(l) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event 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 recognised 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.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle
or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed
when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non -
occurrence of one or more uncertain future events not wholly within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent
liabilities.
Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be
realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is
recognised.
(m) Borrowing costs
Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured
with reference to the effective interest rate (EIR) applicable to the respective borrowing.
Borrowing costs, allocated to qualifying assets, pertaining to the period from commencement of activities relating to construction /
development of the qualifying asset up to the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of
borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development
activity on the qualifying assets is interrupted.
All other borrowing costs are recognised as an expense in the period which they are incurred.
(n) Segment Reporting - Identification of Segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the company's chief operating decision maker to make decisions for
which discrete financial information is available. Based on the management approach as defined in Ind AS 108, the chief operating
decision maker evaluates the Company's performance and allocates resources based on an analysis of various performance indicators
by business segments and geographic segments.
(o) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity
shares issued during the year
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potential equity
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive
potential equity shares.
(p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered an integral part of the Company's cash management.
(q) Current/non current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as
current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle
- Held primarily for the purpose of trading
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.
The company has identified twelve months as its operating cycle.
(r) Dividends
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.
(s) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of
Schedule III, unless otherwise stated.
3 Significant accounting judgements, estimates and assumptions
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the
management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and
expense for the periods presented.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed
information about each of these estimates and judgements is included in relevant notes together with information about the basis of
calculation for each affected line item in the financial statements.
Critical estimates and judgements
(i) Estimation of net realizable value for inventory
Inventory is stated at the lower of cost and net realizable value (NRV).
NRV for completed inventory is assessed by reference to market conditions and prices existing at the reporting date and is
determined by the Company, based on comparable transactions identified.
(ii) Impairment of non - financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists,
or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs
of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation
model is used.
(iii) Recoverability of trade receivables
In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for
recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in
credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its
historical credit loss experience.
(iv) Useful lives of property, plant and equipment/intangible assets
The Company reviews the useful life of property, plant and equipment/intangible assets at the end of each reporting period. This
reassessment may result in change in depreciation expense in future periods.
(v) Defined benefit plans
The cost of the defined benefit gratuity plan and other post-employment medical 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.
Thefinancial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards)(Amendment)
Rules, 2016 and the relevant provisions of the Companies Act, 2013 ("the Act").
(i) Leave Obligations
The leave obligations cover the Company's liability for sick and earned leave.
The amount of the provision of INR 1.12 lakhs (March 31, 2024: INR 2.19 lakhs) is presented as current, since the company does not have an
unconditional right to defer settlement for any of these obligations.
(ii) Post Employment obligations
a) Gratuity
The Company provides for gratuity for employees in India as per the Payment ofGratuity Act, 1972. Employees who are in continuous service
for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn
basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.
The gratuity plan is an unfunded plan.
Finance Income and Cost, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying
instruments are managed.
Current Taxes, deferred Taxes and certain financial assets and liabilites are not allocted to those segments as they are alos managed
on a group basis.
Revenue form Major Customers
Revenue from one customer amounted to INR 221.12 Lakhs ( March 31 2024 INR 148.42 Lakhs ), arising from sales in the Plastic Sheets
Segments.
The management assessed that the fair value of cash and cash equivalent, 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.
The fair values of the equity and debt investment which are quoted are derived from the quoted market price in active markets.
The fair value of the financials instruments that are not traded in an active market that is i.e. are unquoted is determined using net asset valuation techniques where managemnet has
considered the net book value of the investee Companies at the reporting date based on the latest available audited financials statements. The net book values have been arived at by
dividing the value of asset less liabilities by numbers of equity shares.
The fair values for loans and other non current financial assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fairvalues in the
Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
Thefair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fairvalues in thefairvalue hierarchy due tothe
use of unobservable inputs, including own credit risk.
39. FINANCIAL RISK MANAGEMENT
The Company's activity exposes it to market risk, liquidity risk and credit risk. Company's overall risk management focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance of the company. This note explains the sources of risk which the entity is exposed to and how the company manages
the risk.
(A) Credit risk
Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at
amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.
i. Credit risk management
Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the
company grants credit terms in the normal course of business.
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each
reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk
of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.
In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due.
A default on a financial asset is when the counterparty fails to make contractual payments of when they fall due. This definition of default is determined by considering the business
environment in which entity operates and other macro-economic factors.
ii. Provision for expected credit losses
The Company follows 'simplified approach' for recognition of loss allowance on Trade receivables.
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its
historicallyobserved default rates overthe expected life ofthe trade receivables and is adjusted forforward-lookingestimates. At every reportingdate, the historical observed default
rates are updated and changes in the forward-looking estimates are analyzed.
(B) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due. The Company consistently generated sufficient cash flows from operations to meet its financial obligations.
Managementmonitors rollingforecasts ofthe Company's liquidity position (comprising the undrawn borrowingfacilities) and cash and cash equivalents on the basis ofexpected cash
flows. In addition, the company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance
sheet liquidity ratios against internal and external regulatory requirements.
Maturities of financial liabilities
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table
below, borrowings includes both interest and principal cash flows. To the extent that interest rates are floating rate, the undiscounted amount is derived from interest rate curves at
the end of the reporting period.
41. OTHER STATUTORY DISCLOSURE
i. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) as disclosed in the financial statements are held in the name of the
Company.
ii. The Company does not have any fixed assets which are revalued, therefore the disclosure regarding the reconciliation of
the gross and net carrying amount of each class of assets at the beginning and end of the reporting period is not applicable
to us. The Company has not acquired any asset through business combination, thus disclosures related to assets acquired
through business combination is not disclosed thereof.
iii. The Company does not hold any project in progress or any suspended project as on the reporting date, thus the Capital
work in progress ageing schedule is not applicable to us.
iv. The Company does not have any Intangible assets under development stage, therefore disclosures and ageing related to
those are not applicable to us.
v. The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1998) and the rules
made thereunder.
vi. The Company does not have any borrowings from Banks and Financial Institutions against any current assets and that are
used for any other purpose other than the specific purpose for which it was taken at the reporting balance sheet date.
vii. The Company has not entered into any transaction with the Companies Struck off under section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the concerned financial year.
viii. The Company is not declared as a wilful defaulter by any Bank or Financial Institution or other lender during the any
reporting period.
ix. The Company does not have any credit facility with Bank or Financial Institute and the Company was not required to file
any form with Registrar of Companies (ROC) related to creation/ modification and Satisfaction of charge during the
concerned financial year.
x. The company does not have any subsidiaries as per clause (87) of section 2 of the Act read with Companies (Restriction
on number of Layers) Rules, 2017.
xi. There are no schemes or arrangements which have been approved by the Competent Authority in terms of sections 230
to 237 of the Companies Act, 2013 during the reporting periods.
xii. 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.
xiii. 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.
xiv. The Company does not have any 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).
xv. The company does not fall under the provision of section 135 of the Companies Act, 2013, hence the CSR disclosure is
not applicable to the Company.
xvi. The Company has not traded or invested in Crypto currency or Virtual Currency during reporting period.
xvii. There has been no Scheme of Arrangements that has been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013.
44. OTHERS
1. The balances in accounts of certain trade receivables, trade payables and loans and advances given are subject to confirmation and consequent reconciliations. Adjustments
in this respect in the opinion of the management are not likely to be material and would be carried out as and when ascertained.
2. The management based on their review of assets and operation of the Company has determined the market value that there is no indication of potential impairment and
that the recoverable amount of its fixed assets is not lower than its carrying amount. Accordingly, no provision for impairment has been considered necessary as at March 31,
2025.
45. Figures of the previous year have been regrouped, reclassified and/or rearranged wherever necessary.
Significant Accounting Policies and Notes forming 1 to 45
part of the Financial Statements
As per our report of even date attached
For GMJ & Co For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 103429W
Sd/- Sd/- Sd/-
CA. Haridas Bhat Ramesh Tainwala Upasana Babel
Partner Managing Director Director & CFO
Membership No. 039070 (DIN: 00234109) (DIN: 10625478)
Sd/-
UDIN: 25039070BMHZLF6308 Divya Saboo
Place: Mumbai Place: Mumbai Company Secretary
Date: May 22, 2025_Date: May 22, 2025_(ACS A72994)
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