Assistance by government in the form of transfers of resources to the Company in return for past or future
compliance with certain conditions relating to operating activities of the entity other than those which cannot
reasonably have a value placed upon them or those that cannot be distinguished from normal trading transactions
of the Company are termed as government grants. All government grants are identified as either relating to assets
or relating to income. Government grants whose primary condition is that a Company qualifying for them should
purchase, construct or otherwise acquire long-term assets are identified as grants related to assets. Grants other
than those related to assets are identified as related to income. Government grants are recognised when there is
a reasonable assurance that the Company will comply with the conditions attaching to them and the grants will
be received. A forgivable loan from government is treated as a government grant when there is a reasonable
assurance that the entity will meet the terms for forgiveness of the loan. The Company recognises Government
grants in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the
related costs for which the grants are intended to compensate. Grants related to assets, including non-monetary
grants at fair value, are presented in the balance sheet as deferred income. Deferred income is recognised in profit
or loss on the basis the related assets are depreciated or amortised if they are related to asset or under other
income when the grant becomes receivable. Grants related to income are presented in profit or loss under other
operating income. Grants received in advance before fulfilment of conditions are recognised as Other Liability
classified into current or non-current, as appropriate in the circumstances of the case.
(xv) Earnings per Share
Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders
of the company by the weighted average number of Equity Shares issued during the year. Diluted earnings per
share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings)
by average number of weighted equity shares outstanding including the effect of all dilutive potential ordinary
shares.
(xvi) Taxes on Income :
a) Current tax:
Current tax is determined on income for the year chargeable to tax in accordance on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period. Current tax items are recognised in
correlation to the underlying transaction either in profit or loss or OCI or directly in equity. The Company has
provided for the tax liability based on the significant judgment that the taxation authority will accept the tax
treatment.
b) Deferred tax:
Deferred tax is recognised 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 are generally recognised for all taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
deferred tax asset to be utilized.
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 measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India,
which is likely to give future economic benefits in the form of availability of set off against future income tax
liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be
measured reliably and it is probable that the future economic benefit associated with asset will be realised.
Deferred tax relating to items recognised outside profit or loss is recognised either in other comprehensive
income or in equity.
(xvii) Leases :
As a Lessee
The Company's leased assets consist of leases for Land. 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: (i) the contract involves the use
of an identified asset (ii) the company has the right to obtain substantially all of the economic benefits from use
of the asset throughout the period of use; and (iii) the company has the right to direct the use of the asset.
The Company recognises 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, Plant 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 subsequently measured as given below:
(a) increasing the carrying amount to reflect interest on the lease liability;
(b) reducing the carrying amount to reflect the lease payments made; and
(c) remeasuring the carrying amount to reflect any reassessment or lease modifications.
It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there
is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or
if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of
the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short term lease that have a
lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments
associated with these leases on straight line basis as per the terms of the lease.
(xviii) Statement of Cash flows:
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the Company are segregated based on the available
information.
Note: 2.1
With respect to amendments made vide notification no. G.S.R 255(E) dated 31st March 2023 by The Ministry of Corporate
Affairs for Companies (Indian Accounting Standards) Amendment Rules,2022. There was no material impact on the financial
statements of the company during the financial year with respect to the said IND AS amendment related to Ind AS 1 -
Presentation of Financial Statements, Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors & Ind AS 12
- Income Taxes.
Note:2.2
Standards issued but not yet effective
Till the date of approval of these financial statements, no notification issued in respect of amendments to Ind AS that would
be effective in future periods have been notified by the Ministry of Corporate Affairs.
The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for which fair values
are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial instruments in to three levels prescribed is as under:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either
directly (i.e. as prices ) or indirectly (i.e. derived from prices)
Level 3 - Inputs for the assets or liabilties that are not based on observable market data (unobservable inputs)
There were no transfers between the levels during the year
Valuation process
The finance department of the Company includes a team that performs the valuations of financial assets and liabilties
required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2
classified assets and liabilties are readily available from the quoted pricies in the open market and rates available in
secondary market respectively. The valuation method applied for various financial assets and liabilties are as follows
1. Quoted price in the primary market (NAV) considered for the fair valuation of the current investment i.e Mutual fund.
Gain / (loss) on fair valauation is recognised in profit and loss.
2. The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances,
statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to
their short-term nature.
42 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
I Credit Risk
II Liquid Risk
III Market Risk
Risk Management Framework
'The Company's risk management is governed by policies and approved by the board of directors. Company identifies,
evaluates and hedges financial risks in close co-operation with the Company's operating units. The company has policies
for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk,
credit risk, use of derivative financial instruments and non-derivative financial instruments.
'The audit committee oversees how management monitors compliance with the company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee
I Credit Risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company
maintain its cash and cash equivalents and bank deposits with banks having good reputation, good past track record
and high quality credit rating and also reviews their credit-worthiness on an on-going basis.
The maximum exposure to credit risk at the reporting date is primarily from trade receivables. Credit risk has always
been managed by the company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the company grants credit terms in the normal course of business.
On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The
company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The
provision matrix takes into account available external and internal credit risk factors and the company's experience
for customers.
The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if collection is
doubtful. The Company also calculates the expected credit loss (ECL) for non-collection of receivables.The company
has assessed that credit risk on loans given, Investments, Other Financial Assets, Cash & Cash Equivalents and Other
bank Balance are insignificant based on the empirical data.
'The provision for doubtful debts including ECL allowances for non-collection of receivables and delay in collection,
on a combined basis, was Rs.254.94 Lakhs as at March 31, 2025 and Rs.301.19 Lakhs as at March 31, 2024. The
movement in allowances for doubtful accounts comprising provision for both non-collection of receivables and delay
in rnllprfinn ic pq fnllnu/Q-
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 are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's
reputation.
Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assesment of maturity
profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity
ratios are considered while reviewing the liquidity position. The company has undrawn borrowing facilities to the
extent of Rs.1331.38 Lakhs as at March 31, 2025(PY. Rs 1950.00 Lakhs as at March 31, 2024).
i) Exposure to Liquid Risk:
'The table below provides details regarding the contractual maturities of financial liabilities including estimated
interest payments as at 31 March 2025. The amounts are gross and undiscounted, and include estimated interest
payments and exclude the impact of netting agreements.
The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of
payables and receivables in foreign currency. Company is exposed to currency risk on account of payables and
receivables in foreign currency.
Company does not use derivative financial instruments for trading or speculative purposes.
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company's position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities,
the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was
outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally
to key management personnel and represents management's assessment of the reasonably possible change in interest
ratPQ
c) Price Risk
The company's exposure to price risk arises from investments in equity shares of other companies (Refer Note 9). The
company has not undertaken any risk mitigation measures to reduce the price risk. The table below summarises the
impact of increases / decreases of Mutual fund price of the investments and profit for the period. The analysis is based
on the assumption that the market price of those investments in equity shares of other companies move by 5% point on
either side with all other variables held constant.
The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the
extent applicable:
(a) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961 which have not been recorded in the books of account.
(b) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory
period.
(c) No proceedings have been initiated or pending against the company for holding any benami property under the
Benami transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.
(d) During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation
in respect of Property, Plant & Equipment and intangible assets.
(e) There are no intangible assets under development in the Company during the current reporting period.
(f) The company has not entered in to any transaction with companies struck off under section 248 of the Companies
Act,2013.
(g) The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at
the balance sheet date.
(h) The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(i) Details in respect of Difference in respect of Current assets as per books and details as provided in quarterly returns
filed by the company, the details of the same is as under:
49 During the current year ended 31 March 2025, the Hob'ble National Company Law Tribunal, Ahmedabad Bench vide its
order dated 26th April 2024 ('NCLT order') has approved the Scheme of Arrangement ('the Scheme') Involving transfer by
way of demerger of business of Aromatic Chemical unit of the company ('Demerged company') to the M/s Vikram Aroma
Limited (' the Resulting company'), pursuant to section 230-232 and other relevant provisions of the Companies Act,
2013 read with Rules made thereunder.Pursuant to such scheme, the total assets and liabilities pertaining to the
Aromatic Chemical undertaking , have been transferred to the resulting company, from effective date being 04 May
2024 and share holders of demerged company has been alloted 1 equity share of Rs.10 each of resulting company
against every 10 shares of Rs.10 each held by the share holders of Demerged company.
50 The scheme of Demerger under section 230-232 of the Companies Act, 2013 has been approved by Hob'ble National
Company Law Tribunal, Ahmedabad Bench,became effective from 04/05/2024. In view of the same the performance of
demerged business of Aromatic Chemical unit for the period from 01/04/2024 to 03/05/2024 and for the year from
01/04/2023 to 31/03/2024 has been shown seperately as the Profit/(Loss) from the discontinued operations.
51 The financial statement are approved by the Audit Committee as at its meeting on 26th May,2025 and by the Board of
Directors on 26th May,2025.
Signature to notes "T’ to "51" For & on behalf of the Board of Directors of
As per our rep°rt of even date attached herewith Vikram Thermo (India) Limited.
FOR, J. T. SHAH & CO
Chartered Accountants Sd/- Sd/-
(Firm Regd. No.109616W) (D. K. PATEL) (A. D. PATEL)
Sd/- Chairman & Managing Director Whole Time Director
(A. R. Pandit) (DIN: 00044350) (DIN: 07395218)
Partner Sd/- Sd/-
(M.No.127917) (Switi S. Patel) (M.K SHAH)
place : Ahmedabad Chief Financial Officer Company Secretary
Date : 26-05-2025
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