*During the year, the company has issued and allotted bonus equity shares to the eligible shareholders on the book closure date (i.e. 12th August, 2024) in the ratio of 3:1, resulting in an increase in Issued Share Capital by capitalising Reserves of the Company.
Rights, preferences and restrictions attached to shares
1. The Company has only one class of shares referred to as equity shares having a par value of ? 10/-. Each holder of equity shares is entitled to one vote per share.
2. In the event of liquidation of the Company, the holders of the equity shares of the Company will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.
- General Reserve - General reserve is created from time to time by way of transfer from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
- Capital Reserve - Capital reserve includes Special capital incentive and subsidy received from the Government for setting up or expansion of an industrial undertaking in undeveloped area of State, and is credited to Special capital incentive and profit on re-issue of forfeited shares.
- Securities Premium Reserve - Securities premium reserve represents the premium received on issue of equity shares.
- Share Based Payment Reserve - This represents the fair value of the stock options granted by the Company under the GRP Employee Stock Option Plan 2024 (ESOP 2024) accumulated over the vesting period. The reserve will be utilized on exercise of the options.
Please refer Note 39 D for detailed disclosure on Share based payments.
1 Borrowings are measured at amortised Cost
Nature of security and terms of repayment for borrowings:
2 Rupee loan from HDFC Bank Ltd of ? Nil (Net of processing charges) (31-Mar-2024: ? 191.22 lakhs) for Capex.
First exclusive charge by way of hypothecation of plant & machinery which are funded through this loan and by way of extension of equitable mortgage on office at 510, Kohinoor City, Kurla (West), Mumbai.
Loan is repaid on 08-Nov-2024.
3 Rupee loan from HDFC Bank Ltd of ? 210.68 lakhs (Net of processing charges) (31-Mar-2024: ? 404.39 lakhs) for Working Capital.
Second pari passu charge by way of hypothecation of entire current assets, both present and future at par with other banks. Second pari passu charge on entire property, plant and equipment located at Ankleshwar & Panoli plant of the company at par with other banks.
Repayable in 48 equal monthly instalments beginning from 01-Apr-2022 along with interest @ 7.34% p.a. (FY 23-24 : 8.00% p.a.)
4 Rupee loan from HDFC Bank Ltd of ? 703.85 lakhs (Net of processing charges) (31-Mar-2024: ? 1054.56 lakhs) for Capex.
First exclusive charge by way of hypothecation of plant & machinery which are funded through this loan and by way of extension of equitable mortgage on office at 510, Kohinoor City, Kurla (West), Mumbai.
Repayable in 54 equal monthly instalments beginning from 02-Oct-2022 along with interest @ 9.27% p.a. (FY 23-24 : 9.68%)
5 Rupee loan from HDFC Bank Ltd of ? 370.63 lakhs (Net of processing charges) (31-Mar-2024: ? 493.56 lakhs) for Working Capital.
Second pari passu charge by way of hypothecation of entire current assets, both present and future at par with other banks. Second pari passu charge on entire property, plant and equipment located at Ankleshwar & Panoli plant of the company at par with other banks..
Repayable in 48 equal monthly instalments beginning from 01-Apr-2024 along with interest @ 9.00% p.a. (FY 23-24 : 9.00% p.a.)
6 Foreign currency loan from Kotak Mahindra Bank Ltd of ? 911.35 lakhs (Net of processing charges) (31-Mar-2024: ? 695.55 lakhs) for Capex.
First pari passu hypothecation charge to be shared with Citi Bank & HDFC Bank on all existing and future receivables/ current assets/moveable fixed assets at par with other banks. Exclusive charge of Kotak Mahindra Bank Ltd on Movable Fixed Assets funded through Kotak Mahindra Bank Ltd Term Loan. First pari passu charge on land & building located at Ankleshwar & Panoli plant of the company at par with other banks.
Repayable in 60 equal monthly instalments beginning from 25-Mar-2024 along with interest @ 5.19% p.a. (FY 23-24 : 5.12%)
7 Foreign currency loan from Proparco of ? 1933.89 lakhs (Net of processing charges) (31-Mar-2024: Nil) for Capex.
First and exclusive charge created of hypothecation created on plant and machinery located at D-16, Chincholi Industrial Area, Mohol, Solapur and by way of Indenture of mortgage on the commercial office premises located at 601 & 602 Presidential Plaza, Ghatkopar (West), Mumbai and 509B, Kohinoor City, Kurla (West), Mumbai
Repayable in 11 equal half yearly instalments beginning from 15-Dec-2026 along with interest @ 5.96% p.a. (FY 23-24 : Nil)
8 Deferred Payment Liability
a Vehicle loan of ? Nil (31-Mar-2024: ? 4.33 lakhs) is secured by vehicles under hypothecation with Bank. Loan is repaid on 7-Feb-2025.
b Vehicle loan of ? 8.17 lakhs (31-Mar-2024: ? 16.44 lakhs) is secured by vehicles under hypothecation with Bank. Loan is repayable in 39 monthly instalments from Dec-2022 along with interest @ 7.90% p.a.
c Vehicle loan of ? 18.35 lakhs (31-Mar-2024: ? 22.17 lakhs) is secured by vehicles under hypothecation with Bank.
Loan is repayable in 60 monthly instalments from Feb-2024 along with interest @ 9.20% p.a.
d Vehicle loan of ? 87.96 lakhs (31-Mar-2024: ? 94.91) is secured by vehicles under hypothecation with NBFC. Loan
is repayable in 60 monthly instalments from Feb-2024 along with interest @ 10.25% p.a.
1 Working Capital Loan from HDFC Bank Ltd of ? 5,224.93 lakhs (31-Mar-2024: ? 4,382.40 lakhs)
First pari passu charge by way of hypothecation of entire current assets, both present and future at par with other banks. First pari passu charge on entire property, plant and equipment located at Ankleshwar & Panoli plant of the company at par with other banks..
2 Working Capital loan from Citi Bank N. A. of ? 3,006.06 lakhs (31-Mar-2024: ? 1,977.76 lakhs)
First pari passu charge in favour of Citi Bank N.A. by way of hypothecation of entire Fixed assets both movable and immovable, both present & future of the company located at Manufacturing unit at Ankleshwar & Panoli Plant, Gujarat at par with other banks.
3 Working Capital loan from Kotak Bank Ltd of ? 1,183.55 lakhs (31-Mar-2024: ? 1,554.79 lakhs)
First pari passu charge by way of hypothecation of entire current assets, both present and future at par with other banks. First pari passu charge on entire property, plant and equipment located at Ankleshwar & Panoli plant of the company at par with other banks.
4 For explanation on the company's Interest risk and foreign currency risk refer Note 49
5 The company has borrowings from bank and financial institution on the basis of security of current asset and in following instances.
39 EMPLOYEE BENEFITS :
As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given below :
The Company has various schemes for long term benefits such as provident fund, superannuation, gratuity and leave encashment. The Company's defined contribution plans are Employees' Provident fund and Pension Scheme (under the provision of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952) since the company has no further obligation beyond making the contributions.
B Defined Benefit Plans
Disclosure Statement as Per Indian Accounting Standard 19 Para 139 (a) Characteristics of defined benefit plan
The Company has a defined benefit gratuity plan in India (funded). The company's defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.
Para 139 (b) Risks associated with defined benefit plan
Gratuity is a defined benefit plan and company is exposed to the Following Risks:
Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.
Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on Government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.
Para 139 (c) Characteristics of defined benefit plans
During the year, there were no plan amendments, curtailments and settlements.
Para 147 (a)
A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
The sensitivity analysis presented above may not be representative of the actual change in the benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
D SHARE BASED PAYMENT a) Plan Details
The GRP Employee Stock Option Plan 2024 (GRP ESOP 2024) is an equity-settled share-based payment transaction. According to the shareholders resolution on 2nd August, 2024, the Company has reserved the issuance of 40,000 equity shares of ? 10/- each for offering to eligible employees of the Company and its subsidiary under the GRP Employee Stock Option Plan 2024 (GRP ESOP 2024). As on 31st March, 2025, the Company has granted 27,400 equity shares at a price of ? 3,208/- per option to eligible employees. The options will vest over a period of 4 years from the date of grant based on specified criteria.
42 SEGMENT REPORTING:
As per Indian Accounting Standard (Ind AS) -108 on Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Company's performance and allocates resources based on an analysis of various performance indicators of business segment/s in which the company operates, 'Reclaim Rubber' has been identified as reportable segment and smaller business segments not separately reportable have been grouped under the heading 'Others'.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.
a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.
b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.
The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors ('Board') oversee the management of these financial risks. The Risk Management Policy of the Company formulated and approved by the Board, states the Company's approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company's management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company's financial performance.
The following disclosures summarize the Company's exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
1) Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments.
a) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
b) Foreign Currency Risk
The company's business objective includes safe-guarding its earnings against foreign exchange rate fluctuation. The company has adopted a structured risk management policy to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for Fair Value and Cash Flow hedges. Hedging instruments include forward/options instruments to achieve this objective.
(i) Exposure in foreign currency - Hedged
The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.
c) Other Price Risks:
Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price. Other price risk arises from financial assets such as investments in equity instruments. Company has invested in unquoted Equity Instruments and hence its exposure to change in market value is minimal.
2) Credit Risk:
Credit risk refers to a risk that a counterparty will default on its contractual obligation resulting in a financial loss to the Company. Credit risk primarily arises from financial asset such as trade receivables and Derivative financial instruments and other balances with banks, loans and other receivables. The Company exposure to credit risk is disclosed in note 8, 9, 10, 11 and 12. The Company has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Company's exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transaction is reasonably spread amongst the counterparties.
Credit risk arising from investment in derivative financial instrument and other balances with bank is limited and there is no collateral held against these because the counterparties are banks and recognised financial institution with high credit ratings assigned by international credit rating agencies.
The average credit period on sale of products and services is maximum of 60-90 days. Credit risk arising from trade receivables is managed in accordance with Company's established policy, procedures, and controls relating to customer credit risk management. Credit quality of Customer is assessed and accordingly individual credit limit is defined. The concentration of credit risk is limited due to the fact that customer base is large.
3) Liquidity Risk:
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
The table below analysis non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
4) Hedge Accounting:
The company's business objective includes safe-guarding its foreign currency earnings against movements in foreign exchange and interest rates. Company has adopted a structured risk management policy to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for Fair Value and Cash Flow hedges. Hedging instruments consists of forwards to achieve this objective. The table below shows the position of hedging instruments and hedged items as of the balance sheet date.
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.
52 OTHER STATUTORY INFORMATION
(i) The Company does not have any Capital-work-in progress or intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan
(ii) The Company have 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 company (Ultimate Beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(iii) The Company have 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) 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 have not any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.
53 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company uses the accounting software SAP for maintaining books of account. During the year ended 31 March 2025, the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software SAP to log any direct data changes on account of recommendation in the accounting software administration guide which states that enabling the same all the time consume storage space on the disk and can impact database performance significantly. Audit trail (edit log) is enabled at the application level.
54 The Company has now recognised the EPR credits on an accrual basis due to improved stability in the EPR portal, consistent demand, and the emergence of a stable market price, by valuing them at the minimum rate notified by the Central Pollution Control Board, which were earlier recognised on actual sales. Consequent to the accrual, Revenue from Operations and Profit before tax for the year ending 31st March, 2025 and Other Current Assets as of 31st March, 2025 are higher by ? 2,096.76 lakhs.
55 The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.
56 APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the board of directors on 9th May, 2025.
57 EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended dividend of ? 14.50 (145%) per fully paid up equity share of ? 10/- each, aggregating ? 773.33 lakhs (subject to deduction of tax at applicable rates), for the financial year 2024-25, which is based on relevant share capital as on 31st March, 2025. The same is subject to the approval of the shareholders at their ensuing Annual General Meeting.
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