a) During the year there has been no increase or decrease in equity shares.

b) Terms and Rights attached to Equity shares

1) The Company has only one class of equity shares having par value of E 10 per share. Each holder of equity shares is entitled to one vote per share.

2) 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, except in the case of interim dividend.

3) 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. The distribution will be in proportion to the number of equity shares held by the shareholders.

a) Securities Premium

Securities premium account represents the surplus of proceeds received over the face value of shares, at the time of issue of shares. This is not available for distribution of dividend and it can only be utilised in accordance with the provisions of the Act.

b) Retained Earnings

Retained earnings represents the amount of accumulated earnings of the Company, less any transfers to general reserve and payment of dividend.

Particulars of security offered:

i) Secured against hypothecation of existing and future receivables/current assets/moveable assets/moveable fixed assets and first equitable mortgage charge on leasehold land of the Company and the immoveable property owned by the Associate of the Company.

ii) Personal Guarantees of two of the executive directors, managing director and Corporate Guarantee by the Associate of the Company.

iii) Term loan is repayable in 36 equated monthly instalments commencing from May 2023 to April 2026. Rate of interest on term loan is 10.25%.

40.2 The Company's pending litigations comprise of claims against the Company by the parties and proceedings pending with the Revenue authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for, where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have any materially adverse effect on its financial results. For details on contingent liabilities refer Note 40.1 above.

40.3 The Company has an exposure of E 190.33 (March 31, 2023: E 245.11) in the form of investment, advances and other receivable from its wholly owned subsidiary which is substantially more than its net worth. However, taking into account the business plan of the subsidiary, the Company has not considered necessary to provide for any losses.

II. Defined Benefit Plan

The Company has defined benefit plan for payment of gratuity to all qualifying employees. It is governed by the Payment of Gratuity Act, 1972. Under this Act, an employee who has completed five years of service is entitled to the specified benefits which depends on the employee's length of service and salary at retirement age. The Company's defined benefit plan is Non-Funded.

There are no other post retirement benefits provided by the Company.

The present value of the defined benefit obligation, the related current service cost and past service cost, were measured using the projected unit credit method.

In presenting the above sensitivity analysis, the present value of the defined benefit obligaiton has been calculated using "Projected Unit Credit" method as at the date of the Balance Sheet which is the same as that applied in calculating the defined benefit obligation liability recognized in Balance Sheet.

There were no changes in the methods and assumptions used in preparing the sensitivity analysis from prior years.

G) Risk Exposure

These plans typically expose the Company to a number of risks, the most significant of which are detailed below:

Interest Risk:

A decrease in the bond interest rate will increase the plan liability.

Longevity Risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, any increase in the salary of the plan participants will increase the plan's liability.

H) Leave Encashment

Based on actuarial valuation carried out using projected unit credit method, the Independent Actuary has determined the liability towards leave encashment at E 40.46 as at the end of the year as compared to E 36.53 as at the beginning of the year. The resultant additinal liability of E 3.93 (Previous year E 12.58) has been debited to Employees benefit (Refer Note 37).

(i) The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends. Remuneration do not include provisions for encashable leave, gratuity and premium paid for group health insurance since these are based on valuation on an overall Company basis.

(ii) Corporate Guarantee by Amisco Agrochem Limited and Personal Guarantee by Pradip P Dave, Ashit P Dave and Samir P Dave with respect to Borrowings by the Company amounting to E 2500.00 Lakh (Previous year a 3,800.00 La kh).

NOTE 45: EARNINGS PER SHARE (EPS)

Basic Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to equity share holders of the Company by the weighted average number of Equity shares outstanding during the year after adjusting for the effect of dilutive potential equity shares.

NOTE 46: FINANCIAL INSTRUMENTS:

A) Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 23 and 26) and total equity of the Company.

The Company's management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of capital and the risks associated with each class of capital.

The fair value for financial instruments which are measured at amortised cost (e.g. trade receivables, cash and cash equivalents, trade payables etc.) has fair value which is reasonably approximate carrying value. Fair values for those financial assets and finacial liabilities have not been disclosed in the above table.

There are no financial instruments which are measured using level 1 quoted price in active markets and level 3 valuation technique.

Measurement of fair values

Valuation techniques and significant observable inputs.

The following tables show the valuation techniques used in measuring level 2 fair values, as well as the significant observable inputs used (if any).

NOTE 47: FINANCIAL RISK MANAGEMENT OBJECTIVES (IND AS 107)

The Company's Board of Directors has 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. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

The key risks and mitigating actions are also placed before the Audit Committee of the Company.

The Company has exposure to the following risks arising from financial instruments:

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk.

A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises primarily form financial assets such as trade receivables, balances with banks, loans and other receivables.

Trade and other receivables

Customer credit is managed as per the Company's established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and in respect of local customers, the same is generally upto 90 days credit term. In respect of export customers, where the sales are on credit terms, the same is upto 180 days. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The Company has taken dealer deposits from most of it's dealers, which is considered as collateral and the same is considered in determination of expected credit loss, where applicable. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The Company measures the expected credit loss ('ECL') of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. The Company has applied ECL model for recognising the allowance for doubtful debts. The Company has used a practical expedient by computing ECL for trade receivables based on a simplified approach. The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

Liquidity risk is managed by the Company through effective fund management. The Company's principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents and cash flow that is generated from operations are sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

The following are the remaining contractual maturities of financial liabilities at the Balance-sheet date. Amounts disclosed are the contractual un-discounted cash flows.

C) Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises of the following three types of risk: currency risk, interest rate risk and price risk.

i) Currency Risk

The Company has exposure arising out of export sales to countries outside India, imports from outside India and few other expenditure incurred outside India. The Company is therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian currency.

The Company evaluates exchange rate exposure arising from foreign currency transactions and puts in place a Financial Risk Management Policy to identify the most effective and efficient ways of managing the currency risks. Foreign currency exchange rate exposure is also partly balanced by purchasing of goods in the respective currencies.

D) 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 prevailing market interest rates. The Company's exposure to the risk due to changes in interest rates relates primarily to the Company's short-term and long-term borrowings with floating interest rates. The Company constantly monitors the credit markets and revisits its financing strategies to achieve an optimal maturity profile and financing cost.

The Company's investments in term deposits with banks and interest bearing loan to employees are at fixed interest rates and therefore do not expose the Company to significant interest rates risk.

v) Revenue recognised from Contract liability (Advances from Customers)

The Contract liability outstanding at the beginning of the year has been recognised as revenue during the year ended March 31, 2024.

vi) Trade receivables are non-interest bearing. Where sales is on credit, the same is generally for a period upto 90 days and 180 days for local sales and export sales respectively. As at March 31, 2024 E 13.78 Lakh (March 31, 2023: E 22.45 Lakh) was recognised as provision for expected credit losses qua the trade receivables. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are monitored regularly.

Disclosure of payable to vendors as defined under the MSMED Act is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received till the Balance sheet date.

The Company generally pays its vendors within the credit period, which is generally of 45 days. In case of delays beyond this period, no interest is provided since the vendors have not claimed any such interest. However, if any such claim is made, the same would be accounted in the year of payment. According to the Company, the amount of such claim will not be material. The statutory auditors have relied on the Company's representation.

ii) Property Plant and Equipment:

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 3 to the financial statements, are held in the name of the Company. 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 year.

iii) Details of benami property held:

No proceedings has 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.

iv) Borrowing secured against current assets:

The Company has borrowings from a bank on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with bank are in agreement with the books of accounts.

v) Wilful defaulter:

The Company has not been declared wilful defaulter by any bank or financial institution or any lender during the current or previous year.

vi) Relationship with struck off companies:

The Company has no transactions with the companies struck off under the Companies Act, 2013 or the Companies Act, 1956.

vii) Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period except in a following case of satisfaction of charge:

viii) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

ix) Compliance with approved Scheme of Arrangement:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

x) Utilisation of borrowed funds and share premium:

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 Company (Ultimate beneficiaries); or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

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.

xi) Undisclosed Income:

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.

xii) 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.

Explanation where change in the ratios is more than

25% between two years:

i) Debt-Equity Ratio (times): Higher ratio is on account of additional borrowings from a bank as compared to previous year.

ii) Debt Service Coverage Ratio (times): Lower ratio is on account of higher interest cost incurred on borrowings during the year as compared to previous year.

iii) Return on Equity Ratio: Lower Return on Equity is on account of loss for the year.

iv) Net capital turnover ratio (times): Higher ratio on account of increase in borrowings and trade payables.

v) Net profit ratio: Reduction is on account of loss for the year.

vi) Return on Capital employed: Reduction is on account of loss for the year and additional borrowings from a bank.

vii) Return on investment: Reduction is on account of lower investments as compared to previous year.

NOTE 54: GOVERNMENT GRANT

Other operating revenue includes State Government subsidy against payment of State Goods and service tax under Package Scheme of Incentives - 2019.

NOTE 55: EVENT OCCURRING AFTER BALANCE SHEET DATE

Considering the Financial Results of the Company for FY 2023-24, the Company is unable to propose any dividend for the year (Previous year E 1.00 per equity share).

NOTE 56:

The figures of the previous year have been regrouped wherever necessary.