o) . Provision for Liabilities and charges, Contingent Liabilities and Contingent Assets
The assessments undertaken in recognising provisions and contingencies have been made in accordance with the
applicable Ind AS.
Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that
an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of
the time value of money is material, provisions are determined by discounting the expected future cash flows to net
present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value
of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the
statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to
reflect the current best estimate.
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management
has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to
quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not
reflected as liabilities in the financial statements. Although, there can be no assurance regarding the final outcome
of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a
material effect on its financial position or profitability.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits
is probable.
p) . Earnings per share
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average
number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss
attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of
all dilutive potential equity shares.
q) . Corporate social reposnsibility expenditure
Pursuant to the requirement of section 135 of the Act and rules thereon and guidance note on “Accounting for
expenditure on Corporate Social Responsibility activities” issued by the ICAI, with effect from 01st April, 2015, CSR
expenditure is recognized as an expense in the statement of Profit & Loss in the period in which it is incurred, if any.
During the Year, company has not incurred any CSR expenditure.
r) . Cash Flow Statement
Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit /
(loss) before 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.
s). Leases
The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative
information has not been restated and continues to be reported under Ind AS 17.
As a Lessee
The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs
to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to
the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful
lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the
right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of
the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined,
company's incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount
rate.
Lease payments included in the measurement of the lease liability comprise the following:
- Fixed payments, including in-substance fixed payments;
- Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
- Amounts expected to be payable under a residual value guarantee; and
- The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments
in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties
for early termination of a lease unless the company is reasonably certain not to terminate early.
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 the 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 asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced
to zero.
The company presents right-of-use assets that do not meet the definition of investment property in ‘property, plant
and equipment' and lease liabilities in ‘loans and borrowings' in the statement of financial position.
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.
Under Ind AS 17
In the comparative period, a lease is classified at the inception date as a finance lease or an operating lease. A lease
that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a
finance lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards incidental to the ownership of an asset to the Company. All other leases are classified as operating leases.
Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased
property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between
finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss, unless
they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company's
general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they
are incurred.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight line basis
over the lease term.
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 are structured to increase in line with expected general inflation to compensate
for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based
on their nature.
Arrangements in the Nature of Lease
The Company enters into agreements, comprising a transaction or series of related transactions that does not take
the legal form of a lease but conveys the right to use the asset in return for a payment or series of payments. In case
of such arrangements, the Company applies the requirements of Ind AS 116 - Leases to the lease element of the
arrangement. For the purpose of applying the requirements under Ind AS 116 - Leases,payments and other
consideration required by the arrangement are separated at the inception of the arrangement into those for lease
and those for other elements. During the year, no arrangement is treated in nature of Lease.
t). Non-Current assets or disposal held for sale and discontinued operations
Non-current assets or disposal held for sale
Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use.
Such assets or disposal groups are classified only when both the conditions are satisfied -
1. The sale is highly probable, and
2. The asset or disposal group is available for immediate sale in its present condition subject only to terms that
are usual and customary for sale of such assets.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed
sale within one year from the date of classification as held for sale, and actions required to complete the plan of sale
should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Noncurrent assets or disposal group are presented separately from the other assets in the balance sheet. The
liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance
sheet.
Upon classification, non-current assets or disposal group held for sale are measured at the lower of carrying amount
and fair value less costs to sell. Non-current assets which are subject to depreciation are not depreciated or amortized
once those classified as held for sale.
Discontinued Operation
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and
that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated
plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view
to resale. The results of discontinued operations are presented separately in the statement of profit and loss.
35. Segment Reporting
The Company is engaged in manufacturing of Plastic Pet Jars, Containers, Creates, bottles and caps. Considering
the nature of Company's business and operations, there are no separate reportable segments (business or
geographical) in accordance with the requirements of Indian Accounting Standard 108 ‘Segment Reporting'. The
Chief Operational Decision Maker(CODM) monitors the operating results as one single segment for the purpose of
making decisions about resource allocation and performance assessment and hence, there are no additional
disclosures to be provided other than those already provided in the financial statements.
38. In the opinion of the Management and to the best of their knowledge and believe, the value on realization of current
assets, Loan & Advances in the ordinary course of business would not be less than the amount at which they are
stated in the Balance Sheet.
37. Financial Risk Management Objective And Policies
The company is exposed to market risk, credit risk and liquidity risk. The Group's senior management oversees the
management of these risks. It is the Company's policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarized below.
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings. The company is exposed to interest rate risk on variable rate long term borrowings.
The company has elaborate risk management systems to inform Board members about risk management and
minimization procedures.
i. 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 is exposed to foreign currency risk as there
are few transactions in foreign currency. Particulars of un-hedged foreign currency exposures as at the
Balance Sheet date are NIL (previous year NIL). Hence, no further disclosure is required under this section.
ii. Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Any changes in the interest rates environment may impact
future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed &
Floating Rate Borrowings. The following Table shows the blend of Company's Fixed & Floating Rate
Borrowings in Indian Rupee:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment.
iii. Price Risk
Commodity price fluctuation can have an impact on the demand of Plastic Pet Jars, Containers, Creates,
bottles and capsfor particular product therefore, company continuously keep on track the commodity price
movement very closely and take advance production decision accordingly.
In addition to the above company also maintain a strategic buffer inventory to ensure that such disruptions
do not impact the business significantly.
b) Credit risk
Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in
financial loss to the company. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions and
other financial instruments.
To manage this, the Company periodically assesses the financial reliability & credibility of customers, taking
into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing
of accounts receivable.
The Company has well defined sales policy to minimize its risk of credit defaults. Outstanding customer
receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data
at each reporting date on an individual basis. However a large number of minor receivables are regularly
monitored and assessed.
c) Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a
reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risk are overseen by senior management.
Management monitors the company's net liquidity position through rolling, forecast on the basis of expected
cash flows.
39. Information on lease transactions pursuant to Ind AS 116 - Leases
Until March 31, 2019, the Company recognized leases in accordance with Ind AS 17. A lease was defined as an
agreement whereby the lessor conveys to the lessee in return for a series of payments the right to use an asset for
an agreed period of time. The lessor and lessee accounted for the lease on the basis of the distribution of the risks
and rewards associated with the leased asset.
In so far as all the substantial risks and rewards were transferred to the Company as lessee, the respective leased
assets were capitalized at fair value or the lower present value of the minimum lease payments and depreciated
using the straight-line method on the basis of the useful life of the underlying asset or the lease term, if this was
shorter. The payment obligations resulting from future lease payments were discounted and recognized as a
liability.Where the Company was the lessee in operating leases, in other words, if not all material risks and rewards
were transferred, the lease or rental payments were recognized directly as expenses in the statement of Profit and
Loss. Since April 1,2019, the Company has recognized leases in accordance with Ind AS 116. This defi nes a lease
as a contract, or part of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed
period of time in exchange for consideration.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation
cost for the right-of-use asset, and fi nance cost for interest accrued on lease liability. Some practical expedients
permitted by the standard are used, notably:
• To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under
Ind AS 116 has been applied only to contracts entered into or changed on or after April 01,2019.
• For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are
expiring within 12 months from the date of transition by class of asset
• The recognition exemptions for short-term leases and leases of low-value assets.
• To apply Ind AS 37 for onerous leases instead of performing an impairment review.On application of Ind AS
116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-
of-use asset, and finance cost for interest accrued on lease liability.
Company as a Lessor:
The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a
lessor. The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The
Company does not have any signifi cant impact on account of sub-lease on the application of this standard.The
Company has given its building space, lying under property, plant and equipments, on operating lease through
operating lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over
the lease term.
40. Capital Management
a. Risk Management
The group's objectives when managing capital are:
i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and
ii) maintain an optimal capital structure to reduce the cost of capital
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares.
Fair value hierarchy
The fair value 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 Company
maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant
data available. The fair values of the financial assets and liabilities are included at the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date.
The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments
by valuation techniques,
Assumptions and valuation technique used to determine fair value
The following methods and assumptions were used to estimate the fair values
i. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
ii. Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest
rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate
borrowings approximates their carrying values.
42. GST Input claimed in Books of Accounts and GSTR-3B are not in agreement with each other. For which exact cause
for the mismatch were provided by the company and it will be mitigated by the company in current year.
43. Due Date of Last Quarter of TDS return submission is 31 st May 2025 due to which TDS receivable pertaining to last
quarter are not appearing in the Form 26AS due to which TDS receivable reconciliation as on 31st March' 2025 has
not been done.
44. Internal Controls
Company does not have any mechanism to close year wise books in its reporting software SAP. Further, management
do not possess internal audit report for the period 2024-24.
45. Balance Confirmations
In the process of obtaining balance confirmation and periodic account reconciliation with trade receivables and
trade payables as at March 31,2025, the balances of certain parties under aforesaid heads are subject to reconciliation
and Confirmation. The impact, if any that may result on reconciliation and confirmaiton of the balances could not be
ascertained.
48. Previous year’s figures
These have been regrouped / reclassified where necessary, to confirm to current year's classification.
* As Confirmed by Company, there is no change in charge during year ending March 31,2025
As per our report of even date attached
For MAHESH YADAV AND COMPANY For and on behalf of the Board of Directors of
Chartered Accountants INNOVATIVE TECH PACK LIMITED
Firm’s Registration No.036520N
Sd/- Sd/- Sd/-
Mahesh Yadav Ketineni Pratibha Rao K.Satish Rao
Proprietor Director Managing Director
Membership no. - 548924 DIN-06955087 DIN-02435513
UDIN : 25548924BMUKIY7576
Sd/- Sd/-
Place: Gurugram Mohit Chauhan Sanjay Saigal
Dated: 30th May’ 2025 Company Secretary CFO
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