CORPORATE INFORMATION
PCBL Chemical Limited (Formerly PCBL Limited) (the
“Company”) (CIN: L23109WB1960PLC024602) is a public
company limited by shares domiciled in India and is
incorporated under the provisions of the Companies Act
applicable in India. The Company is primarily engaged in
the business of manufacturing & sale of carbon black and
sale of power. Equity shares of the Company are listed on
BSE Limited and National Stock Exchange of India Limited.
The registered office of the Company is located at Duncan
House, 31, Netaji Subhas Road, Kolkata 700001, West
Bengal, India.
These standalone financials statements were approved
for issue in accordance with resolution of the Board of
Directors on 30 April, 2026.
I. Basis of Preparation and Material Accounting
Policy Information
1.1.1. Compliance with Ind AS
These standalone financial statements comply in
all material respects with the Indian Accounting
Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 (the ‘Act') [Companies (Indian
Accounting Standards) Rules, 2015] (as amended
from time to time) and other relevant provisions of
the Act. These standalone financial statements has
also been prepared in compliance with presentation
requirement of Division II of Schedule III of the
Companies Act, 2013 (IND AS Compliant Schedule III)
(as amended from time to time) as applicable to the
standalone financial statements.
These standards and policies have been consistently
applied to all the years presented, unless otherwise
stated. The standalone financial statements are
presented in Indian Rupee (^), which is the Company's
functional and presentation currency. The Company
has prepared the financial statements on the basis
that it will continue to operate as a going concern.
1.1.2. Historical cost convention
These standalone financial statements have been
prepared on a historical cost basis, except the
following, which are measured at fair values:-
i) Certain financial assets and liabilities (including
derivative instruments);
ii) Plan assets of defined benefit employee benefit
plans
1.1.3. Current versus Non-current Classification
The Company segregates assets and liabilities
into current and non-current categories for
presentation in the balance sheet after considering
its normal operating cycle and other criteria set out in
Ind AS 1, “Presentation of Financial Statements”. For
this purpose, current assets and liabilities include the
current portion of non-current assets and liabilities
respectively.
Deferred tax assets and liabilities are always classified
as non-current.
The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
and cash equivalents. The Company has identified
period up to twelve months as its operating cycle.
1.2. Impairment of non-financial assets
Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying
amount of the assets may not be recoverable. An
impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the
higher of an asset's fair value less costs of disposal and
value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current
market assessment 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. For the purpose of assessing
impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash
inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash¬
generating units).
1.3. Other financial assets (other than Investments)
1.3.1. Classification
The Company classifies its financial assets in the
following measurement categories:
a) those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and
b) those measured at amortised cost.
The classification depends on the Company's
business model for managing the financial
assets and the contractual terms of cash flows.
For assets measured at fair value, gains and
losses is either recorded in the statement of
profit and loss or other comprehensive income.
1.3.2. Measurement
At initial recognition, the Company measures a
financial asset at its fair value plus, in the case of
financial asset not at fair value through profit or loss,
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or
loss are expensed in the statement of profit and loss.
However, trade receivables that does not contain a
significant financing component are measured at
transaction price.
(a) Debt instruments
Subsequent measurement of debts instruments
depends on the Company's business model
for managing the asset and the cash flow
characteristics of the asset. There are two
measurement categories into which the
Company classifies its debt instruments:
Amortised cost: Assets that are held for
collection of contractual cash flows where
those cash flows represent solely payments
of principal and interest are measured at
amortised cost. Amortised cost is calculated by
taking into account any discount or premium on
acquisition and fees or costs that are an integral
part of the Effective Interest Rate (EIR). The EIR
amortisation is included in finance income in
the profit or loss.
Fair value through profit or loss: Assets that do
not meet the criteria for amortised cost or Fair
value through Other comprehensive income (
FVTOCI ) are measured at fair value through profit
or loss.
1.3.3. Impairment of financial assets
The Company assesses on a forward looking basis,
the expected credit losses associated with its
assets carried at amortised cost and FVTOCI debt
instruments. The impairment methodology applied
depends on whether there has been a significant
increase in credit risk. Note 29 details how the
Company determines whether there has been a
significant increase in credit risk.
1.3.4. Derecognition of financial assets
A financial asset is derecognised only when
• The rights to receive cash flows from the asset
have expired
• The Company has transferred the rights to
receive cash flows from the financial asset or
• retains the contractual rights to receive the
cash flows of the financial asset but assumes a
contractual obligation to pay the cash flows to
one or more recipients.
Where the Company has transferred an asset, the
Company evaluates whether it has transferred
substantially all risks and rewards of ownership
of the financial asset. In such cases, the financial
asset is derecognised. Where the Company has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is
not derecognised.
The financial asset is derecognised if the Company
has not retained control of the financial asset. Where
the Company retains control of the financial asset, the
asset is continued to be recognised to the extent of
continuing involvement in the financial asset.
1.3.5. Fair value of Financial Instruments
In determining the fair value of financial instruments,
the Company uses a variety of methods and
assumptions that are based on market conditions
and risks existing at each reporting date. The methods
used to determine fair values includes discounted
cash flow analysis and available quoted market
prices. All methods of assessing fair values result in
general approximation of fair values and such value
may never actually be realised.
1.4. Derivatives Instruments
The Company enters into certain derivative contracts
to hedge risks, which are not designated as hedges.
Derivatives are recognised at fair values on the date
a derivative contract is entered into and subsequent
fair value changes are recognised in the statement of
profit and loss at the end of each reporting period.
1.5. Offsetting financial instruments
Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle on a
net basis or realise the asset and settle the liability
simultaneously. The legally enforceable right must
not be contingent on future events and must be
enforceable in the normal course of business and in
the event of default, insolvency or bankruptcy of the
Company or the counterparty.
1.6. Foreign currency transactions and translation
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the date of the transactions. At the year end,
monetary assets and liabilities denominated in
foreign currencies are restated at the year-end
exchanges rates. Foreign exchange gains and losses
resulting from the settlement of such transactions
and from the translation of monetary assets and
liabilities denominated in foreign currencies at year
end exchange rates are generally recognised in the
statement of profit and loss.
Foreign exchange differences regarded as an
adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs.
All other foreign exchange gains and losses are
presented in the statement of profit and loss on a net
basis within other income/ other expense.
Non-monetary items that are measured at fair value in
a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain
or loss.
1.7. Rounding of amounts
All amounts disclosed in the standalone Financial
Statements and notes have been rounded off to the
nearest Crores (with two places of decimal) as per the
requirement of Schedule III, unless otherwise stated.
1.8. Standard issued but not effective
There are no standards issued but not effective up
to the date of issuance of the Company's financial
statements.
1.9. New and amended standards
The Ministry of Corporate Affairs (MCA) has notified
Companies (Indian Accounting Standards) Rules,
2024 to amend the following Ind AS which are
effective for annual periods beginning on or after
1 April, 2025. The Company has not early adopted
any standard, interpretation or amendment that has
been issued but is not yet effective.
(i) Amendments to Ind AS 21 - Lack of
exchangeability
The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend
Ind AS 21, The Effects of Changes in Foreign
Exchange Rates to specify how an entity should
assess whether a currency is exchangeable
and how it should determine a spot exchange
rate when exchangeability is lacking. The
amendments also require disclosure of
information that enables users of its financial
statements to understand how the currency
not being exchangeable into the other currency
affects, or is expected to affect, the entity's
financial performance, financial position and
cash flows.
The amendments are effective for annual
reporting periods beginning on or after
1 April, 2025. When applying the amendments, an
entity cannot restate comparative information.
(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants
In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current
or non-current. The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of
the reporting period
• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right
• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability
not impact its classification
In addition, a requirement has been introduced
to require disclosure when a liability arising from
a loan agreement is classified as non-current
and the entity's right to defer settlement is
contingent on compliance with future covenants
within twelve months.
I f there is a breach of a material covenant of a
long term loan arrangement on or before the
end of the reporting period, resulting in the
liability becoming payable on demand as at the
reporting date, and the lender agrees—after
the reporting period but before the financial
statements are approved for issue—not to
demand repayment for at least 12 months as a
consequence of the breach, this shall be treated
as an adjusting event. Accordingly, the entity is
not required to classify the liability as current.
The amendments are effective for annual
reporting periods beginning on or after 1 April,
2025 retrospectively in accordance with Ind AS 8.
(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements
In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and
Ind AS 107 Financial Instruments: Disclosures
to clarify the characteristics of supplier
finance arrangements and require additional
disclosure of such arrangements. The disclosure
requirements in the amendments are intended
to assist users of financial statements in
understanding the effects of supplier finance
arrangements on an entity's liabilities, cash flows
and exposure to liquidity risk.
(iv) International Tax Reform—Pillar Two Model
Rules - Amendments to Ind AS 12
In August 2025, the MCA notified amendments
to Ind AS 12 Income Taxes in response to the
OECD's BEPS Pillar Two rules and include:
• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two model
rules; and
• Disclosure requirements for affected
entities to help users of the financial
statements better understand an entity's
exposure to Pillar Two income taxes arising
from that legislation, particularly before its
effective date.
The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after 1 April, 2025, but not for any
interim periods ending on or before 31 March, 2026.
The above amendments do not have any
impact on the Company's standalone financial
statements.
NOTE 2 : SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
The preparation of standalone financial statements in
conformity with the Ind AS requires management to make
judgments, estimates and assumptions, that affect the
application of accounting policies and reported amounts
of assets, liabilities, income, expense and disclosure of
contingent assets and liabilities at the date of these
standalone financial statements and the reported amount
of revenues and expenses for the years presented. Actual
results may differ from these estimates. Estimates and
underlying assumptions are reviewed at each Balance
Sheet date. Revision to accounting estimates is recognised
in the period in which the estimates are revised and future
periods are impacted.
The areas involving critical estimates and judgments
are:
|