1.3.19 Provisions, Contingent Liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If
the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability.
Disclosure of contingent liability is made 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 embodying
economic benefits will be required to settle or a reliable estimate of amount cannot be made.
1.3.20 Events after Reporting Date
Where events occurring after the Balance Sheet date provide evidence of condition that existed at the
end of reporting period, the impact of such events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
1.3.21 Non - Current Assets Held For Sales
Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and sale is considered highly probable.
A sale is considered as highly probable when decision has been made to sell, assets are available for
immediate sale in its present condition, assets are being actively marketed and sale has been agreed or
is expected to be concluded within 12 months of the date of classification.
Non-current assets held for sale are neither depreciated nor amortised.
Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and
fair value less cost of sale and are presented separately in the Balance Sheet.
1.3.22 Cash Flows Statement
Cash Flows Statements are reported using the method set out in the Ind AS - 7, "Cash Flow
Statements", whereby the Net Profit / (Loss) before tax is adjusted for the effects of the transactions of
a Non-Cash nature, any deferrals or accrual of past or future operating cash receipts or payments and
item of income or expenses associated with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company are segregated.
1.3.23 Cash and Cash Equivalents
Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short¬
term, highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
1.3.24 (A) Amendments to Schedule III cffomp,EniRsAct,2013
On 24 March, 2021, the Ministry of Corporate Affairs ("MCA") through a notification, amended
Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and
are applicable from 1 April, 2021. Key amendments relating to Division II which relate to companies
whose financial statements are required to comply with Companies (Indian Accounting Standards)
Rules 2015 are:
Balance Sheet:
• Lease liabilities should be separately disclosed under the head 'financial liabilities', duly distinguished
as current or non-current.
• Certain additional disclosures in the statement of changes in equity such as changes in equity share
capital due to prior period errors and restated balances at the beginning of the current reporting
period.
• Specified format for disclosure of shareholding of promoters.
• Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress
and intangible asset under development
• If a company has not used funds for the specific purpose for which it was borrowed from banks and
financial institutions, then disclosure of details of where it has been used.
• Specific disclosure under 'additional regulatory requirement' such as compliance with approved
schemes of arrangements, compliance with number of layers of companies, title deeds of immovable
property not held in name of company, loans and advances to promoters, directors, key managerial
personnel (KMP) and related parties, details of benami property held, etc.
Statement of profit and loss:
• Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and
crypto or virtual currency specified under the head 'additional information' in the notes forming part of
standalone financial statements.
(B) Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022,
MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from
1st April, 2022 as below:
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the
identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in
the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual
Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These
changes do not significantly change the requirements of Ind AS 103. The Company does not expect the
amendment to have any significant impact in its financial statements.
Ind AS 16 - Proceeds before intended use
The amendments mainly prohibit an entity from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the company is preparing the asset for
its intended use. Instead, an entity will recognize such sales proceeds and related cost in profit or loss.
The Company does not expect the amendments to have any impact in its recognition of its property,
plant and equipment in its financial statements.
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract
The amendments specify that that the 'cost of fulfilling' a contract comprises the 'costs that relate
directly to the contract'. Costs that relate directly to a contract can either be incremental costs of
fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that
relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does
not expect the amendment to have any significant impact in its financial statements.
Ind AS 109 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the '10 percent' test of Ind AS
109 in assessing whether to derecognize a financial liability. The Company does not expect the
amendment to have any significant impact in its financial statements.
1.4 Critical Accounting Judgments and Key Sources of Estimation Uncertainty:
The preparation of the Company's Financial Statements requires management to make judgment, estimates
and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in next financial years.
1.4.1 Income Tax
The Company's tax jurisdiction is in India. Significant judgments are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the income tax provisions, including the
amount expected to be paid / recovered for uncertain.
1.4.2 Property Plant and Equipment/ Intangible Assets
Estimates are involved in determining the cost attributable to bringing the assets to the location and
condition necessary for it to be capable of operating in the manner intended by the management.
Property, Plant and Equipment/Intangible Assets are depreciated/amortised over their estimated useful
life, after taking into account estimated residual value. Management reviews the estimated useful life
and residual values of the assets annually in order to determine the amount of depreciation/
amortisation to be recorded during any reporting period. The useful life and residual values are based
on the Company's historical experience with similar assets and take into account anticipated
technological changes. The depreciation/amortisation for future periods is revised if there are
significant changes from previous estimates.
1.4.3 Defined Benefits Obligations
The costs of providing Gratuity and other post-employment benefits are charged to the Statement of
Profit and Loss in accordance with Ind AS - 19, "Employee Benefits" over the period during which
benefit is derived from the employees' services. It is determined by using the Actuarial Valuation and
assessed on the basis of assumptions selected by the management. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These
assumptions include salary escalation rate, discount rates, expected rate of return on assets and
mortality rates. Due to complexities involved in the valuation and its long term in nature, a defined
benefit obligation is highly sensitive to change in these assumptions. All assumptions are reviewed at
each balance sheet date.
1.4.4 Fair value measurements of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques, including the discounted cash flow model, which involve various judgments and
assumptions.
1.4.5 Recoverability of Trade Receivables
Judgments are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating
of the counterparty, the amount and timing of anticipated future payments and any possible actions
that can be taken to mitigate the risk of non-payment.
1.4.6 Provisions
The timing of recognition and quantification of the liability (including litigations) requires the
application of judgment to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
1.4.7 Impairment of Financial and Non - Financial Assets
The impairment provisions for Financial Assets are based on assumptions about risk of default and
expected cash loss rates. The Company uses judgment in making these assumptions and selecting the
inputs to the impairment calculation, based on Company's past history, existing market conditions as
well as forward-looking estimates at the end of each reporting period.
In case of non-financial assets company estimates asset's recoverable amount, which is higher of an
asset's or Cash Generating Units (CGU's) fair value less costs of disposal and its value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are
taken into account, if no such transactions can be identified, an appropriate valuation model is used.
1.4.8 Recognition of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax
losses for which there is probability of utilisation against the future taxable profit. The Company uses
judgment to determine the amount of deferred tax that can be recognised, based upon the likely timing
and the level of future taxable profits and business developments.
Note - 34 - Financial Instruments
Financial Risk Management - Objectives and Policies
The Company's financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade and other
payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's financial assets comprise mainly of investments,
security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.
The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.
The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The general
conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management
principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk
awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk
management system aims to identify, assess, mitigate the risks in order to minimize the potential adverse effect on the Company's financial performance.
The following disclosures summarize the Company's exposure to the financial risks and the information regarding use of derivatives employed to manage the
exposures to such risks. Quantitative Sensitivity Analysis has been provided to reflect the impact of reasonably possible changes in market rate on financial
results, cash flows and financial positions of the Company.
(*) Investment in subsidiaries are measured at cost as per Ind AS 27, "Separate financial statements”, and hence not presented here.
(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying values as the management has assessed that
there is no significant movement in factor such as discount rates, interest rates, credit risk from the date of the transition. The fair values are assessed by the
management using Level 3 inputs.
(***) The financial instruments measured at FVTPL represents current investments and derivative assets having been valued using level 2 valuation hierarchy.
Fair value hierarchy
The fair value of financial instruments as referred to in note below has been classified into three categories depending on the inputs used in the valuation
technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority
to unobservable inputs [Level 3 measurements].
The categories used are as follows:
Level 1: Quoted prices for identical instruments in an active market
Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or
valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor arethey
based on available market data.
B. Market Risk
Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market Risk comprises
three types of Risk: " Interest Rate Risk, Currency Risk and Other Price Risk". Financial instrument affected by the Market Risk includes loans and borrowings in
foreign as well as domestic currency, retention money related to capital expenditures, trade and other payables.
(a) Interest Rate Risk
Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of changes in market interest rates. An upward
movement in the interest rate would adversely affect the borrowing cost of the Company. The Company is exposed to long term and short - term borrowings.
The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate
balance. The Company has not used any interest rate derivatives.
C. Credit Risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and
cash equivalents, trade receivables and other Financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other
counterparties and incorporates this information into its credit risk controls.
The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments
with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputsand factors
specific to the class of financial assets. (i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.
Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments
within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differencesbetween
(i) Cash and cash equivalent and bank balance:
Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in
different banks.
(ii) Loans and Other financial assets measured at amortized cost:
Other financial assets measured at amortized cost includes Security Deposit to various authorities , Loans to staff and other receivables. Credit risk related to
these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place
ensure the amounts are within defined limits.
(iii) Trade receivables:
Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is
considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit
loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation
of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances
are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.
(b) Expected credit losses:
Expected credit loss for trade receivables under simplified approach:
The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a simplified approach, wherein Company has defined
percentage of provision by analyzing historical trend of default based on the criteria defined below and such provision percentage determined have been
considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss
against the amount recoverable is provided for). Further, the Company has evaluated recovery of receivables on a case to case basis. No provision on account of
expected credit loss model has been considered for related party balances. The Company computes credit loss allowance based on provision matrix. The
provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward - looking estimate. The
provision matrix at the end of reporting period is as follows:
D. Liquidity Risk
Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are
settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company
takes into account the liquidity of the market in which the entity operates.
Financing arrangements:
The Company has no short term or long term borrowing facilities for the Financial Year ended 31st March, '23. Hence, the undrawn borrowing facilities at the
end of reporting period is not applicable to the company
Maturities of Financial Liabilities:
The tables below analyze the Company's financial liabilities into relevant maturity based on their contractual maturities for all non-derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of
discounting is not significant. As per Annexure A attached herewith.
E. Capital Management
The Company's capital management objectives are to ensure the company's ability to continue as a going concern, to provide an adequate return to share
holders
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.
Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This
takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and makes adjustments to it in
the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company
may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
Note - 35 - Balance confirmation of Receivables
Confirmation letters have not been obtained from all the parties in respect of Trade Receivable, Other Non- Current Assets and Other Current Assets.
Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.
Note - 36 -Balance Confirmation of Payables
Confirmation letters have not been obtained from all the parties in respect of Trade Payable and other current liabilities. Accordingly, the balances of the
accounts are subject to confirmation, reconciliation and consequent adjustments, if any.
Note - 37 - Events occurring after the Balance sheet Date
The Group evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the
necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized
or reported that are not already disclosed.
Note -38 - Additional regulatory information
A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
reements are duly executed in favour of the lessee) are held in the name of the Company.
B) The Company does not have any investment property.
C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible
assets.
D) There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are
outstanding as on 31 March '24:
(i) repayable on demand; or
(ii) without specifying any terms or period of repayment
E) No proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder
F) The company is not declared willful defaulter by any bank or financial institution or other lender.
G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.
H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013.
I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
undrstanding (whether recorded in writing or otherwise) that the Intermediary shall 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
J) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the
Income Tax Act, 1961. There are no such previously unrecorded income or related assets.
L) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
M) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility is not
applicable to the Company during the period.
Note -39 - Previous year's figures have been regrouped, reclassified wherever necessary to correspond with the
current year classification / disclosure.
B Debt-Equity Ratio (in times)
As increase in Long Term Borrowing in current year, However Reserve and surplus in current year leading to increase in
Debt Equity Ratio.
D Return on Equity Ratio (in %)
Due to decrease in Net Profit in current year from previous year, Return on Equity Ratio increased.
E Inventory Turnover Ratio ( In times)
As Purchase of Stock in trade & Cost of Material Consumed decreased in current year, Cost of Goods sold has decreased.
However Average Inventory has been increased in current year resulting into decrease in Inventory Turnover from 8.95
times to 4.08 times.
F Trade Receivables turnover ratio (In times)
Due to substantial fall in Sales Revenue as compared to previous year . As a result Trade Recievable Turnover decreased
by 37.78%.
G Trade payables turnover ratio (In times)
Due to substantial fall in Purchases and Incidental Expenses as compared to previous year . As a result Trade Payable
Turnover decreased by 35.78%.
H Net capital turnover ratio (In times)
Due to substantial fall in Sales Revenue as compared to previous year . Also Net Working Capital is decreased as a result
Net capital turnover ratio decreased by 40.55%.
I Net profit ratio (in %)
Net Profit decreased as compared to previous year. However also there is substantial fall in Sales Revenue, resulting into
increase in Net Profit Ratio to 510.71%.
J Return on Capital employed (in %)
As Earning decreased in current year, Return on Capital Employed decreased.
K. Return on investment (in %)
Due to substantial increase in invested fund. As a result Return on investment decreased.
As per report of even date For, G. K. P. Printing & Packaging Limited,
For, Keyur Shah & Co.
F.R. No: 141173W
Chartered Accountants
Keval Harshad Goradia Payal Keval Goradia
Keyur Shah Director Director
Proprietor DIN: 07295358 DIN: 08101269
M.No.153774
Pooja Harshad Goradia Arushi Vinay Lakhotia
Chief Financial Officer Company Secretary
PAN: AJDPG6013H PAN: AKIPL9017E
Date :- 27th May, '24 Date :- 27th May, '24
Place :- Ahmedabad Place :- Ahmedabad
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