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Notes to Accounts of Sumitomo Chemical India Ltd.
Mar 31, 2026
l) Provisions and contingencies
The Company creates a provision when there is present obligation as a result of a past event that probably requires
an outflow of resources embodying economic benefits and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax 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 recognised as a finance cost.
Contingent liability is:
(a) a possible obligation arising from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity or
(b) a present obligation that arises from past events but is not recognized because;
- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation or
- the amount of the obligation cannot be measured with sufficient reliability.
The Company does not recognize a contingent liability but discloses the same as per the requirements of Ind AS 37
m) Research and development
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried
forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is
amortised over the period expected future sales from the related project, not exceeding ten years.
n) Cash and cash equivalents
Cash and cash equivalents includes cash in hand, bank balances, term deposits with banks and other short term
highly liquid investments with original maturities within three months or less.
o) Revenue Recognition
i. Sale of goods
Revenue from sale of goods is recognised when control of the products being sold is transferred to the
customers and when there are no longer any unfulfilled obligations. The performance obligations in contracts
are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.
Revenue is measured at transaction price, after deduction of any trade discounts, volume rebates and any
taxes or duties collected on behalf of the government such as goods and services tax, etc. Past trend and
experience is used to estimate the provision for such discounts and rebates. Revenue is only recognised to
the extent that it is highly probable a significant reversal will not occur. An estimate is made of goods that
will be returned and a liability is recognised for this amount using a best estimate based on past trend and
experience.
Return of Goods
The Company uses the expected value method to estimate liability and corresponding adjustment to cost of
sales for the goods that are expected to be returned.
Export Incentives
Export benefits arising from Duty Drawback scheme, Remission of Duties and Taxes on Export Products
(RoDTEP) and other eligible export incentives are recognised on post export basis at the rate at which the
entitlements accrue and is included in the âOther Operating Income'' (Revenue from operation).
Rebates and Discounts
The Company provides discount and rebate schemes, to its customers. Discount and rebate schemes give
rise to variable consideration. To estimate the variable consideration to which it will be entitled, the Company
considers that either the expected value method or the most likely amount method, depending on which of
them better predicts the amount of variable consideration for the particular type of contract.
ii. Other income
a. Interest income is recognised on a time proportion basis taking into account the amount outstanding
and the effective rate of interest.
b. Revenue in respect of insurance / other claims, interest etc., is recognised only when it is reasonably
certain that the ultimate collection will be made.
c. Dividend income is recognised in the statement of profit and loss on the date on which right to receive
the payment is established.
d. Interest u/s 244A of Income Tax Act, 1961 is recognised on realisation.
iii. Sale of services
Revenue from rendering of services is recognised over time considering the time elapsed. The transaction
price of these services is recognised as a contract liability upon receipt of advance from the customer, if any,
and is released on a straight line basis over the period of service.
p) Contract balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
Company performs by transferring goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Contract assets represents right to receive the inventory (on estimated sales returns). Refer accounting policy on
impairment of financial assets in note 2.1(r).
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before
the Company transfers goods or services to the customer, a contract liability is recognised when the payment
is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the
Company performs under the contract.
q) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign
currency exchange forward contracts.
i. Financial assets
Classification
The Company shall classify financial assets as subsequently measured at amortised cost, fair value through
other comprehensive income or fair value through profit or loss on the basis of its business model for
managing the financial assets and the contractual cash flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.
Trade receivables are initially recognised when they are originated. A trade receivable without a significant
financing component is initially measured at the transaction price.
Debt instruments at amortised cost
A âdebt instrument'' is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the statement of profit and loss. The losses arising from impairment are recognised in
the statement of profit and loss. This category generally applies to trade and other receivables.
Financial assets at fair value through other comprehensive income (FVTOCI)
Financial instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). However,
the Company recognizes interest income, dividend income, impairment losses and reversals and foreign
exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative gain or
loss previously recognised in OCI is reclassified from the equity to the statement of profit and loss. At present,
there are no financial assets recognised at FVTOCI.
Financial assets at fair value through profit or loss (FVTPL)
FVTPL is a residual category for financial assets. Any financial assets, which does not meet the criteria for
categorisation as at amortised cost or as FVTOCI, is classified as at FVTPL. Financial assets included within
the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.
Equity investments
Equity investments in subsidiaries are out of scope of Ind AS 109 and hence, the Company accounts for its
investment in subsidiaries at cost.
All other equity investments are measured at fair value. Equity instruments, which are held for trading are
classified as at FVTPL and are measured at fair value with all changes recognised in the statement of profit
and loss.
The Company has not classified any equity instruments at FVTOCI.
Derecognition
The Company derecognises a financial asset when the rights to receive cash flows from the asset have
expired or it transfers the right to receive the contractual cash flow on the financial assets in a transaction in
which substantially all the risk and rewards of ownership of the financial asset are transferred.
ii. Financial liabilities
Classification
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered into by the Company that are not designated
as hedging instruments in hedge relationships as defined by Ind AS 109. Gains or losses on liabilities held for
trading are recognised in the statement profit and loss.
Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the EIR method. Gains and losses are recognised in the statement of profit and loss when the liabilities
are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
and loss.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
Derivatives and hedging activities
The Company enters derivatives like forwards contracts to hedge its foreign currency risks. Derivatives
are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
marked to market at the end of each reporting period with profit/loss being recognised in statement of
profit and loss. Derivative assets/liabilities are classified under "other financial assets/other financial
liabilities". Profits and losses arising from cancellation of contracts are recognised in the statement of
profit and loss.
r) Financial assets impairment and write off
At each reporting date, the Company assesses whether financial assets carried at amortised cost, are credit-
impaired. A financial asset is âcredit-impaired'' when the events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred.
The Company assessed the expected credit losses associated with its assets carried at amortised cost and fair
value through other comprehensive income based on the Company''s past history of recovery, credit worthiness of
the counter party and existing and future market conditions.
For all financial assets other than trade receivables, expected credit losses are measured at an amount equal to
the 12-month expected credit loss (ECL) unless there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL. For trade receivables, the Company has applied
the simplified approach for recognition of impairment allowance as provided in Ind AS 109 which requires the
expected lifetime losses from initial recognition of the receivables.
The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations
of recovering the financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.
s) Fair value measurement
Fair value is the price 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. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
(i) In the principal market for the asset or liability, or
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting year.
t) Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-
use assets representing the right to use the underlying assets.
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets, as follows:
The right-of-use assets are also subject to impairment. Refer accounting policy in note 2.1(f) Impairment of
non-financial assets.
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including in
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments
of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset. The Company''s lease liabilities are included
in interest-bearing borrowings.
Lease liability is measured at amortised cost using the effective interest method. 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.
The Company determines its incremental borrowing rate by obtaining interest rates from various externals
financing sources and makes certain adjustments to reflect the terms of the lease and type of the leased assets.
c) Short-term leases and leases of low-value assets:
The Company applies the short-term lease recognition exemption to its short-term leases of office premises
and storage locations (i.e., those leases that have a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered to be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
u) Dividend
The Company recognises a liability for any dividend declared in the period when it is approved by the shareholders.
As per corporate laws in India, a distribution in the nature of final dividend is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in equity.
v) Exceptional Items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and the same is disclosed in
standalone statement of profit and loss and in the notes forming part of the standalone financial statements.
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An
asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle
- Held primarily for the purpose of trading
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents. The Company has identified twelve months as its operating cycle.
2.2 KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
The preparation of these standalone In AS financial statements in conformity with Ind AS requires use of estimates and
assumptions for some items, which might have an effect on their recognition and measurement in the balance sheet
and statement of profit and loss. The management believes that the estimates used in preparation of these standalone
financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognised in the periods in which the results are known/ materialize.
The areas involving critical estimates are:
i. Property, plant and equipment, intangible assets & right-of-use assets.
Determination of the estimated useful lives of tangible and intangible assets and the assessment as to which
components of the cost may be capitalized. Useful lives of tangible assets are based on the life prescribed in
Schedule II of the Companies Act, 2013. [Refer note 2.1(e)]
ii. Fair value of financial instruments:
Derivatives are carried at fair value. Derivatives includes foreign currency forward contracts, fair value of which, is
determined using the fair value reports provided by respective merchant bankers. [Refer note 2.1(s)]
iii. Impairment of financial assets:
The Company''s management reviews periodically items classified as receivables to assess whether a provision
for impairment should be recorded in the statement of profit and loss. Management estimates the amount and
timing of future cash flows when determining the level of provisions required. Such estimates are necessarily
based on assumptions about several factors involving varying degrees of judgement and uncertainty. Details of
impairment provision on trade receivable are given in note 14.
The Company reviews it''s carrying value of investments annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than it''s carrying amount, the impairment loss is accounted for.
[Refer note 2.1(r)]
iv. Recognition and measurement of provisions and contingencies:
The recognition and measurement of other provisions are based on the assessment of the probability of an
outflow of resources, and on past experience and circumstances known at the reporting date. The actual outflow
of resources at a future date may therefore vary from the figure included in other provisions. [Refer note 2.1(l)]
v. Assessment of lease transactions
Management assesses the contractual terms of the lease agreements to evaluate whether it is a lease as per Ind
AS 116 [Refer note 2.1(t)]
vi. Recognition and measurement of defined benefit obligations
Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life
expectancy. [Refer note 2.1(h)]
vii. Rebates and Discounts
The Company provides rebates and discounts to its dealers and channel partners based on an expectation of
volumes to be achieved and parameters such as exclusivity in marketing the products of the company. This
involves a certain degree of estimation of whether all the parameters to provide discounts have been achieved.
Provision for discount and rebates is based on the Company''s past experience of volumes achieved vis-a-vis
targets and expected volumes to be achieved for the year.[Refer note 2.1(o)]
viii. Provisions
Provisions are recognised 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. The amount recognised as
a provision is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. [Refer note 2.1(l)]
ix. Inventories
Inventories are reviewed on a regular basis and the Company make allowance for excess or obsolete inventories
and write down to net realizable value primarily based on historical trends and management estimates of expected
and future product demand and related pricing.
Inventories are stated at the lower of cost and net realisable value. [Refer note 2.1(g)].
2.3 RECENT ACCOUNTING PRONOUNCEMENTS
The Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.
i. New and amended standards adopted by the Company:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that
it does not have any significant impact in its standalone financials statements
In August 2025, MCA notified the following amendments to:
Ind AS 1, Presentation of standalone financials statements, applicable w.e.f. April 1,2025 - The amendment relates
to classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least
12 months after the reporting date and instead requires that the said right should exist on the reporting date and
have substance. The amendment also introduces guidance on classification of liabilities with covenants. The
Company has no impact of these amendments in its classification criteria of current and non-current liabilities.
Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1,
2025 - The amendment in Ind AS 7 requires to inform users of standalone financials statements of the existence
of supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a
factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its
evaluation has determined that it does not have any significant impact in its standalone financials statements.
Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide
a temporary mandatory relief from deferred tax accounting for top-up tax and require companies to disclose that
they have applied the relief. This relief is immediate and applies retrospectively. The amendments also require
companies to provide new disclosures to compensate for potential loss of information resulting from the relief.
Such disclosures are to be provided for annual reporting periods beginning on or after April 1,2025. The Company
has reviewed the amendment and based on its evaluation has determined that it does not have any significant
impact in its standalone financials statements.
ii. New standards / amendments notified but not yet effective:
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year, the MCA has
issued an amendment for removal of carve-out under Ind AS 1, Presentation of standalone standalone financials
statements relating to classification of liabilities subject to covenants breach which is applicable with effect from
01 April 2026. The Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have significant impact on its standalone standalone financials statements. Further, there is no
such notification which would have been applicable from 01 April 2026.
1. In line with Circular No 04/2015 issued by Ministry of Corporate Affairs dated 10/03/2015, loans given to employees
as per the Group''s policy are not considered for the purposes of disclosure under Section 186(4) of the Companies
Act, 2013.
2. There are no loans or advances in the nature of loans are granted to promoters, Directors, KMPs and their related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:
(a) repayable on demand; or
(b) without specifying any terms or period of repayment
3. Corporate deposits placed with financial institutions yield fixed interest rate.
e) Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to
dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as
declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up
equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other
sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the
Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
B. Nature and purpose of each reserves1. General reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purposes. The
reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance
with the provisions of the Companies Act, 2013.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.
This relates to the remeasurement impact of defined benefit plans and income tax effect of the same.
Revenue from major customers
Domestic
The Company does not have any external customer, with whom revenue from domestic transactions is more than
10% of Company''s total domestic revenue.
Export
Revenue from two Export customers represents '' 2,808.34 Millions (31 March 2025: '' 3,257.16 Millions) of the
total Export revenue.
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 best information available and consistent with the guidance
provided by the Institute of Chartered Accountants of India.
Considering the regulatory-driven and non-recurring nature of this impact, the Company has presented such incremental
impact under exceptional items amounting to '' 151.86 Millions (Gratuity '' 114.97 Millions & Compensated absences
'' 36.89 Millions) in the standalone financial statements for the year ended 31 March 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.
The Company does not have any intention to dispose of its freehold and leasehold land in foreseeable future, therefore,
deferred tax asset on indexation benefit in relation to these assets has not been recognised.
Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive
potential equity shares. There are no dilutive impacts, therefore basic EPS and diluted EPS is same.
The Company''s policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future
development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to
the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability
to continue as a going concern and maximise the shareholder''s value.
The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank
balances and a regular assessment of any debt requirements.
Terms and conditions of transactions with related parties
1. All related party transactions entered during the year were in ordinary course of business and are on arm''s length basis.
These balances are to be settled within agreed period and none of the balances are secured.
2. For the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to amounts
owed by related parties (2024-25: Nil). This assessment is undertaken each financial year through examining the
financial position of the related party and the market in which the related party operates.
3. The above remuneration to key management personnel compensation excludes provision for gratuity and compensated
absences, since these are provided on the basis of an actuarial valuation of the Company''s liability to all its employees.
The Company has lease contracts for its office premises, vehicles and storage locations with lease term between
1 year to 9 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets.
Generally, the Company is restricted from assigning and sub-leasing the leased assets.
The Company also has certain leases of office premises and storage locations with leased terms of 12 months or less.
The Company applies the âshort term lease'' recognition exemption for these leases.
a) The movement in lease liabilities is as follows.
c) (i) The details of carrying amount and movements during the year in right-of-use assets is disclosed in note 5.
(ii) The effective interest rate for lease liabilities is 10%. The maturity is between 2022 to 2031.
(iii) The maturity analysis of lease liabilities are disclosed in note 41b liquidity risk management.
Notes :
i) Abbreviations
FVTPL - Fair value through the profit and loss
FVTOCI - Fair Value through other comprehensive income
ii) The investments does not include equity investment which are carried at cost and hence are not required to be
disclosed as per Ind AS 107 "Financial instruments disclosures"
iii) The management has assessed that the fair value of cash and cash equivalents, other balance with banks, loans,
trade receivables, other financial assets, and other financial liabilities approximate their carrying amounts largely
due to the short term maturities of these instruments.
iv) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials
instruments by valuation techniques.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable;
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
v) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.
The Company enters into derivative financial instruments with various counterparties, principally with banks.
Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market
observable inputs. The model incorporates various inputs including the credit quality of counter parties, foreign
exchange spot and forward rates.
Mutual Funds: The fair values of investments in mutual fund units is based on the net asset value (âNAV'') as stated
by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents
the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such
units from the investors.
Derivative assets and liabilities: The fair value of forward foreign exchange contracts is calculated as the present
value determined using forward exchange rates of respective currencies (Level 2).
vi) There were no transfers between level 1 and 2 during the year.
42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity
risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial
performance.
The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s
risk management framework. The board of directors has established Compliance Committee, which is responsible for
developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of
directors on its activities.
The Company''s risk management policies 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 policies 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial
loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and
investment securities.
Credit risk is managed 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. The
Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected
default rates over the expected life of trade receivables and is adjusted for forward looking estimates.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. The Company has no concentration of credit risk as
the customer base is widely distributed.
Summary of the ageing for trade receivables are as follows.
Expected credit loss assessment for customers as at 31 March 2026:
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be
predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced
credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2026 related to several customers that have defaulted on their payments to the
Company and are not expected to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have
a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and
does not have any significant concentration of exposures to specific industry sectors or specific country risks.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
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.
The Company has an established liquidity risk management framework for managing its short term, medium term
and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises
primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity
risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities
sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a
timely and cost-effective manner.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and
currency rate risk. Financial instruments affected by market risk includes foreign currency receivables/payables,
investments and derivative financial instruments. The Company has international trade operations and is exposed
to a variety of market risks, including currency and interest rate risks.
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 has foreign currency trade payables and receivables and
is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting
appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative
financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the
recent years and may continue to be volatile in the future. However the operating results and financials of
the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure
is generally fully hedged.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest
rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will
fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company does not have any significant exposure to interest rate risks
since its investments are in fixed rate instruments.
Exposure to interest rate risk
The interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the
interest rate profile of the Company''s interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a
change in interest rates at the reporting date would not affect profit or loss
iii) Equity risk
The Company''s investments in listed and non-listed equity securities are susceptible to market price risk arising
from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
The Group operates in only one reportable segment namely Agro-chemicals. This segment covers sale of products
mainly to end consumers which are farmers. This includes agricultural pesticides. Operating Segment disclosures are
consistent with the information provided to and reviewed by management.
A. Geographic information
The Company has considered the export operations as a separately identifiable geographic segment due to
operations in the Japan and other countries, details of which are given below :
B. Information about major customers
Domestic
The Company does not have any domestic customer, with whom revenue from domestic transactions is more than
10% of Company''s total domestic revenue.
Export
Revenue from two Export customers represents '' 2,808.34 Millions (31 March 2025: '' 3,257.16 Millions) of the
total Export revenue.
The Company contributes to the following post-employment plans in India.
(A) Defined contribution plans:
Provident fund is a defined contribution scheme established under a state plan.
Superannuation fund is a defined contribution scheme. The scheme is funded with an insurance company in the
form of a qualifying insurance policy.
Contribution to Employees State Insurance Corporation (ESIC)
Current service cost included under the head - Contribution to provident fund and other funds in note 31 âEmployee
benefits expense'':
Gratuity plan is classified as a defined benefit plan as the Company''s obligation is to provide agreed benefit to plan
members. Actuarial and investment risks are borne by the Company.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for
gratuity was carried out as at 31 March 2026. The present value of the defined benefit obligations and the related
current service cost and past service cost, were measured using the Projected Unit Credit Method.
Gratuity of the Company is funded through investments with an insurance service provider which is managed by
them.
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters
unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously.
The method used does not indicate anything about the likelihood of change in any parameter and the extent
of the change if any.
The expected future cash out-flows in respect of gratuity as at year end is as follows:
(C) Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on
death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31 March
2026 based on actuarial valuation using the projected accrued benefit method is '' 68.47 Millions (31 March 2025:
'' 62.66 Millions). In the coming financial year it is expected to remain in the similar range.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The
Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial
statements.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions
pending with various forums/authorities.
49. In October 2022, the Central Government (âGovernment'') issued a Notification (âNotification'') mandating that
Glyphosate, a broad spectrum weedicide and an important product for the Company, will be used only through
Pest Control Operators. Industry players and associations have filed petitions (âPetitions'') before the Hon''ble Delhi
High Court (âHon''ble Court'') challenging the Notification. In the course of hearings in the matter, the counsel of the
Government has stated that the Notification will not be implemented till the disposal of the Petitions. The Petitions
are under hearing before the Hon''ble Court.
50. On 2 February 2024, the shareholders of Excel Crop Care (Africa) Limited, the Company''s Tanzania based subsidiary,
had approved its voluntary winding up with effect from 31 March 2024. The Company held 99.9% of the equity shares
of Excel Crop Care (Africa) Limited. The proposed winding up is subject to legal / regulatory and other processes and
procedures under the laws in Tanzania. Excel Crop Care (Africa) Limited is an unlisted ânon-material'' subsidiary having
no material financial liability on its balance sheet and a positive net worth. It did not have any significant business
or com
Mar 31, 2025
e) Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
B. Nature and purpose of each reserves1. General reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
This relates to the remeasurement impact of defined benefit plans and income tax effect of the same.
Revenue from major customers Domestic
The Company does not have any external customer, with whom revenue from domestic transactions is more than 10% of Company''s total domestic revenue.
Export
Revenue from two Export customers represents '' 3,257.16 Millions (31 March 2024: '' 2,124.06 Millions) of the total Export revenue.
The performance obligation is satisfied upon delivery of the goods and payment is generally due within 7 to 90 days from delivery. There are no material unsatisfied performance obligation outstanding at the year end.
The performance obligations of the Company are part of contracts that have an original expected duration of less than one year and accordingly, the Company has applied the practical expedient and opted not to disclose the information about it''s remaining performance obligations in accordance with Ind AS 115.
The Company does not have any intention to dispose of its freehold and leasehold land in foreseeable future, therefore, deferred tax asset on indexation benefit in relation to these assets has not been recognised.
Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares. There are no dilutive impacts, therefore basic EPS and diluted EPS is same.
The Company''s policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and maximise the shareholder''s value.
The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank balances and a regular assessment of any debt requirements.
Terms and conditions of transactions with related parties
1. All related party transactions entered during the year were in ordinary course of business and are on arm''s length basis.
2. For the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (2023-24: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
3. The above remuneration to key management personnel compensation excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation of the Company''s liability to all its employees.
The Company has lease contracts for its office premises, vehicles and storage locations with lease term between 1 year to 9 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.
The Company also has certain leases of office premises and storage locations with leased terms of 12 months or less. The Company applies the âshort term lease'' recognition exemption for these leases.
i) Abbreviations
FVTPL - Fair value through the profit and loss
FVTOCI - Fair Value through other comprehensive income
ii) The investments does not include equity investment which are carried at cost and hence are not required to be disclosed as per Ind AS 107 "Financial instruments disclosures"
iii) The management has assessed that the fair value of cash and cash equivalents, other balance with banks, loans, trade receivables, other financial assets, and other financial liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
iv) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
v) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date. The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market
observable inputs. The model incorporates various inputs including the credit quality of counter parties, foreign exchange spot and forward rates.
Mutual Funds: The fair values of investments in mutual fund units is based on the net asset value (âNAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
Derivative assets and liabilities: The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates of respective currencies (Level 2).
vi) There were no transfers between level 1 and 2 during the year.
41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance.
The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established Compliance Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.
The Company''s risk management policies 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 policies 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and investment securities.
Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected default rates over the expected life of trade receivables and is adjusted for forward looking estimates.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company has no concentration of credit risk as the customer base is widely distributed.
Expected credit loss assessment for customers as at 31 March 2025:
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2025 related to several customers that have defaulted on their payments to the Company and are not expected to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
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.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes foreign currency receivables/payables, investments and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
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 has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. However the operating results and financials of the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure is generally fully hedged.
A reasonably possible strengthening (weakening) of the Indian Rupee against US Dollars and EURO would have affected the measurement of financial instruments denominated in US dollars and EURO affected profit and loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any significant exposure to interest rate risks since its investments are in fixed rate instruments.
Exposure to interest rate risk
The interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the interest rate profile of the Company''s interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss
The Company''s investments in listed and non-listed equity securities are susceptible to market price risk arising from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
The Group operates in only one reportable segment namely Agro-chemicals. This segment covers sale of products mainly to end consumers which are farmers. This includes agricultural pesticides. Operating Segment disclosures are consistent with the information provided to and reviewed by management.
B. Information about major customers Domestic
The Company does not have any domestic customer, with whom revenue from domestic transactions is more than 10% of Company''s total domestic revenue.
Export
Revenue from four Export customers represents '' 3,529.33 Millions (31 March 2024: '' 3020.26 Millions) of the total Export revenue.
The Company contributes to the following post-employment plans in India.
(A) Defined contribution plans:
Provident fund is a defined contribution scheme established under a state plan.
Superannuation fund is a defined contribution scheme. The scheme is funded with an insurance company in the form of a qualifying insurance policy.
Contribution to Employees State Insurance Corporation (ESIC)
Gratuity plan is classified as a defined benefit plan as the Company''s obligation is to provide agreed benefit to plan members. Actuarial and investment risks are borne by the Company.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
Gratuity of the Company is funded through investments with an insurance service provider which is managed by them.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously.
The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.
The average duration of the defined benefit plan obligation at the end of the reporting year is 10.14 years (31 March 2024: 9.84 years).
The contribution expected to be made by the Company during the financial year 2025-26 is '' 64.50 Millions.
(C) Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31 March 2025 based on actuarial valuation using the projected accrued benefit method is '' 62.66 Millions (31 March 2024: '' 68.56 Millions). In the coming financial year it is expected to remain in the similar range.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
48. In October 2022, the Central Government (âGovernment'') issued a Notification (âNotification'') mandating that Glyphosate, a broad spectrum weedicide and an important product for the Company, will be used only through Pest Control Operators. Industry players and associations have filed petitions (âPetitions'') before the Hon''ble Delhi High Court (âHon''ble Court'') challenging the Notification. In the course of hearings in the matter, the counsel of the Government has stated that the Notification will not be implemented till the disposal of the Petitions. The Petitions are under hearing before the Hon''ble Court.
49. On 15 December 2023, the Company had acquired 85% of the Equity Shares (on fully diluted basis) of Barrix Agro Sciences Private Limited (âBarrix''), Bengaluru based company engaged in R&D innovation, manufacturing and marketing of Integrated Pest Management (âIPM'') and (Integrated Plant Nutrition Management (âIPNM'') products especially pheromone traps and chromatic sheets for agricultural pest management, by way of acquisition of 26,061 equity
shares from the then shareholders and infusion of equity capital through subscription of 8,956 new equity shares into Barrix, for a total consideration of '' 782.01 Millions. The acquisition was in alignment of the Company''s strategy to build a more sustainable portfolio of green chemistries and offer IPM and IPNM products and solutions to farmers.
50. On 2 February 2024, the shareholders of Excel Crop Care (Africa) Limited, the Company''s Tanzania based subsidiary, had approved its voluntary winding up with effect from 31 March 2024. The Company held 99.9% of the equity shares of Excel Crop Care (Africa) Limited. The proposed winding up is subject to legal / regulatory and other processes and procedures under the laws in Tanzania. Excel Crop Care (Africa) Limited is an unlisted ânon-material'' subsidiary having no material financial liability on its balance sheet and a positive net worth. It did not have any significant business or commercial activities and was incurring losses for the past few years. The proposed winding up of Excel Crop Care (Africa) Limited is not likely to materially impact the business, commercial activities or financial position of the Company.
i) Earnings available for debt service - Profit before tax interest expenses including interest expense on lease payments depreciation and amortisation expenses
ii) Debt service - Interest expenses including interest expense on lease payments repayment of lease liabilities.
iii) Net worth includes share capital and other equity
iv) Expenses includes cost of goods sold and other expenses excluding expected credit loss allowance, CSR, donations, insurance, directors sitting fees, PPE written off, exchange differences (net) and bank charges
v) Since there is no borrowing, disclosure of Debt equity ratio has not been disclosed.
52. 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 transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 persons or entities, 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 complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) Rules, 2017.
53. DERIVATIVE CONTRACTS
The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and there are no long-term contracts for which there are any material foreseeable losses. The Company has ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on derivative contracts has been made in the books of account.
54. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
There are no significant events after the reporting period except as disclosed in note 20(f), that require adjustments or disclosures in the standalone financial statements as on the balance sheet date.
55. DISCLOSURE AS PER REGULATION 34(3) READ WITH SCHEDULE 5 OF LISTING REGULATIONS WITH THE STOCK EXCHANGES AND SECTION 186 OF THE COMPANIES ACT, 2013
The Company has not made any investment, provided any loans or advances in the nature of loans, given any guarantee or security covered under Section 186 and accordingly, the disclosure requirements do not apply to the Company.
56. Previous year''s financial statements were audited by a firm of Chartered Accountants other than B S R & Co. LLP.
Mar 31, 2024
a) There are no outstanding trade receivables which resulted into significant increase in credit risk apart from receivables which are impaired and provided. Refer note 41 for information credit risk, market risk of trade receivables and movement of allowance for expected credit loss during the year.
b) No trade or other receivable are due from directors or other officers of the the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member. For receivables from related parties, refer note 38.
c) Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
g) There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.
h) There are no disputed receivables, hence the same is not disclosed in the ageing schedule.
a) For the purpose of the statement of cash flows, cash and cash equivalents comprises of all the above enlisted items.
b) The Company has total fund and non fund based undrawn borrowing facilities of '' 7,010 Millions (31 March 2023 : '' 7,010 Millions). Sanctioned facilities are unsecured credit arrangements of '' 7,000 Millions and secured arrangements of '' 10 Millions.
e) Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
B. Nature and purpose of each reserves1. General reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
This relates to the remeasurement impact of defined benefit plans and income tax effect of the same.
The performance obligation is satisfied upon delivery of the goods and payment is generally due within 7 to 90 days from delivery. There are no material unsatisfied performance obligation outstanding at the year end.
The performance obligations of the Company are part of contracts that have an original expected duration of less than one year and accordingly, the Company has applied the practical expedient and opted not to disclose the information about it''s remaining performance obligations in accordance with Ind AS 115.
The Company does not have any intention to dispose of its freehold and leasehold land in foreseeable future, therefore, deferred tax asset on indexation benefit in relation to these assets has not been recognised.
Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares. There are no dilutive impacts, therefore basic EPS and diluted EPS is same.
The Company''s policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and maximise the shareholder''s value.
The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank balances and a regular assessment of any debt requirements.
Terms and conditions of transactions with related parties
1. All related party transactions entered during the year were in ordinary course of the business and are on arm''s length basis.
2. For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (2022-23: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
3. The above remuneration to key management personnel compensation excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation of the Company''s liability to all its employees.
The Company has lease contracts for its office premises, vehicles and storage locations with lease term between 1 year to 9 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.
The Company also has certain leases of office premises and storage locations with leased terms of 12 months or less. The Company applies the âshort term lease'' recognition exemption for these leases.
c) (i) The details of carrying amount and movements during the year in right-of-use assets is disclosed in note 5.
(ii) The effective interest rate for lease liabilities is 10%. The maturity is between 2022 to 2031.
(iii) The maturity analysis of lease liabilities are disclosed in note 41b liquidity risk management.
i) Abbreviations
FVTPL - Fair value through the profit and loss
FVTOCI - Fair Value through other comprehensive income
ii) The investments does not include equity investment which are carried at cost and hence are not required to be disclosed as per Ind AS 107 "Financial instruments disclosures"
iii) The management has assessed that the fair value of cash and cash equivalents, other balance with banks, loans, trade receivables, other financial assets, lease liabilities, trade payables and other financial liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
iv) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques.
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
v) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date. The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The model incorporates various inputs including the credit quality of counter parties, foreign exchange spot and forward rates.
vi) There were no transfers between level 1 and 2 during the year.
n FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance.
The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established Compliance Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities
The Company''s risk management policies 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 policies 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and investment securities.
Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected default rates over the expected life of trade receivables and is adjusted for forward looking estimates.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company has no concentration of credit risk as the customer base is widely distributed.
Expected credit loss assessment for customers as at 31 March 2024:
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2024 related to several customers that have defaulted on their payments to the Company and are not expected to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired
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.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes foreign currency receivables/payables, investments and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
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 has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. However the operating results and financials of the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure is generally fully hedged.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any significant exposure to interest rate risks since its investments are in fixed rate instruments.
Exposure to interest rate risk
The interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the interest rate profile of the Company''s interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss
iii) Equity risk
The Company''s investments in listed and non-listed equity securities are susceptible to market price risk arising from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
The Company does not have any reportable segment as per the limits prescribed in the Indian Accounting Standard 108 âOperating Segments''.
A Geographic information
The Company has considered the export operations as a separately identifiable geographic segment due to operations in the Japan and other countries, details of which are given below :
The Company contributes to the following post-employment plans in India.
(A) Defined contribution plans:
Provident fund is a defined contribution scheme established under a state plan.
Superannuation fund is a defined contribution scheme. The scheme is funded with an insurance company in the form of a qualifying insurance policy.
Contribution to Employees State Insurance Corporation (ESIC)
Current service cost included under the head - Contribution to provident fund and other funds in note 31 âEmployee benefits expense'':
Gratuity plan is classified as a defined benefit plan as the Company''s obligation is to provide agreed benefit to plan members. Actuarial and investment risks are borne by the Company.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
The average duration of the defined benefit plan obligation at the end of the reporting year is 9.84 years (31 March 2023: 9.88 years).
The contribution expected to be made by the Company during the financial year 2024-25 is '' 52.77 Millions.
(C) Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31 March 2024 based on actuarial valuation using the projected accrued benefit method is '' 68.56 Millions. (31 March 2023: '' 37.15 Millions) In the coming financial year it is expected to remain in the similar range.
|
44 CONTINGENT LIABILITIES AND COMMITMENTS A) Contingent liabilities |
||
|
Particulars |
As at 31 March 2024 |
As at 31 March 2023 |
|
a. In respect of tax matters Demand raised by authorities against which the Company has filed an appeal |
||
|
i) Income tax |
114.94 |
118.62 |
|
ii) Service tax |
9.05 |
9.24 |
|
iii) Customs duty |
50.25 |
28.68 |
|
iv) VAT / Sales tax |
0.50 |
0.50 |
|
v) Goods and service tax |
49.82 |
21.97 |
|
b. In respect of other matters |
||
|
i) Claims against the Company, by consumers, not acknowledged as debts Total |
155.46 |
150.77 |
|
380.02 |
329.78 |
|
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.
I t is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
|
B) Capital commitments |
||
|
As at |
As at |
|
|
31 March 2024 |
31 March 2023 |
|
|
Estimated value of contracts in capital account remaining to be executed and not provided for (net of capital advances) |
38.24 |
151.37 |
48 In October 2022, the Central Government (âGovernment'') issued a Notification (âNotification'') mandating that Glyphosate, a broad spectrum weedicide and an important product for the Company, will be used only through Pest Control Operators. Industry players and associations have filed petitions (âPetitions'') before the Hon''ble Delhi High Court (âHon''ble Court'') challenging the Notification. In the course of hearings in the matter, the counsel of the Government has stated that the Notification will not be implemented till the disposal of the Petitions. The Petitions are under hearing before the Hon''ble Court.
49 On 15 December 2023, the Company acquired 85% of the Equity Shares (on fully diluted basis) of Barrix Agro Sciences Private Limited (âBarrix''), Bengaluru based company engaged in R&D innovation, manufacturing and marketing of Integrated Pest Management (âIPM'') and (Integrated Plant Nutrition Management (âIPNM'') products especially pheromone traps and chromatic sheets for agricultural pest management, by way of acquisition of 26,061 equity shares from the then shareholders and infusion of equity capital through subscription of 8,956 new equity shares into Barrix, for a total consideration of '' 782.01 Millions. The acquisition is in alignment of the Company''s strategy to build a more sustainable portfolio of green chemistries and offer IPM and IPNM products and solutions to farmers.
50 On 2 February 2024, the shareholders of Excel Crop Care (Africa) Limited, the Company''s Tanzania based subsidiary, have approved its voluntary winding up with effect from 31 March 2024. The Company holds 99.9% of the equity shares of Excel Crop Care (Africa) Limited. The proposed winding up is subject to legal / regulatory and other processes and procedures under the laws in Tanzania. Excel Crop Care (Africa) Limited is an unlisted ânon-material'' subsidiary having no material financial liability on its balance sheet and a positive net worth. It did not have any significant business or commercial activities and was incurring losses for the past few years. The proposed winding up of Excel Crop Care (Africa) Limited is not likely to materially impact the business, commercial activities or financial position of the Company.
51 The Company has used accounting software (SAP S4 Hana) for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled for certain changes made using privileged/ administrative access rights to the application and the underlying database. Further there was no instance of audit trail feature being tampered, with respect to the accounting software where audit trail has been enabled.
Note: Reason for variance has been given for those ratios whereby variation is more than 25% ( /-)
i) Earnings available for debt service - Profit before tax interest expenses including interest expense on lease payments depreciation and amortisation expenses
ii) Debt service - Interest expenses including interest expense on lease payments repayment of lease liabilities.
iii) Net worth includes share capital and other equity
iv) Expenses includes cost of goods sold and other expenses excluding expected credit loss allowance, CSR, donations, insurance, directors sitting fees, PPE written off, exchange differences (net) and bank charges
v) Since there is no borrowing, disclosure of Debt equity ratio has not been disclosed.
53 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 transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 persons or entities, 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 complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) rules, 2017.
54 STANDARDS NOTIFIED BUT NOT YET EFFECTIVE
There are no new standards that are notified, but not yet effective, upto the date of issuance of the standalone Ind AS financials statements.
55 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
There are no significant events after the reporting period except as disclosed in note 20(f), that require adjustments or disclosures in the standalone Ind AS financial statements as on the balance sheet date.
56. The figures for the previous year have been regrouped/reclassified wherever considered necessary.
Mar 31, 2023
Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
B. Nature and purpose of each reserves1. General reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
This relates to the remeasurement impact of defined benefit plans and income tax effect of the same.
The performance obligation is satisfied upon delivery of the goods and payment is generally due within 7 to 90 days from delivery. There are no material unsatisfied performance obligation outstanding at the year end.
The performance obligations of the Company are part of contracts that have an original expected duration of less than one year and accordingly, the Company has applied the practical expedient and opted not to disclose the information about it''s remaining performance obligations in accordance with Ind AS 115.
The Company does not have any intention to dispose of its freehold and leasehold land in foreseeable future, therefore, deferred tax asset on indexation benefit in relation to these assets has not been recognised.
The Company does not have any tax losses carried forward as at 31 March 2023 and 31 March 2022.
Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares. There are no dilutive impacts, therefore basic EPS and diluted EPS is same.
The Company''s policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and maximise the shareholder''s value. The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank balances and a regular assessment of any debt requirements.
(*) The previous year figures includes amount related to Excel Crop Care Gratuity Trust, which got merged into Sumitomo Chemical India Gratuity Trust
(**) The previous year figures includes amount related to Sumitomo Chemical Do Brasil Representacoes Limited, which got merged with Sumitomo Chemical Brasil Industria Quimica S A
Terms and conditions of transactions with related parties
All related party transactions entered during the year were in ordinary course of the business and are on arm''s length basis. For the year ended 31 March 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (2021-22: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
The above remuneration to key management personnel compensation excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation of the Company''s liability to all its employees.
The Company has lease contracts for its office premises and storage locations with lease term between 1 year to 9 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.
The Company also has certain leases of office premises and storage locations with leased terms of 12 months or less. The Company applies the ''short term lease'' recognition exemption for these leases.
i) Abbreviations
FVTPL - Fair value through the profit and loss
FVTOCI - Fair Value through other comprehensive income
ii) The investments does not include equity investment which are carried at cost and hence are not required to be disclosed as per Ind AS 107 "Financial instruments disclosures
iii) The management has assessed that the fair value of cash and cash equivalents, other balance with banks, loans, trade receivables, other financial assets, lease liabilities, trade payables and other financial liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
iv) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques. Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable;
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
v) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.
The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The model incorporates various inputs including the credit quality of counter parties, foreign exchange spot and forward rates.
vi) There were no transfers between level 1 and 2 during the year.
41 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimise the potential impact of unpredictability of the financial markets on its financial performance.
The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established Compliance Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities
The Company''s risk management policies 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 policies 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and investment securities.
Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected default rates over the expected life of trade receivables and is adjusted for forward looking estimates.
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company has no concentration of credit risk as the customer base is widely distributed.
Expected credit loss assessment for customers as at 31 March 2023:
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2023 related to several customers that have defaulted on their payments to the Company and are not expected to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from nonperformance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks. Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired
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.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes foreign currency receivables/ payables, investments and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
i) Currency risk
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 has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. However the operating results and financials of the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure is generally fully hedged.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any significant exposure to interest rate risks since its investments are in fixed rate instruments.
Exposure to interest rate risk
The interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the interest rate profile of the Company''s interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss
iii) Equity risk
The Company''s investments in listed and non-listed equity securities are susceptible to market price risk arising from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
Till 31 March 2022, the Company had two primary reportable segments namely Agro Chemicals and Others (environmental health division and animal nutrition division) and accordingly segment disclosure was made by the Company. Currently, percentage of revenue, results and combined asset of ''Other Segment'' to the total is much less than quantitative threshold limit prescribed in the Indian Accounting Standard 108 ''Operating Segments''. Further, considering expected future growth of products in ''Other Segment'' and reporting structure
of the Company, the management has decided not to consider ''Other Segment'' as reportable segment. Accordingly, there is no separate disclosure for segment
A Geographic information
Further, the Company has considered the export operations as a separately identifiable geographic segment due to operations in the Japan and other countries. The Company has identified secondary segments based on geographic locations and has reported India and outside India as geographic segments as below:
B. Information about major customers
The Company does not have any customer, with whom revenue from transactions is more than 10% of Company''s total revenue.
The Company contributes to the following post-employment plans in India.
(A) Defined contribution plans:
Provident fund is a defined contribution scheme established under a state plan.
Superannuation fund is a defined contribution scheme. The scheme is funded with an insurance company in the form of a qualifying insurance policy.
Contribution to Employees State Insurance Corporation (ESIC)
Gratuity plan is classified as a defined benefit plan as the Company''s obligation is to provide agreed benefit to plan members. Actuarial and investment risks are borne by the Company.
Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters.
Hence, the results may vary if two or more variables are changed simultaneously.
The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.
The average duration of the defined benefit plan obligation at the end of the reporting year is 9.88 years (31 March 2022: 12.85 years).
The contribution expected to be made by the Company during the financial year 2022-23 is '' 14.63 Millions.
(C) Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The charge towards compensated absences for the
year ended 31 March 2023 based on actuarial valuation using the projected accrued benefit method is '' 37.15 Millions. (31 March 2022: '' 30.79 Millions) In the coming financial year it is expected to remain in the similar range.
|
44 CONTINGENT LIABILITIES AND COMMITMENTS A) Contingent liabilities |
||
|
Particulars |
As at 31 March 2023 |
As at 31 March 2022 |
|
a. In respect of tax matters |
||
|
Demand raised by authorities against which the Company has filed an appeal i) Income tax |
||
|
118.62 |
67.86 |
|
|
ii) Excise duty |
- |
0.73 |
|
iii) Service tax |
9.24 |
15.67 |
|
iv) Customs duty |
28.68 |
2.30 |
|
v) VAT / Sales tax |
0.50 |
3.10 |
|
vi) Goods and service tax |
21.97 |
0.62 |
|
b. In respect of other matters |
||
|
i) Claims against the Company not acknowledged as debts |
150.77 |
171.19 |
|
Total |
329.78 |
261.47 |
The Company''s pending litigations comprise of claims against the Company primarily by the consumers and proceedings pending with tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
|
B) Capital commitments |
||
|
As at |
As at |
|
|
31 March 2023 |
31 March 2022 |
|
|
Estimated value of contracts in capital account remaining to be executed and not provided for (net of capital advances) |
151.37 |
124.15 |
Note : Reason for variance has been given for those
ratios whereby variation is more than 25% ( /-)
i) Earnings available for debt service - Profit before tax interest expenses including interest expense on lease payments depreciation and amortisation expenses
ii) Debt service - Interest expenses including interest expense on lease payments repayment of lease liabilities.
iii) Net worth includes share capital and other equity
iv) Expenses includes cost of goods sold and other expenses excluding expected credit loss allowance, CSR, donations, insurance, directors sitting fees, PPE written off, exchange differences (net) and bank charges
v) Since there is no borrowing, disclosure of Debt equity ratio has not been disclosed.
49 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 transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 persons or entities, 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 complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) rules, 2017.
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 31 March 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 01 April 2023, as below:
Ind AS 103 - Common control Business Combination:
The amendments modify the disclosure requirement for business combination under common control in the first financial statement following the business combination. It requires to disclose the date on which the transferee obtains control of the transferor is required to be disclosed.
Ind AS 1 - Disclosure of material accounting policies:
The amendments related to shifting of disclosure of erstwhile "significant accounting policies" to "material accounting policies" in the notes to the financial statements requiring companies to reframe their accounting policies to make them more "entity specific". This amendment aligns with the "material" concept already required under International Financial Reporting Standards (IFRS). The Company does not expect this amendment to have any significant impact in its financial statements.
Ind AS 8 - Definition of accounting estimates:
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a "change in accounting estimates" has been replaced with a definition of "accounting estimates." Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty." Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.
The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12. At the date of transition to Ind ASs, a firsttime adopter shall recognise a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Similarly, a deferred tax liability for all deductible and taxable temporary differences associated with:
a) right-of-use assets and lease liabilities
b) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset. Therefore, if a company has not yet recognised deferred tax on right-of-use assets and lease liabilities or has recognised deferred tax on net basis, the same need to recognise on gross basis based on the carrying amount of right-of-use assets and lease liabilities.
51 GOVERNMENT NOTIFICATION ON USE OF GLYPHOSATE
In October 2022, the Central Government ("Government") issued a Notification ("Notification") mandating that Glyphosate, a broad spectrum weedicide and an important product for the Company,
will be used only through Pest Control Operators. Industry players and associations filed petitions before the Hon''ble Delhi High Court ("Hon''ble Court") challenging the Notification. At the hearings of the petitions held before the Hon''ble Court, the counsels of the Government have stated that the Government will look into the difficulties being faced by the farmers, revisit the matter and take a conscious decision which will be communicated to the Hon''ble Court. The Government has also agreed not to implement the Notification for time being. The next date of hearing in the matter is fixed for 19 July 2023.
During the year, there was a fire accident in one of the multi product plant of the Company, producing two products. The plant was not operational at the time of accident and therefore the accident has no material financial impact. The Company has adequate insurance coverage for the assets on reinstatement basis including loss of profit coverage and insurance coverage is sufficient to cover the losses due to damages.
In the meantime, the Company has made alternate arrangements to ensure continued production and supply of the products. The overall impact on production and financials is not likely to be material and, in any case, the insurance policy also contains ''loss of profit'' clause for such losses.
53 EVENTS AFTER THE REPORTING PERIOD
There are no significant events after the reporting period except as disclosed in note 20(f), that require adjustments or disclosures in the standalone Ind AS financial statements as on the balance sheet date.
54 The figures for the previous year have been regrouped/ reclassified wherever considered necessary.
Mar 31, 2022
Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Companyâs residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
B Nature and purpose of each reserves1. General Reserve
The general reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
The Company does not have any intention to dispose of its freehold and leasehold land in foreseeable future, therefore, deferred tax asset on indexation benefit in relation to these assets has not been recognised.
The Company does not have any tax losses carried forward as at 31 March 2022 and 31 March 2021.
Note-36 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares. There are no dilutive impacts, therefore basic EPS and diluted EPS is same.
The Companyâs policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and maximise the shareholderâs value.
The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank balances and a regular assessment of any debt requirements.
All related party transactions entered during the year were in ordinary course of the business and are on armâs length basis.
For the year ended 31 March 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (202021: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
The above remuneration to key management personnel compensation excludes provision for gratuity and compensated absences, since these are provided on the basis of an actuarial valuation of the Companyâs liability to all its employees.
The Company has lease contracts for its office premises and storage locations with lease term between 1 year to 9 years. The Companyâs obligations under its leases are secured by the lessorâs title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.
The Company also has certain leases of office premises and storage locations with leased terms of 12 months or less. The Company applies the âshort term leaseâ recognition exemption for these leases.
ii) The investments does not include equity investment which are carried at cost and hence are not required to be disclosed as per Ind AS 107 âFinancial instruments disclosures.
iii) The management has assessed that the fair value of cash and cash equivalents, other balance with banks, loans, trade receivables, other financial
assets, lease liabilities, trade payables and other financial liabilities approximate their carrying amounts largely due to the short term maturities of
these instruments.
iv) The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques.
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
v) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
The fair value of quoted equity investment and mutual funds are based on price quotations at the reporting date.
The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The model incorporates various inputs including the credit quality of counter parties, foreign exchange spot and forward rates.
vi) There were no transfers between level 1 and 2 during the year.
Note-41 Financial risk management objectives and policies
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance.
The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The board of directors has established Compliance Committee, which is responsible for developing and monitoring the Companyâs risk management policies. The committee reports regularly to the board of directors on its activities.
The Companyâs risk management policies 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 policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and investment securities.
Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected default rates over the expected life of trade receivables and is adjusted for forward looking estimates.
The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company has no concentration of credit risk as the customer base is widely distributed.
Expected credit loss assessment for customers as at 31 March 2022:
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2022 related to several customers that have defaulted on their payments to the Company and are not expected to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
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 Companyâs 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 Companyâs reputation.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Companyâs exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes foreign currency receivables/payables, investments and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
i) Currency risk
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 has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. However the operating results and financials of the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure is generally fully hedged.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any exposure to interest rate risks since its investments are all in fixed rate instruments.
Exposure to interest rate risk
The interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the interest rate profile of the Companyâs interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
The Companyâs investments in listed and non-listed equity securities are susceptible to market price risk arising from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
The Company has disclosed segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of paragraph 3 of Ind AS 108 âOperating Segmentsâ, no disclosures related to segments are presented in these standalone Ind AS financial statements.
The Company contributes to the following post-employment plans in India.
(A) Defined contribution plans:
Provident fund is a defined contribution scheme established under a state plan.
Superannuation fund is a defined contribution scheme. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Contribution to Employees State Insurance Corporation (ESIC)
(C) Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31 March 2022 based on actuarial valuation using the projected accrued benefit method is '' 30.79 millions. (31 March 2021: '' 41.29 millions). In the coming financial year it is expected to remain in the similar range.
The Companyâs pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
i) Earnings available for debt service - Profit before tax interest expenses including interest expense on lease payments depreciation and amortisation expenses
ii) Debt service - Interest expenses including interest expense on lease payments repayment of lease liabilities.
iii) Net worth includes share capital and other equity
iv) Expenses includes cost of goods sold and other expenses excluding expected credit loss allowance, CSR, donations, insurance, directors sitting fees, PPE written off, exchange differences (net) and bank charges
Note-49 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 transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other persons or entities, 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 persons or entities, 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 complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (restriction on number of layers) rules, 2017.
Note-50 Events after the reporting period
There are no significant events after the reporting period except as disclosed in note 20(f), that require adjustments or disclosures in the standalone Ind AS financial statements as on the balance sheet date.
Note-51 The figures for the previous year have been regrouped/reclassified wherever considered necessary.
Mar 31, 2021
Terms/rights attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Companyâs residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
The Authorized Share Capital of '' 60 million of ECCL has been consolidated with the Authorized Share Capital of the Company and the Authorized Share Capital of the Company stands increased to '' 5,000 million. (refer note 46).
Nature and purpose of each reserves1. General Reserve
The General Reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.
The amount received in excess of face value of the equity shares is recognised in Securities Premium. The Securities Premium is utilised in accordance with the provisions of the Companies Act, 2013.
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.
The Companyâs policy is to maintain a strong capital base so as to maintain creditor and market confidence and to sustain future development of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
For the purpose of the Companyâs capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern.
The Company has adequate cash and bank balances. The Company monitors its capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements.
At inception of contract, the Company assesses whether the 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. At inception or on reassessment of a contract that contains a lease component, the Company allocates consideration in the contract to each lease component on the basis of their relative standalone price.
i) Right-of-Use Assets
The Company recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost less any accumulated depreciation and impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and estimate of costs to dismantle. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets i.e. 2 to 5 years, as follows:
Warehouses: âPut the lifeâOn the basis of the tenure of the lease agreement Vehicles: âPut the lifeâOn the basis of the tenure of the lease agreement
The Company presents right-of-use assets that do not meet the definition of investment property in âProperty, plant and equipmentâ.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company generally uses its incremental borrowing rate at the lease commencement date if the discount rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount is remeasured when there is a change in future lease payments arising from a change in index or rate. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.
The Company presents lease liabilities in âFinancial Liabilitiesâ in the Balance Sheet.
iii) Short term leases and leases of low value of assets
The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.
C. Financial risk management objectives and policies
The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance.
The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The board of directors has established Compliance Committee, which is responsible for developing and monitoring the Companyâs risk management policies. The committee reports regularly to the board of directors on its activities.
The Companyâs risk management policies 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 policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs 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.
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its operating activities (trade receivables) and investment securities.
Credit risk is managed 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. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company
has no concentration of credit risk as the customer base is widely distributed
The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.
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 minimal credit losses to continue.
The impairment loss at 31 March 2021 related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.
The Company limits its exposure to credit risk by investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
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 Companyâs 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 Companyâs reputation.
The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Companyâs exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities sanctioned with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, price risk and currency rate risk. Financial instruments affected by market risk includes borrowings, foreign currency receivables/payables, investments and derivative financial instruments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.
i) Currency risk
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 has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and hedging exposures using derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. However the operating results and financials of the Company may not be impacted due to volatility of the rupee against foreign currencies as the exposure is generally fully hedged.
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any exposure to interest rate risks since its investments are all in fixed rate instruments.
Exposure to interest rate risk
Companyâs interest rate risk arises primarily from borrowings. Since there are no borrowings in the current year, the interest rate profile of the Companyâs interest-bearing financial instruments is '' Nil.
Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
The Companyâs investments in listed and non-listed equity securities are susceptible to market price risk arising from uncertainties in the financial market. The investment in listed and unlisted equity securities are not significant.
The Company has disclosed segment information in the consolidated financial statements which are presented in the same financial report. Accordingly, in terms of Paragraph 3 of Ind AS 108 âOperating Segmentsâ, no disclosures related to segments are presented in these interim standalone financial statements.
Gratuity Plan is classified as a defined benefit plan as the Companyâs obligation is to provide agreed benefit to plan members. Actuarial and investment risks are borne by the Company.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2021. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
The Companyâs pending litigations comprise of claims against the Company primarily by the customers and proceedings pending with tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on the financial statements. Future cash outflows/uncertainties, if any, in respect of above are determinable only on receipt of judgments/decisions pending with various forums/authorities.
It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.
Note-46 Merger of Excel Crop Care Limited (ECCL) with the Company
On 1 August 2018, the Board had approved a Scheme of Amalgamation (âSchemeâ) for amalgamation of ECCL with the Company in accordance with the provisions of Sections 230 - 232 read with other relevant provisions of the Companies Act, 2013.
The Honâble National Company Law Tribunal, Mumbai Bench (âHonâble NCLTâ) approved and sanctioned the Scheme by its Order dated 27 June 2019. Certified copy of the Order of the Honâble NCLT was filed with the Registrar of Companies, Maharashtra, on 31 August 2019 and accordingly the Scheme became effective from the said date (âEffective Dateâ).
As provided for in the Scheme, the Authorized Share Capital of '' 60 million of ECCL has been consolidated with the Authorized Share Capital of the Company and the Authorized Share Capital of the Company stands increased to '' 5,000 million.
Consequent to the Scheme becoming effective, the entire business and the undertaking of ECCL (together with all the estate, properties, assets, rights, claims, title and authorities, benefits, liabilities and interest therein and subject to existing charges thereon in favour of banks and financial institutions) stand transferred to and vested in the Company. The Appointed Date under the Scheme is 1 April 2018. Accordingly, accounting impact of the amalgamation was given in the financial statements for the year ended 31 March 2019.
Pursuant to the Scheme, 21,99,448 Shares of ECCL held by the Company (representing about 19.98% of its share capital) stand cancelled. On 7 October 2019, the Board of Directors of the Company issued and allotted to the other shareholders of ECCL, its shares in the ratio of 51 (fifty one) equity shares of '' 10 each fully paid up of the Company for every 2 (two) equity shares of '' 5 each fully paid up of ECCL based on the shareholding as on 31 August 2019 (the Record Date).
Note-47 Changes in Ind AS and related pronouncements effective at a future date
Amendment in Schedule III to Companies Act, 2013:
On 24 March 2021, the Ministry of Corporate Affairs (âMCAâ) through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from 1 April 2021. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with the Companies (Indian Accounting Standards) Rules 2015 (as amended) are:
Balance Sheet:
⢠Lease liabilities should be separately disclosed under the head âfinancial liabilitiesâ, duly distinguished as current or non-current.
⢠Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated
balances at the beginning of the current reporting period.
⢠Specified format for disclosure of shareholding of promoters.
⢠Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.
⢠If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.
⢠Specific disclosure under âadditional regulatory requirementâ such as compliance with approved schemes of arrangements, compliance with number
of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held etc.
Statement of Profit and Loss:
⢠Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head âadditional informationâ in the notes forming part of the financial statements.
The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.
Note-48 Events after the Reporting period
There are no significant events after the reporting period, that would require adjustments or disclosures in the Standalone Ind AS Financial Statements as on the Balance Sheet date.
Global pandemic Covid-19, which broke out in the last quarter of FY 2019-20, caused severe impact globally and in India. India announced country-wide strict lockdown in the last week of March 2020 and such measures continued to be in force in gradually relaxed form. The Companyâs operations have been classified as âessentialâ and hence not much affected by the lock-down. By the second half of the financial year 2020-21, majority of the functions including sales & distribution, procurement, supply chain, logistics and corporate functions became near-normal, duly following safety guidelines, without any material adverse impact on the operations of the Company.
Unfortunately, the financial year 2021-22 has begun with outbreak of second wave of Covid-19, which is turning out more contagious and has infected several Company employees, their family members, the Companyâs business partners and their employees. Various state governments have imposed lockdown-like restrictions which have impacted economic and commercial activities in the country. The Companyâs manufacturing operations have also been impacted, but not materially. In view of virus spread to rural and semi-rural areas and that too very close to the upcoming monsoon season, one has to watch out for its overall impact on the industry and the Company in the coming days, though at present the impact for the Company is not material.
50 The figures for the previous year have been regrouped/reclassified wherever considered necessary.
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ഓഹരി വിപണിയിൽ വൻ കുതിപ്പ്: സെൻസെക്സും നിഫ്റ്റിയും കുതിച്ചുയരുന്നു, നിക്ഷേപകർക്ക് വൻ നേട്ടം -
വിപണിയിൽ വൻ ചാഞ്ചാട്ടം; ഐടി ഓഹരികളുടെ കുതിപ്പിനിടെ നിക്ഷേപകർ ഉറ്റുനോക്കുന്ന ആ നിർണ്ണായക തീരുമാനം ഇതാ! -
കോൾ ഇന്ത്യ സെറ്റിൽമെന്റും വാഹന വിൽപന കണക്കുകളും; നിഫ്റ്റിയിൽ ഇന്ന് വൻ മാറ്റങ്ങൾക്ക് സാധ്യതയോ? -
വെള്ളിയാഴ്ചത്തെ വിപണി തകർച്ച: നിക്ഷേപകരുടെ പണം ഒലിച്ചുപോയോ? സെൻസെക്സ് വീഴ്ചയ്ക്ക് പിന്നിലെ ഞെട്ടിക്കുന്ന കാരണങ്ങൾ ഇതാ! -
സെൻസെക്സ് ഇടിവ് തുടരുമോ? തിങ്കളാഴ്ച വിപണിയിൽ വൻ മാറ്റങ്ങൾക്ക് സാധ്യത, നിക്ഷേപകർ ശ്രദ്ധിക്കേണ്ട കാര്യങ്ങൾ ഇതാ! -
സെൻസെക്സും നിഫ്റ്റിയും കുതിക്കുന്നു; ഓഹരി വിപണിയിലെ ഈ വമ്പൻ മുന്നേറ്റത്തിന് പിന്നിലെ യഥാർത്ഥ കാരണം ഇതാണ്! -
മൺസൂൺ കാറ്റിൽ വിപണി കുതിക്കുമോ? നിക്ഷേപകർ ശ്രദ്ധിക്കേണ്ട നിർണ്ണായക മാറ്റങ്ങളും ഐപിഒ അവസരങ്ങളും ഇതാ! -
വിപണിയിൽ വൻ കുതിപ്പ്; സെൻസെക്സും നിഫ്റ്റിയും റെക്കോർഡ് ഉയരത്തിലേക്ക്, നിക്ഷേപകർക്ക് ഇനി എന്ത് സംഭവിക്കും? -
ഓഹരി വിപണിയിൽ കടുത്ത ചാഞ്ചാട്ടം; നിക്ഷേപകർക്ക് ആശങ്കയോ അതോ അവസരമോ? സെൻസെക്സ് നൽകുന്ന സൂചനകൾ ഇതാ! -
വിപണിയിൽ വൻ തകർച്ച; നിക്ഷേപകരെ ഞെട്ടിച്ച് സെൻസെക്സും നിഫ്റ്റിയും കൂപ്പുകുത്തിയതെങ്ങനെ? -
വിപണിയിൽ തളർച്ച, പക്ഷേ ഓട്ടോ ഓഹരികളിൽ വൻ കുതിപ്പ്; നിക്ഷേപകർക്ക് ഇനി എന്ത് സംഭവിക്കും? -
മെയ് 8: വിപണിയിൽ കുതിപ്പിന് സാധ്യതയോ? നിക്ഷേപകർ ശ്രദ്ധിക്കേണ്ട നിർണ്ണായക ഘടകങ്ങൾ ഇതാ! -
വിപണിയിൽ കനത്ത ഇടിവ്; നിക്ഷേപകരെ ആശങ്കയിലാക്കി സെൻസെക്സും നിഫ്റ്റിയും കൂപ്പുകുത്തി -
വിപണിയിൽ കാളക്കൂറ്റന്മാരുടെ തിരിച്ചുവരവ്; നിഫ്റ്റിയും സെൻസെക്സും കുതിച്ചുയർന്നത് എങ്ങനെ? -
വിപണിയിൽ വൻ കുതിപ്പിന് കളമൊരുങ്ങുന്നു; ഈ ഓഹരികൾ ശ്രദ്ധിക്കാതെ പോകരുത്! -
തിങ്കളാഴ്ച വിപണിയിൽ എന്ത് സംഭവിക്കും? നിക്ഷേപകരെ കാത്തിരിക്കുന്നത് വൻ അട്ടിമറികളോ?
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