1. CORPORATE INFORMATION:
Keltech Energies Ltd. is a public Company domiciled in India and is incorporated under the provisions of the Companies
Act applicable in India. Its equity shares are listed in BSE Limited, Mumbai. The registered office of the Company is
located at 7th Floor, No.3, Embassy Icon, Infantry Road, Bengaluru - 560001 and principal place of business are disclosed
in the introduction to the annual report. The Company is principally engaged in the manufacture of Industrial Explosives
and Sale of Perlite & Perlite based products.
2. BASIS OF COMPLIANCE, BASIS OF PREPARATION, CRITICAL ACCOUNTING ESTIMATES,
ASSUMPTIONS AND JUDGEMENTS AND MATERIAL ACCOUNTING POLICY INFORMATION
2.1 Basis of Compliance:
These financial statements of the Company comprise, the balance sheet, the statement of profit and loss (including
other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of the material accounting policies and other explanatory
information (herein referred to as “Financial Statements”).
The financial statements comply in all material aspects with Indian Accounting Standards (‘Ind AS') notified under
Section 133 of the Companies Act, 2013 (Act') read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015, as amended and other relevant provisions of the Act.
2.2 Basis for preparation and presentation:
The financial statements have been prepared on accrual basis and in accordance with the historical cost convention
unless, otherwise stated;
All amounts disclosed in the Financial Statements and notes have been rounded off to the nearest lakhs as per the
requirement of Schedule III, unless otherwise stated;
The Financial Statements of the Company for the year ended 31st March, 2025 were approved for issue in accordance
with a resolution of the Board of Directors in its meeting held on 23rd May, 2025
2.3 Use of Judgement and Estimates
The preparation of the Financial Statements requires management to make estimates, assumptions and judgments
that affect the reported amounts of revenue, expenses, assets and liabilities and accompanying disclosures along with
contingent liabilities as at the date of the Financial Statements;
The estimates and associated assumptions are based on historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates considering different assumptions and conditions;
Estimates and underlying assumptions are reviewed on an ongoing basis.Changes in estimates and judgements are
refectled in the financial statements in the period in which chages are made and, if material, their effects are disclosed
in the notes to the financial statements;
Detailed information about each of these estimates and judgments is included in relevant notes together with
information about the basis of calculation for each affected line item in the financial statements.
• Estimates of useful lives and residual value of Property, Plant and Equipment and intangible assets. - Refer note no. 2.4
• Measurement of Defined Benefit Obligations - Refer note no.14;
• Measurement and likelihood of occurrence of Provisions and contingencies - Refer note no.14 and 30;
• Recognition of deferred tax assets - Refer note no.6;
• Determining the amount of expected credit loss on financial assets (including trade receivables - Refer note no.26;
• Measurement of Lease liabilities and Right of Use Assets - Refer note no.35;
• Leases- Determining lease term and the incremental borrowing rate - Refer note no.2.14
2.4 Property, plant and equipment:
Recognition and measurement
Property, plant and equipment are stated at original cost net of tax / duty credit availed,and any directly attributable
costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs
and any expected costs of decommissioning, less accumulated depreciation and accumulated impairment losses, if
any. When a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment
as replacement if the recognition criterion is satisfied.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for
as separate items (major components) of property, plant and equipment.
Subsequent Measurement
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the
expenditure will flow to the Company.
Depreciation:
Details of useful life considered for depreciation are provided below.
Derecognition
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The consequential gain or loss is measured as the difference
between the net disposal proceeds and the carrying amount of the item and is recognized in the statement of profit and
loss.
2.5 Capital work in progress:
Capital work-in-progress includes cost of property, plant and equipment under installation / under development as
at the balance sheet date. These are stated at cost to date relating to items or project in progress, incurred during
construction / preoperative period. Advances given towards acquisition or construction of PPE outstanding at each
reporting date are disclosed as Capital Advances under “Other non-current Assets”.
2.6 Intangible assets:
Intangible assets, identifiable non-monetary asset without physical substance are recognised when it is probable that
the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can
be measured reliably.
Intangible assets comprising of “Computer Software” are recorded at acquisition cost and are amortized overthe
estimated useful life on straight line basis. Estimated useful life of software is assessed to be 3 years.
Technical Know-how has been fully depreciated during the year.
2.7 Inventories:
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on Weighted
Average Cost basis, and includes expenditure incurred in acquiring the inventories, production or conversion costs
and other costs incurred in bringing them to their present location and condition. Costs incurred in bringing each
product to its present location and condition are considered for as follows:
• Raw materials, Work-in-Progress, Stock- in- transit, packing materials, Stores and spares have been valued at cost,
arrived on weighted average method.
• Traded goods,finished goods and stock kept for services have been valued at lower of cost and net realisable value.
• Cost of finished goods includes direct material, freight and forwarding and apportion of manufacturing overheads
based on normal operating capacity and is determined on a weighted average basis.
• Cost of traded goods includes Cost of Purchase and other direct costs incurred and is determined on a first in first
out basis.
• Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.
2.8 Foreign currency transactions:
The Company's financial statements are presented in INR, which is also the Company's functional currency.
Transactions in foreign currencies are recorded on initial recognition in the fuctional currency, using the exchange rate
prevailing on the date of transaction. At each balance sheet date, foreign currency monetary items are reported using
the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each
balance sheet date of the Company's monetary items at the closing rate are recognised as income or expenses in the
period in which they arise.
2.9 Financial instruments:
Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are
initially recognised when the Company becomes a party to the contractual provisions of the instrument.
A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit
and loss (‘FVTPL), transaction costs that are directly attributable to its acquisition or issue.
Financial assets - Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at
• Amortised cost;
• FVOCI - Equity investment; or
• FVTPL
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in the investment's fair value in OCI (designated as FVOCI - equity investment). This
election is made on an investment-by-investment basis. At present there are no such investments.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent measurement and gains and losses for financial assets held by the Company:-
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to
present subsequent changes in the investment's fair value in OCI (designated as FVOCI - equity investment). This
election is made on an investment-by-investment basis. At present there are no such investments.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial
asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial liabilities: Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if
it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities
at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or
loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also
recognised in the statement of profit and loss. Presently, all the financial liabilities are measured at amortised cost.
Derecognition
Financial Assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains
substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet but retains either all
or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.
Financial liabilities:
The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
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 intends either to settle them
on a net basis or to realise the asset and settle the liability simultaneously.
2.10 Impairment of non-financial assets:
Non-financial assets other than inventories and deferred tax assets are reviewed at each Balance Sheet date to
determine whether there is any indication of impairment. If any such indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset's recoverable amount. The recoverable amount is
higher of the assets or Cash-Generating Units (CGU's) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or group of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
Impairment of financial assets:
The Company assesses impairment based on expected credit losses (ECL) model to the following:
• Financial asset measured at amortized cost
• Financial asset measured at fair value through other comprehensive income
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