Carrying amounts of cash and cash equivalents, Loan,trade receivables, and trade payables as at March 31,2026 and 2025, approximate the fair value due to their nature. Carrying amounts of bank deposits, earmarked balances with banks, other financial assets and other financial liabilities which are subsequently measured at amortised cost also approximate the fair value due to their nature in each of the periods presented.The carrying amounts of current borrowings at fixed rate are considered to be close to the fair value. Fair value measurement of lease liabilities is not required.
The fair value of unquoted instruments, is estimated by discounting future cash flows (DCF model) using rates currently available for debt on similar terms, credit risk and remaining maturities.For unquoted equity investments categorized under level 3, cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represent the best estimate of fair value within that range.
B. Measurement of fair values
Ind AS 107, ‘Financial Instrument - Disclosure’ requires classification of the valuation method of financial instruments measured at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). Fair value of derivative financial assets and liabilities are estimated by discounting expected future contractual cash flows using prevailing market interest rate curves. The three levels of the fair-value-hierarchy under Ind AS 107 are described below:
Level 1: The fair value of financial instruments traded in active markets is based on quoted (unadjusted) market prices at the end of the reporting period for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. e.g. unlisted equity securities.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.
C. Financial risk management
The Company is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity and interest rate risks, which may adversely impact the fair value of its financial instruments.The Company has exposure to the following risk arising from the financial instruments:
Ý Credit risk ;
Ý Liquidity risk ; and
Ý Market risk
i. Risk management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company risk management framework. The Board of Directors is responsible for developing and monitoring the Company risk management policies.
The Company’s risk management controls are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management controls and systems are reviewed regularly to reflect changes in market conditions and the 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.
The Company’s principal financial liabilities comprise 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 is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.
ii. Credit risk
Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract,leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
Financial instruments that are subject to credit risk consist of trade receivables, loans, investments, cash and cash equivalents, bank deposits and other financial assets. Bank deposits include an amount of ^.475 Lakhs held with bank as at March 31,2026 (Previous Year ^.1000 Lakhs), having high credit rating which are individually in excess of 10% or more of the Company’s total bank deposits. None of the other financial instruments of the Company result in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure.
Trade and other receivables
Around 46% of the sales are export sales. For major part of the sales, customer credit risk is managed by requiring domestic and export customers to pay advances before transfer of ownership, therefore substantially eliminating the Company’s credit risk in this respect.
Based on prior experience and an assessment of the current economic environment, management believes that no provision is required for credit risk wherever credit is extended to customers.
Management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical payment behavior and analysis of customer credit risk.
Concentration of credit risk
At March 2026, the carrying amount of the Company's most significant customer is ?. 9446.31 Lakhs (Previous Year : ^.8186.85. Lakhs)
Loan to others
The credit worthiness of the counter party is evaluated by the management on an ongoing basis and is considered to be good. The Company did not have any amounts that were past due but not impaired.The Company has no collateral in respect of these loans.
Investment in mutual funds and bonds
The investment in mutual funds, Government bonds are entered into with credit worthy fund houses, Government of
India and financial institution respectively. The credit worthiness of these counter parties are evaluated by the management on an ongoing basis and is considered to be good. The Company does not expect any losses from nonperformance by these counter-parties.
Cash and cash equivalents
Credit risk from balances with banks is managed by the Company's treasury department in accordance with the company's policy. Investment of surplus funds are made in mainly in mutual funds with good returns and within approved credit ratings.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
iii. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.
The Company has obtained fund and non-fund based working capital lines from one bank. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.
As at 31st March, 2026, the Company had working capital of ^.24,831.23 Lakhs, including cash and cash equivalents of ^.830.15 Lakhs and highly marketable current investments of ^.4,485.97 Lakhs.
As at 31st March, 2025, the Company had working capital of ^.19,765.64 Lakhs, including cash and cash equivalents of ^.1973.50 Lakhs and highly marketable current investments of ?. 5,385.75 Lakhs.
Exposure to liquidity risk
The table below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities'
iv. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk. Financial instruments affected by market risks include loans and borrowings,deposits, investments, and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at reporting date. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item and equity is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31,2026 and March 31,2025
a) Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries.
Exposure to currency risk
The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, CNY exchange rates, with all other variables held constant. The impact on the Company profit before tax and equity is due to changes in the fair value of monetary assets and liabilities. Foreign currency exposures recognised by the Company that have not been hedged by a derivative instrument or otherwise are as under:
NOTE NO. 38 Hedge accounting
As part of its risk management strategy,the company endeavors to hedge its net foreign currency exposure of highly forecasted foreign currency transactions. The company uses forward contracts to hedge its currency exposure. Such contracts are designated as cash flow hedges.
The forward contracts are generally denominated in the same currency in which the sales realization is likely to take place.
Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109 depending upon the type of hedge.
NOTE NO.39
I) Related Party Disclosures *
(Where transactions have taken place)
a) Key Management Personnel (KMP)
Ritesh B. Shah (Joint Managing Director), Vivek B. Shah (Joint Managing Director), Darshan Rampariya (Chief Financial Officer), Manan Vadhan (Company Secretary and Compliance Officer) w.e.f. 4th April, 2024.
b) Relatives of Key Management Personnel :
Bharat N. Shah, Bipin N Shah
c) Other Related Parties -(Entities, KMP having significant influence and Others)
S Kant Healthcare Ltd, Sevantilal Kantilal Trust, Eskay Iodine Pvt. Ltd., S.Kant Chemicals Pvt. Ltd. and S K & Others , SK Logistic, Gaurav Satish Shah, Arun L. Todarwal
Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.
NOTE NO.45
Employee Benefit obligations (A) Defined Contribution Plan
The Company has various schemes for long-term benefits such as provident fund and superannuation. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through trustees /appropriate authorities.
(B) Defined Benefit Plan
In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment.Under the gratuity plan,every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn basic salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Further refer note (viii) below.
Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. T rustees adminster the contributions made by the Company to the gratuity scheme.
The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at March 31,2026.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:
The average duration of the defined benefit plan obligation at the end of the reporting period is 37.15 years for on-roll employees (Previous Year: 38.06 years).
Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily basic salary and other components for each day of accumulated leave partially at the year end and partially on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31st March, 2026 based on actuarial valuation using the projected accrued benefit method is '112.11 lakhs (Previous Year : '80.35 lakhs).
(ix) Effective 21st November,2025, The Government of India has consolidated multiple existing labour legislations into a unified framework comprising four Labour Codes collectively referred to as the 'New Labour Codes'. The company has assessed the financial implications of these changes which has resulted in increase in gratuity liability arising out of past service cost and increase in leave liability by '48.31 Lakhs primarily arising due to change in the definition of "wages" for employees.
49.2 The figure of Rs. 27.03 lakhs is as per the orders dated April 10, 2003 of the Assistant Commissioner of Sales Tax (Appeals), Thane. Thereafter, the Company had preferred an appeal before the Maharashtra Sales Tax Tribunal, which has passed its orders on August 27, 2009. However, the Company has not yet received the revised assessment orders giving effect to the above referred Tribunal orders. The Company has filed a Writ Petition before the Honourable High Court of Bombay contesting the Tribunal order.
49.3 The figure of Rs. 107.10 lakhs is as per the order dated February 03, 2025 of Assistant Commissioner of CGST, Palghar. The Company has filed an appeal before the Appellate Authority - GST
49.4 The figure of Rs.133.52 lakhs is as per the orders dated December 25, 2019 and order dated December 24, 2025 of Assessing Officer, National e- Assessment Centre, Delhi for Assessment year 2017-18 & 2020-21. The Company had preferred an appeal before the Commissioner of I ncome-tax (Appeals).
49.5 The Company has imported certain raw materials and chemicals under the Advance Authorisation/License scheme without payment of customs duty subject to fulfilment of specified export obligations. However, the Company has yet to fulfil certain portion of these export obligations within the stipulated validity period. On a forward basis, the Company’s management is confident of fulfilling these export obligations within the stipulated validity period and hence, no provision for the duty payable, in case the export obligation is not fulfilled, has been made in the accounts.
During the financial year 2012-2013, the Company had set up an in-house Research and Development facility at A-514, TTC Industrial Area, Mahape, Navi Mumbai 400701. This facility has commenced research and development work on May 1,2012. The facility has been recognised by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India vide its letter dated December 31, 2012 upto December 31,2015 and vide its letter dated April 1,2015 upto March 31, 2018 and vide its letter dated April 10, 2018 upto March 31,2021 and vide its letter dated July 14, 2021 upto March 31, 2024 and vide letter dated November 07, 2024 upto March 31,2027.
OTHER STATUTORY INFORMATION :
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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.
(vi) The Company has not received any fund 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 :
(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.
(vii) The Company does not have any such 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.
(viii) The Company has not granted Loans or Advances in the nature of loans to promoters, directors and the related parties except for loan to KMP (refer note no. 39)
(ix) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.
(x) The Company does not have any transactions with companies which are struck off.
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended a final dividend of Rs. 2.50 (50%) per equity share of Rs..5/-each.
NOTE NO.57
Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.
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