*FVTPL- Fair Value through Profit and Loss
*FVTOCI - Fair Value through Other Comprehensive Income
> Assets that are not financial assets (such as receivables from statutory authorities, Deposits recoverable, other advances recoverable, Power Subsidy receivable) as of 31st March 2025 and 31st March 2024 are not included.
> Other liabilities that are not financial liabilities (such as statutory dues payable, advance from customers, Advance Received for land & Other Liabilities) as of 31st March 2025 and 31st March 2024 are not included.
> The carrying amount of above financial assets and liabilities are considered to be same as their fair values, due to their short-term nature.
2.2.18 Financial Risk Management:
Risk Management Framework
The Company’s Board of Directors has the overall responsibility for the establishment and oversight of the Company’s risk management framework.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Board of Directors monitors the compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
a) Credit risk
Credit risk is the risk that counter party will not meet its obligation under a financial instrument or customer contract leading to a financial loss. The Company’s is exposed to credit risk mainly from trade receivables and other financial assets.
(i) Trade receivables
Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company’s through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company’s grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company’s uses expected credit loss model to assess the impairment loss or gain. The Company’s uses a provision matrix and forward-looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. Concentrations of credit risk with respect to trade receivables are limited.
The Company’s exposure to credit risk arises primarily from its financial assets, including cash and cash equivalents, loans and advances, and other receivables.
Cash and cash equivalents are maintained with banks and financial institutions that have high credit ratings. Accordingly, the credit risk associated with these balances is considered low.
Other financial assets include loans and advances to body corporates, which are subject to higher credit risk due to the nature of counterparties and terms of such advances.
In addition, other current and non-current financial assets primarily comprise:
• Advances paid to suppliers
• Other recoverable advances
• Power subsidy receivables
• Balances with statutory authorities (such as GST input credit and direct tax receivables)
While receivables from statutory authorities are considered recoverable from government agencies, the Company has not obtained external confirmations for advances paid to suppliers, other advances, and power subsidy receivables. This increases the inherent credit risk associated with these balances.
The Company evaluates the recoverability of all such financial assets at each reporting date based on internal assessments, past experience, and other available evidence. Provisions for impairment are recognised only when there is a clear indication of credit loss or significant uncertainty about recoverability, including but not limited to the absence of confirmations or evidence of counterparty risk.
b) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
c) Interest rate risk:
(i)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 is exposed to interest rate risk because funds are borrowed at fixed interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.
The borrowings of the Companies are principally denominated in rupees with a mix of fixed and floating rates of interest. The Company’s has exposure to interest rate risk, arising principally on changes in base lending rate. The Company’s uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings
2.2.19 Financial Instruments and Related Disclosures Capital Management
The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern. The capital structure of the Company is based on Management’s judgment of its strategic day-to-day needs with a focus on proper mix of total equity and debt so as to maintain investor, creditors and market confidence.
The Management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust its capital structure.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other resources. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents. The following table summarises the capital of the Company:
2.2.20 Other Statutory Information
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company has no transactions or balances with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
(iii) 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 lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(iv) 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:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
(v) There are no charges or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.
(vi) The Company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies (Restriction on number of layers) Rules, 2017
(vii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account
(Viii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
These financial statements are approved for issue by the Board of Directors at its meeting held on September 06, 2025
Note No. 2.03b: Reasons for Investments in Equity Instruments designated to be measured at Fair Value through Other Comprehensive Income
The Company has elected an irrevocable option of classifying the non current investments under fair value through other comprehensive income as they are not held primarly for trading.
Note No. 2.03c: Fair valuation of Equity Instruments measured at Fair Value through Other Comprehensive Income: - The company is unable to determine the fair value as on 31.03.2025 of its investments in various unlisted companies due to non availability of financial statements. However, the company has considered the financial statements of preceding year for impairment.
Terms/ rights attached to equity shares
Equity shares have a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts.
Mr. MVVS Murthi , holding 25,67,769 equity shares (15.66%), passed away. As of the date of this report, the legal heir(s) or nominee have not yet been confirmed. The shares remain in the name of Late Mr.MVVS Murthi pending legal transmission. The company will update the register of members and shareholding pattern upon completion of the transmission process in accordance with applicable laws.
Nature of reserves:
a) Capital Reserve: Capital reserve represents the subsidy received from the State Government of Andhra Pradesh.
b) Securities premium: Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of Companies Act, 2013.
c) General reserve: The general reserve is created by way of transfer of part of the profits before declaring dividend pursuant to the provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
d) Asset Revaluation Surplus: Revaluation Surplus represents the upward or downward changes in the value of assets in response to major changes in its fair market value.
e) Retained earnings: Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company.
f) Other Comprehensive Income:
Other Comprehensive Income (OCI) represents the balance in equity for items to be accounted under OCI and comprises of:
items that will not be reclassified to profit and loss
a. The Company has made an irrevocable election to present the subsequent fair value changes of investments in OCI. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value including tax effects. The company transfers restated fair value amounts from this reserve to retained earnings when the relevant financial instruments are disposed.
Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act):
The identification of suppliers as micro, small, or medium enterprises under the MSMED Act, 2006 is based on information and records available with the Company.
The management has not yet completed the process of identifying such enterprises, and accordingly, the required disclosures relating to amounts unpaid as at the year end together with interest paid/payable under the MSMED Act, 2006 have not been furnished.
Note No 2.27 (a): The company has not provided both Employer’ and Employees’ contribution to Provident fund during the year based on Order no. TS/PTC/ENF/17192/4741 dated 08.05.2015 issued by Regional PF Commissioner-II & Authority under section 7A of EPF & MP Act, treating the establishment as permanently closed after making the assessment up to August 2013.
Note No 2.27 (b): Employee benefit plans:
As per IND AS 19 “Employees Benefits” the disclosure of Employee Benefits as defined in the Accounting Standard are given hereunder:
Defined Benefit Plans:
In view of retrenchment of all work men as memorandum of settlement entered into by the company with the workers’ union and termination of services of most of the employees of the company, the liability towards the gratuity of the Skeleton staff on rolls as at the balance sheet date has been computed at the present value, instead of actuarial valuation using the Projected Unit Credit Method. Accordingly, the various disclosures required under the Accounting standard could not be made.
Note No: 2.31
During the year, the Company elected to apply the short-term lease exemption under Ind AS 116 for leases with a term of 12 months or less. As a result:
ROU assets and lease liabilities for these leases have been derecognized.
Lease payments are now recognized as an expense in the Statement of Profit and Loss.
This change, in line with Ind AS 116, does not impact net profit or retained earnings but shifts lease costs to operating expenses.
Note No .2.32: Additional Regulatory Information
Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.
Note No: 2.37
During the financial year, the Company's manufacturing facility was temporarily shut down due to significant fluctuations in the market. This shutdown was necessitated by unfavorable market conditions that adversely impacted the demand for the Company's products.
The duration of the shutdown is currently uncertain. The management is actively monitoring market developments and will determine the timing and manner of resuming operations based on improvements in market conditions.
The financial impact of the shutdown is being evaluated, including its effects on revenue, costs, and overall financial performance. However, based on current assessments, the management is confident about the Company's ability to continue as a going concern and believes that operations will recommence once the market stabilizes and demand improves.
Note No: 2.38
The Company has provided interest-free advances to certain parties during the financial year. These advances are not to directors or companies in which directors are interested.
However, these interest-free advances are made without charging any interest, which may be viewed as inconsistent with the requirements under Section 185 of the Companies Act, 2013, which regulates loans and advances by the company.
Note No: 2.39
The company could not conduct the impairment test in the carrying cost of cash Generating assets of the Company in terms of Accounting for Impairment of Asset (IND AS 36) of Companies (Indian Accounting Standard) Rules, 2015 due to uncertainty of cash flows from CGA.
Note No: 2.40
Balances lying in the lenders', sundry creditors, like, suppliers', service providers', employees' and customers' accounts are subject to confirmation.
Note No: 2.41
In accordance with IND AS - 12: "Income Taxes" issued by Ministry of Corporate Affairs and mandated under Sec 133 of Companies Act, 2013, the Company has not recognised (Deferred Tax Asset) in the books of account as there is no virtual certainty of realisation of the same in future year.
Note No: 2.42
Balances in the Longterm borrowings, Trade payables & Other Liabilities are subject to Confirmation.
Note No: 2.43
The Board of Directors of the Company, at its meeting held on [insert date], approved a Scheme of Amalgamation under Sections 230 to 232 of the Companies Act, 2013, involving the merger of Orissa power consortium limited and VBC Renewable Energy private Limited (unlisted entities) with Chrome silicon Limited (the Company). The appointed date of the scheme is 1 st July 2024.
'The Scheme has been filed with the Bombay Stock Exchange (BSE) for necessary approvals. As on the date of approval of these financial statements (30 th May 2025), the Scheme is pending final approval . Accordingly, these financial statements have been prepared on a standalone basis and do not reflect the impact of the proposed amalgamation.Upon receipt of the necessary approvals and the Scheme becoming effective, the Company will give retrospective effect to the merger in accordance with applicable accounting standards (Ind AS 103 - Business Combinations) from the appointed date. The financial statements will then be restated to reflect the merged position. The Company continues to comply with applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013 in relation to the proposed amalgamation.
Note No: 2.44
Previous year figure were regrouped wherever necessary to make them comparable with current year figures.
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