(o) Provisions and Contingent Liabilities:
The Company recognizes a provision when there is a present obligation (legal or constructive)
as a result of a past event and 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.
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 the obligation or a reliable estimate of the amount cannot be
made.
Contingent assets are neither recognized nor disclosed in the financial statements.
(p) Dividend:
Dividend to the equity shareholders is recognized as a liability in the Company's financial
statements in the period in which the dividend is approved by the shareholders.
(q) Events after reporting date:
Where events occurring after the balance sheet date provide evidence of conditions that existed
at the end of the reporting period, the impact of such events is adjusted with the standalone
financial statements. Otherwise, events after the balance sheet date of material sizeor nature
are only disclosed.
(r) Segment Reporting:
Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker and as per the Accounting Standard (AS-17).
(s) Use of Estimates and Judgements
The preparation of the financial statements in conformity with AS requires the use of estimates,
judgements and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. Future
results could differ due to these estimates and the differences between the actual results and
the estimates are recognised in the periods in which the results are known/ materialize.
Estimates and underlying assumptions are reviewed at each reporting date. Any revision to
accounting estimates and assumptions are recognised prospectively i.e., recognised in the
period in which the estimate is revised and future periods affected.
Information about critical judgments in applying accounting policies, as well as estimates and
assumptions that have the most significant effect to the carrying amounts of assets and
liabilities within the next financial year, are as follows:
i. Evaluation of Net Realisable Value (NRV) of Inventories
Inventories comprising of completed flats and construction-work-in progress are valued at
lower of cost and net realisable value. Net Realisable value is based upon the estimates of the
management. The effect of changes, if any, to the estimates is recognised in the standalone
financial statements for the period in which such changes are determined.
ii. Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of actuarial
assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and
attrition rate. The discount rate is determined by reference to market yields at the end of the
reporting period on government securities. The period to maturity of the underlying securities
correspond to the probable maturity of the post-employment benefit obligations. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.
iii. Impairment losses on investment
The Company reviews it carrying value of investments carried at amortised cost annually or
more frequently when there is indication for impairment. If the recoverable amount is less than
it carrying amount, the impairment loss is accounted for.
iv. Deferred taxes
Deferred tax is recorded on temporary differences between tax bases of assets and liabilities
and their carrying amounts, at the rates that have been enacted or substantively enacted at the
reporting date. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable profit during the periods in which those temporary differences
and the tax loss carry forwards become deductible. The Company considers the expected
reversal of deferred tax liabilities and projected future taxable income in making this
assessment. The amount of deferred tax assets considered realizable, however, could be
reduced in the near term if estimates of future taxable income during the carry forward periods
are reduced.
v. Provisions and contingencies
The recognition and measurement of other provisions are based on the assessment of the
probability of an outflow of resources, and on past experience and circumstances known at the
balance sheet date. The actual outflow of resources at a future date may therefore vary from
the amount included in other provisions.
(t) The above standalone financial results which are published in accordance with
Regulation33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
have been reviewed by the Audit Committee and approved by the Board of Directors at their
meeting held on May 30th 2024.
(u) The audited standalone financial results are prepared in accordance with the
Companies (Accounts) Rules, 2014 and applicable accounting standards as prescribed under
section 133 of the Companies Act, 2013. As per MCA Notification dated 16th February, 2015
Companies whose Shares are listed on SME Exchange as referred to in Chapter XB of SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009, are exempted from the
compulsory requirement of adoption of IND-AS.
(v) The figures for the half year ended 31 March 2024 and corresponding half year ended
31stMarch 2023 are the balancing figures between audited figures in respect of full financial
year and published year to date figures up to the end of six months' period of the relevant
financial year.
(w) The Company is primarily engaged in trading of stationery items and raw material of
paper i.e., pulp. In the opinion of the management, this is the only segment as per Accounting
Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.
(x) It is hereby declared that the Auditors have issued audit reports with qualification on
the annual audited financial result for the year ended March 31, 2024. Impact is not
ascertainable as of now.
(y) Information regarding the status and amounts payable to the suppliers under the
"Micro, Small and Medium Enterprises Development Act, 2006", out of the total amounts
payableto the Trade Payables is under compilation, hence the status of the same is yet to be
updated.
(z) Previous period figures have been regrouped, re-arranged and re-classified wherever
necessary to conform to current period's classification.
(b) Terms / rights attached to equity shares
The Company has a single class of equity shares having a par value of Rs. 10 per share. Each
holder of equity share is entitled to one vote per share. The Company declares and pays
dividend in Indian rupees. The Board of Directors has not declared any dividend for the year
ending 31st March, 2024.
In the event of liquidation of the Company, the holders of equity shares will be entitled to
receive the remaining assets of the Company in proportion to the number of equity shares
held by each shareholder, after settlement of all preferential obligations.
The Company has complied with the provisions of AS-20 on Earning per share as notified by
the Companies (Accounting Standards) Rules, 2006.
Basic Earnings Per Share (EPS) amounts are calculated by dividing the profit for the year
attributableto equity holders by the weighted average number of equity shares outstanding
during the year.
Related parties have been identified on the basis of representation and information given by
the KeyManagement Personnel. We have relied on the same for the purpose of reporting of
Related Party disclosure in ordinary course of business as required in terms of Accounting
Standard-18 issued by the Institute of Chartered Accountants of India:
Footnote:
(a) The transactions with the related parties are made on terms equivalent to those that
prevailin arm's length transactions.
(b) No amount has been provided as doubtful debt or advance written off or written back
in theyear in respect of debts due from/to above related parties.
(c) The Company confirms that none of the transactions, if any, with the related parties
were inmaterial conflict with the interest of the Company.
Note 27: Financial Risk Management Objectives and Policies
The Company's activities expose it to a variety of financial risks: market risk, credit risk and
liquidityrisk. The Company's focus is to foresee the unpredictability of financial markets and seek
to minimize potential adverse effects on its financial performance. The Company's senior
management oversees the management of these risks. The Company's senior management
provides assurance that the Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company's policies andrisk objectives.
1. Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument
which
fluctuate because of changes in market prices. Market risk comprises three types of risk:
interestrate risk, currency risk and other price risk, such as equity price risk. Major financial
instrumentsaffected by market risk include loans and borrowings.
(a) Interest Rate Risk
Majority of the long-term borrowings of the Company bear fixed interest rate and thus interest
rate risk is limited for the Company.
(b) Foreign Currency Risk
The Company is engaged in import / export of stationery items and paper pulp and generally
thetransactions made by the company are on advance basis for which hedging instruments
are not required.
(c) Equity Price Risk
The Company's equity securities are not majorly susceptible to market price risk. However,
the Company's Board of Directors reviews and approves all equity investment decisions after
exercising due diligence which may affect the market related risk.
2. Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a
financial loss. The maximum exposure of the financial assets is contributed by trade
receivables, cash andcash equivalents and other receivables. Customer credit risk is managed
by requiring customersto pay advances before transfer of ownership, thereby substantially
eliminating the Company's credit risk in this respect.
3. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset.The Company's approach to managing liquidity is to ensure, as far as possible, that it
will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the
Company's reputation.
Management monitors rolling forecasts of the Company's liquidity position on the basis of
expected cash flows. This monitoring includes financial ratios and takes into account the
accessibility of cash and cash equivalents.
Contribution to Gratuity Fund (Non-Funded)
Gratuity is payable to all eligible employees on death or on separation/ termination in terms
of the provisions of the Payment of Gratuity Act or as per the Company's policy whichever is
beneficial tothe employees.
The estimates of future salary increase, considered in actuarial valuation, take into account
inflation,seniority, promotion and other relevant factors, such as supply and demand in the
employment market.
(c) The Company obtained actuarial reports as required by the Accounting
Standard 15,Employee Benefits
Note 29: Leases
The company has entered into cancellable operating leasing arrangements for commercial
premises and office premises. These lease agreements are normally renewed on the expiry.
Assets acquired on the leases where a significant portion of the risk and rewards are retained
by thelessor are classified as operating leases. Lease rentals are charged to the profit and loss
account on accrual basis. The Lease rentals from assets leased out under the operating leases
is recognized on accrual basis over the lease term.
The Company is primarily engaged in the business of trading in stationery items and raw
material ofpaper i.e., pulp. In the opinion of the Management, this is the only segment as per
Accounting Standard (AS) - 17 on Segment Reporting issued by the Institute of Chartered
Accountants of India.
Previous period figures have been regrouped and reclassified wherever necessary, to confirm
withcurrent years' presentation.
Note 34: Micro, Small and Medium Enterprises Development Act, 2006
The Company is in the process of compiling information from its suppliers regarding the
status andamount payable to the suppliers under the "Micro, Small and Medium Enterprises
Development Act,2006", out of the total amounts payable to the Trade Payables is under
compilation, hence the statusof the same is yet to be updated.
Note 35: Expiry of License Agreement with Oxford Limited
The Company has entered into an exclusive license agreement with Oxford Limited on 10th
June, 2016 to obtain the right to use the Licensed Mark on and in connection with the
manufacture, promotion and sale of products under the "Oxford Brand" for a period of 5 years
till 31st December, 2021.
Due to disruption caused by the Covid 19 pandemic and closure of Oxford business since
March 2020, Oxford Limited has decided to cease its global business operations and activities.
Accordingly, due to expiry of the Oxford Agreement and non-payment of final royalty
amounting to $20,500, all the remaining stock of licensed products has to be disposed of the
by Company.
Considering these developments, in particular, the present non-oxford stationery and paper
business,the financial results continue to be prepared on going concern basis. However, since
the Company continues to incur loss, current liabilities exceed current assets and Company
has defaulted in repayment of borrowings, payment of regulatory and statutory dues, these
events indicate that material uncertainty exists that may cast significant doubt on Company's
ability to continue as a going concern. This matter has been referred to by the Auditors in their
Audit Report.
Note 36: Covid-19 Impact
The Company is actively monitoring the impact of the global health pandemic on its financial
condition, liquidity, operations, suppliers, industry, and workforce. The company has used
the principles of prudence in applying judgments, estimates and assumptions based on the
current estimates. In assessing the recoverability of assets such as inventories, financial assets
and other assets, based on current indicators of future economic conditions, the company
expects to recover thecarrying amounts of its assets.
The extent to which COVID-19 impacts the operations will depend on future developments
which remain uncertain. However, due to closure of schools, colleges and educational
institutions for considerable period due to Covid-19 pandemic, there is direct severe business
impact on the businessoperations of the company.
Management believes that it has taken into account all the possible impact of known events
arising from COVID-19 pandemic in the preparation of the standalone financial results.
However, the impactassessment of COVID-19 is a continuing process given the uncertainties
associated with its nature and duration. The company will continue to monitor any material
changes to future economic conditions.
Note 37: Other Statutory Information
(a) The Company does not have any Benami property, where any proceeding has been
initiated orpending against the Company for holding any Benami property.
(b) The Company does not have any charges or satisfaction which is yet to be registered
with ROCbeyond the statutory period.
(c) The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.
(d) 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:
i. directly or indirectly lends or invest in other persons or entities identified in any
mannerwhatsoever by or on behalf of the company (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(e) To the best of our knowledge and representation received from the management, 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
i. directly or indirectly lends or invest in other persons or entities identified in any
mannerwhatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(f) The Company has not 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).
(g) To the best of our knowledge and representation received from the management, the
Company has not granted any loans or advances in nature of loans to promoters, directors and
KMPs eitherseverally or jointly during the year ended March 31, 2024.
(h) The Company has not been declared willful defaulter by any bank, financial institution,
government or government authority.
(i) The Company has not revalued its property, plant and equipment (including right-to-
use assets)or intangible assets during the year ended March 31, 2024
(j) As per information received from the management, there were no transactions
entered with thecompanies which are struck off.
As per our report of even date.Chartered Accountants
As per our report of even date.
For Amit Ray & Company F or and on behalf of the Board of directors
Chartered Accountants
Firm Regn. No. 000483C
Nag Bhushan Rao Hardik Bhupendra Vasa Kajal Hardik Vasa
Partner Managing Director Whole Time Director
Membership No.: 073144 DIN: 03600510 DIN: 03600495
UDIN: 24073144BKBJNZ9320
Date: 30.05.2024 Sujay Sudhakar Waikul
Place: Mumbai Chief Financial Officer
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