2.15. Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognised only when there is a present obligation as a result of past events and when
a reasonable estimate of the amount of obligation can be made. The amount recognised as a provision
is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).
Contingent liabilities are disclosed for (i) possible obligation which will be confirmed only by future events not
wholly within the control of the Company or (ii) present obligations arising from past events where it is not probable
that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made. Contingent assets are neither recognised nor disclosed in the financial statements.
2.16. Financial instruments:
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of these instruments. Financial assets and financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as may be appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or
loss are recognised immediately as profit or loss.
2.17. Financial assets:
All regular purchases or sales of financial assets are recognised and derecognized on a trade date basis.
Regular purchases or sales of financial assets that require delivery of assets within the time frame established by
regulations or convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortized cost or fair value,
depending on the classification of the financial assets.
2.18. Classification of financial assets:
Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt
instruments that are designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is to hold assets in order to collect contractual
cash flows; and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income (except for debt instruments that are designated as at fair value through profit or loss on
initial recognition):
• the asset is held within a business model whose objective is achieved both by collecting contractual cash
flows and selling financial assets; and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Interest income is recognised in the Statement of Profit and Loss for FVTOCI debt instruments. For the purposes of
recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured
at amortized cost. Thus, the exchange differences on the amortized cost are recognised as profit or loss and other
changes in the fair value of FVTOCI financial assets are recognised in Other Comprehensive Income and accumulated
under the heading of ‘Reserve for debt instruments through Other Comprehensive Income'. When the investment
is disposed off, the cumulative gain or loss previously accumulated in this reserve is reclassified to profit or loss.
All other financial assets are subsequently measured at fair value.
2.19. Effective interest method:
The effective interest method is a method of calculating the amortized cost of a debt instrument and
of allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees paid or received that form an integral part of the
effective interest rate, transaction costs and other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified
as at FVTPL. Interest income is recognised in profit or loss and is included in the “Other income” line item.
2.20. Investments in subsidiaries:
On initial recognition, these investments are recognized at cost plus any directly attributable transaction cost.
Subsequently measured at cost and tested for impairment.
2.21. Investments in equity instruments at FVTOCI
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to
present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity
instruments. This election is not permitted if the equity investment is held for trading. These elected investments
are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated
in the ‘Reserve for equity instruments through other comprehensive income'. The cumulative gain or loss is not
reclassified to profit or loss on disposal of the investments.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages
together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.
Dividends on these investments in equity instruments are recognised in profit or loss when the Company's right
to receive the dividends is established, it is probable that the economic benefits associated with the dividend will
flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of
dividend can be measured reliably. Dividends recognised as profit or loss are included in the ‘Other income' line
item.
2.22. Financial assets at fair value through profit or loss (FVTPL):
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair value in Other Comprehensive Income for investments in equity
instruments which are not held for trading.
Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria are measured at FVTPL. In
addition, debt instruments that meet the amortised cost criteria or the FVTOCI criteria but are designated as at
FVTPL are measured at FVTPL.
A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may
be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the
gains and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses
arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates
any dividend or interest earned on the financial asset and is included in the ‘Other income' line item. Dividend
on financial assets at FVTPL is recognised when the Company's right to receive the dividends is established, it
is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not
represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.
2.23. Impairment of financial assets:
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting
period. The Company recognizes a loss allowance for the expected credit losses on financial asset. In case of
trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial instruments
for recognition of impairment loss allowance. The application of simplified approach does not require the Company
to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a
provision matrix on the basis of its historical credit loss experience.
2.24. De-recognition of financial assets:
The Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the
sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in
other comprehensive income and accumulated in equity is recognised in profit or loss if such gain or loss would
have otherwise been recognised in profit or loss on disposal of that financial asset.
On derecognition of a financial asset other than in its entirety, the Company allocates the previous carrying amount
of the financial asset between the part it continues to recognize under continuing involvement, and the part it no
longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference
between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration
received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised
in other comprehensive income is recognised in profit or loss if such gain or loss would have otherwise been
recognised in profit or loss on disposal of that financial asset.
A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part
that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of
those parts.
2.25. Foreign exchange gains and losses:
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of each reporting period.
• For foreign currency denominated financial assets measured at amortized cost and FVTPL, the exchange
differences are recognised as profit or loss except for those which are designated as hedging instruments in
a hedging relationship.
• Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in
foreign currency rates are recognised in Other Comprehensive Income.
For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated
as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are
recognized as profit or loss and other changes in the fair value of FVTOCI financial assets are recognised in Other
Comprehensive Income.
2.26. Financial liabilities and equity instruments:
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or
loss is recognised in profit and loss on the purchase, sale, issue or cancellation of the Company's own equity
instruments.
Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and
commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance
with the specific accounting policies set out below.
Financial Liabilities at FVTPL
. Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration
recognised by the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for
trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages
together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading or contingent consideration recognised by the
Company as an acquirer in a business combination to which Ind AS 103 applies, may be designated as at FVTPL
upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise;
• the financial liability forms part of group of financial assets or financial liabilities or both, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Company's documented risk
management or investment strategy, and information about the grouping is provided internally on that basis;
or
• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire
combined contract to be designated as at FVTPL in accordance with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised
as profit or loss. The net gain or loss recognised profit or loss incorporates any interest paid on the financial
liability and is included in the ‘Other income' line item in these Statement of Profit and Loss.
However, for not-held-for-trading financial liabilities that are designated as at FVTPL, the amount of change in the
fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised in
Other Comprehensive Income, unless the recognition of the effects of changes in the liability's credit risk in Other
Comprehensive Income would create or enlarge an accounting mismatch in profit or loss, in which case these
effects of changes in credit risk are recognised in profit or loss.
The remaining amount of change in the fair value of liability is always recognised in profit or loss. Changes
in fair value attributable to a financial liability's credit risk that are recognised in Other Comprehensive
Income are reflected immediately in retained earnings and are not subsequently reclassified to profit or loss.
Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are
designated by the Company as at fair value through profit or loss are recognised in profit or loss.
Financial liabilities subsequently measured at amortized cost Financial liabilities that are not held-for-trading and
are not designated as at FVTPL are measured at amortized cost at the end of subsequent accounting periods. The
carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based
on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is included in
the ‘Finance costs' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Foreign Exchange Gains and Losses
For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the end
of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of
the instruments and are recognised in ‘Other income'.
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL,
the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss.
Derecognition of Financial Liabilities
The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged,
cancelled or have expired. An exchange between with a lender of debt instruments with substantially different
terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable
to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable is recognised in profit or loss.
2.27. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies the Board of Directors of the Company is required to make
judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. 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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised 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 estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below:
a. Useful lives of property, plant and equipment
The Company reviews the estimated useful lives of Property, Plant and Equipment at the end of each
reporting period. During the current year, there has been no change in life considered for the assets except
those specified in the exceptional items.
b. Provision for doubtful receivables
The Company makes provision for doubtful receivables based on a provision matrix which takes into account
historical credit loss experience and adjusted for current estimates.
c. Estimation of net realisable value of inventories
Inventories are stated at the lower of cost and net realisable value. In estimating the net realisable value of
inventories the Company makes an estimate of future selling prices and costs necessary to make the sale.
d. Provision for employee benefits
The Company uses actuarial assumptions to determine the obligations for employee benefits at each
reporting period. These assumptions include the discount rate, expected long-term rate of return on plan
assets, rate of increase in compensation levels and mortality rates.
e. Provision for taxes
Significant judgments are required in determining the provision for income taxes, including the amount
expected to be paid/ recovered for uncertain tax positions.
f. Significant judgement in determining the lease term of contracts with renewal options
The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered
by an option to terminate the lease, if it is reasonably certain not to be exercised.
39. Exceptional Item
a. During the current financial year, the company has provided for an amount of ' 279 lakhs towards the
diminution in the value of certain finished goods and ' 43 lakhs towards the anticipated deductions from the
insurance claim for the damaged inventories and shown as exceptional items
b. During the previous financial year, the company has provided for the Unspent Corporate Social Responsibility
(CSR) obligations for the earlier years amounting to ' 554 lakh (already funded to the designated bank
account as per CSR Rules) and the same has been shown as exceptional items for the previous year.
40. Segment Reporting (IND AS 108)
The Company is exclusively engaged in the business of Manufacture and sale of Petrochemical products primarily
in India. As per Ind AS 108 “Operating Segments” specified under Section 133 of the Companies Act, 2013, there
are no reportable operational or geographical segments applicable to the Company.
During the year 2019-20, the Company has received a demand from Tamilnadu Pollution Control Board (TNPCB)
seeking payment of ' 200 lakh as interim environmental compensation for causing damages to the environment
pursuant to order of National Green Tribunal (NGT). Further the NGT has directed to identify the industries that
are causing pollution and collect the environmental compensation. In the opinion of the Company the PCB has
made the demand without following the above direction. The company has filed its submissions denying liability
mentioned in demand notice and is awaiting the response from TNPCB.
*Against the above demands, the Company has not paid any amount during the year. The demand liability
pertaining to previous financial year has been rectified by the authority.
The above amounts are based on the notices of demand or the assessment orders or notifications by the relevant
authorities, as the case may be, and the Company is contesting these claims with the respective authorities.
Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate
authorities and the Company's rights for future appeals before the Judiciary. No reimbursements are expected
**Includes ' 1,432 lakhs [Previous year ' 1,272 lakhs] of refund due to the Company adjusted against disputed
Income Tax demands by the Income Tax Department and the disputed demands are being contested by the
Company before the appropriate forum. Based on the Legal advise received by the Company and merits of the
cases, the Company is expecting favourable orders.
43. Employee Benefits (Ind AS 19)
Defined contribution plans
The Company makes Provident fund and Pension (Funded) contributions to defined contribution plans for
qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the
payroll costs to fund the benefits. The Company recognised ' 152 lakhs (year ended 31 March, 2024 - ' 146 lakh)
for Provident Fund contributions and ' 1 lakh (year ended 31 March, 2024 - ' 59 lakh) for Pension (Funded) Fund
contributions in the Statement of Profit and Loss. The contributions payable by the Company to these plans are at
the rates specified in the rules of the schemes.
Defined benefit plans
The Company offers the following employee benefit schemes to its employees:
i) Gratuity (included as part of gratuity expense as per Note 32 : Employee benefits expense).
ii) Post-employment benefits (included as part of Post-employment benefits as per Note 32 : Employee benefits
expense)
iii) Compensated absences (included as a part of contribution to Provident & other funds as per Note 32 :
Employee benefits) expense).
Gratuity- Plant 1:
Gratuity payable to employees is based on the employees' service and last drawn salary at the time of leaving the
services of the Company and is in accordance with the rules applicable for payment of Gratuity.
Inherent Risk:
The Plan is Defined Benefit in nature, administered by a Trust which is sponsored by the Company and hence it
underwrites all the risks pertaining to the Plan. In particular, this exposes the Company to actuarial risk such as
adverse salary growth, change in demographic experience, inadequate return on underlying Plan assets. This
may result in an increase in cost of providing these benefits to its employees in future. Since these benefits are
lumpsum in nature, the Plan is not subject to any longivity risk.
Gratuity- Plant 2:
The Gratuity Fund relating to Plant -II is being maintained with Life Insurance Corporation of India and the Company
contributes to the fund based on the valuation by LIC.
45. Operating Leases (Ind AS 116)
Bulk storage facility at Ennore Port
The lease is for a period of 15 years from 1st April, 2014 . In the event of premature termination of this agreement
prior to the expiry of fifteen year firm period, the Company is liable to make payment of termination compensation
as per terms of agreement. The lease agreement provides for an increase in the lease payments by 3% every year.
Corporate Office premises
The lease has been renewed for a period of 9 years from 1st November 2024. The lease agreement provides for an
increase in the lease payments by 15% every 3 years. During the year the lease agreement has been renewed for
further period of 9 years at same terms and conditions.
Plant-2 premises
The revised lease rent has been considered as basis for adopting Ind AS 116 “Leases” with effective from
01.04.2021. Accordingly, the Right of Use Asset value and corresponding lease liability are based on the above
have been arrived at 3,323 Lakhs and recognised in the books of accounts, Adjustments, if any necessitated
by the actual terms of the renewal would be made to these in due course, on receipt of the same from the
Government. (Refer Note No. 53)
Lease of Land (GIDC)
During the year, the Company has entered in to a long term lease agreement for a period of 93 years, for a plot of
land at Saykha village(Gujarat) and IND AS 116 has been adopted for the lease from the date of acquisition.
Proposed dividend on equity shares is subject to approval at the ensuing annual general meeting and not
recognised as a liability as at March 31,2025.
49. Capital Management (Ind AS 1)
The objective of the Company's capital management structure is to ensure sufficient liquidity to support its business
and provide adequate return to shareholders. Management monitors the long term cash flow requirements
including externally imposed capital requirements of the business in order to assess the requirement for changes
to the capital structure to meet the said objective. As part of this monitoring, the management considers the cost
of capital and the risks associated with each class of capital and makes adjustments to the capital structure, where
appropriate, in light of changes in economic conditions and the risk characteristics of the underlying assets.
The funding requirement is met through a combination of equity, internal accruals, borrowings or undertake other
restructuring activities as appropriate.
No changes were made in the objectives, policies or processes during the year ended 31 March 2025.
50. Financial Risk Management Objectives and Policies (IND AS 107):
Financial Risk Management Framework
Company's principal financial liabilities comprise borrowings, trade payables and Other financial liabilities.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal
financial assets include Investments, Trade receivables, loans, cash and bank balances and other financial assets.
Risk Exposures and Responses
The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for
managing each of these risks, which are summarised below.
i. Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may change as a result of
changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other
market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk
sensitive financial instruments including investments and deposits, foreign currency receivables, payables
and borrowing.
Interest Rate Risk
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 short term borrowing with floating interest rates. The Company constantly
monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and
financing cost.
The Company mainly sources its materials domestically and the exports are not substantial, there has been no
major commodity price risks faced. Accordingly, there has been no commodity hedging activities undertaken
by the Company. As regards the Foreign exchange risks, the Company takes forward contracts based on the
exposure and extant market conditions and details of hedging are available in the financial statements.
ii. Credit risk management
Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables and advance for suppliers) and from its financing/ investing activities, including
deposits with banks, mutual fund investments, foreign exchange transactions and financial guarantees.
Trade Receivables
Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy
for each customer and based on the evaluation credit limit of each customer is defined.
Total Trade receivable as on March 31,2025 is ' 6,878 Lakhs (March 31,2024 is ' 7,228 Lakhs)
As per simplified approach, the Company makes provision of expected credit losses on trade receivables
using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each
reporting date wherever outstanding is for longer period and involves higher risk. Historically, probability of
default for the company's trade receivables is nil or negligible.
Expected credit losses for the trade receivables credit impaired amounting to ' 28 Lakhs (March 31, 2024
' 28 Lakhs)
Cash and Cash Equivalents and Bank Deposits
Credit risk on cash and cash equivalents and balances with Banks is considered to be minimal as the
counterparties are all substantial banks and Corporates with high credit ratings. The Directors are unaware
of any factors affecting the recoverability of outstanding balances at 31 March 2025.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on
time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and
marketable securities and the availability of funding through an adequate amount of credit facilities to meet
obligations when due. The Company's treasury team is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management.
Management monitors the Company's liquidity position through rolling forecasts on the basis of expected
cash flows.
The table below provides details regarding the remaining contractual maturities of financial liabilities and
investments at the reporting date based on contractual undiscounted payments.
B) Fair value measurements (Ind AS 113)
The fair values of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The Company has established the following fair value hierarchy that categorises the values into 3 levels.
The inputs to valuation techniques used to measure fair value of financial instruments are:
Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities.
The fair value of all stocks which are traded in the stock exchanges is valued using the closing price or dealer
quotations as at the reporting date.
Level 2: maximize the use of observable market data and rely as little as possible on company specific
estimates. The mutual fund units are valued using the closing Net Asset Value. If all significant inputs required
to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in Level 3.
(ii) Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current
assets. The quarterly returns or statements of current assets filed by the Company with banks and financial
institutions are in agreement with the books of accounts.
(iii) Wilful defaulter
The company has not been declared as Wilful defaulter by any bank or financial institution or government or
any government authority.
(iv) Registration of charges
The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
(v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(vi) Compliance with approved scheme(s) of arrangements
The group has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
(vii) Utilization of borrowed funds and share premium
During the year, the Company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the group (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of
the ultimate beneficiaries. In respect of funds invested in earlier years details are disclosed in Note No. 44(e).
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 group shall 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 provide any guarantee, security or the like on behalf of the ultimate
beneficiaries.
(viii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous financial year in the
tax assessments under the Income Tax Act, 1961, and hence requirement to record in the books of accounts
does not arise.
(ix) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.
(x) Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous financial year.
(xi) Relationship with struck-off companies
The Company has transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956 and below are the disclosure of dealings with struck of companies and its outstanding balances as at
31st March.
The period of lease relating to the leasehold land expired on June 30, 2017 for which request for renewal for a
further period of 30 years has been filed by the Company with Government of Tamil Nadu, which is under process.
Pending renewal, lease rent has been paid till 30th June 2025 and has been accepted and encashed by the
authorities. The Management is confident that renewal of the lease will be granted as requested, as the land has
been put to use for the specific purpose for which it has been allotted and hence no adjustments for impact of
non-renewal, (which however is unascertainable at this point in time), are necessary in the Standalone Financial
Statements.
The company has adopted Ind AS 116 “Leases” with effective from 01.04.2021 considering that the lease would
be renewed and lease rent obligations as per the demand notices received. Accordingly, the Right-of-Use Asset
value and corresponding lease liability are recognised in the books of accounts. Adjustments, if any necessitated
by the actual terms of the renewal would be made in due course, on receipt of the same from the Government
The Auditors have included an Emphasis of Matter on the same in their Audit Report.
“The manufacturing plants of the company have been affected by the floods (Cyclone Michaung) in the month of
December 2023 caused temporary disruptions to the plant operations including certain damages. The company
resumed plant operations in a phased manner during December 2023 and entire plant operations started in
January 2024 after carrying out repairs. The company has assessed the damages to the Property, Plant &
Equipment (PPE) and Inventories for which claims have been lodged with the insurer which is currently under
evaluation. Pending determination of the eventual damage as adjusted for salvages, the PPE are continued to be
carried at book values and further the cost incurred towards repairs and reinstatement of assets, derecognition of
affected assets and differential value of inventories on disposal amounting to ' 1,871 lakh is carried as Insurance
receivable (net of interim claim received amount ' 300 lakhs), in view of which the impact on the Standalone
Financial Statements is unascertainable, accordingly no adjustments have been made in the Standalone Financial
Statements in this regard.
The Auditors have included an Emphasis of Matter on the same in their Audit Report.
55. Regrouping
Previous period / year figures have been regrouped, wherever necessary to confirm with the current year's
presentation and disclosure.
56. Approval of Financial Statements
The financial statements of Manali Petrochemicals Limited were reviewed by Audit Committee and approved by
the Board of Directors at its meeting held on May 13, 2025.
As per our report of even date attached
For Brahmayya & Co., For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 000511S
Lokesh Vasudevan Ashwin C Muthiah R Chandrasekar
Partner Chairman Managing Director & CEO - MPL Group
Membership No. 222320 (DIN: 00255679) (DIN: 06374821)
Place: Chennai/Gurgaon K Lalitha G Sri Vignesh
Date : May 13, 2025 Chief Financial Officer Company Secretary
|