f) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised 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 provision is measured using the
cash flows 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 money is material).
g) Revenue recognition
Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and
excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control of a product or
service to a customer.
Revenue from the sale of goods is recognised when the Company transfers Control of the product. Control of the product
transfers when the goods have been dispatched from the factory or upon shipment of the product to the customer, provided
transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future
obligations with respect to the product dispatched or shipped. Amounts disclosed as revenue are net off returns, trade
allowances, rebates and indirect taxes, if any.
A receivable is recognised by the Company when the goods are dispatched to the customer or upon shipment of the product
to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage
of time is required before payment is due.
Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
Income from windmills
Income from electricity units generated by windmills is accounted as income from windmills at landed cost and has been shown as
such in the Statement of Profit and Loss.
Dividend and interest income
Dividend income from investments is recognised when the shareholder's right to receive payment has been established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial recognition
h Leases (Ind AS 116
Effective 01 April, 2019, the Company has adopted Ind AS 116 "Leases", applied to all lease contracts existing on 01 April, 2019
using the modified retrospective method of transition. Accordingly, comparatives for the year ended 31 March, 2019 have not been
retrospectively adjusted. The Company’s lease asset classes primarily consist of leases for land.
At the date of commencement of the lease, the Company recognizes a right of use asset (“ROU”) and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value
leases, if any. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis
over the term of the lease.
The right of use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.
Right of use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life
of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the
country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset
if the Company changes its assessment ifwhether it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows.
The following is the summary of practical expedients elected on initial application:
1. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the
date of initial application
2. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied
only to contracts that were previously identified as leases under Ind AS 17.
i) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
j) Government Grant:
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be
complied with. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related
asset.
k) Employee benefits
Employee benefits includes salaries and wages, provident fund, employee state insurance scheme, gratuity and compensated absences.
i) Defined contribution plans
The Company 's contribution to provident fund and employee state insurance scheme are considered as defined contribution
plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered
by the employees.
ii) Defined benefit plans
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial
valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately
in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur.
Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to
profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by
applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are
categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
• net interest expense or income; and
• remeasurement
The Company presents the first two components of defined benefit costs in the consolidated statement of profit and loss in the
line item 'Employee benefits expense’. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Group's defined
benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the
form of refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related restructuring costs
iii) Short-term employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised during the year when the employees render the service. These benefits include compensated absences which are
expected to occur within twelve months after the end of the period in which the employee renders the related service.
The cost of short-term compensated absences is accounted as under:
(i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future
compensated absences; and
(ii) in case of non-accumulating compensated absences, when the absences occur.
iv) Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.
l) Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity,
on or before the end of the reporting period but not distributed at the end of the reporting period.
m) Rounding off
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of
Division II, Schedule III, unless otherwise stated.
n) Financial instruments
Financial assets and financial liabilities are recognised when a Group becomes a party to the contractual provisions of the instruments.
) Financial Assets
A. Initial recognition and measurement
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted
to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.
B. Subsequent measurement
a) Financial assets carried at Amortised Cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
c) Financial assets at Fair Value Through Profit or Loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
C. Investment in subsidiary and Joint Venture
The Group has accounted for its investments in subsidiary and joint venture at cost.
D. Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in consolidated statement of profit and loss,
except for those equity investments for which the Group has elected to present the value changes in ‘Other Comprehensive Income’.
E. Impairment of financial assets
The Group applies the expected credit loss model for recognising impairment loss on trade receivables and other contractual
rights to receive cash or other financial instruments.
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.
Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with the contract and
ail the cash flows that the Group expects to receive, discounted at the original effective interest rate. The Group estimates
cash flows by considering all contractual terms of the financial instrument.
The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if
the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial
instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life¬
time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months
after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.
If the Group measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period,
but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due
to improvement in credit quality as compared to the previous period, the Group again measures the loss allowance based on
12 -month expected credit losses.
When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the
Group uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the
change in the amount of expected credit losses. To make that assessment, the Group compares the risk of a default occurring
on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the
date of initial recognition and considers reasonable and supportable information, that is available without undue cost or
effort, that is indicative of significant increases in credit risk since initial recognition. For trade receivables or any contractual
right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Group
always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of
measuring lifetime expected credit loss allowance for trade receivables, the Group has used a practical expedient as permitted
under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account
historical credit loss experience and adjusted for forward-looking information.
ii) Financial liabilities
A. Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the consolidated statement of profit and loss as finance cost.
B. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables
maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.
iii) Derecognition of financial instruments
The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Group's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.
o) Segment reporting
The Board of directors assesses performance of the Group as Chief Operating Decision Maker (CODM).
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the entity’s CODM and make decisions and for which discrete financial
information is available. The CODM have identified one reportable segment i.e. Paper.
p) Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in the consolidated
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In
addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiary and joint venture, and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable
profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future
economic benefits in the form of availability of set off against future income tax liability. Accordingly, deferred tax asset is recognised in
the consolidated balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated
with the asset will be realised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Current and deferred tax for the year
Current and deferred tax are recognised in the consolidated statement of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a
business combination, the tax effect is included in the accounting for the business combination.
q) Foreign exchange transactions and translation
Transactions in foreign currencies i.e. other than the Group’s functional currency of Indian Rupees are recognised 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
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in the consolidated
statement of profit and loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge
certain foreign currency risks.
C. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, the management of the Group is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods. In the following areas the management of the Group has made critical
judgements and estimates.
Useful lives of property, plant and equipment
The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This
reassessment may result in change in depreciation expense in future periods.
Estimation of defined benefit obligation
The Group has defined benefit plans for its employees which are actuarially valued. Such valuation is based on many estimates and other
factors, which may have a scope of causing a material adjustment to the carrying amounts of assets and liabilities.
Recognition of deferred tax assets
Deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable profit will be available
against which the deductible temporary difference can be utilised. Based on Group’s past history, the management believes that taxable
profits will be available while recognising deferred tax assets.
Recognition and measurement of other provisions
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
figure so provided and included as liability.
* Includes as at 31 March, 2025'3864.64 lakh (previous year ' 3541.19 lakh) current maturities of Long term borrowings (refer note 19).
# Represents instalment amount at the initial period, subsequently instalment amounts are changing as per the terms of repayment.
Note a. Term loan is secured by way of pari passu charges on Immovable property (Land and Building), Plant and Machinery (present and future)
and other constructions at Vapi of the Company and equitable mortgage on immovable properties situated at Vapi of the Company, further
secured by Hypothecation charge over the entire current assets of the Company including raw materials, stock in process, finished goods, stores and
spares and other consumables, receivables and all other current assets of the Company (present and future) with other lenders under Consortium,
and bears rate of interest ranging from 9.15% to 11.25%.
Note b. Vehicle loans referred in S. No. 10 to 14, are secured by way of hypothecation of Vehicles and bears interest rates ranging from 7.95% to
10.25%.
Note c. Term loan referred to in S. No. 15 is secured by way of mortgage on Guest house situated at Daman bears floating interest rate ranging from
9.25% to 9.40%.
Note d. All term loans from banks are further secured by way of personal guarantee of Mr. Gautam D Shah, Chairman and Managing Director of
the Company.
In the absence of detailed information regarding plan assets which is funded with LIC the composition of each major category of plan assets the
percentage or amount for each category to the fair value of plan assets has not been disclosed.
These plans typically expose the Company to actuarial risks such as:
Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.
Interest rate risk - A fall in the discount rate which is linked to the Government Securities rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Asset Liability Matching Risk (ALM) - The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.
Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in
the salary of the members more than the assumed level will increase the plan's liability.
Mortality risk - Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Concentration Risk - Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the
assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.
In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The estimate of future
salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the
change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the
projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation
as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
iii) Other Long-term Employee Benefits
Compensated absences which are accumulated and not expected to be availed within twelve months after the end of the reporting period in which
the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.
An amount of ' 26.50 Lakh (previous year ' 12.06 Lakh) has been charged to the Statement of Profit and Loss for the year ended 31 March, 2025
towards Compensated absences.
Note: 33.2 Segment Information
a. Description of segments and principal activities
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Company’s other components, and for which discrete financial
information is available. All operating segments’ operating results are reviewed regularly by the Company’s Board of Directors (BoD) i.e. CODM to
make decisions about resources to be allocated to the segments and assess their performance.
The company has a single operating segment i.e. manufacturing of kraft paper (Testliner and Multilayer Testliner). Accordingly the segment
revenue, segment result, segment assets and segment liabilities are reflected in the financial statements as at and for the financial year ended 31
March, 2025 and 31 March, 2024 respectively.
b. Geographical Information
Revenue from customers is earned mainly in India and non-current assets are located in India.
c. Information about products and services
The company is in single line of business of manufacturing of Kraft paper (Testliner and Multilayer Testliner).
b. Fair Value Hierarchy of Financial Assets and Liabilities
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and
measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an
indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels
prescribed under the accounting standards below:
Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Level 3 inputs are unobservable inputs for the asset or liability.
Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
(i) Measured at Amortised Cost for which Fair Value is disclosed
The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables, and
other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of
all non-current financial assets and liabilities are considered to be the same as their carrying values, as the impact of fair valuation is not material
(ii) Measured at Fair Value Through Other Comprehensive Income (FVTOCI)
The company has investments in quoted equity shares of Gujarat State Financial Corporation and Punjab National Bank. These equity
investments have been classified as Fair Value through Other Comprehensive Income (FVTOCI). Fair value movements are recognized directly in
other comprehensive income on such investments. Accordingly, such quoted investments fall under fair value hierarchy level 1. The fair value of
these investments as at 31 March, 2025 and 31 March, 2024 is ' 2.39 lakh and ' 2.93 lakh respectively.
c. Capital Management and Gearing ratio
Total equity as shown in the balance sheet includes equity share capital, capital reserve, general reserves, securities premium and retained earnings.
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its
shareholders.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and
market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or
if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.
(iii) Market Risk
The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies
to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material
price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as
strategic sourcing initiative in order to keep raw material and prices under control to the extent possible.
A) Foreign Exchange Risk
The Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and also indirectly through transactions
denominated in foreign currency though settled in functional currency (INR), primarily with respect to the US Dollar (USD). Foreign exchange
risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional
currency (INR).
The risk is measured through a forecast of highly probable foreign currency cash flows. As per the risk management policy, the foreign currency
exposure is unhedged.
The table below shows the unhedged currency exposure of financial assets and liabilities:
Notes forming part of Standalone Financial Statements
Note: 33.9 Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property.
(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
"(iv) The Company have 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:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries."
"(v) The Company have 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:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."
(vi) The Company do not have 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).
(vii) Monthly statement of current assets (book debts and inventories) is filed by the Company with the bank are in agreement with the unaudited
books of accounts.
(viii) The Company is not declared willful defautler by any banks where Company has availed term loan facilities.
(ix) The Company has complied with the number of layers prescribed under Companies Act, 2013.
(x) The Company has not entered into any Scheme of Arrangement which has an accounting impact on current or previous financial year.
(xi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current
or previous year.
Note: 33.10
During the current year, the Company successfully completed its Phase II capitalization which includes the installation of advanced technological
equipment at unit II, some of which are being introduced for the first time in India. Additionally, significant upgradation and modernization of
plant and machinery were undertaken to enhance production quality, ensuring it meets global standards. These improvements are expected to
increase the production capacity and strength the Company’s ability to compete in international markets.
Note: 33.11
During the year, the Company received the first and final call money of '32 per equity share (comprising '4 towards share capital and '28 towards
securities premium) on 35,38,517 equity shares out of a total of 35,71,133 partly paid-up equity shares of face value ' 10 each.
The total amount received pursuant to the said call aggregates to '11.32 crores, including '9.91 crores towards securities premium. Accordingly,
35,38,517 partly paid-up equity shares have been converted into fully paid-up equity shares.
The balance 32,616 partly paid-up equity shares, on which the first and final call money remains unpaid, have been submitted for forfeiture in
accordance with the applicable provisions of the Companies Act, 2013 and the Articles of Association of the Company. The forfeiture is currently
under consideration by the appropriate authority, and the approval for the same is awaited.
i) This amount is spent for healthcare, education, measures for reducing inequalities faced by socially and economically backward groups, hunger &
poverty, environment sustainability and protection of art & culture.
ii) Amount spent on construction / acquisition of any assets is NIL.
iii) There are no related party transactions in relation to Corporate Social Responsibility in the current and previous year.
*'1.34 Lakhs (previous year ' 2.49) is available for setoff in succeeding years.
Note: 33.15 Approval of financial statements
The financial statements were approved by the board of directors on 29 May, 2025.
For and on behalf of the Board of Directors
Gautam D Shah Bela G Shah Chinmay Methiwala
CMD Whole-time Director & CFO Company Secretary
DIN 00397319 DIN 01044910 Membership No. A48146
Place : Vapi
Date : 29 May, 2025
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