Standards / amendments issued but not yet effective:
Ministry of Corporate Affairs (“MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended 31 March 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and lease back transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.
Terms/rights attached to equity shares
The company has only one class of equity shares having a face value of ? 2 each. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
b) There are numerous interpretative issues relating to the Honorable Supreme Court judgment on Provident Fund dated 28.02.2019. As a matter of caution, the Company has made a provision on a prospective basis from the date of the said order. The Company will update its provision, on receiving further clarity on the subject.
*A demand of ? 9.02 Lakhs of Tax Deducted at Source was raised against the company by Deputy Commissioner of Income Tax, Delhi for the Financial Year 2011-12 vide order dated 25.03.2019. Company has filed an appeal against the said order with Commissioner of Income Tax (Appeals).
# Pending resolutions of the respective proceedings, it is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgments/decisions pending with the various forums/authorities.
c) During the year ended 31 March 2021, the company have received a claim for ? 502.34 lakhs(Net of charge of ? 0.11 lakhs) against a claim lodged for of ? 510.55 lakhs. Further the company have raised another claim to insurance company through legal notice dated 29 May 2021 for ? 219.59 lakhs including ? 95.44 lakhs for interest on delay in claim settlement as per Insurance Regulatory and Development Authority (IRDA) norms and ? 124.15 lakhs for excess deduction of stock. The company has also moved a petition to Delhi High Court for appointment of an arbitrator.
29. SEGMENT REPORTING/ DISAGGREGATION OF REVENUE
The Chief Operating Decision Maker, being the Chairman and Managing Director in the Company evaluates the company's performance and allocates resources based on an analysis of various performance indicators by business segments and geographical segments. The Company's financial reporting is organised into three major operating divisions viz. Greeting Cards, Stationery and Paper Bag Items, Gifts and Others. These divisions are the basis on which the company is reporting its primary segment information as follows:-
(iii) Notes to Segment information
Segment Revenue and Expense
Joint Revenues and Expenses are allocated to the business segments on a reasonable basis to the extent possible.
Segment Assets and Liabilities
Segment Assets include all Operating Assets used by Segment.S egment Liabilities include all Operating Liabilities.
Capital Employed
Due to the nature of business and common manufacturing facilities for various Segments, a reasonable allocation of Capital Employed to various Segments is currently not practicable.
Carrying amount of Trade Receivables, Cash and Cash Equivalents, Other Financial Assets, Borrowings (Current), Trade Payables and Other Financial Liabilities as at 31 March 2025 and 31 March 2024, approximate the fair value due to their nature. Carrying amount of Security Deposits and Borrowings (Non-Current) which are subsequently measured at amortised cost also approximate the fair value due to their nature in each of the period presented. Fair value measurement of lease liabilities is not required.
Fair Value Hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Financial Risk Management Financial risk factors
The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance.
Market Risk
The company is exposed to foreign currency risk through its sales and purchases from overseas suppliers in US Dollar. The exchange rate between the rupee and US Dollar has changed substantially and may fluctuate substantially in the future. Consequently, the results of the Company's operations are affected as the rupee appreciates / depreciates against
US Dollar.
For each of the years ended 31 March 2025 and 31 March 2024, every percentage point depreciation/appreciation in the exchange rate between the Indian rupee and US Dollar, has affected the Company's incremental operating margins by
approomatel;, f'.f'lo.. and 0.03% respectively.
Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional currency, due to exchange rate fluctuations between the previous reporting year and the current reporting year.
Credit Risk
Credit risk, refers to the risk of default on its obligation by the customers resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ? 790.45 lakhs and ? 797.96 lakhs as at 31 March 2025 and 31 March 2024, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the Company through sale contract with customers and continuously monitoring the ageing of outstanding balance of customers to which the Company grants credit of 0-60 Days in the normal course of business. The Company uses the expected credit loss model as at each year end to assess the impairment loss or gain. No single customer accounted for more than 10% of the (a) Accounts receivable and (b) Revenues as at 31 March 2025 and 31 March 2024, respectively. There is no significant concentration of credit risk.
(a) Financial assets for which loss allowance is measured using 12 month expected credit losses.
The company has assets where the counter-parties have sufficient capacity to meet the obligation and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.
(b) Financial assets for which loss allowance is measured using life-time expected credit losses as per simplified
approach.
The company has customer with capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 60 days are still collectable in full, based on historical payment behavior and extensive analysis of customer credit risk. Impairment loss of ? 1.72 lakhs and ? 6.18 lakhs as at 31 March 2025 and 31 March 2024 has been recognised during the reporting periods in
respect of trade receivables.
Liquidity Risk
The company's principal sources of liquidity are cash and cash equivalents and the cash flows that is generated from operations. The company has taken working capital loans from banks for its working capital requirement. The company believes that the working capital is sufficient to mitigate its liquidity risk. Accordingly, no liquidity risk is perceived.
As at 31 March 2025, the Company had a working capital of ? 3,000.36 lakhs including cash and cash equivalents of ? 45.69 lakhs. As at 31 March 2024, the Company had a working capital of ? 3,077.30 lakhs including cash and cash
equivalents of ' 14.29 lakhs.
3 3. CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to equity holders of the company. The primary objective of the company's capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in lights of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to Shareholders or issue of new shares. The company monitors Capital using a gearing ratio, which is net debt, divided by total capital plus net debt. Net Debt of the company includes total borrowings
less cash and cash equivalents.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the total borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the current year.
No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2025
and 3 1 March 2024.
34. Operating Lease
The Company has entered into Operating Lease arrangements for premises. Lease payments recognised in the Statement of Profit and Loss under Noncancellable Operating Leases in respect of these assets is ? 240.29 Lakhs (31 March 2024, ? 238.09 Lakhs) which includes contingent rents of ? 63.24 Lakhs (31 March 2024, ? 67.47 Lakhs).
Leases payments received (or receivable) recognised in the statement of profit and loss ? 24.43 Lakhs (31 March 2024 ? 10.97
Lakhs).
36. Additional Regulatory Information
(i) All immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in name of the Company as at 31 March 2025 and as at 31 March 2024.
(ii) There is charge of ? 2710.00 lakhs on companies assets as at 31 March 2025 on account of Fund Based/Non Fund Based limits raised from Kotak Mahindra Bank Ltd and ICICI Bank Ltd. The limits from Kotak Mahindra Bank Ltd. has been reduced from ? 1321.00 lakhs to ? 910.00 lakhs, the modification of charge on the assets of the company in respect of this reduction
has yet not been filled and registered.
(iii) The quarterly returns / statement of current assets filed by the company with Kotak Mahindra Bank Ltd and ICICI Bank Ltd. are in agreement with the books of accounts.
(iv) The company has not been declared as a wilful defaulter by any bank or financial institution or any other lender.
(v) The company has used the borrowings from Kotak Mahindra Bank Ltd and ICICI Bank Ltd. for the financial year ended 31 March 2025 and 31 March 2024 for working capital purposes.
(vi) The company does not have any intangible assets in it's books of accounts as at 31 March 2025 and 31 March 2024, hence fair valuation of intangible assets is not applicable.
(vii) During the financial year ended 31 March 2025 and 31 March 2024 the Company does not have any relationship with Struck off Companies and the corresponding balances are Nil as at 31 March 2025 and 31 March 2024.
(viii) The provisions of clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,
2017 are not applicable to the company.
(ix) No scheme of Arrangements has been approved by competent authority in terms of sections 230 to 237 of the Companies Act,2013 in respect of the Company.
(x) No funds 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 or entity, including foreign entities (“Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
No funds have been received by the Company from any person or entity, including foreign entity (“Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(xi) The Company has not recorded any transaction in the books of accounts during the year ended 31 March 2025 and 31 March 2024 that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961.
(xii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended
3 1 March ;0;5 and 3 1 March 20;4.
(xiii) The provisions of Section 135 of the Companies Act, 2013 relating the Corporate Social Responsibility (CSR) are not
applicable to the company.
(xiv) The company does not hold any Invetsment Property in its books of accounts as at 31 March 2025 and 31 March 2024 hence fair valuation of investment property is not applicable.
(xv) The company has revalued a class of its Property, Plant and Equipment i.e. Land during the year. The revaluation is based on the valuation by a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Further, no other class of Property, Plant and Equipment (including Right-of-Use Assets) has been revalued
during the year.
(xvi) The company has not granted any loans or advances to Promoters, Directors, KMP's and other related parties that are repayable on demand or without specifying any terms or period of repayment.
(xvii) No proceedings have been initiated or pending against the company under the Benami Transactions (Prohibition) Act,1988 during the financial year ended 31 March 2025 and 31 March 2024.