Notes to Accounts of Stylam Industries Ltd.

Mar 31, 2025

2.10 Provisions

A provision is recognized when an enterprise has
a present obligation as a result of past event; it
is probable that an outflow or resources will be
required to settle the obligation, in respect of which
a reliable estimate can be made. 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. When a provison is measured using
the cash flow estimated to settle the present
obligation, its carrying amount is the present value
of those cash flows (when the effect of the time
value of the money is material).

2.11 Contingent Liabilities

Contingent liabiliity exists when there is possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or present obligation whose amount
cannot be estimated reliably. Contingent liabilities
do not warrant provisions, but are disclosed unless
the possibility of outflow of resources is remote.

2.12 Cash and Cash Equivalents/Cash Flow
Statement

Cash and cash equivalents for the purposes of
Financial Statement comprise of cash at bank and
cash in hand including fixed deposits having original
maturity having less than 3 months.Fixed deposits
other short term investment with an original
maturity of 3~12 months has been shown as other
Bank balances under current financial assets in the
financial statements. Fixed deposit with an original
maturity of more than 12 months has been shown as
non current financial assets.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company''s cash management. The cash
flows are reported using the indirect method, where
by profit/loss before extraordinary items and tax is
adjusted for the effects of transaction of non cash
nature and any deferals or accruals of past or future
cash receipts or payments.

2.13 Financial Instrument

Financial assets and financial liabilities are
recognised when the company becomes a party to
the contractual provisions of the instruments.

Financial assets except for trade receivables that do
not have a significant financing component which
are measured at transaction price 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 the Statement of profit
and 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
the Statement of profit and loss are recognised
immediately in the Statement of profit and loss.

2.14 Financial Assets

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.

Classification of financial assets

Debt instruments that meet the following conditions
are subsequently measured at amortised cost
(except for debt instruments that are designated as
at fair value through the Statement of profit and loss
on initial recognition):¬
- the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

- the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

Debt instruments that meet the following conditions
are subsequently measured at fair value through
other comprehensive income ("FVTOCI") (except
for debt instruments that are designated as at fair
value through the Statement of profit and loss on
initial recognition):

- the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and selling
financial assets; and

- the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.
Interest income is recognised in the Statement
of profit and loss for FVTOCI debt instruments.

All other financial assets are subsequently
measured at fair value.

Effective interest method

The effective interest method is a method of
calculating the amortised 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 points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

Income is recognised on an effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in the Statement of profit and loss and is
included in the "Other income" line item.

Financial assets at fair value through the Statement
of profit and loss (FVTPL)

Investments in equity instruments are classified as at
FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair
value in other comprehensive income for investments
in equity instruments which are not held for trading.

Debt instruments that do not meet the amortised
cost criteria or FVTOCI criteria are measured at
FVTPL. In addition, debt instruments that meet the
amortised cost criteria or the FVTOCI criteria but are
designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortised cost
criteria or debt instruments that meet the FVTOCI
criteria may be designated as at FVTPL upon
initial recognition if such designation eliminates or
significantly reduces a measurement or recognition
inconsistency that would arise from measuring
assets or liabilities or recognising the gains and
losses on them on different bases. The Company
has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
or losses arising on re-measurement recognised

in the Statement of profit and loss. The net gain or
loss recognised in the Statement of profit and loss
incorporates any dividend or interest earned on the
financial asset and is included in the ''Other income''
line item. Dividend on financial assets at FVTPL is
recognised when the company''s right to receive
the dividends is established, it is probable that the
economic benefits associated with the dividend will
flow to the entity, the dividend does not represent a
recovery of part of cost of the investment and the
amount of dividend can be measured reliably.

I nvestments in subsidiaries, Associates and Joint
Ventures

Investment in subsidiaries, associates and joint
ventures are carried at cost in the standalone
financial statements.

Impairment of financial assets

The Company recognises impairment loss on
financial assets measured at cost, amortised cost,
debt instruments at FVTOCI, trade receivables,
other contractual rights to receive cash or other
financial asset, and financial guarantees not
designated as at FVTPL.

Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and it
intents either to settle them on net basis or to realise
the assets and settle the liabilities simultaneously.

Derecognition of financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of
ownership of the asset to another party.

2.15 Financial Libilities and Equity Instruments

Classification as debt or equity

Debt and equity instruments issued by Company
are classified as either financial liabilities or as''
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities.

Financial liabilities

Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortised cost are
determined based on the effective interest method.
Interest expense that is not capitalised as part of costs
of an asset is included under ''Finance costs''.

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability.

All financial liabilities are subsequently measured
at amortised cost using the effective interest
method or at FVTPL.

Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company''s obligations
are discharged, cancelled or have expired.

2.16 Foreign Currencies

The Company''s financial statements are presented in
INR, which is also the Company''s functional currency.
In preparing the standalone financial statements
of the Company, transactions in currencies other
than the Company''s functional currency (foreign
currencies) are recognized at the rates of exchange
prevailing at the dates of the transactions. At the
end of each reporting period, monetary items
denominated in foreign currencies are translated at
the rates pevailing at that date. Non monetary items
that are measured in terms of historical cost in a
foreign currency are not translated.

Exchange differences on monetary items are
recognized in the Statemnet of profit and loss in the
period in which they arise.

2.17 Business Combination

The company accounts for its business combinations
in the nature of Merger, wherein all the assets and
liabilities of the transferor company will become,
after amalgamation, the assets and liabilities of the
transferee company.

The consideration for the amalgamation receivable
by those equity shareholders of the transferor
company who agree to become equity shareholders
of the transferee company is discharged by the
transferee company wholly by the issue of equity
shares in the transferee company.

The business of the transferor company is intended
to be carried on, after the amalgamation, by the
transferee company.

No adjustment is to be made to the book values of
the assets and liabilities of the transferor company
when they are incorporated in the financial
statements of the transferee company except to
ensure uniformity of accounting policies.

2.18 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker. The board of
directors of the Company has been identified as
being the chief operating decision maker by the
Management of the company. The Business activity
of the company majorly falls within one business
segment viz "Laminates".

Description of nature and purpose of each reserve

a) Retained Earnings :-

Retained earnings represents amount that can be distributed by the Company to its equity shareholders is
determined based on the financial statements of the Company and also considering the requirements of the
Companies Act 2013.

b) Other Comprehensive Income :-

Other comprehensive income represents the cumulative actuarial gains & lossses on employee benefits net of taxes.

The above Annexure should be read with the basis of preparation and Significant Accounting Policies appearing in
Note No. 1 and 2 ,Notes to the Standalone Financial Statements and Statement on Adjustments to the Standalone
Financial Statements.

c) Securities Premium Reserve:-

Securities Premium represents amount received on issue of shares in excess of the par value. Utilization of reserve
wil be as per the provision of the relevant statute. During the year, securities premium was not utilized.

d) Capital Reserve:-

Capital Reserve represents the amount on account of forfeiture of equity shares of the Company. Utilization of
reserve will be as per the provision of the relevant statue. During the year, capital reserve was not utilized.

Additional information:

First Pari passu charge for facility by way of Hypothecation on all plant and machinery both present and future consisting
of all moveable assets being moveable properties, now stored at or being stored. Second Pari Passu charge for facility
by way of hypothecation on the stock in trade both present and future consisting of raw materials, finished goods,
goods in process of manufacturing and any other goods, moveable assets or merchandise. First Pari Passu charge on
the whole of the security providers moveable properties inluding its moveable plant and machinery, machinery spares
and tools and accessories and other moveables, both present and future.Second pari passu charge for facility by way
of hypothecation on all the book debts, amount outstanding, monies receivable, claims and bills which are now due
and owing or which may at any time hereafter during the continuance of this security becomes due.

Note - 40

A. Capital Management

The Company manages its capital to ensure that the company will be able to continue as a going concern
while maximising the return to stakeholders through efficient allocation of capital towards expansion of business,
opitimisation of working capital requirements and deployment of surplus funds into various investment options.
The company is not subject to any externally imposed capital requirements. The management of the Company
reviews the capital structure of the Company on regular basis. As part of this review, the Board considers the cost
of capital and the risks associated with the movement in the working capital.

B. Fair value measurements

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments
by valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e.,
derived from prices).

Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable
market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based
on assumptions that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data.

The fair value of the financial assets and financial liabilities are included at the amount that would be received to
sell an asset and paid to transfer a liability in an orderly transaction between the market participants.

The following methods and assumptions were used to estimate the fair values:

- Investments traded in active markets are determined by reference to quotes from the financial institutions;
for example: Net asset value (NAV) for investments in mutual funds declared by mutual fund house, quoted
price of equi shares in the stock exchange etc.

- Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, Trade
payables and other current financial liabilities: Approximate their carrying amounts largely due to short¬
term maturities of these instruments.

- The company''s non current lease liabilities and on current financial assets are measured at amortised cost,
which approximates the fair value as on the reporting date.

- Management uses its best judgement in estimating the fair value of its financial instruments. However, there
are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the
fair value estimates presented above are not necessarily indicative of all the amounts that the company
could have realised or paid in sale transactions as of respective dates, as such, the fair value of the financial
instruments subsequent to the respective reporting dates may be different from the accounts reported at
the each year end.

- There are no transfers between Level I, Level II and Level III during the year ended march 31, 2025
and march 31, 2024

C. Financial risk management objectives and Policies

The Company''s corporate treasury function monitors and manages the financial risks relating to the operations of the
Company. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.
The Company seeks to minimise the effects of these risks by using derivative financial instruments, diversification
of investment, credit limit to exposures, etc., to hedge risk exposures. The use of financial instruments is governed
by the Company''s policies on foreign exchnage risk and the investment. The Company does not enter into or
trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The Company''s activities are not expose it primarily to the

financial risks of changes in foreign currency exchange rates and interest rates risk/liquidity which impact returns
on investments. The Company enters into derivative financial instruments to manage its exposure to foreign
currency risk including export receivables and import payables. Future specific market movements cannot be
normally predicted with reasonable accuracy.

Foreign currency risk management

The Company undertakes transactions denomonated in foreign currencies; consequently, exposures to exchnage
rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising
forward foreign exchange contracts.

Foreing currency Senstivity

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant
foreign currencies. ( )(-)5% 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 only outstanding foreign currency denominated monetary items
and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below
indicates an increase in profit or equity where the INR strengthens ( )(-)5% against the relevant currency. For a
5% weakening of the '' against the relevant currency, there would be a comparable impact on the profit or equity,
and the balances below would be positive or negative

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because
the exposure at the end of the reporting period does not reflect the exposure during the year/ in future years.

D. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a
means of mitigating the risk of financial loss from defaults. The Company''s exposure and wherever appropriate, the
credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit
exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks,
investments in debt instruments/bonds,mutual funds, trade receivables, loans and advances and derivative financial
instruments. None of the financial instruments of the Company result in material concentrations of credit risks.

The Company write off the receivables in case of certainty of irrecoverability.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past
dues and not impaired, there were no indication of default in repayment as at the year end.

The age analysis of trade receivables as of the balance sheet date have been considered from the due date.

Note - 46 Segment Information

Basis for Segmentation

The Company''s Directors examine the Company''s performance. They have determined "Manufacturing and Sale
of Laminates and allied Products" to be a single reportable business segment. No operating segments have been
aggregated to formm the above reportable operating segment.

Information about geographical areas

As the Company operates in India only, hence there is no separate geographical segment.

Information about major customers

No Revenue is derived from one any customer which amounts to 10% or more of the Company''s revenue.

Note - 49 Provision for Impairment

Pursuant to NCLT order dated xx/xx/xxxx

Note-50 Regrouping

In the comparative figures for the financial year ended March 31, 2025, the Company undertook certain regrouping
adjustments to its financial statements to better align with presentation requirements. These adjustments have
resulted in reclassification of certain balances within the Statement of Financial position without impacting the overall
net assets or financial performance. The key effect of the reclassification are in Trade Receivables, Trade Payables, Bank
Balance, Other financial assets, Other financial liabilities, Other Current liabilities. Comparative figues for the previous
period have been reclassified to conform to the current period''s presentation, where applicable. The regrouping is also
affecting the previous year ratios.

Note 51 Other Information:-

(a) The company has not traded in Crypto Currency or Virtual Currency during the year.

(b) There are no Proceedings initiated or pending against the company for holding any benami property under the
Benami Transactions ( Prohibition) Act, 1988 and the rules made thereunder.

(c) There are no charges or Satisfaction of charges which are yet to be registered with Registrar of Companies
beyond the statutory period.

(d) The company is not declared a willful defaulter by any bank or Financial Institution or any other lender.

(e) There are no transactions with any company struck off under section 248 of the Company''s Act, 2013 or Section
560 of the Companies Act, 1956.

(f) No Revaluation of Property,Plant and equipment has taken place during the year.

(g) There are no Loans or advances in the nature of loans grated to Promoters, directors, KMP''s and other related
parties either severally or jointly with any other person that are repayable on demand or without specifying any
terms or period of repayment.

(h) The quaterly returns or statements of current assets filed with the Banks are in agreement with the books of
accounts. The company has not taken any loans from Financial Institutions which requires filing of any
such statements.

(i) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:-

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate
Beneficiaries) by or on behalf of the Company ; or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.

(j) There are no funds which have been received by the Company from any person of entities, including foreign
entities (Funding Party), with the understanding, whether recorded in writing or otherwise, that the Company shall:-

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate
Beneficiaries) by or on behalf of the Funding Party ; or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.

(k) The company has used the borrowings from banks and financial institutions for the specific purpose for which it
was taken at the balance sheet date.

(m) The company has reclassified the previous year figures wherever necessary to conform to current year''s
classification.

As per our report of even date

For Mittal Goel & Associates For and on behalf of Board of Directors of

Chartered Accountants Stylam Industries Limited

FRN: 017577N

Sd/- Sd/- Sd/-

Sandeep Kumar Goel Jagdish Gupta Manit Gupta

Partner Managing Director Director

Membership No. : 099212 DIN- 00115113 DIN- 00889528

Place: Chandigarh Sd/- Sd/-

Date: 26.05.2025 Kishan Nagpal Dhiraj Kheriwal

UDIN: 25099212BMIYYL8794 CFO Company Secretary

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Mar 31, 2024

Under Shares Distribtution Scheme 6,575,711 No of shares (as on 31-03-2023 6,575,711 Nos) were allotted to the company. These shares are listed on Singapore Stock Exchange. As trading of shares is suspended these are considered as unquoted investment. When trading was suspended the share was valued at SGD 0.031 per share (as on 31-03-2019 SGD 0.031 per share), in the current year the value is written off as there is no market value exist for these shares.

** Under the Scheme 756,199 Nos of shares were allotted to Golden Chem-Tech Limited (as on 31-03-2023 756,199 Nos). Pursunat to approval of Scheme of Amalgamation by Hon''ble NCLT, Chandigarh Bench, all investments of Golden Chem-Tech Limited will be treated as investments of the company,in the current year the value is written off as there is no market value exist for these shares.

***The company has acquired 34% stake in Associate company. This company is engaged in to trading of commercial and industrial furnitures and fixtures.

Current earmarked bank balances represent deposits due for realisation within 3 months from the balance sheet date. These are primarily placed as margin money against issue of Letter of Credits.

6. Movement in deferred tax balances

Deferred Income tax reflect the net tax effects of temporary difference between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant component of the company''s net deferred income tax are as follows :-

(d) Terms/ rights attached to equity shares

a) The company has single class of shares referred to as equity shares having par value of H 5 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed, if any, by the Board of Directors, is subject to approval of the shareholders in the ensuing Annual General Meeting except in case of Interim Dividend. In the event of liquidation of the company, the equity shareholders are eligible to receive the surplus assets remaining after settlement of preferential amounts in proportion to their shareholding.

The unutilized accumulated excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

General reserve:

This represents appropriation of profit by the Company and is available for distribution of dividend.

Remeasurements of defined benefit obligation:

Remeasurements of defined benefit obligation comprises of gains and losses on acturial valuation on Post-employment benefits.

Terms of repayment of Non-Current and Current borrowings

1. Foreign Currency loan amounting to H 67.36 lakh (31st March 2023 256 lakh) was repayable in 69 monthly Instalments The repayment of the loan commenced from August 2019.

Terms of Security

All the loans are secured by first pari-passu charge, on movable fixed assets of the company, present and future, except vehicles, and immovable assets situated at manufacturing location of the company of 1) Industrial Area, Panchkula and ii) Manktabra , Distt, Panchkula. The security is further extended to shed in the name of Golden Chem-Tech limited at Mankya, Ramgarh, Panchkula

These loans are further secured by second pari-passu on entire current assets of the company, both present and future.

The composition of property, plant and equipment and current assets as mentioned above are defined in detail in the respective financing/credit arrangements

a Working capital facilities availed from State Bank of India, HDFC Bank Ltd and Standard Chartered Bank are secured by a first charge ranking pari-passu inter-se banks, on all current assets of the company, both present and future, wherever the same may be or be held and have a second charge ranking pari- passu on all movable and immovable fixed assets of the Company, present and future. Working capital facilities are repayable on demand.

b Working capital are availed in Indian rupees and in foreign currency which carry floating interest rate calculated in accordance with the terms of the arrangement which is a specified benchmark rate (reset at periodic intervals), adjusted for agreed spread.

The composition of property, plant and equipment and current assets as mentioned above are defined in detail in the respective financing/credit arrangements.

Refer note 32 for explanations on the Company’s liquidity risk management processes.

Amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises (MSME) Development Act, 2006” has been determined to the extent such parties have been identified on the basis of information available with the Company. The total outstanding H463.16 lakh as at the end of the year is Principal amount due to MSME.

Deferred Revenue Liability (Govt Grants)

i Deferred Revenue Liability (Govt Grants) relate to duty saved on import of capital goods and spares under the EPCG scheme. Under the scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Government grants related to these capital goods are recognised by deducting the grant from the carrying amount of property, plant & Equipment in which case the grant is recognised in profit and loss account as a reduction of depreciation charged.

ii During the year H32.34 lakh (2022-23: H13.97 lakh) was released from deferred income to the statement of profit and loss on fulfillment of export obligations.

Hedging instruments

The Company uses various derivative instruments such as foreign exchange forward contracts to hedge its exposures to movement in foreign exchange rates. These instruments are not used for speculative or trading purposes.

23. Contingent Liabilities And Commitments (Contd..) Details of dues to Micro and Small Enterprises as per MSMED Act 2006 H In lakh
	31-03-2024	31-03-2023
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year.
i) Principal amount due to micro and small enterprise	463.15	71.24
ii) Interest due on above		-
iii) The amount of interest paid by the buyer in terms of section 16 of the MSMED Act 2006 along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year.
iv) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act 2006.
v) The amount of interest accrued and remaining unpaid at the end of each accounting year.		-
vi) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006.

24. Financial Risk Management Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board with top management oversee the formulation and implementation of the Risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

a. credit risk

b. liquidity risk

c. market risk

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investments.

The carrying amount of financial assets represents the maximum credit risk exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company performs an on-going assessment and monitoring of the financial position and the risk of default. Based on the aforesaid checks, monitoring and historical data, the Company does not perceive any significant credit risk on trade receivables.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

The Company based on internal assessment which is driven by the historical experience/ current facts available, the management believes the strong opinion of recovery from trade receivables and where risk f defualt, if any, will be negligible and accordingly no provison for expected cash loss has been provided on trade receivables.

With regards to all other financial assets with contractual cash flows management believes these to be high quality assets with negligible credit risk. Thus, no provision for expected cash loss has been provided on these financial assets.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities.

The Company has mature liquidity risk management processes covering short-term, mid-term and long-term funding. Liquidity risk is controlled through maintaining sufficient reserves, adequate amount of committed credit facilities and loan funds.

Foreign exchange forward contracts is the difference between the booking rate and exchange rate at the balance sheet date, and not considered under financial obligation.

c. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates that will affect the Company’s income, assets, liabilites or expected cash flows. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are USD and EUR

The Company follows a natural hedge driven currency risk mitigation policy to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are taken, including but not limited to, entering into forward contracts.

Trade receivables include advance to suppliers for material and Capital advances.

Trade payables includes payable towards material and capital goods. It also includes advance from customers.

Sensitivity analysis

A reasonably possible strengthening /(weakening) of the EUR and USD against the functional currency at 31 March 2024 would have affected the measurement of financial exposure denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact on forecast sales and purchases.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

Sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

The Company’s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for its shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments to it as and when required. To maintain or adjust the capital structure, the Company plan either to raise fresh debt or to repay it, to raise fresh equity or sell those assets which have little contribution in the company''s overall performance, when to pay dividends etc.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

2 Defined Benefit Plans Grauity:

The Company has a defined benefit gratuity plan as per the provisions of the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity. The discount rate assumed is p.a. 7.42% (31 March 2023: 7.42% p.a.) which is determined by reference to market yield at the Balance Sheet

date on Government bonds. The retirement age has been considered at 58 years (31 March 2023: 58 years) and mortality table is as per IALM (2012-14)Ult (31 March 2023: IALM (2012-14)).

The estimates of future salary increases, considered in actuarial valuation is 6% p.a. (31 March 2023: 6% p.a.). The rate of attrition considered in actuarial valuation is 10% (31 March 2023: 10%)

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant.

a. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

b. Fair value for investments has been disclosed at fair value.

c. The fair values of long term borrowings are based on discounted cash flows using current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

d. The fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates at the balance sheet date

There are no transfers between level 1, Level 2 and Level 3 during the year ended 31 March 2024 and 31 March 2023.

The following explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard.

Notes:

Level 1: hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price and are valued using the closing NAV.

Level 2: hierarchy includes the fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) and the fair value is determined using valuation techniques which maximise the use of observable market

data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Currently, the Company does not have any such financial instruments.

34. Segment Reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the company falls within one broad business segment viz. “Laminates”. The Gross income and profit from the other segment is below the norms prescribed in Ind AS 108. Hence, the disclosure requirement of Ind AS 108 of ‘Segment Reporting’ is not considered applicable.

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Mar 31, 2023

Provision and contingent liabilities

A provision is recognised when the Company has a
present obligation as result of a past event and it is
probable that the outflow of resources will be required
to settle the obligation, in respect of which a reliable
estimate can be made. These are reviewed at each
balance sheet date and adjusted to reflect the current
best estimates.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made.

Contingent liabilities are not recognised in the financial
statements. Contingent assets are neither recognised
nor disclosed in the financial statements.

(l) Revenue recognition

The Company recognizes revenue when it satisfies
a performance obligation in accordance with the
provisions of contract with the customer. This is achieved
when control of the product has been transferred to
the customer, which is generally determined when
title, ownership, risk of obsolescence and loss pass to
the customer and the Company has the present right
to payment, all of which occurs at a point in time upon
shipment or delivery of the product. The Company
considers shipping and handling activities as costs to
fulfil the promise to transfer the related products and
the customer payments for shipping and handling costs
are recorded as a component of revenue.

Performance Obligation is achieved when:

i) the Company has transferred to the buyer the
significant risks and rewards of ownership of the
goods;

ii) the Company retains neither continuing managerial
involvement to the degree usually associated with
ownership nor effective control over the goods sold;

iii) the amount of revenue can be measured reliably;

iv) it is probable that the economic benefits associated
with the transaction will flow to the Company; and

v) the costs incurred or to be incurred in respect of
the transaction can be measured reliably.

- Sale of products

Revenue from sale of products is recognized when
the control on the goods have been transferred to the
customer. The performance obligation in case of sale
of product is satisfied at a point in time i.e., when the
material is shipped to the customer or on delivery to the
customer and there is no continuing effective control or
managerial involvement with the goods, and the amount
of revenue can be measured reliably.

Revenue from operations is disclosed net of GST.

Revenue from operations is adjusted with gain/ loss on
corresponding on foreign currency transactions related
to export.

- Government Grants

Export incentive entitlements are recognised as income
when there is reasonable assurance to receive that
company will comply with the conditions attached to
them and it is established that incentive will be received.

Government grants that compensate the Company for
expenses incurred are recognised in the statement of
profit and loss, as income or deduction from the relevant
expense, on a systematic basis in the periods in which
the expense is recognised.

- Other Income

Other income is accounted for on accrual basis as and
when the right to receive arises.

(m) Expenditure

Expenses are accounted on accrual basis.

(n) Employee benefits

The Company''s retirement benefit obligation is subject
to a number of judgement including discount rates,
inflation and salary growth. Significant judgement is
required when setting these criteria and a change in
these assumptions would have a significant impact on
the amount recorded in the Company''s balance sheet
and the statement of profit and loss. The Company sets
these judgements based on previous experience and
third party actuarial advice.

- Short-term employee benefits

Short-term employee benefits are expensed as the
related service is provided. A liability is recognised
for the amount expected to be paid if the Company
has a present legal or constructive obligation to pay
this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

- Defined contribution plans

Contributions to defined contribution schemes such
as provident fund, employees state insurance, labour
welfare fund, are charged as an expense in Profit and
loss account, based on the amount of contribution
required to be made as and when services are rendered
by the employees. These are classified as Defined
Contribution Schemes as the Company has no further
defined obligations beyond the monthly contributions.

- Retirement benefit obligations

Retirement benefit obligations are classified into defined
benefits plans and defined contribution plans as under:

Defined Gratuity Plans

The Company pays gratuity to the employees whoever
has completed five years of service with the Company
at the time of resignation/superannuation. The gratuity
is paid @15 days salary for every completed year of
service as per the Payment of Gratuity Act 1972.

The plan provides for a lump sum payment to vested
employees at retirement, death while in employment
or on termination of employment of an amount based
on the respective employee''s salary and the tenure
of employment. The liability in respect of Gratuity is
recognised in the books of accounts based on actuarial
valuation by an independent actuary.

Compensated absences

As per the Company''s policy, eligible leaves can be
accumulated by the employees and carried forward to
future periods to either be utilized during the service, or
encashed. Encashment can be made during service, on
early retirement, on withdrawal of scheme, at resignation
and upon death of the employee. Accumulated
compensated absences are treated as other long-term
employee benefits. The Company''s liability in respect
of other long-term employee benefits is recognised in
the books of account based on actuarial valuation using
projected unit credit method as at Balance Sheet date
by an independent actuary. Actuarial losses/gains are
recognised in the Statement of Profit and Loss in the
year in which they arise.

Actuarial valuation

The liability in respect of all defined benefit plans is
accrued in the books of account on the basis of actuarial
valuation carried out by an independent actuary using
the Projected Unit Credit Method, which recognises
each year of service as giving rise to additional unit of
employee benefit entitlement and measure each unit
separately to build up the final obligation. The obligation
is measured at the present value of estimated future

cash flows. The discount rates used for determining the
present value of obligation under defined benefit plans,
is based on the market yields on Government securities
as at the Balance Sheet date, having maturity periods
approximating to the terms of related obligations.

- Re-measurement

Benefit plans in respect of retirement benefits are
charged to the Other Comprehensive Income.

(o) Income Taxes

The tax expense for the period comprises current and
deferred tax. Tax is recognised in Statement of Profit
and Loss, except to the extent that it relates to items
recognised in the comprehensive income. In which
case, the tax is also recognised in other comprehensive
income or equity.

- Current tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted by
the end of the reporting period.

Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (i.e. in
other comprehensive income). Current tax items are
recognised in correlation to the underlying transaction
either in OCI or directly in equity. Management
periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax
regulations are subject to interpretation and establishes
provisions where appropriate.

- Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
bases used in the computation of taxable profit.

Deferred tax liabilities / assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities and assets
are reviewed at the end of each reporting period.

(p) Finance costs

Borrowing costs include exchange differences arising
from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing
costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised as part
of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready
for its intended use.

All other borrowing costs are charged to the Statement
of Profit and Loss for the period for which they are
incurred.

Interest free loan taken from promoters and others has
been derived on basis of fair value based on market rate
of interest prevailing when loan and derived to the total
tenure of loan. The interest for the period is charged to
the Statement of Profit and Loss.

(q) Foreign currencies transactions and translation

The Company''s financial statements are presented in
INR, which is also the Company''s functional currency.
Transactions in foreign currencies are initially recorded
by the Company at INR spot rate at the date the
transaction first qualifies for recognition. Monetary
assets and liabilities denominated in foreign currencies
are translated at the functional currency spot rates of
exchange at the reporting date. Exchange differences
arising on settlement or translation of monetary items
are recognized in profit or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions.

(r) Earnings per share

Basic Earnings per share (EPS) amounts are calculated
by dividing the profit for the year attributable to equity
holders by the weighted average number of equity
shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the
profit attributable to equity holders adjusted for the
effects of potential equity shares by the weighted
average number of equity shares outstanding during
the year plus the weighted average number of equity
shares that would be issued on conversion of all the
dilutive potential equity shares into equity shares.

(s) Business Combination

The company accounts for its business combinations
in the nature of Merger, wherein all the assets and
liabilities of the transferor company will become, after
amalgamation, the assets and liabilities of the transferee
company.

The consideration for the amalgamation receivable by
those equity shareholders of the transferor company
who agree to become equity shareholders of the
transferee company is discharged by the transferee
company wholly by the issue of equity shares in the
transferee company.

The business of the transferor company is intended to
be carried on, after the amalgamation, by the transferee
company.

No adjustment is to be made to the book values of the
assets and liabilities of the transferor company when
they are incorporated in the financial statements of
the transferee company except to ensure uniformity of
accounting policies.

(t) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The board of directors
of the Company has been identified as being the chief
operating decision maker by the Management of the
company. The Business activity of the company majorly
falls within one business segment viz “Laminates".

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Mar 31, 2018

1. Corporate Information

Stylam Industries Limited (“the Company”) is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its shares are listed on BSE Limited.

The Company is engaged in manufacturing and supply of High Pressure Laminates.

2. First Time Adoption of Ind AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassificd wherever required to comply with the requirement of Ind AS and Schedule III.

(i) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date.

(ii) Long Term Foreign Currency Monetary Items

The Company continues the policy of capitalising exchange differences arising on translation of long term foreign currency monetary items.

These arc the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of the opening Ind AS balance sheet at 1 April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘previous GAAP’ or ‘Indian GAAP’). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

3. Movement in deferred tax balances

Deferred Income tax reflect the net tax effects of temporary difference between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant component of the company’s net deferred income tax are as follows

Note:

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

(b) Terms/ rights attached to equity shares

a) The company has single class of shares referred to as equity shares having par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share^ The dividend proposed, if any, by the Board of Directors, is subject to approval of the shareholders in the ensuing Annual General Meeting except in case of Interim Dividend. In the event of liquidation of the company, the equity shareholders are eligible to receive the surplus assets remaining after settlement of preferential amounts in proportion to their shareholding.

a. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

b Fair value for security deposits has not been disclosed as there is no significant differences between carrying value and fair value,

c. The fair values of long term borrowings are based on discounted cash flows using current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

d. The fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates at the balance sheet date

There are no transfers between level 1, Level 2 and Level 3 during the year ended 31 March 2018 and 31 March 2017.

The following explains the judgments and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three levels prescribed under the accounting standard.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price and are valued using the closing NAV,

Level 2 hierarchy includes the fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) and the fair value is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Currently, the Company does not have any such financial instruments.

4. Financial risk management Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board with top management oversee the formulation and implementation of the Risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

a. credit risk

b. liquidity risk

c. market risk

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investments.

The carrying amount of financial assets represents the maximum credit risk exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company performs an on-going assessment and monitoring of the financial position and the risk of default. Based on the aforesaid checks, monitoring and historical data, the Company does not perceive any significant credit risk on trade receivables.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

The Company based on internal assessment which is driven by the historical experience/ current facts available, the management believes the strong opinion of recovery from trade receivables and where risk f default, if any, will be negligible and accordingly no provision for expected cash loss has been provided on trade receivables.

With regards to all other financial assets with contractual cash flows management believes these to be high quality assets with negligible credit risk. Thus, no provision for expected cash loss has been provided on these financial assets.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities.

“The Company has mature liquidity risk management processes covering short-term, mid-term and long-term funding. Liquidity risk is controlled through maintaining sufficient reserves, adequate amount of committed credit facilities and loan funds.

The contractual maturities of the Company’s financial liabilities are presented below: -

Foreign exchange forward contracts is the difference between the booking rate and exchange rate at the balance sheet date, and not considered under financial obligation.

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates that will affect the Company’s income, assets, liabilities or expected cash flows. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the Company is exposed to risk are USD and EUR

The Company follows a natural hedge driven currency risk mitigation policy to the extent possible. Any residual risk is evaluated and appropriate risk mitigating steps are taken, including but not limited to, entering into forward contracts.

Exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk as reported to the management of the Company is as follows:

Sensitivity analysis

A reasonably possible strengthening /(weakening} of the EUR and USD against the functional currency at 31 March would have affected the measurement of financial exposure denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact on forecast sales and purchases.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

Exposure to interest rate risk

The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows:

The following table provides a break-up of the Company’s fixed and floating rate borrowings:

Sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for floating rate liabilities assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 25 basis points higher / lower and all other variables were held constant, the Company’s profit before tax for the year ended 31 March 2018 would decrease / increase by Rs7.82 lakh (for the year ended 31 March 2017: decrease / increase by Rs.9.72 lakh}. This is mainly attributable to the Company’s exposure to interest rates on its variable rate borrowings,

5. Capital Management

Risk management

The Company’s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that its can continue to provide returns for its shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital,

The Company manages its capital structure and makes adjustments to it as and when required. To maintain or adjust the capital structure, the Company plan either to raise fresh debt or to repay it, to raise fresh equity or sell those assets which have little contribution in the company’s overall performance, when to pay dividends etc.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

Net debt {total borrowings net of cash and cash equivalents and other bank balances) and divided by Total ‘equity’

6 Employee benefits in respect of the Company have been calculated as under:

1 Defined Contribution Plans

The Company has certain defined contribution plan such as provident fund and employee state insurance wherein specified percentage is contributed to them. During the year, the Company has contributed following amounts to

2 Defined Benefit Plans Gratuity:

The Company has a defined benefit gratuity plan as per the provisions of the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity. The discount rate assumed is 8% p.a. (31 March 2017: 7% p.a.; 1 April 2016: 8% p.a) which is determined by reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at 58 years (31 March 2017: 58 years; 1 April 2016: 58 years) and mortality table is as per IALM (2006-08) (31 March 2017: IALM (2006-08); 1 April 2016: IALM {2006-OS)).

The estimates of future salary increases, considered in actuarial valuation is 5% p.a. (31 March 2017: 5% p.a. ; 1 April 2016: 5% p.a,). The rate of attritation considered in actuarial valuation is 10% (31 March 2017:10%; 1 April 2016:10%)

Reconciliation of opening and closing balances of the present value of the defined benefit obligation

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant.

7 Sensitivity analysis

The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant.

8 Related Party Disclosures

Key Management Personnel (KMP) and their relatives

As per Ind AS 24, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

Smt, Usha Gupta has resigned from board on 09” May 2017, thereafter her status has been categorised under Relative of KMP

Transactions during the year with related parties

9 Contingent liabilities to the extent not provided for:

Guarantees

Outstanding guarantees furnished by Banks on behalf of the Company is Rs.4.50 Lakh (31 March 2017: 0.50 lakh; 1 April 2016: 0.50 lakh)

Claims against Company, disputed by the Company, not acknowledged as debt

Commitments as at year end

Capital Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 4226.00 lakh (31 March 2017: Rs.410.00 lakh; 1 April 2016: Rs. 2170 00 lakh).

Other Commitments:

Export obligation under Advance License Scheme on duty free import of specific raw materials, remaining outstanding is Rs 17,511.05 lakh,

Export obligation under EPCG License Scheme on duty free import of Capital Goods, remaining outstanding is Rs.3,600.54 lakh.

Government grant recoverable Rs.321,30 lakh (31 March 2017: Rs.368.54 lakh; 1 April 2016: Rs.403,43 lakh) and Government grant recognized Rs.47.25 lakh (31 March 2017: Rs.34.88 lakh) in Statement of Profit and Loss.

Hedging instruments

The Company uses various derivative instruments such as foreign exchange forward contracts to hedge its exposures to movement in foreign exchange rates. These instruments are not used for speculative or trading purposes.

The following are the outstanding derivative contracts entered into by the Company:

Mark to market loss amounting to Rs, 121.80 lakh (31 March 2017: Nil) in respect of forward contract have been charged to the Statement of Other Comprehensive Income.

10. First time adoption of Ind AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind A5

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of the opening Ind AS balance sheet at 1 April 2016 {the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘previous GAAP’ or ‘Indian GAAP’). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions

Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangibl e assets at their previous GAAP carrying value.

Ind AS mandatory exceptions Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP

Reconciliations between Previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Statement of Cash flows

Other than effect of certain reclassifications due to difference in presentation, there was no other material effect of cash flow from operating, financing, investing activities for all periods presented.

Note i: Re-measurements of post-employment benefit obligations

Under Ind AS, re-measurements i.e. actuarial gains and losses on the net defined benefit obligation are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit before tax for the year ended March 31, 2017 decreased by Rs. 32.64 lakh. The liability on basis of actuarial valuation is revised and corresponding adjustment to retained earnings for the period as at 1 April 2016 and 31 March 2017.

Note ii: Re-classification of cost of spares

Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with Ind AS 16 when they meet the definition of property, plant and equipment. During financial year 2016-17, company has estimated and attributed expenses for Rs.298.44 lakh in carrying value of property, plant and equipment and has charged depreciation on the same. This increased the retained earnings by Rs.283.38 lakh.

Note iii: Recognition of Government grants

As per ind AS 20, Government assistance to be treated as Grants relating to asset and is recognised in the profit & loss on a rational basis over the useful life of the asset. Company has recognised assistance under EPCG scheme under government grant and has recognised amount of Rs.37.94 lakh for the year ended March 31, 2017. Consequently the total equity has increased by Rs.23.84 lakh.

Note iv: Re-classification of processing charges

Under previous GAAP, ancillary costs associated with raising of funds are amortised on a straight line basis over the period of borrowings. Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Also under Ind AS borrowings are presented net of any ancillary costs associated with raising of debt, while under previous GAAP such ancillary costs were shown as prepayments. During financial year 2016-17, amount of Rs.9.24 lakh has been recognised under profit & loss account.

Note v: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes change in fair value of investments which are classified at fair value through OCI and remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP,

Note vi: Deferred taxes

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP,

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

Note vii: Revenue recognition

The company has recasted its sales for financial year 2016-17 in terms of Ind AS IS where the revenue to be measured with respect to fair value of considereation receivable., The sale for the period is reduced by Rs.41.89 lakh. There is no impact on profit and equity for the period.

Note viii: Interest free loan

The interest free loan from promoter and others is measured in accordance with Ind AS 109, Financial Instruments, at amortized cost using the effective interest rate method. The loan liability is trued up every year to build up a liability over the period of the loan with a corresponding charge to Statement of Profit and loss on account of finance charge. The benefit of the interest free loan is measured as the difference between initial carrying value of the loan at fair value in accordance with Ind AS 109 and the loan amount received. The same is classified as a government grant and is being amortised using the effective interest rate method, and is being reduced from finance costs.

Note ix: Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 1,881.30 lakh. There is no impact on the total equity and profit,

Note x: Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments,

Note xi: Exceptional items

Exceptional items have been reclassified to the respective heads to conform to Ind AS classifications.

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Mar 31, 2016

* Term Loan for IT Building financed by Kotak Mahindra Bank Ltd, is secured by first charge on immovable and movable property, both present and future, at Plot No. 19, Sector-22, Information Technology Park, Panchkula, and second charge on the fixed assets at Plot No.192-193, Industrial Area, Phase-I, Panchkula. HDFC Bank Ltd has sanctioned for take-over of Term Loan. The take-over will complete in next Financial Year. The Term Loan has been sanctioned against the first charge on immovable and movable property, both present and future, at Plot No. 19, Sector-22, Information Technology Park, Panchkula.

Term Loan taken for expansion of capacity at Manaktabra Distt. Panchkula and outstanding amount of Term Loan taken in 2012 is secured by mortgage & first charge on the immovable and movable properties of the company, both present and future, at Plot No.192-193, Industrial Area, Phase-1,Panchkula. The Term Loans are also secured by exclusive charge on land at Manaktabra, Raipur Rani, Distt. Panchkula and second charge on immvoable property at Plot No. 19, Sector-22,

Information Technology Park, Panchkula.

Term loans are further secured by personnel guarantee of the promoter/directors of the company.

* Finance of vehicles are secured by hypothecation of particular vehicle.

1. Segment reporting:

Company''s operations predominantly comprise of only one segment i.e. Laminates.

2. Contingent Liabilities and commitments to the extent not provided for

A. Contingent Liabilities

Guarantees given to Bank in respect of Bills Discounting facility- Rs.42.74 Lacs (Previous Year Rs.157.16 Lacs) Letter of credit established but material not received amounting to Rs 239.40 Lacs

B. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.2170.00 lacs (Previous Year Rs 715.00 Lacs)

C. Disputed Demands

Disputed Demand of Statutory Dues in Appeal with Income Tax Authorities Rs 114.18 Lacs (Previous Year Rs.15.70 Lacs)

See accompanying notes forming part of the financial statements_

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Mar 31, 2015

Not Available

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Mar 31, 2014

1.1 Related Party Disclosures

As per Accounting Standard 18, tie disclosures of transactions with the related party are given below: i. Key Management Persone;

S-No. Name of Related Party Relationship

1 M/s Golden Chemtech Private Limited Enterprises over which Key Managerial Personnel are able to exercise significant influence

2 M/s Amravati Infrastructure Developers Ltd Enterprises over which Key Managerial Personnel are able to exercise significant influence

3 M/s Evershine Recreation Private Ltd Enterprises over which Key Managerial Personnel are able to exercise significant influence

5 M/s Zeal Exim Private Limited Enterprises over which Key Managerial Personnel are able to exercise significant influence

4 Mr. Jagdish Gupta (Managing Director) Key Managerial Personnel & Their relatives

5 Mrs. Usha Gupta (Wife of Managing Director) Key Managerial Personnel & Their relatives

6 Mr. Manit Gupta (Son of Managing Director) Key Managerial Personnel & Their relatives

7 Mr. Satish Gupta (Executive Director) Key Managerial Personnel & Their relatives

8 Mrs. Pushpa Gupta (Wife of Executive Director) Key Managerial Personnel & Their relatives

9 Mr. Manav Gupta (Director) Key Managerial Personnel & Their relatives

1.2 Segment reporting:

Company''s operations predominantly comprise of only one segment Le. Laminates.

1.3 Contingent Liabilities and commitments to the extent not provided for A. Contigent Liabilities

i) Other Money for which the company is contigently liable Liability in respect of bills discounted with banks

a. In respect of Export bills Rs. 1,76,41,338/- b.ln respect of Domeslic bills Rs. 55,61,2941-

B. Capital contracts pending execution

i) Estimated amount of contracts remaining to be executed on capital account and not provided for:

a. The company has started the construction of rr Project Building at Panchkula. The further estimated capital commitment for the projects is Rs.667.78 Lakh

C. Disputed Demands

a Disputed demand raised by income tax authorities for the AY 2009-10 Rs.16,62,460 out of which company has deposited Rs.8,31,230 and has appealed against the orders with Income Tax Appelant Tribunal.

b. Disputed demand raised by income tax authorities for the AY 2010-11 Rs.10,24,950/-, company has filed appeal with CIT (Appeal) against the order of Income tax department.

c. Disputed demand raised by income tax authorities for the AY2011-12 Rs.2,04,750/-, company has filed appeal wilh CIT (Appeal) against die order of Income tax department.

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Mar 31, 2012

The company has availed Term Loan-I and amount outstanding as on 31st March, 2012 is USD 6,92,655 equivalent Rs. 3,53,25,401 which repayable in ten quarterly in equal installments being last installment in July 2014 . The repayments due during the next financial year has been shown under the current maturities of Long term debt grouped under Other Current Liabilities equivalent Rs. 1,41,30,161. The foreign currency loan has been secured by way of first charge of fixed assets of the company and further guaranteed by Mr.Jagdish Gupta and Mr.Satish Gupta, the promoter directors of the company by way of their personal guarantees. ( Ref. Note No.7)

The company has availed Term Loan-II which is repayable in ten equal installments starting September 2011 and last installment to be paid in December 2013and the outstanding as on 31st March 2012 is Rs.4,60,50773. The repayments due during the next financial year Rs.2,60,00,000 has been shown under the current maturities of Long term debt grouped under Other Current Liabilities. The corporate loan is secured by way of first charge on the fixed assets of the company and further guaranteed by Mr.Jagdish Gupta and Mr.Satish Gupta, the promoter directors of the company by way of their personal guarantees. ( Ref. Note No.7)

The company has availed Term Loan-III which is repayable in twelve equal installments starting June 2012 and last installment to be paid in March 2014 and the outstanding as on 31st March 2012 is Rs.1,50,65,562. The repayments due during the next financial year Rs.50,00,000 has been shown under the current maturities of long term debt grouped under Other Current Liabilities. The corporate loan is secured by way of first charge on the fixed assets of the company and further guaranteed by Mr.Jagdish Gupta and Mr.Satish Gupta, the promoter directors of the company by way of their personal guarantees. ( Ref. Note No.7)

The company has availed vehicles loans and the amount the amount outstanding as on 31st March 2012 is Rs.56,72,303. The repayments due during the next financial year Rs.26,45,759 has been shown under the current maturities of long term debt grouped under Other Current Liabilities. The vehicle loan is secured by way of hypothecation of the respective vehicle against which the loan is taken. ( Ref. Note No.7)

* Income tax paid under appeal is 50% of the demand for Assessment Year 2009-10 Rs.16,62,460 raised by income tax authorities. The appeal is lying with Income Tax Tribunal, Chandigarh.

** The company has taken Vat Input Credit against the material used for the construction of building for its IT Project in Panchkula Technology Park.

Notes:

1. Company's operations predominantly comprise of only one segment i.e. Laminates. The figures shown above relate to that segment only.

2. Business segments have been identified on the basis of the nature of products/ services, the risk and return profile of individual business, the organisational structure and the internal reporting system of the company.

3. Reportable segments have been identified as per the quatitative criteria specified " Accounting Standard-l7 Segment Reporting" issued by the Instuitue of Chartered Accountants of India.

27.8 Contingent Liabilities and commitments to the extent not provided for

a. Export bills discounted with banks Rs. 2,55,10,289

b. Letter of credit issued by bank on behalf of the company Rs.6,51,10,626

c. Capital contracts pending execution : The company has started the construction of building at Panchkula Technology Park. The estimated further project cost is Rs.281375000 out of which the company has already done capital expenditure of Rs.28960922. The capital commitment of the IT Project is around Rs.25,24,14,078. Further capital commitents in the laminate business are Rs.51,71,130.

d. Disputed demand raised by income tax authorities for the AY 2009-10 Rs.16,62,460 out of which company has already deposited Rs.8,31,230 and company has gone in appeal against the Income Tax department.

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Mar 31, 2010

1. Contingent Liabilities and Commitments: (Rs.- Lacs)

31.03.2010 31.3.2009

(a) Capital Contract Pending Execution NIL NIL

(b) Contingent Liabilities

- Letter of Credit (Import) 400.06 255.07

- Export Bills negotiated under

Letter of Credit - 47.60

(c) Disputed demand raised by Income Tax Department against which

Company has gone on Appeal 155.26 155.26

2. Interest was capitalized in Fixed Assets Building & Furniture & Fixtures by Rs.58,20,840/- & Rs.1,25,340/- respectively and till Financial year 2008-09 capitalized interest was written off in General Reserve by Rs.202,350/ - each year and the remaining amount of Rs.33,15,629/- has been reversed through General Reserve during the current financial year 2009-10.

3.In the opinion of the Board of Directors, Current Assets and Loans & Advances are approximately of the value stated in the balance sheet, realized in the ordinary course of business and to the best of their knowledge; provisions for all known liabilities have been made.

4.Certain balances appearing under Current Assets, Loans & Advances and Current Liabilities are subject to their confirmation.

5. Prior Period Adjustments include Freight Subsidy Income of Rs. 10 Lacs for the financial year 2007-08 & interest on FDR of Rs.1500/-. And Prior Period Expenses include Rs.51655/-Cenvat on Excise Duty reversed under protest in earlier years.

6. Security Deposit others includes the amount of Rs. 1.50 Lacs deposited as Bail surety in the Honorable District Court of Rohtak.

7. Misc. Income of Financial Year 2009-10 includes Interest Subvention of Rs. 1014653/- 8. The exact liabilities of Excise, Sales Tax and Income Tax are indeterminate pending finalization of respective Assessments.

8. Related Party Transactions:

Name of the related parties with whom transaction were carried out during the year and Description of transactions:

Entities over which control is exercised Amravati Infrastructure Developers Limited

Sister Concern:

Golden Chem-Tech Ltd.

Teji Brar Financial Services Ltd

Subsidiary Company:

Golden Net Soft Pvt. Ltd.

Key Management Personnel & their relatives:

1. Mr. Jagdish Gupta (Managing Director)

Mrs. Usha Gupta (Wife)

2. Mr. Satish Gupta (Executive Director)

Mrs. Pushpa Gupta (Wife)

3. Mrs. Rattan Devi (Mother of Managing Director & Executive Director)

ii) Disclosure of Related Party Transactions:

9. Segment reporting:

Information about Business Segments (Information provided in respect of revenue items for the year- ended 31.03.2010 and in respect of assets/liabilities as at 31.03.2010

10. Deferred Tax

10.1. In Accordance with AS-22 "Accounting For Taxes on Income" issued by ICAI, the net Decrement in Deferred tax liability of Rs. 2417246/- for the financial year 2009-10 has been transferred to P & L Account.

10.2. Deferred tax is recognized on timing differences between the accounting income & taxable income for the year & quantified using the tax rates & laws enacted or substantively enacted as on the Balance Sheet date.

10.3. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The managerial remuneration paid has been duly approved by Board of Directors of the Company and is in conformity with the provisions of Schedule XIII of the Company Act. 1956.

11. Sundry Creditors:

On the basis of information available with the Company, there are no known small scale undertaking to whom the Company owes a sum exceeding Rs. 1 Lac which is outstanding for more than 30 days at the balance sheet date.

12. Additional information pursuant to the provisions of paragraph 3 & 4 of part II of Schedule VI of the Companies Act. 1956

13. Previous year figures are re-grouped/ re-arranged, wherever considered necessary.

14. Figures are rounded off to the nearest rupee.