2.18Provisions and contingent liabilities
A provision is recognised when the Company has a
present obligation as a result of a past event and it
is probable that an outflow of resources is expected
to settle the obligation, in respect of which a reliable
estimate can be made.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost.
Contingent liability is disclosed in case:
• a present obligation arising from past events,
when it is not probable that an outflow of
resources will be required to settle the obligation;
• present obligation arising from past events, when
no reliable estimate is possible; or
• a possible obligation arising from past events where
the probability of outflow of resources is not remote.
Provisions and contingent liabilities are reviewed at
each standalone balance sheet date.
2.19Provisions for employment benefits
Defined contribution plans
Under defined contribution plan, the Company pays
pre-defined amounts to separate funds and does not
have any legal or informal obligation to pay additional
sums. The Company has the following defined
contribution plans: state governed provident fund
scheme and employee state insurance scheme. The
contributions paid and payable under the scheme
are recognised in the period when the employee
renders the related service.
Defined benefit plans
The employees’ gratuity fund scheme managed
by the Life Insurance Corporation of India is the
Company’s defined benefit plan. The present value
of the obligation under such defined benefit plan
is determined based on actuarial valuation using
the Projected Unit Credit Method, which recognises
each period of service as giving rise to additional unit
of employee benefit entitlement and measures each
unit separately to build up the final obligation.
The obligation is measured at the present value
of the estimated future cash flows. The discount
rates used for determining the present value of the
obligation under defined benefit plans, is based
on the market yields on government securities as
at the balance sheet date, having maturity periods
approximating to the terms of related obligations.
Re-measurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest on
the net defined benefit liability), are recognised
immediately in the standalone balance sheet with
a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re¬
measurements are not reclassified to profit or loss in
subsequent periods.
In case of funded plans, the fair value of the plan’s
assets is reduced from the gross obligation under the
defined benefit plans, to recognise the obligation on
net basis.
Gains or losses on the curtailment or settlement of
any defined benefit plan are recognised when the
curtailment or settlement occurs. Past service cost is
recognised as expenses on a straight-line basis over
the average period until the benefits become vested.
Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset.
The Company recognises the following changes in
the net defined benefit obligation under ‘employee
benefit expenses’ in the standalone statement of
profit and loss:
• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements
• Net interest expense or income
Provision for compensated absences
Provision for short-term compensated absences is
recognised for accumulated leaves that are expected
to be utilised within a period of twelve months from
the balance sheet date. Long term compensated
absences are provided for on the basis of an actuarial
valuation, using projected unit credit method, as at
each reporting date.
2.20Earnings per equity share
Basic earnings per equity share are calculated
by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted
average number of equity shares outstanding during
the year as reduced by number of shares bought
back, if any. The weighted average number of equity
shares outstanding during the year is adjusted for
events such as bonus issue, bonus element in a
rights issue, share split, and reverse share split
(consolidation of shares) that have changed the
number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per
equity share, the net profit or loss for the period
attributable to equity shareholders and the weighted
average number of shares outstanding during the
period are adjusted for the effects of all dilutive
potential equity shares.
2.21 Dividend to equity holders of the
Company
Dividends paid (including income-tax thereon)
is recognised in the period in which the interim
dividends are approved by the Board of Directors,
or in respect of the final dividend when approved
by shareholders.
2.22Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision-maker. The chief
operating decision-maker, who is responsible for
allocating resources and assessing performance of
the operating segments, has been identified as the
Board of Directors that makes strategic decision.
Segment accounting policies are in line with the
accounting policies of the Company.
2.231.1 New standards and amended standards issued
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. In May 2025, MCA
notified amendments to Ind AS 21 - The Effects of
Changes in Foreign Exchange Rates, applicable
w.e.f. April 1, 2025. The Company has reviewed
the amendment and based on its evaluation has
determined that it does not have any significant
impact in consolidated financial statements.
In August 2025, MCA notified the following
amendments to:
A) Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or non-current and non-current liabilities
with covenants. In the context of classifying a
liability as current, it removes the requirement
of existence of a right to defer settlement for
at least 12 months after the reporting date
and instead requires that the said right should
exist on the reporting date and have substance.
The amendment also introduces guidance on
classification of liabilities with covenants. The
Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.
B) I nd AS 7, Statement of Cash Flows and Ind
AS 107, Financial Instruments: Disclosures,
applicable w.e.f. April 1, 2025 - The amendment
in Ind AS 7 requires to inform users of financial
statements of the existence of supplier finance
arrangements and explain the nature of the
arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS
107 has been amended to add supplier finance
arrangements as a factor that may cause
concentration of liquidity risk. The Company
has reviewed the amendment and based on
its evaluation has determined that there is no
such arrangement and hence it does not have
any impact on its financial statements.
C) I nd AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately - The
Company has reviewed the amendment and
based on its evaluation has determined that
it does not have any significant impact on its
financial statements.
Notes:
1. Property, plant and equipment pledged as security:
There is no charge on property, plant and equipment as at March 31, 2026 and as at March 31, 2025.
2. Title deeds of immovable properties not held in name of the Company:
There is no immovable property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) whose title deed is not held in the name of the Company.
3. Benami properties:
No proceedings have been initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
4. Capital commitments:
Refer note 38.1 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
Notes:
1. Capital work-in-progress (‘CWIP’) comprises cost of property, plant and equipment that are not yet installed or ready
for their intended use at the balance sheet date.
2. The Company does not have any projects which are overdue or exceeded their respective cost in comparison to its
original plan.
3. There are no projects which have been temporarily suspended.
Fair value disclosures
Fair value disclosures for financial assets and liabilities are stated in note 39 and fair value hierarchy disclosures
for investment are stated in note 39.
Risk management strategy
Refer note 40 on financial risk management objectives and policies for financial instruments.
Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy.
There are no loans due by directors or other officers of the Company or any of them either severally or jointly
with any other persons or amounts due by firms or private companies respectively in which any director is a
partner or a director or a member.
The Company has not granted any loans to promoters, directors, key managerial personnel and the related
parties (as defined under the Act), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment
Fair value disclosures
Fair value disclosures for financial assets and liabilities and fair value hierarchy disclosures for investment are
stated in note 39.
Risk management strategy
Refer note 40 on financial risk management objectives and policies for financial instruments.
There are no dues from private companies in which director of the Company, is a director or a member.
Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy.
Refer note 40 for credit risk of trade receivables.
The Company's trade receivables consist of receivables from dealers and customers against sales of pipes and
fittings and PVC resin. Trade receivables are mostly on terms of advance payment and in certain cases credit
period is generally up to 60 days. The Company also charges interest @ 18% per annum (p.a.) in case of delay
in collection of trade receivables.
The trade receivables are free from hypothecation.
There are no unbilled receivables as at March 31, 2026 and March 31, 2025.
Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy.
There are no loans due by directors or other officers of the Company or any of them either severally or jointly
with any other persons or amounts due by firms or private companies respectively in which any director is a
partner or a director or a member.
The Company has not granted any loans to promoters, directors, key managerial personnel and the related
parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment"
Disclosure pursuant to section 186(4) of the Act
The Company has granted unsecured loans to unrelated parties, towards expansion of their production
capacity. Out of these loans, one of them amounting to ^ 8.90 Crore as at March 31, 2026, is repayable on
demand and the other amounting to ^ 2.88 Crore is repayable as per schedule stipulated in the agreement
between the parties. Further, no loans have been granted during the year.
In line with circular no. 04/2015, issued by the Ministry of Corporate Affairs, dated March 10, 2025, loans
given to employees are not considered for the purpose of disclosure under section 186 (4) of the Companies
Act, 2013.
i) The Company has not issued any bonus shares, neither the Company has bought back any of its shares,
nor any shares have been issued pursuant to contract without payment being received in cash during
the five years immediately preceding the balance sheet date.
ii) The Company has only one class of equity shares having a par value of ^ 2 each. Each
equity shareholder is entitled to one vote per share and has a right to receive dividend as
recommended by Board of Directors subject to the necessary approval from the shareholders.
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.
iii) The Board of Directors have recommended a final dividend of ^ 2 (100%) per equity share of ^ 2/- each
and a special dividend of ^ 0.75 (37.50%) per equity share of ^ 2/- each, aggregating to ^ 2.75 (137.50%)
per equity share of ^ 2/- each for the year ended March 31, 2026. The dividend is subject to the approval
of the shareholders in the ensuing Annual General Meeting of the Company. A dividend of ^3.60 per
equity share for the year ended March 31, 2025 was approved at the Annual General Meeting and has
been duly paid to the shareholders
Nature and purpose of reserves
1. Capital redemption reserve
Capital redemption reserve is created by transferring an amount from retained earnings pursuant to buy
back of equity shares, and represents nominal value of shares bought back. The reserve will be utilised
in accordance with the provisions of the Act.
2. General reserve
General reserve is created from time to time by way of transfer of profits from retained earnings. General
reserve does not include a component of OCI.
3. Securities premium
Amount received (on issue of shares) in excess of the par value has been classified as securities premium.
The reserve will be utilised in accordance with the provisions of the Act.
4. Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, capital redemption reserve, dividends or other distributions paid to shareholders.
5. Equity instruments through OCI
Equity instruments through OCI represents unrealised fair value gain(or) loss in investments measured
at FVOCI.
Details of terms of borrowings:
Buyer's credits are part of working capital facilities. These are repayable based on the terms of each buyer's
credit which is up to 90 days from date of availment. The interest rate are Secured Overnight Financing Rate
(SOFR) linked plus spread and it ranges from 0.25% to 0.65% (March 31, 2025 0.27% to 0.52%)
Cash credits facilities have interest rate ranging from 7.60% p.a. to 9.65% p.a. (March 31, 2025: 8.50% p.a. to
9.60% p.a.)
Borrowings from banks have been utilized for the purpose for which they were taken.
The Company has not been declared as wilful defaulter by any bank or financial institution or government or
government authority.
Refer note 40 for discussion on Company's financial risk management policies and procedures.
C. Revenue by geography:
The Company operates in domestic market only, hence no separate geographical information has
been provided.
D. Contract balance
The following table provides information about trade receivables, contract assets and contract liabilities
from contracts with customers:
Nature of CSR activities:
Agriculture and rural development, eradicating hunger and poverty, promoting education, vocational
skills, and livelihood, gender equality and women empowerment, preventive healthcare, heritage art and
culture, environmental sustainability, promoting sports, sanitation, hygiene and safe drinking water, animal
welfare, support to differently abled, technology incubators, armed forces/veterans, contribution to river and
beach cleaning.
34 Earnings per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
There are no potential shares that have a dilutive effect on the EPS.
The following reflects the income and share data used in the basic EPS computation
35 Segment information
In accordance with Ind AS 108, "Operating Segments", the Company had hitherto identified and reported
two operating segments, namely (i) PVC Resin and (ii) PVC Pipes and Fittings. The management used to
monitor the operating results of these business units separately for the purposes of resource allocation and
performance assessment. Segment performance was evaluated based on profit or loss measured consistently
with the financial statements. Financing costs, finance income and income taxes were not allocated to
operating segments.
Effective April 1, 2025, the Company has re-aligned its internal reporting structure. Consequent to this re¬
alignment, and in accordance with Ind AS 108, "Operating Segments", the Company has reassessed the
manner in which the Chief Operating Decision Maker (CODM) reviews financial information for the purposes
of resource allocation and performance assessment.
Based on this reassessment, the CODM now reviews the Company's operations as a single integrated business
engaged in the manufacture and sale of Pipes and Fittings. Accordingly, with effect from April 1, 2025, the
Company operates as a single reportable segment, and no separate segment-wise disclosures are required or
have been furnished in these financial statements.
(a) Description of segments and principal activities
The Company has a single operating Segment that is "Pipes & Fittings". Accordingly, the segment revenue,
segment results, segment assets and segment liabilities are reflected by the financial statements
themselves as at and for the financial year ended March 31, 2026
(b) Entity wide disclosures
(i) Information about products and services:
The Company is in a single line of business of "Pipes & Fittings".
(ii) Geographical Information:
The Company operates presently in India. Accordingly revenue from customers earned and all assets
are located in India.
(iii) Information about major customers:
No single customer contributed 10% or more of the total revenue of the Company for the year ended
March 31, 2026 and March 31, 2025.
36 Disclosure pursuant to employee benefits
A. Defined contribution plans:
Amount of ^ 8.38 Crore (March 31, 2025: ^ 8.77 Crore) is recognised as expenses and included in note
no. 29 "Employee benefits expense".
The contribution are made to recognised provident fund administered by the Government of India for
employees @12% p.a. of basic salary per regulations. The obligation of the Company is limited to the
amount contributed and it has no further contractual constructive obligation.
B. Defined benefit plans:
The Company has Gratuity scheme as post employment benefit which is in the nature of defined
benefit plan.
The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent
to fifteen days last drawn salary for each completed year of service as per Payment of Gratuity Act, 1972.
The same is payable on termination of service or retirement whichever is earlier. The benefit vests after
five years of continuous service.
The sensitivity analysis above has been determined based on a method that extrapolates the impact on the
defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the
reporting period. The sensitivity analysis is based on a change in one significant assumption at a time, keeping
all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the
defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.
The same method has been applied for the sensitivity analysis when calculating the recognised defined
benefit obligation.
The following are the expected future benefit payments for the defined benefit plan:
Risk exposure and asset liability matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on uncertain long term obligations to make future benefit payments.
1. Liability risks
a. Asset-liability mismatch risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By
matching duration with the defined benefit liabilities, the Company is successfully able to neutralize
valuation swings caused by interest rate movements. Hence companies are encouraged to adopt
asset-liability management.
b. Discount rate risk
Variations in the discount rate used to compute the present value of the liabilities may seem small,
but in practice can have a significant impact on the defined benefit liabilities.
c. Future salary escalation and inflation risk
Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in a
higher present value of liabilities especially unexpected salary increases provided at management's
discretion may lead to uncertainties in estimating this increasing risk.
d. Withdrawal
Actual withdrawal providing higher or lower than assumed withdrawal and change of withdrawal
rate at subsequent valuation can impact plan's liability.
2. Asset risks
All plan assets are maintained in a trust fund managed by a LIC, public sector insurer. LIC has a sovereign
guarantee and has been providing consistent and competitive returns over the years.
The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse
markets. The Company has no control over the management of funds but this option provides a high
level of safety for the total corpus. A single account is maintained for both the investment and claim
settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.
3. Effective November 21, 2025, the Government of India has consolidated multiple existing labour
legislations into a unified framework comprising of four Labour Codes - The Code on Wages, 2019, The
Industrial Relations Code, 2020, The Code on Social Security, 2020 and The Occupational Safety, Health
and Working Conditions Code, 2020. On the basis of information and guidance available as on date, FIL
has assessed and duly recorded the incremental financial impact.
C. Other long-term employment benefits
The Company has compensated absences plan which is covered by other long-term employee benefits.
38 Commitments and contingencies
38.1 Commitments
a) Capital commitments:
Estimated amount of contracts remaining to be executed on capital account and not provided for as at
March 31, 2026 ^ 28.23 Crore (March 31, 2025: ^ 18.66 Crore)
b) Other commitments:
Aggregate amount of bank guarantees outstanding as on March 31, 2026 is ^ 23.36 Crore (March 31,
2025: ^ 64.51 Crore)
i) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the
above pending resolution of the respective proceedings.
ii) The amounts disclosed above represent the best possible estimates arrived at on the basis of
available information.
iii) The Company is contesting all of the above demands and the management believes that its positions
are likely to be upheld by the respective courts. The management believes that the ultimate outcome of
these proceedings are not expected to have a material impact on the Company's standalone financial
statements and hence no provisions have been made in this regard.
39 Fair value of financial assets and liabilities
This note explains the judgements and estimates made in determining the fair values of the financial
instruments that are recognised and measured at (i) fair value (ii) measured at amortised cost and for which
fair values are considered to be same as the amortised costs disclosed in the financial statements. They are
further classified into Level 1 to Level 3 as required by the Ind AS and described in the significant accounting
policies of the Company. Further, the note describes valuation techniques used, key inputs to valuations and
quantitative information about significant unobservable inputs for fair value measurements.
In accordance with IND AS 27- Separate financial statement, Company has valued its investment in associates
at cost and hence not disclosed here.
Valuation techniques used to determine the fair value of each financial instrument:
Fair value of financial instruments classified at amortised cost:
The management assessed that the fair values of cash and bank, loans, trade receivables, other financials
assets, borrowings, trade payables, lease liabilities and other financial liabilities approximate their carrying
amounts largely due to the short-term maturities of these instruments.
Carrying value of non-current financial liabilities are considered to be same as their fair value due to discounting
at rate which are an approximation of incremental borrowing rate.
Fair value of financial instruments classified at FVTPL:
These financial instruments consist of investment in quoted equity instruments and units of mutual funds.
The fair value of quoted equity instruments is based on the respective quoted price in the active markets as
at the measurements date and fair value of investment in mutual funds is determined using the quoted price
Net Asset Value ( 'NAV' ) of the respective units in the active market at the measurement date.
Fair value of financial instruments classified at FVOCI:
These financial instruments consist of investments in equity instruments. The fair value of quoted equity
instruments is based on the respective quoted price in the active markets as at the measurement date. The fair
value of investments in unquoted equity shares has been estimated using the net asset method. The valuation
requires to consider the cost of replacement of an asset as an indication of the fair market value of that asset.
During the year ended March 31, 2026 and March 31, 2025, there were no transfers between hierarchies of
fair value measurements.
The Company maintains policies and procedures to value financial assets or financial liabilities using the
best and most relevant data available. In addition, the Company internally reviews valuations, including
independent price validation for certain instruments.
The Company’s principal financial liabilities comprise current borrowings, trade payables, lease liabilities and
other financial liabilities. The Company’s principal financial assets include investments, trade receivables and
cash and cash equivalents and other bank balances that arrive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s management oversees
the management of these risks. The Company’s management is supported by a risk management committee
that advises on financial risks and the appropriate financial risk governance framework. The risk management
committee provides assurance to the Company’s management that the Company’s financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with Company’s policies appetite. It is the Company’s policy that no trading in
derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.
i) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company evaluates credit risk with respect to trade receivables as
significantly low, as its payment terms are mostly advance basis.
a) Trade receivables
In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to
any single counter party or any group of counter parties having similar characteristics. Trade receivables
consist of a large number of customers. The Company has very limited history of customer default, and
considers the credit quality of trade receivables that are not past due or impaired to be good.
b) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury
department in accordance with Company’s policy. Investments of surplus funds are made only with
approved counterparties and within credit limits assigned to each counterparty. The Company monitors
ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment, the
Company adjust it's exposure to various counterparties. The Company's maximum exposure to credit risk
for the other components of balance sheet is the carrying amount as disclosed below:
ii) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and
collateral obligations without incurring unacceptable losses. The Company's objective is to, at all time maintain
optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its
liquidity position and deploys a robust cash management system.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed
borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity
profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to
ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn
committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants
(where applicable) on any of its borrowing facilities.
The table summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments.
iii) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and
other price risk such as equity price risk and commodity price risk. Financial instruments affected by market
risk include borrowings, trade and other payables, trade receivables, investments, other financial liabilities.
The sensitivity analysis in the following sections relate to the position as at March 31, 2026 and March 31,
2025. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective
market risks. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio
of fixed to floating interest rates of the debt, proportion of financial instruments in foreign currencies are all
constant at March 31, 2026.
a) Foreign currency risk
Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.
The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating
activities on account of import of raw materials.
The pricing of PVC products in India is largely based on import parity. As a result, the Company’s value
of sales of products generally exceeds its United States Dollar (USD) denominated payables on a rolling
three to six-month basis.
b) 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 is primarily exposed to this risk through its variable-rate borrowing facilities. However,
because outstanding borrowings as of March 31, 2026, comprise only short-term buyer's credit
payable within 90 days, there is no significant exposure to interest rate risk
c) Price risk
i) Commodity price risk
The Company is affected by the volatility of prices of certain commodity chemicals (Ethylene and PVC)
and intermediate products (Ethylene and Ethylene Dichloride (‘EDC’) and Vinyl Chloride Monomer
(‘VCM’). Its operating activities involve ongoing purchase of VCM, EDC, all being petrochemical products
used for manufacturing of PVC, which is further used in manufacturing of pipes and fittings and
therefore require a continuous supply of these materials. As changes in input costs and corresponding
adjustments to product prices to align with import price parity, may not occur concurrently, the
Company is subject to volatility arising from movements in commodity prices and the timing of cost
recovery through sales prices.
41 Capital management
Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary
objective of the Company’s capital management is to ensure its ability to continue as going concern, maintain
a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder
value. The Company is not subject to externally imposed capital requirement. The Company manages its
capital structure and makes adjustments to maintain efficient financing structure in light of changes in
economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using
a gearing ratio, which is total debt divided by total capital plus other equity.
42 Details of dues to Micro and Small Enterprises as defined under MSMED
Act, 2006 (as amended)
The management has identified enterprises which qualify under the definition of micro enterprises and small
enterprises, as defined under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the year end has been
made in the standalone financial statements based on information received and available with the Company
and has been relied upon by the statutory auditor.
44 Disclosure pursuant to Ind AS 116
(a) The Company as a lessee has obtained certain assets such as immovable properties on leasing arrangements
for the purposes of manufacturing and storage facilities. With the exception of short-term leases and leases
of low value underlying assets, each lease is reflected on the balance sheet as a right-to-use asset and a
corresponding lease liability. Variable lease payment which do not depend on an index or a rate are excluded
from the initial measurement of the lease liability and right-of-use assets. The Company has presented its
right-of-use assets separately from other assets. Each lease generally imposes a restriction that unless there
is a contractual right for the Company to sub-lease the asset to another party, the right-of-use asset can only
be used by the Company. Some lease contain an option to extend the lease for a further term.
(b) Additional information on extension/ termination options: Extension and termination options are
included in a number of property lease arrangements of the Company. These are used to maximise
operational flexibility in terms of managing the assets used in the Company’s operations. The majority
of extension and termination options held are exercisable based on consent of the Company.
(c) There are no leases which are yet to commence as on March 31, 2026 and as on March 31, 2025.
(d) Lease payments, not included in measurement of liability
The Company has elected not to recognise a lease liability for short term leases (leases with an expected
term of 12 months or less) or for leases of low value assets. The expense relating to payments not included
in the measurement of the lease liability is as follows:
45 Utilization of borrowed funds:
During the years ended March 31, 2026 and March 31, 2025:
(i) 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(s) or entity(ies), 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.
(ii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities
(“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.
46 Undisclosed income:
There are no transactions that have not been recorded in the books of accounts and have been surrendered
or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.
47 Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current year and
previous year.
48 Transactions with struck-off companies:
The Company does not have any transaction or outstanding balance with struck-off companies under section
248 of the Act or section 560 of Companies Act, 1956, during current and previous year.
49 Registration/satisfaction of charges with Registrar:
There are no charges or satisfaction which is yet to be registered with Registrar of Companies beyond the
statutory period in the current as well as in the previous year.
50 Compliance on number of layers:
The Company has complied with the number of layers prescribed under section 2(87) of the Act, read with
the Companies (Restriction in number of layers) Rules, 2017.
51 Revaluation of property, plant and equipment and intangible assets :
The Company have not revalued its property, plant and equipment and intangible assets during the current
year and previous year.
52 Compliance on scheme of arrangement:
The Company has not entered into any scheme of arrangement in terms of section 230 to 237 of the Act
during the current year and previous year.
53 Recording audit trail:
"The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules
2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only
such accounting software which has a feature of recording audit trail of each and every transaction, creating
an edit log of each change made in the books of account along with the date when such changes were made
and ensuring that the audit trail cannot be disabled.
The Company uses the accounting software SAP for maintaining its books of account. During the year ended
March 31, 2026, the Company had not enabled the feature of recording audit trail (edit log) at the database
level for the said accounting software to log any direct data changes on account of recommendation in the
accounting software administration guide which states that enabling the same would consume storage
space on the disk and can impact database performance significantly. The users of the Company do not
have any access to database IDs with DML (Data Manipulation Language) authority which can make direct
data changes (create, change, delete) at database level. Audit trail (edit log) is enabled at the application level.
Further, the audit trail, has been prescribed by the Company as per the statutory requirements for
record retention.
54 Previous year comparatives:
Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current
year's classifications / disclosures. The impact of such regroupings/ reclassifications are not material to the
standalone financial statements.
The accompanying notes including material accounting policy information and other explanatory information
form an integral part of these standalone financial statements.
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