r) Provisions and contingent liabilities
Provisions are recognised when the company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence
will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be measured in terms of future outflow of resources
or where a reliable estimate of the obligation cannot be made.
s) Employee benefits
(i) Short term obligations
Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognised in
respect of employees services up to the end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled.
(ii) Other long term employee benefit obligations
The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees
render the related services are measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of reporting period using the projected unit credit method.
(iii) Post-employment obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value
of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.
(iv) Defined contribution plans
Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and
Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.
t) Estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management has made judgements, estimates and assumptions that affect the application
of accounting policies and reported amounts of assets, liabilities, income and expenses.
The areas involving critical estimates or judgements are:
- Estimation of current tax expense and payable.
- Designation of financial assets /liabilities through FVTPL.
- Estimation of defined benefit obligation.
- Recognition of deferred tax assets for carried forward tax losses.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on company and that are believed to be
reasonable under the circumstances.
u) Ind As 116-Leases:
On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind AS 116 sets out the principals for the recognition,
measurement, presentation and disclosure of leases and requires leases to account for all leases under a single on-
balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two
recognition exemptions for leases - leases og 'low-value' assets and short term leases (i.e., leases with lease term of
12 months or less). At commencement date of the lease, a lessee will recognise a liability to make lease payments
(i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the
right-to-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and
the depreciation expenses on the right-to-use asset.
Lessees will be also required to remeasure the lease liability upon the occurance of certain events (e.g., a change in
the lease term, a change in future lease payments resulting from a change in an index or rate used to determine
those payments). The leassee will generally recognise the amount of the remeasurement of the lease liability as an
adjustment to the right-to-use asset. It has no impact on the company.
22.2. Significants accounting judgements, estimates & assumptions
The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Judgements
In the process of applying the Company's accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the financial statements:
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. 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.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based
on expected future inflation rates. Further details about gratuity obligations are given in Note:-25 .
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using other valuation techniques. The Inputs to these
models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is
based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
Note:- 24 Earnings per share (EPS) (Ind AS 33)
The Company's Earnings Per Share ('EPS') is determined based on the net profit attributable to the shareholders' of the
Company . Basic earnings per share is computed using the weighted average number of shares outstanding during the year.
Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent
shares outstanding during the year including share options, except where the result would be anti-dilutive.
The Company does not fall under any category of sub-section (1) of Section 135 of the Companies Act, 2013, thus there is no CSR obligation
for the financial year 2024-25. However, Board on the recommendation of CSR Committee approved Rs.90 lakhs Contribution to the Oswal
Foundation for undertaking CSR activities under 'Rural Development' as prescribed in the Schedule VII of the Companies Act, 2013, which
shall be adjusted against next year CSR Obligations.
(Note*-An excess amount of Rs. 3.49 Lakhs is still pending for set-off, from the contribution made in 2022-23 under Health Care Project.
Thus, the total advance for set off is 93.49 Lakhs).
Note:-27 Dues to micro and small suppliers
Under the section 22 of Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October,
2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and
rDords available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and
Medium Enterprises Development Act, 2006.
d) Measurement of fair values
The fair value of the financial assets and liabilities is 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 following methods and assumptions
were used to estimate the fair values:
(i) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables,
other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
(ii) The fair value of non-current borrowings and security deposits that approximate to their carrying amounts as it is based
on discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining
maturities. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.
Note:- 30. Financial risk management objectives and policies
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company's operations and to support its operations. The Company's financial assets
include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company's senior management oversees the
management of these risks. The company's senior management is supported by a financial risk committee that advises on
financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee
provides assurance to the Company's senior management that the Company's financial risk activities are governed by
appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are
summarised as 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 and currency risk. Financial instruments affected by
market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.
a) Market risk- Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable
rate.
(B) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables
and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other
counterparties and incorporates this information into its credit risk controls.
(a) Credit risk management
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for
each class of 'financial instruments with different characteristics. The Company assigns the following credit ratings to each
class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.
(i) Low credit risk on financial reporting date
(ii) Moderate credit risk
(iii) High credit risk
The Company provides for expected credit loss based on the following:
Cash & cash equivalents and bank deposits
Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and
diversifying bank deposits and accounts in different banks across the country.
Trade receivables
Credit risk related to trade receivables are mitigated by taking Credit insurance for domestic sales/letter of credit for export
sales, which results in low credit risk. The Company closely monitors the credit-worthiness of the debtors through internal
systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts.
The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default
is considered to have occurred when amounts receivable become one year past due.
The Company's capital management objectives are to ensure the Company's ability to continue as a going concern as well as
to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and
borrowings, trade payables, less cash and cash equivalents and other bank balances.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes
were made in the objectives, policies or processes for managing capital during the years ended 31st March 2025 and 31st
March 2024.
Note:- 34 Related party disclosure as per Ind AS 24
a) Disclosure of related parties and relationship between the parties
Nature of relationship
(i) Associates
M/s Nahar Capital & Financial Services Limited
(ii) Key Management Personnel
Mr. Sambhav Oswal (Managing Director), Mr. S. K. Sharma (Executive Director), Mr. Rakesh Jain (Chief Financial
Officer) and Ms. Priya (Company Secretary)
(iii) Directors & their relatives
Mr. Jawahar Lal Oswal (Chairman), Mr. Kamal Oswal (Director), Mr.Dinesh Oswal (Director), Mr. Dinesh Gogna, Mr.
S.K.Singla, Mr. Y.P.Sachdeva, Mr. A.S. Sohi, Mr.Anchal Kumar Jain, Dr.Prem Lata Singla, Rajan Dhir, Dr. Rakesh Kumar
- Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in
agreement with the books of accounts.
- No proceeding have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988).
- The company has not been declared as wilful defaulter by any bank or financial Institution or other lender
- The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
- There are no transactions which are 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).
- No funds 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 lend or invest in party
identified by or on behalf of the company (Ultimate Beneficiaries).
- No funds have been received by the company 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 in any manner whatsoever by or on behalf of the funding party ("Ultimate
beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
During the financial year, the Company has not traded or invested in Crypto currency or Virtual Currency.
The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
The Board of Directors of Company have proposed the final dividend of Rs.1.00 per equity shares of Rs.5.00 each for the
financial year 2024-25. The proposed final dividend is subject to approval of the members at the ensuing Annual General
Meeting. The amount of such dividend proposed is in accordance with section 123 of Companies Act, 2013.
The figures of the corresponding previous year have been regrouped wherever considered necessary to correspond to
current year disclosures.
This is the notes referred to in our report of even date
For YAPL & Company For Nahar Poly Films Limited
Chartered Accountants
FRN:017800N
Pankaj Lakhanpal Rakesh Jain Priya Sambhav Oswal Dinesh Oswal
(Partner) (Chief Financial Officer) (Company Secretary) Managing Director Director
M.No.097993 (DIN - 07619112) (DIN - 00607290)
Place : Ludhiana
Date : 28.05.2025
UDIN : 25097993BMIXYG2713
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