t. Provisions and contingent liabilities
The Company creates a provision when there is present obligation, legal or constructive, as a result of past events that probably requires
an outflow of resources and a reliable estimate can be made of the amount of obligation.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by
the occurrence or non-occurrence of one or more uncertain future events. Contingent assets are neither recognised nor disclosed in the
financial statements.
u. Earnings per share
(i) Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of the
Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity
shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change
in resources.
(ii) For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity shareholders
and the weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.
v. Exceptional items
Exceptional items Exceptional items refer to items of income or expense within the Statement of Profit and Loss from ordinary activities
which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the
performance of the Company.
w. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the operating decision makers. The
decision makers regularly monitor and review the operating result of the whole Company. The activities of the Company, in the opinion
of the management, primarily falls under a single segment of "Minerals and its derivative products" in accordance with the Ind AS 108
"Operating Segments".
ii) Contractual obligations
There are no contractual obligations to purchase, construct or develop investment property.
iii) Fair Value
The fair value of the Investment Property as at March 31,2025 has been arrived at on the basis of a valuation carried out by independent valuers
registered with the authority which governs the valuers in India. All fair value estimates for investment properties are included in Level 2. Fair
valuation of the investment properties as on 31st March, 2025 is ' 3,511.16 lacs.
iv) Charge is created on one of the assets, in favour of a financial institution against the finance availed by a wholly-owned subsidiary company.
Capital redemption reserve: The Company has created capital redemption reserve from distributable profit upon redemption of preference
shares in the past years.
Securities premium account: Amount received in excess of face value of the equity shares is recognized in securities premium account. The
reserve is utilised in accordance with the provisions of the Companies Act.
Retained earnings: Retained earnings are the profits/(loss) of the Company till date, less transfers to general reserve, dividends or other
distributions paid to shareholders.
Net gain/(loss) on fair value of defined benefit plans: The Company has recognised remeasurement gains/(loss) on defined benefit plans
in OCI. These changes are accumulated within the OCI reserve within other equity. The Company transfers amount from this reserve to retained
earning when the relevant obligations are derecognized.
The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit
risk and investment of surplus liquidity.
A. Credit risk
Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial loss to the Company. The maximum
exposure of the financial assets represents trade receivables, work in progress and receivables from group companies and others.
Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management.
Trade receivables are non-interest bearing and are generally carrying upto 90 days credit terms. The Company has a detailed review mechanism
of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are
consisting of a large number of customers. Export receivables are backed by forward contract. In respect of trade receivables, the Company uses a
provision matrix to compute the expected credit loss allowances for trade receivables in accordance with the expected credit loss (ECL) policy of the
Company.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet its commitments associated with financial instruments.
Liquidity risk may result from an inability to sell a financial assets quickly at close to its fair value.
The Company, to the best extent possible, attempts to manage liquidity risk by maintaining adequate liquid assets and banking facilities by continuously
monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
C. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes
in the values of financial instruments may result from changes in foreign currency exchange rates, interest rates, credit, liquidity and other market
changes.
The Company has several balances in foreign currency and consequently, the Company is exposed to foreign exchange risk. The Company evaluates
exchange rate exposure arising from foreign currency transactions and follows established risk management policies, to the extent possible.
a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating
interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings, wherever
possible.
b) Exposure in foreign currency:
The Company deals with foreign currency loan given, trade payables, trade receivables etc. and is therefore exposed to foreign exchange risk
associated with exchange rate movement.
The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to
foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies.
Exposure in foreign currency - Hedged The Company has no hedged foreign currency exposure at the end of the relevant period.
Note 33
Capital management
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity
shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern
and to maintain an optimal capital structure so as to maximize shareholder value.
The Company's capital management objective is to maximise the total shareholder returns by optimising cost of capital through flexible capital
structure that supports growth. Further, the Company attempts to ensure optimal credit risk profile to maintain/enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding
requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of
net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
b. executed in favour of the lessee), disclosed in the financial statements included under property, plant and equipment are held in the name
of the Company as at the balance sheet date.
The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any
time during the financial year or after the end of reporting period but before the date when the financial statements are approved.
f. The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the
statutory period.
g. The Company has used the borrowings from financial institutions and others for the specific purpose for which it was obtained.
h The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with
Companies (Restrictions on number of Layers) Rules, 2017.
The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries),
with the understanding that the intermediary shall;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
j. (whether recorded in writing or otherwise) that the Company shall;
i. 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
ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as
k. income during the year in the tax assessments under the Income Tax Act, 1961 ( such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961).
l The Company has not been sanctioned working capital limits in excess of ' 5 crore, in aggregate, at any points of time during the year, from
banks or financial institutions on the basis of security of current assets.
The Company is operating under SAP environment which is fully integrated financial accounting and reporting system. The management
confirms that the accounting software used by the Company for maintaining books of account has a feature of recording audit trail (edit log)
facility which has been operated throughout the year for all transactions recorded in the software and the audit trail feature is not being
tampered with.
42. The Company has converted 40,40,000 share warrants into equity shares of ' 2 each to promoter group on preferential basis at a price of ' 95.96
per equity share on 13th August, 2024. Accordingly, share capital of the Company has been increased to that extent.
43. Balances for trade payables, trade receivables, other liabilities, loans and advances are subject to confirmations from the respective parties and
reconciliations, if any, in many cases. In absence of such confirmations, the balances as per books have been relied upon by the auditors.
44. Certain immovable and movable assets of the Company at Kutch, Gujarat as well as Thiruvananthapuram, Kerala, are under charge by way of
mortgage/hypothecation with Bank of India pending settlement of one claim.
45. All the amounts have been stated in Indian ' in lacs, unless otherwise stated.
46. Previous year's figures have regrouped and rearranged, wherever necessary.
Signatures to Notes No. 1 to 46
As per our report of even date For and on behalf of the Board of Directors
For P A R K & COMPANY sd/- sd/-
Chartered Accountants CHETAN SHAH HEMUL SHAH
Executive Chairman Executive Director & Chief Executive Officer
DIN:00018960 DIN:00058558
sd/- sd/- sd/-
PRASHANT VORA ASHISH DESAI SACHIN POLKE
Partner Group Chief Financial Officer Company Secretary & President (Corporate Affairs)
Mumbai Mumbai
May 30, 2025 May 30, 2025
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