1. Rights, Preferences and Restrictions attaching to shares
Equity Shares: The Company has one class of Equity Shares having a par value of ?10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
NOTE NO. 33 : Capital Management
The company objective to manage its capital in a manner to ensure and safeguard their ability to continue as a going concern so that company can continue to provide maximum returns to shareholders and benefit to other stake holders.
Further, company manages its capital structure to make adjustments in light of changes in economic conditions and the requirements of the financial covenants. The company maintain an optimal capital structure of Debt equity to reduce the cost of capital. The company's debts includes cash credit facilities from Banks.
(b) Long term variable rate borrowings are evaluated by company on parameters such as interest rates, specific country risk factors and other risk factors. Based on this evaluation the fair value of such payables are not materially different from their carrying amount.
(c) For Other Financial assets and liabilities that are measured at fair value, the carrying amount are equal to fair values.
NOTE NO. 35 : Financial Risk Management
The Company's principal financial liabilities comprise Borrowings (including Cash Credits), Trade Payables and other payables. The main purpose of these financial liabilities is to finance the company's operations and to provide guarantees to support its operation. The Company's principal financial assets includes trade receivables, other receivables and cash and cash equivalents that derive directly from its operations. The Company is expose to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriated policies and procedures and that financial risk are identified, measured and managed in accordance with the company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risk, which are summarized below:-
a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk. Financial instruments affected by market risk includes Borrowings.
b) Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the company's policies and risk objective.
c) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, Security deposits and other financial instruments. The maximum credit risk as on the reporting risk is equal to the carrying value of the financial instruments.
d) Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
The Company's corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Company having Cash Credit facilities from various banks for maintaining the short term financial requirement.
36. Key sources of Estimation uncertainty
The followings are the key assumptions concerning the future, and the key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities with next financial year.
a) Fair valuation measurement and valuation process
The fair values of financial assets and financial liabilities are measured using the valuation techniques including DCF model. The inputs to these methods are taken from observable markets where possible, but where this it is not feasible, a degree of judgement is required in arriving at fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
b) Taxes
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which losses can be utilized significant management judgement is required to determine the amount of deferred tax asset that can be recognized, based upon the likely timing and level of future taxable profit together with future tax planning strategies.
c) Useful Life of PPE
Company has defined useful life of property plant and equipment in accordance with Schedule-II of the Companies Act, 2013.
d) Leases
Ind AS-116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
37.1 : Contingent Assets
Company having contingent assets of Civil Suit of ?23.16 Lakhs.
42 Ind AS-116 "Leases Disclosures" are as under:-a) Company as a Lessee
The Holding Company as a lessee has entered into various lease contracts, which includes lease of land, office space and godowns. Before the adoption of Ind AS 116, the Company classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease.
Right of Use Assets
The Holding Company has recognized the right of use assets (Land at Dahej) under the head of the Property, Plant and Equipment as per the guidance given under Ind AS-116. The carrying amounts of right-of-use assets recognised and the movements during the
43 Disclosures in compliance with Ind AS 27 "Separate Financial Statements" are as under:
Bharat Rasayan Limited has established a Joint venture company "Nissan Bharat Rasayan Private Limited" with the Nissan Chemical Corporation by agreement dated 18.02.2020 in the investment proportion of the 30% and 70% respectively.
Equity investments in joint ventures are measured at cost as per the provisions of Ind AS 27 on 'Separate Financial Statements'.
44 Operating segment are reported in the manner consistent with the internal reporting provided to Chief Operating Decision Maker (CODM). CODM has identified only one operating segment, viz. pesticides, hence no separate disclosure is required.
45 Disclosures pursuant to amendment in Schedule III of the Companies Act 2013:
The MCA vide notification dated 23rd March 2021 has amended Schedule Ill to the Companies Act. 2013 in respect of certain disclosures which are applicable from 1st April 2021. The Company has incorporated the changes as per the said amendment in the financial statements and below disclosures are made in compliance of the said amendment:
(i) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the period.
(ii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the period.
(iii) The Company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.
(iv) The Company do not have any prior period errors to be disclosed separately in statement of changes in equity.
(v) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(viii) The Company does not have any loans and advances in the nature of loans to promoters, directors, KMP and other related parties.
(ix) The Company does not have any transaction which is not recorded in the books of accounts that has been subsequently surrendered or disclosed as income during the year as part of the on going tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(x) The Company has not been declared as willful defaulter by any bank or financial institution or government or any government authority.
(xi) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(xii) The Company do not have any title deeds of immovable properties not held in name of the company.
(xiii) The Company does not have any investment property.
(xiv) The Company has submitted statement of current assets with the bank and statement filed by the company are reconciled with the books of accounts and no material difference.
(xv) The Company has not revalued any item of property, plant and equipment.
(xvi) The Company does not have any transactions where the company has not used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date
(xvii) The Company have not entered into any scheme(s) of arrangements during the financial year.
46 Other Notes
(i) Corresponding figures have been regrouped wherever considered necessary.
(ii) The Board of Directors of the Company has recommended final dividend @ 15%, i.e ?1.50/-per equity share of the nominal value of ?10/- for the year ended on 31st March, 2025.
(iii) The Company is continued to maintain CARE AA- (AA Minus) for Long Term Facilities and CARE A1 (A One Plus) for Short Term Facilities.
(iv) As informed earlier, pursuant to the Order of the Hon'ble National Green T ribunal (NGT), the Company was directed to deposit ?11.80 Crore towards Environmental Damage Compensation (EDC) with the Gujarat Pollution Control Board (GPCB) in relation to the fire incident dated 17.05.2022. In compliance, the Company has deposited the said amount under protest. The matter remains sub-judice, with an Appeal currently pending before the Hon'ble Supreme Court.
(v) Events occurring after Balance Sheet date are considered in the preparation of financial statements in accordance with Ind AS-10 (Contingencies and Events Occurring After Balance Sheet Date).
(vi) With respect to fire occured on 17th May, 2022, the insurance claim pertaining to material damage in Block-D of the Dahej Plant is under process, and the final claim bill is being prepared for submission to the Insurance Company/Surveyor for further processing. Additionally, the insurance claim for Loss of Profit (FLOP) will be recognised by the Company on a receipt basis.
47 Approval of Financial Statement
The Standalone Financial Statements were approved for issue by the Board of Directors on 28th
May, 2025.