N. Provisions, Contingent Assets and Contingent Liabilities
a) Provision is created when there is a present obligation as a result of past events that probably requires an outflow
of resources and a reliable estimate can be made of the amount of obligation. These are reviewed at each balance
sheet date and adjusted to reflect the current best estimates.
b) Contingent liability is disclosed by way of notes, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
c) Contingent Assets are neither recognized nor disclosed in Financial Statements.
O. Earnings per Share
Basic and Diluted Earnings per share
The Company calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders
and, if presented, profit or loss from continuing operations attributable to those equity holders.
Basic earnings per share is calculated by dividing the net profit or loss attributable to ordinary equity holders (the
numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
The weighted average number of ordinary shares outstanding during the period and for all periods presented shall
be adjusted for events, other than the conversion of potential ordinary shares that have changed the number of
ordinary shares outstanding without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the weighted average number of ordinary shares calculated
for calculating basic earnings per share and adjusted the weighted average number of ordinary shares that would be
issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. Dilutive potential ordinary
shares are deemed to have been converted into ordinary shares at the beginning of the period or, if later, the date of
the issue of the potential ordinary shares
P. Borrowing Costs
The Company capitalizes borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset as part of the cost of that asset. The Company recognizes other borrowing costs as an expense in
the period in which it incurs them. Borrowing costs are interest and other costs that the Company incurs in connection
with the borrowing of funds including exchange differences arising from foreign currency borrowings to the extent
that they are regarded as an adjustment to interest costs.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or
sale.
Q. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision maker. The company has only one segment for its business operations.
R. Ind AS 116 - Leases
At present, the company did not have any assets on lease basis.
Note No. 27¬
In the opinion of the Board of Directors, the current assets, loans & advances are approximately of the value stated in accounts, if
realized in ordinary course of business, unless otherwise stated. The provision for all known liabilities is adequate and not in
excess/short of the amount considered reasonable/necessary.
Note No. 28 - Trade Receivables
The management of the company has performed an assessment of the trade receivables as of 31/03/2024 and believes that the full
outstanding amount of Rs.8,26,40,541/- (P.Y. - 3,85,75,892/-) is fully recoverable. This assessment is based on the following:
(a) Historical Collection Data: The company has a track record of strong collections with no significant defaults in the past. The
aging analysis of the receivables indicates that the majority of the receivables are within the normal credit period granted
by the company.
(b) Credit Risk Assessment: The company has conducted a detailed credit risk assessment of its major customers and found no
indication of financial difficulty or inability to pay. Continuous monitoring and credit checks are in place to ensure timely
collections.
(c) Economic Environment: Despite market conditions, there has been no adverse impact on the financial stability of the
company's customer base that could significantly impact their ability to settle their dues.
(d) No Expected Credit Loss (ECL) Recognition: Considering the factors mentioned above, the management is of the opinion
that no allowance for expected credit losses is required as per the requirements of Ind AS 109, 'Financial Instruments'. The
trade receivables balance is considered to reflect the fair value and is recoverable in full.
Judgement and Assumptions: The management acknowledges that this assessment involves significant judgement, particularly
regarding the estimation of future cash flows from customers. Any material change in assumptions regarding the customers'
creditworthiness may have an impact on future recoverability of the receivables.
Management will continue to regularly review the trade receivables and related credit risks to ensure that the assessment remains
appropriate and that the company's financial statements accurately reflect the recoverability of these amounts.
Note No. 29 - Related Party Transactions
The company has engaged in substantial purchases and sales of goods with related parties during the year. These related party
transactions are detailed below and have been conducted on terms equivalent to those that prevail in arm's length transactions:
(a) The company engages in the purchase and sale of goods with related parties, which are companies/entities with common
ownership or control. The transactions primarily relate to purchase and sale of goods to them.
(b) During the financial year ended 31st, March, 2024, the total value of purchases from related parties amounted to
Rs.15,00,93,742/-, and the total value of sales to related parties amounted to Rs.1,35,53,257/-.
(c) The pricing for these transactions is based on arm's length principles. The company ensures that the terms of these
transactions are comparable to those with third parties in similar circumstances. These terms include pricing, credit
periods, and other conditions which have been determined using benchmarks, market rates, and industry standards.
(d) As of 31st, March, 2024, the amounts payable to related parties for purchases were Rs.1,22,891/-, and the amounts
receivable from related parties for sales were Rs. NIL. These balances are settled in the normal course of business, and no
special payment terms have been provided.
(e) The management has assessed that these transactions do not contain any unusual or abnormal elements that would affect
the financial statements. The arm's length nature of these transactions ensures that the company's financial performance
is not impacted by related party influences.
(f) Disclosures as per Ind AS 24: The company has complied with the disclosure requirements of Ind AS 24, "Related Party
Disclosures." The key management personnel have confirmed that they are not aware of any other transactions with related
parties that would require disclosure under Ind AS 24.
Management continues to review and monitor related party transactions to ensure compliance with applicable accounting standards
and to safeguard the interests of all stakeholders.
Note No. 30 - Segment Information
(a) The Company is engaged in the business of Manufactures of Resins and Chemicals. In terms of Ind AS 108 "operating
segment" the company has one business segment i.e., Resins and Chemicals and all other activities revolve around the said
business.
(b) Geographical Information - The Company is domiciled in India and Operate in India only.
(c) During the year ended 31st March, 2024, revenue from one customer accounted for more than 10% of the entity's total
revenue. The total revenue from this customer amounted to Rs. 2669.39 lacs (PY 5230.26 lacs)and was primarily related
to the sale of Resin & Chemicals. This concentration of revenue represents 50.39% (PY-68.34%) of the total revenue of the
company. There were no other customers with sales exceeding 10% of total revenue during the reporting period.
Note No. 32 - Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount 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.
(a) The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities
and assets and borrowings approximate their carrying amount largely due to the short-term nature of these
instruments. The management considers that the carrying amounts of financial assets and financial liabilities
recognised at nominal cost/amortised cost in the financial statements approximate their fair values.
Investments in mutual funds are measured using market prices at the reporting date.
Fair value hierarchy
The above tables proide the fair value measurement hierarchy of Company's asset and liabilities, grouped into
Level 1 to Level 3 as described below:
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 asset or liability.(i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
(b) Financial Risk Management
Financial Risk Factors
The Company's principle financial liabilities compries of borrowings, trade and other payables. The main
purpose of these financial liabilities is to manage finances for the Company's operations. The Company's
principle financial assets include loans and advances, trade receivables and cash and bank balances that arise
directly from its operation. The Company has exposure to the following risks arising from financial instruments
and the Company's senior management oversees the management of these risks :-
i.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 amounts of financial assets represent the maximum credit risk exposure.
Trade Receivables
The Company has developed guidelines for the management of credit risk from trade receivables. The Company's
exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risks are
managed by the Company through credit approvals, and continuously monitoring the credit worthiness of the
customers to which the Company grants credit terms in the normal course of business.
Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to
determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect
any significant credit losses. Given that the macro economic indicators affecting customers of the Company have
not undergone any substantial change, the Company expects the historical trend of nil credit losses to continue.
Further, management believes that the unimpaired amounts that are past due by more than 30 days are still
collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.
Cash and bank balances
The Company held cash and cash equivalents with credit worthy banks as at the reporting dates. The credit
worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is
considered to be good with low credit risk.
Other financial assets
Other financial assets comprises fixed deposits, interest accrued on fixed deposits. Generally, these fixed deposits
are held with banks with which the Company has also availed borrowings. The credit worthiness of such banks
is evaluated by the management on an ongoing basis and is considered to be good with low credit risk. The
Company does not expect any losses from non-performance by these counter parties.
As per our attached report of even date
For and on Behalf of the Board
Sd/- Sd/-
Sd/- BINOD SHARMA VIKRAM KABRA
R. C. Jhawer [DIN: 00557039) [DIN: 00746232)
Proprietor Managing Director Whole Time Director
Membership No. 017704
For and on behalf of Sd/-
R. C. Jhawer & Co VIBHOR SHARMA
Chartered Accountants (DIN: 03011540)
F.R. No.310068E Whole Time Director
Sd/- Sd/-
KOMAL BHAUWALA PRABHU DAYAL SOMANI
Place : Kolkata (PAN: BJHPB0673B) (PAN: AMCPS4045B)
Date : 30th May, 2023 Company Secretary Chief Financial Officer
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