2.13 Provisions
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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
2.14 Retirement and other employee benefits Short-term obligations
Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Post-employment obligations The company operates the following postemployment scheme: employment scheme:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident fund.
Bonus plans
The company recognizes a liability and an expense for bonuses. The company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
2.15 Investments in subsidiaries
In respect of equity investments, the entity prepares separate financial statements and account for its investments in subsidiary at cost, net of impairment if any.
2.16 Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and 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 and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management.
2.17 Trade receivables
Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
2.18 Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.
2.19 Contributed equity
Equity shares are classified as equity.
2.20 Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the company
• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
2.21 Contingent Liabilities
In the opinion of the Board of Directors, adequate provisions have been made in the accounts for all known liabilities. The value of current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet, unless otherwise stated.
The company does have any pending litigation which would impact on its financial position.
2.22 New standards and interpretations not yet adopted
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1,2022, as below:
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 16 - Proceeds before intended use
The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract
The amendments specify that the "cost of fulfilling" a contract comprises the "costs that relate directly to the contract". Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.
I nd AS 109 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the "10 percent" test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.
I nd AS 116 - Annual Improvements to Ind AS (2021)
The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.
2.23 Research and Development Expenditure
These amounts represent liabilities for goods and services
1. Capital Expenditure is included in Fixed Assets and Capital Work in Progress and depreciation is provided at the respective applicable rates.
2. Revenue expenditure incurred on R&D has been included in the respective account heads in the statement of accounts.
2.24 API Plant at Dahej-II (Dahej Unit-I)
The Active Pharma Ingredient (API) Plant of the company was audited by US FDA during April 2024 the procedural queries has been responded to US FDA. The approval is expected any time.
2.25 Agro Chemical Plant at Dahej-III (Dahej Unit-II)
The company has setup an agro-chemicals, synthetic organics chemicals & intermediates plant at Dahej-III with an installed capacity of 20100MT PA. Out of 20100MT PA total annual capacity, company constructed one block to manufacture 3500MT PA insecticides/fungicides in first phase. The herbicide and specialty chemical blocks shall be taken up in second phase of expansion.
2.30 Managerial Remuneration
During the year, company has paid total managerial remuneration amounting to Rs. 230.34 Lakhs (Previous year Rs.227.64 lakhs) which is approved under Section 197 read with schedule-V of the Companies Act, 2013.
2.31 Suppliers Status of registration under the Micro, Small & Medium Enterprises:
The company is regular in making payments as per terms except for special reasons to the Micro, Small and Medium Enterprises.
2.32 The Previous Year Figures have been reworked, regrouped, rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current year’s figures.
2.33 Corporate Social Responsibilities:
During the year company incurred Rs.32.61 lakhs under CSR activities, as prescribed u/s 135 of the Companies Act, 2013 (Rs.32.61 lakhs for previous year).
As per our attached report of even Date
for Rahul Chaudhary & Associates for & on behalf of the Board of Directors
Chartered Accountants Shivalik Rasayan Limited
Sd/- Sd/- Sd/- Sd/- Sd/-
CA Rahul Chaudhary Parul Choudhary Vinod Kumar Ashwani Kumar Sharma Rahul Bishnoi
Partner Company Secretary Chief Financial Officer Director Chairman
M. No. 542837 ACS:34854 PAN: AQPPK5268F DIN: 00325634 DIN: 00317960
FRN: 033971N Place: Faridabad Date: 29.05.2024
As per our report of even date attached
For Rahul Chaudhary & Associates For and on behalf of the Board
Chartered Accountants Shivalik Rasayan Limited
Firm Regn. No. 033971N
Sd/- Sd/- Sd/- Sd/- Sd/-
CA Rahul Chaudhary Parul Choudhary Vinod Kumar Ashwani Kumar Sharma Rahul Bishnoi
Partner Company Secretary Chief Financial Officer Director Chairman
M. No. 542837 (ACS: 34854) (PAN: AQPPK5268F) (DIN: 00325634) (DIN: 00317960)
Place : Faridabad Dated : May 29, 2024
| 