7) Provisions, Contingent Liabilities and Contingent
Assets:
Provisions are recognized when there is a present legal or
constructive obligation as a result of a past event and it is
probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Contingent liabilities are disclosed on the basis of judgment
of management / independent experts. These are reviewed
at each balance sheet date and are adjusted to reflect the
current management estimate.
Provisions for warranty-related costs are recognized when
the product is sold to the customer. Initial recognition is
based on scientific basis as per past trends of such claims. The
initial estimate of warranty-related costs is revised annually.
8) Foreign Currency Transactions:
The financial statements of the Company are presented in
INR, which is also the functional currency (i.e. the currency
of the primary economic environment in which the Company
operates). In preparing the financial statements, transactions
in currencies other than the entity’s functional currency are
recognized at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are
translated at the rates prevailing at that date. Non-monetary
items denominated in foreign currency are reported at the
exchange rate ruling on the date of transaction.
9) Cash Flows and Cash and Cash Equivalents:
Statement of cash flows is prepared in accordance with
the indirect method prescribed in the relevant IND AS.
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
cheques and drafts on hand, deposits held with Banks with
original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. However, Bank
overdrafts are to be shown within borrowings in current
liabilities in the balance sheet for the purpose of presentation.
10) Revenue Recognition:
The Company derives revenues primarily from sale of goods
comprising of (i) Glass Lined Equipment- Manufacturing of
Carbon Steel Glass Lined Equipment viz. reactors, receivers,
storage tanks, columns, agitators, valves, pipes and fittings
and other similar equipment and related spares and
accessories and (ii) Filtration, Drying and Other Equipment
- Manufacturing of Agitated Filters and Dryers, Rotary
Vacuum Paddle Dryers, other Chemical Process Equipment
and related spares and accessories.
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price allocated to
that performance obligation. The transaction price of goods
sold and services rendered is net of variable consideration
on account of delayed delivery of goods /product discounts
and schemes offered by the company as part of the contract
with the customers. The Company recognises changes in the
estimated amounts of obligations for discounts in the period
in which the change occurs. Revenue also excludes taxes
collected from customers.
Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when
payment is being made.
Revenue from contract with customers is recognized upon
transfer of control of promised products or services to
customers in an amount that reflects the consideration
the Company expects to receive in exchange for those
products or services.
Revenue from the sale of goods is recognized at the point in
time when control is transferred to the customer.
Revenue from sale of services is recognised when the
activity is performed.
Revenue in excess of invoicing are classified as contract
assets while invoicing in excess of revenues are classified as
contract liabilities.
Use of significant judgements in revenue recognition.
• Judgement is also required to determine the transaction
price for the contract. The transaction price could
be either a fixed amount of consideration or variable
consideration with elements such as delayed delivery
of goods/ product discounts. Any consideration
payable to the customer is adjusted to the transaction
price, unless it is a payment for a distinct product or
service from the customer. The estimated amount of
variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue
recognized will not occur and is reassessed at the end
of each reporting period. Some contracts for the sale of
goods provide customers with a right of return.
• Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. The transaction price of
goods sold and services rendered is net of variable
consideration on account of product discounts and
schemes offered by the company as part of the contract
with the customers. The Company recognizes changes
in the estimated amounts of obligations for discounts in
the period in which the change occurs.
11) Employee Benefits:
a) Short-term Employee Benefits:
All employee benefits payable wholly within twelve
months of rendering services are classified as short¬
term employee benefits. Benefits such as salaries,
wages, short-term compensated absences, performance
incentives etc., are recognized during the period in
which the employee renders related services and are
measured at undiscounted amount expected to be paid
when the liabilities are settled.
b) Long-Term Employee Benefits:
The cost of providing long-term employee benefits
such as earned leave is measured as the present value
of expected future payments to be made in respect of
services provided by employees upto the end of the
reporting period. The expected costs of the benefit
are accrued over the period of employment using the
same methodology as used for defined benefits post¬
employment plans. Actuarial gains and losses arising
from the experience adjustments and changes in
actuarial assumptions are charged or credited to profit
or loss section of the Statement of Profit or Loss in the
period in which they arise except those included in the
cost of assets as permitted. The benefit is measured
annually by independent actuary.
c) Post-Employment Benefits:
The Company provides the following post¬
employment benefits:
i) Defined benefit plan i.e., gratuity
ii) Defined contributions plan i.e., provident fund.
d) Defined benefits Plans:
The cost of providing benefits on account of gratuity
obligations is determined using the projected unit credit
method on the basis of actuarial valuation made at the
end of each balance sheet date.
Re-measurements comprising of actuarial gains
and losses arising from experience adjustments and
change in actuarial assumptions, the effect of change
in assets ceiling (if applicable) and the return on plan
assets (excluding net interest as defined above) are
recognized in other comprehensive income (OCI)
except those included in cost of assets as permitted in
the period in which they occur. Re-measurements are
not reclassified to the Statement of Profit and Loss in
subsequent periods.
e) Defined Contribution Plans
Payments to defined contribution retirement benefit
plans, viz., Provident Fund are recognized as an expense
when employees have rendered the service entitling
them to the contribution.
12) Taxes on Income:
Income tax expense represents the sum of income tax
currently payable and deferred tax. Tax is recognized in the
profit or loss section of the Statement of Profit and Loss,
except to the extent that it relates to items recognized
directly in equity or in other comprehensive income.
a) Current Tax:
Current tax is the expected tax payable/ receivable on
the taxable income/ loss for the year using applicable
tax rates for the relevant period, and any adjustment
to taxes in respect of previous years. Tax on Income for
the current year is determined on the basis of estimated
taxable income and tax credits computed in accordance
with the provisions of the relevant tax laws and based on
the expected outcome of assessments/appeals.
b) Deferred Tax:
Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the balance sheet and the corresponding tax bases
used in the computation of taxable profit. Deferred
tax liabilities are recognized for all taxable temporary
differences. Deferred tax assets are recognized for all
tax-deductible temporary differences, unabsorbed
losses and unabsorbed depreciation to the extent that
it is probable that future taxable profits will be available
against which these deductible temporary differences,
unabsorbed losses and unabsorbed depreciation
can be utilized.
13) Earnings per Share:
Basic earnings per share are calculated by dividing the total
profit attributable to equity shareholders of the Company by
the weighted average number of equities shares outstanding
during the year. Basic earnings per share are calculated
separately for both continuing and discontinuing operations.
14) Financial Instruments:
a) Financial Assets
A financial asset inter-alia includes any asset that is cash,
equity instrument of another entity or contractual rights
to receive cash or another financial asset or to exchange
financial asset or financial liability under conditions that
are potentially favorable to the Company.
Investments in subsidiaries
Investments in subsidiaries are carried at cost.
Financial assets other than investment in
subsidiaries
Financial assets of the Company comprise trade
receivable, cash and cash equivalents, Bank
balances, loans/advances to employees/ others,
security deposit, etc.
Initial recognition and measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial
asset. However, Trade receivables that do not contain
a significant financing component are measured at
Transaction Price. Transaction costs of financial assets
carried at fair value through profit or loss are expensed
in Profit or Loss.
Subsequent measurement
For purposes of subsequent measurement financial
assets are classified in three categories:
• Financial assets measured at amortized cost
• Financial assets at fair value through OCI
• Financial assets at fair value through profit or loss
Financial assets measured at amortized cost
Financial assets are measured at amortized cost if the
financials asset is held within a business model whose
objective is to hold financial assets in order to collect
contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding. These financials assets
are amortized using the effective interest rate (EIR)
method, less impairment. Amortized cost is calculated
by considering any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The
EIR amortization is included in finance income in the
statement of profit or loss.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are mandatorily measured at fair value
through other comprehensive income if the financial
asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on
the principal amount outstanding. At initial recognition,
an irrevocable election is made (on an instrument-by¬
instrument basis) to designate investments in equity
instruments other than held for trading purposes at
FVTOCI. Fair value changes are recognized in the
other comprehensive income (OCI). On derecognition
of the financial assets other than equity instruments,
cumulative gain or loss previously recognized in OCI is
reclassified to Profit or Loss.
Financial assets at fair value through profit or loss
(FVTPL)
Any financial asset that does not meet the criteria for
classification as at amortized cost or as financial assets
at fair value through other comprehensive income,
is classified as financial assets at fair value through
profit or loss.
Derecognition
The Company derecognies a financial asset only when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of
the asset to another entity.
Impairment of financial assets
The Company assesses impairment based on expected
credit loss (ECL) model on the following:
• Financial assets that are measured at amortized cost.
• Financial assets (excluding equity instruments)
measured at fair value through other comprehensive
income (FVTOCI).
ECL is measured through a loss allowance on
the following basis after considering the value of
recoverable security:
• The 12 months expected credit losses (expected
credit losses that result from those default events
on the financial instruments that are possible within
12 months after the reporting date)
• Full lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of financial instruments)
The Company follows ‘simplified approach’ for
recognition of impairment on trade receivables
or contract assets resulting from normal business
transactions. It recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, from the
date of initial recognition.
For recognition of impairment loss on other financial
assets, the Company determines whether there has
been a significant increase in the credit risk since
its initial recognition. If credit risk has increased
significantly, lifetime ECL is provided. For assessing
increase in credit risk and impairment loss, the Company
assesses the credit risk characteristics on instrument-
by-instrument basis.
Impairment loss allowance (or reversal) recognized
during the period is recognized as expense/income in
profit or loss.
b) Financial Liabilities
The Company’s financial liabilities include loans and
borrowings, trade payable, accrued expenses and
other payables.
Initial recognition and measurement
All financial liabilities at initial recognition are
classified as financial liabilities at amortized cost or
financial liabilities at fair value through profit or loss,
as appropriate. All financial liabilities are recognized
initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable
transaction costs.
Financial Liabilities classified as Amortised Cost:
All Financial Liabilities other than derivatives are
measured at amortised cost at the end of subsequent
accounting periods. Interest expense that is not
capitalised as part of costs of assets is included as
Finance costs in Profit or Loss.
Derecognition
A financial liability is derecognized when the obligation
under the liability is discharged / cancelled / expired.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in of
profit or loss.
15) Recent Ind AS and other pronouncements:
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. For the year ended March
31, 2025, MCA has not notified any new standards
or amendments to the existing standards applicable
to the Company.
Footnotes:
(i) The amount of rental income from the investment property during the year ended March 31, 2025: ' 18.72 lakhs (Previous
Year ' 18.72 lakhs)
(ii) The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance
and enhancements. There is no restrictions on the realisability of investment properties or the remittance of income and proceeds
of disposal on the Company.
(iii) The fair value of investment property as on March 31, 2025 has been determined by external independent registered valuers as
defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, having appropriate recognised professional
qualification and recent experience in the location and category of the property being valued.
(iv) The fair value measurement for all the investments properties has been categorised as Level 2 based on the inputs to the valuation
technique used. Considering the type of the assets, “Market approach" to estimate the fair value of the subject properties is adopted.
(v) The fair value of investment property as at March 31, 2025: ' 142.00 lakhs (Previous year ' 121.90 lakhs)
Footnotes:
(i) Details of country of incorporation and % controlling interest have been disclosed in note no. 1(B)(ii) of the consolidated financial
statements for the year ended March 31, 2025.
(ii) The Company has completed the acquisition of 35.56% profit share with a controlling interest in Kinam Engineering Industries
(the “Firm") on September 26, 2023 for the purchase consideration of ' 7,996.66 lakhs in cash. The partners of the Firm agreed for
the succession of the business of the Firm into a Company. The business of the Firm was succeeded into a Company named Kinam
Engineering Industries Private Limited effective January 1, 2024. All the partners of the Firm received shares in this Company in
the proportion of their profit share in the Firm. The partners have agreed to dissolve / wind up the affairs of the Firm and terminate
the partnership deed effective from November 11, 2024.
(ii) General reserve
The general reserve represents amounts appropriated out of retained earnings based on the provisions of The Companies Act
prior to its amendment.
(iii) Capital reserve
Amount pertaining to forfeiture of shares
(iv) Retained earnings
Retained earnings represents net profits after distributions and transfers to other reserves.
(v) Remeasurements of defined benefit plans
Gains / Losses arising on remeasurements of defined benefit plans are recognized in the other comprehensive Income as per IND
AS-19 and shall not be reclassified to the statement of profit or loss in the subsequent years.
(vi) Capital redemption reserve
Capital redemption reserve is created by the company for redemption of preference share from its profits.
(vii) Equity component of compound financial interest
The component parts of compound financial instruments issued by the Company are classified as financial liabilities and equity
in accordance with the substance of the contractual arrangements and the definitions of financial liability and equity instrument.
Financial Liabilities are recognised at fair value net of directly attributable transaction costs and subsequently measured at
amortised cost using effective interest method.
(viii) Preference share capital
Current year Nil (Previous year 18,75,152 Nos.) 9.50% redeemable preference shares of ' Nil (Previous year ' 2/- each)
Non-Current Borrowings
1) Term Loan(s) from Bajaj Finance Limited are secured by mortgage of certain immovable property(ies) owned by the Promoters.
The Term Loans are repayable in 76 and 79 quarterly instalments commencing from November, 2017 and May, 2018 respectively
and carries an interest of 11.70% p.a. (March 31, 2024: 11.70% p.a.) payable monthly. This term loan is repaid in full and closed
during the year 2024-25.
During the year the Company has availed a fresh term loan from Bajaj Finance Limited, which is secured by first pari passu charge
on the entire present and future movable and immovable fixed assets of the Company and second pari passu charge on the entire
present and future current assets of Company. The Term Loan is repayable in 66 equal monthly instalments commencing from
October 2025 and carries an interest of 9.25% p.a. (March 31, 2024: Nil) payable monthly.
2) Term Loan from HDFC Bank Limited is secured by first pari passu charge on the entire present and future movable (plant and
machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future current
assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company.
The Term Loan is repayable in 63 unequal monthly instalments commencing from November 2022 and carries an interest of 9.59%
p.a. (March 31, 2024: 9.90% p.a.) payable monthly.
3) Term Loan from Citibank N.A. is secured by first pari passu charge on the entire present and future movable (plant and machinery)
and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz.
stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term
Loan is repayable in 16 equal quarterly instalments commencing from June, 2022 and October, 2022 and carries an interest of
11.68% p.a. (March 31, 2024: 11.68% p.a) payable monthly.
4) Term Loan (foreign currency loan) from Citibank N.A. is secured by first pari passu charge on the entire present and future movable
(plant and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future
current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the
Company. The Term Loan is repayable in 16 equal quarterly instalments commencing from March, 2023 and carries an interest of
8.30% p.a. (March 31, 2024: 8.30% p.a.) payable monthly.
5) Term Loan(s) from State Bank of India are secured by first pari passu charge on the entire present and future movable (plant
and machinery) and immovable fixed assets of the Company and second pari passu charge on the entire present and future
current assets viz. stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the
Company. The Term Loans are repayable in 48 equal monthly instalments commencing from October, 2019 respectively and
carries an interest of 9.80% p.a. (March 31, 2024: 9.80% p.a.) payable monthly. This term loan is repaid in full and closed during the
financial year 2024-25.
6) Term Loan from ICICI Bank is secured by first pari passu charge on the entire present and future movable (plant and machinery)
and immovable fixed assets of the Company and second pari passu charge on the entire present and future current assets viz.
stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts of the Company. The Term
Loan is repayable in 48 equal monthly instalments commencing from March 2024 and carries an interest of 9.37% p.a. (March 31,
2024: 9.37%) payable monthly.
7) Term Loan from Axis Finance Limited is secured by first pari passu charge on the entire present and future movable and immovable
fixed assets of the Company and second pari passu charge on the entire present and future current assets of Company. The Term
Loan is repayable in 53 equal monthly instalments commencing from October 2024 and carries an interest of 10.15% p.a. (March
31, 2024: 10.05% p.a.) payable monthly.
8) Vehicle Loans availed from HDFC Bank are secured by hypothecation of respective vehicles taken on loan. Each loan is repayable
in equal monthly instalments from the month subsequent to the disbursement of the loan. Interest is payable on monthly basis and
ranges from 6.25% p.a to 10.00% p.a. (March 31, 2024: 6.25% p.a to 10.00% p.a.)
Current Borrowings
1) Working capital facilities including packing credit and foreign bill discounting from HDFC Bank Limited are secured by first
pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 8.43% p.a. (March
31, 2024: 9.00% p.a.) and for other facilities is SOFR plus 250 bps [March 31, 2024: SOFR plus 250 bps].
2) Working capital facilities including packing credit and foreign bill discounting from Citibank N.A. are secured by first pari passu
charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods, consumable
stores and spares and book debts of the Company and second pari passu charge on the entire present and future movable
(plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 10.00% p.a. (March 31,
2024: 10.00% p.a.)
3) Working capital facilities including packing credit and foreign bill discounting from ICICI Bank Limited are secured by first
pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of interest for cash credit is 9.25% p.a. (March
31, 2024: 9.28% p.a.)
4) Working capital loan facilities including packing credit and foreign bill discounting from State Bank of India are secured by secured
first pari passu charge on the entire present and future current assets viz. Stocks of raw material, stock in process, finished goods,
consumable stores and spares and book debts of the Company and second pari passu charge on the entire present and future
movable (plant and machinery) and immovable fixed assets of the Company. The rate of Interest for cash credit is 9.35% p.a. (March
31, 2024: 9.35% p.a.). This facility is repaid and closed during the financial year 2024-25.
5) Purchase Bill Discounting/ Short Term Revolving Loan facility from Bajaj Finance Limited are secured by mortgage of certain
immovable property owned by the Promoters and carries an interest of 8.70% p.a. (March 31, 2024: 9.35% p.a.) payable monthly.
6) The quarterly statement of stock and book debt filed by the Company with the banks are in agreement with the books of account
with no material discrepancies.
List of immovable properties of the Company is as under:
(i) Plot No A/6, R.S. No 153, New Block No 140, Maroli to Ubhrat Road, Village Nanod, Maroli, Navsari.
(ii) Plot No 200, Village Nadod, Navsari, Block B-3, Navsari.
(iii) Block No. 200 Paiky, Plot No. B/1/4, Maroli to Ubhrat Road, Village Nanod, Maroli, Navsari.
(iv) Survey No-183/P1, Village Naroli, Silvassa.
(v) Plot No. H 106, R S No. 1425/P, 1435/P, 1431/P, 1416/P and 1424/P, Vitthal Udyognagar I ndustrial Area, Village Mogri, Taluka
Anand, District Kheda.
(vi) Plot No. I 107, 107/A and I-105, Revenue Survey No. 808/P, 809/P, 811/P, R S No. 426/P, 1427/P, 1428/P, 1429/P and 1430/P,
Village Mogri, Taluka Anand, District Kheda.
B. FINANCIAL RISK MANAGEMENT
The Company’s principal financial liabilities comprises of borrowings, trade payables and other payables. The main purpose of
these financial liabilities is to finance the operations of the Company. The principal financial assets includes trade receivables, other
receivables and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
(a) Market risk
Is the risk of loss of future earnings, fair values or cash flows that may result from a change in the price of a financial instrument,
as a result of interest rates, foreign exchange rates and other price risks. Financial instruments affected by market risks,
primarily includes loans, borrowings, foreign currency receivables and payables.
i) Interest rate risks
Interest rate risk can be either fair value interest rate or cash flow interest rate risk. Fair value interest rate risk is the risk of
changes in fair values of fixed interest bearing investments because of fluctuations in the interest rate. Cash flow interest rate
risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the
interest rates.
The Company’s interest rate risk arises from borrowings. Borrowings issued at fixed rates are exposed to fair value interest
rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported by the management of
the Company is as follows:
Fair value sensitivity analysis for floating-rate instruments
The Company accounts for floating-rate financial assets or financial liabilities at fair value through profit or loss.
If the interest rates had been 1% higher / lower and all other variables held constant, the company’s profit for the year ended
March 31, 2025 would have been decreased / increased by ' 255.82 lakhs (Previous Year ' 220.89 lakhs)
ii) Commodity Price Risks
The Company is affected by price stability of certain commodity due to significantly increased volatility of certain commodities,
the Company has entered into contracts with the customers that has provision to pass on the change in raw material prices. The
Company has risk management framework aimed at prudently managing the risk arising from volatility in commodity prices.
(b) Credit Risk Management:
It is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises
from cash and cash equivalents, investments as well as credit exposure to customers.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a
low credit risk.
Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics
of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on
credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
also has an external credit risk insurance cover with ECGC Policy. The Company uses Expected Credit Loss (ECL) Model to
assess the impairment loss or gain.
(c) Liquidity Risk Management:
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is
responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks
are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts based
on expected cash flows.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The management assessed that cash and cash equivalents, trade receivables, trade payables and other current liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.
The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current transaction
between willing parties.
The following methods and assumptions were used to estimate the fair value.
1. Non current financial assets / liabilities measured at amortised cost.
2. The Company enters into Derivative financial instruments with counterparties principally with Banks with investment grade
credit ratings. The Interest Rate swaps is valued using valuation techniques which employs the use of market observable
inputs namely, Marked-to-Market.
d) Other statutory information.
(i) The Company does not have any Benami property nor any proceeding has been initiated or pending against the Company for
holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall :
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) The Company has not recorded any transaction in the books of accounts that has been surrendered or disclosed as 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.
(viii) The Company has not been declared a wilful defaulter by any bank or financial institution or any of the lenders.
e) Exceptional item represents transaction cost related to acquisition of a subsidiary during previous year.
f) Disclosures as per Ind AS - 19 - Employee benefits
The Company make contributions towards provident fund, in substance a defined contribution retirement plan to the Regional
Provident Fund Commissioner for qualifying employees.
The Company make annual contributions to the Employees’ Gratuity Trust, for funding the defined benefit plans for
qualifying employees.
vi) Risk Exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below :
(a) Interest Rate Risk: While calculating the defined benefit obligation a discount rate based on government bonds yields
of matching tenure is used to arrive at the present value of future obligations. If the bond yield falls, the defined benefit
obligation will tend to increase and plan assets will decrease.
(b) Salary Risk: Higher than expected increases in salarywill increase the defined benefitobligation.
(c) Investment Risk: Iffuture investment returns on assets are lowerthan assumed in valuation, the scheme’s assetswill be
lower, and the funding level higher than expected.
k) Commitment
(i) Estimated amount of contracts remaining to be executed on capital account, net of advances and not provided for ' Nil
(Previous year ' 1,132.28 lakhs)
(ii) Letters of credit issued by the banks is ' 419.47 lakhs (Previous Year ' Nil)
l) Contingent liabilities not provided for:
(i) Claims not acknowledged as debts:
(a) Disputed Service Tax for the period from 2008 to 2013 is ' 16.47 lakhs (Previous Year ' 16.47 lakhs) pending before
CESTAT, against which the Company has made payment of ' 5.19 lakhs(Previous Year ' 5.19 lakhs).
(b) Disputed Service Tax for the period from 2012 to 2015 is ' 29.07 lakhs (Previous Year ' 29.07 lakhs) pending before
CESTAT, against which the Company has made payment of ' 5.09 lakhs(Previous Year ' 5.09 lakhs).
(c) Disputed Service Tax for the period from 2013 to 2017 is ' 22.92 lakhs (Previous Year ' 22.92 lakhs) pending before
CESTAT, against which the Company has made payment of ' 4.01 lakhs(Previous Year ' 4.01 lakhs).
(ii) Corporate guarantee provided by the Company to third parties on behalf of subsidiary is ' 2,100 lakhs (Previous year ' Nil)
m) Discontinued operations:
(i) Description of discontinued operations:
(a) The Company had chemical manufacturing operations at Plot No.B-1,B-3,B-4 & A-7, Maroli Udyognagar, Maroli, Navsari,
Gujarat for manufacture of chemical product.
The Company had passed a circular resolution dated May 22, 2020for discontinuing of its chemical unit operations at Maroli.
(b) The Company started disposing of its Assets in the year 2020-21 and completed the process on March 31, 2024.
(ii) Business or geographical segment:
The Discontinued Unit was engaged in the business of chemicals and had business establishment only in India.
(iii) The amount of revenue and expenses in respect of the ordinary activities attributable to the discontinued operations
during the current financial reporting year are as under :
o) Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas
for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and
rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by
the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule
VII of the Companies Act, 2013:
p) In terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, if financial statement contains both the consolidated financial
statements and standalone financial statements, no separate disclosure on segment information is required to be given in the
standalone financial statements. Accordingly, segment information has been disclosed in the consolidated financial statements
of the Company.
q) Subsequent events post balance sheet
i) The Board of directors has recommended a dividend @ 55% (' 1.10) per equity share at its meeting held on May 19, 2025
which is subject to approval of shareholders.
r) Previous year’s figures have been regrouped and/or rearranged, wherever considered necessary.
As per our report of even date attached For and on behalf of the board
For M M Nissim & Co LLP Himanshu Patel Aalap Patel
Chartered Accountants Managing Director Director
Reg. No. 107122W / W100672 DIN - 00202312 DIN - 06858672
Hiren P Muni Achal Thakkar Naveen Kandpal
Partner Company Secretary Chief Financial Officer
Membership No. 142067 ACS 30459 ACA 406038
Anand, Dated May 19, 2025 Anand, Dated May 19, 2025
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