l) Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current
market assessment of time value of money and, where appropriate, the risks specific to the liability. Unwinding of the
discount is recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date
and are adjusted to reflect the current best estimate.
Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as
contingent liabilities.
Contingent assets are not recognized in financial statements since this may result in the recognition of income that may
never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent
asset and is recognized.
m) Revenue Recognition:Revenue from contract with customers
Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an
amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
Variable consideration includes discounts provided to the dealers and customers. Accumulated experience is used to
estimate and provide for the discounts and revenue is only recognized to the extent that it is highly probable that significant
reversal will not occur.
Sales are recognized when substantial control of the products has been transferred to the customer, being when the products
are delivered to the customer without any unfulfilled obligation that could affect the customer's acceptance of the products.
Any amount receivable from the customers are recognized as revenue after the control over the goods are transferred to the
customer which is generally on dispatch of goods as this is the point in time that the consideration is unconditional because
only the passage of time is required before the payment is due.
The Company does not expect to have any contracts where the period between the transfer of goods and payment by
customer exceeds one year. Hence, the Company does not adjust revenue for the time value of money.
Dividend Income
Dividends are recognized in the Statement of Profit and Loss only when the right to receive payment is established, it is
probable that the economic benefits associated with the dividend will flow to the Company and the amount of the dividend
can be measured reliably.
Interest Income
Interest Income is recognized using Effective Interest Method
n) Lease:
The Company has applied Ind AS 116 Leases from the accounting periods beginning from April 1, 2019 using the modified
retrospective approach. Accordingly, the comparative information for the year ended March 31, 2019 has not been restated
and continues to be reported under Ind AS 17 and relevant appendices.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
1. the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically
distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified.
2. the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the
period of use; and
3. the Company has the right to direct the use of the asset. The Company has this right when it has the decision-making
rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision
about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the
asset if either:
a - the Company has the right to operate the asset; or
b - the Company designed the asset in a way that predetermines how and for what purpose it will be used.
This policy is applied to contracts entered into, or modified, on or after April 1, 2019. At inception or on reassessment of a
contract that contains a lease component, the Company allocates the consideration in the contract to each lease component
on the basis of their relative stand-alone prices.
Company as a lessee
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of use asset or the end of the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease
liability is measured at amortized cost using the effective interest method.
Short-term leases and leases of low-value assets
The Company has elected not to recognize right-of use assets and lease liabilities for short-term leases that have a lease
term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
o) Government Grant:
- Government grants are recognized where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with.
- When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over
the periods that the related costs, for which it is intended to compensate, are expensed.
- When the grant relates to property, plant and equipment, the cost of property, plant and equipment is shown at gross
value and grant thereon is recognized as deferred income and are credited to statement of Profit and Loss on a
systematic basis over the useful life of the asset.
p) Employee Benefit Expense:Defined benefit plan:
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of
resignation/superannuation. The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for
gratuity payment to the employees.
The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method
and spread over the period during which the benefit is expected to be derived from employees' services.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
Re-measurement recognized in OCI is reflected immediately in retained earnings and will not be reclassified to Statement
of Profit and Loss.
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.
The defined benefit obligation recognized in the Balance Sheet represents the actual deficit or surplus in the Company's
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
Defined contribution plan:
Payments to defined contribution plans are recognized as an expense when employees have rendered service entitling them
to the contributions.
The eligible employees of the Company are entitled to receive benefits in respect of provident fund, for which both the
employees and the Company make monthly contributions at a specified percentage of the covered employees' salary. The
contributions as specified under the law are made to the Government Provident Fund monthly.
Short-term employee benefits:
A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave in the period
the related service is rendered. Liabilities recognized in respect of short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid in exchange for the related service.
q) Income Taxes:
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except
to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also
recognized in other comprehensive income or equity.
Current Tax:
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
Deferred Tax:
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the
end of the reporting period.
The carrying amount of Deferred Tax Liabilities and assets are reviewed at the end of each reporting period date and are
reduced to the extent that it is no longer probable.
r) Foreign Currency Transactions:
Foreign currency transactions are recorded at exchange rate prevailing on the date of the transaction. Foreign currency
denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on
the Balance sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary
assets and liabilities are recognised in the statement of Profit and Loss, Non- monetary assets and liabilities that are
measured in terms of historical cost of foreign currencies are not translated.
s) Earnings Per Share:
The basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for the year attributable to the
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
t) Financial Instruments:
Financial Assets & Financial Liabilities are recognized when the Company becomes party to contractual provisions of the
relevant instrument.
Initial Recognition and Measurement:
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through
Profit or Loss, transaction costs that are attributable to the acquisition of the financial assets. Transaction costs of financial
assets carried at fair value through Profit or Loss are expensed in Profit or Loss. However, trade receivables that do not
contain a significant financing component are measured at transaction price.
Classification and Subsequent Measurement: Financial Assets
Financial assets carried at Amortized Cost:
A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through Other Comprehensive Income (FVTOCI):
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through Profit and Loss (FVTPL):
A financial asset which is not classified in any of the above categories are measured at FVTPL.
Investment in Equity Instruments designated to be classified as FVTOCI:
The Company carries certain equity instruments which are not held for trading. The Company has elected the FVTOCI
irrevocable option for these instruments. Movements in fair value of these investments are recognized in other comprehensive
income and the gain or loss is not reclassified to statement of profit and loss on disposal of these investments. Dividends from
these investments are recognized in statement of Profit and Loss when the Company's right to receive dividends is established.
Classification and Subsequent Measurement: Financial Liabilities
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing
within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these
instruments.
Impairment of financial assets:
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for evaluating impairment of financial
assets other than those measured at fair value through Profit and Loss (FVTPL).
For trade receivables Company applies 'simplified approach' which requires expected lifetime losses to be recognized from
initial recognition of the receivables. The application of simplified approach does not require the Company to track changes
in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis
of its historical credit loss experience.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in
credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Derecognition of Financial Instruments:
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.
u) Cash and cash equivalent:
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand that are readily convertible into
cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash
commitments.
v) Assets Held for Sale:
Non-current assets or disposal groups comprising of assets and liabilities are classified as 'held for sale' when all of the
following criteria's are met: (i) decision has been made to sell. (ii) the assets are available for immediate sale in its present
condition. (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within
12 months of the Balance Sheet date.
Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of its
carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or amortized.
w) Derivative Financial Instruments:
The Company enters into derivative financial instruments viz. foreign exchange forward contracts to manage its exposure
foreign exchange rate risks. The Company does not hold derivative financial instruments for speculative purposes.
Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in Profit and Loss
immediately.
x) Segment Reporting - Identification of Segments:
An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed by the company's management to make decisions for
which discrete financial information is available.
Based on the management approach as defined in Ind AS 108, the management evaluates the Company's performance
and allocates resources based on an analysis of various performance indicators by business segments and geographic
segments.
X) Cash Dividend:
The Company recognizes a liability to make cash distributions to equity holders when the distribution is authorized and
approved by the shareholders. A corresponding amount is recognized directly in equity.
Note 1(B): Use of Estimates and Judgments
The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
recognized in the financial statements are included in the following notes:
a) Useful Lives of Property, Plant & Equipment:
The Company uses its technical expertise along with historical and industry trends for determining the economic life of an
asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case
of a revision, the unamortized depreciable amount is charged over the remaining useful life of the assets.
b) Defined Benefit Plans and Compensated Absences:
The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based
on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, attrition rate, future
salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.
c) Expected Credit Losses on Financial Assets:
The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of
collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation,
based on the Company's past history, customer's creditworthiness, existing market conditions as well as forward looking
estimates at the end of each reporting period.
d) Fair Value measurement of financial instruments:
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash
Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of Judgments is required in establishing fair values. Judgments include considerations of inputs such as liquidity
risk, credit risk and volatility
e) Contingent Liability:
The Company has received various orders and notices from tax authorities in respect of direct taxes and indirect taxes and
various other laws. The outcome of these matters may have a material effect on the financial position, results of operations or
cash flows. Management regularly analyses current information about these matters and discloses the information of related
contingent liability. in making the decision regarding the need of creating loss provision, management considers the degree
of probability of an unfavorable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The
filing of a suit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions, does not
automatically indicate that a provision of a loss may be appropriate.
Note 1(C): Standard Issued:
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, Ind AS 1, Presentation
of Financial Statements and Ind AS 7, Statement of Cashflows applicable w.e.f. 1st April, 2025. The Company has reviewed the
amendments and based on its evaluation has determined that it does not have any significant impact in its financial statements.
In accordance with the recommendations of National Financial Reporting Authority (NFRA), Ind AS 118 - Presentation and
Disclosure in Financial Statements will be applicable from 1st April, 2027. The Company will evaluate the impact of the new
standards for implementation in due course.
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.
There were no buy back of shares / issue of shares for consideration other than cash during the period of 5 years immediately
preceding the reporting date.
Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date:
b. General Reserve:
The Company has transferred a portion of the net profit of the Company before declaring the dividend to General Reserve
pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under
the Act.
c. Equity instruments through other comprehensive income:
This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value
through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when
such assets are disposed off.
Note 39: Employee Benefits (Ind AS 19):a. Defined Benefit Plans:Gratuity:
In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump
sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years
of employment with the Company. The gratuity fund is managed by certain third-party fund managers. The Company's
obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using
the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive
income, net of taxes.
Inherent Risk:
The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan.
In particular, this exposes the Company to actuarial risk such as Salary Risk, Interest Rate Risk, Investment Risk, changes in
demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since
the benefits are lump sum in nature, the plan is not subject to any longevity risk.
*These Sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming
there are no other changes in market conditions at the accounting date. There have been no changes from the previous
periods in the methods and assumptions used in preparing the sensitivity analysis.
Basis of Estimation of Assumption:
The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments
of the fund during the estimated term of the obligations.
The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the
obligations.
The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant
factors.
Attrition rate considered is the management's estimate, based on previous years' employee turnover of the Company.
Asset and Liability matching strategy :
The money contributed by the Company to the Gratuity Fund to finance the liability of the plan has to be invested. The
Company has invested the plan assets in the insurer managed funds. The expected rate of return on plan assets is based
on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the
obligation.
There is no compulsion on the part of the Company to fully refund the liability of the Plan. The Company's philosophy is to
fund these benefits based on its own liquidity.
b. Defined Contribution Plans:
Amount recognized as an expense and included in Note 33 under the head “Contribution to Provident and other Funds” of
Statement of Profit & Loss 315.94 Lakhs (31st March, 2025 299.26 Lakhs)
c. Superannuation / NPS Benefits:
Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain
employees.
Contribution to Superannuation / NPS Fund charged to Statement of Profit & Loss in Notes 33 under the head “Contribution
to Provident and other Funds” is '.13.46 Lakhs (31st March, 2025 '. 12.98 Lakhs)
Note 40: Segment Reporting (Ind AS 108)
The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, “Operating Segments”
specified under Section133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable
to the Company.
Note: As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining
to key management personnel is not ascertainable and therefore not included above.
Terms and Conditions of transactions with Related Parties:
The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to
those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash.
Note 42: Revenue Recognition (Ind AS 115)
The Company is primarily in the Business of manufacture and sale of Masterbatches. All sales are made at a point in time
and revenue from contract with customer are recognized when goods are dispatched and the control over the goods sold are
transferred to customers. The Company does not expect to have any contracts where the period between the transfer of goods
and payment by customer exceeds one year. Hence, the Company does not adjust revenue for the time value of money.
In compliance with Ind AS 115, certain discounts are treated as variable components of consideration and have been recognized
as deductions from revenue instead of other expenses.
Dividend from Kabra Extrusiontechnik Limited (Refer Note 30): (FY 2025-26 20.68 Lakhs) (FY 2024-25: ' . 28.96 Lakhs)
Note 48: Fair Value Measurement (Ind AS 113)
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation
techniques used to measure fair value of financial instruments are:
Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. Kabra Extrusiontechnik
Limited is listed on stock exchange and the investment by the Company is being valued using the closing exchange price at the
reporting date.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximize the use of observable market data and rely as little as possible on Company specific estimates. The Venture
Capital Fund (Urban Infrastructure Fund), Gold PTC (Liquid Gold Series -2 Nov 2020 & Liquid Gold Series 4) and Mutual Fund
in SBI Liquid Fund are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are
observable, the instrument is included in Level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
There are no instruments which are to be considered in Level 3.
The management assessed that cash and bank balances, trade receivables, loans, trade payables, cash credits, commercial
papers and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments.
The following methods and assumptions were used to estimate the fair values:
(a) The fair values of the quoted investments are based on market price at the reporting date.
(b) The fair values of the unquoted investments are based on net asset value at the reporting date
(c) The fair values of remaining financial instruments is determined using discounted cash flow analysis or based on the
contractual terms.
The discount rates used is based on management estimates.
Note 49: Financial Instruments Risk Management Objectives and Policies (Ind AS 107)
The Company's principal financial liabilities comprise borrowings and other payables. The main purpose of these financial liabilities
is to finance and support the Company's operations. The Company's principal financial assets include Investments, Loans and
Other receivables, Cash and Cash Equivalents, Other Bank Balances.
The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company's senior management oversees the
management of these risks. The Company's senior management ensures that the Company's financial risk activities are governed
by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives.
Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
a. Market Risk
b. Currency Risk
c. Credit Risk
d. Liquidity Risk
a. Market Risk
Market risk arises from the Company's use of interest bearing financial instruments. It is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or other market
factors. Financial instruments affected by market risk include borrowings.
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 market interest rates. The management is responsible for the monitoring of the Company's interest rate position. Different
variables are considered by the management in structuring the Company's borrowings to achieve a reasonable, competitive,
cost of funding.
Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding
for the entire reporting period. Further, the calculations for the unhedged floating rate borrowing have been done on the notional
value of the foreign currency (excluding the revaluation).
b. Foreign Currency Risk
Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which
fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.
c. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities, investing and financing activities
including security deposits, deposits with banks, investment in equity shares, venture capital fund investments, foreign
exchange transactions etc.
Trade receivables:
Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each
customer and based on the evaluation credit limit of each customer is defined. Wherever the Company assesses the credit
risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.
Net Trade receivable as on 31st March, 2026 '. 12,965.54 Lakhs (31st March, 2025 is '. 11,128.92 Lakhs)
As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision
matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding
is for longer period and involves higher risk.
Other Financial Instrument and Cash Deposits
With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash,
security deposits with respect to lease agreements, etc. the Company's exposure to credit risk arises from default of the
counterparty, with a maximum exposure equal to the carrying amount of these assets.
Credit risk from balances with banks is managed with the Company's policy. The Company limits its exposure to credit risk
by only placing balances with local banks. Given the profile of its bankers, management does not expect any counterparty
to fail in meeting its obligations. With respect to other financial instruments, the Company assess the risk of recoverability on
periodic basis and makes required provision whenever necessary.
d. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company
monitors its risk by considering the maturity of its financial assets (e.g. trade receivables, other financial assets) and projected
cash flows from operations.
The cash flows, funding requirements and liquidity of the Company is monitored under the control of the management.
The objective is to optimize the efficiency and effectiveness of the management of the Company's capital resources. The
Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously monitoring
forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Note 51: Capital Management (Ind AS 1)
For the purpose of Company's capital management, capital includes issued capital and other equity reserves attributable to the
equity shareholders of the Company. The primary objective of the Company's Capital Management is to maximize shareholders
value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement
of financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity.
Note 52: Leases (Ind AS 116)
a. Company as Lessee
The Company has taken office buildings & warehouses on lease for a tenure of 3 to 5 years. The Company's obligations
under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning
and subleasing the leased assets. There are no variable lease payments and residual value guarantees for these leases.
The leases are renewable on mutually agreeable terms
The Company applied Ind AS 116 for the lease property and the impact is given in financial is as follows: -
The Company applied the following method for Ind AS 116.
1. Applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease
term.
2. While determining the lease term option to extend or terminate the lease has been considered.
b. Company as lessor
Operating leases: -
The Company has provided facilities and office premises on lease. These lease arrangements range for a period between
1 to 3 years. Some of these leases are renewable for further period on mutually agreeable terms and also include escalation
clauses.
Note 53: Corporate Social Responsibility:
Expenditure incurred in cash on Corporate Social Responsibility activities in the Statement of Profit and Loss is '. 77.76 Lakhs
(31st March, 2025 '.96.21 Lakhs)
The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31 March, 2026 is '. 84.68
Lakhs (31st March, 2025 '. 87.46 Lakhs)
Note 54: Information as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006
The Company has sought inviting information from its vendors for their status under “The Small, Medium and Micro Enterprises
Development Act 2006”, The Company has received the MSME Certificates from Vendors. Accordingly, the Company has
identified the vendors & trade payable treated as MSME trade payable separately.
Note 55: Research & Development:
Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss
is '. 424.90 Lakhs and Capital Expenditure in Fixed Assets is '. Nil Lakhs. (31st March, 2025, in Statement of Profit & Loss: -
'. 388.67 Lakhs and Capital Expenditure: - 13.99 Lakhs).
Note 56: Government Grants (Ind AS 20):
During FY 2018-19 the Company has received '. 64 lakhs as grant against capital investments under Scheme for Assistance to
Industrial Units Purchasing Plant and Machinery during the exhibition - “PlastIndia 2015”. Grant is recognized in statement of
profit and loss on systematic basis over period in which the Company recognizes depreciation of related assets. Other income
includes grant under this scheme of '. 4.26 lakhs.
Note 58: Other Statutory Information
a) The Company has not been declared as a willful defaulter by any lender who has powers to declare a Company as a
willful defaulter at any time during the financial year or after the end of reporting period but before the date when financial
statements are approved.
b) The Company has no transactions with struck off companies.
c) There is no modification of charge in the FY 2025-26. The Company does not have any charge which is yet to be registered
with Registrar of Companies beyond the statutory period.
d) During the year ended 31st March, 2026, the Company was not party to any approved scheme which needs approval from
competent authority in terms of sections 230 to 237 of the Companies Act, 2013.
e) The Company has not traded or invested in Crypto Currency or virtual currency during the financial year.
f) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax
Act, 1961.
g) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.
h) The Company has complied with the number of Layers prescribed under clause (87) of Sec 2 of the Act read with The
Companies (Restriction on number of layers) Rules, 2017.
i) 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.
j) 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) 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.
k) The Company does not hold any Benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding
has been initiated or is pending against the Company for holding any Benami property.
Note 59 : Compliance with section 143(3) for maintenance of Books of Accounts :-
a. With effect from August 5, 2022, the Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules,
2014, relating to maintenance of electronic books of accounts and other relevant books and papers. Pursuant to this
amendment, the Company is required to maintain the books of account which are assessable in India at all times and their
back-up is to be kept on servers located in India on a daily basis.
b. The Company has a process to take daily back-up of books of accounts maintained in electronic mode and along with the
logs of the back-up of such books of accounts.
Note 60 :
Previous Year Figures have been regrouped / reclassified whenever necessary to correspond with current year classification /
disclosure.
|