2.10 Provisions
A provision is recognized when an enterprise has
a present obligation as a result of past event; it
is probable that an outflow or resources will be
required to settle the obligation, in respect of which
a reliable estimate can be made. The amount
recognized as a provision is the best estimate of
the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When a provison is measured using
the cash flow estimated to settle the present
obligation, its carrying amount is the present value
of those cash flows (when the effect of the time
value of the money is material).
2.11 Contingent Liabilities
Contingent liabiliity exists when there is possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.
2.12 Cash and Cash Equivalents/Cash Flow
Statement
Cash and cash equivalents for the purposes of
Financial Statement comprise of cash at bank and
cash in hand including fixed deposits having original
maturity having less than 3 months.Fixed deposits
other short term investment with an original
maturity of 3~12 months has been shown as other
Bank balances under current financial assets in the
financial statements. Fixed deposit with an original
maturity of more than 12 months has been shown as
non current financial assets.
For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company's cash management. The cash
flows are reported using the indirect method, where
by profit/loss before extraordinary items and tax is
adjusted for the effects of transaction of non cash
nature and any deferals or accruals of past or future
cash receipts or payments.
2.13 Financial Instrument
Financial assets and financial liabilities are
recognised when the company becomes a party to
the contractual provisions of the instruments.
Financial assets except for trade receivables that do
not have a significant financing component which
are measured at transaction price and financial
liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through the Statement of profit
and loss) are added to or deducted from the fair
value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial
assets or financial liabilities at fair value through
the Statement of profit and loss are recognised
immediately in the Statement of profit and loss.
2.14 Financial Assets
All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.
Classification of financial assets
Debt instruments that meet the following conditions
are subsequently measured at amortised cost
(except for debt instruments that are designated as
at fair value through the Statement of profit and loss
on initial recognition):¬
- the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and
- the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
Debt instruments that meet the following conditions
are subsequently measured at fair value through
other comprehensive income ("FVTOCI") (except
for debt instruments that are designated as at fair
value through the Statement of profit and loss on
initial recognition):
- the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and selling
financial assets; and
- the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.
Interest income is recognised in the Statement
of profit and loss for FVTOCI debt instruments.
All other financial assets are subsequently
measured at fair value.
Effective interest method
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.
Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in the Statement of profit and loss and is
included in the "Other income" line item.
Financial assets at fair value through the Statement
of profit and loss (FVTPL)
Investments in equity instruments are classified as at
FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair
value in other comprehensive income for investments
in equity instruments which are not held for trading.
Debt instruments that do not meet the amortised
cost criteria or FVTOCI criteria are measured at
FVTPL. In addition, debt instruments that meet the
amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.
A financial asset that meets the amortised cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated as at FVTPL upon
initial recognition if such designation eliminates or
significantly reduces a measurement or recognition
inconsistency that would arise from measuring
assets or liabilities or recognising the gains and
losses on them on different bases. The Company
has not designated any debt instrument as at FVTPL.
Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
or losses arising on re-measurement recognised
in the Statement of profit and loss. The net gain or
loss recognised in the Statement of profit and loss
incorporates any dividend or interest earned on the
financial asset and is included in the 'Other income'
line item. Dividend on financial assets at FVTPL is
recognised when the company's right to receive
the dividends is established, it is probable that the
economic benefits associated with the dividend will
flow to the entity, the dividend does not represent a
recovery of part of cost of the investment and the
amount of dividend can be measured reliably.
I nvestments in subsidiaries, Associates and Joint
Ventures
Investment in subsidiaries, associates and joint
ventures are carried at cost in the standalone
financial statements.
Impairment of financial assets
The Company recognises impairment loss on
financial assets measured at cost, amortised cost,
debt instruments at FVTOCI, trade receivables,
other contractual rights to receive cash or other
financial asset, and financial guarantees not
designated as at FVTPL.
Offsetting
Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and it
intents either to settle them on net basis or to realise
the assets and settle the liabilities simultaneously.
Derecognition of financial assets
The Company derecognises a financial asset
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.
2.15 Financial Libilities and Equity Instruments
Classification as debt or equity
Debt and equity instruments issued by Company
are classified as either financial liabilities or as'
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities.
Financial liabilities
Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included under 'Finance costs'.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability.
All financial liabilities are subsequently measured
at amortised cost using the effective interest
method or at FVTPL.
Derecognition of financial liabilities
The Company derecognises financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired.
2.16 Foreign Currencies
The Company's financial statements are presented in
INR, which is also the Company's functional currency.
In preparing the standalone financial statements
of the Company, transactions in currencies other
than the Company's functional currency (foreign
currencies) are recognized at the rates of exchange
prevailing at the dates of the transactions. At the
end of each reporting period, monetary items
denominated in foreign currencies are translated at
the rates pevailing at that date. Non monetary items
that are measured in terms of historical cost in a
foreign currency are not translated.
Exchange differences on monetary items are
recognized in the Statemnet of profit and loss in the
period in which they arise.
2.17 Business Combination
The company accounts for its business combinations
in the nature of Merger, wherein all the assets and
liabilities of the transferor company will become,
after amalgamation, the assets and liabilities of the
transferee company.
The consideration for the amalgamation receivable
by those equity shareholders of the transferor
company who agree to become equity shareholders
of the transferee company is discharged by the
transferee company wholly by the issue of equity
shares in the transferee company.
The business of the transferor company is intended
to be carried on, after the amalgamation, by the
transferee company.
No adjustment is to be made to the book values of
the assets and liabilities of the transferor company
when they are incorporated in the financial
statements of the transferee company except to
ensure uniformity of accounting policies.
2.18 Segment Reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker. The board of
directors of the Company has been identified as
being the chief operating decision maker by the
Management of the company. The Business activity
of the company majorly falls within one business
segment viz "Laminates".
Description of nature and purpose of each reserve
a) Retained Earnings :-
Retained earnings represents amount that can be distributed by the Company to its equity shareholders is
determined based on the financial statements of the Company and also considering the requirements of the
Companies Act 2013.
b) Other Comprehensive Income :-
Other comprehensive income represents the cumulative actuarial gains & lossses on employee benefits net of taxes.
The above Annexure should be read with the basis of preparation and Significant Accounting Policies appearing in
Note No. 1 and 2 ,Notes to the Standalone Financial Statements and Statement on Adjustments to the Standalone
Financial Statements.
c) Securities Premium Reserve:-
Securities Premium represents amount received on issue of shares in excess of the par value. Utilization of reserve
wil be as per the provision of the relevant statute. During the year, securities premium was not utilized.
d) Capital Reserve:-
Capital Reserve represents the amount on account of forfeiture of equity shares of the Company. Utilization of
reserve will be as per the provision of the relevant statue. During the year, capital reserve was not utilized.
Additional information:
First Pari passu charge for facility by way of Hypothecation on all plant and machinery both present and future consisting
of all moveable assets being moveable properties, now stored at or being stored. Second Pari Passu charge for facility
by way of hypothecation on the stock in trade both present and future consisting of raw materials, finished goods,
goods in process of manufacturing and any other goods, moveable assets or merchandise. First Pari Passu charge on
the whole of the security providers moveable properties inluding its moveable plant and machinery, machinery spares
and tools and accessories and other moveables, both present and future.Second pari passu charge for facility by way
of hypothecation on all the book debts, amount outstanding, monies receivable, claims and bills which are now due
and owing or which may at any time hereafter during the continuance of this security becomes due.
Note - 40
A. Capital Management
The Company manages its capital to ensure that the company will be able to continue as a going concern
while maximising the return to stakeholders through efficient allocation of capital towards expansion of business,
opitimisation of working capital requirements and deployment of surplus funds into various investment options.
The company is not subject to any externally imposed capital requirements. The management of the Company
reviews the capital structure of the Company on regular basis. As part of this review, the Board considers the cost
of capital and the risks associated with the movement in the working capital.
B. Fair value measurements
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments
by valuation techniques:
The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using 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: This level includes financial assets and liabilities measured using inputs that are not based on observable
market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based
on assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data.
The fair value of the financial assets and financial liabilities are included at the amount that would be received to
sell an asset and paid to transfer a liability in an orderly transaction between the market participants.
The following methods and assumptions were used to estimate the fair values:
- Investments traded in active markets are determined by reference to quotes from the financial institutions;
for example: Net asset value (NAV) for investments in mutual funds declared by mutual fund house, quoted
price of equi shares in the stock exchange etc.
- Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, Trade
payables and other current financial liabilities: Approximate their carrying amounts largely due to short¬
term maturities of these instruments.
- The company's non current lease liabilities and on current financial assets are measured at amortised cost,
which approximates the fair value as on the reporting date.
- Management uses its best judgement in estimating the fair value of its financial instruments. However, there
are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the
fair value estimates presented above are not necessarily indicative of all the amounts that the company
could have realised or paid in sale transactions as of respective dates, as such, the fair value of the financial
instruments subsequent to the respective reporting dates may be different from the accounts reported at
the each year end.
- There are no transfers between Level I, Level II and Level III during the year ended march 31, 2025
and march 31, 2024
C. Financial risk management objectives and Policies
The Company's corporate treasury function monitors and manages the financial risks relating to the operations of the
Company. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.
The Company seeks to minimise the effects of these risks by using derivative financial instruments, diversification
of investment, credit limit to exposures, etc., to hedge risk exposures. The use of financial instruments is governed
by the Company's policies on foreign exchnage risk and the investment. The Company does not enter into or
trade financial instruments, including derivative financial instruments, for speculative purposes.
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 Company's activities are not expose it primarily to the
financial risks of changes in foreign currency exchange rates and interest rates risk/liquidity which impact returns
on investments. The Company enters into derivative financial instruments to manage its exposure to foreign
currency risk including export receivables and import payables. Future specific market movements cannot be
normally predicted with reasonable accuracy.
Foreign currency risk management
The Company undertakes transactions denomonated in foreign currencies; consequently, exposures to exchnage
rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising
forward foreign exchange contracts.
Foreing currency Senstivity
The following table details the Company's sensitivity to a 5% increase and decrease in the INR against the relevant
foreign currencies. ( )(-)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 or equity where the INR strengthens ( )(-)5% against the relevant currency. For a
5% weakening of the ' against the relevant currency, there would be a comparable impact on the profit or equity,
and the balances below would be positive or negative
In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
the exposure at the end of the reporting period does not reflect the exposure during the year/ in future years.
D. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a
means of mitigating the risk of financial loss from defaults. The Company's exposure and wherever appropriate, the
credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit
exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company.
Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks,
investments in debt instruments/bonds,mutual funds, trade receivables, loans and advances and derivative financial
instruments. None of the financial instruments of the Company result in material concentrations of credit risks.
The Company write off the receivables in case of certainty of irrecoverability.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past
dues and not impaired, there were no indication of default in repayment as at the year end.
The age analysis of trade receivables as of the balance sheet date have been considered from the due date.
Note - 46 Segment Information
Basis for Segmentation
The Company's Directors examine the Company's performance. They have determined "Manufacturing and Sale
of Laminates and allied Products" to be a single reportable business segment. No operating segments have been
aggregated to formm the above reportable operating segment.
Information about geographical areas
As the Company operates in India only, hence there is no separate geographical segment.
Information about major customers
No Revenue is derived from one any customer which amounts to 10% or more of the Company's revenue.
Note - 49 Provision for Impairment
Pursuant to NCLT order dated xx/xx/xxxx
Note-50 Regrouping
In the comparative figures for the financial year ended March 31, 2025, the Company undertook certain regrouping
adjustments to its financial statements to better align with presentation requirements. These adjustments have
resulted in reclassification of certain balances within the Statement of Financial position without impacting the overall
net assets or financial performance. The key effect of the reclassification are in Trade Receivables, Trade Payables, Bank
Balance, Other financial assets, Other financial liabilities, Other Current liabilities. Comparative figues for the previous
period have been reclassified to conform to the current period's presentation, where applicable. The regrouping is also
affecting the previous year ratios.
Note 51 Other Information:-
(a) The company has not traded in Crypto Currency or Virtual Currency during the year.
(b) There are no Proceedings initiated or pending against the company for holding any benami property under the
Benami Transactions ( Prohibition) Act, 1988 and the rules made thereunder.
(c) There are no charges or Satisfaction of charges which are yet to be registered with Registrar of Companies
beyond the statutory period.
(d) The company is not declared a willful defaulter by any bank or Financial Institution or any other lender.
(e) There are no transactions with any company struck off under section 248 of the Company's Act, 2013 or Section
560 of the Companies Act, 1956.
(f) No Revaluation of Property,Plant and equipment has taken place during the year.
(g) There are no Loans or advances in the nature of loans grated to Promoters, directors, KMP's and other related
parties either severally or jointly with any other person that are repayable on demand or without specifying any
terms or period of repayment.
(h) The quaterly returns or statements of current assets filed with the Banks are in agreement with the books of
accounts. The company has not taken any loans from Financial Institutions which requires filing of any
such statements.
(i) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:-
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate
Beneficiaries) by or on behalf of the Company ; or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.
(j) There are no funds which have been received by the Company from any person of entities, 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 (Ultimate
Beneficiaries) by or on behalf of the Funding Party ; or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.
(k) The company has used the borrowings from banks and financial institutions for the specific purpose for which it
was taken at the balance sheet date.
(m) The company has reclassified the previous year figures wherever necessary to conform to current year's
classification.
As per our report of even date
For Mittal Goel & Associates For and on behalf of Board of Directors of
Chartered Accountants Stylam Industries Limited
FRN: 017577N
Sd/- Sd/- Sd/-
Sandeep Kumar Goel Jagdish Gupta Manit Gupta
Partner Managing Director Director
Membership No. : 099212 DIN- 00115113 DIN- 00889528
Place: Chandigarh Sd/- Sd/-
Date: 26.05.2025 Kishan Nagpal Dhiraj Kheriwal
UDIN: 25099212BMIYYL8794 CFO Company Secretary
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