n) Provisions and Contingent Liabilities
Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that the
Company will be required to settle the obligation,
and a reliable estimate can be made of the amount
of the obligation.
The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks and
uncertainties surrounding the obligation. In the
event the time value of money is material provision
is carried at the present value of the cash flows
required to settle the obligation.
Contingent liabilities are 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 or a present obligation that arises
from past events where it is either not probable
that an outflow of resources will be required to
settle the obligation or a reliable estimate of the
amount cannot be made. When there is a possible
obligation or a present obligation in respect of
which the likelihood of outflow of resources is
remote, no provision or disclosure is made.
Contingent assets are possible assets that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future
events not wholly within the control of the entity. A
contingent asset is disclosed, where an inflow of
economic benefits is probable.
o) Government Grants
Government grants are not recognised until there
is reasonable assurance that the Company will
comply with the conditions attaching to them and
that the grants will be received.
Government grants are recognised in the
Statement of Profit and Loss on a systematic
basis over the periods in which the Company
recognises as expenses the related costs for
which the grants are intended to compensate.
Specifically, government grants whose primary
condition is that the Company should purchase,
construct or otherwise acquire non-current assets
are recognised as deferred revenue in the balance
sheet and transferred to the Statement of Profit
and Loss on a systematic and rational basis over
the useful lives of the related assets.
The benefit of a government loan at a below-market
rate of interest is treated as a government grant,
measured as the difference between proceeds
received and the fair value of the loan based on
prevailing market interest rates.
In the unlikely event that a grant previously
recognised is ultimately not received, it is treated as
a change in estimate and the amount cumulatively
recognised is expensed in the Statement of Profit
and Loss.
p) Financial instruments, Financial
assets, Financial liabilities and Equity
instruments
Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of the
relevant instrument.
Financial assets and financial liabilities are
initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or
issue of financial assets and financial liabilities
(other than financial assets and financial liabilities
measured at fair value through Profit and Loss)
are added to or deducted from the fair value on
initial recognition of financial assets or financial
liabilities. Transaction costs directly attributable
to the acquisition of financial assets or financial
liabilities at fair value through Profit and Loss are
recognised immediately in the Statement of Profit
and Loss. However, trade receivables that do not
contain a significant financing component are
measured at transaction price.
Classification and subsequent measurement
Financial Assets
All regular way purchases or sales of financial
assets are recognised and derecognised on a trade
date basis. Regular way purchases or sales are
purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the market place.
All recognised financial assets are subsequently
measured at either amortised cost or fair value
depending on their respective classification.
On initial recognition, a financial asset is classified
as measured at -
• Amortised cost; or
• Fair Value through Other Comprehensive
Income (FVTOCI) ; or
• Fair Value Through Profit and Loss (FVTPL)
Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period
the Company changes its business model for
managing financial assets.
All financial asset not classified as measured at
amortised cost or FVTOCI are measured at FVTPL.
This includes all derivative financial assets.
Financial assets at amortised cost are
subsequently measured at amortised cost using
effective interest method. The amortised cost is
reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment
are recognised in the Statement of Profit and Loss.
Any gain and loss on derecognition is recognised
in the Statement of Profit and Loss.
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.
For equity investments, the Company makes an
election on an instrument-by-instrument basis
to designate equity investments as measured
at FVTOCI. These elected investments are
measured at fair value with gains and losses
arising from changes in fair value recognised in
Other Comprehensive Income and accumulated
in the reserves. The cumulative gain or loss is
not reclassified to profit or loss on disposal of
the investments. These investments in equity
are not held for trading. Instead, they are held for
medium or long-term strategic purposes. Upon the
application of Ind AS 109, the Company has chosen
to designate these investments as at FVTOCI as
the Company believes that this provides a more
meaningful presentation for medium or long-term
strategic investments, than reflecting changes in
fair value immediately in the Statement of Profit and
Loss. Dividend income received on such equity
investments are recognised in the Statement of
Profit and Loss.
Equity investments that are not designated as
measured at FVTOCI are designated as measured
at FVTPL and subsequent changes in fair value
are recognised in the Statement of Profit and Loss.
Financial assets at FVTPL are subsequently
measured at fair value. Net gains and losses,
including any interest or dividend income, are
recognised in the Statement of Profit and Loss.
Financial liabilities and equity instruments
Debt and equity instruments issued by the
Company are classified as either financial liabilities
or as equity in accordance with the substance of
the contractual arrangements and the definitions
of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company is recognised at the
proceeds received, net of directly attributable
transaction costs.
Financial liabilities
Financial liabilities are classified as measured
at amortised cost or FVTPL. A financial liability
is classified as FVTPL if it is classified as held-
for-trading or it is a derivative or it is designated
as such on initial recognition. Other financial
liabilities are subsequently measured at amortised
cost using the effective interest method. Interest
expense and foreign exchange gains and losses
are recognised in the Statement of Profit and
Loss. Any gain or loss on derecognition is also
recognised in the Statement of Profit and Loss.
Compound instruments
An issued financial instrument that comprises
of both the liability and equity components are
accounted as compound financial instruments.
The fair value of the liability component is
separated from the compound instrument and the
residual value is recognised as equity component
of financial instrument. The liability component
is subsequently measured at amortised cost,
whereas the equity component is not remeasured
after initial recognition. The transaction costs
related to compound instruments are allocated
to the liability and equity components in the
proportion to the allocation of gross proceeds.
Transaction costs related to equity component is
recognised directly in equity and the cost related
to liability component is included in the carrying
amount of the liability component and amortised
using effective interest method.
Derecognition of financial assets
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.
If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet,
but retains either all or substantially all of the
risks and rewards of the transferred assets, the
transferred assets are not derecognised.
Offsetting
Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently
has a legally enforceable right to set off the
amounts and it intends either to settle them on
a net basis or to realise the asset and settle the
liability simultaneously.
Financial guarantee contracts and loan
commitments
A financial guarantee contract is a contract that
requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due
in accordance with the terms of a debt instrument.
Financial guarantee contracts and loan
commitments issued by the Company are initially
measured at their fair values and, if not designated
as at FVTPL, are subsequently measured at the
higher of:
• The amount of loss allowance determined in
accordance with impairment requirements of
Ind AS 109; and
• The amount initially recognised less, when
appropriate, the cumulative amount of
income recognised in accordance with the
principles of Ind AS 115.
Impairment of financial assets
The Company applies the expected credit loss
(ECL) model for recognising impairment loss on
financial assets. With respect to trade receivables,
the Company measures the loss allowance at an
amount equal to lifetime expected credit losses.
For all other financial instruments, the Company
recognises lifetime ECL when there has been
a significant increase in credit risk since initial
recognition. If, on the other hand, the credit risk
on the financial instrument has not increased
significantly since initial recognition, the Company
measures the loss allowance for that financial
instrument at an amount equal to 12 month ECL.
The assessment of whether lifetime ECL should be
recognised is based on significant increases in the
likelihood or risk of a default occurring since initial
recognition. 12 month ECL represents the portion
of lifetime ECL that is expected to result from
default events on a financial instrument that are
possible within 12 months after the reporting date.
Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets.
The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery.
This is generally the case when the Company
determines that the debtor does not have assets
or sources of income that could generate sufficient
cash flows to repay the amounts subject to the
write-off. However, financial assets that are written
off could still be subject to enforcement activities
under the Company recovery procedures, taking
into account legal advice where appropriate. Any
recoveries made are recognised in the Statement
of Profit and Loss.
q) Dividend Distribution
Final dividend on shares are recorded as a liability
on the date of approval by the shareholders and
interim dividends are recorded as a liability on
the date of declaration by the Company’s Board
of Directors.
r) Derivative contracts
The Company uses derivative financial instruments
such as foreign exchange forward contracts and
interest rate swaps to hedge its foreign currency
risks which are not designated as hedges. All
derivative contracts are marked-to-market and
losses/gains are recognised in the Statement of
Profit and Loss. Derivatives are carried as financial
assets when the fair value is positive and as
financial liabilities when the fair value is negative.
s) Use of Estimates and judgement
The preparation of financial statements in
conformity with Ind AS requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the
financial statements and the results of operations
during the reporting period end. Although these
estimates are based upon management’s best
knowledge of current events and actions, actual
results could differ from these estimates.
The estimates and underlying assumptions are
reviewed at the end of each reporting period.
Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the
revision affects only that period, or in the period
of the revision and future periods if the revision
affects both current and future periods.
Critical accounting judgements and key
source of estimation uncertainty
The following are the key assumptions concerning
the future, and other key sources of estimation
uncertainty at the end of the reporting period that
may have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year.
Useful lives of property, plant and
equipment and intangible assets
As described in the significant accounting policies,
the Company reviews the estimated useful lives
of property, plant and equipment and intangible
assets at the end of each reporting period. Useful
lives of intangible assets is determined on the basis
of estimated benefits to be derived from use of
such intangible assets. These reassessments may
result in change in the depreciation /amortisation
expense in future periods.
Fair value measurements and valuation
processes
Some of the Company’s assets and liabilities are
measured at fair value at each balance sheet date
or at the time they are assessed for impairment. In
estimating the fair value of an asset or a liability,
the Company uses market-observable data to the
extent it is available. Where Level 1 inputs are
not available, the Company engages third party
valuers, where required, to perform the valuation.
Information about the valuation techniques and
inputs used in determining the fair value of various
assets and liabilities require estimates to be made
by the management and are disclosed in the notes
to the financial statements.
Actuarial Valuation
The determination of Company’s liability towards
defined benefit obligation to employees is made
through independent actuarial valuation including
determination of amounts to be recognised in
the Statement of Profit and Loss and in Other
Comprehensive Income. Such valuation depend
upon assumptions determined after taking
into account discount rate, salary growth rate,
expected rate of return, mortality and attrition
rate. Information about such valuation is provided
in notes to the financial statements.
t) Fair value measurement
The Company measures certain financial
instruments at fair value at each reporting date.
Certain accounting policies and disclosures
require the measurement of fair values, for both
financial and non-financial assets and liabilities.
Fair value is 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 in the principal or, in
its absence, the most advantageous market
to which the Company has access at that date.
The fair value of a liability also reflects its non¬
performance risk.
The best estimate of the fair value of a financial
instrument on initial recognition is normally
the transaction price i.e. the fair value of the
consideration given or received. If the Company
determines that the fair value on initial recognition
differs from the transaction price and the fair value
is evidenced neither by a quoted price in an active
market for an identical asset or liability nor based
on a valuation technique that uses only data from
observable markets, then the financial instrument
is initially measured at fair value, adjusted to
defer the difference between the fair value on
initial recognition and the transaction price.
Subsequently that difference is recognised in the
Statement of Profit and Loss on an appropriate
basis over the life of the instrument but no later
than when the valuation is wholly supported by
observable market data or the transaction is
closed out.
While measuring the fair value of an asset or
liability, the Company uses observable market
data as far as possible. Fair values are categorised
into different levels in a fair value hierarchy based
on the inputs used in the valuation technique
as follows:
• Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices
included in Level 1 that are observable for
the assets or liabilities, either directly (i.e. as
prices) or indirectly (i.e. derived from prices)
• Level 3: inputs for the assets or liabilities that
are not based on observable market data
(unobservable inputs)
u) Earnings per share
Basic earnings per share are calculated by dividing
the profit or loss for the period attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, the profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period
are adjusted for the effect of all dilutive potential
equity shares.
v) Cash and cash equivalents (for
purposes of Cash Flow Statement)
Cash and cash equivalents in the Balance sheet
majorly comprise cash in current accounts, cash
on hand and short-term deposits with an original
maturity of three months or less, which are subject
to an insignificant risk of changes in value. For
the purpose of the Statement of Cash Flows, cash
and cash equivalents consist of cash in current
accounts, cash on hand and short-term deposits,
as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company’s cash management.
2.3 I he amount of expenditure (other than borrowing cost) recognised in the carrying amount of property, plant and equipment
in the course of construction is ' 1.10 Crores (2023-24 : ' Nil Crores) out of which ' 0.07 Crores (2023-24 : ' Nil Crores)
is incurred in current year.
2.4 Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at
Taloja and specified properties located at Tarapur and movable fixed assets at these locations.
2.5 The Impairment expenses if any, have been included under ‘Depreciation, amortisation and impairment expenses’ and
Impairment reversals if any, have been included under 'Other Income' in the Statement of Profit and Loss.
2.6 Plant and Equipment include ' 4.79 Crores (2023-24 ' Nil Crores) being cost of assets incurred by the Company, the ownership
of which vests with government company and ' 0.04 Crores (2023-24 ' Nil Crores) being accumulated depreciation thereon.
‘Figures less than ' 50,000.
3.1 The amortisation expenses of Right of use Asset have been included under ‘Depreciation, amortisation and impairment
expenses’ in the Statement of Profit and Loss.
3.2 Addition during the year include modification amounting to ' 0.23 Crores (2023-24: ' Nil Crores).
3.3 The Company had received an Order dated 5th October 2024 from Gujarat Industrial Development Corporation (GIDC),
initiating proceedings to vacate the land for non-utilisation within the required period (Carrying value as of 31st March 2025
is ' 73.74 crores). During the quarter ended 31st December 2024, the Company was granted Interim Stay, and the matter
is currently subjudice. The Company is legally advised that it has a strong case. Based on management’s assessment
and pending legal proceedings, no provision has been considered necessary at this stage.
6.1 The Board of Directors of the Parent Company, in its meeting held on 21st May, 2024 have resolved to revive the subsidiary
‘Galaxy Chemical Inc., USA', which was earlier decided to be wound up. During the year, the Company has been renamed to
Galaxy Surfactants Americas Inc.and has started its operations. Hence the provision for diminution in value of investments
of ' 0.31 Crores is reversed in the current year.
6.2 The Company has made investments in its subsidiaries viz Galaxy Specialties Europe B.V., Tri-k Mexico S.A. de C.V.,
Galaxy Surfactants Mexico S.A. de C.V. which were incorporated during the year.
6.3 During the year the Company has redeemed Preference Shares of USD 1.29 Crores for ' 108.11 Crores at par. Income on
redemption aggregating ' 10.73 Crores (2023-24 ' Nil Crores) is recorded in Other Income. This income on redemption
of Preference Shares represents difference between redemption amount and carrying value at FVTPL.
Description of the nature and purpose of reserves in statement of changes in equity
Securities Premium: This reserve represents the premium on issue of equity shares received and can be utilized in accordance
with the provisions of the Companies Act, 2013.
General Reserve: This reserve is created by an appropriation from one component of equity (generally retained earnings) to
another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the
provisions of the Companies Act, 2013.
Retained Earnings: This reserve represents the cumulative profits of the Company and effects of remeasurement of defined
benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.
Information about major customers
During the year ended 31st March, 2025 and 31st March, 2024 respectively, Revenue from transaction with a single external
customer did not amount to 10% or more of the company's revenue from external customers.
39 DETAILS OF RESEARCH AND DEVELOPMENT
Research and Development expenses for the year amount to ' 15.74 Crores (2023-24 : ' 13.70 Crores) debited to the
Statement of Profit and Loss.
40 DETAILS OF CSR EXPENDITURE
As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financials years on corporate social responsibility (CSR)
activities. The area for CSR activities are promoting healthcare including preventive healthcare; Promoting education,
including special education and employment enhancing vocational skills among children, women, elderly, and the differently
abled and livelihood enhancement projects; Rural development projects; Ensuring environmental sustainability, ecological
balance, protection of flora and fauna, agroforestry, conservation of natural resources and maintaining quality of soil, air
and water; Animal welfare; Empowering women.
44 EMPLOYEE BENEFITS
a. Defined contribution plan
The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying
employees. The Company has recognised ' 8.04 Crores (2023-24 - ' 7.35 Crores) for the year being Company's contribution
to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.
b. Defined benefit plan
Gratuity plan
Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the
“Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who
has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service.
The Company makes an annual contribution to the group gratuity scheme administered by the insurance companies.
Through its gratuity plans, the Company is exposed 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 and will decrease the return on the plan's assets.
Salary risk
The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.
Investment risk
For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.
The current service cost and net interest cost for the year pertaining to Gratuity expenses have been recognised in
“Contribution to Provident and other funds” in the statement of Profit and loss (Refer Note 29). The remeasurements of
the net defined benefit liability are included in Other Comprehensive Income.
The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
#Includes benefits of ' Nil Crores (2023-24'2.03 Crores) paid by the Company.
45 CAPITAL MANAGEMENT
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence.
The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders.
The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
47 FINANCIAL RISK MANAGEMENT FRAMEWORK
The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop
an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner.
The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both
external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation
solutions are determined to bring risk exposure levels in line with risk appetite. The Company's risk management policies
and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company's
business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest rate
risk and Commodity price risk.
A) Market Risk
The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial
instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income
and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are
explained below.
a) Interest Rate Risk
Interest rate risk results from changes in prevailing market interest rates, which can cause changes in the interest payments
of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities
carry interest at variable rates. The management is responsible for the monitoring of the Company's interest rate position.
Various variables are considered by the management in structuring the Company's borrowings to achieve a reasonable,
competitive cost of funding.
b) Commodity Risk
The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do
not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw
materials may affect the Company's business and results of operations. Management reviews the commodity price risk
regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to
hedge the price risk associated with the major raw material.
c) Currency Risk
The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated
in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency,
which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a
natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies
would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent ,the company uses foreign exchange
forward contracts to minimise the risk.
B) Credit Risk Management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The
Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The company's exposures
are continuously monitored and wherever necessary we take advances/LC's to minimise the risk.
a) Trade Receivables, Advances, Contract Assets and Other Financial Assets
The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which
permits the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed
expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward¬
looking information (including macroeconomic information) has been incorporated into the determination of expected
credit losses. Based on such information the company has evaluated that there is no provision required under expected
credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal
issues which require resolution against which specific provisions are made when found necessary.
b) Other Financial Assets
In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates
the carrying amount of each class of financial assets.
C) LIQUIDITY RISK
Liquidity risk management
Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities
that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have
sufficient liquidity or access to funds to meet our liabilities when they are due.
Maturity profile of financial liabilities
The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed
undiscounted cash flows along with its carrying value as at the Balance Sheet date.
If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax
and Pre-tax Equity.
The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the
reporting period does not reflect the exposure during the year.
(B) Interest Rate sensitivity
The sensitivity analysis below have been determined based on exposure to interest rate for both long term & short
term borrowings.
The following table demonstrates the sensitivity in interest rates on that portion of loans and borrowings which are not
hedged, with all other variables held constant, the Company’s profit before tax is affected through the impact on floating
rate borrowings, as follows:
49 OFFSETTING OF BALANCES
The Company has not offset financial assets and financial liabilities.
50 COLLATERALS
The Company has borrowings which are secured by hypothecation of current assets, mortgage of immovable properties
located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations.
51 FAIR VALUE DISCLOSURES
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market or Net Asset Value ("NAV") for identical assets or liabilities.
Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
The fair value of financial instruments that are not traded in an active market is determined using market approach and
valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally
accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate
that reflects the credit risk of counterparty.
The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be
equal to the carrying amounts of these items due to their short-term nature.
The fair value of the unquoted preference shares has been estimated using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit
risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in
management’s estimate of fair value for these unquoted preference share investments. The Company engages external,
independent and qualified valuers to determine the fair value of the preference shares investment.
Explanatory notes:
(i) Investments includes current and non-current investments including Fixed deposits excluding investments in Equity/
Preference instruments.
Explanation for change in the ratios by more than 25%:
(i) Debt Service Coverage Ratio (Times): The debt service coverage ratio is at 3.55 in current year as against 6.48
in previous year primarily due to higher repayment of long term borrowings during the year.
(ii) Net Capital Turnover Ratio (Times): The Capital Turnover Ratio is 7.76 in current year as against 6.03 in previous
year primarily due to higher sale as well as lower working capital.
55 OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceedings have been initiated or pending against
the Company for holding any Benami property.
(ii) The Company do not have any charges or satisfaction which are yet to be registered with the ROC beyond the
statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) 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
(v) 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
(vi) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961).
56 IND-AS YET TO BE NOTIFIED
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2025, MCA has not
notified any new standards or amendments to the existing standards applicable to the Company.
For and on behalf of the Board of Directors of
Galaxy Surfactants Limited
CIN No. L39877MH1986PLC039877
K. NATARAJAN VAIJANATH KULKARNI
Managing Director Executive Director & COO
DIN :07626680 DIN :07626842
ABHIJIT DAMLE NIRANJAN KETKAR
Chief Financial Officer Company Secretary
Place: Navi Mumbai
Date: 16th May, 2025
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