h. Provisions, Contingent Liabilities and
Contingent Assets
A provision is recognized if, as a result of a past
event, the company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. If the effect of the time value of money
is material, provisions are determined by
discounting the expected future cash flows at a
pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. Where discounting is
used, the increase in the provision due to the
passage of time is recognized as a finance cost.
Contingent Liability is disclosed after careful
evaluation of facts, uncertainties and possibility
of reimbursement, unless the possibility of an
outflow of resources embodying economic
benefits is remote. Contingent liabilities are not
recognized but are disclosed in notes.
Contingent assets are not disclosed in the financial
statements unless an inflow of economic benefits
is probable. Provisions, Contingent Liabilities and
Contingent Assets are reviewed at each Balance
Sheet date.
i. Revenue Recognition
I. Sale of goods
Revenue is generated primarily from sale of
agrochemicals.
Revenue is recognized upon transfer of
control of promised goods to customers in an
amount that reflects the consideration which
the Company expects to receive in exchange
for those goods.
Revenue from the sale of goods is recognized
at the point in time when control is transferred
to the customer which is usually on delivery.
Revenue is measured based on the transaction
price, which is the consideration, adjusted for
volume discounts, rebates, scheme
allowances, price concessions, incentives,
and returns, if any, as specified in the contracts
with the customers. Revenue excludes taxes
collected from customers on behalf of the
government. Accruals for discounts/
incentives and returns are estimated (using the
most likely method) based on accumulated
experience and underlying schemes and
agreements with customers. Due to the short
nature of credit period given to customers,
there is no financing component in the
contract.
Contract balances
Trade receivables
A receivable represents the Company's right
to an amount of consideration that is
unconditional (i.e., only the passage of time is
required before payment of the consideration
is due). Refer to accounting policies of
financial assets in section 3(d) Financial
instruments - initial recognition and
subsequent measurement.
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
recognized when the payment is made or the
payment is due (whichever is earlier).
Contract liabilities are recognized as revenue
when the Company performs under the
contract.
II. Interest Income
Interest income is accrued on a time basis, by
reference to the principal outstanding and at
the effective interest rate applicable, which is
the rate that exactly discounts estimated
future cash receipts through the expected life
of the financial asset to the asset's net carrying
amount on initial recognition. Interest income
is included in other income in the statement of
profit and loss.
III. Insurance claims
Insurance claims are accounted for on the
basis of claims admitted and to the extent that
there is no uncertainty in receiving the claims.
IV. Government Grants
Government grants and subsidies are
recognised where there is reasonable
assurance that the grant/subsidies will be
received and all attached conditions will be
complied with. The Grants are presented
under the head other operating income.
j. Employee Benefits
I. Short Term Employee benefits
Short-term employee benefits are expensed as
the related service is provided. A liability is
recognized for the amount expected to be paid
if the Company has a present legal or
constructive obligation to pay this amount as a
result of past service provided by the
employee and the obligation can be estimated
reliably.
II. Defined contribution plans
Employees benefits in the form of the
Company's contribution to Provident Fund,
Pension scheme, Superannuation Fund,
National Pension scheme and Employees
State Insurance are defined contribution
schemes. The Company recognizes
contribution payable to these schemes as an
expense, when an employee renders the
relatedservice. If the contribution payable
exceeds contribution already paid, the deficit
payable is recognized as a liability (accrued
expense), after deducting any contribution
already paid. If the contribution already paid
exceeds the contribution due for service
before the end of the reporting period, the
Company recognize that excess as an asset
(prepaid expense) to the extent that the
prepayment will lead to reduction in future
payments or a cash refund.
III. Defined benefit plans
Retirement benefits in the form of gratuity are
considered as defined benefit plans. The
Company's net obligation in respect of
defined benefit plans is calculated by
estimating the amount of future benefit that
employees have earned in the current and
prior periods, discounting that amount and
deducting the fair value of any plan assets.
The company provides for its gratuity liability
based on actuarial valuation of the gratuity
liability as at the Balance Sheet date, based on
Projected Unit Credit Method, carried out by an
independent actuary. The company contributes to
the gratuity fund, which are recognized as plan
assets. The defined benefit obligation as reduced
by fair value of plan assets is recognized in the
Balance Sheet.
When the calculation results in a potential asset
for the company, the recognized asset is limited to
the present value of economic benefits available in
the form of any future refunds from the plan or
reductions in future contributions to the plan. To
calculate the present value of economic benefits,
consideration is given to any applicable minimum
funding requirements.
Remeasurement of the net defined benefit
liability, which comprise actuarial gains and
losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling (if any,
excluding interest), are recognized immediately in
Other Comprehensive Income. Net interest
expense (income) on the net defined liability
(assets) is computed by applying the discount rate,
used to measure the net defined liability (asset), to
the net defined liability (asset) at the start of the
financial year after taking into account any
changes as a result of contribution and benefit
payments during the year. Net interest expense and
other expenses related to defined benefit plans are
recognized in statement of profit & loss.
When the benefits of a plan are changed or when a
plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on
curtailment is recognized immediately in
statement of profit & loss. The company
recognizes gains and losses on the settlement of a
defined benefit plan when the settlement occurs.
IV. Other long term employee benefits
Other long term Employee benefits includes
earned leaves and sick leaves. The Company's
net obligation in respect of long-term
employee benefits is the amount of future
benefit that employees have earned in return
for their service in the current and prior
periods. That benefit is discounted to
determine its present value. Remeasurement
are recognized in statement of profit & loss in
the period in which they arise.
The liability for long term compensated
absences are provided based on actuarial
valuation as at the Balance Sheet date, based
on Projected Unit Credit Method, carried out
by an independent actuary.
k. Foreign currency transactions
The financial statements are presented in Indian
rupee, which is the company's functional and
presentation currency, unless stated otherwise. A
company's functional currency is that of the
primary economic environment in which the
company operates.
Foreign currency transactions are translated into
the functional currency using the exchange rate at
the date of the transaction. Foreign exchange
gains/losses resulting from the settlement of such
transactions and from the translation of monetary
assets and liabilities denominated in foreign
currencies at year end exchange rates are
recognized in the statement of profit and loss.
l. Borrowing costs
Borrowing costs are interest and ancillary cost
incurred in connection with the arrangement of
borrowings. Borrowing costs are recognized in
the statement of profit and loss within finance
costs of the period in which they are incurred.
m. Income Tax
Income tax expense comprises current and
deferred tax. It is recognized instatement of profit
& loss except to the extent that it relates to items
recognized directly in equity or in Other
Comprehensive Income.
I. Current Tax
Current tax comprises the expected tax payable on
the taxable income for the year after taking credit
of the benefits available under the Income Tax Act
and any adjustment to the tax payable or
receivable in respect of previous years. It is
measured using tax rates enacted or substantively
enacted at the reporting date.
Current tax assets and liabilities are offset only if,
the Company:
a) has a legally enforceable right to set off the
recognized amounts; and
b) intends either to settle on a net basis, or to
realize the asset and settle the liability
simultaneously.
II. Deferred Tax
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
values of assets and liabilities in the financial
statements and the corresponding tax bases used
in the computation of taxable profit and is
accounted for using the balancesheet liability
method. Deferred tax assets/liabilities are
generally recognized for all taxable temporary
differences, the carry forward balance of unused
tax credits and unused tax losses to the extent that
it is probable that taxable profits will be available
against which those deductible temporary
differences, the carry forward balance of unused
tax credits and unused tax losses can be utilized.
The carrying value of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax is measured at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realized based on the tax
rates and tax laws that have been enacted or
substantially enacted by the end of the reporting
period. The measurement of deferred tax
liabilities and assets reflects the tax consequences
that would follow from the manner in which the
company expects, at the end of the reporting
period, to cover or settle the carrying value of its
assets and liabilities.
Deferred tax assets and liabilities are offset only if:
i) The entity has a legally enforceable right to set off
current tax assets against current tax liabilities;
and
ii) The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity.
n. Lease
The Company's lease asset classes primarily
consist of leases for Building and Vehicles. The
Company assesses whether a contract contains a
lease, at inception of a contract. 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. To assess
whether a contract conveys the right to control the
use of an identified asset, the Company assesses
whether:
(i) the contract involves the use of an identified
asset (ii) the Company has substantially all of the
economic benefits from use of the asset through
the period of the lease and (iii) the Company has
the right to direct the use of the asset.
Company as a lessee
At the date of commencement of the lease, the
Company recognizes a right-of-use asset
(“ROU”) and a corresponding lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months or
less (short-term leases). For these short-term, the
Company recognizes the lease payments as an
operating expense on a straight-line basis over the
term of the lease.
Certain lease arrangements include the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities
includes these options when it is reasonably
certain that they will be exercised.
The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of the
lease. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over
the shorter of the lease term and useful life of the
underlying asset. Right of use assets are evaluated
for recoverability whenever events or changes in
circumstances indicate that their carrying
amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and
the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash
flows that are largely independent of those from
other assets. In such cases, the recoverable
amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.
The lease liability is initially measured at
amortized cost at the present value of the future
lease payments. The lease payments are
discounted using the interest rate implicit in the
lease or, if not readily determinable, using the
incremental borrowing rates in the country of
domicile of these leases. Lease liabilities are
remeasured with a corresponding adjustment to
the related right of use asset if the Company
changes its assessment if whether it will exercise
an extension or a termination option.
Lease liability and ROU asset have been
separately presented in the Balance Sheet and
lease payments have been classified as financing
cash flows.
Company as a lessor
When the Company acts as a lessor, it determines
at lease inception whether each lease is a finance
lease or an operating lease. To classify each lease,
the Company makes an overall assessment of
whether the lease transfers substantially all of the
risks and rewards incidental to ownership of the
underlying asset. If this is the case, then the lease
is a finance lease; if not, then it is an operating
lease.
The Company recognises lease payments
received under operating leases as income on a
straight-line basis over the lease term as part of
'other income'.
o. Earnings per share
Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
Equity Shareholders by the weighted average
number of equity shares outstanding during the
period.
For the purpose of calculating diluted earnings per
Share, the net profit or loss for the period
attributable to Equity Shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.
p. Dividend to Equity Shareholders
Final dividend to equity shareholders is
recognized as a liability and deducted from
shareholders' Equity, in the period in which the
dividends are approved by the equity shareholders
in the general meeting. Interim dividends are
recognized on declaration by the Board of
Directors.
The Board of Directors of the Company in its meeting held on 2nd August 2024, had approved the proposal for Buy Back of 5,00,000 (Five
Lacs Only) Equity Shares of the Company for an amount of Rs. 100 Crores (Rupees One Hundred Crores only) excluding transaction costs
at a price of Rs. 2,000/- (Rupees Two Thousands only) per Equity Share, through the tender offer route. Pursuant to the above, the Company
had bought back its 5,00,000 (Five Lacs only) fully paid-up equity shares, representing 1.10% of the total issued capital and extinguished
those Equity Shares on 11th September 2024. Consequently, Paid up Share Capital had been reduced by Rs.10,00,000 (Rupees Ten lacs
only).
The aggregate number of equity shares bought back during a period of five financial years immediately preceding the financial year ended
31 March 2025 is 20 Lacs equity shares (31 March 2024: 35 Lacs equity shares).
b. Terms/Rights attached to Issued Equity Shares
1 The Company has only one class of Equity Shares having at par value of 1 2/- per share. Each Equity share is entitled to one vote.
2 In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts.
3 The distribution will be in proportion to the number of Equity Shares held by the shareholders.
36. EMPLOYEE BENEFITS
The company participates in defined contribution
and benefit schemes, the funded assets of which
are held in separately administered funds. For
defined contribution schemes the amount charged
to the statements of profit & loss is the total of
contributions payable in the year.
a. Defined Contribution Plans
The Company has Defined Contribution
Plans for post-employment benefits namely
Provident Fund, Superannuation Fund and
National Pension Scheme, which are
administered by appropriate Authorities.
The Company contributes to a Government
administered Provident Fund, Employees'
Deposit Linked Insurance Scheme and
Employee Pension Scheme, on behalf of its
employees and has no further obligation
beyond making its contribution.
The Superannuation Fund and National
Pension Scheme applicable to certain
employees is a Defined Contribution Plan as
the Company contributes to these Schemes
which are administered by an Insurance
Company and has no further obligation
beyond making the payment to the Insurance
Company.
The Company contributes to State Plans
namely Employees' State Insurance Fund and
has no further obligation beyond making the
payment to them.
The Company's contributions to the above
funds are charged to revenue every year.
The company has recognized an expense of '
518.91 Lakhs (Previous year ' 533.11Lakhs)
towards the defined contribution plans.
b. Defined Benefit Plans
In accordance with the payment of Gratuity
Act, 1972, the Company has a Defined Benefit
Plan namely “Gratuity Plan” covering its
employees. The Gratuity scheme is funded
through Group Gratuity-cum-Life Assurance
Scheme and the liability for the Gratuity plan
is provided based on an actuarial valuation at
the year-end. Re-measurement as a result of
experience adjustments and changes in
actuarial assumptions are recognized in other
comprehensive income.
VII. Sensitivity Analysis
Significant actuarial assumptions for the determination of defined benefit obligation are discount rate,
expected salary increase and mortality. The sensitivity analysis below has been determined based on
reasonable possible changes of the assumptions occurring at the end of the reporting period, while holding
all other assumptions constant. The result of sensitivity analysis given below:
X. Method and assumption related terms
1) Discount Rate: -Discount rate is the rate
which is used to discount future benefit cash
flows to determine the present value of the
defined benefit obligation at the valuation
date. The rate is based on the prevailing
market yields of high quality corporate bonds
at the valuation date for the expected term of
the obligation. In countries where there are no
such bonds, the market yields at the valuation
date on government bonds for the expected
term is used.
2) Salary escalation Rate: - The rate at which
salaries are expected to escalate in future. It is
used to determine the benefit based on salary
at the date of separation.
3) Attrition Rate: - The reduction in staff/
employees of a company through normal
means, such as retirement and resignation.
This is natural in any business and industry.
4) Mortality Rate: - Mortality rate is a measure
of the number of deaths (in general, or due to a
specific cause) in a population, scaled to the
5) Projected Unit credit method: - The
Projected Unit Credit Method (sometimes
known as the accrued benefit method pro¬
rated on service or as the benefit/years of
service method) considers each period of
service as giving rise to an additional unit of
benefit entitlement and measures each unit
separately to build up the final obligation. The
Projected Unit Credit Method requires an
enterprise to attribute benefit to the current
period (in order to determine current service
cost) and the current and prior periods (in
order to determine the present value of
defined benefit obligations).
c. Other Long term employee benefits
The liabilities for earned leave and sick leave are
not expected to be settled wholly within 12
months after the end of the period in which the
employees render the related service. They are
therefore measured as the present value of
expected future payments to be made in respect of
services provided by employees up to the end of
the reporting period using the projected unit credit
method. Re-measurements as a result of
experience adjustments and changes in actuarial
assumptions are recognized in statement of profit
and loss.
The company has recognized an expense of '
156.59 Lakhs (Previous year ' 114.25 Lakhs)
towards the compensated absences.
* Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings
of the cash outflows, if any, in respect of the above as it is determinable only on receipt of the judgements/
decisions pending with various forums / authorities.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The
company also believes that the above issues, when finally settled are not likely to have any significant impact
on the financial position of the Company.
** Company has received Refund of Terminal Excise Duty (TED) during FY 2015-16 & FY 2016-17 from
Director General of Foreign Trade (DGFT). In November-2019, company has received show cause notice
from DGFT for recovery of erroneous payment of Terminal Excise Duty. Against this notice, company has
filed writ before Gujarat High Court and the court has stayed the recovery of the notice. As on now the matter is
pending before Gujarat High Court.
38. LEASES
The Company's lease asset primarily consists of
leases for offices, warehouses and Vehicles
having the various lease terms. Effective April 1,
2019, the Company adopted Ind AS 116 “Leases”
and applied the standard to all lease contracts
existing on April 1, 2019 using the modified
retrospective method. Consequently, the
cumulative effect of initially applying the
standard recognised at the date of initial
application, with right-of-use asset recognised at
an amount equal to the lease liability, adjusted by
the prepaid lease rent.
a. Right of Use
Following is carrying value of right of use assets
and the movements thereof during the year ended
are as under:-
c. The company has elected Para 6 of Ind AS-116 for
short-term leases & recognised lease expense of '
41.16Lakhs(Previous Year ' 26.59 Lakhs)
associated with these lease.
d. The weighted average incremental borrowing rate
of 9% has been applied to lease liabilities
recognised in the Balance Sheet at the date of
initial application.
c. The Maturity analysis of lease liabilities are
disclosed in Note 43(b)
39. SEGMENT INFORMATION
The company has evaluated the applicability of
segment reporting and has concluded that the
company has only one primary business segment
i.e. Agro Chemicals and one geographical
reportable segment i.e. Operations mainly within
India.The overall performance is reviewed by
the Chairman, Managing Directorand CFO,
which have been identified as the CODM (Chief
operating decision makers) by the Company.
Thus the segment revenue, expenses, results,
assets and liabilities are same as reflected in the
financial statements as at and for the year ended 31
March, 2025.
Note-Figures are shown net of GST, wherever
applicable.
• The above post-employment benefits exclude
gratuity which cannot be separately identified
from the composite amount advised by the
actuary.
• The Board of Directors of Dhanuka Agritech
Limited in its meeting held on November 07, 2023
had approved the Strike off of its wholly owned
subsidiary i.e. Dhanuka Chemicals Private
Limited (DCPL). DCPL has filed an application
for strike-off with the Registrar of Companies
(ROC), NCT of Delhi and Haryana. The ROC has
approved the strike off and the name of the
Company has been struck off with effect from July
16, 2024 from the Register of the Companies.
Investment of Rs. 1.00 lac have been consequently
written off in FY 2024-25.
• The above transactions do not include property tax
of Rs. Nil (March 31, 2024 Rs. 23.01 Lakhs) paid
to Municipal Corporation on behalf of Mridul
Dhanuka HUF. The same has been reimbursed by
Mridul Dhanuka HUF to the company.
• The above amount of services received-rent
includes property tax reimbursement of Rs. 4.71
Lakhs (March 31,2024 Rs. 3.79 Lakhs).
• The above amount of services rendered - rent
includes property tax reimbursement of Rs. 3.44
Lakhs (March 31, 2024 Rs. Nil)
c. Terms and conditions of transactions with
related parties
All the transactions with related parties are made
on terms equivalent to those that prevail in arm’s
length transactions. Outstanding balances at the
year-end are unsecured and settlement occurs in
cash. There have been no guarantees provided or
received for any related party receivables or
payables. The company has not recorded any
impairment of receivables relating to amounts
owed by related parties except as mentioned above
for the year ended March 31, 2025and March 31,
2024.
41. THE MICRO, SMALL AND MEDIUM
ENTERPRISES DEVELOPMENT (MSMED)
ACT,2006
The information regarding Micro, Small and
Medium enterprises has been determined to the
extent such parties have been identified on the
basis of information available with the company:
The fair value of financial assets and liabilities are
included at the amount at which the instrument could
be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.
The carrying amounts of cash and cash equivalents,
bank balance other than cash and cash equivalents,
trade receivables, Short term loans, trade payables,
short term borrowings and other current financial
assets and liabilities are considered to be the same as
their fair values, due to their short-term nature. Fair
value for security deposits (other than perpetual
security deposits) has been presented in the above
table. Fair value for all other non-current financial
assets and liabilities is equivalent to the amortized
cost, interest rate on them is equivalent to the market
rate of interest.
III. Fair Value hierarch
Level 1- This includes financial instruments
measured using quoted prices
(Unadjusted) in active markets for
identical assets and liabilities.
Level 2 - The fair value of financial instruments that
are not traded in an active market is
determined using valuation techniques
which maximize the use of observable
market data and rely as little as possible
on entity-specific estimates. If all
significant inputs required to fair value an
instrument are observable, the instrument
is included in level 2. Inputs other than
quoted prices included within Level 1 that
are observable for the asset or liability,
either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are
not based on observable market data
(unobservable inputs).
IV. Valuation techniques used to determine fair
value
Level 1- Financial assets categorized in Level 1,
are fair valued based on market data as at
reporting date.
Level 2 - The fair valuation of investments
categorized in Level 2 has been
determined on the basis of independent
valuation done by respective funds.
43. FINANCIAL RISK MANAGEMENT
The Company’s operational activities expose to
various financial risks i.e. market risk, credit risk and
risk of liquidity. The Company realizes that risks are
inherent and integral aspect of any business. The
company’s board of directors has the overall
responsibility for the management of these risks. The
company has the risk management policies and
systems in place and are reviewed regularly to reflect
changes in market conditions and the company’s
activities. The primary focus is to foresee the
unpredictability of financial markets and seek to
minimize potential adverse effects on its financial
performance. The company’s audit committee
oversees how management monitors compliance with
the risk management policies and procedures, and
reviews the adequacy of risk management framework
in relation to the risks faced by the company.
a.) Credit Risk
Credit Risk refers to the risk that a counter
party will default on its contractual obligation
resulting in financial loss to the company.
Credit risk arises from the operating activities
primarily from trade receivables and from its
financing activities including cash and cash
equivalents, deposits with banks, Investments
and other financial instruments. The carrying
amount of financial assets represents the
maximum credit exposure and is as follows:
Trade Receivables
Trade receivables are typically unsecured and
are derived from revenue earned from
customers primarily located in India. The
company has established a credit policy under
which each customer is analyzed individually
for creditworthiness before the company’s
credit terms are offered. 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. Credit limits
are established for each customer and
reviewed periodically. Any sales order
exceeding those limits require approval from
the appropriate authority. The concentration
of credit risk is limited due to the fact that the
customer base is large and unrelated.
In case of trade receivables, the Company
follows the simplified approach permitted by
Ind AS 109 - Financial Instruments for
recognition of impairment loss allowance.
The company calculates the expected credit
losses on trade receivables using a provision
matrix on the basis of its historical credit loss
experience. These loss rates are adjusted by
considering the available, reasonable and
supportive forward looking information.
The ageing of Trade Receivables and
allowances for doubtful debts are given
below:
Financial assets other than Trade Receivables,
Loans to corporate & others, Security Deposit and
Investment in Real Estate Funds.
Credit risks from financial transactions are managed
independently by finance department. For banks and
financial institutions, the company has policies and
operating guidelines in place to ensure that financial
instrument transactions are only entered into with high
credit rated banks and financial institutions. The
company had no other financial instrument that
represent a significant concentration of credit risk. So
there is no impairment in these financial assets.
b.) Liquidity Risk
Liquidity risks result from the possible inability of
the company to meet current or future payment
obligations due to lack of cash or cash
equivalents. The liquidity risk is assessed and
managed by the finance department as a part of
day to day and medium term liquidity planning.
The company holds sufficient liquidity to ensure
the fulfillment of all planned payment obligations
at maturity. The company’s liquidity risk policy is
to maintain sufficient liquidity reserve at all times
based on cash flow projections to meet payment
obligation when it falls due. The primary source
of liquidity is cash generated from operations.
Liquid assets are held mainly in the form of bank
deposits and mutual fund investments. The
company maintain flexibility in funding by
c.) Market Risk
i. Currency Risk
Foreign currency risks for the company is
from changes in exchange rates and the
related changes in the value of financial
instruments in the functional currency (INR).
The company is exposed to foreign exchange
risk arising from foreign currency
transactions primarily with respect to US
Dollar and EURO.
The carrying amounts of the Company’s
unhedged foreign currency denominated
monetary assets and monetary liabilities at the
end of the reporting period are as follows:
Note: This is mainly attributable to the exposure
outstanding on foreign currency receivables and
payables in the Company at the end of the reporting
period. The assumed movement in exchange rate
sensitivity analysis is based on the currently
observable market environment.
ii. Interest Rate Risk
Interest rate risk is the risk that the fair value or
future cash flow of a financial instrument will
fluctuate because of changes in market interest
rates. The short-term borrowings of the company
do not have any significant fair value or cash flow
interest rate risk due to short tenure. So, there is no
material interest risk relating to the company’s
financial liabilities.
iii. Price Risk
The company is mainly exposed to the price risk
due to its investment in mutual funds and
classified in the balance sheet as fair value through
profit and loss. Mutual fund investments are
susceptible to market price risk, mainly arising
from changes in the interest rates or market yields
which may impact the return and value of such
investments. However, due to very short tenor of
the underlying portfolio in the liquid schemes,
these do not pose any significant price risk.
There is no material risk relating to the company’s
equity investments which are detailed in note 8. The
company’s equity investments majorly comprise of
strategic investments rather than trading purposes.
44. CAPITAL MANAGEMENT
The company manages its capital to ensure that the
company will be able to continue as going concern
while maximizing the return to stakeholders through
optimization of debt and equity balance. Further its
objective is to maintain an adequate capital base so as
to maintain creditor and market confidence and to
sustain future development.
The company manages capital using gearing ratio,
which is total debt divided by total equity. The gearing
at the end of the reporting period was as follows:
48. Recent Pronouncement
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. For
the year ended March 31, 2025, MCA has not
notified any new standards or amendments to the
existing standards applicable to the Company.
49. Other Statutory Information
a. ) The Company does not have any Benami
property, where any proceeding has been
initiated or pending against the company for
holding any Benami property.
b. ) The Company do not have any charges or
satisfaction which is yet to be registered with
ROC beyond the statutory period.
c. ) The Company have not traded or invested in
Crypto currency or Virtual Currency during
the financial year.
d. ) The Company has not advanced or loaned or
invested funds to any other person(s) or
entity(ies), including foreign entities
(Intermediaries) with the understanding that
the Intermediary shall:
I. 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
II. provide any guarantee, security or the
like to or on behalf of the Ultimate
Beneficiaries
e.) The Company has not received any fund from
any person(s) or entity(ies), including foreign
entities (Funding Party) with the
understanding (whether recorded in writing or
otherwise) that the Company shall:
I. 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
II. provide any guarantee, security or the
like on behalf of the ultimate
beneficiaries
f.) The Company is in compliance with the number
of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017 (as
amended).
g. ) 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.
h. ) The Company has not revalued its property,
plant and equipment (including right-of-use
assets) or intangible assets or both during the
current or previous year.
i. ) The Company has no transactions with struck
off companies.
j. ) The company have not been declared willful
defaulter by any banks or any other financial
institution at any time during the financial
year.
k. ) The company has utilized the borrowings
from banks & financial institutions for
specific purpose for which it was taken during
the year.
l. ) The company has been sanctioned working
capital limit in excess of Rs. five crores in
aggregate, at any point of time during the year
from bank on the basis of security of current
assets. The quarterly return/statement filed by
company with the banks are in agreement with
the books of account of the company of the
respective quarters.
50. Subsequent Event
a.) The Board of Directors have recommended
Final Dividend of 100% i.e. Rs. 2.00 per
equity share for the financial year 2024-25,
subject to the approval of the Shareholders of
the company in the ensuing Annual General
Meeting.
As per our report of even date attached
For S S KOTHARI MEHTA & CO. LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No:000756N/N500441
Sd/- Sd/-
M.K.Dhanuka Rahul Dhanuka
Chairman ManagingDirector
DIN : 00628039 DIN : 00150140
Sd/- Sd/- Sd/-
Jalaj Soni V.K.Bansal Jitin Sadana
Partner Chief Financial Officer Company Secretary
Membership No: 528799 (M.No. : 86263) (FCS No. : F 7612)
Place: Gurugram
Dated: 16thMay, 2025
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