h) Provisions, contingent liabilities, contingent assets and commitments
Provisions are recognised when the company has a present obligations (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligations and a reliable estimate can be made of the amount of the
obligations. If the effect of the time value of money is material, provisions are discounted using
equivalent period government securities interest rate. Unwinding of the discount is recognised in
the statement of Profit and loss as a finance cost. Provisions are reviewed at each balance sheet
date and are adjusted to reflect the current best estimate.
Contingent liabilities are disclosed 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 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. Information on
contingent liability is disclosed in the Notes to be Financial Statements.
Contingent assets are not recognised. However when the realisation of income is virtually certain,
then the related asset is no longer a contingent asset, but it is recognised as an asset.
i) Current and Non-current Classification
The company presents assets and liabilities in statement of financial position based on current /
non-current classification.
The company has presented non-current assets and current assets before equity, non-current
liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013
notified by Ministry of Corporate Affairs.
An assets is classified as current when it is :
a) Expected to be realised or intended to be sold or consumed in normal operating cycle.
b) Held primarily for the purpose of trading.
c) Expected to be realised within twelve months after the reporting period or
d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
All other assets are classified as non-current
A liability is classified as current when it is :
a) Expected to be settled in normal operating cycle
b) Held primarily for the purpose of trading
c) Due to be settled within twelve months after the reporting period or
d) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period
All other liabilities are classified as non-current
The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents. Deferred tax assets and liabilities are classified as non¬
current assets and liabilities. The company has identified twelve months as its normal operating
cycle.
j) Fair Value Measurement :
The company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either.
a) In the principal market for the asset or liability or
b) In the absence of a principal market, in the most advantageous market for the asset or
liability.
The principal or the most advantageous market must be accessible by the company. The fair value
of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best
interest.
A fair value measurement of non-financial asset takes into account a market participants ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole.
a) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
b) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
c) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
k) Offseffing Financial Instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable rights to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The
legally enforceable rights must not be contingent on future events and must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of the company
or counterparty.
iii) Significant Accounting Judgement, Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future period. The key assumptions concerning the
future and other key sources of estimation uncertainty at the reporting date, that have a significnat
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The company based its assumptions and estimates on parameters
available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising
that are beyond the control of the company. Such changes are reflected in the assumptions when they
occur.
Property, Plant and Equipment
Internal technical team or user team assess the remaining useful lives and residual value of property,
plant and equipment. Management believes that the assigned useful lives and residual value are
reasonable.
Contingencies
Management has estimated the possible outflow of resources at the end of each annual reporting
period, if any, in respect of contingencies / claim / litigations against the company as it is not possible to
predict the outcome of pending matters with accuracy.
Impairment of Financial Assets
The impairment provisions for financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company's past history, existing market conditions as
well as forward looking estimates at the end of each reporting period.
Impairment of Non-Financial Assets
The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an
asset's or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent to those from other assets or groups of assets. Where the carrying amount of an asset or
CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. In determining fair value less cost of disposal recent
market transactions are taken into account. If no such transactions can be identified, an appropriate
valuation model is used. These calculations are corroborated by valuation multiples or other available
fair value indicators.
Defined Benefits Plans
The Cost of the defined benefit plan and other post-employment benefits and the present value of
such obligation are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
Fair Value Measurement of Financial Instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash flow (DCF) model. The inputs to these models are taken
from observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as liquidity risk,
credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments.
16.1. The Company has availed cash credit facility and Bank Guarantee Limit with IndusInd Bank Ltd. and
created first charge on all current assets of the company comprising of stock of raw material, WIP,
Finished Goods, receivables, book debts and other current assets, on movable fixed assets of the
company both present and future except other assets exclusively financed by other banks, and
equitable mortgage value of office premises of the Company, office premises of Inter State Capital
Markets (P) Ltd (enterprise over which Directors and relatives of Directors having significant
influence), and Fixed Deposit Receipt of ' 16.11 Lakhs has been pledged with IndusInd Bank Ltd. and
also the personal guarantee of Mr. Sanjay Jain, Director of the Company.
17.1. Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises
Development Act, 2006 (MSMED, 2006) have
a. Principal amount outstanding: ^ 91.23 Lakhs (As at 31.03.2024: ^ 32.43 Lakhs)
b. Interest due thereon: ^ Nil (As at 31.03.2024: ^ Nil)
c. Interest paid by the Company in terms of Section 16 of MSMED 2006 alongwith amount of the
payment made to the suppliers beyond the appointed day during the year: ^ Nil (As at 31.03.2024: ^
Nil)
d. Interest due and payable for the period of delay in making payment (which has been paid but
beyond the appointed day during the year) but without adding the interest specified under MSMED
2006: ^ Nil (As at 31.03.2024: ^ Nil)
e. Interest accrued and remaining unpaid: ^ Nil (As at 31.03.2024: ^ Nil)
f. Further interest remaining due and payable in the succeeding years: ^ Nil (As at 31.03.2024: ^ Nil)
17.2. Trade Payables ageing Schedule (Refer Note No. 34)
30. Disclosures as per Section 186(4) of the Companies Act, 2013:
Details of Investments made are given under the respective heads.
During the year, the Company has not granted any loans and advances (in the nature of loan).
31. Based on the information available with the company, the balance due to Micro and Small
enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) is ^ 91.23 Lakhs (P.Y. ^ 32.43 Lakhs). Further, no interest during the year has been
paid or payable under the terms of the MSMED Act, 2006. The above information regarding Micro,
Small and Medium Enterprises has been determined to the extent such parties have been identified
on the basis of information available with the Company. This has been relied upon by the Auditors.
32. SEGMENT REPORTING
The Company does not have more than one reportable segment in line with the Indian Accounting
Standards ("Ind AS") during the year and hence, segment reporting is not applicable.
38. CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital 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 manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus
net debt.
The gearing ratio at end of the reporting period was as follows:
39 FINANCIAL INSTRUMENTS
i Valuation
All financial instruments are initially recognized and subsequently re-measured at fair value as
described below:
a) The fair value of investment in quoted Equity Shares is measured at rate reflecting in demat
statement as available with the management.
b) The fair value of investment in unquoted Equity Shares is measured at rate reflecting in demat
statement as available with the management or at cost as no information is available with the
management.
c) The fair value of the remaining financial instruments is determined using discounted cash flow
analysis.
Note:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the
stock exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market are valued at rate
reflecting in demat statement as available with the management or at cost as no information is available
with the management.
ii. Foreign Currency Risk : N.A.
iii. Interest Rate Risk:
The following table shows exposure of the Company's borrowings to interest rate changes at the end of
the reporting period:
iv. Credit Risk:
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or
pay the amounts due, causing financial loss to the company. Credit risk arises from company's
activities in investments and outstanding receivables from customers.
The Company has a prudent and conservative process for managing its credit risk arising in the
course of its business activities. Dues from customers to whom sales are made on credit are
generally recovered within credit days allowed to the customer.
v. Liquidity Risk:
Liquidity risk arises from the Company's inability to meet its cash flow commitments on time.
Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable
securities (^ 128.18 Lakhs as on 31st March 2025; ^ 175.65 Lakhs as on 31st March 2024). Company
accesses financial markets to meet its liquidity requirements.
The Company's liquidity is managed centrally with operating units forecasting their cash and
liquidity requirements. Treasury pools the cash surpluses from across the different operating units
and then arranges to either fund the net deficit or invest the net surplus in the market.
B. The company has adopted Projected Unit Credit Method for Gratuity. Every employee who has
completed five years or more of services gets Gratuity on terms not lower than the amount payable
under the Payment of Gratuity Act ,1972. The aforesaid scheme is funded with LIC. The liability of
Gratuity is recognised on the basis of actuarial valuation carried out by Dr. R. Kannan. The following
table summarizes the components of net benefit expenses recognised in Statement of Profit &
Loss, etc:
I Changes in Present Value of Obligation
42 Contingent Liabilities (to the extent not provided for)
i) Bank Guarantee
a. The Company has taken Bank Guarantee of '83.22 Lakhs (P.Y. '83.22 Lakhs) from IndusInd Bank Ltd
against pledge of Fixed Deposit receipts of ^ 19.24 Lakhs (P.Y. ^ 18.76 Lakhs) which has been given in
favour of Brahmaputra Cracker & Polymer Ltd.
b. The Company has taken Bank Guarantee of ^ 55 Lakhs (P.Y. ^ 55 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 9.42 Lakhs (P.Y. ^ 8.78 Lakhs) which has been given in favour of JK
Tyre & Industries Ltd.
c. The Company has taken Bank Guarantee of ^ 10 Lakhs (P.Y. ^ 10 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 2.19 Lakhs (P.Y. ^ 2 Lakhs) which has been given in favour of
Deepak Phenolics Ltd.
d. The Company has taken Bank Guarantee of ^ 15 Lakhs (P.Y. ^ 15 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 0.58 Lakh (P.Y. ^ 0.58 Lakh) which has been given in favour of HPCL
Mittal Energy Ltd.
e. The Company has taken Bank Guarantee of ^ 5 Lakhs (P.Y. ^ 5 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 1 Lakh (P.Y. ^ 1 Lakh) which has been given in favour of
Commissioner, Excise, Department of Prohibition, Excise and Registration, Government of Bihar.
f. The Company has taken Bank Guarantee of ^ 10 Lakhs (P.Y. ^ 10 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 2 Lakhs (P.Y. ^ 2 Lakhs) which has been given in favour of Qwik
Supply Chain (P) Ltd.
g. The Company has taken Bank Guarantee of ^ 2 Lakhs (P.Y. ^ 2 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 0.40 Lakh (P.Y. ^ 0.40 Lakh) which has been given in favour of Laxmi
Organic Industries Ltd.
h. The Company has taken Bank Guarantee of ^ 15 Lakhs (P.Y. ^ 15 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 3 Lakhs (P.Y. ^ 3 Lakhs) which has been given in favour of HMEL
Organics (P) Ltd.
i. The Company has taken Bank Guarantee of ^ 5 Lakhs (P.Y. ^ 5 Lakhs) from IndusInd Bank Ltd against
pledge of Fixed Deposit receipts of ^ 1 Lakh (P.Y. ^ 1 Lakh) which has been given in favour of Marico Ltd.
j. The Company has taken Bank Guarantee of ^ 18.05 Lakhs (P.Y. ^ 18.05 Lakhs) from IndusInd Bank Ltd
against pledge of Fixed Deposit receipts of ^ 7.56 Lakhs (P.Y. ^ 7.09 Lakhs) which has been given in
favour of Assam Petro Chemicals Ltd.
k. The Company has taken Bank Guarantee of ^ 7.50 Lakhs (P.Y. ^ 7.50 Lakhs) from IndusInd Bank Ltd
which has been given in favour of Indian Oil Corporation Ltd.
l. The Company has taken Bank Guarantee of ^ 7.50 Lakhs (P.Y. ^ 7.50 Lakhs) from IndusInd Bank Ltd
which has been given in favour of Bharat Petroleum Corporation Ltd.
ii) Income Tax
a. The Company has received demand amounting to ^ 0.33 Lakhs from Income Tax Department relating
to assessment of T.D.S from F.Y. 2008-09, F.Y. 2023-24 and F.Y. 2024-25 against which Company will file
necessary rectification within appropriate time.
b. The company has received demand amounting to ^ 95.42 Lakhs from Income Tax Department relating
to A.Y. 2017-18 u/s 143(3) of the Income Tax Act, 1961 against which Company has filed an appeal with
CIT (Appeal - 3), Kolkata. However, ^ 96.95 Lakhs has been paid by the company against the said
demand. The Company expects to sustain its position on ultimate resolution of the appeals.
44. The figures for the previous year have been rearranged and/or regrouped wherever considered necessary.
Signature to Note 1 to 44
For Patni & Co- For and on behalf of Board of Directors
Chartered Accountants
(Firm Reg. No. 320304E)
Sanjay Jain (DIN: 00167765)
A. Rajgarm Managing Director
(Partner)
Membership No. 300004
UDIN: 25300004BMMKIB1678
Siddhant Jain (DIN: 07154500)
Place : Kolkata Whole Time Director
Dated: The 24th day of May, 2025
Malay Das
Chief Financial Officer
Rashmi Sharma
Company Secretary
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