1. CORPORATE INFORMATION
Technichem Organics Limited (The company) is a public limited company which was initially registered
as a private limited company with Registrar of Companies, Gujarat with CIN number
U24231GJ1996PTC028917 Since 27.02.1996 and engaged in the business of manufacturing and
trading of Chemicals having registered office at 5th Floor, Malak Complex, Behind Old Gujarat High
Court, Navrangpura, Ahmedabad, Gujarat, India, 380009 and factory address at Survey No. 347,
Village: Lunej, Tal. Khambhat, Dis. Anand, Gujarat.
From 4th day of July 2024, the company Technichem Organics Pvt. Ltd. is converted into a Public
Limited company limited by shares under section 18 of the company's act 2013 and so the name of
the company is changed to TECHNICHEM ORGANICS LIMITED from the same date.
During the financial year, the company successfully completed the process of listing its equity shares
on the SME Platform of [BSE SME] in accordance with the applicable provisions of the Companies Act,
2013 and SEBI (ICDR) Regulations, 2018.
The company made an Initial Public Offering (IPO) of 45,90,000 equity shares of face value Rs. 10/-
each at an issue price of Rs. 55/- per share, aggregating to Rs. 2524.50 Lacs.
The shares were listed on the [SME Platform of BSE] and trading commenced on 07th January 2025
The financial statements were authorized for issue in accordance with a resolution of the Board of
directors on 28th May 2025.
2. SIGNIFICANT ACCOUNTING POLICIES
a. ACCOUNTING CONVENTION:
The financial statements of the company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”)
/Companies Act, 1956 (“the 1956 Act”), as applicable. The financial statements have been prepared
on accrual basis under the historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those followed in the previous year.
b. PROPERTY, PLANT AND EQUIPMENT (PPE):
i) The Gross Block of PPE is stated at cost Net of GST. Cost comprises of purchase price and
other attributable expenses.
ii) The carrying amount of cash generating assets is reviewed at balance sheet date to
determine whether there is any indication of impairment, if any such indication exists, the
recoverable amount is estimated as the higher of net selling price and value in use.
Impairment loss is recognized wherever carrying amount exceeds recoverable amount.
iii) Depreciation amount for assets is the cost of an asset, or other amount substituted for cost,
less its estimated residual value.
iv) Depreciation on tangible assets is provided on the Straight Line Method as per the useful
life prescribed in Schedule II to the Companies Act, 2013.
c. INVENTORIES
Inventories are valued at lower of cost or net realizable value. Cost is determined on FIFO or
specialized basis, if applicable. The raw material cost includes purchase cost and other cost to
bring the material at factory. The work in progress and finished goods cost includes raw material
cost, variable cost and manufacturing overheads.
d. SALES:
Sales value is net off GST as applicable and other rebate & claims if any. Sales are accounted for
on dispatch of goods to the customers and are net of sales return.
e. TREATMENT OF RETIREMENT OF BENEFITS:
(i) Short-Term Employee Benefits
Liabilities for salaries and wages, including non-monetary benefits and accumulating leave
balance in respect of employees' services up to the end of the reporting period, are recognized
as expensed when the liabilities are settled.
The company also recognizes a liability and records an expense for bonuses (including
performance-linked bonuses) where contractually obliged or where there is a past practice
that has created a constructive obligation.
(ii) Defined Benefit Obligation
Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the
Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of
service is entitled to specific benefit. The level of benefits provided depends on the member's
length of service and last drawn salary.
f. FOREIGN CURRENCY TRANSACTIONS:
i. ) Monetary items denominated in foreign currency are translated at the exchange rate prevailing
on the last day of the accounting year. Foreign currency transactions are accounted at the
prevailing on the date of transaction.
ii. ) Non-monetary items which are carried in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the date of transaction.
iii. ) Gain or loss arising out of translation/conversation is taken credit for or charged to the profit
and loss statement.
g. BORROWING COSTS:
Borrowing costs relating to acquisition of qualifying assets is capitalized till the date of commercial
use of such assets. A qualifying asset is one that necessarily takes substantial period of time to
get ready for intended use. Other borrowing costs are charged to profit and loss account.
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