1 Corporate Information
Bhatia Colour Chem Limited (the company) is a public limited company, incorporated on 10-12-2021 under the provisions of the Companies Act,
2013 having CIN: L24290GJ2021PLC127878 and having its registered office at Plot No. A/2/12, Road No. 1, Udhna Udyog Nagar, Udhna, Surat -
394 210. The company is engaged in the business of trading and manufacturing of textile dyes, chemicals, auxiliaries and trading of plastic
granules and stamping foils.
The standalone financial statements for the year ended on March 31, 2025 were authorised for issue in accordance with a resolution of the
directors on 30-05-2025.
2 Basis of Accounting
The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India ('Indian
GAAP') to comply in all material respects with the notified Accounting Standards ('AS') under section 133 of the Companies Act, 2013 ('the Act'),
read with rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016 and the circulars
and guidelines issued by the RBI from time to time to the extent they have an impact on the financial statements and current practices
prevailing in India. The financial statements have been prepared on an accrual basis and under the historical cost convention method. The
financial statements are presented in Indian Rupees (INR) and all values are recorded to the nearest ruppes (INR), except otherwise indicated.
3 Use of Estimates
The preparation of the financial statement in comfimity with Indian GAAP requires the management to make judgments, estimates and
assumptions that effect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end
of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertaintity
about these assumptions and estimates could result in the outcomes requiring a material adjustments to the carrying amounts of assets or
liabilities in future periods.
4 Inventories
Inventories of raw materials and other consumables are valued at cost whereas, inventories of finished goods are valued at lower of cost or
market value. Inventories are taken, valued and certified by the management.
5 The Cash Flow Statement has been prepared under the 'Indirect Method' as set out in Accounting Standard-3 viz. 'Cash Flow Statements'.
6 Contingencies and Events Occuring after the Balance Sheet Date
The Company had issued 44,00,000 share warrants on preferential basis to various persons on 03-01-2025 at a price of ? 134 per warrant out of
which ? 33.50 for each warrant stands received by the company upto the balance sheet date i.e. 31-03-2025. As per the terms of the issue, the
holders of these warrants have a right to apply for allotment of equity shares upon payment of the balance consideration of ? 100.50 per
warrant.
Subsequent to the balance sheet date but before the date of authorisation of the financial statements on as on 30-05-2025 by the Board of
Directors, out of the 44,00,000 share warrants, 18,63,465 warrant holders have made full payment of ? 134 for each warrant and have
exercised their option for conversion of warrants into equity shares and in pursuance thereof, the company has allotted 18,63,465 equity shares
(i.e. 15,07,199 equity shares on 12-05-2025 and 3,56,266 equity shares on 26-05-2025) of ? 10 each at a premium of ? 124 per share.
Accordingly, post such allotment, the paid-up equity share capital of the company as on 30-05-2025 has increased by ? 186.35 lacs i.e. from ?
1223.38 lacs to f 1409.72 lacs.
This event having occurred after the balance sheet date does not require adjustment in the financial statements for year ended on 31-03-2025,
however, this significant non-adjusting event has been disclosed for the purpose of clarity and completeness of the financial reporting.
7 Prior period Items and Changes in Accounting Policies
Previous years adjustments are on account of payment of taxes, duties, interest etc., of earlier years due to short / excess provision thereof etc.
which has been shown under the head 'Extraordinary Items'. There are no changes in the accounting policies consistentaly followed by the
company.
8 Exceptional Items
During the year under consideration, the company has incurred an expenses of ? 5.63 lacs in respect of increase in authorised share capital,
which has been shown under the head 'Exceptional Items' in the P&L account.
9 Recognition of Income and Expenditure
All incomes and expenditure are accounted on accrual basis. Sales, Purchases and all expenses are accounted for exclusive of tax, duties, gst,
cess, etc. collected on behalf of the government and are net of goods returned, discount, rate difference, transport & freight, claim, etc. and are
inclusive of other direct expenses on purchases.
10 Property, Plant and Equipments
Property, Plant and Equipments are stated at cost of acquisition less depreciation. Depreciation on Property, Plant and Euuipments is calculated
on Written Down Value Method. The depreciation for the respective assets has been computed on the basis of their useful life as specified in
Schedule II to the Companies Act, 2013, in accordance with the information and explantions as provided to us by the management of the
company.
11 Government Grants
During the period under consideration the company has not received any government grants.
12 Employee Benefits
Contribution to employee's benefit funds remitted to statutory authority is charged to revenue. Liability in respect of Gratuity of employees of
the company is provided for as per actuarial valuation as at the current year ended. Actuarial gains and losses are recognised in full in the
statement of profit and loss, in the period/year in which they occur.
13 Borrowing Cost
The total borrowing cost on the acquisition of fixed assets if pertaining to the period up to the date on which the said fixed assets have been put-
to-use, has been capitalized in the respective fixed assets and the cost for the period after the said fixed assets have been put-to-use, has been
debited to the Profit and Loss Account.
14 Segment Reporting
The company has only one business segment and geographical segment. Therefore there is no separate reportable segment as per AS-17.
15 Dues to small scale and ancillary undertakings
? 15.71 Crores (Previous Year : ? 13.03 Crores) due to micro, small and medium enterprises registered under the Micro, Small and Medium
Enterprise Development Act, 2006 (MSMED Act); and
The above information has been determined to the extent such parties have been identified on the basis of the information available with the
company regarding the status of suppliers under the MSMED.
17 Taxation
Tax comprises of Current tax and Deferred tax. Current tax in the books is recognised by opting the provisions of section 115BAA as introduced
vide Taxation Laws (Amendment) Ordinance of 2019 to the Income Tax Act, 1961. As per AS-22 "Accounting for Taxes and Income" issued by
ICAI, company has works out deferred tax assets in the current year of ? 6.21 lacs (Previous Year : Deferred Tax Assets of T 3.18 lacs) on
account of timing difference attributable to the claim of depreciation which has not been recognised in the books of accounts of the current year.
18 Intangible Assets
Intangible assets are measured on initial recognition at cost. Cost comprises the purchase price and any attributable cost of bringing the asset to
its working condition for its intended use. The company has provided depreciation on the intangible assets at the rates provided under the the
Companies Act, 2013.
19 Impairment of Assets
The carrying amounts of the company's assets are reviewed at each balance sheet date. If any indication of impairment exists, an impairment
loss is recognized to the extent of the excess of the carrying amount over the estimated recoverable amount.
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