k. Provision,ContingentLiabilities&Contingent Assets
Provisions are recognized when the Company has a present obligation (legal or constructive),as a result of past events,for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimatecan be made for the amountof the obligation.
If the effect of the time value of money is material, provisions are measured on a discounted basis to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation.When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is probable that an outflow of resources will not be required to settle the obligation.However,if the possibility of outflow of
resources,arising out of present obligation, is remote,it is not even disclosed as contingent liability.The company does not recognize a contingent liability but disclosesits existence in the financial assets.
Contingent assets are neither recognized nor disclosed in thefinancial statements.
l. RevenueRecognition
TheCompany manufactures and sells arangeofchemicals and otherproducts.
Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the buyer, there is no continuing managerial involvement with the goods and the amount of revenue can be measured reliably, which coincides with the date of dispatch/bill of lading. The Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence,it does not adjust any ofthetransaction pricesfor the time value of money.
Revenue is measured at fair value of the consideration received or receivable includes freight,wherever applicableand is net oftradediscounts,volumerebatesand GST.
Export incentives under various schemes are accounted in the year ofexport.
Revenue from technical services recognized on the basis of milestones for rendering services as per the agreement.
Interest income is recognized on time apportionment basis. Effective interest rate (EIR) method is used to compute the interest income on longterm loans and advances.Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can bemeasured reliably.
Dividend income on investments is recognised when the rightto receive dividend is established.
m. Employee Benefits
i. Defined ContributionPlans
Contributions to defined contribution schemes such asemployees'state insurance,labour welfare fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Eligible employees receive benefits from a provident fund, which is a defined contribution plan to the Trust/Government administered Trust. Both the employee and the company make contribution to the Amines Plasticizers Limited Employees'provident FundTrust/Government administeredTrust equal to the specified percentage of the covered employee's salary.Company also contributes to a Government administered pension fund on behalfof its employees.
ii. Defined ContributionPlans
The Company also provides for retirement benefits in the form of gratuity and compensated absences to the employees Company.
For defined benefit plans, the amount recognised as 'Employee benefit expenses' in the Statement of Profit and Loss is the cost of accruing employee benefits promised to employees over the year and the costs of individual events such as past / future service benefit changes and settlements (such events are recognised immediately in the Statement of Profit and Loss).Any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised immediately in 'Other comprehensive income'and subsequently not reclassified to the Statement of Profit and Loss.
The defined benefit plan surplus or deficit on the Balance Sheet comprises the total for each plan of the fair value of plan assets less the present value of the defined benefit liabilities (using a discount rate by reference to market yields on government bonds at the end ofthe reporting period)
All defined benefit plans obligations are determined based on valuations,as at the Balance Sheet date, made by independent actuary using the projected unit credit method. The classification of the Company's net obligation into currentand non-current is as per the actuarial valuation report.
Liability for balance leave encashment / entitlement is provided on the basis of actuarial valuation at the year end.
n. Taxation
Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except to theextent it relates to a business combination or to an item which is recognized directlyin equity or in other comprehensive income.
CurrentTax
Current tax is tax expected tax payable on the taxable income for the year,using the tax rate enacted at the reporting date,and any adjustment to the tax payable in respect ofthe earlier periods.Taxable profit differs from the net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amountsand there is an intention to settle the asset and theliability on a net basis.
DeferredTax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.
A deferred tax liability is recognised based on the expected manner of realisation or settlement ofthe carrying amount of assets and liabilities, using tax rates enacted,or substantively enacted,by the end of the reporting period.Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.
MAT credit entitlement is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within thestipulated statutoryperiod.
o. Earnings PerShare
Basic Basic earnings per share is computed by dividing the net profit for the year attributable to equity shareholders of the Company by the weighted-average number of equity shares outstanding during theyear.The weighted-average number of equity shares outstanding during the year and for all years presented is adjusted for events such as bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares) that have changed the numberofequitysharesoutstanding,withoutacorrespondingchangein resources.
For the purpose of calculating diluted earnings per share,the net profit or loss for the year attributable to equity shareholders and the weighted-average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
p. Foreign CurrencyTransactionsandTranslation
The financial statements are presented in Indian Rupees (INR), which is the functional currency of the Company and thepresentation currency for the financial statements.
Transactions in foreign currencies are recognized at the prevailing exchange rates on the transaction dates. Realized gains and losses on settlement of foreign currency transactions are recognized in the Statement of Profit and Loss.
Foreign currency monetary items (assets and liabilities) at the year- end are translated at the year-end exchange rates and the resultant exchange differences are recognized in the Statement of Profit and Loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction.Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e.,translation differences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and Loss,respectively).
q. Recent pronouncements
There is no such notification applicable from April 1,2024.
The Company's business activities are exposed to a variety of financial risks, namely Liquidity Risk, Currency Exchange Risk, Interest Rate Risk, Credit Risk and Commodity Price Risk.The Company's management and the Board of Directors has the overall responsibility for establishing and governing the Company's risk management framework.The risk management framework works at various levels in the enterprise. The organization structure of the Company helps in identifying, preventing and mitigating risks by the concerned operational Heads under the supervision of the Chairman & Managing Director.The risk management framework is reviewed periodically by the Board and the Audit Committee keeping a check on overall effectivenessoftheriskmanagementoftheCompany.
CreditRisk
Credit Risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Financial instruments that are subject to credit risk principally consist of trade receivables,investments, loans,cash and cash equivalents,other balances with banks and other financial assets.None of the financial instruments of the Company result in materialcreditrisk.
Credit risk with respect to trade receivables are limited,due to the Company has a policy of dealing only with credit worthy counter parties,where appropriate as a means of mitigating the risk of financial loss from defaults.All trade receivables are reviewed and assessed for default on a quarterly basis.Our historical experience of collecting receivables is that credit risk is low.Hence,trade receivablesare considered to be a single class offinancialassets.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend,industry practices and the business environment inwhich the entity operates.Loss rates are based on actual credit loss experience and past trends.based on the historical data,loss on collection of receivables is not material hence no additional provision considered.
The fair value of financial instruments as below have been classified into three categories depending on the inputs used in the valuation technique.The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows
Level 1: Quoted prices (unadjusted) in active markets for identical assets orliabilities;
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,either directly or indirectly.
Level 3: Inputs which are not based on observablemarketdata
* Excludes financial assets measured at Cost Valuation
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptionsused to estimate the fair values are consistent.
Financial assets and liabilities measured at fair value as at Balance Sheet date :
The fair value of investment in quoted Equity Shares is measured at quoted price.
The fair value of the remaining financial instruments is determined using discounted cash flow analysis.
43 EventsaftertheReportingPeriod
The Board of Directors have recommended dividend of ' 0.50 per fully paid up equity share of ' 2/- each, aggregating 275.10 Lacs for the financial year 2023-24, subject to approval of shareholders at the Annual General Meeting.
44 Investment in RadianceMH Sunrise Six Pvt Ltd (SPV)
The Management in its constant endeavour to reduce power cost and to explore sources of alternate energy had identified one proposal of investing in Solar power producing companies. Accordingly, The Company had invested in RMHSSPL, one such company which is engaged in the production of alternate energy and supplying the same to MSDCL which in turn supply the power to Investing company at an agreed concessional rates.This arrangement is facilitated by the State Govt and one of the terms of Venture is that the Recipient of power must invest min 26% equity in the power producing company( SPV) to avail this benefit of power at reduced rate.The Company has therefore acquired 26% equity stake in Radiance MH Sunrise Six Pvt Ltd (SPV) pursuant to a Statutory State Government mandate for forming / investing in such a Special Purpose Vehicle.The Company neither has significant influence over this company nor any participative rights in the Management of the said Company. In aedition profit/ loss of the said SPV is insignificant and does not in anyway impact the financials of the Company. In view thereof, Radiance MH Sunrise Six Pvt Ltd had not been considered as an associate company for consolidation purpose as it is a pure investment activity in the said Company to obtain Power at a concessional rate.
45 OtherStatutoryInformation:
(i) The company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The company does not have any transactions with companies struck off.
(iii) The company does not have any changes or satisfaction which is yet to be registred with ROC beyond the statutory period.
(iv) The company have not traded or invested in Crypto currency or Virtual currency during the financial year.
(v) The Company has not been declared wilful defaulter by any bank of financial institution or government or any government authorty.
46 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and postemployment benefits has been notified in the Official Gazette of India on September 29, 2020. However, it has not yet become effective and related rules are yet to be notified. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which,theCode becomes effective and the related rules to determine the financial impact are published.
47 The Financial Statements were approved for issue by the Board of Directors on 28th May 2024.
48 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software, except that audit trail feature is not enabled at the database level for the Tally Prime database.Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.Presently,the log has been activated atthe application level.
49 Figures of previous year have been regrouped/rearranged, wherever considered necessary to conform to the currentyear's presentation.
In terms of our report of even date attached For and on behalf of the Board of Directors
For S A R A & Associates
Chartered Accountants
Firm Registration N°-: 120927W Hemant Kumar Ruia Yashvardhan Ruia
Chairman & Managing Director Executive Director
Manoj Agarwal din :00029410 DIN :00364888
Partner
Membership No- 119509
Date : 28th May, 2024 Pramod Sharma
Place : Mumbai Chief Financial Officer
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