* I he carrying amounts of trade receivables and cash and cash equivalents, approximates the fair values, due to their short term nature.
1 the Company's borrowings have been contracted at floating rates of interest which resets at short intervals Accordingly, the carrying value of such borrowings (including interest accrued but not due) apporximates fair value
b. Financial risk management
The Company has exposure to the following nsks ansing from financial instruments:
• Credit risk;
• Liquidity risk , and
• Market Risk Interest rate
Credit risk is the nsk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations
Credit nsk on cash and cash equivalents is limited as the Company generally invests in deposits with scheduled banks.
The maximum exposure to the credit risk at the reporting date is pnmanly from trade receivables. Trade receivables are typically unsecured and are derived from revenue earned from operations
(il) Liquidity risk
Liquidity nsk is the nsk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by detivenng cash or another financial assets The Company's approach to manage liquidity is to have sufficient liquidity to meet it's iiabiities when they are due, under both normal and stressed circumstances, without incumng unacceptable losses or nskmg damage to the Company's reputation
Exposure to liquidity risk
The (oJtowing are the remaining contractual maturities of financial liabilities at the reporting date. The contractual cash flow amounts are gross and undiscounted, and includes interest accrued but not due on borrowings
21. Segment Reporting
The Company is engaged in the manufacture of Specialty Chemicals, which in the context of Ind AS 108- Operating segment speeded under section 133 of the Companies Act, 2013 is considered as a single business segment of the company-
22. FIRE INCIDENT
Afire broke out af our Vasai. Patghar. Maharashtra plant on 09" January, 2024 Tins incident resulted in 1 fatality The fire has resulted in disruption of operations at the plant owing to damage to some inventory and property, plant and equipment (csL at ? 9.38 lakhs) Alternate arrangements for continuity of operations have been made The Company has insurance policies covenng inventory, property, plant and equipment and a claim has been filed. This being an event occurring after the balance sheet date, the impact of loss will be accounted for in FY2023-24.
23. Additional Disclosures
Additional information and disclosures as required under Schedule ill to the act to the extent applicable to the company has been disclosed.
i The Company does not have any Ben ami property, where any proceeding has been inibated or pending against the Company for
holding any Benami property.
iL The Company does not have any transactions with companies struck off
iii. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory penod
iv The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2024.
v. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ic-s) including foreign entities (Intermediaries) with the understanding that the Intermediary sh3ll (a) directly or indirectly iend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, secunty or the like to or on behalf of the Ultimate Beneficiaries
vi. 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 (a) directly or indirectly tend or invest in other poisons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Benoficiaries) or (b) provide any guarantee, secunty or the like on behalf of the Ultimate Beneficiaries
vfi. The Company has no such transaction which is 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 TaxAct 1961)
viii The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority
24 The company has evaluated the option permitted under section 115BAA of the Income Tax Act, 1961 (the "Act") as introduced by the Taxation Laws (Ammendment) Ordinance, 2019. Accordingiy. the Company has presently decided to continue with the existing tax structure
25. The previous year figures have been regrouped, reallocated or reclassified wherever necessary to confirm to current year classification and presentation
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