the reporting
period. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability as at the end of the
reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest
rate risk internally to key management personnel and represents Management's assessment of the reasonably possible
changes in interest rates.
b) Market Risk- Foreign currency risk.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to its
operating activities.The Company manages its foreign Currency risk by hedging transaction that are expected to occur within
a maximum 12 month periods for hedge of forecasted sales and purchases in foreign currency. The hedging is done through
foreign currency forward contracts.
c) Price Risk in Investments
Investment in mutual funds involves market-linked risks, including price risk, where the Net Asset Value (NAV) of a fund may
fluctuate due to changes in market conditions. The value of investment can rise or fall based on the performance of the
underlying securities in the fund's portfolio. Equity and debt securities held by the fund are subject to daily price movements
due to market volatility, economic developments, geopolitical events, and investor sentiment.
d) Credit Risk
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on customer profiling, credit
worthiness and market intelligence. Trade receivables consist of a large number of customers, spread across geographical
areas. Outstanding customer receivables are regularly monitored. The average credit period is in the range of 30 -90 days.
However in selected cases credit is extended which is backed by security deposit/bank guarantee/letter of credit and other
firms. The Company's Trade receivables consist of a large number of customers, across geographies hence the Company is
not exposed to concentration risk.
The Company measures the expected credit loss of trade receivables from individual customers based on historical trend,
industry practices and the business environment in which the entity operates.
52) During the year, the Company has received ' 1700 Lakhs from its investment in Balkrishna Paper Mills Ltd, comprising 17,00,000,
9% cumulative redeemable preference shares.
53) The Company has recognized government grants in the nature of capital subsidy relating to the Property, Plant and Equipment
(PPE). According to the Company's accounting policy, Grants relating to PPE that have already been fully depreciated are included
in the “Other Income” and grants related to PPE in respect of which balance useful life is remaining, are treated as deferred income
over the period and unamortised portion of grant shown under liabilities.
54) The Board of Directors of the Company had approved the Scheme of Arrangement between the Company and its shareholders
under Sections 230 of the Companies Act, 2013 (“Scheme”), which, inter-alia, provides for issuance and allotment of 9% Cumulative
Non-Convertible Redeemable Preference Shares by way of bonus in 2 Series(i.e.4 (four) 9% Cumulative Non-Convertible
Redeemable Preference Shares of T 10/- each fully paid up of the Company for every 1 equity share of T 2/- each fully paid
up (“Series I”) and 3 (three) 9% Cumulative Non-Convertible Redeemable Preference Shares of T 10/- each fully paid up of the
Company for every 1 equity share of T 2/- each fully paid up (“Series II”). “Series I” and “Series II” will be redeemed at the end of 3
Years and 5 Years, respectively, from the date of it's issuance. The scheme is, inter-alia, subject to receipt of the statutory, regulatory
and other requisite approvals, including approvals from stock exchanges, jurisdictional National Company Law Tribunal (“NCLT”)
and the shareholders and creditors (as applicable) of the Company.
55) EVENTS OCCURRING AFTER BALANCE SHEET DATE :
The Company has recommended final dividend of ' 5/- (250%) per equity share of ' 2/-each, for the financial year 2024-25 (Refer
note 39)
56) The Code on Social Security, 2020 ('Code') has been notified in the Official Gazette in September 2020 which could impact the
contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would
become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification
of relevant provisions.
57) APPROVAL OF FINANCIAL STATEMENTS :
The financial statements were approved for issue by the directors on May 12, 2025.
58) OTHER STATUTORY INFORMATION :
i) The Company do not have any Benami Property, where any proceeding has been initiated or pending against the Company
for holding any Benami Property.
ii) The Company do not have any transaction with companies struck off.
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.
v) The Company does not have 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 as Wilful defaulter by any Banks, Financial institution or Other lenders.
vii) The Company has 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 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:
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 to or on behalf of the ultimate beneficiaries
ix) Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are
in agreement with the books of accounts.
x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which
it was obtained.
xi) The title deeds of all the immovable properties (other than immovable properties where the Company is
the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements
included in property, plant and equipment and investment properties are held in the name of the Company as at the
balance sheet date.
59) The previous year's figures have been regrouped reclassified, wherever considered necessary.
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date attached.
For Jayantilal Thakkar & Co. For and on behalf of the Board of Directors
Chartered Accountants
( Firm Registration No.104133W )
(Viral A. Merchant) R.D.Poddar P.D.Poddar
Partner Chairman and Managing Director Joint Managing Director
Membership No. 116279 DIN 00090104 DIN 00090521
S. S. Shetty W.V. Fernandes
Mumbai, May 12, 2025 Chief Financial Officer Company Secretary
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