p) Provisions; contingent assets and con tlngent I iabl If ties
Provision.*; a re recognised only w I: : i there!.*: a present obligati on, as a result of past events, and when a reliable estimate of the
amount of obligation can be made at the reporting date, These estimates are reviewed at each reporting date and adjusted to reflect the cu mmt best esti mates. Provisions a no d I scounted tn th c I r preset) t va lu os, who ne the time value of mo ney i s tna to ria I. Contingent liability is disclosed for
i. Possible obligations which will be confirmed only by hi lure events not wholly Within the control of the Compart^ or :i. Present obligations arising from past events whart it is not probable lliat an outflow of resources will lie required to settle t he oblige tie n or a netia hie estimate o f the amo art o f the obligation ca nn ot be m a dc.
Contingent assets are not recognized. However when inflow of-econoiniiibenefit is probable, related asset ^disclosed-
q) Earnings per share
basic earnings per share is calculated by dividing the net prof it or loss for the period attributable to equity shareholders falter deducting attributable tones} by the weighted average r umber of equity shares outstanding during the period. Thy weighted average n umhu r o l equ ity sha res outstanding d nri ng the period is ad j Listed ft* r events incl udinga bon us is s ue. for the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable tn equity shareholders and the lighted average number bf shares outstanding during fire period are adjusted for the effects of all di I u t ive potemti a I equ i ty shafts,
r'l Significant manage me ni judgement In applying accounting policies and estimation uncertainty
The preparation of the Company's financial statements requires management to make judgements, estimates and assumptibfls tli n t affect rh e reported a m oti n is of r&ven11 ns, expenses, ns.suis an d itabi Liti us, and 1 lie related dlsclosu res.
Sign ifi cai Lt i nd Ha ge m eiitju dge n ion tsaud csli m a tes
Th e to 11 ow i ng a re Sjgni fica nt man a gc me lit j ud ge me nts and es ti nt a te s i rui p piyi ng th e a cco u nti n g p ol ides o 11 lie Compa ny that have Li™ iTiosi significant effect uti ih;j financial via Cements.
Recognition of deferred tax assets The extent to wiiicii deferred tax assets can he recognised is based on an assessment of lire probability of t he future taxable i ocome against which the deferred tax asset s can bq utilised
Evaluation of indicators for impelrincht of asset.** The evaluation of applicability of Indicators of impairment of'asset.*; requires assessment of several external and internal factors which could result In deterioration of recoverable amount of the asiiots.
Recovei* ability of advances/receiv a bfes - Attach balance sheet date, based on histori cai del ault rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.
Defined benefit oh ligation (DllOj Management's estimate of die DRO is based on a number of critical underlying assumptions such as standard rates of inflation, medical tost trends, mo rta lily, discount rate and anticipation of future salary ineieanos.VarLiuiOEim theseassumpt ions may significantly impact theOBDamouni and the a rniual defined benefit expenses. Faii* value measurements Management applies valuation techniques to determine the fair value of financial instruments [where Active market quotes are rot available!, This involves deveteping estimates aid assumptions consistent with how market participants would |iri<jH=-1 hi' Inst riiLiieni. M ;ij i :i.u-h me 111 uses the best Ini^jrmAttert available. Estimated fair values may vary r rai mil e actual prtees that wu u id be.adiieved in ah a rhi's !«Lgt L t ra tisat ttei l at ttiar eportl 11; Ý date,
Useful lives of depreciabte/atnoftizabU assets Management reviews its estimate ol the useful lives of depreciable j amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technics] and economic obsolescence, s) Reven u e recognition
Sates of goods
rhe Company derives revenues primarily from sate of manufactured guilds, traded goods a net related services,
Tli c core pi'inci pi c of J n d AS 31 h is that a n entity sliou I d reco gni se neven ue to de pset the tra nsfer of promised goods o r scr v.i cos uvtustomers in ah amount that reflects theconsideration to which theernil^evjj^cts to |aeentitled in exchange for Umsegood^ or services, Specifically; the standard introduces a 5-step approach to revenue recognition
Revenue Is recognized on satisfaction of performance obligati cm upon transfer of co nli-11 of products to customers iji an a mount that re Fleas the con sideratlp n the Coni pa ny exp ects to rere i ve Lr e?tcha uge for those products.
Step! : Identify the contractfs) with a customer Step2 : [dLrofifytheperfo-rnn.ance obligation ui contract Step 3 : fJcieriiiiiiL1 the transagjdon price
Stc p 1 : Alloca tc t h e t ran suction price to the por/orman to ob I i ga tio ns in the contra ct Si U P!? : Itecogri iso revn n 11 a w hen [o r u s) [ ii u eci L Uy .sa L is Ties a perfo n n ;j net: old (gallon
Under hfd AS 115. an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when 'control' of the goods or services underlying the particular performance obligation is transferred to the customer. The Company lias completed its ova luation of the poss i blc i mpact of E rtd AS 115 a nd has adopted the s ta nd art! fro m 1 st April, 2018.
Interest Income
] merest income is recognised on an accrual bar is us i ng th e effective inte rest meth od.
Dividend
U i vid ends a re recogn ised at lb e ti me the rigli t to receive the payment is est ablis bed. tj Segment Informatjon
The managing committee is considered to be the Chief Operating Decision Maker' fCODM) as defined in !ND AS Ida. The Operating Segment is Lb;: Level at which discrete financial information Is available. 7 ho CODM allocates resources and assess performance at this level. The Company has one operating segment i.e Chemical Mann tart tiring which includes Boron FToducts and Lithium Hydroxide, u) Ac^untmg far Lease Co m pany as a J es see
I'he Company apphesa single recognition and measurement approach for all leases, except for short-term leases and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets,
As per hid A 5 116-. th e lessee needs to recogn i se depreefatio non l ights of use assets and filtan.ee costs or 1 eas e 1 i a bi I ilti es i n the s tatemen t of profits ltd J osnfc
Leaseswherothelesh'oreffectivelyrutainssuhstontiallyaHiheriskstmdbenefitsofownershipoftlteleaseditemart’classified as operating leases. Operating lease payments are recognised as an expense in the Statement ui Profit and Loss on a slraighf-hue basis over the lease term unless the payments are structured to Increase in lint with expected general Inflation to compensate fc r the lessor's expected inflation^ cost increases,
Company as a lessor
Lea ses i n which the Co mpa ny does not tra ns fer su hstau tial ly a I! the risks a nd rfflvards i nctdental to owne ns hi p o f a n a sset an1 classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs maij'i'ud in. negotiating arid arranging an operating lease are added to the carrying amount of the leased asset and neoogtt ise d over the lease term on the same basis as ren fa 11 n com a. Cor t i rgr rct re nts a re rtmogn ised us revenue in the pe riod in which they aha earned. v| Goyemment Grants
Government grants / subsidies received towards specific fixed assets have been deducted from the gross value of the Concerned fij^passets. Capital Subsidies under MB MSMJ1. Protsahan Scheme, 2017 is necogriisSd to the extent the claims are accepted and settled,
pi] TbeCom|>anyd<!fi$TUi't have any Ben a ml property, where any proteedmg has been Initiated or pending against the Com parry fottony Ken j ini property,
[II if) T\w.Ci>mp@ny does nothaveanytransactionxv11h.Ctnnpan«?s s; rneftoff.
(iv] The Company does not have any charges or satisfaction which is yet to be registered with RUC beyond t lies tot utoiy period,
[ v] The Company has no< i radm! or Inves ted In Crypto currency ofVirtuat Currency the Qn&nciaJ year
fvi) The Company has not been declared wilful def'auJ ter by any bank or financial institLEtJon or government or any government authority.
(vii) The Company has not advanced or loaned or invested funds to any other person(sJ or entitypesj, including Foreign entities [Ininnnedtar^s] wit ii i he 1111 tier? landing thali he I rtoTmed i a ry shall:
fa) directly or indirectly Lend or in vest in other persons or entities identified in any manner whatsoever by or on he half of th e Cttlnps ny (Tlltlltidte Benefi-ciahes) or
(b) provide any guarantee. seen rity or the like to or on behalf of the Ultimate B e nefifiJa lies
Cviii] The Company has not receivetj any fund from any persemfs) or entity[ies), including foreign entities [Funding ibiiiy] witli the un del-stand in g l whet Iter recorded i n writing o r otherwi se) that th e Company shai I
[a] directly or indirectly fjitjdS or invest In other persons or entities identifier! in any manner whatsoever by or on tie half of the Funding Tally | Ultimate FIenetici ariesj or
[bf provitk'.my gn: i rant t^-e, seen rity nr the like on behalf off he Ultimate Betiefidarl es,
(ittj The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or < I isdosm I an income during the yea r i ti r ho ta x asieSS m ij nts u n tter the I n Co me Tax At i. I % l [su r:h as, sc a h-hors urveyi or a ny other rei e van t provisions of tiie income Jan Act. ID 61).
A) Credit Risk;
Credit i isk is the I isk that a customer or counter party to a financial instrument will tad to pc i form or pay amount? due to the Company causing financial Joss. It arises front cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to Customers relating to outstanding receivables. The Compaiiy's maxi mum Ktpostire.'totr^Jit risk is I mined to the Greying amount off inaticiaJ assets recognised at reporting d;tte.
The Company tom inuously monitors defaults of customers and oth*?r tourtterpscrties, identified either individually or by the Company, mid incorporates this information Into Its credit risk controls. Where available at reasoniahie cost, external credit ratings and/or reports on customers and other counterparties ait obtained and used. TJie Company's policy is to deal only with creditworthy [parties
in respett or trade and other receivable^, the Company is not exposed Lo any significant cried IL risk exposure in any single counterpa rty or any com pa ny ni co un te rpa i t ics hav t ng si m i la r cii a ractc r i s tics. Tredo race iv a bios con list of a I a rgc nu m her of customers in various parts of India The Company has very limited history of customer default, and considers the credit qual 1 ty of trade rece ivabl es t hat n re n ot past d ue or i m pa i red to be good.
The crt’dii risk for cash and cash equivalents, mutual funds, hank deposits, loans and derivative financial instruments is to nsi dt red ijegl i«i I jie, si nee til e coupterparti es are reputa hie orga n i satio 11s wi th ii i gh q ua ii ty external cved i t rati ngs.
Cuni pany pntvidk.h for expected c red ii lossex on fi nandaI assets iiy <i;ss !h.h my Individual Imancia 11 nsi rumhnts forexpe^aUuti of any credit losses. Since the assets have very I mvc red it risk, and are mi- varied natures and purpose, there i^fifo trend that the company can draws to apply consistently to entil e population. For such financial assets, the Lam puny's policy is to provides for 12 montIi expected credit 1 osses upon iriitinl recognition and provi(tea for 1 ifetime expected eredit Insses upon si^niticant increase in credit risk. The farm parly does not have any expected loss based impairment recognised or such assets consider inf; their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such fine ltd a I assets.
B) Liquidity risk:
Prudent liquidity risk riiaiiagemeiii implies maintaining sufficient cash and marketable securities unci the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Hue to the nature of the business, the Company maintains flexibility in funding by m a inta in in g availability under committed facilities.
Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. l1ie Compa ny takes in to a ccouitl the llq uidity of the nta rke t i n which the e ntity operates.! n a dditio n, l he Company's liquidity management policy involves projecting cash flows in uuior currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and munitumingdetii financing plans.
Financing arrangements
The Company laid obtained credit fiielUy of Rs. 1035 Lakhs from Kotik Muliindre Hank Ltd, howevej the saint has not been uliiilred
Co litre etna I mat LI riT ies o f f i oa n ela 111 a h i I n i es
The tables beluw analyse tile Company's financial I labilities into relevant maturity groupings based on their conn-actual TTiiiturit^s for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual uudlseounted cash Flows. Balances due within 12 months equal their carrying amounts as the impact of discounting, is notsignificant Refer Note No. 20 furl bn Trade payables bifu real ion.
CJ Market risk-foreign exchange
The Company Is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US lfnl far Riretgll exchange nsk arises from recognised assets ami liabilities denominated in a currency lha1 is not Ihic-p Company's hi net in uni currency. The Company, as per its overall strategy imports raw materials on the basis of market demand. The Company does notuse forward contracts and swaps for speculative purposes Sensitivity
Tin1 sensitivity to profit or luSsffOm changes In the exchange rates arises mainly from financial instruments denominated m USD in case of a reasonably possible change in I Nfi/USD exchange rates of */- 2% (previous year */-2%) at the reporting date, keeping all other variables constant; there would have been an impact on profits uf INK 143.56 Lakhs [previous yea (riNK 267.77 Lakhs).
Total non wlngn - Ý
Sensitivity
The son sit iviLy to profit or Lo.m In case of a reasonably possible change in Interest i-dtesof */- 5-0 basis points (previous year: /-50 basis points), keeping all other variables constant, won Id have resulted in ail impact on profits by INR0.$fttl2 Lakhs {Previous yearl N Pi Q.OOZtiaktis] ii) Assets
I'he Company's financial assets are earned at amortised cost and are at fixed rate only; They are, therefore, not subject to Interest rate risk since neither the carrying .amount noi tliefuturemsh flows will fluctuate because of a change in market interest rates
It} Price risk
Exposii re from i investments i n mutuai fund s:
The Co mpany's exp osure to p rice tis k a rises from investing nts i n m utual fund s he] d by the Company and dassif i ed i n the balance sheet as fair value thfOugh other comprehensive income. To manage its price risk arising from investments in mutual funds, the Co m pany in vest onljtrn liquid Kun ds.
S h ns i L i Vity
Tiic sensiti v ity to profit or lo ss in case of a n j tic tease in p ri ce of the mstr u m not by 5% keep i ng aii othc r va Flab I r s co nstan t would have resulted in an impact on profits by INK429-8S Lakhs (previousyenr INK 89,?7 Lakhs).
Exposure iron Lrad*payables:
Company generally import on adavance payment or on payment at the time or receipt documents, ]t there Is any i rans;i ct ion of i mports o n i;red it basls, 1 h en s11ch t rnsacti on is hedge d-Note41 - Capital Management)
The Company's capital management objectives are: to ensure th e Com pony's ability to continue as a going concern, to [i I'Ovidf’ a n ad ei| U 3 L H rvl u rn b i iha relinld Sr\ Til a Llomp3 ny rrtfi n i pu s C31 Vital (HI the bSs i S i if the t:;inf i rig 3 in OUDt of H>q u i ty I e s s cj 5 h j nd cash eq u ivale nts a.1; psrese nted o n t he til ce c l baia lice sh eet.
The Management assesses the Company's capital requirements in Order to maintain an efficient overall Financing structure while avoiding excessive leverage, This takes into account the subordination JeveEs of the Comp a nv's various classes of debt I he Company manages the capital structure and makes adjustments to it in the light of changes in the f con omic condi tions a nd the risk oharcicte ri sties of th e n ndetlying ass e ts,
The company monitors the capital on the basis of following ratios:
3 Commitment and Ct>i diligent i.iabiliy:
j) In JfJR2, ST'C of India ltd had claimed for Its. ‘J.02 Lakbi inwards price difference ft. others. agomsi this, Honourable Bombay High Court h irdcted fin mpuny to give bmik gnu 1'™ tee of R,s. 1,65 Ijkhx (Prt^iouSyearRs, 1 65 Lakhs]
b) Balance instalment towards work-in - progress of Rs. 2086.06 Lakhs, payable or the basis of various stages of completion of pro i-ect over the period off ive years.
c) The company has created a fixed deposit of Us. 31 Lakhs marked lien in favour of Customs towards security against impo rted re w ma te rial,
44 'lire amount reflected in capital work in progress represents advance given for Unit / Flat Mo. 1601 and 1602 for project named Avenne SdfatS.V. Hoad, San ta cm* {West J Mumbai -400 054, the said project is likely to He completed hy December, 2022 as per the term1! of the booking. HnwevSI! the Builder has tmilnterally altered tbi date of possession !<i 30th December 2024, wit limit in forming the company as well as U> other allottees, i n spile of repeated reminders for reglstrat ion of sale agreement, the same has nnL hi MH: n «d hy L he R it 11 lie r LI li dale, i Ý) V Lew of tills the CO Fit pa ny has fi I ed m 11 l | dal rU 11 r M A H A RII it A ;jg;3 i n h L the 11 l i i Id a r:
The MAMA It I'iRA has givigjti the verdict on 29th February, 20 j4 in. favour of the company S; nth era! locoes and directed the Builder to exeru to & register the agreement for sale with iti two months from the date of the order.
5 Inter Cor | Harare DepoxiL consist of a a nm of Rs. 509,104 Lakhs tjiven m M/s. Radius Bstalcx Projects Private Limited [formerly known as Vixliwaronp Realtors Private Limited. The said company is in the process of corporate insolvency resuSuisoti process under the In solvency and Bankruptcy code, 2016 (til Si Tire company has filed its claim as financial creditms as per the regulation B o f th t IR Cl code for the said on tsta nding am uu n t. 'i'Ji e c oni pa ny is await i ng ill e outcome I ru in Nati ona I tie m pa ny La w Tri btinal (MtILT), Dtp* to uncertainty in realization oft lie Mid debt and pending a decision of NCLT the company con turned not to provide in te Liest o n the sa td J oan du ring the financial year.
46 Corporate Social Responsibility; The Company has incurred IfiR 1 10,00 lakfts (previous year INK 79,0!i Ijkhs) towards Social
| Ý u n m i h 11 n v actlv 11 ies. I tit I nctuded in I Mb e Sts t« men i of Pit >fit an d l .ds.h . Further, no amoun i. has been s | mi i o n ex ms tructlun / acquisition of an asset of List Company and the entire amount has boon spent in cash. The amount required to be spent under Section 135 of the Companies Act, $513 for the year 2024 is [NR JOB. 16 lakhs i.e. 2% ufsy?(rsj;e net profits fut list three financial years, calculated as per Section 198 oft he Companies Act,2013_
47 All assets and liabilities have been, classified as current or nmi-current as per the Company's normal operating cycle and other criteria set out ini he Scheduled] to the Com panics Act. 2013. Based on the natu re of prod nets and the time between the acquisition of as sets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 m o nth s io r th e p u rpose o f cu rren L - n on cu men Ltlassifit ati on of assets a ntt lia bii i ties
48 The previous year's figures have been regrouped and rearranged whenever necessary to make in compliance with the current tiiianciaiyear.
Notes 1 to 48 form an integral part of these financial statements.
As per attached report of even date. Fur- and on behalf of the Board Directors
For Hohra ft Co., Indo Borax & Clm mi cals Limited
Chartered Accountants Sajal lain Sachin Gupta
Firm Registration No. 136492W Managing Director & CFO Director
DIN-00314055 DIN-09332193
Anil fain Sreelekha Jain VogeshPatU
ParLner Director Directur
Membership No. 039803 DIN-08057096 DIN-104-64:221
Gov led Parma r FravinCImvan
Place ; Mumbai J- seen Live Director Company SecreLary
Unto ; 2 S'11 May, 2024 [HN-03556411
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