(m) Provisions and Contingent liabilities:
(A) Provisions
- Provisions are recognized if, as a result of
past event, the company has a present
obligation (legal or constructive), and it
is probable that a cash outflow will be
required to settle the obligation in respect
of where a reliable estimate can be made.
- As the timing of outflows of resources
is uncertain, being dependent upon the
outcome of the future proceedings, these
provisions are not discounted to their
present value.
- When some or all of economic benefits
required to settle a provision are expected
to be recovered from a third party, a
receivable is recognized as on asset if it is
virtually certain that reimbursements will
be received and amount of the receivable
can be measured reliably.
(B) Contingent liability
- A disclosure for contingent liability is
made when is a possible obligation or a
present obligation that may, but probably
will not require an outflow of resources.
- When there is possible obligation or a
present obligation where the likelihood
of an outflow of resources is remote no
provision or disclosure is made.
Commitments include the amount of purchase order
(net of advances) issued to parties for completion
of assets.
Contingent assets are neither recognized nor
disclosed in the financial statements
Provisions, contingent liabilities, and commitments
are reviewed at each balance sheet date.
2.3 Other Accounting Policies
(a) Borrowing Costs
Borrowing costs that are directly attributable to the
acquisition or construction of items of Property, plant and
equipment which necessarily takes substantial period of
time to get ready for their intended use are capitalized as
part of the cost of the asset. Other borrowing costs are
recognized as an expense in the period in which they
are incurred. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to
the borrowing costs.
(b) Government Grants
i. The government grants are recognized only when
there is reasonable assurance that the conditions
attached to them will be complied with, and the
grants will be received.
ii. Government grants in relation to fixed assets are
treated as deferred income and are recognized in
the statement of profit and loss on a systematic and
rational basis over the useful life of the asset.
iii. Government grants related to revenue are
recognized on a systematic basis in the statement of
profit and loss over the periods necessary to match
them with the related costs which they are intended
to compensate.
iv. Government grants that are receivable as
compensation for expenses or losses already
incurred or for the purpose of giving immediate
financial support to the company with no future
related costs are recognized in profit or loss in the
period in which they are becoming receivable.
v. Export benefits are accounted for in the year of
exports based on eligibility and when there is no
uncertainty in receiving the same.
(c) Intangible Assets
Intangible assets are stated at cost less accumulated
amortization and impairment if any. Intangible assets are
amortized over their respective individual estimated useful
lives on a straight-line basis, from the date that they are
available for use. The estimated useful life of an identifiable
intangible asset is based on a number of factors including
the effects of obsolescence etc. Amortization method and
useful lives and residual values are reviewed periodically,
including at each financial year end.
(d) Segment reporting
An operating segment is a component of the company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the
company's other components, and for which discrete
financial information is available.
2.4 Use of accounting judgements and estimates
The preparation of the financial statements in conformity
with Indian Accounting Standards (Ind AS) require
management to make judgements, estimates and
assumptions that affect the application of accounting
policies and the reported amount of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities
at the date of the financial statements and reported
amounts of revenue and expenses during the period.
Although these estimates are based upon management's
best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the
outcome requiring a material adjustment to the carrying
amount of assets or liabilities in future period.
The following are the areas of estimation uncertainty and
critical judgements that the management has made in the
process of applying the Company's accounting policies
and that have the most significant effect on the amounts
recognised in the financial statements:
i. Useful lives of property, plant and equipment
The estimated useful lives of property, plant and equipment
are based on a number of factors including the effects of
obsolescence, internal assessment of user experience
and other economic factors (such as the stability of the
industry, and known technological advances) and the
level of maintenance expenditure required to obtain the
expected future cash flows from the asset.
The Company reviews the useful life of property, plant and
equipment at the end of each reporting date.
ii. Recoverable amount of property, plant and equipment
The recoverable amount of property plant and equipment
is based on estimates and assumptions regarding the
expected market outlook and expected future cash flows.
Any changes in these assumptions may have a material
impact on the measurement of the recoverable amount
and could result in impairment.
iii. Defined benefit plans
Employee benefit obligations are measured on the basis
of actuarial assumptions including any changes in these
assumptions that may have a material impact on the
resulting calculations.
iv. Recognition of deferred tax assets
Management judgement is required for the calculation
of provision for income taxes and deferred tax assets and
liabilities. The company reviews at each balance sheet date
the carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which
could lead to significant adjustments to the amounts
reported in financial statements.
v. Income Tax
The Company's tax jurisdiction is India.
Significant judgements are involved in determining
the provision for income taxes including judgement on
whether tax positions are probable of being sustained in
tax assessments. A tax assessment can involve complex
issues, which can only be resolved over extended
time periods.
vi. Inventory
Management has carefully estimated the net realizable
values of inventories, taking into account the most reliable
evidence available at each reporting date. The future
realization of these inventories may be affected by market
driven changes.
vii. Contingencies
Management judgement is required for estimating
the possible outflow of resources, if any, in respect of
contingencies/claims/litigations against the Company
as it is not possible to predict the outcome of pending
matters with accuracy. The Company annually assesses
such claims and monitors the legal environment on
an ongoing basis, with the assistance of external legal
counsel, wherever necessary.
viii. Fair value measurement
Some of the company's assets and liabilities are measured
at fair value for financial reporting process. In estimating
the fair value of an asset or liability, the company uses
market-observable data to the extent is available.
2.5 Current - non-current classification
All assets and liabilities have been classified as current
and non-current on the basis of the following criteria:
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a. i t is expected to be realised in, or is intended for
sale or consumption in, the company's normal
operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is expected to be realised within 12 months after
the reporting date; or
d. it is cash or cash equivalent unless it is restricted from
being exchanged or use to settle a liability for at least
12 months after the reporting date.
Current assets include the current portion of non¬
current financial assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any
of the following criteria:
a. it is expected to be settled in the company's normal
operating cycle;
b. it is held primarily for the purpose of being traded;
c. it is due to be settled within 12 months after the
reporting date; or
d. The Company does not have an unconditional right
to defer settlement of the liability for at least 12
months after the reporting date. Terms of a liability
that could, at the option of the counterpart, result in
its settlement by the issue of equity instruments do
not affect its classification.
Current liabilities include current portion of
non-current financial liabilities.
All other liabilities are classified as non-current
(n) Operating cycle
Operating cycle is the time between the acquisition of
assets for processing/servicing and their realization
in cash or cash equivalents.
2.6 Applicability of new and revised Ind AS
Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. MCA has not notified any new standards
or amendment to the existing standards applicable to the
company as at March 31,2026.
Further, Ind AS 118, Presentation and Disclosure in
Financial Statements, has been issued by ICAI and
is effective for annual periods beginning on or after
April 1, 2027. The Company is evaluating the impact of
the Standard on its financial statements.
Notes on property, plant and equipment
1. Borrowing cost capitalised during the year H NIL (Previous year NIL).
2. Also refer note 2 (c) for option used by the company to use carrying value of previous GAAP as deemed cost as on April 1,2015
3. The title deeds of all immovable properties are held in the name of the Company.
4. The Company has not revalued its Property, Plant and Equipment during the year.
(b) Terms/ rights attached to equity shares
The company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one
vote per share held.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of
the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the shareholders.
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.
Nature and purpose of reserve
(i) Capital redemption reserve: Capital Redemption Reserve is a statutory , non-distributable reserve into which amounts are
transferred following the redemption of capital or purchase of a company's own shares.
(ii) Securities premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium.
It can be utilized in accordance with the provisions of the Companies Act 2013, for issuance of bonus shares , to provide for
premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc
(iii) General Reserve: General reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
(iv) Retained earnings: Retained earnings represents amount that can be distributed by the Company to its equity shareholders is
determined based on the financial statements of the Company and also considering the requirements of the Companies Act 2013.
(v) Reserve for equity instruments through other comprehensive income : Reserve for equity instruments through other
comprehensive income represents the cumulative gains and losses arising on the revaluation of equity instruments measured
at fair value through other comprehensive income, net of amount reclassified to retained earnings when those assets have
been disposed off.
(vi) Reserve for other items of other comprehensive income : Other items of other comprehensive income comprises income/
(Expense) represent the actuarial gain/(loss) recognised during the year (net of taxes)
The expenses incurred on account of the above defined contribution plans have been included in Note No. 32 "Employee Benefits
Expenses" under the head "Contribution to provident and other funds". Note no.32 includes H0.02 lakhs of Contribution to Labour
welfare fund
36.2 Defined Benefit Plan:
The Company sponsors funded defined benefit plan for qualifying employees. This defined benefit plan of gratuity is administered
by a separate trust that is legally separate from the entity. The trustees are required by the law to act in the interest of the trust and
all the relevant stakeholders i.e. active employees, inactive employees, retired employees and employers, etc. The trust is responsible
for investment policy with regard to the assets of the trust. The Company has a gratuity plan wherein every employee is entitled to
the benefit equivalent to 15 days salary last drawn for each completed year of service. Gratuity is payable to all eligible employees
of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the Payment of Gratuity
Act, 1972 or as per the Company's plan, whichever is more beneficial.
These plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.
i. Salary Risk - Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future
valuations will also increase the liability.
ii. Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the
discount rate assumed at the last valuation date can impact the liability.
iii. Interest Risk - A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the plan assets.
iv. Longevity risk - The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan's liability.
36.3 Other long term employee benefit
(i) Amount recognised in profit and loss in Note No. 32 "Employee benefit expense" under the head
"Salaries, wages and other allowances" towards leave encashment is H16.02 Lakhs (Previous year H9.02 Lakhs).
37. Segment Information
The Company is primarily in the business of manufacturing, purchase and sale of "Acrylic Fibre and Tow. The Chairman, The Vice
Chairman and Whole Time Director of the Company, which has been identified as being the Chief Operating Decision Maker
(CODM), evaluates the Company's performance, allocate resources based on the analysis of the various performance indicator of
the Company as a single unit. Therefore, there is only one reportable segment for the Company.
42. Financial Instruments and Risk Management
42 (a) Capital Management
The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to
stakeholders through optimization of debt and equity balance. The capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the company. The primary objective of the company's capital management
is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. In order to maintain
or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares.
Level 1:
Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices
in the active market.
Level 2:
Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices
included within Level 1 that are observable for such items, either directly or indirectly.
Level 3:
Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based
on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on
assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based
on available market data.
Sensitivity of Level 3 financial instruments are insignificant.
The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly
transaction between market participants.
The following methods and assumptions were used to estimate the fair values:
Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value
(NAV) for investments in mutual funds declared by mutual fund house.
Investment in preference shares: Fair value is determined by reference to quotes from fund houses/portfolio management services
companies/respective issuer of preference shares, i.e. value of investments.
Derivative contracts: The Company has entered into various foreign currency contracts to manage its exposure to fluctuations in
foreign exchange rates. These financial exposures are managed in accordance with the Company's risk management policies and
procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived
from observable market data, i.e., mark to market values determined by the Authorized Dealers Banks.
Quoted equity investments: Fair value is derived from quoted market prices in active markets.
Unquoted equity investments: Fair value is derived on the basis of net asset value approach, in this approach the net asset value is
used to capture the fair value of these investments.
Financial risk management
The financial assets of the company include investments, loans, trade and other receivables, and cash and bank balances that derive
directly from its operations.
The principal financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables
and the main purpose of these financial liabilities is to finance the day to day operations of the company.
The company is mainly exposed to the following risks that arise from financial instruments:
(i) Market risk
(ii) Liquidity risk
(iii) Credit risk
The Company's senior management oversees the management of these risks and that advises on financial risks and the appropriate
financial risk governance framework for the Company.
This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage
these risks:
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and investment risk.
(a) Foreign currency risk
The company imports certain assets and material from outside India. The exchange rate between the Indian rupee and foreign
currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the company
is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates
against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognised assets and
liabilities denominated in a currency other than company's functional currency.
The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign
currency risk by hedging appropriately. The Company uses foreign exchange forward contracts/options to mitigate the risk
of changes in exchange rates on foreign currency exposures.
Foreign currency sensitivity analysis
Any changes in the exchange rate of EURO and USD against INR is not expected to have significant impact on the Company's
profit or equity due to the less exposure of these currencies. Accordingly, a 10% appreciation/depreciation of the INR as indicated
below, against the EURO and USD would have increased/reduced profit by the amounts shown below. This analysis is based on
the foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting
period. The analysis assumes that all other variable remains constant: (H In Lakhs)
Foreign exchange derivative contracts
The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business
or financing activities. The company's Corporate Treasury team measures the risk through a forecast of highly probable foreign
currency cash flows and manages its foreign currency cash flows by appropriately hedging the transactions. When a derivative is
entered into for the purpose of being a hedge, the company negotiates the terms of those derivatives to match the terms of the
hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows
of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the
foreign currency. All identified exposures are managed as per the policy duly approved by the Board of Directors.
The following table gives details in respect of outstanding foreign currency forward held by the company to mitigate the risk of
changes in exchange rates on foreign currency exposures. (FC In Lakhs)
(b) Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's
debt obligations with floating interest rates.
As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to
the Company's debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these
financial statements. The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest
rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
(c ) Security Price Risk Management
Exposure in equity
The Company is exposed to equity price risks arising from equity investments held by the Company and classified in the balance
sheet as fair value through OCI.
Equity price sensitivity analysis
The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the year.
If the equity prices had been 5% higher / lower:
Other comprehensive income for 31st March 2026 would increase / decrease by H17.08 Lakhs (31 March 2025: increase / decrease
by H 17.01 Lakhs) as a result of the change in fair value of equity investment measured at FVTOCI.
Exposure in mutual funds
The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment
in these mutual fund schemes is reflected though Net Asset Value (NAV) declared by the Asset Management Company on daily
basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investments.
Mutual fund/Preference share price sensitivity analysis
The sensitivity analysis below have been determined based on Mutual Fund Investment at the end of the year. If NAV has been
1% higher / lower:
Profit for the year ended 31 March 2026 would increase / decrease by H 179.66 Lakhs (31 March 2025 by H 182.16 Lakhs) as a result
of the changes in fair value of mutual fund investments.
(ii) Liquidity Risk
The financial liabilities of the company, other than derivatives, include loans and borrowings, trade and other payables. The company's
principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations.
The company monitors its risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company
plans to maintain sufficient cash and marketable securities to meet the obligations as and when fall due. The below is the detail of
contractual maturities of the financial liabilities of the company at the end of each reporting period:
(iii) Credit Risk Management
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk on cash and
bank balances is limited as the company generally invests in deposits with banks and financial institutions with high credit ratings
assigned by credit rating agencies. Investments primarily include investment in liquid mutual fund units, bonds, fixed maturity plan
etc. issued by institutions having proven track record.
The company assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal
course of business. The credit limit of each customer is defined in accordance with this assessment
The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting date.
The company has not considered an allowance for doubtful debts in case of Trade receivables that are past due but there has not
been a significant change in the credit quality and the amounts are still considered recoverable.
Other than financial assets mentioned above, none of the Company's financial assets are either impaired, and there were no
indications that defaults in payment obligations would occur.
Write off policy
The financial assets are written off in case there is no reasonable expectation of recovering from the financial asset.
43. In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether
there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that
no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment
loss has been provided in the books of account.
•The company has incurred excess CSR expenditure of H 19.03 lakhs in previous years, out of which Rs 17.00 lakhs has been adjusted in the previous
year ended 31st March 2025. This excessive expenditure of H19.03 lakhs was adequately disclosed in the previous year's Directors' Report and was
also submitted with ROC via CSR-2 (of earlier years).
***Amount Spent includes H17.58 lakhs paid towards previous years' unspent CSR obligation.
Note - The company also has booked liability amounting to Rs 11.98 lakhs (Previous year H7.05 lakhs) against the interest received
on CSR fixed deposits under the head of other current financial liabilities.
Detail of Deposit in Unspent CSR account:
Pursuant to the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social responsibility
Policy) Rules, 2014, the company was required to spend the prescribed amount towards Corporate Social responsibility (CSR)
activities during the financial year.
Out of the total CSR obligation for the year, an amount of H18.34 lakhs remained unspent as at the end of the Financial year (relating
to Ongoing Projects).
In respect of the ongoing projects, the unspent amount of H18.34 lakhs have been transferred within 30 days from the end of the
financial year to a separate bank account titled "Unspent CSR Account", to be utilised within a period of three years from the date
of such transfer.
b. Trade receivables and contract balances -
The company classifies the right to consideration in exchange for deliverables as Trade receivables.
The balances of trade receivables at the beginning and end of reporting period have been disclosed at Note no. 10
Trade receivables are presented net of impairment in the Balance sheet.
Contract Liabilities includes advances received from customers to deliver goods.
The revenue of H Nil has been recognized during the period ended 31 March 2026 (Previous year- Nil) against performance
obligations satisfied (or partially satisfied) in previous period.
d. Performance obligation
Sale of goods: Performance obligation in respect of sale of goods is satisfied when control of goods is transferred to customer,
generally on delivery of goods satisfied at a point in time and payment is generally due as per terms of contract with customer (5
day in case of domestic; 90 days against letter of credit).
e. Remaining performance obligation
The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as
at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue.
47. The Government of India, vide Notification dated 21st November, 2025, has notified 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 Labour Codes"), which consolidate and replace existing multiple labour legislations.
In accordance with Ind AS 19 - Employee benefits, changes to employee benefit plans resulting from the new Labour
Codes are treated as plan amendments, requiring immediate recognition of past service cost as expense in the statement
of profit and loss. This approach is consistent with the guidance issued by the Institute of Chartered Accountants of India.
The implementation of the Labour Codes has resulted in an increase of H 0.82 crores in the provision for gratuity and long-term
compensated absences, which has been recognized as an employee benefit expense in the financial results for the year ended
31st March, 2026. The Company continues to monitor developments on the rules to be notified by regulatory authorities,
including clarifications/ additional guidance from authorities and will continue to assess the accounting implications basis
such developments/ guidance.
Remarks for more than 25 % change in ratios of FY 2025-26 as compared to FY 2024-25:
(i) Increase in current ratio by 55.86% is primarily due to a substantial rise in current assets from H224.12 cr to H275.66 cr, mainly
due to higher investments, GST recoverable balances, and moderate increases in receivables and cash balances, despite a
reduction in inventory. This improvement reflects liquidity supported by reallocation of funds from advances to suppliers and
inventory into liquid assets, thereby increasing overall current ratio.
(ii) Debt Equity ratio reduced to Nil as at 31/03/2026 (from 0.001 in previous year) primarily due to full repayment of short term
borrowings, which stood at H17.69 lakhs as at 31/03/2025, indicating no debt.
(iii) The significant increase in Debt-service coverage ratio to 196.94 (from 60.86) is primarily driven by higher earnings available
for debt servicing, which increased from H15.15 cr to H30.40 cr due to improved profitability supported by improved market
conditions and full capacity plant operations during the year. Production was interrupted for 48 days due to market condition
and lower margin in FY 24-25, whereas no such interruption occurred in FY 2025-26.
(iv) Return on Equity increased significantly to 11.06% (from 4.91%) primarily due to a substantial rise in net profit from H11.82
crores to H27.25 crores during the year. This improvement is driven by improved market conditions and uninterrupted
operations in FY 2025-26, as against a 48-day production interruption in the previous year, resulting in better margins and
overall profitability.
(v) Trade Receivables Turnover Ratio increased to 31.99 (from 22.52) primarily due to higher revenue from operations and
a reduction in average trade receivables during the year. This is also due to reduction in trade receivables on account of
outstanding receivables against LC.
(vi) Net Capital Turnover ratio decreased to 1.62 (from 2.26) primarily due to relatively higher level of net working capital, despite
an increase in revenue from operations during the year. Increase in current assets, reflected in improved current ratio, has led
to higher funds in working capital.
(vii) Net Profit Ratio increased to 8.55% (from 4.20%) primarily due to a significant rise in net profit by H15.43 crores along with
higher revenue from operations during the year. This improvement is driven by better operating margins supported by
improved market conditions and full-capacity plant utilization in FY 2025-26, as against production interruptions in the
previous year.
(viii) Return on Capital Employed increased to 11.02% (from 6.56%) primarily due to higher earnings before interest and taxes during
the year. This improvement is driven by better profitability supported by improved market conditions and uninterrupted
operations in FY 2025-26, as against production interruptions in the previous year, resulting in more efficient utilization of
capital employed.
49. The company does not have any Benami property, where any proceeding have been initiated or pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).
50. The company has not been declared as willful defaulter by any bank or financial Institution or other lender.
51. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
52. The company does not have any such transactions which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the 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).
53. The company has not advanced or loaned or invested funds (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:
(a) directly or indirectly lend or invest in other person 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.
54. The company has not received any fund from any person or entity, including foreign entities (Funding parties) with the
understanding (whether recorded in writing or otherwise) that the company shall:
(a) directly or indirectly lend or invest in other person 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
55. The Company has not traded or invested in Crypto currency or Virtual Currency, during the financial year.
56. There are no loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and their related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment.
57. The company has taken unsecured borrowings from banks (No security provided). The quarterly returns/statements are not
required to be filed by the company with the banks.
58. The company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period.
59. Previous year figures in the financial statements, including the notes thereto, have been reclassified wherever required to
confirm to the current year presentation/classification.
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