(xii) Provisions and Contingencies:
Provisions
Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events; it is probable that
an outflow of resources will be required to
settle the obligation; and the amount has been
reliably estimated.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the
end of the reporting period. The discount rate
used to determine the present value is a pre-tax
rate that reflects current market assessments
of the time value of money and the risks specific
to the liability. The increase in the provision
due to the passage of time is recognised as an
interest expense.
Contingent liabilities
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. 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 reliable estimate
of the amount cannot be made, is termed as
contingent liability.
Contingent assets
A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control of
the entity. Contingent assets are not recognised
but disclosed only when an inflow of economic
benefits is probable.
(xiii) Employee benefits:
(a) Short-term obligations
Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognized in
respect of employees' services up to the end
of the reporting period and are measured
at the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligations in the balance sheet.
(b) Post Employment obligations
The Company operates the following post¬
employment schemes:
- defined benefit plans such as gratuity
contributions made to a trust in case of
certain employees.
- defined contribution plans
such as provident fund and
superannuation fund.
Gratuity obligations
The liability or asset recognized in the
balance sheet in respect of gratuity plans
is the present value of the defined benefit
obligation at the end of the reporting
period less the fair value of plan assets.
The defined benefit obligation is calculated
annually by actuaries using the projected
unit credit method.
The present value of the defined benefit
obligation is determined by discounting the
estimated future cash outflows by reference
to market yields at the end of the reporting
period on government bonds that have
terms approximating to the terms of the
related obligation.
The net interest cost is calculated by
applying the discount rate to the net balance
of the defined benefit obligation and the fair
value of plan assets. This cost is included in
employee benefit expense in the Statement
of Profit and Loss.
Remeasurement gains and losses arising
from experience adjustments and changes
in actuarial assumptions are recognized
in the period in which they occur, directly
in Other Comprehensive Income. They
are included in Retained Earnings in the
Statement of Changes in Equity and in the
Balance Sheet.
Changes in the present value of the
defined benefit obligation resulting from
plan amendments or curtailments are
recognized immediately in profit or loss as
past service cost.
Defined contribution plans
The Company pays provident fund
contributions to publicly administered
provident funds as per local regulations
and superannuation contributions to
superannuation fund. The Company has
no further payment obligations once
the contributions have been paid. The
contributions are accounted for as defined
contribution plans and the contributions are
recognized as employee benefit expense
when they are due.
(c) Other long-term employee benefit
obligations
The liabilities for earned leave and sick
leave are not expected to be settled wholly
within 12 months after the end of the period
in which the employees render the related
service. They are therefore measured as the
present value of expected future payments
to be made in respect of services provided
by employees up to the end of the reporting
period using the projected unit credit
method. The benefits are discounted using
the market yields at the end of the reporting
period that have terms approximating
to the terms of the related obligation.
Remeasurements as a result of experience
adjustments and changes in actuarial
assumptions are recognized in Statement of
Profit or Loss.
The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to defer
settlement for at least twelve months after
the reporting period, regardless of when the
actual settlement is expected to occur.
(xiv) Earnings per share:
Basic earnings per share is computed by
dividing the net profit for the period attributable
to the equity shareholders of the Company by
the weighted average number of equity shares
outstanding during the period. The weighted
average number of equity shares outstanding
during the period and for all periods presented is
adjusted for events, such as bonus shares, other
than the conversion of potential equity shares
that have changed the number of equity shares
outstanding, without a corresponding change in
resources. For the purpose of calculating diluted
earnings per share, the net profit for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.
(xv) Exceptional items:
Exceptional items include income or expense
that are of such significance and nature that
separate disclosure enables the user of the
financial statements to understand the impact
in a more meaningful manner. Exceptional
items are identified by virtue of their size, nature
and incidence.
If the management believes that losses/gain are
material and is relevant to an understanding of
the entity's financial performance, it discloses the
same as an exceptional item.
(xvi) Rounding of amounts:
All amounts disclosed in financial statements and
notes have been rounded off to the nearest lakhs
as per the requirement of Schedule III, unless
otherwise stated.
3) Critical accounting estimates and
judgements:
The preparation of financial statements requires the
use of accounting estimates, which, by definition,
will seldom equal the actual results. Management
also needs to exercise judgement in applying the
Company's accounting policies. This note provides an
overview of the areas that involved a higher degree of
judgement or complexity, and of items, which are more
likely to be materially adjusted due to estimates and
assumptions turning out to be different from those
originally assessed.
Estimation of defined benefit obligation
The present value of obligations under defined
benefit plan is determined using actuarial valuations.
An actuarial valuation involves making various
assumptions that may differ from actual development
in the future. These include the determination of the
discount rate, future salary escalations, attrition
rate and mortality rates etc. Due to the complexities
involved in the valuation and its long-term nature,
these obligations are highly sensitive to changes in
these assumptions. All assumptions are reviewed at
each reporting date.
Impairment of trade receivables
The impairment provisions for trade receivables
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.
Fair value measurements and valuation
processes
Some of the assets and liabilities are measured
at fair value for financial reporting purposes. The
Management determines the appropriate valuation
techniques and inputs for the fair value measurements.
In estimating the fair value of an asset or a liability, the
Company uses market-observable data to the extent it
is available. Where Level 1 inputs are not available, fair
values are determined on the basis of the third-party
valuations. The models used to determine fair values
including estimates/ judgements involved are validated
and periodically reviewed by the management.
Taxes
Deferred tax assets are recognized for temporary
differences to the extent that it is probable that taxable
profit will be available against which the losses can
be utilized. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognized, based upon the likely
timing and the level of future taxable profits together
with future tax planning strategies.
iv) Pursuant to the Scheme approved by the Hon'ble National Company Law Tribunal (NCLT), both the Company (Naperol
Investments Limited) and the Resulting Company (National Peroxide Limited) have duly filed true copies of the Order
with the relevant registering authorities within the prescribed timelines. The change of name from National Peroxide
Limited to Naperol Investments Limited is still under process and is pending with the Department of Registration
and Stamps.
These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company
has chosen to designate these investments in equity instruments as at FVOCI as the management believes that
this provides a more meaningful presentation for long term investments, than reflecting changes in fair values
immediately in statement of profit and loss. Based on the aforesaid election, fair value changes are accumulated
within Equity under "Fair Value Changes through Other Comprehensive Income (FVOCI) - Equity Instruments”. The
Company transfers amounts from this reserve to retained earnings when relevant equity securities are derecognized.
As per records of the Company, including its register of shareholders/ members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownership of shares.
c) Rights, preferences and restrictions attached to equity shares:
The Company has one class of equity share having a par value of C10 per share. Every holder of equity shares
present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one
vote. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing annual general meeting, except in case of interim dividend.
In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of
the Company, after distribution of all preferential amounts, in proportion to their shareholdings.
d) Buy back of shares or shares allotted by way of bonus shares:
The Company has not made any buy-back, nor there has been an issue of shares by way of bonus share nor
issue of share pursuant to contract without payment being received / paid in cash for the period of five years
immediately preceding the balance sheet date.
30 Factors used to identify the entity's reportable segments, including the basis of
organisation:
The information reported to the Chief Operating Decision Maker (CODM), consisting of Manager for the purposes of
resource allocation and assessment of segment performance focuses on two type business i.e. investment activity
and trading activity. Therefore information required by the Indian Accounting Standard on "Segment Reporting” (Ind
AS) - 108 are applicable even though it operates significantly in a single geographic segment viz. India.
(c) Post employment obligations
Gratuity
The Company has a defined benefit plan (funded). The Code on Social Security, 2020 has been notified and
made effective from 21 November 2025, thereby replacing the erstwhile Payment of Gratuity Act, 1972. The
Code on Social Security, 2020 has updated the definition of the gratuity salary to "Wages” as defined in the Code
on Wages, 2019 and has changed the vesting period for fixed-term contract employees wherever applicable.
This change has resulted in an increase in the liability of the Company, and has resulted in a past service cost
for the company. The benefits under the plan are in form of a lump sum fully settled on cessation of service of
the employee.
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
While calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same
method (present value of the defined benefit obligation calculated with the projected unit credit method at the
end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the
balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to
the prior period.
(iv) Defined benefit liability and employer contributions
The above defined benefit gratuity plan was administered 100% by a trust of Promoter group company 'National
Peroxide Limited (formerly known as NPL Chemicals Limited)' as at March 31, 2026.
The weighted average duration of the defined benefit obligation is 7.44 years (March 31, 2025 - 13.38 years).
(v) Risk exposure
Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: Investment
risk, interest rate risk and salary risk.
(b) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which
fair values are disclosed in the Ind AS financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its financial instruments into the three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.
(c) Valuation techniques used to determine fair value
Fair value of all equity instruments which are traded in the stock exchanges are valued using the closing price
as at the reporting date. The mutual funds are valued using closing Net Assets Value (NAV). The fair value
of investment in equity shares which are unquoted are valued using valuation method and approach by an
external valuer.
34 Financial risk management
The Company's business activities expose it to a variety of financial risks, namely liquidity risk, market risks and
credit risk.
The Company has adopted a Risk Management Policy wherein all material risk faced by the Company are idetified and
assessed. The Risk Management framework defines the risk management approach of the Company and includes
collective identification of risks impacting the Company's business and documents their process of identification,
mitigation and optimization of such risks.
The Board of Directors provides written principles for overall risk management, as well as policies covering specific
areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.
(a) Credit risk
The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation
resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents, financial assets
carried at amortised cost as well as credit exposures to trade customers including outstanding receivables.
Credit risk management
Trade receivables mainly arise from lease income receivable from National Peroxide Limited ("NPL”)(formerly
known as NPL Chemicals Limited) in pursuant to Composite Scheme of Arrangement and account receivables
from sale of traded good. Since NPL is part of the promoter group and the lease rentals are measurely received in
advance, the management believes that the credit risk is minimal. As far as trading receivables are concerned the
Company has a credit risk policy in place to ensure that sales are made to customers only after an appropriate
credit risk assessment and credit line allocation process. The Company has adopted a policy of only dealing with
creditworthy counterparties.
The Company provides for life time allowance on trade receivable using simplified approach and on a case to case
basis on specified customers. Specific debtors represents debtors facing bankruptcy cases, operation shutdown
and other scenario as determined by the management. Such debtors are categorised as specific debtors upon
intimation/news. Such specific debtors has no nexus with the macro economy factor. The Company recognises
expected credit loss on specified receivables as determined by the management.
For banks and financial institutions, only highly rated banks / institutions are accepted. Generally all policies
surrounding credit risk have been managed at Company level.
(b) Liquidity risk
Liquidity risk is the risk that the Company will fail in meeting its obligations to pay its financial liabilities. The
Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities
when due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
obligations when due. In respect of its operations, the Company funds its activities primarily through cash
generated in operations.
Management monitors the Company's liquidity position and cash and cash equivalents on the basis of expected
cash flows. Cash which is not needed in the operating activities of the Company is invested in marketable
liquid funds.
Based on recent trends observed, marketable securities held, cash generation, cash surpluses held by the
Company, the Company does not envisage any material liquidity risks.
(i) Maturities of financial liabilities
The amounts disclosed below are contractual undiscounted cash flows of financial liabilities. Balances due
within 12 months equal their carrying balances as the impact of discounting is not significant.
(c) Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because
of volatility of prices in the financial markets. The Company is exposed to price risks arising from equity
investments and mutual funds. Further, equity investments are subject to changes in the market price of
securities. Equity investments are held for strategic purpose rather than for trading purposes. The Company
does not actively trade in these investments.
Sensitivity
If equity prices had been 10% higher / lower, other comprehensive income before tax for the year ended
March 31,2026 would increase / decrease by C 8,883.53 lakhs & (8,883.53) lakhs (March 31,2025: C 11,866.48
lakhs & (11,866.48)) lakhs as a result of the changes in fair value of shares measured at FVOCI.
If NAV of Mutual funds had been 10% higher / lower, profit before tax for the year ended March 31, 2026
would increase / decrease by C 70.98 lakhs & (70.98) lakhs (March 31, 2025: C 30.75 lakhs & (30.75)) lakhs as
a result of the changes in fair value of mutual funds measured at FVTPL.
35 Capital Management
(a) Risk Management
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the
Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt. The Company has no borrowings during the current year & previous year.
36 Micro, small and medium enterprise
Disclosure in respect to Micro and Small Enterprises as per Micro, Small and Medium Enterprises Development Act,
2006 ('MSMED') Act, 2006 is as follows: The information as required under Micro, Small and Medium Enterprises
Development Act, 2006, has been determined to the extent such parties have been identified on the basis of
information available with the Company and relied upon by the auditors. The principal amounts / interest payable
amounts for delayed payments to such vendors as at Balance Sheet date during the current year and previous year
mentioned below.
38 Capital and other commitments
Capital commitments
(i) There are no estimated amount of contracts remaining to be executed on capital account and not provided as at
balance sheet date (March 31, 2025: Nil).
39 Additional regulatory information required by Schedule III to the Companies Act, 2013
(i) Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) Borrowing secured against current assets
The Company has not been sanctioned any borrowings against current assets at any point of time during the year.
(iii) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(iv) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies
Act, 1956.
(v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(vi) Utilisation of borrowed funds and share premium
I The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
II The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(vii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.
(viii) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(ix) Valuation of Property, plant and equipment, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.
40 Other regulatory information
(i) Title deeds of immovable properties not held in name of the Company
The title deeds Land and Investment Property situated at Kalyan, as disclosed in note 3 and 4 to Ind AS financial
statements, are not held in the name of the Company.
(ii) Registration of charges or satisfaction with Registrar of Companies
There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.
43 Events Occurring after the Balance Sheet Date
No material events have occurred after the Balance Sheet date and upto the approval of the Ind AS financial
statements.
44 During the year ended March 31, 2025, the Company had received substantial unusual dividends from group
companies, as a result of which its income from financial assets exceeded 50 percent of the total income of the
Company for that year and it's financial assets constituted more than 50 percent of the total assets as of March 31,
2025. Further the Company held not less than 90% of its net assets in the form of equity shares in group companies
and has not accessed public funds, thus satisfying the criteria of an Unregistered Core Investment Company as at 31
March 2025.
45 Corporate Social Resposibility
The Company is not required to make any contribution as per the provisions of Section 135 of Companies Act , 2013
for the current year and previous year.
46 The Board of directors at its meeting held on February 25, 2026, declared an interim dividend of C 3/- per equity
share (fully paid up) aggregating to C 172.41 lakh which has been paid during the financial year. Further, the Board of
Directors of the Company have proposed a final dividend of C 16.48/- per equity share for the current year, which is
subject to approval of the members at the ensuing Annual General Meeting.
47 Ind AS Financial statements of the Company for the year ended March 31,2026 are approved by the Board of Directors
on April 30, 2026.
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