(d) The Company has not issued any shares for a consideration other than cash during the period of five years immediately preceding the reporting date except 98,72,560 Equity Share of Rs. 10/- each allotted as fully paid-up Bonus Shares in the ratio of 2:1 partly by Capitalisation of Security Premium and balance out of the Free Reserve being Surplus in the Statement of Profit & Loss during FY 2021-22.
(e) The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.
Balances of Term Loans from Kotak Mahindra Bank Ltd include:
Term Loans from Kotak Mahindra Bank were secured against all existing and future receivables, current assets and movable property plant and equipments. Rate of Interest is RPRR 5.50% (as per latest sanction) 2.75% (spread) i.e. 8.25%. The company had been given a 13-month moratorium during which only interest was to be paid. Principle repayment started from April 2024.
The above facilities were further secured by collateral security of Factory Land, Building at GIDC, Ankleshwar and hypothecation of existing Plant & Machinery and also personal guarantee of two Directors.
The Company has obtained sanction of Cash Credit Limits of Rs 500 Lakhs against First and Exclusive Charges on all existing and future current assets. The Facilities are further secured by way of mortgage of immovable property of the Company as a Collateral as well as personal guarantees of the two directors i.e. Girish Shah and Sanjay Marathe. The applicable Rate of Interest is RPRR 5.50% (as per latest sanction) 2.75% (spread) i.e. 8.25%.
NOTE: Refer Note No.52 for Dues to Micro and Small Enterprises Dues to Micro and Small Enterprises:
With reference to amounts shown as payable to Micro, Small and Medium Enterprises, the information has been compiled in respect of parties to the extent they could be identified as Micro, Small and Medium Enterprises on the basis of information collected and available with the Company and same has been relied upon by the auditors.
41 'Trade Payables and Trade Receivables are as per books and have been corroborated by circulation / confirmation of balances / reconciliation of accounts in case of few major parties. Confirmations of other parties concerned, for the amount receivable / due to them as per accounts of the company, are under process and any reconciliation and adjustments required, will be made thereupon.
42 In the opinion of the Board, the Current Assets, Loans and Advances which are considered good are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business. Further, in the opinion of the Board, provision of all known liabilities has been adequately made in the accounts.
43 Company has used the borrowing from Bank for the specific purpose for which it was taken at Balance sheet date.
46 DIRECTOR'S REMUNERATION:
Directors' remuneration paid during the year is in accordance with the approval of the Shareholders sanctioned to the Company under Section 197 of the Companies Act, 2013 for giving the Remuneration above the limits prescribed by Section 197 read with Section II of Part-II of Schedule V of the Companies Act, 2013. The amounts paid includes the following:
51 EMPLOYEE BENEFIT:
Provident Fund dues amounting to Rs. 28.49 Lakhs (P.Y. Rs. 30.51 Lakhs) paid during the year being defined contributions have been charged to the Statement of Profit and Loss.
The Company has a policy of providing leave salary to its employees, under which an employee may accumulate earned leave up to a maximum of 50 days. Any accumulated leave in excess of this limit lapses. The accumulated leave is eligible for encashment only at the time of an employee's separation from the Company.
The obligation towards leave encashment is classified as short-term compensated absences and is determined on the basis of the accumulated leave entitlement of employees as at the year-end, valued at current salary levels. Accordingly, a sum of Rs. 4.45 Lakhs (Previous year Rs. 0.44 Lakhs) has been recognised as liability towards leave encashment and charged to the Statement of Profit and Loss.
The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with a overall ceiling of 20 Lakhs. The Company has taken a Group Gratuity cum Life Insurance Policy from Life Insurance Corporation of India (a qualifying policy) and makes annual contributions to the same to create a fund to meet this defined benefit gratuity obligation.
(Since the Fair Value of Plan Assets is higher than Non Current Portion of Present Value of Obligations, the Net Liability has been considered as that of Current Portion)
The estimates of rate escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2025-26.
The plan typically expose the Company to actuarial risks such as: interest rate risk, liquidity risk, salary escalation risk and regulatory risk.
Interest Rate Risk:
The plan exposes the Company to the risk of a fall in interest rates. A fall in market interest rates will result in an increase in the ultimate cost of providing the benefit, thereby increasing the value of the liability as presented in these financial statements.
Liquidity Risk:
This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to nonavailability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk:
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Regulatory Risk:
Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 ( as amended from time to time). There is a risk of change in regulations requiring higher gratuity pay-outs (e.g., Increase in the maximum limit on gratuity of Rs. 20 Lakhs.
The Company deals with various Micro and Small Enterprises on mutually accepted terms and conditions. Accordingly, no interest is payable if the terms are adhered to by the Company. Consequently, no interest has been paid or is due and no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006.
53 ADDITIONAL REGULATORY INFORMATION:
i. There are no immovable properties (other than properties where the Company is a lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.
ii. The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
iii. The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMPs and Related Parties either severally or jointly with other persons that are repayable on demand or without specifying any terms or period of repayment.
vi. The Company does not have any Benami property and no proceeding has been initiated or pending against
the Company for holding any Benami property.
vii. The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
viii. The Company has not entered into any transactions with Struck-off Companies.
ix. There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period or otherwise.
x. The Company has a direct investment in Subsidiary which does not have any further downstream investment. Hence, it is in compliance with the number of layers prescribed under Section 2 (87) of the Companies Act, 2013 read with Companies (Restriction on Number of Layers ) Rules, 2017.
xi. There was no Scheme of Arrangements during the year.
xii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.
xiii. The Company has not received any fund from any person(s) or entity(is), 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.
xiv. The Company does not have any 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.
xv. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
54 The Company has been sanctioned Working Capital Limits of Rs. 500 Lakhs which are inter-alia against security of current assets. The Company has filed the Statements of Current Assets on monthly basis. Quarterly statement of current assets submitted by company with Banks are in agreement with books of accounts.
55 There are no amounts pending to be transferred to the Investors Education and Protection Fund as at the end of the year.
56 IMPAIRMENT OF ASSETS:
In absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for same during the year under report.
Valuation technique and key input: NAV declared by respective Asset Management Companies.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
There has been no transfers between level 1, level 2 and level 3 for the year ended March 31, 2026 and year March 31, 2025.
60 CLASSIFICATION OF EXPENDITURES BETWEEN REVENUE AND CAPITAL NATURE AND CAPITALIZATION OF INTEGRATED PLANT COMPONENTS:
Refer to Note 3.2 of Property, Plant and Equipment (PPE)
The Company continues to enhance its manufacturing facilities and / or upgrade the same which continue to involve integrated plant components such as steel structures, gratings, piping systems, civil construction works, electrification, and modifications or additions of chemical processing vessels.
Given the nature of the chemical plant, the physical segregation or identification of these components becomes impractical after installation. Consequently, management has applied significant judgment in determining whether such expenditures should be classified as capital in nature and recognized as part of PPE or expensed as revenue expenditures.
The classification assessment involves technical evaluations regarding the functional enhancements, assessment of whether future economic benefits are expected to flow to the Company, and adherence to the capitalization criteria defined in the Company's accounting policy and Ind AS 16 - Property, Plant and Equipment. Where individual identification is not feasible, the expenditure is aggregated and capitalized based on management's technical assessment.
Management believes that the judgments applied are reasonable and consistent with the applicable accounting framework.
61 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:
The company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables and cash and cash equivalents that are derived directly from its operations.
The Company's financial risk management is an internal part of how to plan and execute its business strategies. The company is exposed to market risk, credit risk and liquidity risk.
The Company's senior management oversees the management of financial risks. Senior professionals responsible for managing these risks operate within an established financial risk governance framework and are accountable to the Board of Directors and the Audit Committee. This framework ensures that financial risktaking activities are governed by appropriate policies and procedures, and that financial risks are identified, measured, and managed in alignment with the Company's policies and risk management objectives. In times of financial stress or uncertainty, the management assesses the recoverability of assets and the maturity profile of liabilities to factor these into cash flow forecasts, ensuring adequate liquidity is maintained through internal and external sources of funds. These forecasts and underlying assumptions are reviewed and approved by the Board of Directors.
1. Risk Management Framework
The Company's board of directors has overall responsibility for establishment and Oversight of the company's risk management framework. The board of directors has established the processes to ensure that executive management controls risks through the Mechanism of property defined framework. The Company's risk management policies are established to identify and analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the board annually to reflect changes in market conditions and company's activities. The company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
2. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company's receivables from customers. The carrying amount of financial assets represents the maximum credit exposure. The Company monitors credit risk very closely both in domestic and export market. The management impact analysis shows credit risk and impact assessment as low.
Financial instruments that are subject to concentrations of credit risk principally consist of balances with banks, trade receivables, and loans and advances.
In case of Trade Receivables, the Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. The company management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the Directors of the company. Most of the Company's customers have been transacting with the company for over Five to Ten years against those customers. In monitoring customer credit risk, Customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties. In accordance with Ind AS 109, the Company applies the simplified approach and uses a provision matrix as a practical expedient to measure expected credit losses (ECL) on trade receivables. This computation is based on historical credit loss experience, adjusted for forward-looking macroeconomic assumptions. Based on this assessment, the Company has recognized a provision for Expected Credit Loss during the current financial year.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past due and not impaired, there were no indication of default in repayment as at the year end.
3. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
4. Market Risk
Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company's income or the value of its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The major components of market risk are foreign currency risk, interest rate risk and price risk.
i. Interest Rate Risk
It 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 Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates.
ii. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
The Company has not entered into any forward contracts or derivative instruments to hedge its foreign currency exposures. Accordingly, there are no outstanding forward contracts as at the end of the year.
Foreign Currency Sensitivity
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
iii. Price Risk
The Company has deployed its surplus funds into units of mutual funds. The Company is exposed to NAV (net asset value) price risks arising from investments in these funds. The value of these investments is impacted by movements in liquidity and the credit quality of underlying securities.
NAV price sensitivity analysis
The Sensitivity analyses below have been determined based on the exposure to NAV price risks at the end of the reporting period. If NAV prices had been 1% higher/lower :
Profit for the year ended 31st March 2026 would increase/decrease by Rs. 15.88 lakhs (Previous Year Rs. 19.78 Lakhs).
The Board of Directors of the Company in its meeting held on May 14, 2026 has approved and recommended final dividend of Re. 1/- i.e. (10%) per equity share of the Company having face value of Rs. 10/- each amounting to 1,48,08,840 for the financial year 2025-2026, subject to approval from shareholders.
63 BORROWING COST:
During the year, the company capitalized borrowing costs amounting to Rs. 10.22 Lakhs (PY: Rs. 80.14 Lakhs).
64 SEGMENT REPORTING:
The products offered by the Company are in the nature of Bulk Drug Intermediates and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the Company effectively has a single reportable business segment. Hence, segment-wise disclosure of information is not applicable.
66 The figures in respect of previous year have been re-grouped / recast wherever necessary to confirm to the current year's classification.
67 The Standalone financial Statements for the year ended 31st March 2026 were approved by the Board of Directors in their meeting held on 14th May 2026.
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