t) Provisions, contingent liabilities and contingent assets:
Provisions are recognised when the Company has a present obligation (legal or constructive) 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. Provisions are reviewed at each
Balance Sheet date and are adjusted to reflect the current best estimate.
If the effect of the time value of money is material, provisions are discounted using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to
the liability. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost.
Contingent liabilities are disclosed by way of a note to the financial statements when there is a possible obligation
arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or when there is a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
Contingent assets are not recognized in financial statements but disclosed when the inflow of economic benefits is
probable. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset
and is recognised.
u) Cash and cash equivalents:
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term
highly liquid investments 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 and bank overdrafts. These do not include
bank balances earmarked / restricted for specific purposes.
v) Cash flow statement:
Cash flows are reported using the indirect method, whereby profit / loss before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or
payments.
w) Earnings per share:
1) Basic earnings per share:
Basic earnings per share is calculated by dividing the profit / (loss) after tax attributable to owners of the Company
by the weighted average number of equity shares outstanding during the financial year.
2) Diluted earnings per share:
Diluted earnings per share is calculated by dividing the profit / (loss) after tax as adjusted for dividend, interest
and other charges to expense or income relating to dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted average number of
equity shares which could have been issued on the conversion of all dilutive potential equity shares.
x) Business combinations and Goodwill
Acquisitions of business are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition date fair values of the assets
transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity
interest issued by the Company in exchange of control of the acquiree. Acquisition related costs are recognised in
profit and loss as incurred.
A business combination involving entities or businesses under common control is a business combination in which
all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after
the business combination and the control is not transitory. The transactions between entities under common control
are specifically covered by Ind AS 103. Such transactions are accounted for using the pooling-of-interest method.
The assets and liabilities of the acquired entity are recognised at their carrying amounts of the Company's financial
statements.
Purchase consideration paid in excess / shortfall of the fair value of identifiable assets and liabilities including
contingent liabilities and contingent assets, is recognised as goodwill / capital reserve respectively, except in case
where different accounting treatment is specified in the court approved scheme.
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
business less accumulated impairment losses, if any.
y) Ind AS 108: Segment Reporting:
Ind AS 108 establishes standards for the way that public business enterprises report information about operating
segments and related disclosures about products and services, geographic areas, and major customers.
Based on “Management Approach” as defined in Ind AS 108 - Operating segments, the operating segments are
reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief
operating decision maker of the Company is responsible for allocating resources and assessing performance of the
operating segments and accordingly is identified as the chief operating decision maker.
Note 2.2 : Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. For the year ended March 31,2026, MCA has notified amendments to Ind
AS 21 - The Effects of Changes in Foreign Exchange Rates, Ind AS 1 - Presentation of Financial Statements, Ind AS 7 -
Statement of Cash Flows, Ind AS 107 - Financial Instruments: Disclosures and Ind AS 12, International Tax Reform - Pillar
Two Model Rules. The Company has reviewed the new pronouncements and based on its evaluation given necessary
impact (including additional disclosures) as applicable..
Capital reserve
Capital reserve includes amounts realised on forfeiture of shares and reserves acquired on previous amalgamations.
General reserve
General reserve consists of reserve created on account of the difference between the fair valuation of assets and liabilities
acquired by Company vis-a-vis the share capital it issued on amalgamation with its subsidiary companies vide Amalgamation
Scheme approved by the Honorable High Court of Bombay.
(ii) Unsecured preference shares
The 8% non- cumulative, redeemable preference shares amounting to '207 lakhs were allotted on February 11,2016.
The terms of redemption have been further extended to February 10, 2030.
(iii) Unsecured loans from financial institutions
Loans from financial institutions are secured against pledging of investments held by promoters in personal capacity.
It carries a rate of interest ranging from 14 % to 18 % p.a.
(iv) Unsecured loans from related parties
Unsecured loans from related parties do not have any specific repayment schedule. Hence it has been classified
under Short Term Borrowings. It carries a rate of interest 12 % p.a.
Note 23 : Financial instruments
(i) Capital management
For the purpose of the Company's capital management, equity includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital
management is to maximise the shareholder value. The Company's capital management objectives are to maintain
equity including all reserves to protect economic viability and to finance any growth opportunities that may be available
in future so as to maximise shareholders' value. The Company is monitoring capital using debt equity ratio as its base,
which is debt to equity. The Company manages its capital to ensure that the Company will be able to continue as a
going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Company consists of debt which includes the borrowings, cash and cash equivalents
including short term bank deposits, equity comprising issued capital and reserves. The gearing ratio for the year is as
under:
Fair Value Hiearchy :
The fair value hierarchy is based on the inputs to valuation techniques that are used to measure fair value that are
either observable or unobservable and consists of the following three levels :
Level 1- Level 1 heirarchy includes financial instruments measured using quoted prices and mutual funds are
measured using the closing net asset value (NAV).
Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs are required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3 - if one or more of the significant inputs is based on observable market data, the instrument is included in
Level 3.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following
methods and assumptions were used to estimate the fair values:
Cash and cash equivalents, other bank balances, trade and other receivables, trade and other payables and other
financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities or nature of
these instruments.
The fair value of Company's interest bearing borrowings are determined using amortised cost basis using a discount
rate that reflects issuer's borrowing rate as at the end of reporting date.
Financial risk management objectives:
The Company's activities exposes it to a variety of financial risk viz. market risks, credit risks and liquidity risks. In order
to manage the aforementioned risks, the Company has a risk management policy and a program that performs close
monitoring of and responding to each risk factors.
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 the foreign currency
exchange rates, interest rates and other market changes.
Foreign currency risk:
Foreign currency risk mainly arises from transactions undertaken by an operating unit in currencies other than its
functional currency. The carrying amount of Company's financial assets and financial liabilities denominated in foreign
currencies at the reporting date are as follows :
5% appreciation / depreciation of the respective foreign currencies with respect to the functional currency of the
Company would result in decrease / increase in the Company's profit before tax by approximately '21 lakhs (net) for
the year ended March 31,2025.
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 does not have significant floating interest rate borrowings during the
year ended March 31,2026 and March 31,2025. Hence, the Company is not exposed to significant interest rate risk
as at the respective reporting dates.
Credit risk:
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically
unsecured and are derived from revenue earned from customers located in India. Credit risk has always been
managed by the Company through continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss or gain.
Liquidity risk:
The responsibility for liquidity risk management rests with the Board of Directors, which has an appropriate liquidity
risk management framework for the management of the Company's short, medium and longterm funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities
by regularly monitoring forecast and actual cash flows.
B) Compensated absences
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the
end of the year end are treated as other long term employee benefits for measurement purpose. The Company's
liability is actuarially determined by an independent actuary using the Projected Unit Credit Method at the end of
each year. Actuarial losses / gains are recognised in the Statement of Profit and Loss in the year in which they
arise.
Note 25 : Operating leases
The Company has taken office, factory spaces and warehouses under cancellable operating leases for periods ranging
from 11 months to 3 years. Lease arrangements are usually renewable on mutually agreed terms and are cancellable by
written notice.
Note 26 : Segment reporting
Business Segment:
The Company operates in two segment viz. textile dyes and chemicals and electrical capacitors, however the segment
reporting for electrical capacitors is not disclosed separately, as the same does not qualify for separate disclosure as per
IND AS 108 on operating segments.
Note 29 : Expenditure on Corporate Social Responsibility (CSR)
There is no amount required to be spent by the Company during the year towards Corporate Social Responsibility in
terms of Section 135 of the Companies Act, 2013.
Note 30 : Managerial Remuneration
Total remuneration paid by the Company to its Directors including Managing Director (MD) was in accordance with the limits
prescribed under section 197 read with Schedule V of the Companies Act, 2013.
Note 33
(i) Impact of introduction of new Labour Codes:
On November 21, 2025, the Government of India notified the 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 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has
assessed the impact of the changes, consistent with the Labour Codes, draft rules and FAQs.
Considering the regulatory-driven nature of this impact, the Company has presented such incremental impact of
INR 90.39 lakhs in the standalone Statement of profit and loss for the year ended on March 31,2026. The Company
continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects
of the Labour Code and would provide appropriate accounting effect as appropriate.
d) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
e) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
f) 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:
(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
g) 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:
(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 on behalf of the Ultimate Beneficiaries,
h) The Company does not have any such transaction which is not recorded 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.)
i) The Company is not declared as willful defaulter by any bank or financial institution or other lender.
j) The Company does not have any subsidiary in India. All the subsidiaries are incorporated outside India and therefore
section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017 is not
applicable to the Company.
Note 34 : Quarterly Statements filed with Banks for Borrowings against Current Assets
The Company has sanctioned limit of borrowings from ICICI Bank Limited on security of current assets of ' 850.00 Lakhs.
The Company has filed quarterly returns or statements with ICICI Bank which are in agreement with the books of account
other than those as set out below:
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