2.2.7. Provisions, Contingent Liabilities and Contingent Assets and Commitments
a) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. Such provisions are
determined based on management estimate of the amount required to settle the obligation at the balance
sheet date. When the Company expects some or all of a provision to be reimbursed, the reimbursement is
recognised as a standalone asset only when the reimbursement is virtually certain.
b) If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
c) Contingent liabilities are disclosed on the basis of judgment of management. These are reviewed at each
balance sheet date and are adjusted to reflect the current management estimate.
d) Contingent assets are not recognized but are disclosed in the financial statements when inflow of economic
benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow
of economic benefits will arise, the asset and related income are recognised in the period in which the
change occurs.
2.2.8. Employee Benefits Expense
Short Term Employee Benefits
a. The undiscounted amount of short term employee benefits expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when the employees
render the services.
Post-Employment Benefits
Defined Contribution Plans
b. A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident
Fund, Superannuation Fund and Pension Scheme. The Company's contribution is recognised as an expense
in the Statement of Profit and Loss during the period in which the employee renders the related service.
Defined Benefit Plans
c. The cost of the defined benefit plan and other post-employment benefits and the present value of
such obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.
d. The Company pays gratuity to the employees whoever has completed five years of service with the Company
at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of
service as per the Payment of Gratuity Act 1972.
e. The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity
payment to the employees.
f. The liability in respect of gratuity and other post-employment benefits is calculated using the Projected
Unit Credit Method and spread over the period during which the benefit is expected to be derived from
employees' services.
g. Re-measurement of defined benefit plans in respect of post- employment are charged to the Other
Comprehensive Income.
2.2.9. Income Taxes
a. The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit
and Loss, except to the extent that it relates to items recognised in the other comprehensive income or in
equity. In which case, the tax is also recognised in other comprehensive income or equity.
Current tax
b. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance
Sheet date.
c. Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to set off
the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
- Deferred tax
d. Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
e. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.
f. Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off current tax assets
against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority.
2.2.10. Foreign currencies transactions and translation
a. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign exchange transactions settled during the year are
recognized in the Statement of profit and loss account of the year.
b. Monetary assets and liabilities in foreign currency, which are outstanding as at the year-end, are translated
at the closing exchange rate/ forward contract booked (if any) and the resultant exchange differences are
recognized in the Statement of profit and loss account.
c. Realized gain or loss on cancellation of forward exchange contract is recognized in the Statement of
Profit and Loss for the year.
d. Gain/ Loss on exchange difference on pending forward exchange contract which are yet to be executed
are measured on the basis of difference between spot rate at year end and with forward contract exchange
rate (premium adjusted) of respective date through "Designated Cash Flow Hedge Reserve".
2.2.11. Revenue recognition
i. Sale of Goods
a. Revenue from sale of goods is recognised when the significant risks and rewards of ownership have
been transferred to the buyer, recovery of the consideration is probable, the associated cost can be
estimated reliably, there is no continuing effective control or managerial involvement with the goods,
and the amount of revenue can be measured reliably.
b. Revenue from rendering of services is recognised when the performance of agreed contractual task has
been completed.
c. Revenue from sale of goods is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government.
d. Revenue from operations includes sale of goods, services and adjusted for discounts (net), and gain/
loss on corresponding hedge contracts.
ii. Interest income
Interest income from a financial asset is recognised using effective interest rate (EIR) method.
iii. Dividends
Revenue is recognised when the Company's right to receive the payment has been established, which is
generally when shareholders approve the dividend.
iv. Insurance Claims
Insurance claims are accounted for on the basis of claims admitted/ expected to be admitted to the extent
that there is no uncertainty in receiving the claims.
v. Government Grants
Government grants, including non- monetary grants at fair value, are recognized when there is reasonable
assurance that the company will comply with the conditions attaching to them and that the grants will
be received.
When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an
asset, the government grant related to asset is presented by deducting the grant in arriving at the carrying
amount of the asset. (See note 43).
vi. Other Operating Income
Export incentives receivable are accounted for when the right to receive the credit is established and there
is no significant uncertainty regarding the ultimate collection of export proceeds.
vii. Trade Receivables
A receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due). Refer to accounting policies
of financial assets in section (o) Financial instruments - initial recognition and subsequent measurement.
viii. Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is
recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are
recognised as revenue when the Company performs under the contract. Costs to fulfil a contract i.e. freight,
insurance and other selling expenses are recognised as an expense in the period in which related revenue
is recognised.
2.2.12. Financial instruments
I. Financial Assets
a. Initial recognition and measurement
All financial assets (other than Trade Receivables) and liabilities are initially recognized at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial
recognition. Purchase and sale of financial assets are recognised using trade date accounting.
b. Subsequent measurement
i. Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
ii. Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
iii. Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL.
c. Investment in subsidiaries, Associates and Joint Ventures
The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
d. Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement of
Profit and Loss, except for those equity investments for which the Company has elected to present the
value changes in 'Other Comprehensive Income'.
e. Impairment of financial assets
i. In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through Statement of profit
and loss (FVTPL).
ii. Expected credit losses are measured through a loss allowance at an amount equal to:
Ý The 12-months expected credit losses (expected credit losses that result from those default
events on the financial instrument that are possible within 12 months after the reporting date); or
Ý Full lifetime expected credit losses (expected credit losses that result from all possible default
events over the life of the financial instrument)
iii. For trade receivables Company applies 'simplified approach' which requires expected lifetime
losses to be recognised from initial recognition of the receivables. The Company uses historical
default rates to determine impairment loss on the portfolio of trade receivables. At every reporting
date these historical default rates are reviewed and changes in the forward looking estimates
are analyzed.
iv. For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
II. Financial liabilities
a. Initial recognition and measurement
All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost.
Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.
b. Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.
III. Derivative financial instruments and Hedge Accounting
The Company uses various derivative financial instruments such as interest rate swaps, currency swaps,
forwards & options and commodity contracts to mitigate the risk of changes in interest rates, exchange rates
and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date
on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives
are carried as financial assets when the fair value is positive and as financial liabilities when the fair value
is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit
and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive
Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as
basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial
assets or non-financial liability.
IV. Hedge Accounting
Hedges that meet the criteria for hedge accounting are accounted for as follows:
(a) Cash flow hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability
or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging
reserve being part of other comprehensive income. Any ineffective portion of changes in the fair
value of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain
or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was
effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative
gain or loss previously recognized in the cash flow hedging reserve is transferred to the Statement of
Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no
longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in
the Statement of Profit and Loss.
(b) Fair Value Hedge
The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates,
foreign exchange rates and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and qualify as
fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer
meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for
which the effective interest method is used is amortised to Statement of Profit and Loss over the period
of maturity.
V. Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A
financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires.
VI. Impairment of non-financial assets - property, plant and equipment and intangible assets
a) The Company assesses at each reporting date as to whether there is any indication that any property,
plant and equipment and intangible assets or group of assets, called Cash Generating Units (CGU)
may be impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated
to determine the extent of impairment, if any. When it is not possible to estimate the recoverable
amount of an individual asset, the Company estimates the recoverable amount of the CGU to which
the asset belongs.
b) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying
amount exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less
cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted
to their present value using pre-tax discount rate that reflects current market assessments of the time
value of money and risk specific to the assets.
c) The impairment loss recognised in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
2.2.13 Operating Cycle
a. The Company presents assets and liabilities in the balance sheet based on current / non-current classification
based on operating cycle.
An asset is treated as current when it is:
i. Expected to be realized or intended to be sold or consumed in normal operating cycle;
ii. Held primarily for the purpose of trading;
iii. Expected to be realized within twelve months after the reporting period, or
iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period
All other assets are classified as non-current.
b. A liability is current when:
i. It is expected to be settled in normal operating cycle;
ii. It is held primarily for the purpose of trading;
iii. It is due to be settled within twelve months after the reporting period, or
iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The company has identified twelve months as its operating cycle.
2.2.14. Earnings Per Share
a. Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period are adjusted for events of bonus issue;
bonus element in a right issue to existing shareholders.
b. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted
for the effects of all dilutive potential equity shares.
2.2.15. Dividend Distribution
Dividend distribution to the Company's shareholders is recognised as a liability in the company's financial
statements in the period in which the dividends are approved by the Company's shareholders.
2.2.16. Statement of Cash Flows
a. Cash and Cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
b. b. Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the Indian
Accounting Standard -7 'Statement of Cash Flow'.
2.3.Critical accounting Judgment and key sources of estimation uncertainty
The preparation of the financial statements in conformity with the Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and
expenses for the years presented. The estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may differ from these estimates under different
assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future periods if the revision affects both current and future
periods. The Management has considered the possible effect of Global Pandemic COVID-19 while preparing the
financial statements.
2.3.1. Depreciation / amortisation and useful lives of property plant and equipment / intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives,
after taking into account estimated residual value. Management reviews the estimated useful lives and residual
values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual values are based on the Company's historical experience
with similar assets and take into account anticipated technological changes. The depreciation / amortisation for
future periods is revised if there are significant changes from previous estimates.
2.3.2. Recoverability of trade receivable
Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a
provision against those receivables is required. Factors considered include the credit rating of the counter party,
the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate
the risk of non-payment.
2.3.3. Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability requires the application of judgment to existing facts and
circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed
regularly and revised to take account of changing facts and circumstances.
2.3.4. Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If
any indication exists, the Company estimates the asset's recoverable amount. An asset's recoverable amount is
the higher of an asset's or Cash Generating Units (CGU's) fair value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or a groups of assets. Where the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no
such transactions can be identified, an appropriate valuation model is used.
2.3.5. Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash
loss rates. The Company uses judgment 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.
2.3.6 Recent pronouncements:
Ministry of Corporate Affairs (MCA) notified Companies (Indian Accounting Standards) Amendment Rules,
2022 vide Notification dated 23 March 2022. Following amendments and annual improvements to Ind AS are
applicable from 1 April 2022.
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable
assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual
Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the
Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change
the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact
in its financial statements
Ind AS 16 - Proceeds before intended use
The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment
amounts received from selling items produced while the company is preparing the asset for its intended use.
Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does
not expect the amendments to have any impact in its recognition of its property, plant and equipment in its
financial statements
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract
The amendments specify that that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to
the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts. The amendment is essentially a clarification and the Company does not expect the amendment to
have any impact in its financial statements.
Ind AS 109 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the '10 percent' test of Ind AS109 in
assessing whether to derecognise a financial liability. The Company does not expect the amendment to have
any significant impact in its financial statements
Ind AS 106 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the '10 percent' test of Ind AS 109 in
assessing whether to derecognise a financial liability. The Company does not expect the amendment to have
any significant impact in its financial statements.
35. EMPLOYEE BENEFIT OBLIGATIONS (Contd.)
(j) A description of methods used for sensitivity analysis and its Limitations:
Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may
vary if two or more variables are changed simultaneously. Discount rate Sensitivity Salary growth rate Sensitivity
Withdrawal rate (W.R.) Sensitivity The method used does not indicate anything about the likelihood of change in any
parameter and the extent of the change if any. Sensitivity analysis is performed by varying a single parameter while
keeping all the other parameters unchanged.
(k) A Description of any Asset-Liability Matching Strategies.
It was informed by the company that Gratuity Benefits liabilities of the company are funded. There are no minimum
funding requirements for a Gratuity Benefits plan and there is no compulsion on the part of the Company to fully or
partially pre-fund the liabilities under the Plan. The trustees of the plan have outsourced the investment management
of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate
provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the
insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be
possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.
(l) The Effect of the Plan on the Entity's Future Cash Flows
The Company has purchased an Insurance policy to settle the Gratuity Payment to their employees. Company may
do the contribution every years based on the funding valuation carry out by insurance company based on the latest
data provided by Company.
41. A. Capital Management
For the purpose of Company's Capital Management, capital includes Issued Equity Capital, Securities 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 maximize the Share Holder Value.
The Company monitors using a gearing ratio which is net debts divided by total capital plus net debt. The
company includes within net debt, interest bearing loans and borrowings, less cash and Cash Equivalents.
B. Financial Risk Management
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the operations of the Company. The principal financial assets
include trade and other receivables and cash and short term deposits.
The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.
i. Market Risk
Is the risk of loss of future earnings, fair values or cash flows that may result from change of interest rates, foreign
exchange rates and other price risks. Financial instruments affected by market risks, primarily include loans &
borrowings and foreign currency payables.
Company's Term Loans & Working Capital interest rates are linked to 1 year MCLR rate, reset annually. Short
Term Borrowings as and when taken are governed by prevailing rates at the time of disbursement.
If the interest rates had been 1% higher / lower and all other variables held constant, the company's profit for the
year ended 31st March, 2025 would have been decreased/ increased by H195.11 Lakh.
The Company is exposed to risk with regard to foreign currency payables.
The Company is affected by the price volatility of Polymer prices. The Company enters into purchase contracts
on a short term and forward foreign exchange contracts (matching the purchase contracts) are entered into to
minimize price fluctuations.
ii. Credit Risk
Is the risk that a counter party will default on its contractual obligations resulting in a financial loss to the
Company. It arises from cash and cash equivalents as well as credit exposure to customers.
The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence
has a low credit risk.
Company's marketing policies & credit period is determined on the basis of segments sales history and credit
worthiness of the customers. The sales affected through dealer network is normally 7-10 days credit period & in
institutional sales some customers open Letters of Credit and some large corporate enjoys the credit facilities
ranging 30-90 days.
41 B. Financial Risk Management (Contd.)
iii Liquidity Risk
The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings
facilities by continuously monitoring forecasts and actual cash flows.
The Company has a system of forecasting next month cash inflow and outflow and all liquidity requirements
are planned.
All Long term borrowings are for a fixed tenor and generally these cannot be foreclosed.
The Company has access to various source of Short term funding and debit maturing within 12 months can
be rolled over with existing lenders/new lenders, or repaid based on short term requirements. Trade and other
payables are plugged as per credit terms and paid accordingly.
All payments are made along due dates and requests for early payments are entertained after due approval and
availing early payment discounts.
43. GOVERNMENT GRANTS
Madhya Pradesh Industrial Development Corporation, a Government of Madhya Pradesh Undertaking, has approved a
sum of H19.15 Crores (Rupees Nineteen Crores and Fifteen Lakh only) as Investment Promotion Assistance out of the
eligible investment of H49.02 Crores (Rupees Forty Nine Crores and Two Lakh only). The total assistance is to be spread
over a period of seven years, subject to compliance with the terms and conditions. Out of the above sum of H19.15
Crores, the State Level Empowered Committee (SLEC) has sanctioned a sum of H2.73 Crore [previous year HNIL] as
Investment Promotion Assistance (IPA) under the Investment Promotion Assistance (IPA) Scheme of Government of
Madhya Pradesh. The same has been reduced from the carrying cost of the eligible assets and such reduced cost of the
assets are depreciated over their useful lives.
44. The company has invested 788141 shares of H10 each (34.78% stake) for H78,81,410 of FP Elite Energy Private
Limited. The company has recognized its share in the profit /loss of Associate Company as " Share in Net Profit /(Loss) of
Associate" in consolidated Financial statements.
45. Fire broke out at the Pithampur (M.P) Plant, on 28th April, 2022. Due to robust safety measures adopted by the
Company, the situation was brought under control without any casualties, but stock and other assets valued at H19.04
crores were damaged. These items were adequately insured and the Company has filed necessary insurance claim
which is under process, deduction (if any) by Insurance company at the time of settlement of claim shall be Accounted
for in the year of settlement. The management is confident of realization of the claim made.
46. Pursuant to the special resolution passed at the Extraordinary General Meeting held on July 15, 2024, and the relevant
regulatory provisions, the Company had allotted on July 27, 2024 by way of preferential allotment, 94,61,480 warrants at
a price of H158.50 each, each warrant carrying an option to apply and be allotted upon being fully paid up within a period
of 18 months from date of allotment one equity share of face value H1 of the Company (including premium of H157.50
per share). The subscription and allotment money - H3749.11 Lakh, being 25% of the total warrant price, was received
during the second quarter and in accordance with earlier approval of shareholders and following early exercise of the
option on payment of balance 75% payable in respect of 15,00,000 warrants [H1783.125 Lakh], during the quarter ended
March 2025, the Company issued and allotted 15,00,000 equity shares of face value of H 1 of the Company (including
premium of H157.50 each) to Kriti Nutrients Limited on 11th February, 2025. Following this allotment, the issued and paid-
up Equity Share Capital of the Company comprises of 5,11,03,520 shares of Re.1 each.
47. OTHER DISCLOSURES
i. No proceedings have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder
ii. The Company has not been declared willful defaulter by any bank or financial institution or other lender.
iii. The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956
iv. The Company has complied the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
v. No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the current as well as the previous year.
vi. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
source or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries,
vii. 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: (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries,
viii. The Company does not have any transaction 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)
ix. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year as well as
in the previous financial year.
x. The Company has not made any contribution to any political party during the current financial year as well as in the
previous financial year.
xi. The Company does not have any benami property as defined under Benami Transaction (Prohibition) Act 1988.
xii. All the immovable property held by the company are in the name of the company.
48. APPROVAL OF FINANCIAL STATEMENTS
The financial statements are approved by the Board of Directors in their meeting held on 22.05.2025.
As per our Report of even date attached
For Rakesh Kumar & Associates For and on behalf of the Board of Directors
Chartered Accountants
F.R.N. 002150C
Puneet Gupta Shiv Singh Mehta Rajesh Sisodia
Partner Chairman and Managing Director Chief Financial officer
M.No.413168 DIN 00023523
Purnima Mehta
Place: Indore Executive Director
Date:- 22nd May'2025 DIN 00023632
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