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Notes to Accounts of Malu Paper Mills Ltd.
Mar 31, 2025
2.9 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of obligation. Provision is
not recognised for future operating losses.
Provision is measured at the present value of managementâs best estimate of
the expenditure required to settle the present obligation at the end of the
reporting period. If the effect of the time value of money is material, the
amount of provision is discounted using an appropriate pre-tax rate that
reflects current market assessments of the time value of money and, when
appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance
cost.
A Contingent liability is disclosed in case of a present obligation arising from
past events, when it is either not probable that an outflow of resources will be
required to settle the obligation, or a reliable estimate of the amount cannot be
made. A Contingent Liability is also disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed
only by occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company.
Contingent Assets are not recognised but where an inflow of economic benefits
is probable, contingent assets are disclosed in the financial statements.
2.10 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic
benefits of a transaction will flow to the Company and the revenue can be
reliably measured. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government.
Sale of Goods
Revenue from sale of goods is recognised upon transfer of significant risks and
rewards of ownership of the goods to the customer, where neither continuing
managerial involvement nor effective control over the goods sold is retained.
Sales are exclusive Goods and Service Tax (GST). It is measured at fair value of
consideration received or receivable, net of returns, rebates and discounts,
Revenue consist of Freight Collected on Account of outward carriage of Goods
Rental Income
Rental Income is accounted as and when accrues.
Interest Income
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 timely basis, by
reference to the principal outstanding and at the effective interest rate
applicable. The effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset
to the gross carrying amount of that financial asset.
Dividends
Dividend Income is accounted for when Companyâs right to receive income is
established.
Duty Drawback
Income from duty drawback and export incentives is recognized on an accrual
basis.
Sale of Carbon Credits
Income from sale of carbon credits are recognized on net of expenses basis.
The company is recognizing the sale of carbon credit on actual realization
basis.
2.11 Leases
The company evaluates if an arrangement qualifies to be a lease as per the
requirements of IND AS 116.
2.12 Employee Benefits
(i) Short term employee benefits
Employee benefits such as salaries, wages, short term compensated absences,
expected cost of bonus and ex-gratia falling due wholly within twelve months
of rendering the service are classified as short-term employee benefits and are
recognised as an expense at the undiscounted amount in the statement of
profit and loss of the year in which the related service is rendered.
(ii) Long-term benefits:
⢠Defined Contribution Plan:
Provident Fund:
The eligible employees of the Company are entitled to receive post¬
employment benefits in respect of provident fund, in which both
employees and the Company make monthly contributions at a specified
percentage of the employeeâs eligible salary (currently 12%). The
contributions are made to Employee provident fund account maintained
with EPFO. The Companyâs contribution is charged to the statement of
profit and loss as incurred.
⢠Defined Benefit Plan:
Gratuity:
The Company has an obligation towards post-employment benefit viz.
gratuity, a defined benefits retirement plan covering eligible employees.
Post-employment benefit is recognized as an expense in the statement of
Profit & Loss in the year in which employee has rendered service. The
expenses are recognized at present value of the amount payable as
determined by using actuarial valuation techniques. Actuarial gain &
loss on this are charged to statement of profit & loss account.
2.13 Taxes on Income
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 âprofit before taxâ as reported in the 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 Companyâs current
tax is calculated using applicable tax rates that have been enacted or
substantively enacted by the end of the reporting period and the provisions of
the Income Tax Act, 1961 and other tax laws, as applicable.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying
amounts of assets and liabilities in the 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. Deferred
income tax assets and liabilities are offset when there is a legally enforceable
right to offset current income tax assets against current income tax liabilities
and when deferred income tax assets and liabilities relate to the income tax
levied by the same taxation authority on either the same taxable entity or
different taxable entities where there is an intention to settle the balances on a
net or simultaneous basis.
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 future 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 Company
expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities. The maximum marginal income tax rate
applicable to the company is used for the said calculation.
Current and Deferred Tax for the year
Current and deferred tax are recognised in profit or 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.
2.14 Cash & Cash Equivalent:
Cash and Cash equivalent in the balance sheet comprises cash at banks and
on hand and short term deposits with an original maturity of the 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 equivalent
consists if cash and short term deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the Companyâs cash
management. Bank overdrafts are shown within borrowings in current liabilities in
Balance Sheet.
2.15 Earnings per Share
The basic earnings per share are computed by dividing the net profit
attributable to the equity shareholders for the year by the weighted average
number of equity shares outstanding during the reporting period. Diluted
earnings per share is computed by dividing the net profit attributable to the
equity shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except where
the results would be anti-dilutive.
2.16 Foreign Currency Transactions
Transactions in foreign currencies 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 translated at the rates
prevailing at that date.
Non-monetary items that are measured at historical cost denominated in a
foreign currency are translated using the exchange rate as at the date of initial
transaction. Exchange differences on monetary items are recognised in profit
or loss in the period in which they arise.
2.17 Financial Instruments
Financial assets and financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the instruments.
Initial Recognition:
Financial assets and Financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial assets and
financial liabilities at Fair Value through Profit or Loss) are added to or
deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised in the Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at
amortised cost, fair value through other comprehensive income (âFVOCIâ) or
fair value through profit or loss (âFVTPLâ) on the basis of following:
⢠The entityâs business model for managing the financial assets; and
⢠The contractual cash flow characteristics of the financial assets.
Amortized Cost:
A financial asset shall be classified and measured at amortised cost, if both of
the following conditions are met:
⢠The financial asset is held within a business model whose objective is to
hold financial assets 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.
Fair Value through Other Comprehensive Income:
A financial asset shall be classified and measured at FVOCI, if both of the
following conditions are met:
⢠The financial asset 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.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at FVTPL unless it is
measured at amortised cost or at FVTOCI.
All recognised financial assets are subsequently measured in their entirety at
either amortised cost or fair value, depending on the classification of the
financial assets.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or
âother financial liabilitiesâ.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is
held for trading or are designated upon initial recognition as FVTPL.
Gains or Losses on liabilities held for trading are recognised in the Statement
of Profit and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables)
are subsequently measured at amortised cost using the effective interest
method.
The effective interest method is a method of calculating the amortised cost of a
financial liability and of allocating interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future
cash payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial liability, or
(where appropriate) a shorter period, to the net carrying amount on initial
recognition.
Impairment of financial assets:
The impairment provisions for Financial Assets are based on assumptions
about risk of default and expected cash loss rates. The company uses
judgment in making these assumptions and selecting the inputs to the
impairment calculation, based on Companyâs past history, existing market
conditions as well as forward looking estimates at the end of each reporting
period.
The Credit Policy approved by the Company for bad debts considering past
history of bad debts, instead of recognizing allowance for expected credit loss
based on provision matrix, which uses an estimated default rate, the Company
makes provision for doubtful debts based as specified by the Board. The
Company will reassess the model periodically and make the necessary
adjustments for loss allowance.
De recognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the
cash flows from the asset expires, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another
party. If the Company neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the transferred asset, the
Company recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Company retains substantially
all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognize the financial asset and recognizes a
collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the
assetâs carrying amount and the sum of the consideration received and
receivable and the cumulative gain or loss that had been recognised in other
comprehensive income and accumulated in equity is recognised in profit or
loss if such gain or loss would have otherwise been recognised in profit or loss
on disposal of that financial asset.
On de-recognition of a financial asset other than in its entirety (e.g. when the
Company retains an option to repurchase part of a transferred asset), the
Company allocates the previous carrying amount of the financial asset
between the part it continues to recognize under continuing involvement, and
the part it no longer recognizes on the basis of the relative fair values of those
parts on the date of the transfer. The difference between the carrying amount
allocated to the part that is no longer recognised and the sum of the
consideration received for the part no longer recognised and any cumulative
gain or loss allocated to it that had been recognised in other comprehensive
income is recognised in profit or loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that financial asset. A
cumulative gain or loss that had been recognised in other comprehensive
income is allocated between the part that continues to be recognised and the
part that is no longer recognised based on the relative fair values of those
parts.
Financial liabilities and equity instruments:
⢠Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an
equity instrument.
⢠Equity instruments:
An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities.
Equity instruments issued by a Company are recognised at the proceeds
received.
De recognition of financial liabilities:
The Company derecognizes a financial liability when its contractual obligations
are discharged or cancelled or expired. The Company also derecognizes a
financial liability when its terms are modified and the cash flows under the
modified terms are substantially different.
Offsetting:
Financial assets and financial liabilities are offset and the net amount is
reported in the Balance Sheet where there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.
Derivative Financial Instruments:
The Company enters mainly into foreign exchange forward contracts to
mitigate the foreign currency exposure risk.
Derivatives are initially recognised at fair value at the date the derivative
contracts are entered and are subsequently re measured to their fair value at
the end of each reporting period. The resulting gain or loss is recognised in
Statement of Profit and Loss immediately unless the derivative is designated
and effective as a hedging instrument, in which event the timing of the
recognition in Statement of Profit and Loss depends on the nature of the hedge
relationship.
2.18 Research and Development:
Revenue expenditure on Research and Development is charged to Statement of
Profit and Loss in the year in which it is incurred. Capital expenditure on
Research and Development is considered as an addition to Property, Plant and
Equipment/ Intangible Assets.
2.19 Critical Accounting Judgments and Key Sources of Estimation
Uncertainty
The preparation of the financial statements requires the management to make
judgments, estimates and assumptions in the application of accounting
policies and that have the most significant effect on reported amounts of
assets, liabilities, incomes and expenses, and accompanying disclosures, and
the disclosure of contingent liabilities. 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.
Key estimates, assumptions and judgmentâs
The key assumptions concerning the future and other major sources of
estimation 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:
Income taxes
Significant judgments are involved in determining the provision for income
taxes, including amount expected to be paid/recovered for uncertain tax
positions as also to determine the amount of deferred tax that can be
recognised, based upon the likely timing and the level of future taxable profits.
Property, Plant and Equipment/Intangible Assets
Property, Plant and Equipment/ Other Intangible Assets are
depreciated/amortised over their estimated useful lives, after taking into
account estimated residual value. The useful lives and residual values are
based on the Companyâs historical experience with similar assets and taking
into account anticipated technological changes or commercial obsolescence.
Management reviews the estimated useful lives and residual values of the
assets annually in order to determine the amount of depreciation/amortisation
to be recorded during any reporting period. The depreciation/amortisaion for
future periods is revised, if there are significant changes from previous
estimates and accordingly, the unamortised/depreciable amount is charged
over the remaining useful life of the assets.
Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions
about risk of default and expected cash loss rates. The Company uses
judgment in making these assumptions and selecting the inputs to the
impairment calculations, based on the Companyâs past history, existing
market conditions as well as forward looking estimates at the end of each
reporting period.
The Company reviews its carrying value of investments carried at amortised
cost annually, or more frequently when there is indication for impairment. If
the recoverable amount is less than its carrying amount, the impairment loss
is accounted for.
Recoverability of Trade Receivables
Judgments are required in assessing the recoverability of overdue trade
receivables and determining whether a provision against those receivables is
required. Factors considered include the credit rating of the counterparty, the
amount and timing of anticipated future payments and any possible actions
that can be taken to mitigate the risk of non-payment.
Fair Value measurements 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
(Net Assets Value in case of units of Mutual Funds), their fair value is
measured using valuation techniques including the Discounted Cash Flow
(DCF) model. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgment is required
in establishing fair values. Judgments 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 Assets
The Company has used certain judgments and estimates to work out future
projections and discount rates to compute value in use of cash generating unit
and to access impairment. In case of certain assets independent external
valuation has been carried out to compute recoverable values of these assets.
Provisions & Contingent liabilities
Provisions and liabilities are recognised in the period when it becomes
probable that there will be a future outflow of funds resulting from past
operations or events and the amount of cash outflow can be reliably estimated.
The timing of recognition and quantification of the liability requires the
application of judgment to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and liabilities are
The fair value of the 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 forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1 Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans
from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and
2 individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses of these
receivables.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or
indirectly.
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies :-
a) Market Risk :-
Market risk is the risk of loss of future earnings, or future cash flows arising out of changes in Market Conditions of Paper Industry, which
include changes in prices of Raw Material (indigeneously procured as well as import) .
The company manages market risk through evaluation and identification of risk factors with the object of governing/mitigating them according to
Companyâs objectives and declared policies in specific context of impact thereof on operating performance of the company. The Board provides
oversight and reviews the Risk management policy on regular basis.
b) 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 is not exposed to significant interest rate risk as at the respective reporting dates.
c) Foreign currency risk :-
The Company operates internationally with transactions entered into several currencies.Still the Company is not exposed to foreign exchange
risk as there are no financial instruments to be settled in foreign currency.
d) Credit Risk :-
Credit risk arising from trade receivables is managed in accordance with the Companyâs established policy with regard to credit limits, control
and approval procedures. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS
109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is
measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for
future uncertainties etc.
38 Other Statutory Information
a The Company do not have any Benami Property, Where any proceeding has been initiated or pending against the Company for holding any Benami
Property
b The Company do not have any transactions with strike off companies.
c The Company do not have any satisfaction of charge which is yet to be register with Registrar of Companies beyond the statutory period.
d The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
e Ther Company have not advance or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding that the intermediary shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recored in writing or otherwise) that the company shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
g The company have not any such transaction which is not recored in the books of accounts that has been surrendered or disclosed as income during the
year in the tax assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
39 Going Concern Assumption
The Company recorded a cash loss of Rs. 576.07 Lakhs during the financial year, the companyâs overall profitability has been adversely affected compared
to the previous year. This is primarily due to unfavourable economic and market conditions that prevailed across all business segments throughout the
year.
In response to these challenges, the Company implemented a strategic shift, diversifying its operations and optimizing its product portfolio with a renewed
emphasis on writing and printing paper. As a part of this transformation, targeted investments were made in fixed assets to enhance the brightness and
quality of our paper products. The positive results of these investments began to materialize in the end of fourth quarter.
Further, in alignment with the growing demand for sustainable packaging, the Company is adding value to its Kraft Paper segment by planning to
manufacture Kraft paper for paper bags and sacks. This initiative supports the global shift toward environmentally friendly alternatives to plastic and
opens up new revenue opportunities.
Looking ahead, the Management is confident that the ongoing strategic transformation will lead to an improvement in the Companyâs net worth. To support
this turnaround and ensure operational efficiency, the promoters have expressed their intent to infuse additional capital into the Company as and when
required.
40 OTHERS:
a Balances of in various personal accounts remain unvarified since confirmation from parties avaited.
b Balances of Loans, advances debtors ,Creditors are as per books and subject to confirmation and reconciliation.
c The current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business. The provision for
d The Company has only one lease hold asset against which one time full premium has been paid Upfront. As there is no future payment is
e As the average profit for past 3 years is negative, company is not liabile for CSR Expenditure.
f Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.
As per our Report of even date,
For Demble Ramani & Co.
For Malu Paper Mills Limited. Chartered Accountants
Punamchand Malu Banwarilal Malu Prakash Modi Mayuri Asawa
(Managing Director) (Jt.Managing Director) (CFO) (Company Secretary)
(Din 00301030) (Din 00301297) Ashok Ramani
Partner
Date : 23-05-2025 M.No. 030537
Place : Nagpur FRN : 102259W
UDIN: 25030537BMMLZN1022
Mar 31, 2024
2.9 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. Provision is not recognised for future operating losses.
Provision is measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period. If the effect of the time value of money is material, the amount of provision is discounted using an appropriate pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A Contingent liability is disclosed in case of a present obligation arising from past events, when it is either not probable that an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made. A Contingent Liability is also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent Assets are not recognised but where an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements.
2.10 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits of a transaction will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Sale of Goods
Revenue from sale of goods is recognised upon transfer of significant risks and rewards of ownership of the goods to the customer, where neither continuing managerial involvement nor effective control over the goods sold is retained. Sales are exclusive Goods and Service Tax (GST). It is measured at fair value of consideration received or receivable, net of returns, rebates and discounts, Revenue consist of Freight Collected on Account of outward carriage of Goods
Rental Income
Rental Income is accounted as and when accrues.
Interest Income
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 timely basis, by reference to the principal outstanding and at the effective interest rate applicable. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of that financial asset.
Dividends
Dividend Income is accounted for when Companyâs right to receive income is established.
Duty Drawback
Income from duty drawback and export incentives is recognized on an accrual basis.
Sale of Carbon Credits
Income from sale of carbon credits are recognized on net of expenses basis.
The company is recognizing the sale of carbon credit on actual realization basis.
2.11 Leases
The company evaluates if an arrangement qualifies to be a lease as per the requirements of IND AS 116.
2.12 Employee Benefits
(i) Short term employee benefits
Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus and ex-gratia falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
(ii) Long-term benefits:
⢠Defined Contribution Plan:
Provident Fund:
The eligible employees of the Company are entitled to receive postemployment benefits in respect of provident fund, in which both employees and the Company make monthly contributions at a specified percentage of the employeeâs eligible salary (currently 12%). The contributions are made to Employee provident fund account maintained with EPFO. The Companyâs contribution is charged to the statement of profit and loss as incurred.
⢠Defined Benefit Plan:
Gratuity:
The Company has an obligation towards post-employment benefit viz. gratuity, a defined benefits retirement plan covering eligible employees. Post-employment benefit is recognized as an expense in the statement of Profit & Loss in the year in which employee has rendered service. The expenses are recognized at present value of the amount payable as determined by using actuarial valuation techniques. Actuarial gain & loss on this are charged to statement of profit & loss account.
2.13 Taxes on Income
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 âprofit before taxâ as reported in the 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 Companyâs current tax is calculated using applicable tax rates that have been enacted or substantively enacted by the end of the reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as applicable.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the 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. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when deferred income tax assets and liabilities relate to the income tax levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net or simultaneous basis.
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 future 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 Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. The maximum marginal income tax rate applicable to the company is used for the said calculation.
Current and Deferred Tax for the year
Current and deferred tax are recognised in profit or 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.
2.14 Cash & Cash Equivalent:
Cash and Cash equivalent in the balance sheet comprises cash at banks and on hand and short term deposits with an original maturity of the 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 equivalent consists if cash and short term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Companyâs cash management. Bank overdrafts are shown within borrowings in current liabilities in Balance Sheet.
2.15 Earnings per Share
The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted
earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
2.16 Foreign Currency Transactions
Transactions in foreign currencies 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 translated at the rates prevailing at that date.
Non-monetary items that are measured at historical cost denominated in a foreign currency are translated using the exchange rate as at the date of initial transaction. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
2.17 Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.
Initial Recognition:
Financial assets and Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at Fair Value through Profit or Loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in the Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (âFVOCIâ) or fair value through profit or loss (âFVTPLâ) on the basis of following:
⢠The entityâs business model for managing the financial assets; and
⢠The contractual cash flow characteristics of the financial assets.
Amortized Cost:
A financial asset shall be classified and measured at amortised cost, if both of the following conditions are met:
⢠The financial asset is held within a business model whose objective is to hold financial assets 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.
Fair Value through Other Comprehensive Income:
A financial asset shall be classified and measured at FVOCI, if both of the following conditions are met:
⢠The financial asset 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.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at FVTPL unless it is measured at amortised cost or at FVTOCI.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or âother financial liabilitiesâ.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.
Gains or Losses on liabilities held for trading are recognised in the Statement of Profit and Loss.
Other Financial Liabilities:
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Impairment of financial assets:
The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
The Credit Policy approved by the Company for bad debts considering past history of bad debts, instead of recognizing allowance for expected credit loss based on provision matrix, which uses an estimated default rate, the Company makes provision for doubtful debts based as specified by the Board. The Company will reassess the model periodically and make the necessary adjustments for loss allowance.
De recognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expires, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and recognizes a collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the assetâs carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.
On de-recognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in profit or loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised based on the relative fair values of those parts.
Financial liabilities and equity instruments:
⢠Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
⢠Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by a Company are recognised at the proceeds received.
De recognition of financial liabilities:
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different.
Offsetting:
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
Derivative Financial Instruments:
The Company enters mainly into foreign exchange forward contracts to mitigate the foreign currency exposure risk.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered and are subsequently re measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in Statement of Profit and Loss depends on the nature of the hedge relationship.
2.18 Research and Development:
Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on Research and Development is considered as an addition to Property, Plant and Equipment/ Intangible Assets.
2.19 Critical Accounting Judgments and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires the management to make judgments, estimates and assumptions in the application of accounting policies and that have the most significant effect on reported amounts of assets, liabilities, incomes and expenses, and accompanying disclosures, and the disclosure of contingent liabilities. 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.
Key estimates, assumptions and judgmentâs
The key assumptions concerning the future and other major sources of estimation 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:
Income taxes
Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions as also to determine the amount of deferred tax that can be recognised, based upon the likely timing and the level of future taxable profits.
Property, Plant and Equipment/Intangible Assets
Property, Plant and Equipment/ Other Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account estimated residual value. The useful lives and residual values are based on the Companyâs historical experience with similar assets and taking into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The depreciation/amortisaion for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortised/depreciable amount is charged over the remaining useful life of the assets.
Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculations, based on the Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.
Recoverability of Trade Receivables
Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
Fair Value measurements 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 (Net Assets Value in case of units of Mutual Funds), their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments 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 Assets
The Company has used certain judgments and estimates to work out future projections and discount rates to compute value in use of cash generating unit and to access impairment. In case of certain assets independent external valuation has been carried out to compute recoverable values of these assets.
Provisions & Contingent liabilities
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are
The fair value of the 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 forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1 Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and
2 individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies :-
a) Market Risk :-
Market risk is the risk of loss of future earnings, or future cash flows arising out of changes in Market Conditions of Paper Industry, which include changes in prices of Raw Material (indigeneously procured as well as import) .
The company manages market risk through evaluation and identification of risk factors with the object of governing/mitigating them according to Companyâs objectives and declared policies in specific context of impact thereof on operating performance of the company. The Board provides oversight and reviews the Risk management policy on regular basis.
b) 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 is not exposed to significant interest rate risk as at the respective reporting dates.
c) Foreign currency risk :-
The Company operates internationally with transactions entered into several currencies.Still the Company is not exposed to foreign exchange risk as there are no financial instruments to be settled in foreign currency.
d) Credit Risk :-
Credit risk arising from trade receivables is managed in accordance with the Companyâs established policy with regard to credit limits, control and approval procedures. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for future uncertainties etc.
f The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recored in writing or otherwise) that the company shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
g The company have not any such transaction which is not recored in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
38 OTHERS:
a Balances of in various personal accounts remain unvarified since confirmation from parties avaited. b Balances of Loans, advances debtors ,Creditors are as per books and subject to confirmation and reconciliation.
c The current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business. The provision for
d The Company has only one lease hold asset against which one time full premium has been paid Upfront. As there is no future payment is
e As the average profit for past 3 years is uegative, company is not liabile for CSR Expenditure.
f Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.
As per our Report of even date, For Demble Ramani & Co.
For Malu Paper Mills Limited. Chartered Accountants
Sd/- Sd/- Sd/- Sd/-
Punamchand Malu Banwarilal Malu Prakash Modi Mayuri Asawa
(Managing Director) (Jt.Managing Director) (CFO) (Company Secretary) Sd/-
(Din 00301030) (Din 00301297) Ashok Ramani
Partner
Date : 18-05-2024 M.No. 030537
Place : Nagpur FRN : 102259W
UDIN: 24030537BKFPUI5231
Mar 31, 2023
2.9 Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. Provision is not recognized for future operating losses.
Provision is measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the
reporting period. If the effect of the time value of money is material, the amount of provision is discounted using an appropriate pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A Contingent liability is disclosed in case of a present obligation arising from past events, when it is either not probable that an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made. A Contingent Liability is also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
Contingent Assets are not recognized but where an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements.
2.10 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits of a transaction will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
Sale of Goods
Revenue from sale of goods is recognized upon transfer of significant risks and rewards of ownership of the goods to the customer, where neither continuing managerial involvement nor effective control over the goods sold is retained. Sales are exclusive Goods and Service Tax (GST). It is measured at fair value of consideration received or receivable, net of returns, rebates and discounts, Revenue consist of Freight Collected on Account of outward carriage of Goods
Rental Income
Rental Income is accounted as and when accrues.
Interest Income
Interest income from a financial asset is recognized 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 timely basis, by reference to the principal outstanding and at the effective interest rate applicable. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of that financial asset.
Dividends
Dividend Income is accounted for when Companyâs right to receive income is established.
Duty Drawback
Income from duty drawback and export incentives is recognized on an accrual basis.
2.11 Leases
The company evaluates if an arrangement qualifies to be a lease as per the requirements of IND AS 116.
2.12 Employee Benefits
(i) Short term employee benefits
Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus and ex-gratia falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are recognized as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
(ii) Long-term benefits:
⢠Defined Contribution Plan:
Provident Fund:
The eligible employees of the Company are entitled to receive postemployment benefits in respect of provident fund, in which both employees and the Company make monthly contributions at a specified percentage of the employeeâs eligible salary (currently 12%). The contributions are made to Employee provident fund account maintained with EPFO. The Companyâs contribution is charged to the statement of profit and loss as incurred.
⢠Defined Benefit Plan:
Gratuity:
The Company has an obligation towards post-employment benefit viz. gratuity, a defined benefits retirement plan covering eligible employees. Post-employment benefit is recognized as an expense in the statement of Profit & Loss in the year in which employee has rendered service. The expenses are recognized at present value of the amount payable as determined by using actuarial valuation techniques. Actuarial gain & loss on this are charged to statement of profit & loss account.
2.13 Taxes on Income
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 âprofit before taxâ as reported in the 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 Companyâs current tax is calculated using applicable tax rates that have been enacted or
substantively enacted by the end of the reporting period and the provisions of the Income Tax Act, 1961 and other tax laws, as applicable.
Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized 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. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when deferred income tax assets and liabilities relate to the income tax levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net or simultaneous basis.
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 future 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 Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and Deferred Tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
2.14 Cash & Cash Equivalent:
Cash and Cash equivalent in the balance sheet comprises cash at banks and on hand and short-term deposits with an original maturity of the 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 equivalent consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Companyâs cash management. Bank overdrafts are shown within borrowings in current liabilities in Balance Sheet.
2.15 Earnings per Share
The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equities shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
2.16 Foreign Currency Transactions
Transactions in foreign currencies are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date.
Non-monetary items that are measured at historical cost denominated in a foreign currency are translated using the exchange rate as at the date of initial
transaction. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.
2.17 Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.
Initial Recognition:
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at Fair Value through Profit or Loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized in the Statement of Profit and Loss.
Classification and Subsequent Measurement: Financial Assets
The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income (âFVOCIâ) or fair value through profit or loss (âFVTPLâ) on the basis of following:
⢠The entityâs business model for managing the financial assets; and
⢠The contractual cash flow characteristics of the financial assets.
Amortized Cost:
A financial asset shall be classified and measured at amortized cost, if both of the following conditions are met:
⢠The financial asset is held within a business model whose objective is to hold financial assets 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.
Fair Value through Other Comprehensive Income:
A financial asset shall be classified and measured at FVOCI, if both of the following conditions are met:
⢠The financial asset 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.
Fair Value through Profit or Loss:
A financial asset shall be classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.
All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.
Classification and Subsequent Measurement: Financial liabilities:
Financial liabilities are classified as either financial liabilities at FVTPL or âother financial liabilitiesâ.
Financial Liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.
Gains or Losses on liabilities held for trading are recognized in the Statement of Profit and Loss.
Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortized cost using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Impairment of financial assets:
The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
The Credit Policy approved by the Company for bad debts considering past history of bad debts, instead of recognizing allowance for expected credit loss based on provision matrix, which uses an estimated default rate, the Company makes provision for doubtful debts based as specified by the Board. The Company will reassess the model periodically and make the necessary adjustments for loss allowance.
De recognition of financial assets:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expires, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and recognizes a collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the assetâs carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.
On de-recognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized based on the relative fair values of those parts.
⢠Classification as debt or equity:
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
⢠Equity instruments:
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by a Company are recognized at the proceeds received.
De recognition of financial liabilities:
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are substantially different.
Offsetting:
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
Derivative Financial Instruments:
The Company enters mainly into foreign exchange forward contracts to mitigate the foreign currency exposure risk.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered and are subsequently re measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in
Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in Statement of Profit and Loss depends on the nature of the hedge relationship.
2.18 Research and Development:
Revenue expenditure on Research and Development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on Research and Development is considered as an addition to Property, Plant and Equipment/ Intangible Assets.
2.19 Critical Accounting Judgments and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires the management to make judgments, estimates and assumptions in the application of accounting policies and that have the most significant effect on reported amounts of assets, liabilities, incomes and expenses, and accompanying disclosures, and the disclosure of contingent liabilities. 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 recognized 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.
Key estimates, assumptions and judgmentâs
The key assumptions concerning the future and other major sources of estimation 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:
1I1UUII1C IOAC5
Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions as also to determine the amount of deferred tax that can be recognized, based upon the likely timing and the level of future taxable profits.
Property, Plant and Equipment/Intangible Assets
Property, Plant and Equipment/ Other Intangible Assets are depreciated/amortized over their estimated useful lives, after taking into account estimated residual value. The useful lives and residual values are based on the Companyâs historical experience with similar assets and taking into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The depreciation/amortisaion for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortized/depreciable amount is charged over the remaining useful life of the assets.
Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculations, based on the Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.
Recoverability of Trade Receivables
Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
Fair Value measurements 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 (Net Assets Value in case of units of Mutual Funds), their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments 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 Assets
The Company has used certain judgments and estimates to work out future projections and discount rates to compute value in use of cash generating unit and to access impairment. In case of certain assets independent external valuation has been carried out to compute recoverable values of these assets.
Provisions & Contingent liabilities
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
The fair value of the 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 forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1 Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and
2 individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies :-
a) Market Risk :-
Market risk is the risk of loss of future earnings, or future cash flows arising out of changes in Market Conditions of Paper Industry, which include changes in prices of Raw Material (indigeneously procured as well as import) .
The company manages market risk through evaluation and identification of risk factors with the object of governing/mitigating them according to Companyâs objectives and declared policies in specific context of impact thereof on operating performance of the company. The Board provides oversight and reviews the Risk management policy on regular basis.
b) 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 is not exposed to significant interest rate risk as at the respective reporting dates.
c) Foreign currency risk :-
The Company operates internationally with transactions entered into several currencies.Still the Company is not exposed to foreign exchange risk as there are no financial instruments to be settled in foreign currency.
d) Credit Risk :-
Credit risk arising from trade receivables is managed in accordance with the Companyâs established policy with regard to credit limits, control and approval procedures. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for future uncertainties etc.
a The Company do not have any Benami Property, Where any proceeding has been initiated or pending against the Company for holding any Benami Property
b The Company do not have any transactions with strike off companies.
c The Company do not have any satisfaction of charge which is yet to be register with Registrar of Companies beyond the statutory period.
d The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
e Ther Company have not advance or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recored in writing or otherwise) that the company shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
g The company have not any such transaction which is not recored in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
38 OTHERS:
a The mangement is of the view that the net worth of the company will improve in the upcoming financial years due to the turnaround in production strategies. Further the shareholders may infuse more capital in the company to improve the Net Worth of the company. In view of this going concern status of the company in any way will not be affected. b Balances of in various personal accounts remain unvarified since confirmation from parties avaited. c Balances of Loans, advances debtors ,Creditors are as per books and subject to confirmation and reconciliation.
d The current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary. e The Company has only one lease hold asset against which one time full premium has been paid Upfront. As there is no future payment is required, no further adjustment or accounting trearment under IND AS 116 is required. f Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.
As per our Report of even date, For Demble Ramani & Co.
For Malu Paper Mills Limited. Chartered Accountants
Punamchand Malu Banwarilal Malu Prakash Modi Mayuri Asawa (Managing Director) (Jt.Managing Director) (CFO) (Company Secretary)
(Din 00301030) (Din 00301297) Ashok Ramani
Partner M.No. 030537
Place : Nagpur FRN : 102259W
Date : 20-05-2023 UDIN:23030537BGYYUH8234
Mar 31, 2018
Nature and description of reserve
(i) General Reserve - General reserve are free reserves of the company which are kept aside out of companyâs profits to meet the future requirements as and when they arise. The Company had transferred a portion of the profit after tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
(ii) Retained Earnings - Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.
(iii)Security Premium: It is created from amount collected on issue of shares in excess of the face value of such shares.
(iv) Capital Grant: It is the value of deferred government grant to be recognised in Profit and Loss account over the period in which the entity recognises the related interest on the value of deffered sales tax liability which the grant is intended to compensate.
(Loans of Sr. No a (i) to (v) of Note 16 are secured by :
1. Primary : First paripassu charge on the entire Curent Assets of the Company both present & future.
2. Collateral : Second pari pasu charge on entire Fixed assets of the company and second pari passu charge by way of equitable mortgage of Land and Plant & Machinery of Solar Carbon Pvt Ltd.
3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu & Shri Banwarilal Malu and corporate guarantee of Solar Carbons Pvt Ltd.)
4. Pledge of Promoters Shareholding to the extent of 51% of the paid up capital of the Company.
NOTE : 1 SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of paper. Since the company has only one reportable business segment and geographical segment, no further disclosure is required as per the Indian Accounting Standard 108-Operating Segment.
NOTE : 2 EARNING PER SHARE (EPS)
EPS is calculated by dividing the earning available for equity shareholders or loss attributable to equity shareholders by the weighted average number of equity shares outstanding the year. Numbers used for calculating basic and diluted earnings per equity share are as stated below :
NOTE : 3 Financial Instrument-Accounting Classifications and fair value Measurements
The fair value of the 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 forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1 Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
2 Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Other techniques for which all inputs which have a signifi cant eff ect on the recorded fair value are observable, either directly or indirectly.
Level 3: Techniques which use inputs that have a signifi cant eff ect on the recorded fair value that are not based on observable market data.
NOTE : 4 Financial Risk Management Objectives and Policies :-
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies :-
a) Market Risk :-
Market risk is the risk of loss of future earnings, or future cash flows arising out of changes in Market Conditions of Paper Industry, which include changes in prices of Raw Material (indigeneously procured as well as import) .
The company manages market risk through evaluation and identification of risk factors with the object of governing/mitigating them according to Companyâs objectives and declared policies in specific context of impact thereof on operating performance of the company. The Board provides oversight and reviews the Risk management policy on regular basis.
b) 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 is not exposed to signifi cant interest rate risk as at the respective reporting dates.
c) Foreign currency risk :-
The Company operates internationally with transactions entered into several currencies.Still the Company is not exposed to foreign exchange risk as there are no financial instruments to be settled in foreign currency.
d) Credit Risk :-
Credit risk arising from trade receivables is managed in accordance with the Companyâs established policy with regard to credit limits, control and approval procedures. The Company provides for expected credit losses on trade receivables based on a simplified approach as per Ind AS 109. Under this approach, expected credit losses are computed basis the probability of defaults over the lifetime of the asset. This allowance is measured taking into account credit profile of the customer, geographical spread, trade channels, past experience of defaults, estimates for future uncertainties etc.
e) Liquidity Risk:-
Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at a reasonable price. As per regular reviews by management.the company is not facing any liquidity risk.
NOTE: 5 OTHERS:
a Balances in various personal accounts remain unverified since confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business. The provision for depreciation and
c Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Mar 31, 2016
1 (Loans of Sr. No a (i) to (v) of Note 4 are secured by :
1. Primary : First paripassu charge on the entire Fixed Assets of the Company both present & future.
2. Collateral : Second pari pasu charge on entire current assets of the company and First pari passu charge by way of equitable mortgage of Land and Plant & Machinery of Solar Carbon Pvt Ltd.
3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu & Shri Banwarilal Malu and corporate guarantee of Solar Carbons Pvt Ltd.)
4. Pledge of Promoters Shareholding to the extent of 51% of the paid up capital of the Company.
5 (Loans of Sr. No a (vi) and (viii) of Note 4 are secured by hypothecation of vehicle of company.)
6 In the financial year 2011-12, Loans of Sr. No. a (i) to (v) of Note 4 are restructured under the Corporate Debts Restructure (CDR) mechanism.
Deferred Sales Tax Liability includes:
(7) Interest free deferred Sales Tax Liability amounting to Rs. 1664.62 Lacs (PY Rs 1627.09) has been outstanding at the year end. During the year company has availed further deferred sales tax liability in Kraft Division of Rs.37.53 Lacs (PY Rs. 37.62 Lacs)
(8) The repayment of the Deferred sales tax liability will be made after 31.03.2016 as per the schedule.
(Loans of Sr. No a (i) to (v) of Note 7 are secured by :
9. Primary : First paripassu charge on the entire Curent Assets of the Company both present & future.
10. Collateral : Second pari pasu charge on entire Fixed assets of the company and second pari passu charge by way of equitable mortgage of Land and Plant & Machinery of Solar Carbon Pvt Ltd.
11. Guarantee : Personal guarantee of Directors Shri Punamchand Malu & Shri Banwarilal Malu and corporate guarantee of Solar Carbons Pvt Ltd.)
12. Pledge of Promoters Shareholding to the extent of 51% of the paid up capital of the Company.
b The information required to be disclosed under Micro, Small & Medium Enterprises Development Act, 2006 is not available with the Company.
NOTE 13 SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of paper. Since the company has only one reportable business segment and geographical segment, no further disclosure is required as per the Accounting Standard 17 on Segment Reporting.
NOTE 14 EARNING PER SHARE (EPS)
EPS is calculated by dividing the earning available for equity shareholders or loss attributable to equity shareholders by the weighted
NOTE 15 OTHERS:
a Balances in various personal accounts remain unverified since confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.
c Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.
Mar 31, 2015
A. Rights, preference 6s restriction attached to Equity Shares
The company has only one class of equity Share. Each Shareholder is
eligible for one vote per share. In the event of liquidation of
company, the shareholders are entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The
distribution shall be in proportion to number of equity shares held by
the shareholder.
1 (Loans of Sr. No a (i) to (v) of Note 4 are secured by :
1. Primary : First paripassu charge on the entire Fixed Assets of the
Company both present & future.
2. Collateral : Second pari pasu charge on entire current assets of
the company and First pari passu charge by way of equitable mortgage of
Land and Plant & Machinery of Solar Carbon Pvt Ltd.
3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu &
Shri Banwarilal Malu and corporate guarantee of Solar Carbons Pvt Ltd.)
4. Pledge of Promoters Shareholding to the extent of 51% of the paid
up capital of the Company.
2 (Loans of Sr. No a (vi) and (viii) of Note 4 are secured by
hypothecation of vehicle of company.)
3 In the financial year 2011-12, Loans of Sr. No. a (i) to (v) of Note
4 are restructured under the Corporate Debts Restructure (CDR)
mechanism.
(Loans of Sr. No a (i) to (v) of Note 7 are secured by :
1. Primary : First paripassu charge on the entire Curent Assets of the
Company both present & future.
2. Collateral : Second pari pasu charge on entire Fixed assets of the
company and second pari passu charge by way of equitable mortgage of
Land and Plant & Machinery of Solar Carbon Pvt Ltd.
3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu &
Shri Banwarilal Malu and corporate guarantee of Solar Carbons Pvt Ltd.)
4. Pledge of Promoters Shareholding to the extent of 51% of the paid
up capital of the Company.
NOTE 2. SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of
paper. Since the company has only one reportable business segment and
geographical segment, no further disclosure is required as per the
Accounting Standard 17 on Segment Reporting.
NOTE 3. OTHERS:
a Balances in various personal accounts remain unverified since
confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the
values stated if realized in the ordinary course of business. The
provision for depreciation and all known liabilities are adequate and
not in excess of the amount considered reasonably necessary.
c The company has revised depreciation rates on fixed assets effective
1st April, 2014 in accordance with requirements of schedule II of
Companies Act 2013 ("the Act"). The remaining useful life has been
revised by adopting standard useful life as per New Companies Act,
2013. The carrying amount as on 1st April 2014 is depreciated over the
remaining useful life. As a result of this changes the depreciation
charged for the year ended 31st March 2015 is lower by Rs.
1,64,39,968/-.
d Previous year's figures have been regrouped/reclassified wherever
necessary to correspond with the current year's classification/
disclosure.
Mar 31, 2014
NOTE 1 SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of
paper. Since the company has only one reportable business segment and
geographical segment, no further disclosure is required as per the
Accounting Standard 17 on Segment Reporting.
NOTE 2 CONTINGENT LIABILITIES :
Bank Guarantee Outstanding 14,423,377 13,494,775
Letter of Credit/Buyer''s Credit 113,431,776 116,201,000
Bonds Executed in Favour of Government
Authorities in respect of EPCG
Licence towards 61,401,000 61,401,000
duty saved against which Export
obligation has to be made.
NOTE 3 OTHERS:
a Balances in various personal accounts remain unverified since
confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the
values stated if realized in the ordinary course of business. The
provision for depreciation and all known liabilities are adequate
and not in excess of the amount considered reasonably necessary.
c Previous year''s figures have been regrouped/reclassified wherever
necessary to correspond with the current year''s classification/
disclosure.
Mar 31, 2013
NOTE 1 SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of
paper. Since the company has only one reportable business segment and
geographical segment, no further disclosure is required as per the
Accounting Standard 17 on Segment Reporting.
NOTE 2 CONTINGENT LIABILITIES :
Bank Guarantee Outstanding 13,494,775
Letter of Credit 116,201,000
Bonds Executed in Favour of Government Authorities in respect of EPCG
Licence towards duty saved against which Export 61,401,000 ogligation
has to be made.
NOTE 3 OTHERS :
a Balances in various personal accounts remain unverified since
confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the
values stated if realized in the ordinary course of business. The
provision for depreciation and all known liabilities are adequate and
not in excess of the amount considered reasonably necessary.
c Previous year''s figures have been regrouped/reclassified wherever
necessary to correspond with the current year''s
classification/disclosure.
Mar 31, 2012
A Rights, preference & restriction attached to Equity Shares
The company has only one class of equity Share. Each Shareholder is
eligible for one vote per share. In the event of liquidation of
company, the shareholders are entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The
distribution shall be in proportion to number of equity shares held by
the shareholder.
1 (Loans of Sr. No a (i) to (v) of Note 4 are secured by :
1. Primary : First paripassu charge on the entire Fixed Assets of the
Company both present & future.
2. Collateral : Second pari pasu charge on entire current assets of
the company and First pari passu charge by way of equitable mortgage of
Land and Plant & Machinery of Solar Carbon Pvt Ltd.
3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu &
Shri Banwarilal Malu and corporate guarantee of Solar Carbon Pvt Ltd.)
2 (Loans of Sr. No a (vi) and (vii) of Note 4 are secured by
hypothecation of vehicle of company.)
3 During the financial year 2011-12, Loans of Sr. No. a (i) to (v) of
Note 4 are restructured under the Corporate Debts Restructure (CDR)
mechanism.
((Loans of Sr. No a (i) to (iii) of Note 5 are secured by :
(1) Primary : First pari passu charge by way of hypothecation on entire
current assets of the Company including Raw Materials, Finished Goods,
Stock In Process and Book Debts.
(2) Collateral : Second pari passu charge on the entire Fixed Assets of
the Company and First pari passu charge by way of equitable mortgage of
Land and Plant & Machineiy of Solar Carbon Pvt Ltd.
(3) Personal guarantee of Directors Shri Punamchand Malu & Shri
Banwarilal Malu and corporate guarantee of Solar Carbon Pvt Ltd.)
NOTE 1 SEGMENT INFORMATION :
The Company operates in only one main segment i.e. manufacturing of
paper. Since the company has only one reportable business segment and
geographical segment, no further disclosure is required as per the
Accounting Standard 17 on Segment Reporting.
NOTE 2 CONTINGENT LIABILITIES :
Bank Guarantee Outstanding 13,240,938
Letter of Credit 84,530,000
Bonds Executed in Favour of
Government Authorities in
respect of EPCG
Licence towards duty saved 61,401,000
against which Export ogligation
has to be made.
NOTE 3 OTHERS:
a Balances in various personal accounts remain unverified since
confirmations from the parties are awaited.
b The current assets, loans and advances are approximately of the
values stated if realized in the ordinary course of business. The
provision for depreciation and all known liabilities are adequate and
not in excess of the amount considered reasonably necessary.
c The Revised Schedule VI has become effective from 1 April 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in financial statements.
Previous year's figures have been regrouped/reclassified wherever
necessary to correspond with the current year's
classification/disclosure.
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