Terms / Rights attached to equity shares
The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion of their shareholding.
During the year ended 31st March, 2025, the Company had paid Final Dividend of ' 6.75 per equity share of ' 1 each for the financial year 2023-24.
During the year ended 31st March, 2026, the Company had paid Final Dividend of ' 7 per equity share of ' 1 each for the financial year 2024-25.
On 24th April 2026, the Board of Directors of the Company have proposed a dividend of ' 7 per equity share of ' 1 each in respect of the year ended 31st March 2026 subject to the approval of shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of ' 1283.60 Lakhs.
Details of dues to micro and small enterprises
The Company did not have any time during the year, amount due to small and medium enterprises (SME) which is outstanding for more than 45 days. Further, no interest is paid/payable to such SME creditors. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.
Segment information
The Company's current business activity has only one primary reportable segment, namely trading in chemicals.
Note 37 Gratuity
The Company has classified various employee benefits as under :
A) Defined Contribution Plans
(a) Provident Fund
(b) Superannuation Fund
The Provident Fund is operated by the Regional Provident Fund Commissioner and the Superannuation Fund is administered by the LIC of India as applicable for all eligible employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognised by the Income Tax Authorities.
(vi) The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc.. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.
(vii) The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.
(viii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
Actuarial gains and losses in respect of defined benefit plans are recognised in the Financial statements through other comprehensive income.
Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with references to government bond yields; if plan assets under perform compared to the government bonds discount rate, this will create or increase a deficit.
As the plans mature, the Company intends to reduce the level of investment risk by investing more in assets that better match the liabilities.
Changes in bond yields
A decrease in government bond yields will increase plan liabilities, although this is expected to be partially offset by an increase in the value of the plans’ bond holdings.
Life expectancy
The majority of the plan’s obligations are to provide benefits for the service life of the member, so increases in servie life expectancy will result in an increase in the plan’s liabilities. This is particularly significant in the Company's defined benefit plans, where inflationary increases result in higher sensitivity to changes in service life expectancy.
i. Capital Management
The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximising the return to stakeholders through the optimum utilisation of the equity balance.
The capital structure of the Company consists of only equity of the Company. The Company is not subject to any externally imposed capital requirements.
iii. Financial risk management objectives
The Company's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk, credit risk and liquidity risk.
The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company's policies approved by the board of directors, which provide written principles on foreign exchange risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
iv. Market risk
The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates (see note below). The Company enters into vanilla currency options or forward foreign exchange contracts to manage its exposure to foreign currency risk of imports.
v. Foreign currency sensitivity analysis
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
The Company is mainly exposed to the USD.
The following table details the Company's sensitivity to a 2% increase and decrease in the ' against the relevant foreign currency. 2% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rates.
A negative number below indicates a decrease in profit or equity where the ' weakens 2% against USD. For a 2% strengthening of the Rs. against USD, there would be a comparable impact on the profit or equity, and the balances below would be positive.
This is mainly attributable to the exposure outstanding on USD payables towards imports.
In Management's opinion, 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.
The line-items in the balance sheet that include the above hedging instruments are “Other financial assets”.
The aggregate amount of MTM loss/gain under options/forward foreign exchange contracts recognised in profit or loss for the year, is Gain of ' 331.63 Lakhs (Loss of ' 250.59 Lakhs in 2024-25).
vi Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Trade receivables consist of customers spread across diverse industries and geographical areas.
Apart from Pidilite Industries Ltd., the largest customer of the Company,the Company does not have significant credit risk exposure to any single counterparty.
The credit risk on liquid plus funds and derivative financial instruments is limited because the counterparties are fund houses and banks with high credit-ratings assigned by international credit-rating agencies.
In addition, the Company is exposed to credit risk in relation to guarantees given by banks on behalf of the Company. The Company’s maximum exposure in this respect is the maximum amount the Company could have to pay if the guarantee is called on & the bank recovers the amount from the Company.
These financial guarantees have been issued by banks on behalf of the Company,to Sales Tax Department.
vii Liquidity risk management
As the Company is engaged in trading of chemicals,it enjoys a higher credit period from its suppliers as compared to the credit period extended to its customers.Consequently,the Company 's liquidity position is normally strong thereby substantially reducing the requirement of obtaining external finances.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Note below sets out details of additional undrawn facilities that the Company has at its disposal to further reduce liquidity risk
*In discharge of its CSR obligations, the Company has made contribution of the required amount to Trivenikalyan Foundation, a registered public trust (Implementing Agency) for undertaking projects which are in line with the Company's CSR Policy and Annual Action Plan.
Note 46
Events after the reporting period
There was no significant event after the end of the reporting period which requires any adjustment or disclosure in the financial statement other than the proposed dividend of 1 per equity share of ' 1 each recommended by Board of Directors at its meeting held on 24th April 2026. The proposed dividend amounting to ' 1283.60 Lakhs is subject to approval at the ensuing Annual General Meeting of the Company and hence, is not recognised as a liability.
Note 47
There are no cases of any undisclosed income in the financial statements.
Note 48
The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
- 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
- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
Note 49
The Company has not received any funds 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
- 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
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note 50
There are no registrations of any charges or satisfactions pending with Registrar of Companies.
Note 51
The Company has not traded or invested in crypto currency or virtual currency during the current year and Previous year.
Note 52
The Company has not entered any transactions in companies that were struck off under the relevant sections of the Companies Act 2013.
Note 53
The Company has utilized borrowings from Banks for the specific purpose for which it was taken. There are no borrowings from financial institutions. Quarterly returns or statements of current assets filed by the Company with Banks are in agreement with the Books of accounts.
Note 54
The Company has not given any loans and advance to Promoters, Directors, KMPs or Related parties.
Note 55
No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions Act, 1988 & the Rules made thereunder.
Note 56
The Company is not declared wilful defaulter by any bank or financial institution or other lender.
Note 57
These financial statements have been approved by the Board of Directors of the Company in the meeting held on 24th April, 2026.
Note 58
In the opinion of the Management, all assets other than Fixed Assets and Non- Current investments have a realisable value in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet.
Note 59
On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes on the basis of information available, consistent with the guidance provided by the Institute of Chartered Accountants of India. The incremental impact consisting of gratuity of Rs.80.01 Lakhs and long-term compensated absences of Rs.16.31 Lakhs primarily arises due to change in wage definition has been considered under Employee Benefit Expenses in the Statement of Profit & Loss account for the quarter and period ended 31.03.2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.
Note 60
Previous year's figures have been regrouped to make them comparable with those of current year, wherever necessary.
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