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Notes to Accounts of Shilp Gravures Ltd.
Mar 31, 2025
3.9 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, 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 the obligation. The amount recognized as a provision is the best estimate of the
consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, 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.
When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating
to a provision is presented in the statement of profit and loss net of any reimbursement.
Contingent liabilities are not recognised but are disclosed in the notes.
Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable.
3.10 Financial Instruments
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the
instruments.
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 immediately in profit or loss.
3 .11 F i nanc ial asse ts
Initial recognition and measurement
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial
recognition, a financial asset is recognized at fair value. In case of financial assets which are recognized at fair value
through profit and loss (FVTPL), its transaction costs are recognized in the Statement of Profit and loss. In other cases, the
transaction costs are attributed to the acquisition value of the financial asset.
Subsequent measurement
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.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest
income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts
(including all fees and transaction costs and other premiums or discounts) through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective
interest basis for debt instruments other than those financial assets classified as a FVTPL. Interest income is recognized in
profit or loss and is included in the "Other Income" line item.
Classification of financial assets:
Financial assets measured at amortized cost.
A financial asset is measured at the amortized cost if both the following conditions are met:
a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect
contractual cash flows, and
b) 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.
This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company.
Such financial assets are subsequently measured at amortized cost using the effective interest method.
The amortized cost of a financial asset is also adjusted for loss allowances, if any.
Financial assets measured at FVTOCI
A financial asset is measured at FVTOCI if both of the following conditions are met:
a) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual
cash flows and selling the financial assets, and
b) 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 on the principal amount outstanding.
Financial assets measured at FVTPL
A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above.
This is a residual category applied to all other investments of the Company. Such financial assets are subsequently measured
at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss. Dividend Income
on the investments in equity instruments are recognized as ''other income'' in the Statement of Profit and Loss.
Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at
the spot rate at the end of each reporting period. For foreign currency denominated financial assets measured at amortized
cost and FVTPL, the exchange differences are recognized in profit or loss except for those which are designated as hedging
instruments in a hedging relationship.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of group of similar financial assets) is derecognized
(i.e. removed from the Company''s Balance Sheet) when any of the following occurs:
a) The contractual rights to cash flows from the financial assets expires,
b) The company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred
all the risks and rewards of ownership of the financial asset;
c) The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash
flows without material delay to one or more recipients under a ''pass through'' arrangement (thereby substantially
transferring all the risks and rewards of ownership of the financial asset);
d) The Company neither transfer nor retains substantially all risk and rewards of ownership and does not retain control
over the financial assets.
In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset,
but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its
continuing involvement in the financial asset; in that case, the Company also recognizes an associated liability.
The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the
Company has retained.
On derecognition of a financial asset, the difference between the asset''s 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.
Impairment of financial assets
The Company applies expected credit losses (ECL) model for recognizing impairment loss on financial assets measured at
amortized cost and trade receivables. In case of trade receivables, the Company follows a simplified approach wherein an
amount equal to lifetime ECL is measured and recognized as loss allowance. For the purpose of measuring lifetime expected
credit loss, for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. The expected
credit loss allowance is computed based on a provision matrix which takes in to account historical credit loss experience and
adjusted for forward looking information. For recognition of impairment loss on other financial assets and risk exposure, the
company determines whether there has been a significant increase in the credit risk since initial recognition. If the credit
risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if the credit risk has
increased significantly, then the impairment loss is provided based on lifetime ECL. Subsequently, if the credit quality of the
financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company
reverts to recognizing impairment loss allowance based on 12-month ECL. ECL impairment loss allowance (or reversal)
recognized during the period is recognized as income / expenses in the Statement of profit and loss under the head ''Other
expense''.
3.12 Financial liabilities and equity instruments
Debt and Equity Instruments:
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 instruments.
Equity instruments:
An equity instruments is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities, Equity instruments issued by the Company are recognised at the proceeds received, not of direct issue costs.
Financial Liabilities:
Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial
liabilities are initially measured at fair value.
Subsequent measurement
Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities
carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement
of Profit and Loss.
Financial liabilities at FVTPL
A financial liability may be designated as at FVTPL upon initial recognition if:
⢠such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise;
⢠the financial liability whose performance is evaluated on a fair value basis, in accordance with the Company''s
documented risk management;
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit
or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each
reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and
are recognised in profit or loss.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated
at the closing rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign
exchange component forms part of the fair value gains or losses and is recognised in profit or loss.
Dereognition of financial liabilities
A financial liability is dereognized when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference between the carrying amount of the financial liability
derecognized and the consideration paid is recognized in the Statement of Profit and Loss.
3.13 Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The company recognizes a right-of-use assets and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier
of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-
use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s
incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from change in an index or rate, if there is a change in the company''s estimate of
the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will
exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-
of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company presents right-of-use assets that do not meet the definition of investment property in ''property, plant and
equipment'' and lease liabilities in ''loans and borrowings'' in the statement of financial position.
Short-term leases and leases of low-value assets
The company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of real estate
properties that have a lease term of 12 months. The company recognizes the lease payments associated with these leases
as an expense on a straight-line basis over the lease term.
3.14 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating
segments of the Company.
3.15 Fair Value
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either;
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability
All assets and liabilities for which fair value is measured or disclosed in the Standalone financial statements are categorized
within the fair value hierarchy that categorized into three levels, described as follows, the inputs to valuation techniques
used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for Identical
assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Level 1 - quoted (unadjusted) market prices in active markets for identical assets or Liabilities.
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level 3 - inputs that are unobservable for the asset or liability.
For assets and liabilities that are recognized in the Standalone financial statements at fair value on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorized at the end
of each reporting period and discloses the same.
3.16 Earnings Per Share
Basic earnings per share are computed by dividing the profit after tax by the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as adjusted for the
effects of dividend interest and other charges relating to the dilutive potential equity shares by weighted average number of
shares plus dilutive potential equity shares.
3.17 Investments in subsidiaries, associates and joint ventures
The Investments in subsidiaries, associates and joint ventures are carried in these Standalone financial statements at
historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted
for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment in greater
than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is
transferred to the statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds
and the carrying amount is charges or credited to the Statement of Profit and Loss.
3.18 Significant accounting judgments, estimates and assumptions
Significant accounting judgements
The application of the Company''s accounting policies in the preparation of the Company''s Standalone financial statements
requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. The estimates
and assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and
underlying assumptions are reviewed on an ongoing basis and any revisions thereto are recognized in the period in which
they are revised or in the period of revision and future periods if the revision affects both the current and future periods.
Actual results may differ from these estimates which could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key 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. Existing circumstances and assumptions about future developments may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.
(a) Fair value measurement of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using ECL model. The inputs to these models are
taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(b) Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(c) Provisions and Contingent Liabilities
Provisions are 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 the obligation. These are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimate. Contingent liabilities are not recognised in the Standalone financial
statements. The policy for the same has been explained above in para 3.9.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely
that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in
presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation
liability recognized in the balance sheet.
/II. Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is
declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment
of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity
risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company
is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability
without corresponding increase in the asset).
/III. Effect of Plan on Entity''s Future Cash Flows
(i) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance
company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets
arising as a result of such valuation is funded by the Company.
(ii) Expected contribution during the next annual reporting period
Expected contribution for the next year Rs. 9.24 Lakhs
(iii) Financial risk management objective
The Company''s financial liabilities comprise mainly of borrowing, trade payables and other payables. The Company''s financial assets
comprise mainly of investmens in mutual funds, cash and cash equivelant, other balance with banks, loans, trade receivable and other
receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
(iv) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market
risk includes borrowings, investments, trade payable, trade receivable, loans and advances.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
long tem debt obligations with floating interest rates.
The sensitivity analysis has been carried out based on the exposure to interest rates on long term borrowings. The said analysis
has been carried on the amount of floating rate long term liabilities outstanding at the end of the reporting period. A 50 basis
point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.
In case of fluctuation in interest rates by 50 basis points on the exposure of Rs. Nil as on 31st March,2025 and Rs. Nil as on 31st
March,2024 and all other variables were held constant, the company''s profit for the year would increase or decrease as Nil.
b) Foreign Currency Risk
Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign
exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.
The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar, CHF and
Euro.
The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies.
10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables
and payable in currency other than the functional currency of the Company.
A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain
in the Statement of Profit and Loss with a corresponding increase in total equity at the end of the reporting period. A 10% weakening of
the INR against these currencies would have led to an equal but opposite effect.
c) Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other
price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company is exposed to
price risk arising mainly from investment in equity and liquid based mutual fund. The carring value of such mutual funds recognised
at FVTPL amount to Rs. 3227.03 Lakhs as at 31st March, 2025 (Rs. 3056.89 Lakhs as at 31st March, 2024). The details of such
instruments are given in Note 13.
If the NAV has been higher/lower by 10% from the market NAV existing as at 31st March, 2025, the income from other source for
the year ended 31st March 2025 would increase/decrease by Rs. 322.7 Lakhs (for 2023-24 Rs. 305.69 Lakhs) with a corresponding
increase/decrease in total equity of the Company as at 31st March, 2025. 10% represents managment''s assessment of reasonably
possible changes in NAV of mutual funds.
V Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit
risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments,
other balances with banks, loans and other receivables.
(a) Trade receivables management
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a
provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking
information. The expected credit loss allowance is based on the ageing of the days the receivable are due and the rates as given
in the provision matrix.
b) Other financial assets
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and
there is no collateral held against these because the counterparties are banks and recognized financial institutions with high
credit ratings assigned by the various credit rating agencies and investment in mutual funds are equity and liquid fund.
VI Liqudity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through
an adequate amount of committed credit facility to meet obligations when due and to close out market positions. The treasury department
is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen
by senior management. Management monitors the company''s net liquidity position through rolling forecasts on basis of expected cash
flows. Maturity groupings for liquidity risk relating to lease liabilities as under.
44 SEGMENT REPORTING
The Chief Operating Decision maker monitors the operating results of its business segments seperately for the purpose of making decision
about resource allocation and performance assessment. Segment performance is evaluated based on the profit or loss and its measured
consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of products / services
and have been identified as per the quantative criteria specified in the Ind AS 108.
The Company has identified three reportable segments viz (i) manufacture of gravure rollers and (ii) Power generation through wind mill
/ Solar and (iii) Others
Disclosures required under Ind AS 108 - Operating Segments are as under:
5 2 The Company has not elected to exercise its option permitted U/S 115BAA of the Income tax act, 1961 and provision of current tax has
been made as per the normal provisions of the Income Tax Act,1961 and rules frame there under.
53 EVENTS OCCURING AFTER BALANCE SHEET DATE
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the financial statements
to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of
17th May 2025, there were no subsequent events to be recognized or reported that are not already disclosed
54 The Board of Director has, at its meeting held on 17th May, 2025 recommended dividend of Rs. 2.10 per equity share of the face of Rs. 10/
- each for the year ended on 31st March 2024. The recommended dividend is subject to approval of shareholders in Annual General Meeting.
5 5 The code of Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment received Presidential
assent in September 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once
it is effective.
56 OTHERS STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Compnay for
holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(vi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961.
(vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
# Mutual funds is considered for the purpose of computing return on investments.
Notel : (a) : Debt-Equity ratio becomes nil on account of total repayment of working capital loan.
(b) : Decrease is on account of repayment of entire borrowing and interest thereon upto 31 March, 2025.
(c) : Decrease is on account of decreased in net profit after taxes
(d) : Decrease is on account of decreased in net profit after taxes
(e) : Decrease is on account of decreased in earning before interest and taxes
(f) : Decrease is on account of Decreased in finance income
5 8 During the year under review, the company has used accounting software for maintaining its books of accounts for the financial year
ended March 31, 2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software. Further there is no instance of audit trail feature being tampered with in respect of
the accounting software where such feature is enabled. As stated in earlier year standalone financial statements, the Company has used
accounting software for maintaining its books of account for the financial year ended March 31, 2024 which has no feature of recording
audit trail (edit log) facility which is required to be maintained under proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014
applicable from April 1, 2023, and therefore, the question on preservation of audit trail as per the statutory requirements for record
retention does not arise for the financial year ended March 31, 2024.
5 9 The Financial Statements are approved for issue by the Audit Committee and the Board of Directors at their respective meetings conducted
on 17th May, 2025.
60 Previous year figures have been regrouped and reclassified wherever necessary to make it comparable to current year''s figures.
61 Recent accounting pronouncements:
Ministry of Company Affairs (MCA) notify new standards or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For the year ended 31 March, 2025, there is no such notification which would have been
applicable to the company.
As per our report of even date attached For and on behalf of the Board of Directors of
Shilp Gravures Limited
For Shah & Shah Associates CIN: L27100GJ1993PLC020552
Chartered Accountants
Firm Registration No. - 113742W Ambar J. Patel Jayantilal Jhalavadia
Managing Director (DIN No. - 00050042) Director (DIN No. - 01754051)
Sunil K. Dave
Partner Rajendra Gandhi Roshan Shah Harsh Hirpara
Membership No. 047236 Chief Financial Officer Chief Executive Officer Company Secretary
Place : Ahmedabad Place : Rakanpur
Date : 17th May, 2025 Date : 17th May, 2025
Mar 31, 2024
3.9 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, 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 the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, 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.
When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
Contingent liabilities are not recognised but are disclosed in the notes.
Contingent assets are not recognised but are disclosed in the notes where an inflow of economic benefits is probable. 3.10 Financial Instruments
Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
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 immediately in profit or loss.
3 .11 F i nanc ial asse ts
Initial recognition and measurement
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. On initial recognition, a financial asset is recognized at fair value. In case of financial assets which are recognized at fair value through profit and loss (FVTPL), its transaction costs are recognized in the Statement of Profit and loss. In other cases, the transaction costs are attributed to the acquisition value of the financial asset.
Subsequent measurement
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.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as a FVTPL. Interest income is recognized in profit or loss and is included in the "Other Income" line item.
Classification of financial assets:
Financial assets measured at amortized cost.
A financial asset is measured at the amortized cost if both the following conditions are met:
a) The Company''s business model objective for managing the financial asset is to hold financial assets in order to collect contractual cash flows, and
b) 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.
This category applies to cash and bank balances, trade receivables, loans and other financial assets of the Company. Such financial assets are subsequently measured at amortized cost using the effective interest method.
The amortized cost of a financial asset is also adjusted for loss allowances, if any.
Financial assets measured at FVTOCI
A financial asset is measured at FVTOCI if both of the following conditions are met:
a) The Company''s business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets, and
b) 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 on the principal amount outstanding.
Financial assets measured at FVTPL
A financial asset is measured at FVTPL unless it is measured at amortized cost or at FVTOCI as explained above.
This is a residual category applied to all other investments of the Company. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognized in the Statement of Profit and Loss. Dividend Income on the investments in equity instruments are recognized as ''other income'' in the Statement of Profit and Loss.
Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period. For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange differences are recognized in profit or loss except for those which are designated as hedging instruments in a hedging relationship.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of group of similar financial assets) is derecognized (i.e. removed from the Company''s Balance Sheet) when any of the following occurs:
a) The contractual rights to cash flows from the financial assets expires,
b) The company transfers its contractual rights to receive cash flows of the financial asset and has substantially transferred all the risks and rewards of ownership of the financial asset;
c) The Company retains the contractual rights to receive cash flows but assumes a contractual obligation to pay the cash flows without material delay to one or more recipients under a ''pass through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);
d) The Company neither transfer nor retains substantially all risk and rewards of ownership and does not retain control over the financial assets.
In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the financial asset, but retains control of the financial asset, the Company continues to recognize such financial asset to the extent of its continuing involvement in the financial asset; in that case, the Company also recognizes an associated liability.
The financial asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
On derecognition of a financial asset, the difference between the asset''s 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.
Impairment of financial assets
The Company applies expected credit losses (ECL) model for recognizing impairment loss on financial assets measured at amortized cost and trade receivables. In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance. For the purpose of measuring lifetime expected credit loss, for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. The expected credit loss allowance is computed based on a provision matrix which takes in to account historical credit loss experience and adjusted for forward looking information. For recognition of impairment loss on other financial assets and risk exposure, the company determines whether there has been a significant increase in the credit risk since initial recognition. If the credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if the credit risk has increased significantly, then the impairment loss is provided based on lifetime ECL. Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance based on 12-month ECL. ECL impairment loss allowance (or reversal) recognized during the period is recognized as income / expenses in the Statement of profit and loss under the head ''Other expense''.
3.12 Financial liabilities and equity instruments Debt and Equity Instruments:
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 instruments.
Equity instruments:
An equity instruments is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities, Equity instruments issued by the Company are recognised at the proceeds received, not of direct issue costs.
Financial Liabilities:
Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at fair value.
Subsequent measurement
Financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.
Financial liabilities at FVTPL
A financial liability may be designated as at FVTPL upon initial recognition if:
⢠such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;
⢠the financial liability whose performance is evaluated on a fair value basis, in accordance with the Company''s documented risk management;
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.
Foreign exchange gains and losses
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised in profit or loss.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the closing rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss.
Derecognition of financial liabilities
A financial liability is derecognition when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in the Statement of Profit and Loss.
3.13 Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The company recognizes a right-of-use assets and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from change in an index or rate, if there is a change in the company''s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company presents right-of-use assets that do not meet the definition of investment property in ''property, plant and equipment'' and lease liabilities in ''loans and borrowings'' in the statement of financial position.
Short-term leases and leases of low-value assets
The company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of real estate properties that have a lease term of 12 months. The company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
3.14 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.
3.15 Fair Value
The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either;
⢠In the principal market for the asset or liability, or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability
All assets and liabilities for which fair value is measured or disclosed in the Standalone financial statements are categorized within the fair value hierarchy that categorized into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for Identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).
Level 1 - quoted (unadjusted) market prices in active markets for identical assets or Liabilities.
Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - inputs that are unobservable for the asset or liability.
For assets and liabilities that are recognized in the Standalone financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorized at the end of each reporting period and discloses the same.
3.16 Earnings Per Share
Basic earnings per share are computed by dividing the profit after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as adjusted for the effects of dividend interest and other charges relating to the dilutive potential equity shares by weighted average number of shares plus dilutive potential equity shares.
3.17 Investments in subsidiaries, associates and joint ventures
The Investments in subsidiaries, associates and joint ventures are carried in these Standalone financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment in greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charges or credited to the Statement of Profit and Loss.
3.18 Significant accounting judgments, estimates and assumptions Significant accounting judgements
The application of the Company''s accounting policies in the preparation of the Company''s Standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis and any revisions thereto are recognized in the period in which they are revised or in the period of revision and future periods if the revision affects both the current and future periods. Actual results may differ from these estimates which could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key 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. Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(a) Fair value measurement of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using ECL model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(b) Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(c) Provisions and Contingent Liabilities
Provisions are 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 the obligation. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. Contingent liabilities are not recognised in the Standalone financial statements. The policy for the same has been explained above in note 3.9.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.
VII. Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).
VIII. Effect of Plan on Entity''s Future Cash Flows
(i) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.
(ii) Expected contribution during the next annual reporting period
The Company''s best estimate of Contribution during the next year is '' 21.33 Lacs.
(iii) Financial risk management objective
The Company''s financial liabilities comprise mainly of borrowing, trade payables and other payables. The Company''s financial assets comprise mainly of investmens in mutual funds, cash and cash equivelant, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
(iv) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes borrowings, investments, trade payable, trade receivable, loans and advances.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long tem debt obligations with floating interest rates.
The sensitivity analysis has been carried out based on the exposure to interest rates on long term borrowings. The said analysis has been carried on the amount of floating rate long term liabilities outstanding at the end of the reporting period. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.
In case of fluctuation in interest rates by 50 basis points on the exposure of '' Nil as on 31st March,2024 and '' Nil as on 31st March,2023 and all other variables were held constant, the company''s profit for the year would increase or decrease as Nil.
b) Foreign Currency Risk
Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.
c) Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company is exposed to price risk arising mainly from investment in equity and liquid based mutual fund. The carring value of such mutual funds recognised at FVTPL amount to '' 3056.89 Lakhs as at 31st March, 2024 ('' 2339 Lakhs as at 31st March, 2023). The details of such instruments are given in Note 13.
If the NAV has been higher/lower by 10% from the market NAV existing as at 31st March, 2024, the income from other source for the year ended 31st March 2024 would increase/decrease by '' 305.69 Lakhs (for 2022-23''233.9 Lakhs) with a corresponding increase/decrease in total equity of the Company as at 31st March, 2024. 10% represents managment''s assessment of reasonably possible changes in NAV of mutual funds.
V Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.
(a) Trade receivables management
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information. The expected credit loss allowance is based on the ageing of the days the receivable are due and the rates as given in the provision matrix.
b) Other financial assets
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognized financial institutions with high credit ratings assigned by the various credit rating agencies and investment in mutual funds are equity and liquid fund.
VI Liqudity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facility to meet obligations when due and to close out market positions. The treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecasts on basis of expected cash
5 2 The Company has not elected to exercise its option permitted U/S 115BAA of the Income tax act, 1961 and provision of current tax has been made as per the normal provisions of the Income Tax Act,1961 and rules frame there under.
53 EVENTS OCCURING AFTER BALANCE SHEET DATE
The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 18th May 2024, there were no subsequent events to be recognized or reported that are not already disclosed
54 The Board of Director has, at its meeting held on 18th May, 2024 recommended dividend of '' 2.10 per equity share of the face of '' 10/- each for the year ended on 31st March 2024. The recommended dividend is subject to approval of shareholders in Annual General Meeting.
5 5 The code of Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment received Presidential
assent in September 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once it is effective.
56 OTHERS STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Compnay for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(vi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
(vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(h) provide any guarantee, security or the like on hehalf of the Ultimate Beneficiaries.
# Mutual funds is considered for the purpose of computing return on investments.
Notel : (a) : Increase is on account of availment of working capital loan by '' 179.29 lakhs.
(b) : Increase is on account of increase in profit after taxes and before interest and depreciation
(c) : Increase is on account of increase in net profit after taxes
(d) : Increase is on account of increase in net profit after taxes
(e) : Increase is on account of increase in earning before interest and taxes
(f) : Increase is on account of increase in finance income
5 8 During the year under review, the company has used accounting software for maintaining its books of accounts, which does not have feature of recording audit trail of each and every transaction and creating an edit log of each change made in books of accounts along with the date when such changes were made.
5 9 The Financial Statements are approved for issue by the Audit Committee and the Board of Directors at their respective meetings conducted
on 18th May, 2024.
60 (i) Recent accounting pronouncement Standards not issued but not yet effective:
Ministry of Company Affairs ("MCA") notify new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the company.
(ii) Previous year figures have been regrouped and reclassified wherever necessary to make it comparable to current year''s figures.
As per our report of even date attached For and on behalf of the Board of Directors of
Shilp Gravures Limited
For Shah & Shah Associates CIN: L27100GJ1993PLC020552
Chartered Accountants
Firm Registration No. - 113742W Ambar J. Patel Shailesh C. Desai
Managing Director (DIN No. - 00050042) Director (DIN No. - 00169595)
Sunil K. Dave
Partner Rajendra Gandhi Roshan Shah Harsh Hirpara
Membership No. 047236 Chief Financial Officer Chief Executive Officer Company Secretary
Place : Ahmedabad Place : Rakanpur
Date : 18th May, 2024 Date : 18th May, 2024
Mar 31, 2018
1. Corporate Information
Shilp Gravures Limited is a public limited company, incorporated in the year 1993 under the provisions of the Companies Act, 1956 having its registered office at 778/6, Pramukh Industrial Estate, Sola-Santej Road, Rakanpur, Tal. Kalol, Gandhinagar - 382 722, Gujarat, India. The Company has set up, the first gravure roller manufacturing house in India. The Company is engaged in engraving of rollers using three different engraving technologies i.e. electronic, laser and chemical etching. The engraved rollers are used in printing and packaging industries.
2. Statement of compliance and basis of preparation and presentation
2.1 Statement of compliance
The financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015.
Upto the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note - 4 for details of first time adoption exemptions availed by the Company.
2.2 Basis of preparation and presentation
The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.
1. Plant and Machinery includes softwares being an integral part of plant and machinery
2. For charges created on the aforesaid assets, refer note-18.
3. Gross Block and Accumulated Depreciation as on 1st April, 2016 under previous GAAP.
Note: The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information. The expected credit loss allowance is based on the ageing of the days the receivable are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting periods is as follow.
(ii) Terms/Rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. During the year ended 31st March 2018, the amount of per share dividend proposed for distribution to equity shareholders was Rs.1.50 (31st March 2017: Rs.1.50).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note -
1. The above capital reserve pertains to Capital subsidy received of Rs. 15.00 lacs from Government of Gujarat in 1993 towards incentive for setting up plant in backward area and such subsidy can be use for purchase of capital assets.
2. The general reserve is used from time to time to tranfer profits from retained earning for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of oher comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
3. Retained Earning represent the amount that can be distributed by the Company as dividend, bonus etc. considering the requirements of the Companies Act, 2013. On 29th September, 2017, a dividend of Rs. 1.50 per share (total dividend of Rs. 92.25 Lacs) was paid to the holders of fully paid equity shares. In respect of year ended March 31, 2018, the directors propose that dividend of Rs. 1.50 per share be paid on fully paid equity shares. This dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liabilities in the financial statements. The total estimated equity dividend to be paid is Rs. 92.25 Lacs.
Secured
(i) Hire purchase finance from the Daimler Financial Services India Private Limited for 5 Motor Cars amounting to Rs. 106.41 Lacs (as at 31st March 2017: Rs. 138.36 Lacs and as at 1st April 2016: Rs. 166.92 Lacs), out of which Rs. 106.41 Lacs (as at 31st March 2017: Rs. 31.95 Lacs and as at 1st April 2016: Rs. 28.56 Lacs) are classified as current maturity of long term debt, are secured by hypothecation of the Cars. (Refer note - 5)
(ii) Loan from The HDFC Bank Limited amounting to Rs. 551.14 Lacs (as at 31st March 2017: Rs. NIL and as at 1st April 2016: Rs. NIL), out of which Rs. 102.41 Lacs (as at 31st March 2017: Rs. NIL and as at 1st April 2016: Rs. NIL) is classified as current maturity of long term. The loan is secured by exclusive charge over Immovable and Movable assets of the Company. Further, the loan was guaranteed by the personal guarantee of Mr. Amber Patel. (Refer note - 5)
Note : According to the requirements of Ind AS, revenue for the corresponding previous year ended 31st March 2017 were reported inclusive of excise duty. The Government of India has implemented Goods and Service Tax ("GST") from 1st July 2017 replacing Excise Duty, Service Tax and various other indirect taxes. As per Ind AS 18 "Revenue" from 1st July 2017 onward, is reported net of GST. Had the previously reported revenue shown net of excise duty, comparative revenue of the Company would been as follows:
The tax rate used for reconciliation above is the corporate tax rate of 33.063% payable by corporate entities in India on taxable profits under Indian tax law. However, deferred tax is calculated at rate which enacted/substantially enacted as at March 31, 2018 & applicable w.e.f. FY 2018-19 @ 27.82%.
Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.
a) Interest risk: a decrease in the bond interest rate will increase the plan liability.
b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.
VI. Sensitivity Analysis
Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
VII. Asset Liability Matching Strategies
The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).
VIII. Effect of Plan on Entity''s Future Cash Flows
(i) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.
(ii) Expected contribution during the next annual reporting period
The Company''s best estimate of Contribution during the next year is Rs. 21.89 Lacs.
3. FINANCIAL INSTRUMENTS
(i) Capital management
The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of Capital and the risks associated with each class of capital.
(iii) Financial risk management objective
The Company''s financial liabilities comprise mainly of borrowing, trade payables and other payables. The Company''s financial assets comprise mainly of investments in mutual funds, cash and cash equivelant, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
(iv) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes borrowings, investments, trade payable, trade receivable, loans and advances.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long tem debt obligations with floating interest rates.
The sensitivity analysis has been carried out based on the exposure to interest rates on long term borrowings. The said analysis has been carried on the amount of floating rate long term liabilities outstanding at the end of the reporting period. A 50 basis point increase or decrease represents management''s assessment of the reasonably possible change in interest rates.
b) Foreign Currency Risk
Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.
Foreign Currency sensitivity analysis
The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to US Dollar, CHF and Euro.
The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.
A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss with a corresponding increase in total equity at the end of the reporting period. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.
c) Other Price Risk
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments and mutual funds. The Company does not have investment in equity instruments as on 31st March 2018. The Company is exposed to price risk arising mainly from investment in equity and liquid based mutual fund. The carring value of such mutual funds recognised at FVTPL amount to Rs. 1617.79 Lacs as at 31st March, 2018 (Rs. 1229.20 Lacs as at 31st March, 2017 and Rs. 162.02 Lacs as at 1st April 2016). The details of such instruments are given in Note 11.
If the NAV has been higher/lower by 10% from the market NAV existing as at 31st March, 2018, the income from other source for the year ended 31st March 2018 would increase/decrease by Rs. 161.78 Lacs (for 2016-17 Rs. 122.74 Lacs, 2015-16 Rs. 16.02 Lacs) with a corresponding increase/decrease in total equity of the Company as at 31st March, 2018. 10% represents management''s assessment of reasonably possible changes in NAV of mutual funds.
V Credit Risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.
(a) Trade receivables management
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information. The expected credit loss allowance is based on the ageing of the days the receivable are due and the rates as given in the provision matrix.
b) Other financial assets
Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognized financial institutions with high credit ratings assigned by the various credit rating agencies and investment in mutual funds are equity and liquid fund.
4. SEGMENT REPORTING
The Chief Operating Decision maker monitors the operating results of its business segments seperately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on the profit or loss and its measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of products / services and have been identified as per the quantative criteria specified in the Ind AS 108.
The Company has identified three reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill and (iii) Others
5. DISCLOSURES UNDER THE MSMED ACT, 2006
In the absence of any information from vendors regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.
6. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE
As per section 135 of Companies Act, 2013, a Company, meeting the applicability threshold, need to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. These all CSR activities are eradication on hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The fund were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.
a) Current Investment
In the financial statements prepared under previous GAAP, current investments of the Company were measured at lower of cost and fair value. Under Ind AS, these investments have been classified as FVTPL. The fair value changes are recognized in the Statement of Profit and Loss.
On the date of transition to Ind AS as at 1st April 2016, the difference between the fair value of current investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs 7.57 Lacs with corresponding increased in the retained earnings.
As on 31st March, 2017, the fair value of current investment has been increased by 26.40 Lacs.
During the year ended 31st March 2017, net gain amounting to Rs.18.83 Lacs on such fair valuation is recognized in the Statement of Profit and Loss as other income.
b) Expected Credit Loss
Under previous GAAP, the Company used to create provision for receivables only in respect of specific amount for doubtful receivables. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss model (ECL).
Consequent to this change, on the date of transition to Ind AS, allowance for ECL of Rs. 20.27 Lacs is recognized with corresponding reduction in the retained earnings by Rs. 13.57 Lacs and deferred tax liabilities by Rs. 6.70 Lacs.
The amount of allowances for ECL recognized as at 31st March 2017 is Rs. 7.88 Lacs.
c) Short Term Provisions
As per IND AS 10 "Events After Reporting Period", the proposed dividend is required to be recognized in the period in which it is declared. However, as per Indian GAAP, the same was required to be recognized in the period in which it was related. So the Company has reversed the proposed dividend of Rs. 73.80 Lacs and tax thereon of Rs. 15.02 Lacs for the Financial Year 2015-16 since the same was approved by the shareholders on 23rd September, 2016, and the same was paid on 29th September, 2016.
d) Remeasurement of defined benefit plan
In the financial statements prepared under previous GAAP, remeasurement of defined benefit plans and assets (gratuity), arising due to change in actuarial assumptions was recognized as employee benefits expense in the Statement of Profit and Loss, Under Ind AS, such remeasurement benefits relating to defined benefit plans and assets is recognized in OCI as per the requirements of Ind AS 19 -Employees benefits. Consequently, the related tax effect of the same has also been recognized in OCI.
For the year ended 31st March 2017, remeasurement of gratuity liability resulted in net benefit of Rs. 14.69 Lacs which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognized separately in OCI. And recognised deferred tax assets theron by Rs. 4.86 Lacs
e ) Deferred tax
In the financial statements prepared under previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/ liability on timing differences between taxable profit and accounting profit. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/ liability on temporary differences between the carrying amount of an asset / liability in the Balance Sheet and its corresponding tax base.
The transitional adjustments as described in the preceding paragraphs have led to temporary differences and creation of deferred tax thereon. This has resulted in creation of net deferred tax asset of Rs. 6.70 Lacs as at date of transition to Ind AS with a corresponding decrease in retained earnings and reduction in the amount of deferred tax asset in the Balance Sheet.
For the year ended 31st March 2017, it has resulted in decrease in deferred tax expense by Rs. 2.61 Lacs in the Statement of Profit and Loss and increase in deferred tax expense of Rs. 2.61 Lacs.
NOTE 7 - STANDARDS ISSUED BUT NOT EFFECTIVE
The Ministry of Corporate Affairs("MCA") has issued certain amendments to Ind AS through (Indian Accounting Standards) Amendment Rules, 2018. These amendments maintain convergence with IFRS by incorporating amendments issued by International Accounting Standards Board(IASB) into Ind AS and has amended the following standards:
1. Ind AS 115-Revenue from contract with customers
2. Ind AS 21-The effect of changes in foreign exchanges rates
3. Ind AS 12-Income taxes
These amendments are effective for annual periods beginning on or after April 01, 2018.
The company is identifying and evaluating the key impact of the aforesaid amendments.
NOTE 8 - APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the board of directors on April 28, 2018.
Mar 31, 2016
1. Terms/Rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to equity shareholders was Rs.1.20(31st March 2015: Rs.1.20).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
2. Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. NIL (P.Y. Rs. 133.76 Lacs), out of which Rs. NIL (P.Y. Rs. 103.40 Lacs) is classified as current maturity. The entire outstanding has been repaid as on 13/10/2015. The loan was secured by exclusive charge over windmills acquired out of the said loan. Further, the loan was guaranteed by the personal guarantee of some of the promoter directors.
3. Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. NIL (P.Y. Rs. 353.65 Lacs), out of which Rs. NIL (P.Y. Rs. 105.14) is classified as current maturity. The entire outstanding loan has been repaid as on 29/02/2016. The loan was secured by exclusive charge over the new Imported Machineries acquired out of the said loan. Further, the loan was guaranteed by the personal guarantee of some of the promoter directors.
4. Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. NIL (P.Y. Rs. 209.12 Lacs), out of which Rs. NIL (P.Y. Rs. 60.22 Lacs) is classified as current maturity. The entire outstanding loan has been repaid as on 02/02/2016. The loan was secured by exclusive charge over a windmill acquired out of the said loan. Further, the loan was guaranteed by the personal guarantee of some of the promoter directors.
(5. Hire purchase finances from The Ahmedabad Mercantile Co-operative Bank Limited for Car amounting to Rs. NIL (P.Y. Rs. 9.58 Lacs), out of which Rs. NIL (P.Y. Rs. 3.12 Lacs) is classified as current maturity, is secured by hypothecation of the Car. The entire outstanding loan amount has been paid as on 31/12/2015.
6. Hire purchase finance from the Daimler Financial Services India Private Limited for 5 Motor Cars amounting to Rs. 166.92 Lacs (P.Y. Rs. Nil), out of which Rs. 28.56 Lacs (P.Y. Rs. Nil) are classified as current maturity, are secured by hypothecation of the Cars.
7. EMPLOYEE BENEFITS
The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 59.22 Lacs (Year ended 31 March, 2015 - Rs. 44.98 Lacs) for Provident Fund contributions, and Rs. 4.60 Lacs (Year ended 31 March, 2015 - Rs. 6.24 Lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
8. SEGMENT REPORTING
The Company has identified two reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill.
The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management.
9. INTEREST IN JOINT VENTURE
The Company had entered into a Joint Venture Agreement with three Companies namely, Hannecard N.V., Mitex GMBH and Unimark International Private Limited to incorporate a Joint Venture Company in the name of HMSU Rollers (India) Private Limited on 1st February, 2012. The said Joint Venture Company was engaged in the manufacturing of Rubber Rollers and Poly Urethene Rollers. The Company had commenced its commercial operations with effect from 18th April, 2013. During the year, pursuant to approval from Board of Directors, the company has sold all shares of HMSU Rollers (India) Private Limited on 30th March, 2016 and from that date HMSU Rollers (India) Private Limited ceased to be joint venture of the company.
10. Figures of previous year have been regrouped / reclassified, wherever necessary, to make them comparable with current year figures.
Mar 31, 2015
I) Terms/Rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs, 10 per share. Each holder of equity share is entitled to one vote
per share. The Company declares and pays dividends in Indian Rupees.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2015, the amount of per share dividend
recognised as distributions to equity shareholders was Rs, 1.20 (31st
March 2014 : Rs, 1.20)
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all prefrential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.
Secured
(i) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs, 133.76 Lacs (P.Y. Rs, 281.76 Lacs), out of which Rs,
103.40 Lacs (P.Y. Rs, 103.40 Lacs) is classified as current maturity.
The loan is repayable in 60 Monthly installments of Rs,11.50 Lacs each
including interest, from March, 2012. The loan is secured by exclusive
charge over windmills acquired out of the said loan. Further, the loan
has been guaranteed by the personal guarantee of some of the promoter
directors.
(ii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs, 353.65 Lacs (P.Y. Rs, 492.96 Lacs), out of which Rs,
105.14 Lacs (P.Y. Rs, 105.14) is classified as current maturity. The
loan is repayable in 60 Monthly installments of Rs, 11.94 Lacs each
including interest, from October, 2013. The loan is secured by
exclusive charge over the new Imported Machineries acquired out of the
said loan. Further, the loan has been guaranteed by the personal
guarantee of some of the promoter directors.
(iii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs, 209.12 Lacs (P.Y. Rs, 260.95 Lacs), out of which Rs,
60.22 Lacs (P.Y. Rs, 60.22 Lacs) is classified as current maturity. The
loan is repayable in 60 Monthly installments of Rs,6.75 Lacs each
including interest, from May, 2013. The loan is secured by exclusive
charge over a windmill acquired out of the said loan. Further, the loan
has been guaranteed by the personal guarantee of some of the promoter
directors.
(iv) Hire purchase finances from The Ahmedabad Mercantile Co-operative
Bank Limited for Car amounting to Rs, 9.58 Lacs (P.Y. Rs, 11.64 Lacs),
out of which Rs, 3.12 Lacs (P.Y. Rs, 3.12) is classified as current
maturity, is secured by hypothecation of the Car.
Unsecured
(v) Unsecured loan amounting to Rs, Nil Lacs (P.Y. Rs, 145.73 Lacs)
taken from Life Insurance Corporation of India. The loan was availed
against Keyman Insurance policies of the key personnel of the Company.
(i) Working capital loan from The Ahmedabad Mercantile Co. Op. Bank
Ltd. of Rs, 840.18 Lacs (P.Y. Rs, 653.56 Lacs). The same is secured by
present and future book debts and inventories of the Company, personal
guarantee of some of the promoter directors.
* There is no amount due and outstanding to be credited to Investor
Education and Protection Fund
1. Figures in the brackets represent the previous year figures.
2. Plant and Machinery includes softwares being an integral part of
plant and machinery
1. EMPLOYEE BENEFITS
The Company makes Provident Fund and Superannuation Fund contributions
which are defined contribution plans, for qualifying employees. Under
the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognised Rs, 44.98 Lacs (Year ended 31 March, 2014 - Rs, 36.99 Lacs)
for Provident Fund contributions, and Rs, 6.24 Lacs (Year ended 31
March, 2014 - Rs, 6.24 Lacs) for Superannuation Fund contributions in
the Statement of Profit and Loss. The contributions payable to these
plans by the Company are at rates specified in the rules of the
schemes.
As per Accounting Standard 15 "Employee Benefits", the disclosures of
Employee benefits as defined in the Accounting Standard are given
below:
2. SEGMENT REPORTING
The Company has identified business segments as its primary segment and
geographical segments as its secondary segment. Reportable
business segments are primarily
(i) manufacture of engraved copper rollers and
(ii) energy generation through wind mill. Expenses which are not
directly identifiable to each reportable segment have been allocated on
the basis of associated revenues of the segment and manpower efforts.
All other expenses which are not attributable or allocable to segments
have been disclosed as unallocable expenses. Assets and liabilities
that are directly attributable or allocable to segments are disclosed
under each reportable segment. All other assets and liabilities are
disclosed as unallocable. Fixed assets that are used interchangeably
amongst segments are not allocated to primary and secondary segments.
The segment revenue, results, assets and liabilities include the
respective amounts identifiable to each of the segment and amount
allocated on a reasonable basis by management.
Disclosures required under AS 17 Â Segment Reporting are as under:
(Figures in brackets represent previous year numbers)
3. DISCLOSURES UNDER THE MSMED ACT, 2006
In the absence of any information from vendors regarding the status of
their registration under the "Micro Small and Medium Enterprise
Development Act 2006" the company is unable to comply with the
disclosures required to be made under the said Act.
4. Effective from 1st April, 2014, the Company has charged depreciation
based on remaining useful life of the assets as per the requirements of
Schedule II of the Companies Act, 2013 ("the Act"). Consequent to this,
depreciation charge for the year ended on 31st March, 2015 is higher by
Rs,69.72 lacs. Further, in accordance with the transitional provisions
provided in Note 7(b) of Schedule of the Act, an amount of Rs, 64.55
lacs (Net of deferred tax credit of Rs, 31.01 lacs) has been adjusted
against the opening balance of retained earnings in respect of assets
wherein remaining useful life of the assets is Nil.
5. INTEREST IN JOINT VENTURE
The Company has entered into a Joint Venture Agreement with three
Companies namely, Hannecard N.V., Mitex GMBH and Unimark International
Private Limited to incorporate a Joint Venture Company in the name of
HMSU Rollers (India) Private Limited on 1st February, 2012. The said
Joint Venture Company is engaged in the manufacturing of Rubber Rollers
and Poly Urethene Rollers. The Company has commenced its commercial
operations with effect from 18th April, 2013.
6. Figures of previous year have been regrouped / reclassified,
wherever necessary, to make them comparable with current year figures.
Mar 31, 2014
1. BACKGROUND OF THE COMPANY
Shilp Gravures Limited is a public limited company, incorporated in the
year 1993 under the provisions of the Companies Act, 1956. Its shares
are listed on the Bombay Stock Exchange since 1995. The Company has set
up, the first gravure roller manufacturing house in India. The Company
is engaged in engraving of rollers using three different engraving
technologies i.e. electronic, laser and chemical etching. The engraved
rollers are using in printing and packaging industries.
i) Terms/Rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity share is entitled to one vote
per share. The Company declares and pays dividends in Indian Rupees.
The dividend proposed by the Board of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2014, the amount of per share dividend
recognised as distributions to equity shareholders was Rs. 1.20 (31st
March 2013 : Rs. 1.50) In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all prefential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2. LONG TERM BORROWINGS
Secured
(i) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs. 281.76 Lacs (P.Y. Rs. 380.34 Lacs), out of which Rs.
103.40 Lacs (P.Y. Rs. 103.40 Lacs) is classified as current maturity.
The loan is repayable in 60 Monthly installments of Rs. 11.50 Lacs each
including interest, from March, 2012. The loan is secured by exclusive
charge over the three new windmills acquired out of the said loan.
Further, the loan has been guaranteed by the personal guarantee of some
of the promoter directors.
(ii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs. Nil (P.Y. Rs. 133.41 Lacs), out of which Rs. Nil (P.Y.
Rs. 29.68 Lacs) is classified as current maturity. The loan was secured
by exclusive charge over the new Imported Machineries acquired out of
the said loan. Further, the loan was guaranteed by the personal
guarantee of some of the promoter directors.
(iii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs. 492.96 Lacs (P.Y. Rs. Nil), out of which Rs. 105.14
Lacs (P.Y. Rs. Nil) is classified as current maturity. The loan is
repayable in 60 Monthly installments of Rs. 11.94 Lacs each including
interest, from October, 2013. The loan is secured by exclusive charge
over the new Imported Machineries acquired out of the said loan.
Further, the loan has been guaranteed by the personal guarantee of some
of the promoter directors.
(iv) Loan from The Ahmedabad Mercantile Co-operative Bank Limited
amounting to Rs. 260.95 Lacs (P.Y. Rs. 263.96 Lacs), out of which Rs.
60.22 Lacs (P.Y. Rs. 52.79 Lacs) is classified as current maturity. The
new loan is repayable in 60 Monthly installments of Rs. 6.75 Lacs each
including interest, from May, 2013. The loan is secured by exclusive
charge over the new one windmill to be acquired out of the said loan.
Further, the loan has been guaranteed by the personal guarantee of some
of the promoter directors.
(v) Hire purchase finances from The Ahmedabad Mercantile Co-operative
Bank Limited for Car amounting to Rs. 3.84 Lacs (P.Y. Rs. Nil), out of
which Rs. 1.02 Lacs (P.Y. Rs. Nil) is classified as current maturity,
is secured by hypothecation of the Car.
(vi) Hire purchase finances from The Ahmedabad Mercantile Co-operative
Bank Limited for Car amounting to Rs. 11.64 Lacs (P.Y. Rs. Nil), out
of which Rs. 3.12 Lacs (P.Y. Rs. Nil) is classified as current
maturity, is secured by hypothecation of the Car.
(vii) Hire purchase finances for Car amounting to Rs. 1.03 Lacs (P.Y.
Rs. 5.02 Lacs), out of which Rs. 1.03 Lacs (P.Y. Rs. 3.98 Lacs) is
classified as current maturity, is secured by hypothecation of the Car.
Unsecured
(viii) Unsecured loan amounting to Rs. 145.73 Lacs (P.Y. Rs. 172.53
Lacs) taken from Life Insurance Corporation of India. The loan is
availed against Keyman Insurance policies of the key personnels of the
Company. The same to be paid on or before the maturity of the
respective Keyman Insurance policies i.e. 24-05-2015 Rs. 25.65 Lacs,
04-06-2015 Rs. 26.80 Lacs, 28-07-2016 Rs. 18.76 Lacs, 10-05-2018 Rs.
18.95 Lacs, 04-06-2018 Rs. 18.95 Lacs, 15-07-2018 Rs. 18.31 Lacs,
24-08-2018 Rs. 18.31 Lacs
3. EMPLOYEE BENEFITS
The present value of gratuity and leave encashment obligations is
determined based on actuarial valuation by an independent expert, using
the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
4. CONTINGENT LIABILITES (Rs. in Lacs)
As at As at
Particulars 31st MARCH, 2014 31st MARCH, 2013
Disputed demand of Income tax
against which the Company has
preferred appeal 28.44 73.19
Corporate Guarantee given* 1,190.00 -
Bills Discounted - 51.36
* The Company has provided Corporate Guarantee for an amount of Rs.
1190.00 Lacs in favour of Axis Bank Limited for the Term Loan provided
to HMSU Rollers (India) Private Limited, a Joint Venture Company.
The Partners of Joint Venture Agreement have entered into an interse
Memorandum of Understanding that though the Corporate Guarantee is
being provided for 100% amount of Loan faciltiies availed by Joint
Venture company, but in case of invocation of the guarantee by the
lender, the risk will be borne by all partners in their share holding
ratios only. Hence, the liability of the Company, if any, will be
restricted to Rs. 238.00 Lacs (being 20% of total amount of Loan
facilities).
5. SEGMENT REPORTING
The Company has identified two reportable segments viz (i) manufacture
of engraved copper rollers and (ii) energy generation through wind
mill.
The segment revenue, results, assets and liabilities include the
respective amounts identifiable to each of the segment and amount
allocated on a reasonable basis by management.
6. DISCLOSURES UNDER THE MSMED ACT, 2006
In the absence of any information from vendors regarding the status of
their registration under the "Micro Small and Medium Enterprise
Development Act 2006" the company is unable to comply with the
disclosures required to be made under the said Act.
7. INTEREST IN JOINT VENTURE
The Company has entered into a Joint Venture Agreement with three
Companies namely, Hannecard N.V., Mitex GMBH and Unimark International
Private Limited to incorporate a Joint Venture Company in the name of
HMSU Rollers (India) Private Limited on 1st February, 2012. The said
Joint Venture Company is engaged in the manufacturing of Rubber Rollers
and Poly Urethene Rollers. The Company has commenced its commercial
operations with efffect from 18th April, 2013.
8. Figures of previous year have been regrouped / reclassified,
wherever necessary, to make them comparable with current year figures.
Mar 31, 2013
1. BACKGROUND OF THE COMPANY
Shilp Gravures Limited is a public limited company, incorporated in
1993 under the provisions of the Companies Act, 1956. Its shares are
listed on the Bombay Stock Exchange since 1995. The Company has set up,
first gravure roller manufacturing house in India. The Company is
engaged in engraving of rollers through three difference engraving
technologies i.e. electronic, laser and chemical etching. The engraved
rollers are using for printing and packaging industries.
2 CONTINGENT LIABILITES (Rs. in Lacs)
As at As at
Particulars 31st MARCH,
2013 31st MARCH, 2012
Disputed demand of Income
tax against which the
Company has preferred
appeal 73.19 18.25
Bills Discounted 51.36 72.69
The Board of Directors have in their meeting held on 05th November,
2012 passed a resolution for providing Corporate Guarantee for an
amount of Rs. 1190.00 Lacs in favour of Axis Bank Limited for the Term
Loan provided to HMSU Rollers (India) Private Limited, a Joint Venture
Company. However, an application is being made to Ministry of Corporate
Affairs for sorting their prior approval before executing the said
Corporate Guarantee. The application is still under process at
Ministry.
The Partners of Joint Venture Agreement have entered into an interse
Memorandum of Understanding that though the Corporate Guarantee is
being provided for 100% amount of Loan faciltiies availed by Joint
Venture company, but in case of any wrong event, the risk will be borne
by all partners in their share holding ratios only. Hence, the
liability of the company, if any, will be restricted to Rs. 238.00 Lacs
(being 20% of total amount of Loan facilities).
3 SEGMENT REPORTING
The Company has identified two reportable segments viz (i) manufacture
of engraved copper rollers and (ii) energy generation through wind
mill.
The segment revenue, results, assets and liabilities include the
respective amounts identifiable to each of the segment and amount
allocated on a reasonable basis by management.
4 DISCLOSURES UNDER THE MSMED ACT, 2006
In the absence of any information from vendors regarding the status of
their registration under the "Micro Small and Medium Enterprise
Development Act 2006" the company is unable to comply with the
disclosures required to be made under the said Act.
5 Balance of Receivables , Payables, and loans and advances to parties
are subject to their confirmation. These balances therefore, subject to
adjustment, if any , as may be required on settlement of these balances
with the parties
6 Figures of previous year have been regrouped / reclassified,
wherever necessary, to make them comparable with current year figures.
Mar 31, 2012
1. BACKGROUND OF THE COMPANY
Shilp Gravures Limited is a public limited company, incorporated in
1993 under the provisions of the Companies Act, 1956. Its shares are
listed on the Bombay Stock Exchange since 1995. The Company has set up,
first gravure roller manufacturing house in India. The Company is
engaged in engraving of rollers through three difference engraving
technologies i.e. electronic, laser and chemical etching. The engraved
rollers are using for printing and packaging industries.
i) Terms/Rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity share is entitled to one vote per
share. The Company declares and pays dividends in indian (Rs. in Lacs).
The dividend proposed by the Boad of Directors is subject to the
approval of shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2012, the amount of per share dividend
recognised as distributions to equity shareholders was Rs.1.50 (31st
March 2011 : Rs.1.25)
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all prefential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.
Secured
(i) Indian Rupee loan from The Ahmedabad Mercantile Co-operative Bank
Limited amounting to Rs. 391.65 Lacs (P.Y. Rs. NIL). The loan is repayable
in 60 Monthly installments of Rs.11.50 Lacs each including interest, from
March, 2012. The loan is secured by exclusive charge over the new three
windmills acquired out of the said loan. Further, the loan has been
guaranteed by the personal guarantee of some of the promoter directors.
(ii) Hire purchase finances for Car amounting to Rs. 5.02 Lacs (P.Y. Rs.
Nil) is secured by hypothecation of the Car.
Unsecured
(iii) Unsecured loan amounting to Rs. 172.53 Lacs (P.Y. Rs. 169.38 Lacs)
taken from Life Insurance Corporation of India. The loan is availed
against Keyman Insurance Policies of the key employees of the Company.
The same to be paid on or before the maturity of the respective Keyman
Insurance Policy.
(i) Working capital loan from The Ahmedabad Mercantile Co. Op. Bank
Ltd. of Rs. 715.32 Lacs (P.Y. Rs. 692.91 Lacs). The same is secured by
present and future book debts and inventories of the Company, personal
guarantee of some of the promoter directors and further secured by
second charge over fixed assets held by The Royal Bank of Scotland.
(ii) Working capital loan from The Royal Bank of Scotland of Rs. 272.87
Lacs (P.Y. Rs. 268.54 Lacs). The same is secured by exclusive charge over
entire fixed assets of the Company both present and future. Further,
the loan has been guaranted by personal guarantee of all the promoter
directors.
* There is no amount due and outstanding to be credited to Investor
Education and Protection Fund
Secured
(a) Indian Rupee loan from CITI Bank amounting to Rs. 67.67 Lacs (P.Y. Rs.
135.33 Lacs). The loan is repayable in 12 Quarterly installments of
Rs.16.92 lacs each excluding interest, from June, 2010. The loan is
secured by exclusive charge over plant and machinery created out of
that loan. Further, the loan has been guaranteed by the personal
guarantee of some of the promoter directors.
(b) Indian Rupee loan from The Ahmedabad Mercantile Co-operative Bank
Limited amounting to Rs. 19.65 Lacs (P.Y. Rs. 50.56 Lacs). The loan is
repayable in 24 Monthly installments of Rs.3.26 Lacs each including
interest. The loan is secured by exclusive charge over entire movable
plant and machinery acquired out of the said loan. Further, the loan
has been guaranteed by the personal guarantee of some of the promoter
directors.
(c) For nature of security of the loans from The Ahmedabad Mercantile
Co-operative Bank Limited amounting to Rs. 103.40 Lacs (P.Y. Rs. Nil) and
from financial institutions amounting to Rs. 3.75 Lacs (P.Y. Rs. 0.19
Lacs), refer note 5 (i) and (ii).
2 EMPLOYEE BENEFITS
The present value of gratuity and leave encashment obligations is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
The contribution expected to be made by the Company during the
financial year 2012-13 has not been ascertained.
3 CONTINGENT LIABILITES (Rs.in Lacs)
As at As at
Particulars 31st MARCH, 2012 31st MARCH, 2011
Disputed demand not
acknowledged as debt against
which the Company has 18.25 3.47
preferred appeal
Bills Discounted 72.69 50.17
4 SEGMENT REPORTING
The Company has identified two reportable segments viz (i) manufacture
of engraved copper rollers and (ii) energy generation through wind
mill.
The segment revenue, results, assets and liabilities include the
respective amounts identifiable to each of the segment and amount
allocated on a reasonable basis by management.
5 DISCLOSURES UNDER THE MSMED ACT, 2006
In the absence of any information from vendors regarding the status of
their registration under the "Micro Small and Medium Enterprise
Development Act 2006" the company is unable to comply with the
disclosures required to be made under the said Act.
6 INTEREST IN JOINT VENTURE
The Company has entered into a Joint Venture Agreement with three
Companies namely, Hannecard, Mitex Gummifabrik and Unimark
International Private Limited to incorporate a Joint Venture Company in
the name of HMSU Rollers (India) Private Limited on 1st February, 2012.
The said Joint Venture Company will be engaged in the manufacturing of
Rubber Rollers and Poly Urethene Rollers. The newly formed Company has
yet not commenced its commercial operations. The Company has interests
in the following jointly controlled entity:
7 ACQUISITION MADE DURING THE YEAR
In April 2011, the Company has entered into Joint Venture Agreement
with Re S.p.A. Controlli Industriali, an Italy based Company to form a
subsidiary named ReShilp Equipments (India) Private Limited with the
main object to manufacture all types of Web Control & Reel Management
systems and other related plants and machineries. The Company has
acquired 51% stake in the said subsidiary Company. The subsidiary
Company has commenced its commercial operations from 1st August, 2011.
8 PREVIOUS YEAR'S FIGURES
The company prepares and presents its finanical statment as per
Schedule VI to the companies Act, 1956, as per applicable from time to
time. In view of revision to the Schedule VI as per a notification
issued during the year by the central Government, the financial
statements for the financial year ended 31st March, 2012 have been
prepared as per the requirements of the Revised Schedule VI to the
Companies Act, 1956. The previous year figures have been accordingly
regrouped / reclassified to confirm to the current year's
classification.
Mar 31, 2011
1. Contingent liability towards income tax for the Assessment Year
2008-09 aggregating to Rs.3.47 lacs (P.Y. Nil) in respect of
disallowance of depreciation, for which Company's appeal is pending.
2. Estimated amount of contracts remaining to be executed on capital
accounts not provided for (Net of Advance) Rs.109.81 Lacs (P.Y.
Rs.34.76 Lacs).
3. Term loans amounting to Rs.186.09 Lacs (P.Y. ? 535.59 Lacs) and
working capital loans of Rs.268.54 Lacs (P.Y. Rs.184.42 Lacs) from The
Royal Bank of Scotland are secured by exclusive charge over fixed
assets created / to be created out of the said loan and further secured
by mortgage of immovable properties situated at the registered office
of the Company and personal guarantee of all the promoter directors.
During the year all the Credit facilities (Term Loans and Working
Capital facilities) provided by Kalupur Commercial Co. Operative Bank
Limited ("K.C.C.B") have been shifted to The Ahmedabad Mercantile Co.
Operative Bank Limited. The term loan from The Ahmedabad Mercantile
Co-operative Bank limited amounting to ? 50.56 Lacs (P.Y. Rs.100.29
Lacs from K.C.C.B) is secured by exclusive charge over entire movable
plant and machinery acquired out of the said Loan and further secured
by personal guarantee of some of the promoter directors.
Working capital loan from The Ahmedabad Mercantile Co. Op. Bank Ltd
of Rs.692.91 Lacs (P.Y. Rs.447.51 Lacs from K.C.C.B) is secured by
present and future book debts and inventories of the Company, personal
guarantee of some of the promoter directors and further secured by
second charge over fixed assets held by The Royal Bank of Scotland.
Working Capital Loan from the Standard Chartered Bank of Rs.150.00 Lacs
(P.Y. Rs.375.00 Lacs) is secured by hypothecation of stock and book
debts and personal guarantee of some of promoter directors.
Term loan from Citi Bank amounting to Rs.135.33 Lacs (P.Y. Rs.203.00
Lacs) is secured by exclusive charge over plant and machinery created
out of that loan. Hire purchase finances are secured by hypothecation
of respective assets.
Unsecured loan from financial institution amounting to Rs.169.37 lacs
(P.Y. Rs.166.87 lacs) includes loan from Life Insurance Corporation of
India which is availed against Keyman Insurance Policies of the key
employees of the Company.
4. Employee Benefits
The present value of gratuity and leave encashment obligations is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
5. In the absence of any information from vender's regarding the
status of their registration under the "Micro Small and Medium
Enterprise Development Act 2006" the company is unable to comply with
the disclosures required to be made under the said Act.
6. Balances of receivables, payables and loans and advances to parties
are subject to their confirmations. These balances are therefore,
subject to adjustments, if any, as may be required on settlement of
these balances with the parties.
7. Related Party Disclosures:
a) Related parties and their relationship
Name of the related party Relationship
Mr. Ambar J. Patel Key Management Personnel
Mr. Roshan Shah Key Management Personnel
Mr. G.V. Bhavsar Key Management Personnel
Mr. Narendra Patil Individuals exercising
significant influence over
the enterprise
Mr. Atul Vinchhi Individuals exercising
significant influence over
the enterprise
Dr. B. V. Patel Individuals exercising
significant influence over
the enterprise
Mr.Vitthaldas H. Patel Individuals exercising
significant influence over
the enterprise
Mr.Vishnu V. Patel Individuals exercising
significant influence over
the enterprise
Shilp Ultra-tech Pvt Ltd. Entity controlled by Key
Management Personnel
Stylus Infrastructure Entity controlled by Key
Pvt Ltd Management Personnel
Carol Enterprise Entity controlled by Key
Management Personnel
Carol Entity controlled by Key
Management Personnel
Mr. Deval A. Patel Relative of Key Management
Personnel
8. Previous year's figures have been regrouped / rearranged wherever
necessary.
9. Pursuant to the resolution passed by the Board of Directors in
their meeting held on 3rd November, 2010, the Company has entered into
Joint Venture Agreement on 18th April, 2011 with Re S.p.A. Controlli
Industriali, an Italy based Company and incorporated a Joint Venture
Company in the name of "ReShilp Equipments (India) Private Limited"
with the main object to manufacture all types of Web Control & Reel
Management systems and other related plants and machineries. The
Company holds 51% of stake in the newly incorporated Joint Venture
Company.
Mar 31, 2010
1. Estimated amount of contracts remaining to be executed on capital
accounts not provided for (Net of Advances) Rs. 34.76 Lacs (P.Y. Rs
49.00 Lacs).
2. The Company was a partner and held 51 % share in the profits/loss
of M/s Shilp Gravures, a partnership firm engaged in the business of
manufacturing chemical etched gravure rollers.
On April 16,2009 a deed of retirement / dissolution of partnership was
entered into by the partners of the said partnership firm pursuant to
which the partnership was dissolved w.e.f April 15, 2009. In accordance
with the dissolution deed, the Company has taken over the business of
the partnership firm as a going concern along with all the assets
(including intangible assets) and liabilities as appearing in the books
of account of the firm. All partners of the partnership firm other than
the Company shall be paid amounts standing to the credit of their
accounts as at April 15,2009 towards full and final settlement of their
dues as partners upon the dissolution of the partnership firm. The
partners are entitled to recover interest at the rate of 9% p.a. on the
unpaid amount till April 15,2010 and thereafter the unpaid amount if
any, shall carry interest at the rate of 11% p.a. Accordingly, the
following assets and liabilities have been acquired by the Company
3. Term loans amounting to Rs 535.59 Lacs(P.Y. Rs. 709.60 Lacs) and
working capital loans of Rs. 184.42 Lacs (P.Y. Rs. 69.82 Lacs) from ABN
AMRO Bank are secured by exclusive charge over fixed assets created /
to be created out of the said loan and further secured by mortgage of
immovable properties situated at the registered office of the Company
and further secured by personal guarantee of all the promoter
directors.
Term loan from Kalupur Commercial Co-operative Bank Limited amounting
to Rs. 100.29 Lacs (P.Y. Rs. 176.68 Lacs) is secured by exclusive
charge over entire movable plant and machinery, both present and future
lying at the factory premises of the Company at Baroda and further
secured by personal guarantee of some of the promoter directors.
Working capital loan from Kalupur Commercial Co-operative Bank Ltd of
Rs. 447.51 Lacs (P.Y. Rs. 417.49 Lacs) and from Standard Chartered Bank
of Rs.375.00 Lacs (P.Y. Rs. 250.00 Lacs) are secured by present and
future book debts and inventories of the Company and further secured by
personal guarantee of some of the promoter directors.
Term loan from Citi Bank amounting to Rs. 203.00 Lacs (P.Y. Nil) is
secured by exclusive charge over plant and machinery created out of
that loan.
Hire purchase finances are secured by hypothecation of respective
assets.
Unsecured loan from financial institution amounting to Rs. 166.87 lacs
includes loan from Life Insurance Corporation of India which is availed
against Keyman Insurance Policies of the key employees of the Company.
4. Employee Benefits
The present value of gratuity and leave encashment obligations is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.
5. In the absence of any information from venders regarding the
status of their registration under the "Micro Small and Medium
Enterprise Development Act 2006" the company is unable to comply with
the disclosures required to be made under the said Act.
6. Balances of receivables, payables and loans and advances parties
are subject to their confirmations. These balances are therefore,
subject to adjustments, if any, as may be required on settlement of
these balances with the parties.
7. Disclosures in respect of assets acquired under lease and hire
purchase arrangements:
The Company has taken vehicles on hire purchase financing and hire
purchase installments amounting to Rs. 3.03 Lacs (P.Y. Rs.4.93 Lacs)
have been charged to the profit and loss account. The future minimum
hire purchase installments are as under:
8. During the year, a fire took place in the Companys factory premises
at Rakanpur, resulting in partial destruction of stock, consumables,
plant and machinery and building. The Company has lodged a claim with
the insurance company and the surveyors report assessing the loss is
awaited. Pending the settlement of the claim, the Company has accounted
for loss of Rs 39.81 lacs pertaining to the partial destruction of
stores, consumables and other materials. Necessary accounting entries
in respect of the insurance claim and for the loss of plant and
machinery and building will be passed in the year of settlement of
claim with the insurance company.
9. Related Party Disclosures:
a) Related parties and their relationship Name of the related party [
Relationship
M/s.Shilp Gravures Associate Concern
(taken over w.e.f 16th April, 2009
Mr. Ambar J. Patel Key Management Personnel
Mr. Roshan Shah Key Management Personnel
Mr. G.V. Bhavsar Key Management Personnel
Mr. Narendra Patil Individual exercising significant
influence over the enterprise
Mr. Atul Vinchhi Individual exercising significant
influence over the enterprise
10. Segment Reporting
The Company has identified two reportable segments viz (i) manufacture
of engraved copper rollers and (ii) energy generation through wind
mill. The segment revenue, results, assets and liabilities include the
respective amounts identifiable to each of the segment and amount
allocated on a reasonable basis by management. Disclosures required
under AS 17 - Segment Reporting are as under: (figures in brackets
represent previous year numbers)
11. Comparative figures of the previous year do not include the figures
of M/s Shilp Gravures - a partnership firm which was acquired during
the year. Consequently, to that extent the previous year figures are
not comparable with the figures for the year ended on March 31,2010.
12. Previous year figures have been regrouped / rearranged wherever
necessary.
13. Additional information pursuant to the provisions of Clause 3,4C
and 4D of Part II of Schedule VI of the Companies Act, 1956.
The Ministry of Company Affairs, Government of India, vide its Order
No. 46/1/2007-CL- III dated 8th February 2007 issued under Section
211(4) of the Companies Act, 1956 has exempted the Company from
disclosures of quantitative details in the Profit and Loss Account
under paras 3(i) (a), 3(ii)(a) and 3(ii)(b) of Part II, Schedule VI to
the Companies Act, 1956.
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