1. General Information:
M/s. Polyspin Exports Limited, CIN No.
L51909TN1985PLC011683, (PEL or the Company) is a Public
Limited Company incorporated in India. The Company shares
are listed in BSE Limited and the Scrip Code is 539354. The
address of the Registered Office is 351, P.A.C.R. Salai,
Rajapalayam - 626 117, Tamilnadu.
The Company was incorporated in the year 1985 and the
commenced commercial production during the year 1990. The
Company is engaged in Manufacture of FIBC Bags, Fabric, PP
Yarn, Multifilament Yarn, etc., with an installed capacity of
10,800 MTS per annum. The Company's FIBC bags are
primarily exported to U.S.A, Europe and African Countries.
The company, during the month of June of Financial year
2023-24 had permanently closed the operations of Textile
division. The sale process of the plant and machineries has
been completed in the month of September 2024. Necessary
disclosures for the details of Assets and sale proceeds as per
the Accounting standards are made by the company.
These financial statements were approved for issue by the
board of directors of the Company on 29th May, 2025.
2.1 Statement of Compliance:
These financial statements have been prepared in
accordance with the Indian Accounting Standards (“IND AS”)
prescribed under section 133 of the Companies Act, 2013
("the Act") read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 as amended from time
to time.
2.2: Basis of Preparation:-
These financial statements have been prepared on the
historical cost basis except for certain financial instruments
and defined benefit plans that are measured at fair values at
the end of each reporting period, as explained in the
accounting policies below. Historical cost is generally based on
the fair value of consideration given in exchange for goods and
services.
Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of
whether that price is directly observable or estimated using
another valuation technique. In measuring fair value of an
asset or liability, the Company takes into account those
characteristics of the asset or liability that market participants
would take into account when pricing the asset or liability at the
measurement date.
In addition, for financial reporting purposes fair value
measurements are categorized into level 1,2 or 3 based on the
degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as
follows:¬
- Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity can
access at the measurement date.
- Level 2 inputs, other than quoted prices included within
Level 1 that observable for the asset or liability, either
directly or indirectly: and
- Level 3 inputs are unobservable inputs for the asset or
liability.
Functional and presentational currency:
These financial statements are presented in Indian Rupee
(INR) which is also the functional Currency.
Rounting off amounts:
All amounts disclosed in the financial statements have been
rounded off to the nearest rupees in lakhs as per the
requirements of schedule III of the Act, unless otherwise
stated.
Use of Estimates and Judgements:-
The preparation of Financial Statements in conformity with
IND AS requires the management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from
these estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates
are revised and in any future period affected. Information about
critical judgements in applying accounting policies that have
the most significant effect on the amounts recognized in the
financial statements is included in the accounting policies and /
or the notes to the financial statements.
2.3 Current versus Non-Current Classification:-
The Company presents assets and liabilities in the Balance
Sheet based on Current / Non-Current classification. An asset
is treated as current when it is:¬
- Expected to be realized or intended to be sold or
consumed in the normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the
reporting period; or
- Cost or cost equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.
All other assets are classified as Non-Current
A Liability is current when:
- It is expected to be settled in the normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the
reporting period; or
- There is no unconditional right to defer the settlement of
the liability for at least twelve months after the reporting
period.
All other liabilities are classified as Non-Current
The Company has deemed its operating cycle as twelve
months for the purpose of Current / Non-Current classification.
The financial statements are presented in Indian Rupees,
which is functional currency, rounded to the nearest Lakhs
with two decimals. The amount below the round off norm
adopted by the company is denoted as Rs. 0.00 Lakhs.
2.4 Revenue Recognition
Revenue is measured at the fair value of consideration
received or receivable.
a. Sale of Goods
Revenue from sale of goods is recognized when the Company
has transferred to the buyer the significant risks and rewards
of ownership of the goods, it no longer retains control over the
goods sold, the amount of revenue can be measured reliably, it
is probable that the economic benefits associated with the
transaction will flow to the Company and the cost incurred or to
be incurred in respect of the transaction can be measured
reliably. Sale of goods is recognized but net of other taxes
collected on behalf of third parties.
b. Power generated from Windmill
Power generated from windmill that are covered under
wheeling and Banking arrangement with TANGEDCO and the
same were consumed at factories. The monetary values of
such power generated that are captively consumed are not
recognized as revenue for the Company.
c. Power generated from solar power Plant
Power generated from the solar power plant are transferred
directly to the grid and such transferred power is adjusted by
TANGEDCO in the monthly power Bill. The monetary values of
such power generated that are adjusted by TANGEDCO are
not recognized as the revenue.
d. Scrap Sale
Scrap sale is recognized at the fair value of consideration
received or receivables upon transfer of significant risk and
rewards. It comprises of invoice value of goods excluding
applicable taxes on sale.
e. Dividend Income
Dividend Income from investment in shares of corporate
bodies is accounted when the Company's right to receive
the dividend is established.
f. Interest Income
Interest income from a financial asset is recognized when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time proposition
basis, by reference to the principal outstanding and the effect
interest rate applicable, which is the rate exactly discounts
estimated future cash receipts through the expected life of
financial assets to that assets net carrying amount on initial
recognition.
2.5 Property, Plant and Equipment
Property, Plant and Equipment are stated at cost less
accumulated depreciation / amortization and impairment
losses if any, except freehold land which is carried at cost. Cost
comprises of purchase price, import duties, levies and any
attributable cost of bringing the assets on its working condition
for the intended use.
For transition to IND AS, the Company has elected to continue
the carrying value of all of its property, plant and equipment
recognized as at 1st April, 2016 (IND AS transition date)
measured as per the previously applicable Indian GAAP and
used that carrying value as its deemed cost as at the IND AS
transition date.
When each major expenses on fixed assets, day to day
repair and maintenance expenditure and cost of replacing
parts that does not meet the capitalization criteria in
accordance with IND AS 16 are charged to statement of
Profit and Loss for the period during which such expenses
are incurred.
The Company identifies the significant parts of plant and
equipment separately (which are required to be replaced at
intervals) based on their specific useful lives. The cost of
replacement of significant parts are capitalized and the
carrying amount of replaced parts are derecognized.
PPEs eliminated from the financial statements on disposal or
when no further benefit is expected from its use and disposal.
Gains or losses arising from disposal, measured as the
difference between the net disposal proceeds and the
carrying amount of such assets are recognized in the
statement of Profit and Loss. Amount received towards
PPE that are impaired and derecognized in the financial
statements are recognized in statement of Profit and Loss,
when the recognition criteria are met.
Depreciation is recognized so as to write off the cost of assets
(other than freehold land and property under construction)
less their residual value, over their useful lives. The estimated
useful lives, residual value and depreciation method are
reviewed at the end of each reporting period, with the effect of
any changes in estimate accounted for on a prospective
basis.
Depreciation for PPE on additions is calculated on pro rata
basis from the date of such additions. For deletion / disposals,
the depreciation is calculated on pro rata basis up to the date
on which such assets have been discarded / sold.
Capital work in progress includes cost of property, plant and
equipment under installation, under development including
related expenses and attributable interest as at the reporting
date.
2.6 Investment Property
The Company does not have any investment property as on
the Balance Sheet date. Hence there is no disclosure as
per the requirements of IND AS 16.
2.7 Intangible Assets
Intangible Assets are recognized when the asset is identifiable
is within the control of the Company, it is probable that the
future economic benefits that are attributable to the asset will
flow to the Company and cost of the asset can be reliably
measured.
Intangible assets are amortized over their estimated useful
life on straight line method. The estimated useful lives of
intangible assets are assessed by the internal technical team.
It's accounting classification is given below:-
1. Nature of intangible assets - Computer Software
2. Estimated Useful life - 3 Years
3. Amoritization of intangible Assests - Computer Software
4. Accounting Classification - Depreciation & Amotization
For transition to IND AS, the Company has elected to
continue with the carrying value of all its intangible assets
recognized as at IND AS transition date measured as per
the previously applicable Indian GAAP and use that carrying
value as its deemed cost as at the IND AS transition date.
2.8 Inventories
Inventories are valued at the lower of cost and net realizable
value.
Cost of Raw materials, Stores and Spares, Fuel, Packing
Materials, etc., are valued at cost, computed on moving
weighted average basis including the cost incurred in bringing
the inventories to their present location or net realizable
value whichever is lower.
Process Stock and Finished Goods are valued at moving
weighted average cost including the cost of conversion
and other costs incurred in bringing the inventories to the
present location and condition.
Net realizable value is the estimated selling price in the
ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the
sale.
2.9 Cash Flow Statement
Cash Flows are presented using indirect method, whereby
profit / (Loss) before tax is adjusted for the effects of
transaction of non-cash nature and accruals of post or future
cash transaction. Cash comprise cash on hand and demand
deposits with banks. Cash equivalents are short term balance
with original maturity of less than 3 months, highly liquid
investments that are readily convertible into cash
2.10 Borrowing Costs
Borrowing Costs include interest expense calculated using
the effective interest rate method, other costs incurred in
connection with borrowing of funds and exchange
differences to the extent regarded as an adjustment to the
interest costs.
Borrowing Costs that are directly attributable to the
acquisition, construction or production of a qualifying assets
(net of income earned on temporary deployment of funds)
are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.
All other borrowing costs are recognized as an expense in
the period in which they are incurred.
A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use or
sale.
2.11 Financial Assets
Financial Assets comprises of Investments in Equity, Trade
Receivables, Cash and Cash Equivalents and Other Financial
Assets.
Classification
The Company classifies Financial Assets as subsequently
measured at Amortized Cost, Fair Value through Other
Comprehensive Income (FVTOCI) or Fair Value through Profit
or Loss (FVTPL) on the basis of its business model for
managing the Financial Assets and the contractual cash
flows characteristics of the financial assets.
Initial Recognition and Measurement
All financial assets are recognized initially at fair value plus,
in the case of financial assets not recognized at the fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Subsequent measurements of financial assets are dependent
on initial categorization. For impairment purposes, significant
financial assets are tested on an individual basis and other
financial assets are assessed collectively in groups that share
similar credit risk characteristics.
Financial Assets are measured at amortized cost when
asset is held within a business model, whose adjective is to
hold assets for collecting contractual cash flows and
contractual terms of the assets give rise, on specified dates, to
cash flows that are solely payments of principal and interest.
Such financial assets are subsequently measured at
amortized cost using the effective interest rate method. The
losses arising from impairment are recognized in the
statement of Profit and Loss. This category generally applies
to trade and other receivables.
a. Financial assets measured at fair value through
other comprehensive income (FVTOCI)
Financial assets under this category are measured initially as
well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive
income.
b. Financial assets measured at fair value through
profit or loss (FVTPL)
Financial assets under this category are measured initially as
well as at each reporting date at fair value with all changes
recognized in profit or loss. Company's Current Investments in
equity shares are measured at FVTPL.
c. Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk of
change in value with a maturity within three months or less from
the date of purchase, to be cash equivalents. Cash and cash
equivalents consist of balances with banks which are
unrestricted for withdrawal and usage.
De-recognition of Financial Assets
A Financial Asset is primarily derecognized when the rights
to receive cash flows from the asset have expired or the
company has transferred its rights to receive cash flows from
the asset.
2.12 Financial Liabilities
Financial Liabilities comprises of Borrowings from banks,
Trade Payables, Derivative Financial Instruments, Financial
Guarantee Obligation and Other Financial Liabilities.
Classification
The Company classifies all financial liabilities as subsequently
measured at amortized cost, except for financial liabilities
at fair value through profit or loss. Such financial liabilities
including derivatives that are liabilities, shall be subsequently
measured at fair value.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for
trading, if they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments that are not designated as hedging
instruments in hedge relationships as defined by IND AS
109 - “Financial Instruments”. Separated embedded
derivatives are also classified as held for trading unless
they are designated as effective hedging instruments.
Financial liabilities measured at amortised cost
After initial recognition, interest bearing loans and borrowings
are subsequently measured at amortised cost using the
EIR method except for those designated in an effective
hedging relationship.
Amortized Cost is calculated by taking into account any
discount or premium and fees or costs that are an integral part
of the EIR. The EIR amortization is included in finance costs in
the statement of profit and loss. Any difference between the
proceeds (Net of transactions costs) and the redemption
amount is recognized in Profit or Loss over the period of the
borrowings using the EIR method.
Fees paid on the establishment of loan facilities are
recognized as transaction costs of the loan to the extent
that it is probable that same or all of the facility will be drawn
down.
Trade and Other Payables
A payable is classified as 'Trade Payable' if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. These amounts
represent liabilities for goods and services provided to the
Company prior to the end of financial year, which are unpaid.
They are recognized initially at their fair value and
subsequently measured at amortized cost using the EIR
method.
De-recognition of Financial Liabilities
A Financial Liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. The
difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party
and the consideration paid, including any non-cash assets
transferred or liabilities assumed is recognized in profit or loss
as other income or finance assets.
2.13 Impairment
i. Financial Assets
The Company recognizes loss allowances if only, using
the expected credit loss (ECL) model for the financial assets
which are not fair valued. Loss allowance for trade receivables
with no significant financing component is measured at an
amount equal to life time ECL. For all other financial assets,
ECL is measured at an amount equal to the 12 month ECL.
Unless there has been a significant increase in credit risk from
initial recognition, in which case, those are measured at life
time ECL. The amount of expected credit losses (or reversal)
that is required to adjust the loss allowance at the reporting
date to the amount that is required to be recognized, is
recognized as an impairment gain or loss in the statement of
profit and loss.
ii. Non - Financial Liabilities
The carrying values of assets include property, plant and
equipment, cash generating units and intangible assets are
reviewed for impairment at each Balance Sheet date, if there is
any indication of impairment based on internal and external
factors.
Non-financial assets are treated as impaired when the carrying
amount of such asset exceeds its recoverable value. After
recognition of impairment loss, the depreciation for the said
assets is provided for remaining useful life based on the
revised carrying amount, less its residual value if any, on
straight line basis.
An impairment loss is charged to the statement of Profit and
Loss in the year in which an asset is identified as impaired.
An impairment loss is reversed when there is an indication
that the impairment loss may no longer exist or may have
decreased.
2.14 Foreign Currency Transaction and Translation
Transactions in foreign currencies are translated to the
functional currency of the Company (i.e. INR) at exchange
R
rates at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at the reporting
date, except for those derivative balances that are within
the scope of IND AS - 109. “Financial instruments” are
translated to the functional currency at the exchange rate at
that date and the related foreign currency gain or loss are
reported in the statement of Profit and Loss.
Foreign Exchange differences regarded as an adjustment to
interest costs are recognized in the Statement of Profit and
Loss. Realized or unrealized gain in respect of the settlement
or translation of borrowing is recognized as an adjustment to
interest cost to the extent of the loss previously recognized as
an adjustments to the interest cost.
2.15 Employee Benefits
Employee Benefits in the form of Provident Fund & Employee
State Insurance are defined contribution plans. The Company
recognizes contribution payable to a defined contribution
plan as an expense, when an employee renders the related
services.
The Company contributes monthly at 12% of employees'
basic salary to Employees Provident Fund & Employees
Pension Fund administered by the Employees Provident Fund
Organization, Government of India. The Company has no
further obligations.
Gratuity Liability and Leave Encashment Liability are defined
benefit plans. The cost of providing benefit under the defined
benefit plans is determined using the projected unit credit
method, with actuarial valuations being carried out at the end of
each annual reporting period. The Company has its own
approved Gratuity Fund with LIC Group Gratuity cash
accumulations scheme and the contribution to that fund are
being made to LIC.
The Leave Encashment entitlement is computed on
calendar year basis and payment made to the Employees
accordingly in the succeeding January of every year.
Hence, there is no outstanding liability towards Leave
Encashment.
Re-measurements of the net defined benefit liability / asset
comprise:-
1. Actuarial Gains and Losses;
2. The return on plan assets, excluding amounts included
in net interest on the net defined benefit liability / asset;
and
3. Any change in the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability / asset.
Reimbursements of net defined benefit liability / asset are
charged or credited to Other Comprehensive Income.
Investment in Associate
An Associate is an entity over which the Company has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions
of the investee but is not control or joint control over those
polices.
Investments in Associate are carried at cost. The cost
comprises price paid to acquire investment and directly
attributable cost.
For transition to IND AS, the Company had elected to
continue with the carrying value of its investment in Associate
recognized as the transition date, measured as per the
previously applicable Indian GAAP and used that carrying
value as its deemed cost as at the transition date.
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