p) Provi sions, coil t i ngen t assets an d canting ent li abili ties
Provisions a re recognised only when there is a present obligation, as a result of past events, and when a reliable estimate of the
anion [it of obligation can be made at the reporting date. Tli esc estimates are reviewed at each reporting date and adjusted to
reflect the current best osthna ties. Pro visions are discounted to their present values, where the time value of money is material
Contingent li abi Eity is disclosed fur
L Possible obligations which will bceaafiraied only by future- events not wh ol ly within lh e cerntro L of the Coj dpany or
ii. Present obligations arising tiui ti past events where it is not probable that as outflow of resources: will be required to
settle the obligation or a reli a blc esti mate of the amu tint of th e obi igation ca mint he mad e.
Contingent assets ait not recognized. However, when inflow o t eco nonuc ben e fit is probable, related asset ts disclosed.
q) Earnings per share
Basic earnings per share is calculated by dividing Hie net profit or loss tor the period attributable to equity shareholders (after
deducting attributable taxes) by tiie weighted average number of equity shares outstanding during the period. The weighted
average n umber or equ ityslia res outstanding d uri ng tlie peri od is adjusted for events i nctu di ng a bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or Joss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during tile period are adjusted for the effects uf all
difutive potential equity shares.
r} S igu Hicant management j u dgeme nt i n a pplyi ng arcoun d ng policies and esti ma lion uncertainty
The preparation of the Company’s financial statements requires management to make judgements, estimates and
assumptions tiia t a ffect tlie reported amounts ul revenues, expenses, assets and liabilities, and the related disclosures.
Significant management judgements and estimates
Th e f ii ilu wing are s igiu f ean Una nagentent judgements and estimates i n aj rplying the accou nti ng pol ides of tlie Com pany Lti at
have the i oust significant effect on tiie financial .statements.
Recognition uf deferred Lax assets The extent to which deferred tax assets can be recognised is based cm an assess merit of the
pt u ba bilily o 1'the hi tune taxable income ago inst w hicli tli e d eFei red Lax assets ean be utilised.
Evaluation of indicators for impairment ot assets Tlie evaluation of applicability of indicators of impairment of assets
requires assessment of several externa) and internal lactors which could result in deterioration qf recoverable amount of the
assets.
Recover ability ol advances/receivables At cadi balance sheet date, based on historical defaufe rates observed over expected
life, tiie management assesses Ull1 expected credit lass on outstanding receivables and advances.
Defined benefit obligation I DUO) Management's estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, medical cost trends, mortality, discount i ate and anticipation of futuj e salary
increases. Variation m these assumptions may significantly impactriu! DftO a mourn and the annual defined benefit expenses.
Fair value measurements Management applies valuation techniques to determine tlie fair value of financial instruments
[where active market quotes arc not available), Tins involves developing estimates and assumptions consistent witli how
market participants would price the instrument. Management uses die best information available. Estimated fait values may
vary from the actual pt ices tli at wo uld be acli ievud in ait arm's ie uglh transaction a L the r eporting date.
Useful lives nr depreciable/amortazahie assets Management teviews its estimate or the useful lives af depreciable /
amortizable assets at each report! ng date, based on the exported, utility ortho assets. Unccrta inties in those cstiima Eos relate to
tech nica l and economic obsolescence,
sj Revenue recognition
Sales ofgoods
The Company derives rrvenu.es primarily from sale of manu lactuitfd goods. Leaded goods and related services.
The cote principle of lod AS 115 is that an entity should recognise revenue to depict die transfer of premised goods or services
to customers in ait amount that reflects die consideration to which thfrentily expects to be entitled m exchange for those goods
m-services. Specifically, the standard introduces a 5-step approach to revenue recognition.
Revenue is recognized on satisfaction of performance obligation upon transfer of control of products to customers in an
a mount that reflects die consideration the Company expects to receive in exchange tor those products.
Step 1 : Identify the contra ct|sj with a customer
Step 2 : Identity die performance ohligati cm in contract
Step 3 : DeherminetheLrausactionpri.ee
Step 4 : Allocate the transact: on price to tiiepecFo nuance obligations in the contract
Steps : Rceogn ise revenue when [eras ] the ci Uity satis fi es a performance o bligation
Under hid AS t.IS, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when 'conLi ul' of die
goods or services underlying the particular performance obligation is transferred to the customer. The Company has
completed J ts evalu atiou of the poss ib le i m pact uf I nd AS 115 and has adopted the standard fVo u l 1 st April. 20111.
interest Income
Interest income is recognised on unarm nd basis using the effective interest met! md.
Dividend
Dividends are recognised at the time die right to receive Lhe payment is established.
t] Segment in formation
The managing committee is considered to be the 'Chiel OperaLmg Derision Maher' (CODM) as defined in IND AS 108. The
Operating Segment is the level at wtiirh discrete financial information is available. The CODM allocates resources and assess
performance at this level. The Company has one operating segment Le, Chemical Manulacturiug which includes Ehmm
Products and Lithium 11 yd i oxide.
u) Accounting for Lease
Company as a lessee
Tli e Company applies a single recognition and mcasuitinent approach fioi ail leases, except Ebr short-term leases and leases of
tow value assets. The Company recognises lease J labilities to make lease payments and right-of-use assets representing the
right to use the underlying assets.
As pier I nd A S116, the lessee needs to recognise depreciation on rights of use assets and finance costs on tease liabilities in the
statement of profit and loss.
Leases where the lessor effectiveiyreLa iiis substantially ail the risks and benefits u Tow nei ship: of the leased item ai l-classified
as operating leases. Operating lease payments are recognised as an expense in the5LatementofProfit and Loss on a struigJ ti¬
ll ue basis over the lease term unless the payments are structured to increase in line with expected general inflation to
corn pensate lor the 1 essor's expected i nfla tionaiy cost increases.
Com pa ny as a lessor
Leases i n wh icl i Use Company does n ot transfer substa nti a Ely ail the ris ks an d rewards ij icidenta [ to o wnei shi p ol an asset a re
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct
costs: incurred in negotiating and arranging an operating lease are added to the rat lying amount of the leased asset and
recognised over the lease term on the same basis as rental income. Contingent rents a re recognised as revenue in the period in
whi ch they are earned.
v| Government Grants
Government grants / subsidies received towards specific fixed assets Stave been deducted from the gross value of the
l rtrejned fixed assets. Capital Subsidies under MP M5ME Eb otsahan Scheme. ZO17 is recognised to the extent the claims are
accepted and settled.
j a ] AH pci Accu jj ibng lit a i id ;j id 15 "Employee benefits", the d i:; closures as deli ned hi tin: Acton nti ngStandard are given he I aw:
Defined Co ntribu bun Ptun:
duud ilmLJoii Id Pm v i d c m Fund is Rs. 50.96 Lakhs /Ý {Pr evia us Year Rs. 49.67 Lakhs), ESIC an d Labour We fere Fund Includes Hs.
3.95 Lakhs- (Puerto us Year Rs.3.70 Lakhs).
Defined Benefit rtan :
Gratuity and Leave Encasement:
The Company makes partly annua] eu ntribu bon in tite Employees' Group Gratuity-cum-Life Assurance Scheme ol the Life
insurance Em poratmti el India, a I utided benefit plat) ibr qualifying employees. Thu sdiciH provides toj lump sum payment to
vested employees a EECtitemeut, death while in employ mentor on termination of employment o Ian amount equivalent to 15 days
service far each completed year of sc [vice or jiart thereof depending on the date of joining, Tilt benefit vests after Eve years of
continuous service.
Note 3B - Financial Instruments
i} Fair values hierarchy
Financial assets and financial liabilities measured a L fair value in the statement of financial position arc grouped into three
levels oP a fail' value hierarchy. The three Levels are defined based on the observability of significant inputs to the
measurement, as follows:
Level 1 ; q hj oled prices \ uj la dj ListedJ in a ctivemarkets Ibr i dej tticaJ assets or liabri ilies;
Level 2 : The fair vaiue of financial instruments that are not Ira Jed in an active market Is determined using valuation techniques which
maximise Lhe pheofobservable market data and rely as tittle as possible on entity specific estimates.
Level 3 : in pu ts Cor Uil- asset or tiabil i ty that a re not based u n obseivable market da ta (unobservable inp uts J.
jib] Tt^'fJ^^Qpddisiiofjtemai^Ben^^^uptity.wfacTtaii^ptiDoe^inglwbeienjipttMcddi^pfndingdgaiustthfipifLkpaa^
for any Bena ni i property.
fLia i) Tilt Cm tipany does net 1 lave any transact! m l w nJ i nunpaiiics struck c (1.
(iv) The Company docs not Lu^^any charges or satisfaction which is yrttfi be rejpstered with ROC beyond the statutory period,
j v) The Company has nut traded or invested in Crypto cuneney orVirtual Currency during tile financidtyear.
j vi) The Company has nntbe*n declared wiilbl difaidtpj by any bank or Fuianctal institution or grvemin e n t or anygovcrrunent
authority.
(viij The Company has not advanced ui loaned or imesttd fundsTil any other persoofsj or tntity^ies). mdnding foreign entities
(Intermediajtes) with the understandi i ig that the I ute rmed iary shall:
ja] directly 01 indirectly lend or invest in oilier persons or entities identified in any manner whatsoever-by men behalf of
the company | Ultimate Bcneliciarics) or
j b) pro vide any guara nice, sccu i ity or th e !i ke to o r on behail of the U1 timate B cnefiii a r lcs
(ylii) Tht Company has not received any fund from any persons J or entity (its), including foreign entities | Funding Party) with
the mid ersta riding {whether recorded in writing or otherwise) tiia L the Com finny shad:
(a | directly ur indirectly! end or invest in other persons ar cntiLies identified in any manner whatsoever by or on behalf of
the Funding Party (intimate Beneficiaries] or
|b) provide any guarantee, security or die li keen behatrofthe Ultimate Beneficiaries,
jilt) The Company dots not have any transaction which is not recorded in the books of accounts that has been surrendered Ar
disclosed as income do ri ng the year tj l the tax assessments under' the i nronx Tus Act. 1961 (such as. search or su rvey or any
other relevant prov isions of the Income Tart Act, 1961.
Company's maxi 11 turn exposure to credit risk is limited to the carrying amount offinanciat assets recognised at report] ng dab.1.
The Company continuously tojenitors defaults of customers and oilier counterparties, identified either individually or hy tlie
Company, and incorporates this informs Eton into its credit risk controls. Where available at reasonable cost, external credit
ratings and/or t sports on eustorners and other chunter parlies are obtained and used. The Company's policy is to deal only
wills creditwurtiiycuuislerparhes.
In respect of trade and other receivables, tike Company Is not exposed to any significant credit risk exposure to any single
counterparty or any company of counterparties having similar characteristics. Trade receivables consist of a large Dumber of
customers in various paits of India. The Company has very limited history ofen sterner default, and considers the credit
quality of trade receivables that are not past due or impaired to lie good.
Hie credit risk for cash and cash equivalents, mutual funds, hank deposits, loans and derivative financial instruments is
cons idefed riegligj bi e, s in ce the counterparties a re repo tabi e o rgan isations wi Hi high qual i ty extei: ta I cued it ratings.
Company provides for expected credit losses on financial assets by assessing individual financial instruments for expectation
o E'any cred it losses. Since the assets have very low credit risk, and are for varied natn res ai l J purpose, the re Is n o trei id d sat tlie
company can draws to apply consistently tu entire population. Foi such financial assets, the Company's policy is to provides
for 12 mouth expected credit losses upon initial recognition and provides for lifetime expected credit fosses upon significant
increase in credit risk. The Company does not have any expected loss based Impairment recognised on such assets
considering their low credit risk nature, though incurred loss provisions are disclosed under each sub-category of such
financial assets.
Detail o f trade receivables tliat are past d ue is given bci ow :
D] Liquidity risk:
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and die availability of
funding tin tmgls an adequate amount of committed credit facilities to meet obiigaLions when due. Due to the nature af the
business, lb e Company n la in tains flexibili ty i a I'm id ing by i naintainij ig avaiiubil ity unde r coomb tied tacili ties.
Management incrmtors rulhng forecasts of Use Conijsany's liquidity position aiid cash and cash equivalents on the bases of
expected cash flows. The Company takes into account the hqu id ity of the market i u wh icl l the cn tltv u perates. I n add i tiu n. the
Co mpany's I i qu idity ms nagemun t poi icy inv olves pjujecting cas h Hows i 11 major cu rretvri es and cons id uri ng the level of J iq uid
assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatoty
neq ui ret neists and maintai ni ng debt ri nancing plans.
Fit lancing arrangements
Tlie Company had obtained credit facility of Rs. 1035 Laklss limn Kotak Malnndj u Bank Ltd. however tlie same has not been
utiiilned.
Contractual maturities of financial liabilities
The tables below analyse the Company's financial liabilities info relevant maturity groupings based on their contractual
maturities [or all litsn-derivative financial liabilities. The amounts disclosed in die table arc the contractual undiscou sited
cash flows. E3a ia nccs da e wl thin 12 month s equal then ca riy tug amn ants as tl i e i in pact of disco aj iting is no f signi Rea at
Retei1 Note No. 2 D for th e Tra de payabies bifutttati ott
Cj Market risk - foueign exchange
The Company is exposed to foreign exchange nsk arising from foreign currency U'ansactions. primarily with respect to US
Dai Ear. Foreign, exchange risk arises [horn recognised assets and liabiiities denominated in a currency Lhat is not the
Company's lunctional currency The Company, as per its overall strategy imposts raw materials on the basis of market
demand. Tlie Company does not u£ei Si rwgrd contracts and swaps for speculative pu Eposes.
Seiisitivity
The seiisitivity to profit oi loss from changes ih tlie exchange rates arises mainly irons financial instruments denominated in
USD. In case of a reasonably possible change in [NR/UKD exchange lates of /- 2% (previous yea!1 /-2%] at the reporting
date, keeping all other variables constant, there would have been an impact on profits UNNR239.67 Lakhs fpreviousyeaiTNR
143.56Lak!ixJ.
Tots I Borrowing* - -
Sensitivity
The sensitivity to prtrfitw loss In case of a reasonably possible duti»e in interest rates of /’ 50basts points (previous
yeas:: /- 50 basis points]. keep iug ail ci ther variables coastal it, would have i esu I ted in a n impact oil pro fi ts by 1N R 0.00 5
Lakhs S Previous year INR D.D0Z Lakhs |
ii] Assets
The Con ipa tty's financial assets are carried at amortised cost and a re at fined rate only. They are, theieio re, not subject to
interest race risk since neither the carrying amount not the future cash flows will fluctuate because of a change in market
interest nates.
E) Pricerisk
Exposure fr om if ivestme nf s in mulua I funds:
The Company's expos ore to price risk arises from investments in mutual funds held by the Company and classified in the
balance sheet as fair value through other comprehensive income. To manage its price risk arising from investments in
mutual funds, the Company i nvestordy i n liquid funds.
Sensitivity
The sensitivity to profit or Joss in case of an increase m price of the instrument by 5% keep mg ail -other variables constant
ÝhVuu Id have rest! I ted in an i m pact on profits by IN R 569.3 5 Lakhs | previous yea r IN R 4 Z9.8E3 Lakhs).
Exposure from trade payables:
Company generally impost on adavance payment oi on payment at the time or receipt documents. If there is any
transact! onofirnporh; on credit basis. thcnsuciitifisactionis hedged.
Noted 1 -Capital Management:
The Company's capital management objectives are: to ensure the Company's ability In continue as a going concent, to
provide an adequate return Lo shareholders. The company monitors capital on the basis of the carry itig amount of equity
less o sli ai id c-asJ t equ ivaieiits as p u cscn ted on the face of ba ia uce sI Lc-L‘L
The Management assesses the Company's capital requirements m order to maintain an efficient overall financing
structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's various
classes of debt The Company manages the capital sttuctme and makes adjustments to it in the light of changes in the
economic condi turns and the risk characteristics of the underlying assets.
The company mon lien's the capital on the basis oETolJawing ratios:
a) In 1992, STC ot India Ltd had claimed lor Rs. 9.02 Lakhs towards price different*: & others, against this. Honourable
Don ibay I i >g}i Court: ordered Company to give ba ilk guana ntee ofRs. 1.65 Lakhs {Previous year Els. 1.65 Lakhs)
If) Balance i ostalmentts wards work-oiprtjgress of Rs. 2QB6.U6 LaJchs, payable on Use basis ol various' stages of comp lotion
o! p raj ect over the period of live yea rs.
c) The company has created a fixed deposit or Rs. 21 Lakhs marked lien in favour of Customs towards security against
i m po tied ra w materia I.
44 Inter Corporate Deposit consist of a sum of Rs. 509.04 La kits given La M/s Radius Estates Projects Private Li tinted (formei Jy
known as VisJiwaroop Realtors Private Urnited. The said eornpany is in Die pmeess of corporate insolvency i'esoIution process
under tile Insolvency and Lhmkr u ptey code, 2016 {IBC|. The company has filed its claim as financial creditors as per the regulation
E3 of the I DC code for the said outstanding amount. The company is awaiting the Outcome Irmu National Company Law Tribunal
(NCLT). Due to uncertainty in realization of the said debt and pending a decision ofNCLT the company continued not to provide
i n teres Loti th e said loan du ring the financial year.
45 Corpora to Social Resp o nstbil ity: The Co mj i any lias incurred ! N R111.00 lafclis (prev lous year I NR 110.0 0 Laklis} towaids Social
Respu nsi hi I ity activities. It is i Deluded in in Lh e Statemcn L of Profit and Loss. Fu ttfier, no amount I Las been sp ent o n cons ti in. tin n /
acquisition of an asset of Die Company and the entire amount has been spent in cash. The amount lequired to be spent under
Section 135 of the Companies Act, 2013 for the year 2025 is INK 110.57 lakiis Lt 2% of average net profits Toe last three financial
y ea rs, calculatedasper Section 198 of the Companies Act.2 Q13.
46 All assets and liabilities have been classified as current or nun-currentas per the Company's normal operating cycle and other
criteria set out in the Sell ode hr El to the Compa ti ics Act. 2 01.1 Based on the naiu re of piudu els a fid the time between the acquisi Eion
of assets for p recessing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months loi die purpose oE current non current class Ifica bo n of assets and liabilities.
17 The previous year's figures leave been regrouped and rearranged wherever necessary to make in compliance witli die cuiient
financial year.
M rH(*s 1 to 47 liirm an inlegral pnrt uF these [i nan ci at sr.ite me tils.
As per attached report of even date. For and fin hehalf of the Hoard Directors
ter Be him & Co„ I nde Bum S (Hi e mical s Li m tied
Chartered Aixrnmtams Sajatjain Sacliin Gupta
Firm Registration N u. i a 64^21(17 M aoagi tig DI rector & CFO I ndependenl Director
DlNd0314fl55 DIN-093321S3
Anil lain fravlu Cliavau Gnvind Parma] Vatin Shah
Farther Company Secretary Executive Director Independent Director
Membership No, 03*1 tt03 M. No. I6B57 DIN-03S5frii.lt DIN-07155634
Mliiakslii Mittal Vogvili Pati!
Place ; IVtumhat Indep Ell dent Director Independent Director
Date : 13th May.202S FJ IN-072 207 41 DlN-10464221
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