m) Provisions, contingent liabilities and contingent assets
Provisions are recognised when there is a present obligation as a result of past event, it is probable that the
company will be required to settle the obligation and a reliable estimate of the amount of obligation can be
made. Where the effect of time value of money is material, the amount of provision is the present value of
the expenditure to be required to settle the obligation. These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the
amount of the obligation cannot be made. The company does not recognise contingent liabilities but the
same are disclosed in the notes.
Contingent assets are not recognized in the financial statements since this may result in the recognition of
income that may never be realized.
n) Financial instruments
Initial recognition:
The company recognizes financial assets and liabilities when it becomes a party to the contractual provisions
of the instruments. All financial assets and liabilities are recognized at fair value on initial recognition.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities
(other than the financial assets and liabilities at fair value through profit and loss) are added to or deducted
from the fair value of financial assets and liabilities, as appropriate, on initial recognition. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and liabilities at fair value through
profit or loss are recognized immediately in profit or loss. However, trade receivables that do not contain a
significant financing component are measured at transaction price.
Subsequent measurement:
i) Financial assets carried at amortized cost:
A financial asset is subsequently measured at amortized cost if it is held within a business model whose
objective is to hold the asset 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.
ii) Financial assets at fair value through other comprehensive income.
A financial asset is subsequently measured at fair value through other comprehensive income if it 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. Further, in cases where
the Company has made an irrevocable election based on its business model, for its investments which are
classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive
income.
iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories is subsequently fair valued through
profit or loss.
De-recognition of financial asset
The company de-recognises financial assets when the contractual right to the cash flows from the asset
expires or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another party.
iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method. The
effective method is a method of calculating the amortization cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest is the rate that exactly discounts estimated
future cash payments through the expected life of the financial liability to the net carrying amount on initial
recognition.
De-recognition of financial liability
The company de-recognises financial liabilities when the company’s obligations are discharged, cancelled
or expired. The difference between the initial carrying amount of the financial liabilities and their redemption
value is recognized in the statement of profit and loss over the contractual terms using the effective interest
method.
o) Earning per equity share
Basic earning per equity share is computed by dividing the net profit attributable to the equity shareholders
of the company by the weighted average number of equity shares during the period. The company did not
have any potentially dilutive securities in any of the years presented.
The number of equity shares are adjusted retrospectively for all periods presented for any share splits and
bonus shares issues including for changes effected prior to the approval of financial statements by the
board of directors.
p) Cash flow statement
Cash flows are reported using indirect method whereby the profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and items of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financial activities of the company are segregated.
q) Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders i.e the year
in which the dividends are approved and interim dividends are recorded as a liability on the date of
declaration by the company’s board of directors.
r) Government Grants
Government grants are not recognized until there is reasonable assurance that the company will comply
with the conditions attaching to them and that the grants will be received .
Government grants related to revenue are recognized on a systematic basis in the Statement of Profit and
Loss over the periods necessary to match them with the related costs which they are intended to compensate.
When the grant relates to an asset, it is recognized as deferred revenue in the Balance sheet and transferred
to the statement of Profit and Loss on a systematic and rational basis over the useful lives of the related
assets.
Export benefits available under prevalent schemes are accrued as revenue in the year in which goods are
exported when there is reasonable assurance that the conditions attached to them will be completed and
the amounts will be received.
RECENT ACCOUNTING 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. During the year ended
March 31, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind AS 116
Leases, relating to sale and lease back transactions, applicable from April 1, 2024. The Company has
assessed that there is no significant impact on its financial statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange
Rates. These amendments aim to provide clearer guidance on assessing currency exchangeability and
estimating exchange rates when currencies are not readily exchangeable. The amendments are affective for
annual periods beginning on or after April 1, 2025. The Company is currently assessing the probable
impact of these amendments on its financial statements.
Rights, preferences and restrictions attached to Equity Shares
The Company has only one class of Equity shares having a face value of ' 10 each. Each holder of equity
share is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to
approval of shareholders in the Annual General Meeting, except in the case of interim dividend. In the
event of liquidation of Company, the holders of equity share will be entitled to receive the remaining
assets of the Company after distribution of all preferential amounts, in proportion to the number of
equity shares held by the shareholders.
Nature of reserves:
a. Capital Reserve : Capital reserve represents incentive given by the government in the year 1995 for
furtherance of industry.
b. Securities premium : Securities premium represents premium received on issue of shares. The reserve is
utilised in accordance with the provisions of Sec.52 of Companies Act, 2013.
c. General reserve : The general reserve is created by way of transfer of part of the profits before declaring
dividend pursuant to the provisions of Companies Act, 1956. Mandatory transfer to general reserve is
not required under the Companies Act, 2013.
d. Retained earnings : Retained earnings are the profits that the company has earned till date less transfers
to general reserves and dividends paid to shareholders.
e. Other Comprehensive Income:- It contains cumulative gain or loss arising on revaluation of equity
instruments measured at fair value through OCI and cumulative acturial gain or loss on account of
re-measurement of defined employee benefit plans.
Note:
a. Interest from banks and others includes interest earned on fixed deposits with banks and from customers
on delays in payments.
These financial assets are measured at amortised cost.
b. The dividend income is earned from current investments designated as at FVTPL and from non-current
term investments designated as at FVTOCI.
Note:
a. The Company has considered business segment as the primary segment for disclosure. The products
included in each of the reported domestic business segments are
- Chemicals - Fatty acids
- Soap - Toilet soap and Soap products
- Power - Power generated by Biomass Power Plant and Wind Energy Generators (WEGs)
b. Segment revenue relating to each of the above domestic business segments includes income from processing
on behalf of others wherever applicable.
c. The chief operational decision maker monitors the operating results of its business segments separately for
the purpose of making decisions about resource allocation and performance assessment. Operations
segments have been identified considering the following.
- the nature of products and services
- the differing risks and returns
- the organization structure and
- the internal financing reporting systems
d. The Company predominantly operates in Indian market and has no production facilities or any significant
sales outside India. Hence there are no separate reportable geographical segments.
The Company has disclosed financial instruments such as cash and cash equivalents, trade receivables,
trade payables and Short Term Borrowings at carrying value because their carrying amounts are a reasonable
approximation of the fair values due to their short-term nature.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as 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. Methods and assumptions used to estimate the fair values are consistent with those
used for the year ended 31st March, 2024.
Financial assets and liabilities measured at fair value as at Balance Sheet date
The fair values of investments in mutual funds is based on the net asset value ['NAV'] as stated by issuers
of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the
price at which the issuer will issue further units of mutual funds and the price at which issuers will redeem
such units from the investors.
38. FAIR VALUE HIERARCHY
The fair value of financial instruments as referred to above note have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to
quoted prices in active markets for identified assets or liabilities [Level 1 measurements] and lowest
priority to unobservable inputs [Level 3 measurements]
The categories used are as follows:
Level 1: Quoted prices for identified instruments in an active market.
Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data.
This note provides information about how the Company determines fair values of various financial assets
and financial liabilities. Fair value of the Company's financial assets and financial liabilities that are
measured at fair value on a recurring basis. Some of the Company's financial assets are measured at the
fair value at the end of each reporting period.
Note: The fair value of trade receivables, trade payables, loans and other current financial assets and liabilities
is considered to be equal to the carrying amount of these items due to their short-term nature.
39. Financial Risk Management
The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, credit
risk and foreign currency risk. The Company's senior management has the overall responsibility for
establishing and governing the Company's risk management framework. The Company's risk management
policies are established to identify and analyse the risks faced by the Company, to set and monitor
appropriate risk limits and controls, periodically review the changes in market conditions and reflect the
changes in the policy accordingly. The key risks and mitigating actions are also planned before the Board
of Directors of the Company.
A. Credit risk
Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligation.
To manage this, the company periodically assesses the financial reliability of customers, taking into
account the financial condition, current economic trends and analysis of historical bad debts and ageing
of the account receivables. Individual risk limits are set accordingly.
Concentration of credit risk with respect to trade receivables are limited, due to Company's customer base
being large and diverse. All trade receivables are reviewed and assessed for default on a monthly basis.
Historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered
to be a single class of financial assets.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks and money
market liquid mutual funds.
The Company's maximum exposure of credit risk as at March 31, 2025, and March 31, 2024 is the
carrying value of each class of financial assets.
B. Foreign currency risk management
The Company is subject to the risk that changes in foreign currency values impact the Company's export
revenues and import of raw materials. The Company is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to US Dollars.
The Company manages currency exposures within prescribed limits. The aim of the Company's approach
to management of currency risk is to leave the Company with no material residual risk.
The following table presents foreign currency risk from non-derivative financial instruments as of
March 31, 2025 and March 31,2024.
Foreign currency sensitivity analysis
A 5% strengthening of the INR against key currencies to which the Company is exposed would have led
to approximately an additional ' 44.35 Lakhs gain in the Statement of Profit and Loss (2023-24: ' 50.46
Lakhs gain). A 5% weakening of the INR against these currencies would have led to an equal but opposite
effect.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the year-end for a 5% change in foreign currency rates. The company has not
entered into any derivative contracts like foreign exchange forward contracts to hedge the risk of exposure
in foreign currency.
C. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become
due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due. The Company maintained a cautious liquidity strategy,
with a positive cash balance throughout the year ended March 31,2025 and March 31,2024. Cash flow
from operating activities provides the funds to service the financial liabilities on a day to day basis.
The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going
basis to meet operational needs. Any short-term surplus cash generated, over and above the amount
required for working capital management and other operational requirements, is retained as cash and
cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and
mutual funds with appropriate maturities to optimise the cash returns on investments while ensuring
sufficient liquidity to meet its liabilities. All the payables such as trade payables and borrowings fall due for
payment within one year.
d. Capital Management
Equity share capital and other equity are considered for the purpose of Company's capital management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to
optimise returns to shareholders. The capital structure of the Company is based on Management's judgment
of its strategic day-to-day needs with a focus on total equity so as to maintain investor, creditors and
market confidence.
The Management and the Board of Directors monitors the return on capital as well as the level of dividends
to shareholders. The Company may take appropriate steps in order to maintain, or is necessary, adjust its
capital structure.
42. Dividend
The Board of Directors at its meeting held on May 26, 2025 have recommended a dividend of ' 0.50
per share of face value of '10/- each for the financial year ended 31.3.2025. The above is subject to
approval at the ensuing Annual general meeting of the company and hence is not recognised as a liability.
43. i) Loans and advances in the nature of loans given to company in which Directors are interested
' NIL.(March 31,2024 : ' NIL).
ii) Details of investments, loans / guarantees made u/s 186 of Companies Act 2013 : ' NIL
(March 31,2024 : ' NIL).
44. a. Balances in personal accounts of various parties are subject to confirmation by and reconciliation with
the said parties.
b. In the opinion of the management, Current Assets, Loans and advances have a value on realization in
the ordinary course of business equal to the values at which they are stated.
c. There are no transactions that have been surrendered or disclosed as income during the year in tax
assessments under Income-Tax which have not been recorded in the books of account.
d. There are no charges or satisfaction of charges yet to be registered in the ROC beyond statutory period.
e. The company has not traded or invested in crypto currency/virtual currency during the year.
f. The company has not advanced or loaned or invested funds to any other person or entity, including
foreign entities (Intermediaries) with the understanding that the intermediaries shall 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 to or on behalf of ultimate
beneficiaries.
The company has not received any funds from any person or entity, including foreign entities (funding
party) with the understanding that the company shall 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 on behalf of ultimate beneficiaries
vi. Nature of CSR activities - Promoting Education, setting up of old age homes
vii. Details of related party transactions - ' Nil
viii. Provision made with respect to a liability incurred by entering in to a contractual obligation - ' Nil
46. Previous year's figures have been regrouped wherever necessary to confirm to the current year classification.
Signatures to Note Nos. 1 to 46 forming part of the Accounts
As per our report of even date :
For CHEVUTURI ASSOCIATES., For and on behalf °f the Board
Chartered Accountants
Firm's Registration No.000632S P NARENDRANATH CHOWDARY Chairman
RAGHUNADHA RAO BALINENI, Partner j. MURALI MOHAN Managing Director
Membership No. 028105
Camp : Guntur K. RAGHURAM Secretary & DGM (Fin.)
Date : 26 May 2025
UDIN : 25028105BMJLKL6189
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