vii. Cash flow statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non -cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, financing and investing activities of the Company are segregated.
The Company has extended an unsecured loan to Diadem Enterprises Private Limited for Rs. 2,27,00,000/- at an interest rate of 10% p.a. and the company received back Rs. 77,00,000/-during the financial year 2013-14 and Rs.50,00,000/- during the financial year 2024-2025, The balance as on 31st March2025 is Rs. 1,00,00,000/-. The unsecured loan is payable on demand and the company got confirmation letter from M/s. Diadem Enterprises Private Limited.
xi. Segment Reporting:
Company is operating in a single segment, i.e., trading in packaging material. Hence disclosure of Segment information is not applicable.
xii.
a) Financial Risk Management - Objectives and Policies:
The Company's financial liabilities comprises of Trade Payables while financial assets comprise of Trade Receivables, Cash and Cash Equivalents, Bank Balances other than Cash and Cash Equivalents. The company has financial risk exposure in the form of credit risk and liquidity risk. The risk management policies of the Company are monitored by the Board of Directors. The present disclosure made by the Company summarizes the exposure to the Financial Risks.
(b) Credit Risk Management:
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit Risk arises primarily from financial assets such as trade receivables, bank balances and other balances with banks. The credit risk arising from the exposure of investing in other balances with banks and bank balances is limited and there is no collateral held against these because the counter parties are banks.
(c) Liquidity Risk Management:
Liquidity Risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity Risk may result from an inability to sell a financial asset quickly to meet obligations when due. The Company's exposure to liquidity risk arises primarily form mismatches of maturities of financial assets and liabilities.
The Company manages liquidity risk by
(i) maintaining adequate and sufficient cash and cash equivalents
(ii) making available the funds from realizing timely maturities of financial assets to meet the obligations when due.
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