Equity shares of the Company have a par value of H 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(i) As there was no movement in Securities premium reserve, General Reserve, Capital reserve and revaluation reserve during the reporting year and previous year, reconciliation is not given.
(ii) The 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.
(iii) Securities premium reserve is used to record the premiuim on issue of shares. The reserve is utilised in accordance with the provisions of the act.
(iv) Retained earnings are the profits that the company has earned till date, less any transfer to general reserve, dividends or other distributions paid to share holders.
1. Borrowings:
(i) Loan taken from SBI for the outstanding amount as on 31st march 2025 H 1840 millions is repayable. This loan carries an interest rate of 16.5%. The same has been defaulted by the Company and the company is in negotiation with SBI for settlement.
(ii) Outstanding balance of ECB loan taken from IFC is USD 2.36 million Company has applied for extension and it is under process. This loan carries an interest rate of 6.02%.
All the term loans are secured by a charge on the moveable and immovable assets of the Company, present and future, with a pari passu charge.
(iii) Sales tax deferment loan:
The Company has been granted an interest free sales tax deferment loan by the Government of Andhra Pradesh. This loan is unsecured.
(iv) FCCB's from Financial Institutions:
The Company has obtained an FCCB from IFC outstanding as on 31 March 2025 amounting to H 629.50 million with a coupon rate of 0.55% per annum and compounded semi-annually if the conversion option is not exercised. Subsequently, The Company has applied for extension and its under process.
(v) Cash Credit loans:
The Company has working capital facilities in the form of cash credits from State Bank of India, Indian Bank( Erst. Allahabad Bank), Bank of Bahrain and Kuwait with interest rates varying between 14.5% to 16.5%.
(vi) The Company has defaulted in repayment of dues to banks and Financial Instution amounting to H 3,744.56 million as on 31.3.2025 as per books of account. All the loan accounts outstanding as on 31.03.2025 are classified as NPA by the banks. In view of ongoing negotiation with lenders for settlement, interest for the year is not accounted.
(vii) The company has not been declared as wilful defaulter by any bank or financial institution.
33 The company doesn't have any transactions which are not recorded in the books of accounts that have been surrendered or disclosed for tax assessments under Income Tax Act, 1961 during the year.
34 The Company doesn't have any transactions or relationship with struck off companies.
34.1 The company has not made any long term contracts including derivative contracts for which there were any material foreseeable losses as on 31-03-2025
35 The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
36 The company has not received any funds from any persons or entities, 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 ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
37 The company has not traded or invested in crypto currency or virtual currency during the financial year.
38 The company has complied with number of layers prescribed under clause (87) of section 2 of the act read with company rules,2017
39 There are no charges or satisfaction of charges yet to be registered with ROC beyond the statutory period
40 The company has not applied for any scheme of arrangements in terms of section 230 to 237 of the companies act.
d) Terms and conditions of transactions with related parties:
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free.
e) Others:
The Company has given Corporate Guarantee for the credit facilities of H 2.25 Mn availed by the Subsidiaries.
42 SEGMENT INFORMATION
Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that public business enterprises report information about operating and geographical segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, Operating segments and geographical segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company's performance and allocates resources on overall basis.
The Company has two reportable segments - Speciality Chemicals Business and Pharma Business.
44 GRATUITY / LEAVE ENCASHMENT / SICK LEAVE
The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of H 2,000,000.
The following tables summarize the components of net benefit expense recognised in the statement of profit or loss and the amounts recognised in the balance sheet for the plan:
Reconciliation of opening and closing balances of the present value of the defined benefit obligations:
These sensitives have been calculated to show the movement in projected benefit obligation in isolation and assuming there are no other changes in market conditions.
45 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2025 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 ('The MSMED Act') is not expected to be material. The Company has not received any claim for interest from any supplier.
46 LEASES
Where the Company is a lessee:
The Company has taken various office premises under operating leases. The leases typically run for a term ranging from eleven months to five years, with an option to renew the lease after the term completion. The escalation clause in these arrangement ranges from 5% to 10%.
47 EARNINGS PER SHARE
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity Shares.
The following table sets out the computation of basic and diluted earnings per share:
51 SUBSEQUENT EVENTS
There are no significant events that occurred after the balance sheet date.
52 PRIOR YEAR COMPARATIVES
The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year's classification.
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