n) Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognised when the Company has 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. Such provisions are determined
based on management estimate of the amount required
to settle the obligation at the balance sheet date. When
the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
standalone asset only when the reimbursement is
virtually certain.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
Contingent liabilities are disclosed on the basis of
judgment of management. These are reviewed at each
balance sheet date and are adjusted to reflect the current
management estimate.
Contingent assets are not recognized but are disclosed
in the financial statements when inflow of economic
benefits is probable.
o) Impairment of non-financial assets - property, plant
and equipment
The Company assesses at each reporting date as to
whether there is any indication that any property, plant
and equipment or group of assets, called cash generating
units (CGU) may be impaired. If any such indication exists
the recoverable amount of an asset or CGU is estimated
to determine the extent of impairment, if any. When it is
not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable
amount of the CGU to which the asset belongs.
An impairment loss is recognised in the Statement of
Profit and Loss to the extent, asset's carrying amount
exceeds its recoverable amount. The recoverable amount
is higher of an asset's fair value less cost of disposal
and value in use. Value in use is based on the estimated
future cash flows, discounted to their present value
using pre-tax discount rate that reflects current market
assessments of the time value of money and risk specific
to the assets.
The impairment loss recognised in prior accounting
period is reversed if there has been a change in the
estimate of recoverable amount.
p) Share capital and share premium
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a deduction, net of tax, from the
proceeds.
Par value of the equity share is recorded as share capital
and the amount received in excess of the par value is
classified as share premium.
q) Financial InstrumentsFinancial AssetsInitial recognition and measurement
All financial assets and liabilities are initially recognized at
fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit or
loss, are adjusted to the fair value on initial recognition.
Purchase and sale of financial assets are recognised
using trade date accounting.
Subsequent measurement
Financial assets carried at amortised cost
A financial asset is measured at amortised 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.
Financial assets at fair value through other comprehensive
income (FVTOCI)
A financial asset is measured at FVTOCI 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.
Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the
above categories are measured at FVTPL.
Investments in subsidiaries
The Company has accounted for its investments in
subsidiaries at cost.
Impairment of financial assets
In accordance with Ind AS 109, the Company uses
'Expected Credit Loss' (ECL) model, for evaluating
impairment of financial assets other than those
measured at fair value through OCI.
Expected credit losses are measured through a loss
allowance at an amount equal to:
- The 12-months expected credit losses (expected
credit losses that result from those default events
on the financial instrument that are possible within
12 months after the reporting date); or
- Full lifetime expected credit losses (expected credit
losses that result from all possible default events
over the life of the financial instrument).
For trade receivables Company applies 'simplified
approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables.
The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At
every reporting date these historical default rates are
reviewed and changes in the forward looking estimates
are analysed.
Financial LiabilitiesInitial recognition and measurement
All financial liabilities are recognized at fair value and in
case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement
of Profit and Loss as finance cost.
Subsequent measurement
Financial liabilities are carried at amortized cost using the
effective interest method. For trade and other payables
maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the
short maturity of these instruments.
Derecognition of financial instruments
The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the
transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of a financial liability) is
derecognized from the Company’s Balance Sheet when
the obligation specified in the contract is discharged or
cancelled or expires.
r) Earnings Per Share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by weighted average number of equity
shares outstanding during the period. The weighted
average number of equity shares outstanding during
the period are adjusted for events of bonus issue; bonus
element in a right issue to existing shareholders.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the year attributable to equity
shareholders and the weighted average number of
shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
s) Government Grant
Government grants are recognised initially as deferred
income when there is reasonable assurance that they
will be received and the company will comply with
the conditions associated with the grant. Grants that
compensate the company for expenses incurred are
recognised over the period in which the related costs are
incurred and are deducted from the related expenses.
Grants that compensate the company for the cost of an
asset are recognised in profit or loss on a systematic
basis over the useful life of the related asset.
t) Dividend Distribution
Dividend distribution to the Company’s shareholders
is recognised as a liability in the company’s financial
statements in the period in which the dividends are
approved by the Company’s shareholders.
u) Statement of Cash Flows
Cash and Cash equivalents
For the purpose of presentation in the statement of
cash flows, cash and cash equivalents includes 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. However for Balance Sheet presentation,
Bank overdrafts are classified within borrowings in
current liabilities.
Statement of Cash Flows is prepared in accordance with
the Indirect Method prescribed in the relevant Accounting
Standard.
v) Share-based payments
Equity-settled share-based payments to employees and
others providing similar services are measured at the fair
value of the equity instruments at the grant date. Details
regarding the determination of the fair value of equity-
settled share-based transactions are set out in note 11
(g).
The fair value determined at the grant date of the
equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on
the Company’s estimate of equity instruments that
will eventually vest, with a corresponding increase in
equity. At the end of each reporting year, the Company
revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the
original estimates, if any, is recognised in Statement of
profit and loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to
the equity-settled employee benefits reserve.
The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.
~| KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Company’s standalone financial
statements requires management to make judgement,
estimates and assumptions that affect the reported
amount of revenue, expenses, assets and liabilities and
the accompanying disclosures. 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 periods.
Depreciation / amortisation and useful lives of property
plant and equipment/intangiable assets
Property, plant and equipment / intangible assets are
depreciated / amortised over their estimated useful
lives, after taking into account estimated residual value.
The estimated useful lives and residual values of the
assets are reviewed annually in order to determine the
amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual
values are based on the Company’s historical experience
with similar assets and take into account anticipated
technological changes and other related matters. The
depreciation / amortisation for future periods is revised
if there are significant changes from previous estimates.
Determining the lease term of contracts with renewal
and termination options - Company as lessee
The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain
not to be exercised.
The Company has only one lease contracts that include
extension and termination options. The Company
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew
or terminate the lease. That is, it considers all relevant
factors that create an economic incentive for it to
exercise either the renewal or termination. After the
commencement date, the Company reassesses the
lease term if there is a significant event or change in
circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew
or to terminate.
The Company included the renewal period as part of
the lease term for leases of properties with longer non¬
cancellable periods (i.e., 5 years) are not included as part
of the lease term as these are not reasonably certain
to be exercised. Furthermore, the periods covered by
termination options are included as part of the lease
term only when they are reasonably certain not to be
exercised.
Leases - Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Company would
have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset
of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects
what the Company 'would have to pay’, which requires
estimation when no observable rates are available. The
Company estimates the IBR using observable inputs
(such as market interest rates) when available and is
required to make certain entity-specific estimates.
Amortization of leasehold land
The Company’s lease asset classes primarily consist
of leases for industrial land. The lease premium is the
fair value of land paid by the Company to the state
government at the time of acquisition and there is no
liability at the end of lease term. The lease premium
paid by the company has been amortized over the lease
period on a systematic basis and classified under Ind
AS 16 and therefore, the requirements of both Ind AS
116 and Ind AS 17 as to the period over which, and the
manner in which, the right of use asset (under Ind AS
116) or the asset arising from the finance lease (under
Ind AS 17) amortized are similar.
Recoverability of trade receivable
Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the period of overdues, the amount
and timing of anticipated future payments and the
probability of default.
Provisions
Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of resources resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability requires the application of judgement to
existing facts and circumstances. The carrying amounts
of provisions and liabilities are reviewed regularly
and revised to take account of changing facts and
circumstances.
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, 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’s)
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
of those from other assets or a 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 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 costs of disposal,
recent market transactions are taken into account, if
no such transactions can be identified, an appropriate
valuation model is used.
Measurement of defined benefit obligations
The measurement of defined benefit and other post¬
employment benefits obligations 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 future pension increases.
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.
2*3 new and amended standards
The company has not early adopted any standards,
amendments that have been issued but are not yet
effective/notified.
(b) Terms & Right attached to equity shares
The company has only one class of equity shares having a par value of C2 per share. Each Holder of equity share is entitled
to one vote per share. In the event of liquidation, shareholder will be entitled to receive remaining assets of the company after
distribution of all preferential amount. The distribution will be in proportion to the member of equity share held by the share
holder.
c) The company has not allotted any equity shares as fully paid up pursuant to contracts without payment being received in
cash/allotted as fully paid up by way of bonus shares issued/buy-back of shares in the last 5 years.
d) There are no contracts or commitments for the sale of shares or disinvestments.
g) Details of Employee Stock Option Plan:
Manorama Industries Limited Employees Stock Option Plan 2021 (MILESOP 2021) was approved by the shareholders of
the Company on 29th September, 2021. The plan is designed to provide incentives to all the employees to deliver long term
returns. Under the plan the employees would be granted stock options which would carry the right to apply for equivalent
number of ordinary shares of the Company of the face value of C 2 each at a price to be determined by the Nomination and
Remuneration Committee of the Company. The total number of options to be granted under the Scheme would be 1191980
no. of equity shares @ C 2 each. The grant of options has to be accepted by the employees within one month from the date of
the grant and would vest after one year from such date in 4 annual tranches of 25% of the options granted. The options once
vested have to be exercised within 3 months. In accordance with the plan the Nomination and Remuneration Committee
of the Company on 8/2/2022 has granted 98000 options to certain eligible employees. Such options will vest in 4 tranches
starting from 2023. Further, the Nomination and Remuneration Committee of the Company on 12/05/2024 has also granted
180000 options to certain eligible employees and such options will vest in 1 trench starting from 2025, the options have to be
exercised within a period of 3 months. The exercise price for 1st grant is at a 10% discount on the market price of the shares
as on grant date i.e. C 236.20 and for 2nd grant is C 251.00.
Notes:(i) Securities Premium
Securities premium is used to record the premium received on issue of shares. It is to be utilised in accordance with the provisions
of Companies Act, 2013.
(ii) General Reserve
General Reserve is available for payment of dividend and buy back of equity shares as per the provisions of Companies Act,
2013.
(iii) Share Based Payment Reserve
The share options-based payment reserve is used to recognise the grant date fair value of option issued to employees under
Employee stock option plan.
(iv) Retained Earnings
Retained earnings are the profits and gains that the Company has earned till date less any transfer to General Reserve, dividends
or other distributions made to shareholders.
Terms of borrowings:
Working Capital facilities from banks are repayable on demand and are secured as follows:
- Hypothecation of stock and receivables.
- Packing credit limits against hypothecation of stock meant for export.
- Second parri passu charge on Industrial land building, plant and machinery of Birkoni Plant of the company for credit facility from
Banks.
- Personal Guarantee of Vinita Saraf, Shrey Saraf, Gautam Pal and Ashish Ramesh Saraf, promoters/directors of the company.
During the previous year, the company granted stock options to the Key Management Personnel under it’s ESOP Scheme at
'Market Price’ [with in the meaning of the Securities Exchange Board of India (Share Based Employee Benefits) Regulations, 2014].
Since such options are not tradeable, no perquisites or benefits is immediately conferred upon the employee by such grant options
and accordingly, the said grant has not been considered as remuneration. However, the company has recorded employee benefits
expense by way of Share Based Payment obligation, in accordance with Ind AS - 112 at C 235.24 lacs for the year ended 31st March,
2026 ( 2025: C 1535.13 lacs), out of which C 33.97 lacs (2025: C 319.82 lacs) is attributable to Key Management Personnel.
Terms and conditions of transactions with related parties
All related party transactions entered during the year were in ordinary course of business and on arm’s length basis. Outstanding
balances at the year-end are unsecured and will be settled in cash. There have been no guarantees provided or received for
any related party receivables or payables. For the year ended 31 March 2026, the company has not recorded any impairment of
receivables relating to amounts owed by related parties (31 March 2025: C Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.
30*| CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS:
(a) Contingent Liability:
Claims against the companies not acknowledged as debts C 80.84 Lacs (Previous Year C 80.84 Lacs).
Disputed liability of C 19.13 Lacs (Previous Year C 19.13 Lacs) on account of Goods and Services Tax against which the
company has preferred an appeal.
Disputed liability of C 34.51 Lacs (Previous Year C Nil) on account of Income Tax against which the company is going to file
rectification application.
31*| DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 19 EMPLOYEE BENEFITS:a. Defined Contribution Plan:
The Company has certain defined contribution plans viz. provident fund . Contributions are made to provident fund in India
for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund
administered by the government. The obligation of the Company is limited to the amount contributed and it has no further
contractual nor any constructive obligation.
An amount of C 88.45 lacs (P.Y. C 79.12 lacs) is recognised as an expenses and included in employee benefit expense as under
the following defined contribution plans (Refer Note no 24).
b. Defined benefit plan:
Leave Obligations:
The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled
to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number days of
unutilised leave at each balance sheet date on the basis of year-end actuarial valuation using projected unit credit method.
The scheme is unfunded.
Based on past experience and in keeping with Company’s practice, the Company does not expect all employees to take
the full amount of accrued leave or require payment within the next 12 months and accordingly the total year end provision
determined on actuarial valuation, as aforesaid is classified between current and non current.
An amount of C 129.96 lacs (P.Y. C 18.31 lacs) is recognised as an expenses and included in employee benefit expense as
under the following defined contribution plans (Refer Note no 24).
Gratuity:
The Gratuity scheme is a final salary defined benefit plan that provides for a lump sum payment made on exit either by way
of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of
service and paid as lump sum at exit. Benefits provided under this plan is as per the requirement of the Payment of Gratuity
Act, 1972. The scheme is unfunded.
Notes:
(i) The actuarial valuation of the defined obligation were carried out at 31st March, 2026. The present value of the defined
benefit obligation and the related current service cost and past service cost, were measured using the projected Unit
Credit Method. .
(ii) Risk Exposure
Through its defined benefit plans, the Company is exposed to some risks, the most significant of which are detailed
below:
Interest rate risk :
The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.
Salary inflation risk :
Higher than expected increases in salary will increase the defined benefit obligation.
Demographic risk :
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and
depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per
year as compared to a long service employee.
32*| FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES
The Company’s principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial
assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations. The
Company also enters into derivative contracts.
The Company is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Interest rate risk
- Currency risk
- Price risk
The Company’s board of directors has overall responsibility for the establishment and oversight of the company’s risk
management framework. This note presents information about the risks associated with its financial instruments, the
Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of
capital.
Credit Risk
The Company is exposed to credit risk as a result of the risk of counterparties non performance or default on their obligations.
The Company’s exposure to credit risk primarily relates to investments in fixed deposits with banks, accounts receivable
and cash and cash equivalents. The Company monitors and limits its exposure to credit risk on a continuous basis. The
Company’s credit risk associated with accounts receivable is primarily related to party not able to settle their obligation as
agreed. To manage this the Company periodically reviews the financial reliability of its customers, taking into account the
financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivables.
Trade receivables
Trade receivables represent the most significant exposure to credit risk and are stated after an allowance for impairment and
expected credit loss.
Bank, Cash and cash equivalents
Bank, Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to cash. These are subject
to insignificant risk of change in value or credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at
the reporting date was:
Liquidity risk
The Company is exposed to liquidity risk related to its ability to fund its obligations as they become due. The Company
monitors and manages its liquidity risk to ensure access to sufficient funds to meet operational and financial requirements.
The Company has access to credit facilities and debt capital markets and monitors cash balances daily. In relation to the
Company’s liquidity risk, the Company’s policy is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions as they fall due while minimizing finance costs,
without incurring unacceptable losses or risking damage to the Company’s reputation.
Interest rate risk
Interest rate risk is the risk that an upward movement in the interest rate would adversely effect the borrowing cost of the
company. The Company is exposed to long term and short-term borrowings, Commercial Paper Program. The Company
manages interest rate risk by monitoring its mix of fixed and floating rate instruments, and taking action as necessary to
maintain an appropriate balance.
The exposure of the Company’s borrowings to interest rate changes at the end of the reporting period are as follows:
FOREX EXPOSURE RISK
The Company operates internationally and portion of the business is transacted in several currencies and consequently the
Company is exposed to foreign exchange risk through purchases from overseas suppliers in various foreign currencies.
Foreign currency exchange rate exposure is partly balanced by hedging of exposure by forward contract of sale of goods in
the respective currencies.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows
established risk management policies to foreign currency risk.
33*| CAPITAL MANAGEMENT
The Company’s main objectives when managing capital are to:
- ensure sufficient liquidity is available (either through cash and cash equivalents, investments or committed credit
facilities) to meet the needs of the business;
Ý ensure compliance with covenants related to its credit facilities; and
Ý minimize finance costs while taking into consideration current and future industry, market and economic risks and
conditions.
Ý safeguard its ability to continue as a going concern
Ý to maintain an efficient mix of debt and equity funding thus achieving an optimal capital structure and cost of capital.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through
prudent management of deployed funds and leveraging opportunities in domestic and international financial markets so as
to maintain investor, creditor and market confidence and to sustain future development of the business.
For the purpose of Company’s capital management, capital includes issued capital and all other equity reserves. The Company
manages its capital structure in light of changes in the economic and regulatory environment and the requirements of the
financial covenants.
The Company manages its capital on the basis of net debt to equity ratio which is net debt (total borrowings including lease
liabilities net of cash and cash equivalents) divided by total equity
During the year the company has complied with major covenants of the terms of sanction of the loan facilities throughout
the year.
34*| FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities,
short term loans from banks and other financial institutions approximate their carrying amounts largely due to the short¬
term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to
account for the expected losses of these receivables.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1 : quoted (unadjusted)prices in active markets for identical assets or liabilities
Level 2 : other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly of indirectly
Level 3 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data
35*| LEASES:
Company as a lessee
The Company has lease contract for properties used for office purpose. Leases of properties have lease terms of 5 years.
The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is
restricted from assigning and subleasing the leased assets.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
Note : Reasons for variance in ratios for more than or less than 25% are as follows:
i. Debt equity ratio decreased mainly on account of decrease in borrowings as compared to previous year.
ii. Debt service coverage, Return on Capital employed and Return on Equity ratio is increased mainly on account of increase
in profitability as compared to previous year.
iii. Inventory turnover ratio and Trade receivable turnover ratio increased because of substaintial increase in turnover during
the year and decrease in trade receivable as compared to previous year.
Proposed final dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a
liability as at 31 March 2026.
40*| SEGMENT REPORTING
The Company’s only identifiable reportable Business segment is Manufacturing of Exotic Seed based Fats and Butters
including Cocoa Butter Equivalent (CBE). Further , the Company operates and controls its business activities within/from
India, except export of goods. Hence disclosure of Segment wise information is not applicable under Indian Accounting
Standard - 108 "Segment Information" (Ind AS-108) .
41. No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder..
42. None of the banks, financial institutions or other lenders from whom the company has borrowed funds has declared the
company as a wilful defaulter at any time during the current year or in previous year.
43. The Company has working capital facilities from banks on the basis of security of current assets & submitting quarterly
Financial Follow up Report as per the terms & conditions of sanction letters. There are no material discrepancies in the
amount of current assets between Financial Follow Report and books of accounts.
44. All the charges or satisfaction of which is required to be registered with Registrar of Companies(ROC) have been duly
registered within the statutory time limit provided under the provisions of Companies Act 2013 and rules made thereunder.
45. The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act 2013
or section 560 of Companies Act 1956 during the current year or in previous year.
46. The Company has not made any loans or advances in the nature of loans to Promoters,Directors,KMP’s and the related
parties which are outstanding as at the end of the current year and previous year.
47. All the transactions are recorded in the books of accounts and there was no income that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961. Also there was no previously unrecorded
income and related assets which has been recorded in the books of account during the year.
48. The company has complied with the number of layers of companies prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.
49. No scheme of compromise or arrangement has been proposed between the company & its members or the company & its
creditors under section 230 of the Companies Act 2013 ("The Act") and accordingly the disclosure as to whether the scheme
of compromise or arrangement has been approved or not by the competent authority in terms of provisions of sections
230 to 237 of the Act is not applicable.
The company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understanding, whether recorded in writing or otherwise, that the Intermediary 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 or the like to or on behalf of the Ultimate Beneficiaries. Further,
the company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the
understanding , whether recorded in writing or otherwise, 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 or the like on behalf of the Ultimate Beneficiaries.
5!.| The company has neither traded nor invested in Crypto Currency or Virtual Currency during the financial year.
The Government of India had announced the implementation of 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 (collectively referred to as 'the New Labour Codes’) with effect from 21 November 2025, The Ministry
of Labour & Employment had issued draft Central Rules and FAQs to facilitate assessment of the financial impact arising
from these regulatory changes. On the basis of information available and actuarial valuation, the Company has assessed and
accounted the impact of these changes, which is not significant.
53.| Previous year figures have been regroupped/rearranged wherever necessary.
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