(m) Provisions and Contingent liabilities
Provisions
Provisions are recognised when, as a result of a past event, the Company has a legal or
constructive obligation; it is probable that an outflow of resources will be required to settle the
obligation; and the amount can be reliably estimated. The amount so recognised is a best
estimate of the consideration required to settle the obligation at the reporting date, taking into
account the risks and uncertainties surrounding the obligation. In an event when the time value
of money is material, the provision is carried at the present value of the cash flows estimated to
settle the obligation by discounting at a pre-tax rate that reflects current market assessments
of the time value of money and the risk specific to the liability.
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 Company 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 or a reliable estimate of the amount cannot be made.
Contingent Assets
Contingent assets are neither recognised nor disclosed in the financial statements. However,
when the realisation of income is virtually certain, then the related asset is not a contingent
asset and is recognised.
(n) Government Grant
Government Grants are recognised where there is reasonable assurance that the grant will be
received and all the attached conditions will be complied with. When the grant relates to an
expense item, it is recognised as income on a systematic basis over the periods that the related
costs, for which it is intended to compensate, are expensed. When the grant relates to an asset,
it is recognised as income in equal amounts over the expected useful life of the related asset.
Government grants relating to the purchase of property, plant and equipment are included in
current / non-current liabilities as deferred income and are credited to profit or loss on a straight¬
line basis over the expected lives of the related assets and presented within other income.
(o) Revenue recognition
Revenue from Contracts with Customers
• Revenue is recognized on the basis of approved contracts regarding the transfer of goods
or services to a customer for an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.
• Revenue is measured at the fair value of consideration received or receivable taking into
account the amount of discounts, incentives, volume rebates, outgoing taxes on sales. Any
amounts receivable from the customer are recognised as revenue after the control over the
goods sold are transferred to the customer which is generally on dispatch/delivery of goods.
• Variable consideration - This includes incentives, volume rebates, discounts etc. It is
estimated at contract inception considering the terms of various schemes with customers
and constrained until it is highly probable that a significant revenue reversal in the amount
of cumulative revenue recognized will not occur when the associated uncertainty with
the variable consideration is subsequently resolved. It is reassessed at end of each
reporting period.
• Significant financing component - Generally, the Company receives short-term advances
from its customers. Using the practical expedient in Ind AS 115, the Company does not
adjust the promised amount of consideration for the effects of a significant financing
component if it expects, at contract inception, that the period between the transfer of
the promised good or service to the customer and when the customer pays for that good
or service will be one year or less.
Export incentives are recognized on accrual basis, (except when there are significant
uncertainties) based on estimated realizable value of such settlements.
Other income is recognized on accrual basis, (except when there are significant uncertainties).
Dividend income is recognized when the right to receive payment is established, which is
generally when shareholders approve the dividend. Interest income is recognised in the
Statement of Profit and Loss using the effective interest method.
(p) Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of assets
that takes substantial period of time to get ready for their intended use, are capitalized. Other
borrowing costs are recognized as expenditure for the period in which they are incurred.
(q) Income tax
The income tax expense comprises of current and deferred income tax. Income tax is recognised
in the statement of profit and loss, except to the extent that it relates to items recognised in the
other comprehensive income or directly in equity, in which case the related income tax is also
recognised accordingly.
a. Current tax
Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in
respect of taxable income for the period using tax rates and tax laws enacted during the period,
together with any adjustment to tax payable in respect of previous years. The payment made in
excess / (shortfall) of the Company's income tax obligation for the period are recognised in the
balance sheet as current tax assets / liabilities.
b. Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax
laws enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilised.
Deferred tax assets are recognised for the future tax consequences to the extent it is probable
that future taxable profits will be available against which the deductible temporary differences
can be utilised.
Deferred tax assets and liabilities are offset when there is legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances related to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable
right to offset and intends either to settle on net basis, or to realize the asset and settle the
liability simultaneously.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or
loss (in other comprehensive income).
(r) Foreign Currency translation
The functional and presentation currency of the Company is Indian Rupee. In preparing the
financial statements of the Company, on initial recognition transactions in foreign currencies,
other than the Company's functional currency are recognised at the rates of exchange prevailing
at the dates of the transactions. Exchange difference arising on foreign exchange transactions
settled during the year is recognised in the statement of profit and loss.
At the end of each reporting period, monetary assets and liabilities denominated in foreign
currencies are translated at the rate prevailing at that date. The exchange gain/loss arising
during the year is recognised in the Statement of Profit and Loss.
The non-monetary items that are measured at historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction. Non- monitory items that are measured
at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value is measured.
(s) Leases
The company assesses whether a contract contains a lease, at inception of a contract. A contract
is, or contains, a lease if the contact conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. The assessment involves the exercise of
judgement about whether :
a) the contract involves the use of identified asset;
b) the company has substantially all of the economic benefits from the use of the asset
through the period of lease, and
c) the company has the right to direct the use of the asset.
i) As a lessee
The Company recognises a right-of-use of asset and lease liability at the lease commencement
date. The right of use of asset is initially measured at cost, which comprise the initial amount of
the lease liability adjusted for any lease payments made at or before the commencement date,
plus any initial direct cost incurred and an estimate of cost to dismantle and remove the
underlying assert or the site on which it is located, less any lease incentives received.
The right to use of asset is subsequently depreciated using the straight line method from the
commencement date to the earlier of the end of useful life of the right-of-use of asset or the end
of the lease term. The estimated useful life of the right-of-use of asset are determined on the
same basis as those of property and equipment. In addition, the right-to- use of assets periodically
reduced by impairment losses. If any, and adjusted for certain re-measurements of the lease
liability.
The lease liability is initial measured at the present value of the lease payments that are not
paid the commencement date, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the
Company uses its incremental borrowing rate as the discount rate.
Subsequently the lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in future lease payments arising from a change
in an index or rate. If there is a change in Company's estimate of the amount expected to be
payable under a residual value guarantee, or if Company changes its assessment of whether it
will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right of use of asset, or is recorded in profit or loss if the carrying amount
of the right-of-use asset had been reduced to zero.
Short term leases and leases of low value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short
term leases of real estate properties that have a lease term of 12 months. The Company
recognises the lease payments associated with these leases as an expense on a straight line
basis over the lease term.
ii. As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on
a straight line basis over the lease term unless the receipts expected are structured to increase
in line with the expected general inflation to compensate for the expected inflationary cost
increases. The respective leased asset are included in the balance sheet based on their nature.
(t) Earnings per share
Basic earnings per share is computed by dividing the net profit for the period attributable to
the equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period. The weighted average number of equity shares outstanding
during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the
period is adjusted for the effects of all dilutive potential equity shares.
(u) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. The company is engaged in the business of manufacture
and sale of wood based products, which form broadly part of one product group and hence
constitute a single business segment.
(v) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) after 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.
(w) Corporate Social Responsibility
The Corporate Social responsibility (CSR) expenditure is charged to the statement of profit and
Loss in the period in which it is incurred, except to the extent the company decides to carry
forward any amount in excess of the minimum required CSR expenditure for adjustment in
future years in terms of Sec 135(5) of the Companies Act 2013 read with Companies (Corporate
Social Responsibility Policy) Amended Rules, 2021.
(x) Recent accounting pronouncements -
Ministry of Corporate Affairs ("MCA") notifies new standards 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 these new standards or amendments has 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 only 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.
3.01 Refer to Note No 18.01 for information on Plant and equipment pledged as security by the
company.
3.02 Addition during the year includes borrowing cost ' Nil (as at 31st March, 2024 ' Nil) Capitalised
during the year as per IND AS.
3.03 As per the requirement of Ind AS 16 - Property, Plant and Equipments the residual value and the
useful life of an asset shall be reviewed at least at each financial year-end. During the current
financial year, the estimated useful lives of Property, plant and equipment have been reviewed
and revised wherever expectations differ from previous estimate, which is differ from the useful
life as indicated in Part C of Schedule II of Companies Act, 2013.
4.01. For details of classification of financial asset and fair value hierarchy Refer Note No 37
4.02. In view of the business plan of the subsidiary company M/s Mayabandar Doors Limited, which is
expected to bring in positive cash flows in the near future and the estimated realisable value of
the assets at the unit based on the independent valuer , the management is of the opinion that no
diminution in the value of investment in Subsidiary company is anticipated at this stage.
4.03. The company had entered into an agreement with M/s Era Intermerge SDN BHD in an earlier
year for setting up a Joint Venture entity (ERA &WIP Timber JV SDN BHD) in Malaysia as per
which the company would have 45% share in ownership and voting in the JV. Pending
completion of certain formalities in Malaysia, the joint Venture M/s ERA intermerge SDN BHD
has been unable to make their agreed share of investment, as a result of which the
shareholding of the company in the entity as at ,31st March 2025 is 65.87% (as at 31st March,
2024 is 65.87%). Accordingly the entity, ERA & WIP Timber JV SDN BHD has been treated as a
subsidiary in the books of account of the company and disclosure under IND-AS 28 are not
applicable at this stage.
16.01 Terms/ Rights Attached to Equity Shares
The Company has only one class of shares referred to as equity shares with a face value of ' 10/- each.
Each holder of an equity share is entitled to one vote per share. The company declares and pays
dividend in Indian Rupees. In the event of liquidation of the company, the holders of equity shares will
be entitled to receive the remaining assets of the company after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders.
17.01 Description of nature and purpose of each reserve
i) Capital Reserve - Capital reserve was created during the earlier years.
ii) Capital Redemption Reserve - This reserve was created at the time of Redemption of
Preference Shares. During the FY 2017-18 ' 190.00 lakhs was created and ' 1130.00 lakhs was
created during earlier years.
iii) Securities Premium Reserve - Securities premium reserve is used to record the premium on
issue of shares. The reserve is utilised in accordance with the provisions of the Act.
iv) Export profit Reserve - This reserve was created out of profit during the earlier years.
v) General Reserve - General reserve is created from time to time by way of transfer of profit
from retained earnings for appropriation purpose. General reserve is created by transfer from
one component of equity to another and is not an item of Other Comprehensive Income.
vi) Retained Earnings - Retained Earnings are the profits, that the company has earned till date,
less any tranfer to General Reserve, dividend or other distributions paid to shareholders.
vii) Equity Instrument through Other Comprehensive Income (OCI) - This represents the
cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other Comprehensive income, under an irrevocable option, net of amounts
reclassified to retained earnings when such assets are disposed off.
viii) Remeasurement of Net Defined Benefit Plan through Other Comprehensive Income
(OCI) : This represents re-measurement gains and losses on post employment defined benefit
plans recognised in other comprehensive income in accordance with Ind AS 19, "Employee
Benefits"
17.02 Dividend Distributed and Proposed
i) The Board of Directors at its meeting held on 26th May 2025 has proposed equity dividend of
' 1.20/- ( FY 2023-24 - ' 1.20/- ) per share of ' 10 /- each for the Financial Year ended 31st
March, 2025.
The dividend proposed by Directors are subject to approval of shareholders at the annual
general meeting. The proposed dividend of ' 101.85 Lakhs (FY 23-24 ' 101.85 Lakhs) have not
been recognised as liability.
37.04. Financial risk management objectives and policies :
The Company's business activities are exposed to a variety of financial risks, namely liquidity
risk, market risks foreign currency risk and credit risk. The Company's senior management has the
overall responsibility for establishing and governing the Company's risk management framework.
Company's exposure to each of the above risks, the Company's objectives, policies and processes
for measuring and managing risk are as follows -
a) Liquidity risk:
Liquidity risk represents the inability of the Company to meet its financial obligations within stipu¬
lated time. The Company manages liquidity risk by maintaining adequate reserves and banking facili¬
ties, by continuously monitoring forecast and actual cash flows, and by matching the maturity pro¬
files of financial assets and liabilities.
The table below summarises the maturity profile of the Company's financial liabilities based on
contractual undiscounted payments
b) Market risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that
may result from a change in the price of a financial instrument. The value of a financial instrument may
change as a result of changes in foreign currency exchange rates, interest rates and equity price
fluctuations, liquidity and other market changes. Future specific market movements cannot be
normally predicted with reasonable accuracy.
1) Foreign currency exchange rate risk
The Company undertakes transactions denominated in foreign currencies; consequently, exposures
to exchange rate fluctuations arise. The Company regularly evaluates exchange rate exposure
arising from foreign currency transactions. The Company follows the established risk management
policies and standard operating procedures.
3) Equity price risk :
The Company is exposed to equity price risk arising from Equity Investments (other than Subsidiaries,
which are carried at cost). The fair value of equity investments classified through other comprehensive
income as at March 31,2025 & March 31, 2024 was ' 95.66 lakhs and ' 76.65 lakhs respectively.
Sensitivity Analysis:
The Sensitivity analysis has been determined based on the exposure to equity price risk at the end
of the reporting period. A 10% change in equity prices of such securities held as at March 31,2025 &
March 31, 2024, would result in an impact of ' 9.57 lakhs and ' 7.67 lakhs respectively on equity
before considering tax impact.
c) Credit risk:
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in
financial loss to the Company. The company is exposed to credit risk from its operating activities
predominantly trade receivables,foreign exchange transactions, loans and other financial assets. For
these financial instruments, company generally doesn't have collateral.
a) Trade Receivables
Customer and vendor credit risk is managed by business through the Company's established policy,
procedure and control relating to credit risk management. Outstanding customer receivables are
regularly monitored. An impairment analysis is performed for all major customers at each reporting
date on an individual basis. The impairment calculations are based on historical data. Trade Receivables
generally having a credit period of 30 to 90 days.There is no material expected credit loss based on
the past experience. However, the Company assesses the impairment of trade receivables on case to
case basis and has accordingly created loss allowance.
b) Other financial assets
With regard to all the financial assets with contractual cashflows other than trade receivable,
management believes these are quality assets with negligible credit risk. However, the Company
assesses the impairment loss on loans, investments and other financial assets on case to case basis
and has accordingly created loss allowance.
39 Segment Information
The Company is engaged in the business of manufacture and sale of wood-based products, which
form broadly part of one product group which represents one operating segment, as the Chief Oper¬
ating Decision Maker ( CODM), reviews business performance at an overall company level and hence
disclosure requirements under Ind AS 108 on Operating Segment is not applicable.
46 The Company has not traded or invested in crypto currency or virtual currency during the
financial year ended 31st March 2025
47 No proceedings has been initiated or pending against the Company or holding any benami property
under Benami Transactions (Prohibition) Act 1988 (45 of 1988) and the rules made thereunder.
48 The Company has not been declared as a wilful defaulter by any bank or financial institution or
other lender during the period.
49 Events after the Balance sheet date
The Board of Directors have recommended a final dividend of ' 1.20/- per share to be paid on
equity shares of ' 10/- each. This equity dividend is subject to approval by shareholders at the
Annual General Meeting and has not been included as a liability in these financial statements. The
proposed equity dividend is payable to all shareholders on the Register of Members. Dividends
will be taxed in the hands of receipient, hence there will be no liability in the hands of Company.
50 Disclosure pursuant to Securities ( Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Section 186 of the Companies Act, 2013
The details of loans, guarantees and investments under Section 186 of the Companies Act read
with the Companies (Meeting of Board and itspowers)rules 2014 are as follows;-
i) Details of investments are given in Note No 4
ii) Details of loans are given in Note No 5(a)
iii) Details of guarantees given are in Note No 40.01
51 The Company does not have any surrendered or undisclosed income during the year in the tax
assessemnet under Income Tax Act 1961.
52 The company has an internal control system in place, including in relation to internal financial
controls with reference to these Standalone Financial Statements, which is commensurate
with the nature and size of its operations. These internal controls are reviewed/tested by the
management/internal auditors on an ongoing basis and there are no material weaknesses/
deficiencies. Further strengthening of the internal control systems/improvments are being
assessed/carried out by the management on a continuing basis.
53 The Company has complied with the number of layers prescribed under section 2(87) of The
Companies Act 2013 read with Companies (Restriction on number of layers) Rules 2017.
54 Loans or advances to specified persons
No loans or advances in the nature of loans are granted to promoters, directors, Key Management
Persons and related parties (as defined under the Companies Act) either severally or jointly
with any other persons that are repayable on demand or without specifying any terms or period
of repayment
55 Relationship with Struck off Companies
As per the information available with the Company, the Company has no transaction with
Company Struck of under section 248 of the The Companies Act 2013 or section 560 of The
Companies Act 1956.
56 There has no charges or satisfication yet to be registered with ROC beyond the statutory period.
57 The Company has not advanced or loaned or invested funds (either borrowed fund or share
premium or any other sources or kind of funds) to any other person(s) or entity (ies), including
foreign entities(intermediaries) with the understanding that the intermediary shall 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 Provide any guarantee, security or the like
or to on behalf of the ultimate beneficiaries.
58 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 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 provide
any gurantee, security or the like to or on behalf of the Ultimate Beneficiaries.
59 Audit Trail
The Company has used accounting software's for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year
for all relevant transactions recorded in the software, except in respect of maintenance of
payroll records wherein the accounting software did not have the audit trail feature, enabled
throughout the year. Further no instance of audit trail feature being tampered with was noted in
respect of accounting software. Additionally, the audit trail of prior year has been preserved as
per the statutory requirements for record retention to the extent it was enabled and recorded
in the respective years.
60 The borrowings obtained by the Company from banks and financial institutions have been
applied for the purpose for which such loans were taken.
61 Leases:
The lease expenses for cancellable operating leases during the year ended 31st March 2025 is
' 30.32 lakhs (31st March 2024: ' 25.57 lakhs) The Company's significant leasing arrangements
in respect of operating lease, which includes cancellable leases generally ranging upto 11
months and are usually renewable by mutual consent on mutually agreeable terms. The
aggregate lease rentals payable are charged as rent under Note No 32 to the financial statements.
62 The Financial Statements for the year ended 31st March 2025 were approved by the Board of
Directors on 26 May 2025.
63 Figures have been rounded off to the nearest Lakhs, except when otherwise indicated. Previous
year figures have been regrouped/reclassified wherever necessary to correspond with current
year classification/disclosure.
The accompanying notes form an intergral part of these Standalone Financial Statements (1 to 63)
For and on behalf of the Board of Directors As per our separate report of even date attached
Sd/- Sd/- Sd/- For Sankar & Moorthy
P.K MAYAN MOHAMED P.H KURIAN R.BALAKRISHNAN Chartered Accountants
Managing Director Chairman CFO&Company Secretary Firm Reg. No. 003575S
(DIN: 00026897) (DIN: 00027596) (M.No: 7119 ) Sd/-
Place: Kannur CA JAYAPRAKESH, mc, fca
Date: 26 May 2025 (Partner) Mem. No. 215562
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