(s) Provisions and contingent liabilities
Provisions are recognized 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 can be
reliably estimated. These are reviewed at each reporting period and reflect the best current estimate. Provisions
are not recognized for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
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 the obligation or a reliable estimate of the amount cannot be
made.
(t) Employee benefits
Short-term employee benefits obligations:
All employee benefits payable within twelve months of service such as salaries, wages, bonus, ex-gratia, medical
benefits etc. are classified as short-term employee benefits and are recognized in the Statement of Profit and Loss
as an expense and are presented as current employee benefit obligations in the Balance sheet at the undiscounted
amount on an accrual basis. Short-term leave encashment is provided at undiscounted amount during the accounting
period based on service rendered by employees.
Termination benefits are recognized as an expense as and when incurred.
Defined contribution plans
Contributions to defined contribution schemes such as contribution to Provident Fund, Super annuation fund,
Employees' State Insurance Corporation, National Pension Scheme and Labours Welfare Fund are charged as an
expense to the Statement of Profit and Loss based on the amount of contribution required to be made as and when
services are rendered by the employees. The above benefits are classified as Defined Contribution Schemes as
the Company has no further defined obligations beyond the monthly contributions.
Defined benefit plans
Gratuity: The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees
in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, in capacitation or termination of employment, of an amount based on the respective
employee's salary and the tenure of employment. The Company's liability is actuarially determined (using the
Projected Unit Credit method) by an independent actuary at the end of each year. Remeasurements i.e. actuarial
gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net
defined benefit liability are recognized in other comprehensive income.
Non-current compensated absences: 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 reportingperiod 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 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 12 months after the reporting period, regardless of when the actual settlement
is expected to occur.
(u) Contributed equity
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
(v) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting
period.
(w) Earnings per share
Earnings per share (EPS) is calculated by dividing the net profit or loss for the period attributable to Equity
Shareholders by the weighted average number of Equity shares outstanding during the period. Earnings considered
in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period (Refer Note 33).
(x) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off in Crore as per the requirement
of Schedule III, unless otherwise stated.
(y) Exceptional items
When items of income or expense are of such nature, size and incidence that their disclosure is necessary to
explain the performance of the Company for the year, the Company makes a disclosure of the nature and amount
of such items separately under the head “Exceptional items”
(z) Measurement of PBITDA
As permitted by the Guidance Note on Division II - IND AS Schedule III to the Companies Act, 2013 the Company
has opted to present Profit before interest (finance cost), tax, depreciation and amortization as a separate line item
on the face of the Statement of Profit and Loss for the year. The Company measures PBITDA on the basis of profit
/ (loss) from continuing operations and other income. In its measurement, the Company does not include depreciation
and amortization expense, finance costs and tax expense.
Critical estimates and judgments:
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 group'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 than those
originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes
together with information about the basis of calculation for each affected line item in the financial statements.
Areas involving critical estimates and judgements are:
Estimated useful life of tangible assets
The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment
may result in change in depreciation and amortization expense in future periods. The policy has been detailed in note
1 (n).
Estimated defined benefit obligation
The Company's retirement benefit obligations are subject to number of assumptions including discount rates, inflation
and salary growth. Significant assumptions are required when setting these criteria and a change in these assumptions
would have a significant impact on the amount recorded in the Company's balance sheet and the statement of profit and
loss. The Company sets these assumptions based on previous experience and third party actuarial advice. Further
details on the Company's retirement benefit obligations, including key judgements are set out in note 1 (t) and note 39.
Impairment of financial assets
The impairment provisions for financial assets disclosed are based on assumptions about risk of default and expected
loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on the Company's past history, existing market conditions as well as forward looking estimates at
the end of each reporting period. Further details on impairment of financial assets, including key judgements are set out
in note 1 (k) (iii) and note 35 (i)
Leases
Ind AS 116 Leases requires a lessee to determine the lease term as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an
assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably
certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company
considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the
termination of lease and the importance of the underlying lease to the Company's operations taking into account the
location of the underlying asset and the availability of the suitable alternatives. The lease term in future periods is
reassessed to ensure that the lease term reflects the current economic circumstances. The discount rate is generally
based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar
characteristics. Further details on Leases, including key judgements are set out in note 1 (f) and note 2 (B)
Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as result of a past event and it is probable that the
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities may arise in the ordinary course of business in relation to the claims against the Company. By
their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The
assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant
judgements and use of estimates regarding the outcome of future events. While ascertaining the possible outcome of
contingencies, the management of the Company exercises judgements basis evaluation of the judicial pronouncements
and/or legal opinions from an independent expert. Further details are set out in note 1 (s) and note 37.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Company and that are believed to be
reasonable under the circumstances.
Notes:
1) External Commercial Borrowing (ECB) loan was availed from INEOS Styrolution Group GmbH at a fixed interest
rate of 7.60% which is repayable on August 31,2026 (revised from 8.90% to 7.60% w.e.f. July 1, 2020). Effective
November 17, 2022 INEOS Styrolution Group GmbH ceases to be related party due to change in ownership during
the previous year.
2) Credit limits amounting to ' 650.00 Crore (March 31,2024 - ' 650.00 Crore) was availed from banks, secured by
first charge on current assets and quarterly statements of net working capital filed by the Company with banks are
in agreement with books of accounts. The Company had utilized ' 241.90 Crore (March 31,2024 - ' 76.40 crore) for
non-fund-based facility.
3) Current borrowing includes interest accrued but not due amounting to INR 0.19 Crore (March 31, 2024 - ' 0.19
Crore).
Note: There were no transfers between Level 1, Level 2 and Level 3 during the year.
B. Measurement of fair values
i) Valuation techniques and significant unobservable inputs
The carrying amounts of financial assets and liabilities other than those valued at Level 1 and Level 2 are
considered to be the same as their fair values due to the current and short term nature of such balances and
no material differences in the values. Difference between fair value of non-current borrowings carried at amortised
cost and the carrying value is not considered to be material to the financial statement.
ii) Levels 1, 2 and 3
Level 1 : This includes listed equity instruments that have a 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 (for example over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3.
iii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
• the use of quoted market prices or dealer quotes for similar instruments.
• the fair value of forward foreign exchange contracts are determined using forward exchange rates at the
Balance Sheet date. All of the resulting fair value estimates are included in level 1 and 2.
Risk management framework
Financial Risk Evaluation and Management is an ongoing process within the Organisation. The Company has a robust
risk management framework to identify, monitor and minimize risks. As a process, the risk associated with each area
are identified and prioritized based on severity, likelihood and effectiveness. Process owners are identified for each risk
and metrics are developed for monitoring and reviewing the risk mitigation controls. Risk evaluation and assessments
are reviewed by the Chief Financial Officer (CFO) and Managing Director on a quarterly basis. This is constantly
monitored by the Board.
The Company has exposure to the following risks arising from financial instruments:
i) Credit risk
ii) Liquidity risk
iii) Market risk
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
impact on the financial statements.
i) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument leading to a
financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and
from its financing activities, including deposits with banks and other financial instruments.
The carrying amount of financial assets represents the maximum credit exposure, being the total of the carrying
amount of balances with banks, short term deposits with banks, trade receivables and other financial assets
excluding equity investments.
Trade receivables
Trade receivables of the Company are typically unsecured and derived from sales made to a large number of
independent customers. Customer credit risk is managed by the Company based on established policies, procedures
and control relating to customer credit risk management. Before accepting any new customer, the Company has
appropriate level of control procedures to assess the potential customer's credit quality. The credit-worthiness of
its customers are reviewed based on their financial position, past experience and other relevant factors. Outstanding
customer receivables are reviewed periodically. The credit period provided by the Company to its customers generally
ranges from 0-60 days.
The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The
provision matrix takes into account available external and internal credit risk factors, the Company's historical
experience for customers and forward looking information. Based on the industry practices and the business
environment in which the entity operates, management considers that the trade receivables are credit impaired if
the payments are more than 180 days past due.
Other financial assets
The Company has mainly cash and cash equivalents, investment in mutual funds, deposits with banks (PSU and
high rated private banks) and government authorities, and security deposits for utilities with government bodies and
reputed corporate entities, and for leasehold premises. These are periodically confirmed by respective parties.
ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company's cash flow management
system ensures, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company's reputation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are
gross and undiscounted, and include estimated interest payments.
iii) Market risk
Market risk is mainly driven by changes in economic and political environment across globe, fluctuation in foreign
exchange rates and interest rates movement, which affect the Company's income or the value of its holdings of
financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign
currency receivables, payables and current borrowings. The objective of market risk management is to avoid
excessive exposure in foreign currency revenues and costs.
1. Currency risk
The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on
account of payables and receivables in foreign currency. Since there is no material export sales, this is not
perceived to be a major risk. Raw materials are mostly imported. The company has a policy to mitigate this
risk by taking derivative contracts to protect against any adverse exchange rate fluctuation. This policy is
reviewed on a periodic basis.
Company does not use derivative financial instruments for trading or speculative purposes.
2. Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate
risk is the risk of changes in fair values of variable interest bearing liabilities because of fluctuations in the
interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
liabilities will fluctuate because of fluctuations in the interest rates. The Company does not have variable
interest rate borrowing.
The Company's fixed rate borrowings were carried at amortised cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate
because of a change in market interest rates.
Note - 36
Capital Management
The primary objective of the Company's capital management is to maximise shareholder's value. The Company monitors
capital using Debt-Equity ratio, which is total debt divided by total equity.
For the purposes of the Company's capital management, the Company considers the following components of its
balance sheet to be managed as capital:Total equity as shown in the Balance Sheet includes Share capital, General
reserve, Retained earnings, Securities premium and Capital reserve. Total debt includes current debt plus non-current
debt (including current maturities of long term debt and lease liabilities).
The above matters are under adjudication and the Company expects the judgment will be in its favor and has therefore,
not recognised the provision in relation to these claims. Future cash outflow in respect of above will be determined only
on receipt of judgement/decision. The potential undiscounted amount of total payments that the Company could be
required to make if there was an adverse decision related to above matters as of the date reporting period ends are
disclosed above.
Income tax
The Company has ongoing disputes with income tax authorities relating to various previous years. These disputes
mainly includes disallowance of expenses, transfer pricing adjustments and withholding tax matters. The matters are
pending with various forums.
Excise duty and Service Tax Matter
The Company has ongoing disputes with respect to admissibility of input tax credit claimed by the Company for various
previous years and the matters are pending with various forums.
Note - 39
Employee benefit obligations
I Defined Contribution plan
The defined contribution plans operated by the Company are as below :
Provident Fund
Contributions are made to employees provident fund organization 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 or any
constructive obligation.
Superannuation Fund
Contributions are made to Life Insurance Corporation of India for eligible employees at the rate of 15% of basic
salary as per superannuation scheme of the Company.
NPS Fund
Contributions are made to NPS trust for eligible employees who have opted for the same at the rate of 10% of basic
salary as per NPS scheme of the Company.
Employee's State Insurance
Contributions are made to ESI Corporation for all eligible employees at rate of 4.75% of ESI wage as per the
definition under the ESI Act.
The contributions recognised as an expense in the statement of profit and loss during the year on account of the
above defined contribution plans amounted to ' 3.44 Cr (March 31,2024 : ' 3.50 Crore).
II Defined benefit plan
(i) Funded
Gratuity
The employee's gratuity fund schemes managed by Trusts are defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises
each period of service to build up the final obligation. The obligation for leave encashment is recognised in the
same manner as for gratuity.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market.
The expected rate of return on plan assets is determined considering several applicable factors, mainly the
composition of plan assets held, assessed risks and historical results of return on plan assets.
Sensitivity analysis
Reasonable possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which
are detailed below:
i) Asset volatility
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit. The plan assets are managed by LIC and are subject to
market risk. Any shortfall is contributed to the fund by the Company. The Company intends to maintain
the above investment in the continuing years.
ii) Changes in bond yields
A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase
in the value of the plans' bond holdings.
The Company actively monitors how the duration and the expected yield of the investments are matching
the expected cash outflows arising from the employee benefit obligations. The Company has not changed
the processes used to manage its risks from previous periods. Investments are well diversified, such that
the failure of any single investment would not have a material impact on the overall level of assets.
Expected contributions to post-employment benefit plans for the year ending March 31, 2025 are ' : 1.45
Crore (March 31, 2024: ' 0.31 Crore)
The weighted average duration of the defined benefit obligation is 5.23 years (2023-24: 5.57 years). The
expected maturity analysis of gratuity is as follows:
(ii) Unfunded
Compensated absences
The Compensated absences covers the liability for sick and earned leave. The Actuarial liability for compensated
absences as at year ending March 31, 2025 is ' 4.68 Crore (March 31,2024: ' 4.20 Crore). Current year
charge is included in Employee benefit expense (Refer Note 30).
Note to Related Party transaction:
1 All transactions entered into with related parties as defined under the Companies Act, 2013 and regulation 23
of the Listing Obligation and Disclosure Requirement Regulations 2015, during the financial year were in the
ordinary course of business and at contractually agreed transaction prices.
2 Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
3 All outstanding balances are unsecured and are repayable in cash.
4 There are no allowances on account for impaired receivables in relation to any outstanding balances, and no
expense have been recognised in respect of impaired receivables due from related parties.
Note - 41
Movement in Provisions
Provision for contingencies represents estimates made mainly for probable claims arising out of litigations / disputes in
respect of certain matters like VAT, Contractual disputes, etc. This includes positions taken on matters under dispute
involving judgements and assumptions to determine the possible outcome. The probability and the timing of the outflow
with regard to these matters depend on the ultimate settlement /conclusion with the relevant authorities.
Note - 43
Registration of charges or satisfaction with Registrar of Companies (ROC)
The Company had repaid certain loans which were taken against pledge of movable properties on due dates as per the
agreed terms in past. The Company had also filed manual forms for satisfaction of these charges as per requirement
with ROC Ahmedabad. However, the satisfaction of the charges has not been updated by MCA while digitizing the
manual records. The Company has sent request letters to the respective lending institutions and is awaiting their
feedback.
Note - 44
Disclosure of transactions with Struck off Companies
There are no transactions done during the year with struck off companies.
Note - 45
Undisclosed Income
There is no income surrendered or disclosed as income during the current or preceding year in the tax assessments
under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,
1961), that has not been recorded in the books of account.
Note - 46
Details of benami property held
No proceedings have been initiated or are pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules made thereunder
Note - 47
Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in crypto currency or virtual currency during the financial year.
Note - 48
(1) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), 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 on behalf of the Ultimate
Beneficiaries.
(2) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), 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.
Note - 49
The Company has initiated formalities to get the name updated in its current name viz. Styrenix Performance Materials
Limited from the erstwhile name.
Note - 50
The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.
Note - 51
Previous year figures have been regrouped to make them comparable with the current year figures wherever considered
necessary. As the figures are in crore, rounding-off calculation to be ignored.
Note - 52 : Events occurring after the reporting period
There are no events that occurred after the Balance Sheet date that require adjustment or disclosure in the Standalone
Financial Statements.
As per our attached report of even date. For and on behalf of the Board of Directors of
Styrenix Performance Materials Limited
For Talati & Talati LLP (formerly known as INEOS Styrolution India Limited)
Chartered Accountants
FRN 110758W / W100377
Rakesh S Agrawal Rahul R Agrawal
Chairman Managing Director
„„ . . DIN : 00057955 DIN : 01226996
Manish Baxi
Partner
Membership No. 045011
Bhupesh P. Porwal Chintan Doshi
CFO Company Secretary
Place : Vadodara Place : Vad°dara
Date : May 24, 2025 Date : May 24, 2025
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