3.8 Provisions and Contingent Liabilities/Assets:
Provisions are recognised when the Company has a present probable obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.the amount of which can be reliably
estimated which are reviewed at each Balance Sheet date. The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement.
Contingent liabilities are not recognised but are disclosed in notes.
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 event 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
connot be made.
3.9 Purchases:
Purchase of goods is recognised on receipt into factory premises and purchases include non refundable Taxes and
other incidental charges charged by suppliers and it is net of the purchase returns, discounts and quality rebates.
3.10 Foreign currency transactions and translations:
The functional currency of the Company is Indian Rupees (or INR) which is also the presentation currency for the
financial statements.
a) Initial Recognition:
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the year are recognized in the
Statement of Profit and Loss of the year.
b) Measurement of Foreign Currency Items at the Balance Sheet Date:
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non monetary items
are recorded at the exchange rate prevailing on the date of the transaction. Non-monetary items that are measured
at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was
determined. The gain or loss arising on translation of non- monetary items measured at fair value is treated in line
with the recognition of the gain or loss on the change in the fair value of the item. Exchange differences arising out
of these transactions are charged to the Statement of Profit and Loss.
3.11 Borrowing Costs:
Borrowing costs directly attributable to 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 capitalised 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 that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
3.12 Segment information:
Information about primary segment:
The Company has one reportable business segment i.e. Paper and Board and two geographical reportable segments
i.e. Operations within India and exports. The performance is reviewed by the Board of Directors.
3.13 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
share 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.
26 Further Notes to Financial Statements:
1 In the opinion of the Board and to the best of their knowledge and belief, the Current Assets, Loans and Advances payable or receivable are
approximately of the value stated, if realised in the ordinary course of the business and the provisions for all known and determined liabilities is
adequate and not in excess of the amount reasonably required.
2 Unsecured Loans, Loans and Advances, Sundry Debtors and Sundry Creditors are subject to confirmation and reconciliation.
3 This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
4 Disclosure pursuant to Accounting Standard - 15 'Employee Benefits':
a. General Description:
i. Contribution to Provident Fund (Defined Contribution):
The Company's provident fund scheme is a defined contribution plan. The expenses charged to the Statement of Profit and Loss under the head
Contribution to Provident Fund is Rs. 33,92,640 (PY Rs. 31,62,602).
ii. Gratuity (Defined benefit plan):
The Company has a defined benefit gratuity plan. The Company during the year provided Rs. 15,23,708 (P.Y. : Rs. 14,00,736) towards gratuity. The
Employees Gratuity Fund scheme is managed by The Life Insurance Corporation of India and contribution made during the year is Rs. 49,092 (P.Y
: Rs. 11,02,022). Gratuity Obligation has been accounted as per Actuarial Valuation in Line with AS-15 Employee Benefits.
b. The following tables set out disclosures prescribed by AS 15 in respect of company's funded gratuity plan:
i. Changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof:
9 Segment Reporting:
The operations of the Company are limited to one segment viz.Paper and Paper Boards. The products being sold under this segment are of similar
nature and comprises of paper products only.
Geographical revenues is allocated based on the location of the customer. Information regarding geographical revenue is as follows:
The remuneration paid to key managerial personal excludes gratuity and compensated absences, as the provision is computed for the Company as
a whole and separated figures are not available.
The company has not granted any Loans or Advances in the nature of loans to Promoter, Directors, KMPs and the related parties (as defined
under Companies Act, 2013), either severally or jointly with any other person.
(d) Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the
year-end are unsecured and interest bearing and settlement occurs in cash. There have been no financials guarantees provided to a Related Party.
For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating to amount owed by related parties. This
assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party
operates.
The Company is liable to spend Rs.20.37 Lakhs on Corporate Social Responsibility during the financial year 2025-26, being 2% of the average net
profit for the immediately preceding three financial years.
Reporting of
12 Events
On account of flood at Chiplun on 22nd July, 2021, the Company had incurred loss of Rs.2205.12 lakhs during the financial year 2021-22 against
which the Company has filed the claim with the Insurance Company. During the financial year 2022-23, the Company has received Rs.1378.61
lakhs and for the balance amount including financial charges of Rs.1352.27 lakhs, the Company has initiated Arbitration proceedings and the
management is confident that the outcome would be decided in the Company's favour and hence, the necessary provision for the said amount has
been made under "Other Current Assets" in the books of accounts.
13 Corresponding figures of the previous period have been regrouped/rearrenged wherever necessary.
The Note Nos. 1 to 26 are an integral part of the Financial Statements.
In terms of our attached report of even date
FOR PIYUSH KOTHARI & ASSOCIATES For and on behalf of the Board of Directors of
Chartered Accountants FOR THREE M PAPER BOARDS LIMITED
Firm Registration No. 140711W CIN: L22219MH1989PLC052740
Sd/- Sd/-
HITENDRA SHAH RUSHABH SHAH
Whole-Time Director Managing Director
DIN-00448925 DIN-01874177
Sd/-
CA. PIYUSH KOTHARI
Partner
Membership No. 158407 Sd/- Sd/-
Place : Mumbai KRUNAL WAGHELA MITTAL MEHTA
Date : May 26, 2025 Chief Financial Officer Company Secretary
UDIN : 25158407BMJGCW8772 PAN - ABCPW7215L Membership No. 36950
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