Notes to Accounts of Galaxy Surfactants Ltd.

Mar 31, 2025

n) Provisions and Contingent Liabilities

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that the
Company 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. In the
event the time value of money is material provision
is carried at the present value of the cash flows
required to settle the obligation.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable
that an outflow of resources will be required to
settle the obligation or a reliable estimate of the
amount cannot be made. 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.

Contingent assets are possible assets that
arises 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. A
contingent asset is disclosed, where an inflow of
economic benefits is probable.

o) Government Grants

Government grants are not recognised until there
is reasonable assurance that the Company will
comply with the conditions attaching to them and
that the grants will be received.

Government grants are recognised in the
Statement of Profit and Loss on a systematic
basis over the periods in which the Company
recognises as expenses the related costs for

which the grants are intended to compensate.
Specifically, government grants whose primary
condition is that the Company should purchase,
construct or otherwise acquire non-current assets
are recognised as deferred revenue in the balance
sheet and transferred to the Statement of Profit
and Loss on a systematic and rational basis over
the useful lives of the related assets.

The benefit of a government loan at a below-market
rate of interest is treated as a government grant,
measured as the difference between proceeds
received and the fair value of the loan based on
prevailing market interest rates.

In the unlikely event that a grant previously
recognised is ultimately not received, it is treated as
a change in estimate and the amount cumulatively
recognised is expensed in the Statement of Profit
and Loss.

p) Financial instruments, Financial
assets, Financial liabilities and Equity
instruments

Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of the
relevant instrument.

Financial assets and financial liabilities are
initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or
issue of financial assets and financial liabilities
(other than financial assets and financial liabilities
measured at fair value through Profit and Loss)
are added to or deducted from the fair value on
initial recognition of financial assets or financial
liabilities. Transaction costs directly attributable
to the acquisition of financial assets or financial
liabilities at fair value through Profit and Loss are
recognised immediately in the Statement of Profit
and Loss. However, trade receivables that do not
contain a significant financing component are
measured at transaction price.

Classification and subsequent measurement
Financial Assets

All regular way purchases or sales of financial
assets are recognised and derecognised on a trade
date basis. Regular way purchases or sales are
purchases or sales of financial assets that require
delivery of assets within a time frame established
by regulation or convention in the market place.

All recognised financial assets are subsequently
measured at either amortised cost or fair value
depending on their respective classification.

On initial recognition, a financial asset is classified
as measured at -

• Amortised cost; or

• Fair Value through Other Comprehensive
Income (FVTOCI) ; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period
the Company changes its business model for
managing financial assets.

All financial asset not classified as measured at
amortised cost or FVTOCI are measured at FVTPL.
This includes all derivative financial assets.

Financial assets at amortised cost are
subsequently measured at amortised cost using
effective interest method. The amortised cost is
reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment
are recognised in the Statement of Profit and Loss.
Any gain and loss on derecognition is recognised
in the Statement of Profit and Loss.

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.

For equity investments, the Company makes an
election on an instrument-by-instrument basis
to designate equity investments as measured
at FVTOCI. These elected investments are
measured at fair value with gains and losses
arising from changes in fair value recognised in
Other Comprehensive Income and accumulated
in the reserves. The cumulative gain or loss is
not reclassified to profit or loss on disposal of
the investments. These investments in equity
are not held for trading. Instead, they are held for
medium or long-term strategic purposes. Upon the

application of Ind AS 109, the Company has chosen
to designate these investments as at FVTOCI as
the Company believes that this provides a more
meaningful presentation for medium or long-term
strategic investments, than reflecting changes in
fair value immediately in the Statement of Profit and
Loss. Dividend income received on such equity
investments are recognised in the Statement of
Profit and Loss.

Equity investments that are not designated as
measured at FVTOCI are designated as measured
at FVTPL and subsequent changes in fair value
are recognised in the Statement of Profit and Loss.

Financial assets at FVTPL are subsequently
measured at fair value. Net gains and losses,
including any interest or dividend income, are
recognised in the Statement of Profit and Loss.

Financial liabilities and equity instruments

Debt and equity instruments issued by the
Company are classified as either financial liabilities
or as equity in accordance with the substance of
the contractual arrangements and the definitions
of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company is recognised at the
proceeds received, net of directly attributable
transaction costs.

Financial liabilities

Financial liabilities are classified as measured
at amortised cost or FVTPL. A financial liability
is classified as FVTPL if it is classified as held-
for-trading or it is a derivative or it is designated
as such on initial recognition. Other financial
liabilities are subsequently measured at amortised
cost using the effective interest method. Interest
expense and foreign exchange gains and losses
are recognised in the Statement of Profit and
Loss. Any gain or loss on derecognition is also
recognised in the Statement of Profit and Loss.

Compound instruments

An issued financial instrument that comprises
of both the liability and equity components are
accounted as compound financial instruments.
The fair value of the liability component is

separated from the compound instrument and the
residual value is recognised as equity component
of financial instrument. The liability component
is subsequently measured at amortised cost,
whereas the equity component is not remeasured
after initial recognition. The transaction costs
related to compound instruments are allocated
to the liability and equity components in the
proportion to the allocation of gross proceeds.
Transaction costs related to equity component is
recognised directly in equity and the cost related
to liability component is included in the carrying
amount of the liability component and amortised
using effective interest method.

Derecognition of financial assets

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet,
but retains either all or substantially all of the
risks and rewards of the transferred assets, the
transferred assets are not derecognised.

Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently
has a legally enforceable right to set off the
amounts and it intends either to settle them on
a net basis or to realise the asset and settle the
liability simultaneously.

Financial guarantee contracts and loan
commitments

A financial guarantee contract is a contract that
requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a
specified debtor fails to make payments when due
in accordance with the terms of a debt instrument.

Financial guarantee contracts and loan
commitments issued by the Company are initially
measured at their fair values and, if not designated
as at FVTPL, are subsequently measured at the
higher of:

• The amount of loss allowance determined in
accordance with impairment requirements of
Ind AS 109; and

• The amount initially recognised less, when
appropriate, the cumulative amount of
income recognised in accordance with the
principles of Ind AS 115.

Impairment of financial assets

The Company applies the expected credit loss
(ECL) model for recognising impairment loss on
financial assets. With respect to trade receivables,
the Company measures the loss allowance at an
amount equal to lifetime expected credit losses.
For all other financial instruments, the Company
recognises lifetime ECL when there has been
a significant increase in credit risk since initial
recognition. If, on the other hand, the credit risk
on the financial instrument has not increased
significantly since initial recognition, the Company
measures the loss allowance for that financial
instrument at an amount equal to 12 month ECL.
The assessment of whether lifetime ECL should be
recognised is based on significant increases in the
likelihood or risk of a default occurring since initial
recognition. 12 month ECL represents the portion
of lifetime ECL that is expected to result from
default events on a financial instrument that are
possible within 12 months after the reporting date.

Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets.

The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery.
This is generally the case when the Company
determines that the debtor does not have assets
or sources of income that could generate sufficient
cash flows to repay the amounts subject to the
write-off. However, financial assets that are written
off could still be subject to enforcement activities
under the Company recovery procedures, taking
into account legal advice where appropriate. Any
recoveries made are recognised in the Statement
of Profit and Loss.

q) Dividend Distribution

Final dividend on shares are recorded as a liability
on the date of approval by the shareholders and
interim dividends are recorded as a liability on
the date of declaration by the Company’s Board
of Directors.

r) Derivative contracts

The Company uses derivative financial instruments
such as foreign exchange forward contracts and
interest rate swaps to hedge its foreign currency
risks which are not designated as hedges. All
derivative contracts are marked-to-market and
losses/gains are recognised in the Statement of
Profit and Loss. Derivatives are carried as financial
assets when the fair value is positive and as
financial liabilities when the fair value is negative.

s) Use of Estimates and judgement

The preparation of financial statements in
conformity with Ind AS requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the
financial statements and the results of operations
during the reporting period end. Although these
estimates are based upon management’s best
knowledge of current events and actions, actual
results could differ from these estimates.

The estimates and underlying assumptions are
reviewed at the end of each reporting period.
Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the
revision affects only that period, or in the period
of the revision and future periods if the revision
affects both current and future periods.

Critical accounting judgements and key
source of estimation uncertainty

The following are the key assumptions concerning
the future, and other 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 amounts of assets and
liabilities within the next financial year.

Useful lives of property, plant and
equipment and intangible assets

As described in the significant accounting policies,
the Company reviews the estimated useful lives
of property, plant and equipment and intangible
assets at the end of each reporting period. Useful
lives of intangible assets is determined on the basis
of estimated benefits to be derived from use of
such intangible assets. These reassessments may
result in change in the depreciation /amortisation
expense in future periods.

Fair value measurements and valuation
processes

Some of the Company’s assets and liabilities are
measured at fair value at each balance sheet date
or at the time they are assessed for impairment. In
estimating the fair value of an asset or a liability,
the Company uses market-observable data to the
extent it is available. Where Level 1 inputs are
not available, the Company engages third party
valuers, where required, to perform the valuation.
Information about the valuation techniques and
inputs used in determining the fair value of various
assets and liabilities require estimates to be made
by the management and are disclosed in the notes
to the financial statements.

Actuarial Valuation

The determination of Company’s liability towards
defined benefit obligation to employees is made
through independent actuarial valuation including
determination of amounts to be recognised in
the Statement of Profit and Loss and in Other
Comprehensive Income. Such valuation depend
upon assumptions determined after taking
into account discount rate, salary growth rate,
expected rate of return, mortality and attrition
rate. Information about such valuation is provided
in notes to the financial statements.

t) Fair value measurement

The Company measures certain financial
instruments at fair value at each reporting date.

Certain accounting policies and disclosures
require the measurement of fair values, for both
financial and non-financial assets and liabilities.

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 in the principal or, in
its absence, the most advantageous market
to which the Company has access at that date.
The fair value of a liability also reflects its non¬
performance risk.

The best estimate of the fair value of a financial
instrument on initial recognition is normally
the transaction price i.e. the fair value of the
consideration given or received. If the Company
determines that the fair value on initial recognition
differs from the transaction price and the fair value
is evidenced neither by a quoted price in an active
market for an identical asset or liability nor based

on a valuation technique that uses only data from
observable markets, then the financial instrument
is initially measured at fair value, adjusted to
defer the difference between the fair value on
initial recognition and the transaction price.
Subsequently that difference is recognised in the
Statement of Profit and Loss on an appropriate
basis over the life of the instrument but no later
than when the valuation is wholly supported by
observable market data or the transaction is
closed out.

While measuring the fair value of an asset or
liability, the Company uses observable market
data as far as possible. Fair values are categorised
into different levels in a fair value hierarchy based
on the inputs used in the valuation technique
as follows:

• Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices
included in Level 1 that are observable for
the assets or liabilities, 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)

u) Earnings per share

Basic earnings per share are calculated by dividing
the 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 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 effect of all dilutive potential
equity shares.

v) Cash and cash equivalents (for
purposes of Cash Flow Statement)

Cash and cash equivalents in the Balance sheet
majorly comprise cash in current accounts, cash
on hand and short-term deposits with an original
maturity of three months or less, which are subject
to an insignificant risk of changes in value. For
the purpose of the Statement of Cash Flows, cash
and cash equivalents consist of cash in current
accounts, cash on hand and short-term deposits,
as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company’s cash management.

2.3 I he amount of expenditure (other than borrowing cost) recognised in the carrying amount of property, plant and equipment
in the course of construction is '' 1.10 Crores (2023-24 : '' Nil Crores) out of which '' 0.07 Crores (2023-24 : '' Nil Crores)
is incurred in current year.

2.4 Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at
Taloja and specified properties located at Tarapur and movable fixed assets at these locations.

2.5 The Impairment expenses if any, have been included under ‘Depreciation, amortisation and impairment expenses’ and
Impairment reversals if any, have been included under ''Other Income'' in the Statement of Profit and Loss.

2.6 Plant and Equipment include '' 4.79 Crores (2023-24 '' Nil Crores) being cost of assets incurred by the Company, the ownership
of which vests with government company and '' 0.04 Crores (2023-24 '' Nil Crores) being accumulated depreciation thereon.

‘Figures less than '' 50,000.

3.1 The amortisation expenses of Right of use Asset have been included under ‘Depreciation, amortisation and impairment
expenses’ in the Statement of Profit and Loss.

3.2 Addition during the year include modification amounting to '' 0.23 Crores (2023-24: '' Nil Crores).

3.3 The Company had received an Order dated 5^th October 2024 from Gujarat Industrial Development Corporation (GIDC),
initiating proceedings to vacate the land for non-utilisation within the required period (Carrying value as of 31^st March 2025
is '' 73.74 crores). During the quarter ended 31^st December 2024, the Company was granted Interim Stay, and the matter
is currently subjudice. The Company is legally advised that it has a strong case. Based on management’s assessment
and pending legal proceedings, no provision has been considered necessary at this stage.

6.1 The Board of Directors of the Parent Company, in its meeting held on 21^st May, 2024 have resolved to revive the subsidiary
‘Galaxy Chemical Inc., USA'', which was earlier decided to be wound up. During the year, the Company has been renamed to
Galaxy Surfactants Americas Inc.and has started its operations. Hence the provision for diminution in value of investments
of '' 0.31 Crores is reversed in the current year.

6.2 The Company has made investments in its subsidiaries viz Galaxy Specialties Europe B.V., Tri-k Mexico S.A. de C.V.,
Galaxy Surfactants Mexico S.A. de C.V. which were incorporated during the year.

6.3 During the year the Company has redeemed Preference Shares of USD 1.29 Crores for '' 108.11 Crores at par. Income on
redemption aggregating '' 10.73 Crores (2023-24 '' Nil Crores) is recorded in Other Income. This income on redemption
of Preference Shares represents difference between redemption amount and carrying value at FVTPL.

Description of the nature and purpose of reserves in statement of changes in equity

Securities Premium: This reserve represents the premium on issue of equity shares received and can be utilized in accordance
with the provisions of the Companies Act, 2013.

General Reserve: This reserve is created by an appropriation from one component of equity (generally retained earnings) to
another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the
provisions of the Companies Act, 2013.

Retained Earnings: This reserve represents the cumulative profits of the Company and effects of remeasurement of defined
benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Information about major customers

During the year ended 31^st March, 2025 and 31^st March, 2024 respectively, Revenue from transaction with a single external
customer did not amount to 10% or more of the company''s revenue from external customers.

39 DETAILS OF RESEARCH AND DEVELOPMENT

Research and Development expenses for the year amount to '' 15.74 Crores (2023-24 : '' 13.70 Crores) debited to the
Statement of Profit and Loss.

40 DETAILS OF CSR EXPENDITURE

As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financials years on corporate social responsibility (CSR)
activities. The area for CSR activities are promoting healthcare including preventive healthcare; Promoting education,
including special education and employment enhancing vocational skills among children, women, elderly, and the differently
abled and livelihood enhancement projects; Rural development projects; Ensuring environmental sustainability, ecological
balance, protection of flora and fauna, agroforestry, conservation of natural resources and maintaining quality of soil, air
and water; Animal welfare; Empowering women.

44 EMPLOYEE BENEFITS

a. Defined contribution plan

The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying
employees. The Company has recognised '' 8.04 Crores (2023-24 - '' 7.35 Crores) for the year being Company''s contribution
to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.

b. Defined benefit plan
Gratuity plan

Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the
“Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who
has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service.
The Company makes an annual contribution to the group gratuity scheme administered by the insurance companies.

Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest risk

A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan''s assets.

Salary risk

The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.

Investment risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.

The current service cost and net interest cost for the year pertaining to Gratuity expenses have been recognised in
“Contribution to Provident and other funds” in the statement of Profit and loss (Refer Note 29). The remeasurements of
the net defined benefit liability are included in Other Comprehensive Income.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

#Includes benefits of '' Nil Crores (2023-24''2.03 Crores) paid by the Company.

45 CAPITAL MANAGEMENT

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders.
The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

47 FINANCIAL RISK MANAGEMENT FRAMEWORK

The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop
an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner.
The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both
external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation
solutions are determined to bring risk exposure levels in line with risk appetite. The Company''s risk management policies
and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company''s
business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest rate
risk and Commodity price risk.

A) Market Risk

The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial
instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income
and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are
explained below.

a) Interest Rate Risk

Interest rate risk results from changes in prevailing market interest rates, which can cause changes in the interest payments
of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities
carry interest at variable rates. The management is responsible for the monitoring of the Company''s interest rate position.
Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable,
competitive cost of funding.

b) Commodity Risk

The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do
not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw
materials may affect the Company''s business and results of operations. Management reviews the commodity price risk
regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to
hedge the price risk associated with the major raw material.

c) Currency Risk

The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated
in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency,
which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a
natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies
would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent ,the company uses foreign exchange
forward contracts to minimise the risk.

B) Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The
Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The company''s exposures
are continuously monitored and wherever necessary we take advances/LC''s to minimise the risk.

a) Trade Receivables, Advances, Contract Assets and Other Financial Assets

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which
permits the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed
expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward¬
looking information (including macroeconomic information) has been incorporated into the determination of expected
credit losses. Based on such information the company has evaluated that there is no provision required under expected
credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal
issues which require resolution against which specific provisions are made when found necessary.

b) Other Financial Assets

In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates
the carrying amount of each class of financial assets.

C) LIQUIDITY RISK

Liquidity risk management

Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities
that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have
sufficient liquidity or access to funds to meet our liabilities when they are due.

Maturity profile of financial liabilities

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed
undiscounted cash flows along with its carrying value as at the Balance Sheet date.

If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax
and Pre-tax Equity.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the
reporting period does not reflect the exposure during the year.

(B) Interest Rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rate for both long term & short
term borrowings.

The following table demonstrates the sensitivity in interest rates on that portion of loans and borrowings which are not
hedged, with all other variables held constant, the Company’s profit before tax is affected through the impact on floating
rate borrowings, as follows:

49 OFFSETTING OF BALANCES

The Company has not offset financial assets and financial liabilities.

50 COLLATERALS

The Company has borrowings which are secured by hypothecation of current assets, mortgage of immovable properties
located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations.

51 FAIR VALUE DISCLOSURES

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market or Net Asset Value ("NAV") for identical assets or liabilities.

Level 2: Inputs other than quoted price 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).

The fair value of financial instruments that are not traded in an active market is determined using market approach and
valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific
estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally
accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate
that reflects the credit risk of counterparty.

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be
equal to the carrying amounts of these items due to their short-term nature.

The fair value of the unquoted preference shares has been estimated using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit
risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in
management’s estimate of fair value for these unquoted preference share investments. The Company engages external,
independent and qualified valuers to determine the fair value of the preference shares investment.

Explanatory notes:

(i) Investments includes current and non-current investments including Fixed deposits excluding investments in Equity/
Preference instruments.

Explanation for change in the ratios by more than 25%:

(i) Debt Service Coverage Ratio (Times): The debt service coverage ratio is at 3.55 in current year as against 6.48
in previous year primarily due to higher repayment of long term borrowings during the year.

(ii) Net Capital Turnover Ratio (Times): The Capital Turnover Ratio is 7.76 in current year as against 6.03 in previous
year primarily due to higher sale as well as lower working capital.

55 OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceedings have been initiated or pending against
the Company for holding any Benami property.

(ii) The Company do not have any charges or satisfaction which are yet to be registered with the ROC beyond the
statutory period.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) The Company 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

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vi) 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).

56 IND-AS YET TO BE NOTIFIED

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. For the year ended 31^st March, 2025, MCA has not
notified any new standards or amendments to the existing standards applicable to the Company.

For and on behalf of the Board of Directors of
Galaxy Surfactants Limited

CIN No. L39877MH1986PLC039877

K. NATARAJAN VAIJANATH KULKARNI

Managing Director Executive Director & COO

DIN :07626680 DIN :07626842

ABHIJIT DAMLE NIRANJAN KETKAR

Chief Financial Officer Company Secretary

Place: Navi Mumbai
Date: 16^th May, 2025

---

Mar 31, 2024

n) Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company 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. In the event the time value of money is material provision is carried at the present value of the cash flows required to settle the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. 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.

Contingent assets are possible assets that arises 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. A contingent asset is disclosed, where an inflow of economic benefits is probable.

o) Government Grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the balance sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

In the unlikely event that a grant previously recognised is ultimately not received, it is treated as a change in estimate and the amount cumulatively recognised is expensed in the Statement of Profit and Loss.

p) Financial instruments, Financial assets, Financial liabilities and Equity instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through Profit and Loss) are added to or deducted from the fair value on

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

initial recognition of financial assets or financial liabilities. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through Profit and Loss are recognised immediately in the Statement of Profit and Loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Classification and subsequent measurement

Financial Assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place. All recognised financial assets are subsequently measured at either amortised cost or fair value depending on their respective classification.

On initial recognition, a financial asset is classified as measured at -

• Amortised cost; or

• Fair Value through Other Comprehensive Income (FVTOCI) ; or

• Fair Value Through Profit and Loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

All financial asset not classified as measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets.

Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in the Statement of Profit and Loss. Any gain and loss on derecognition is recognised in the Statement of Profit and Loss.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

For equity investments, the Company makes an election on an instrument-by-instrument basis to designate equity investments as measured at FVTOCI. These elected investments are measured at fair value with gains and losses arising from changes in fair value recognised in Other Comprehensive Income and accumulated in the reserves. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments. These investments in equity are not held for trading. Instead, they are held for medium or long-term strategic purposes. Upon the application of Ind AS 109, the Company has chosen to designate these investments as at FVTOCI as the Company believes that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in the Statement of Profit and Loss. Dividend income received on such equity investments are recognised in the Statement of Profit and Loss.

Equity investments that are not designated as measured at FVTOCI are designated as measured at FVTPL and subsequent changes in fair value are recognised in the Statement of Profit and Loss.

Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in the Statement of Profit and Loss.

Financial liabilities and equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company is recognised at the

tftotnl Sunken t& $a6&t SWwd*

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

proceeds received, net of directly attributable transaction costs.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading or it is a derivative or it is designated as such on initial recognition. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the Statement of Profit and Loss. Any gain or loss on derecognition is also recognised in the Statement of Profit and Loss.

Compound instruments

An issued financial instrument that comprises of both the liability and equity components are accounted as compound financial instruments. The fair value of the liability component is separated from the compound instrument and the residual value is recognised as equity component of financial instrument. The liability component is subsequently measured at amortised cost, whereas the equity component is not remeasured after initial recognition. The transaction costs related to compound instruments are allocated to the liability and equity components in the proportion to the allocation of gross proceeds. Transaction costs related to equity component is recognised directly in equity and the cost related to liability component is included in the carrying amount of the liability component and amortised using effective interest method.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Financial guarantee contracts and loan commitments

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts and loan commitments issued by the Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

• The amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

Impairment of financial assets

The Company applies the expected credit loss (ECL) model for recognising impairment loss on financial assets. With respect to trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12 month ECL. The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk of a default occurring since initial recognition. 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities under the Company recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the Statement of Profit and Loss.

q) Dividend Distribution

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

r) Derivative contracts:

The Company uses derivative financial instruments such as foreign exchange forward contracts and interest rate swaps to hedge its foreign currency risks which are not designated as hedges. All derivative contracts are marked-to-market and losses/gains are recognised in the Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

s) Use of Estimates and judgement:

The preparation of financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed at the end of each reporting period. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period

of the revision and future periods if the revision affects both current and future periods.

Critical accounting judgements and key source of estimation uncertainty

The following are the key assumptions concerning the future, and other 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 amounts of assets and liabilities within the next financial year.

Useful lives of property, plant and equipment and intangible assets

As described in the significant accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period. Useful lives of intangible assets is determined on the basis of estimated benefits to be derived from use of such intangible assets. These reassessments may result in change in the depreciation /amortisation expense in future periods.

Fair value measurements and valuation processes

Some of the Company’s assets and liabilities are measured at fair value at each balance sheet date or at the time they are assessed for impairment. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party valuers, where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities require estimates to be made by the management and are disclosed in the notes to the financial statements.

Actuarial Valuation

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in Other Comprehensive Income. Such valuation depend upon assumptions determined after taking into account discount rate, salary growth rate, expected rate of return, mortality and attrition rate. Information about such valuation is provided in notes to the financial statements.

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NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

t) Fair value measurement:

The Company measures certain financial instruments at fair value at each reporting date.

Certain accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

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 in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently that difference is recognised in the Statement of Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.

While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, 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)

u) Earnings per share

• Basic earnings per share are calculated by dividing the 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 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 effect of all dilutive potential equity shares.

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

37 THE AMOUNT AND EXPIRY DATE OF UNUSED CAPITAL LOSSES FOR WHICH NO DEFERRED TAX ASSET IS RECOGNISED IN THE BALANCE SHEET

'' Crores
Assessment Year	2024	2023	Available Up to A.Y.
2020-21	12.32	12.32	2028-29
2024-25	1.48	-	2032-33

38 SEGMENT INFORMATION

The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of Directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e. home and personal care ingredients.

Revenue from Type of Product and Services

There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external customers shown under geographical information is representative of revenue based on product and services.

Geographical Information

'' Crores

Particulars	2024			2023
	India	Overseas	Total	India	Overseas	Total
Revenue From External Customers	1,524.86	1,205.78	2,730.64	1,731.26	1,433.38	3,164.64
Non Current Assets*	841.58	-	841.58	747.51	-	747.51

* includes property plant and equipment, right of use asset, other intangible assets, capital work-in-progress, income tax assets (net) and other non-current assets.

Information about major customers

During the year ended 31^st March, 2024 and 31^st March, 2023 respectively, Revenue from transaction with a single external customer did not amount to 10% or more of the company''s revenue from external customers.

39 DETAILS OF RESEARCH & DEVELOPMENT

Research and Development expenses for the year amount to '' 13.70 Crores (2022-23 : '' 12.70 Crores) debited to the Statement of Profit and Loss.

40 DETAILS OF CSR EXPENDITURE

As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financials years on corporate social responsibility (CSR) activities. The area for CSR activities are promoting healthcare including preventive healthcare; Promoting education, including special education and employment enhancing vocational skills among children, women, elderly, and the differently abled and livelihood enhancement projects; Rural development projects; Ensuring environmental sustainability, ecological balance, protection of flora and fauna, agroforestry, conservation of natural resources and maintaining quality of soil, air and water; Animal welfare; Empowering women.

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

'' Crores

Entities where Key Management Personnel can exercise significant influence

'' Nature of Transactions No.

Subsidiary

Company

Key Management Personnel

Relatives of Key Management Personnel

	2023-24	2022-23	2023-24	2022-23	2023-24	2022-23	2023-24	2022-23
Other Expenses
Galaxy Chemicals (Egypt) S.A.E.	0.05	0.06	-	-	-	-	-	-
TRI-K Industries Inc.	0.22	0.03	-	-	-	-	-	-
Reimbursements received/ Receivable from parties
Galaxy Chemicals (Egypt) S.A.E.	0.74	0.76	-	-	-	-	-	-
TRI-K Industries Inc.	0.54	0.48	-	-	-	-	-	-
7 OUTSTANDINGS :
Payables
Galaxy Chemicals (Egypt) S.A.E.	3.55	2.27	-	-	-	-	-	-
TRI-K Industries Inc.	1.17	1.29	-	-	-	-	-	-
Receivables
Galaxy Chemicals (Egypt) S.A.E.	20.90	51.10	-	-	-	-	-	-
TRI-K Industries Inc.	22.84	6.79	-	-	-	-	-	-
Investments
Galaxy Chemicals Inc. (Equity Share)	0.15	0.15	-	-	-	-	-	-
Galaxy Holdings (Mauritius) Ltd (Equity Share)	2.37	2.37
Galaxy Holdings (Mauritius) Ltd (Preference Share at Fair value)	193.13	197.44	-	-	-	-	-	-
Loans and Advances
Galaxy Chemicals (Egypt) S.A.E.	0.66	0.90	-	-	-	-	-	-
TRI-K Industries Inc.	0.78	0.72	-	-	-	-	-	-
8 GUARANTEES GIVEN ON BEHALF OF SUBSIDIARIES:
Galaxy Chemicals (Egypt) S.A.E.	3.71	18.26	-	-	-	-	-	-

All Related Party Transactions entered during the year were in ordinary course of the business.

Note :

43.1 As the liabilities for defined benefit plans are provided on the basis of report of actuary for the Company as a whole, the amounts pertaining to Key Management Personnel are not included.

43.2 Includes commission on the basis of payments made during the year.

*Figures less than '' 50,000.

44 EMPLOYEE BENEFITS

a. Defined contribution plan

The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised '' 7.35 Crores (2022-23 - '' 6.62 Crores) for the year being Company''s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.

b. Defined benefit plan Gratuity plan

Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who

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NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The Company makes an annual contribution to the group gratuity scheme administered by the insurance companies.

Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest risk

A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan''s assets.

Salary risk

The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Investment risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

Gratuity as per actuarial valuation

'' Crores

Particulars

As at 31^st March Funded Plan Gratuity

			2024	2023
I Expense recognised in the Statement of Profit and Loss for the year
	1	Current service cost	2.04	1.88
	2	Interest cost on benefit obligation (net)	0.32	0.41
	3	Net value of remeasurements on the obligation and plan assets	-	-
	4	Past service cost and loss/(gain) on curtailments and settlement	-	-
	5	Total expenses included in employee benefits expenses	2.36	2.29
II	Recognised in other comprehensive income for the year
	1	Actuarial (gains)/ losses arising from changes in financial assumption	5.39	(0.64)
	2	Actuarial (gains)/ losses arising from changes in experience adjustment	1.25	0.87
	3	Actuarial (gains)/ losses arising from changes in demographic adjustment	-	(0.02)
	4	Return on plan asset	(0.50)	(0.06)
	5	Recognised in other comprehensive income	6.14	0.15
III	Change in the present value of defined benefit obligation
	1	Present value of defined benefit obligation at the beginning of the year	30.35	29.20
	2	Current service cost	2.04	1.88
	3	Interest cost/(income)	2.28	2.11
	4	Remeasurements (gains)/ losses
(I) Actuarial (gains)/ losses arising from changes in demographic assumption			-	(0.02)
(II) Actuarial (gains)/ losses arising from changes in financial assumption			5.39	(0.64)
(III) Actuarial (gains)/ losses arising from changes in experience adjustment			1.25	0.87
5	Past Service cost		-	-
6	Benefits paid#		(3.97)	(3.05)
7	Liabilities assumed/(settled)		-	-
8	Present value of defined benefit obligation at the end of the year		37.34	30.35
IV	Change in fair value of plan assets during the year
	1	Fair value of plan assets at the beginning of the year	26.10	23.55
	2	Interest income	1.96	1.70
	3	Contribution by employer	7.04	3.84
	4	Benefits paid	(194)	(3.05)
	5	Remeasurements (gains)/ losses
(I) Actuarial (gains)/ losses arising from changes in demographic assumption			-	-
(II) Actuarial (gains)/ losses arising from changes in financial assumption			-	-
(III) Actuarial (gains)/ losses arising from changes in experience adjustment			-	-

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NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024 45 CAPITAL MANAGEMENT

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

'' Crores

Particulars	2024	2023
Short term debt	40.99	80.43
Long term debt	79.97	102.79
Total	120.96	183.22
Equity	1,405.52	1,223.95
Long term debt to equity	0.06	0.08
Total debt to equity	0.09	0.15

46 CATEGORIES OF FINANCIAL INSTRUMENTS

'' Crores

Particulars		2024	2023
A)	Financial Assets
a)	Measured at amortised cost
i) Cash and Cash Equivalents		21.90	21.69
ii) Bank Balances other than Cash and Cash Equivalents		18.83	15.57
iii) Investment in Equity Shares		2.52	2.52
iv)	Loans	1.95	1.23
v)	Trade Receivables	454.81	457.80
vi)	Other Financial Assets	22.51	19.01
Sub-Total		522.52	517.82
b)	Measured at Fair value through Profit and Loss
i)	Investment in Preference Shares	193.13	197.44
ii) Investment in Debt Mutual Fund		24.05	-
Sub-Total		217.18	197.44
c)	Derivatives measured at fair value through Profit and Loss
i)	Derivative instruments not designated as hedging instruments	-	0.09
Sub-Total		-	0.09
Total Financial Assets		739.70	715.35
B)	Financial Liabilities
a)	Measured at amortised cost
i) Non-current Borrowings		45.68	79.93
ii) Current Borrowings		75.28	103.29
iii) Lease Liabilities		12.10	8.39
iv)	Trade Payables	364.35	373.40
v)	Other Financial Liabilities	12.40	6.77
Sub-Total		509.81	571.78
b)	Derivatives instruments measured at fair value through Profit & Loss
i)	Derivative instruments not designated as hedging instruments	0.40	-
Sub-Total		0.40	-
Total Financial liabilities		510.21	571.78

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

47 FINANCIAL RISK MANAGEMENT FRAMEWORK

The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are determined to bring risk exposure levels in line with risk appetite. The Company''s risk management policies and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company''s business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest rate risk and Commodity price risk.

A) Market Risk

The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below.

a) Interest Rate Risk

Interest rate risk results from changes in prevailing market interest rates, which can cause changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates. The management is responsible for the monitoring of the Company''s interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive cost of funding.

b) Commodity Risk

The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials may affect the Company''s business and results of operations. Management reviews the commodity price risk regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk associated with the major raw material.

c) Currency Risk

The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent ,the company uses foreign exchange forward contracts to minimise the risk.

The carrying amount of the company''s foreign currency exposure at the end of the reporting periods are as follows

In Crores

Particulars	US Dollar	Indian ''	Euro	Indian ''	Others (?)	Total (?)
As at 31st March, 2024
Borrowings	(0.03)	(2.50)	(0.06)	(5.49)	-	(7.99)
Trade Receivables & Other Financial Assets	2.26	188.08	0.17	14.94	-	203.02
Trade Payables & Other Financial Liabilities	(2.38)	(198.16)	-*	(0.17)	(0.10)	(198.43)
Total	(0.15)	(12.58)	0.11	9.28	(0.10)	(3.40)

SetpftUcn t& (fatal SWwd*

NOTES TO THE STANDALONE FINANCIAL STATEMENTS

for the year ended 31^st March, 2024

In Crores

Particulars	US Dollar	Indian ?	Euro	Indian ?	Others (?)	Total (?)
As at 31st March, 2023
Borrowings	(0.20)	(16.53)	(0.16)	(14.06)	-	(30.59)
Trade Receivables & Other Financial Assets	2.31	189.77	0.15	13.67	0.02	203.46
Trade Payables & Other Financial Liabilities	(2.72)	Mar 31, 2023 B. Rights, Preferences and Restrictions attached to Equity Shares The Company has only one class of equity shares having a par value of '' 10 per share. The Equity shares of the company rank pari-passu in all respects including voting rights and entitlement to dividend. I n 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. The distribution will be in proportion to the number of equity shares held by the shareholders. Description of the nature and purpose of reserves in statement of changes in equity Securities Premium: This reserve represents the premium on issue of equity shares received and can be utilized in accordance with the provisions of the Companies Act, 2013. General Reserve: This reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013. Retained Earnings: This reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013. 37 SEGMENT INFORMATION The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of Directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e. home and personal care ingredients. Revenue from Type of Product and Services There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external customers shown under geographical information is representative of revenue based on product and services. Information about major customers During the year ended 31st March, 2023 and 31st March, 2022 respectively, Revenue from transaction with a single external customer did not amount to 10% or more of the company''s revenue from external customers. 38 DETAILS OF RESEARCH & DEVELOPMENT Research and Development expenses for the year amount to '' 12.70 Crores (2021-22: '' 14.54 Crores) debited to the Statement of Profit and Loss. 39 DETAILS OF CSR EXPENDITURE As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend atleast 2% of its average net profit for the immediately preceding three financials years on corporate social responsibility (CSR) activities. The area for CSR activities are promoting healthcare including preventive healthcare; Promoting education, including special education and employment enhancing vocational skills among children, women, elderly, and the differently abled and livelihood enhancement projects; Rural development projects; Ensuring environmental sustainability, ecological balance, protection of flora and fauna, agroforestry, conservation of natural resources and maintaining quality of soil, air and water; Animal welfare; Empowering women. 40 CONTINGENT LIABILITY AND COMMITMENTS (A) Contingent liability '' Crores Particulars 2023 2022 (a) Corporate guarantees given to bank in connection with borrowings by subsidiary company 18.26 25.26 (b) Claims against the Company not acknowledged as debts comprise of claims disputed by the Company relating to issues of applicability, classification, deductibility, etc. (Refer Note below) - Excise duty & Service tax 7.27 7.27 - Income tax 0.97 0.97 - Sales tax & GST 3.77 5.09 - Custom duty 42.11 42.11 Note: Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities. (B) Commitments Estimated amount of contracts remaining to be executed of Property, Plant & Equipment (net of advances) and not provided for '' 57.18 Crores (2021-22: '' 43.79 Crores). Estimated amount of contracts remaining to be executed of Other Intangible assets (net of advances) and not provided for '' 0.75 Crores (2021-22: '' 0.48 Crores). 41 DISCLOSURE PURSUANT TO SECTION 186 (4) OF THE COMPANIES ACT, 2013 (a) Investments made The same are classified under respective heads. Refer Note 6. (b) Guarantees/Securities given The same are classified under respective heads for purposes of guarantees given for loan availments from banks by subsidiaries/associate companies. Refer Note 42. 43 EMPLOYEE BENEFITS a. Defined contribution plan The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised '' 6.62 Crores (2021-22 - '' 5.84 Crores) for the year being Company''s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss. b. Defined benefit plan Gratuity plan Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The Company makes an annual contribution to the group gratuity scheme administered by the insurance companies. Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest risk A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan''s assets. Salary risk The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. Investment risk For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence. The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are determined to bring risk exposure levels in line with risk appetite. The Company''s risk management policies and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company''s business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest rate risk and Commodity price risk. A) Market Risk The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below. a) Interest Rate Risk Interest rate risk results from changes in prevailing market interest rates, which can cause changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates. The management is responsible for the monitoring of the Company''s interest rate position. Various variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive cost of funding. b) Commodity Risk The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials may affect the Company''s business and results of operations. Management reviews the commodity price risk regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk associated with the major raw material. c) Currency Risk The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent, the company uses foreign exchange forward contracts to minimise the risk. B) Credit Risk Management Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The company''s exposures are continuously monitored and wherever necessary we take advances/LC''s to minimise the risk. a) Trade Receivables and Advances The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. Based on such information the company has evaluated that there is no provision required under expected credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal issues which require resolution against which specific provisions are made when found necessary. b) Other Financial Assets In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates the carrying amount of each class of financial assets. C) Liquidity Risk Liquidity risk management Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have sufficient liquidity or access to funds to meet our liabilities when they are due. 48 OFFSETTING OF BALANCES The Company has not offset financial assets and financial liabilities. 49 COLLATERALS The Company has borrowings which are secured by hypothecation of current assets, mortgage of immovable properties located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations. 50 FAIR VALUE DISCLOSURES Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Level 2: Inputs other than quoted price 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). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). I f one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty. The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. The fair value of the unquoted preference shares has been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted preference share investments. The Company engages external, independent and qualified valuers to determine the fair value of the preference shares investment. Explanatory notes: (i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade and Changes in inventories of finished goods, stock-in-trade and work-in-progress. (ii) I nvestments includes current and non-current investments including Fixed deposits excluding investments in Equity/ Preference instruments. Explanation for change in the ratios by more than 25%: (i) Debt-Equity Ratio (Times): The debt-equity ratio is healthier at 0.15 in current year as against 0.22 in previous year primarily due to repayment of borrowings during the year. (ii) Debt Service Coverage Ratio (Times): The debt service coverage ratio is healthier at 6.91 in current year as against 4.23 in previous year primarily due to increase in earnings available for Debt Service during the year. (iii) Return on Equity Ratio (%): Return on Equity is at 18.12% in current year against 12.43% in previous year due to higher profit for the year. (iv) Net Profit Ratio (%): The net profit improved to 6.80% in current year as against 5.12% in the previous year due to higher profit for the year. (v) Return on Capital Employed (%): Return on capital employed has improved to 21.02% in current year from 14.38% in previous year due to higher profit for the year. 54 OTHER STATUTORY INFORMATION (i) The Company does not have any Benami property, where any proceedings have been initiated or pending against the Company for holding any Benami property. (ii) The Company do not have any charges or satisfaction which are yet to be registered with the ROC beyond the statutory period. (iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year. (iv) The Company 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 (v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: a. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (vi) 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). 55 IND-AS YET TO BE NOTIFIED Ministry of Corporate Affairs (MCA), vide notification dated 31st March, 2023, has made the following amendments to Ind AS which are effective 1st April, 2023: (i) Amendments to Ind AS 1, Presentation of Financial Statements where the companies are now required to disclose material accounting policies rather than their significant accounting policies. (ii) Amendments to Ind AS 8, Accounting policies, Changes in Accounting Estimates and Errors where the definition of ‘change in account estimate’ has been replaced by revised definition of ‘accounting estimate’. The Company does not expect the above amendments to have any significant impact in its standalone financial statements. 56 The figures for the previous year have been regrouped/reclassified wherever necessary to conform to the current year''s presentation. Mar 31, 2022 The amount of expenditure (other than borrowing cost) recognised in the carrying amount of property, plant and equipment in the course of construction is '' 2.85 crores (2020-21 : '' 0.10 crores) out of which '' 1.25 Crores (2020-21 : '' Nil) is incurred in current year. Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations. The Company had provided for impairment of assets at one of its facilities at Tarapur location. The facility was established in 1984 and the civil structures and some of the other assets are nearing its useful life. The Company had identified such assets and had conservatively provided for the same by way of impairment. The operations at the said facility had been suboptimal for the past 2 years and we do not expect the said suspension to have any material impact on the operations of the Company. *Figures less than '' 50,000. 10.1 The cost of inventories recognised as an expense during the year was '' 2,180.40 Crores (2020-21 : '' 1,406.49 Crores). 10.2 The cost of inventories recognised as an expense includes '' 0.27 crores (2020-21 : '' 2.70 crores) in respect of write downs of inventory to net realisable value, and has been reduced by '' 0.59 crores (2020-21 : '' 0.47 crores) in respect of the reversal of such write downs. Previous write downs have been reversed as a result of internal consumption. 10.3 The company has availed bank facilities which are secured by hypothecation of inventories. 10.4 The mode of valuation of inventories is stated in sub-note (f) of Note 1B. Rights, Preferences and Restrictions attached to Equity Shares: The Company has only one class of equity shares having a par value of '' 10 per share. The Equity shares of the company rank pari-passu in all respects including voting rights and entitlement to dividend. I n 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. The distribution will be in proportion to the number of equity shares held by the shareholders. Description of the nature and purpose of reserves in statement of changes in equity Securities Premium: This Reserve represents the premium on issue of equity shares received and can be utilized in accordance with the provisions of the Companies Act, 2013. General Reserve: This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013. Retained Earnings: This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013. 15.3 Deferral sales-tax liability denotes interest-free sales tax deferral under ‘The Package Schemes of Incentives of 1988 and 1993’ formulated by the Government of Maharashtra. Sales tax deferral liability under the 1988 Scheme is repayable after 12 years in 6 annual instalments and in case of 1993 Scheme after 10 years in 5 annual instalments from the initial date of deferment of liability. 22.1 The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. No interest in terms of Section 16 of Micro, Small and Medium Enterprises Development Act, 2006 or otherwise has either been paid or payable or accrued and remaining unpaid as at 31st March 2022. 22.2 Trade payable - Other than Micro and Small Enterprises includes payable to subsidiary company '' 3.47 Crores (2020-21 '' 2.00 Crores). (Refer Note 42) 37 SEGMENT iNFORMATiON The operating segments have been reported in a manner consistent with the internal reporting provided to the Board of Directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and assessing the performance of operating segments. Accordingly, the reportable segments is only one segment i.e. home and personal care ingredients. Revenue from Type of Product and Services There is only one operating segment of the Company which is based on nature of product. Hence the revenue from external customers shown under geographical information is representative of revenue based on product and services. information about major customers During the year ended 31st March 2022 and 31st March 2021 respectively, revenue from transaction with a single external customer did not amount to 10% or more of the company’s revenue from external customers. 38 details of research & development Research and Development expenses for the year amount to '' 14.54 Crores (2020-21 : '' 13.00 Crores) debited to the Statement of Profit and Loss. 39 details of csr expenditure As per Section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend atleast 2% of its average net profit for the immediately preceding three financials years on corporate social responsibility (CSR) activities. The area for CSR activities are promoting healthcare including preventive healthcare; Promoting education, including special education and employment enhancing vocational skills among children, women, elderly, and the differently abled and livelihood enhancement projects; Rural development projects; Ensuring environmental sustainability, ecological balance, protection of flora and fauna, agroforestry, conservation of natural resources and maintaining quality of soil, air and water; Animal welfare; Empowering women; Disaster management, including relief (COVID 19 relief work). A CSR committee has been formed by the company as per the Act. Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities. (B) Commitments Estimated amount of contracts remaining to be executed of Property, Plant & Equipment (net of advances) and not provided for '' 43.79 Crores (2020-2021: '' 28.24 Crores). Estimated amount of contracts remaining to be executed of Other Intangible assets (net of advances) and not provided for '' 0.48 Crores (2020-2021: '' 0.77 Crores). All Related Party Transactions entered during the year were in ordinary course of the business and are on arm’s length basis. Note : 42.1 As the liabilities for defined benefit plans are provided on the basis of report of actuary for the Company as a whole, the amounts pertaining to Key Management Personnel are not included. ‘Figures less than '' 50,000. 43 EMPLOYEE BENEFiTSa. Defined contribution plan The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised '' 5.84 Crores (2020-21 : '' 5.14 Crores) for the year being Company’s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss. b. defined benefit plan Gratuity plan Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The Company makes an annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India. Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest risk A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan’s assets. Salary risk The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. investment risk For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. The current service cost and net interest cost for the year pertaining to Gratuity expenses have been recognised in “Contribution to Provident and other funds” in the statement of Profit and loss (Refer Note 28). The remeasurements of the net defined benefit liability are included in Other Comprehensive Income. The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. CAPITAL MANAGEMENT The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure. 46 FINANCIAL RiSK MANAGEMENT FRAMEWORK The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are determined to bring risk exposure levels in line with risk appetite. The Company’s risk management policies and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company’s business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest risks and Commodity price risk. A) Market Risk The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below. a) interest Rate Risk I nterest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed-rate instruments and changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates as well as fixed rates. The management is responsible for the monitoring of the Company’s interest rate position. Various variables are considered by the management in structuring the Company’s borrowings to achieve a reasonable, competitive cost of funding. b) Commodity Risk The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials may affect the Company’s business and results of operations. Management reviews the commodity price risk regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk associated with the major raw material. c) Currency Risk The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent ,the company uses foreign exchange forward contracts to minimise the risk. B) Credit Risk Management Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The company’s exposures are continuously monitored and wherever necessary we take advances/LC’s to minimise the risk. a) Trade Receivables and Advances The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables/advances. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. Based on such information the company has evaluated that there is no provision required under expected credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal issues which require resolution against which specific provisions are made when found necessary. b) Other Financials Assets In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates the carrying amount of each class of financial assets. C) Liquidity Risk Liquidity risk management Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have sufficient liquidity or access to funds to meet our liabilities when they are due. Maturity profile of financial liabilities The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date. If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equity. The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year. (B) interest Rate sensitivity The sensitivity analysis below have been determined based on exposure to interest rate for both long term & short term borrowings. 48 OFFSETTING OF BALANCES The Company has not offset financial assets and financial liabilities. 49 COLLATERALS The Company has borrowings which are secured by hypothecation of current assets, mortgage of immovable properties located at Taloja and specified properties located at Tarapur and movable fixed assets at these locations. 50 FAIR VALUE DISCLOSURES Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Level 2: Inputs other than quoted price 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). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty. The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. The fair value of the unquoted preference shares has been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted preference share investments. The Company engages external, independent and qualified valuers to determine the fair value of the preference shares investment. 54 OTHER STATUTORY INFORMATION (i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property. (ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. (iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year. (iv) 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 (v) 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 (vi) 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). 55 IND-AS YET TO BE NOTIFIED 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 March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below: Ind AS 103 - Reference to Conceptual Framework The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. Ind AS 16 - Proceeds before intended use The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification. Ind AS 109 - Annual Improvements to Ind AS (2021) The amendment clarifies the treatment of any cost or fees incurred by an entity in the process of derecognition of financial liability in case of repurchase of the debt instrument by the issuer. Ind AS 106 - Annual improvements to ind AS (2021) The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the above amendments to have any significant impact in its standalone financial statements. 56 The figures for the previous year have been regrouped/reclassified wherever necessary to conform to the current year’s presentation. Mar 31, 2021 The amount of expenditure (other than borrowing cost) recognised in the carrying amount of property, plant and equipment in the course of construction is '' 0.10 crores (2019-20''1.47 crores) out of which '' Nil (2019-20''0.70 crores) is incurred in current year. Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at Taloja and specified properties located at Jhagadia & Tarapur. The Company has provided for impairment of assets at one of its facilities at Tarapur location. The facility was established in 1984 and the civil structures and some of the other assets are nearing its useful life. The Company has identified such assets and has conservatively provided for the same by way of impairment. The operations at the said facility had been suboptimal for the past 2 years and we do not expect the said suspension to have any material impact on the operations of the Company. 9.1 The cost of Inventories recognised as an expense during the year was '' 1,406.49 Crores (2019-20 : '' 1,386.60 Crores). 9.2 The cost of Inventories recognised as an expense includes '' 2.70 crores (2019-20 : '' 1.09 crores) in respect of write downs of inventory to net realisable value, and has been reduced by '' 0.47 crores (2019-20 : '' 0.59 crores) in respect of the reversal of such write downs. Previous write downs have been reversed as a result of internal consumption. 9.3 The company has availed bank facilities which are secured by hypothecation of inventories. 9.4 The mode of valuation of inventories is stated in sub-note (f) of Note 1B. 9.5 The Company determines the realisable value of inventory based on the latest selling prices, customer orders on hand and margins, adjusted to reflect current and estimated future economic conditions also taking into account estimates of possible effect from the pandemic relating to COVID-19. 2 Also refer note 44(B) for disclosure related to Credit risk, Impairment of trade receivable under Expected Credit Loss and related disclosures. 3 The company has availed bank facilities which are secured by hypothecation of Trade Receivables. 4 The Company has considered subsequent recoveries, past trends, credit risk profiles of the customers based on their industry, macroeconomic forecasts and internal and external information available to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19. . Rights, Preferences and Restrictions attached to Equity Shares The Company has only one class of equity shares having a par value of '' 10 per share. The Equity shares of the company rank pari-passu in all respects including voting rights and entitlement to dividend. I n 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. The distribution will be in proportion to the number of equity shares held by the shareholders. Description of the nature and purpose of reserves in statement of changes in equity Securities Premium: This Reserve represents the premium on issue of equity shares received and can be utilized in accordance with the provisions of the Companies Act, 2013. General Reserve: This Reserve is created by an appropriation from one component of equity (generally retained earnings) to another, not being an item of Other Comprehensive Income. The same can be utilized by the Company in accordance with the provisions of the Companies Act, 2013. Retained Earnings: This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013. (B) Commitments Estimated amount of contracts remaining to be executed of Property, Plant & Equipments (net of advances) and not provided for '' 28.24 Crores ( 2019-2020: - '' 46.06 Crores). Estimated amount of contracts remaining to be executed of Other Intangible assets (net of advances) and not provided for '' 0.77 Crores ( 2019-2020: - '' 1.09 Crores). 39 DISCLOSURE PURSUANT TO SECTION 186 (4) OF THE COMPANIES ACT, 2013a. investments made The same are classified under respective heads. Refer Note 5. b. Guarantees/Securities given The same are classified under respective heads for purposes of guarantees given for loan availments from banks by subsidiaries/ associate Companies. Refer Note 40. Notes : 40.1 As the liabilities for defined benefit plans are provided on the basis of report of actuary for the Company as a whole, the amounts pertaining to Key Management Personnel are not included. 40.2 Figures for the year ended 31st March, 2021 for Key Management Personnel is less than '' 50,000. 41 EMPLOYEE BENEFiTSa. Defined contribution plan The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised '' 5.14 Crores (2019-20: '' 4.82 Crores) for the year being Company’s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss. b. defined benefit plan Gratuity plan Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The Company makes an annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India. Through its gratuity plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Interest risk A decrease in the bond interest rate will increase the plan liability and will decrease the return on the plan’s assets. Salary risk The present value of the Gratuity liability is calculated by reference to the estimated future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. investment risk For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. 44 FINANCIAL RiSK MANAGEMENT FRAMEWORK The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are determined to bring risk exposure levels in line with risk appetite. The Company’s risk management policies and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Company’s business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest risks and Commodity price risk. A) Market Risk The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below. a) interest Rate Risk I nterest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed-rate instruments and changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates as well as fixed rates. The management is responsible for the monitoring of the Company’s interest rate position. Various variables are considered by the management in structuring the Company’s borrowings to achieve a reasonable, competitive cost of funding. To a certain extent we use interest rate swap to minimise the risk. b) Commodity Risk The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials may affect the Company’s business and results of operations. Management reviews the commodity price risk regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk associated with the major raw material. c) Currency Risk The Company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent ,the company uses foreign exchange forward contracts to minimise the risk. B) Credit Risk Management Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The company’s exposures are continuously monitored and wherever necessary we take advances/LC’s to minimise the risk. a) Trade Receivables and Advances The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses. Based on such information the company has evaluated that there is no provision required under expected credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal issues which require resolution against which specific provisions are made when found necessary. b) Other Financials Assets In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates the carrying amount of each class of financial assets. C) liquidity risk Liquidity risk management Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have sufficient liquidity or access to funds to meet our liabilities when they are due. 46 OFFSETTING OF BALANCES The Company has not offset financial assets and financial liabilities. 47 COLLATERALS The Company has long term loans and working capital loans which are secured by hypothecation of current and movable assets and mortgage of immovable properties located at Taloja and specified properties located at Jhagadia & Tarapur. 48 FAIR VALUE DISCLOSURES Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Level 2: Inputs other than quoted price 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). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). I f one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty. The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. The fair value of the unquoted preference shares has been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted preference share investments. The Company engages external, independent and qualified valuers to determine the fair value of the preference shares investment. 51 IND-AS YET TO BE NOTIFIED Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards. There is no such notification which would have been applicable from 1st April, 2021. 52 The figures for the previous year have been regrouped/reclassified wherever necessary to conform to the current year’s presentation. Mar 31, 2018 1. (A) CORPORATE INFORMATION Galaxy Surfactants Ltd (“the Company”) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The address of its registered office is disclosed in the introduction to the Annual Report. The Company is engaged in manufacturing of surfactants and other speciality ingredients for the personal care and home care industries. Our products find application in a host of consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products. The Company has completed Initial Public offerings (IPO) of 63,31,674 shares of Rs.10 each at an offer price of Rs.1480 per Equity Share aggregating to Rs.937,08,77,520, through offer for sale. The Equity Shares of the Company were listed on 8th February, 2018 on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). 2.1 The amount of expenditures(other than borrowing cost) recognised in the carrying amount of property, plant and equipment in the course of construction is Rs.0.05 Crores ( 2016-17 Rs.1.87 Crores) out of which Rs.0.05 Crores (201617 Rs.0.48 Crores) is incurred in current year. 2.2 Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur. 3.1 Includes Rs.0.48 Crores (2016-17 Rs.2.27 Crores, 2015-16 Rs.4.66 Crores ) advances to related parties. (Refer Note. 38) 3.2 Other Financial assets (Current) as at 31st March 2018 represents amounts recoverable in respect of expenses incurred on initial public offering (Offer for sale) of equity shares of the company. 4.1 Other advances mainly include Advances to suppliers, etc. 5.1 The cost of Inventories recognised as an expense during the year in respect of continuing operations was Rs.1382.20 Crores (for the year ended March 31, 2017 : Rs.1222.20 Crores ) 5.2 The cost of Inventories recognised as an expense includesRs.0.30 Crores(During 2016-17: Rs.0.29 Crores) in respect of write downs of inventory to net realisable value, and has been reduced byRs.0.08 Crores (During 2016-17 : Rs.0.25 Crores) in respect of the reversal of such write downs. Previous write downs have been reversed as a result of internal consumption. 5.3 The company availed bank facilities which are secured by hypothication of inventories 5.4 The mode of valuation of inventories is stated in sub-note (f) of Note 1B 6.1 Includes Rs.48.12 Crores (2016-17 Rs.60.68 Crores, 2015-16Rs.50.62 Crores) receivable from subsidiaries. (Refer Note. 38) B. Rights, Preferences and Restrictions attached to Equity Shares The Company has only one class of equity shares having a par value of Rs.10 per share. The Equity shares of the company rank pari-passu in all respects including voting rights and entitlement to dividend. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. As per the records of the Company, including its register of shareholders/members and other declarations received from the shareholders regarding the beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. 7.1 Term loans from banks are secured by first pari passu charge created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present and future movable assets, and by second pari passu charge created by hypothecation of current assets, both present and future. 7.2 Terms for secured borrowings: 7.3 Deferral sales-tax liability denotes interest-free sales tax deferral under The Package Schemes of Incentives of 1988 and 1993 formulated by the Government of Maharashtra. Sales tax deferral liability under the 1988 Scheme is repayable after 12 years in 6 annual installments and in case of 1993 Scheme after 10 years in 5 annual installments from the initial date of deferment of liability. 8.1 Includes Rs. NIL (2016-17 Rs. NIL, 2015-16 Rs.0.43 Crores) due to related parties. (Refer Note. 38) 8.2 Other liabilities mainly include capital creditors, etc. 8.3 There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at the year end. 7.1 Others mainly include government dues & taxes payable, salary deductions payable etc. 7.2 The Deferred revenue arises as a result of the benefit received by the company on import of capital equipment’s under the ‘Export Promotion Capital Goods’ Scheme of the Central Government at a concessional/zero rate of custom duty. Consequently, the Company has assessed that it has saved custom duty aggregating to Rs.0.51 Crores in respect of property, plant and equipment used in manufacturing process. The exemption from payment of customs duty represents transfer of resources by the Government and therefore in scope of Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”. The deferred income will be amortized over the estimated remaining useful life of property, plant and equipment which will be offset by incremental depreciation consequent to increase in carrying value of property, plant and equipment. 8.1 Loans and Advances on packing credit account from banks are secured by first pari passu charge created by hypothecation of current assets, both present & future, and second pari passu charge created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present and future movable assets. 8.2 Rate of Interest for loans ranges from 1.10% p.a. to 6.50% p.a. 9.1 Micro, Small and Medium enterprises have been identified by the Company on the basis of the information available. Total outstanding dues of Micro and Small enterprises, which are outstanding for more than the stipulated period are given below : 9.2 Trade payable - Other than micro and small enterprises includes payable to subsidiary company Rs.3.32 Crores ( 2016-17 Rs.0.18 Crores, 2015-16 Rs.1.78 Crores).(Refer Note. 38) 10.1 Includes Rs.1.07 Crores (2016-17 Rs.2.21 Crores) overdue interest received from step down subsidiaries. (Refer Note. 38) 10.2 Others includes interest subvention, refund received, etc. 11.1 The weighted average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is Nil ( 2016-17 :10.73%) 12. SEGMENT INFORMATION The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Board of directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e. home and personal care ingredients. Revenue from Type of Product and Services There is only one operating segment of the company which is based on nature of product. Hence the revenue from external customers shown under geographical information is representative of revenue based on product and services. * Includes property plant and equipments, intangible assets, capital working in progress and other non-financial non current assets. Information about major customers During the year ended 31st March 2018 & 31st March 2017, revenue from transaction with a single external customer did not amount to 10% or more of the companies revenue from external customer. 13. DETAILS OF RESEARCH & DEVELOPMENT Research and Development expenses for the year amount to Rs.13.62 Crores (2016 -17 Rs.13.19 Crores) debited to the Statement of Profit & Loss. 14. DETAILS OF CSR EXPENDITURE The details of Expenditure incurred on Corporate Social Responsibility (CSR) activities- are as below: *Figures less than Rs.50,000 In respect of (b) & (c) above, it is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any. (B) Commitments Estimated amount of contracts remaining to be executed of Property, Plant & Equipments (net of advances) and not provided for Rs.24.67 Crores (2016-17 Rs.1.88 Crores, 2015-16 Rs.9.68 Crores) Estimated amount of contracts remaining to be executed of Intangible assets (net of advances) and not provided for Rs.0.29 Crores (2016-17- Rs.1.04 Crores, 2015-16 Rs.0.12 Crores) 15. DISCLOSURE PURSUANT TO SECTION 186 (4) OF THE COMPANIES ACT, 2013 a. Investments made The same are classified under respective heads. Refer Note 4 b. Guarantees/Securities given The same are classified under respective heads for purposes of guarantees given for loan availments from banks by subsidiaries/ associate Companies. Refer Note 38. c. Loans given The above loan given is interest free and has been classified under Non-current loans. The aforesaid loan is granted to Galaxy Surfactants Ltd - Employees’ Welfare Trust, which has been given by the Company for the benefit of the employees. Refer Note 5. 16. EMPLOYEE BENEFITS a. Defined contribution plan The Company makes contributions towards Provident Fund, Employee’s State Insurance Corporation (ESIC) for qualifying employees. The Company has recognised Rs.3.64 Crores (2016-17 - Rs.3.48 Crores) for the year being Company’s contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss. b. Defined benefit plan Gratuity plan Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the “Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The Company makes an annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India. c. Other long term employee benefit plan Leave plan Under the leave benefit plan, employees are entitled to 30 days of leave for every completed year of service, which they can avail during their service period. The plan is not funded by the Company. Eligible employees can carry forward and encash leave on separation from the service as per the Company’s rules. Through its gratuity and leave plans the Company is exposed to a number of risks, the most significant of which are detailed below: Interest risk A decrease in the bond interest rate will increase the plan liability; however, In case of gratuity plan this will be partially offset by an increase in the return on the plan’s assets Longevity risk The present value of Gratuity and leave plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan’s liability. Salary risk The present value of the Gratuity and leave plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. Investment risk For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period. The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Gratuity and leave plan obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Gratuity and leave plan Obligation presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year. The current service cost and net interest cost for the year pertaining to Gratuity expenses have been recognised in “Contribution to Provident and other funds” in the statement of Profit and Loss account. The remeasurements of the net defined benefit liability are included in Other Comprehensive Income. The leave encashment expenses have been recognised as part of “Salaries and wages” in the statement of Profit and Loss account. The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. 17. OPERATING LEASES The Company’s significant leasing arrangements are in respect of operating leases for job working and building premises (residential, offices, godowns etc.) Out of these leasing arrangements, some are non-cancellable for a period ranging between 1 to 3 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as ‘Rent’ in the statement of Profit and Loss With regard to some non-cancellable operating leases, the future minimum rentals are as follows 18. CAPITAL MANAGEMENT The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, customer, creditors and market confidence. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure. 19. FINANCIAL RISK MANAGEMENT FRAMEWORK The company has formulated and implemented a policy on risk management, as approved by the Board, so as to develop an approach to identify, assess and manage the various risks associated with our business activities in a systematic manner. The policy lays down guiding principles on proactive planning for identifying, analysing and mitigating material risks, both external and internal, and covering operational, financial and strategic risks. After risks have been identified, risk mitigation solutions are determined to bring risk exposure levels in line with risk appetite. The companies risk management policies and systems are reviewed regularly to reflect changes in market conditions and our business activities. The Companies business activities are exposed to a variety of financial risks, namely Credit risk, Liquidity risk, Currency risk, Interest risks and Commodity price risk. Market Risk The Company’s size and operations result in it being exposed to the market risks that arise from its use of financial instruments namely Currency risk, Interest risks and Commodity price risk. These risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below. (a) Interest Rate Risk Interest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed-rate instruments and changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates as well as fixed rates. The management is responsible for the monitoring of the Companies interest rate position. Various variables are considered by the management in structuring the Company’s borrowings to achieve a reasonable, competitive cost of funding. To a certain extent we use interest rate swap to minimise the risk. (b) Commodity Risk The company is exposed to the price risk associated with purchasing of the raw materials. The company typically do not enter into formal long term arrangements with our vendors. Therefore, fluctuations in the price and availability of raw materials may affect the companies business and results of operations. Management reviews the commodity price risk regularly to avoid material impact on profitability of the company. There are no direct commodity derivatives available to hedge the price risk associated with the major raw material. (c) Currency Risk The company is exposed to exchange rate risk as a significant portion of our revenues and expenditure are denominated in foreign currencies. We import certain of our raw materials, the price of which we are required to pay in foreign currency, which is mostly the U.S. Dollar or Euro. Products that we export are paid for in foreign currency, which together acts as a natural hedge. Any appreciation/depreciation in the value of the Rupee against U.S. dollar, Euro or other foreign currencies would Increase/decrease the Rupee value of debtors/ creditors. To a certain extent the company uses foreign exchange forward contracts to minimise the risk. 20. CREDIT RISK MANAGEMENT Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. The Company’s customer base majorly has creditworthy counterparties which limits the credit risk. The companies exposures are continuously monitored and wherever necessary we take advances/LC’s to minimise the risk. 21. TRADE RECEIVABLES AND ADVANCES The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables/Advances. The company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has evaluated incorporated into the determination of expected credit losses. Based on such information the company has evaluted that there is no provision required under expected credit loss model. Further, the company reviews on a periodic basis all receivables/advances having commercial/legal issues which require resolution against which specific provisions are made when found necessary 22. OTHER FINANCIAL ASSETS In respect of other financial assets, the maximum exposure to credit risk at the end of the reporting period approximates the carrying amount of each class of financial assets. 23. LIQUIDITY RISK (i) Liquidity risk management Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure that we have sufficient liquidity or access to funds to meet our liabilities when they are due. Maturity profile of financial liabilities The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date. 24. SENSITIVITY ANALYSIS Foreign Currency Sensitivity The following table demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equity Effect. The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year. Interest Rate sensitivity The sensitivity analysis below have been determined based on exposure to interest rate for both Term Loans & Working Capital loans. The following table demonstrates the sensitivity in interest rates on that portion of loans and borrowings which are not hedged, with all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows: If the change in rates decline by a similar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-tax Equity Effect. 25. OFFSETTING OF BALANCES: The Company has not offset financial assets and financial liabilities. 26. COLLATERALS The Company has long term loans and working capital loans which are secured by hypothecation of current and movable assets and mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur 27. FAIR VALUE DISCLOSURES Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Level 2: Inputs other than quoted price 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). The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty. The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. There were no transfers between Level 1 and Level 2 during the year. 28. IND-AS YET TO BE NOTIFIED a. Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. There is no material impact of this amendment on its financial statements. b. Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits two possible methods of transition: - Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors - Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. There is no material impact of this amendment on its financial statements. 29. PROFIT AND EQUITY RECONCILIATION- STANDALONE (i) I nd AS 101 (First-time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the Opening Balance Sheet as per Ind AS of 1st April, 2016 (the transition date) by: a. recognising all assets and liabilities whose recognition is required by Ind AS, b. not recognising items of assets or liabilities which are not permitted by Ind AS, c. reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS required under Ind AS, and d. applying Ind AS in measurement of recognised assets and liabilities (ii) A. Reconciliation of total comprehensive income for the year ended 31st March, 2017 is summarised as follows: B. Reconciliation of total equity as reported under previous GAAP is summarised as follows : Notes: iii) Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in the financial statements: a. Ind AS 103 (Business Combinations) has not been applied retrospectively to business combinations that occurred prior to 1st April, 2016. Use of this exemption means that in the opening Balance Sheet, goodwill/ capital reserve and other assets and liabilities acquired in previous business combinations remain at the previous GAAP carrying values. b. Property, plant and equipment and intangible assets were carried at cost in the Balance Sheet prepared in accordance with previous GAAP on 31st March, 2016. Under Ind AS, the Company has elected to apply IND AS 16 - Property, Plant and Equipment retrospectively at the date of transition. c. Under previous GAAP, investment in subsidiaries were stated at cost and provisions made to recognise the decline, other than temporary. Under Ind AS, the Company has considered their previous GAAP carrying amount as their deemed cost. Under IND AS, financial assets in equity instruments [ Other than those in subsidiary ] and preference instruments have been classified as fair value through profit and loss at the time of transition. d. The Company has applied Appendix C of Ind AS 17 (Leases) - ‘Determining whether an Arrangement contains a Lease’ to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date. e. Under previous GAAP, interest free sales tax deferment loan was carried at cost. Under Ind AS, such interest free loans have been carried at previous GAAP amount at the date of transition. (iv) In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017 are detailed below: a. The Company uses derivative financial instruments, such as currency forwards, options, to hedge its foreign currency risks. Under Ind AS changes in the fair value of any derivative instruments that are not designated for hedge accounting are recognised in the Statement of Profit and Loss. b. Under previous GAAP, actuarial gains and losses related to the defined benefit schemes for gratuity and pension plans and liabilities towards employee leave encashment were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/asset which is recognised in OCI. Consequently, the tax effect of the same has also been recognised in OCI instead of profit or loss. c. Under Ind AS Loan processing fees / transaction costs are considered for calculating effective interest rate. The impact for the periods subsequent to the date of transition is reflected in the Statement of Profit and Loss. Mar 31, 2014 1. Share Capital a. Rights, Preferences and Restrictions attached to Equity shares The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. b. Details of shareholders holding more than 5% shares in the Company: As per the records of the Company, including its register of shareholders/members and other declarations received from the shareholders regarding the beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. 2. Long Term Borrowing 2.1. Term loans from banks are secured by first pari passu charge created / to be created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present & future movable assets, and by second pari passu charge created / to be created on current assets, both present and future. 2.2. Fixed deposits from public includes cumulative deposits with maturity period of 3 years carrying rate of interest 11% and non-cumulative fixed deposits with maturity period of 2 to 3 years carrying interest from 10% to 11% p.a. Interest on cumulative deposits is paid half yearly on compounding basis on maturity and interest in respect of non-cumulative deposits is paid quarterly. 2.3. Deferral sales-tax liability denotes interest-free sales tax deferral under the package schemes of incentives of 1988 and 1993 formulated by the Government of Maharashtra. Sales tax deferral liability under the 1988 scheme is repayable after 12 years in 6 annual installments and in case of 1993 scheme after 10 years in 5 annual installments from the initial date of deferment of liability. 3. Short Term Borrowings 3.1 Working Capital Loans from banks are secured by first pari passu charge created by hypothecation of current assets, both present & future, and second pari passu charge created/to be created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present and future movable assets. 3.2 Rate of Interest for rupee loans ranging from 9.75% p.a. to 11.5% p.a. and for foreign currency loans from 3% to 5%. 4 Trade Payables 4.1 Disclosure of outstanding dues of Micro Small and Medium Enterprise under trade payables is based on the information available with the company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue as on March 31, 2014, to Micro, Small and Medium Enterprises on account of principal or interest (Previous year Rs. Nil). 4.2 Others include: a. Acceptances of Rs. 18.38 Crore (Previous year Rs. 23.21 Crore). b. Payable to subsidiary company Rs. 0.26 Crore (Previous year: Rs.0.52 Crore) (Refer Note 36). 5 Other Current Liabilities 5.1 Includes Rs. 1.53 Crore (Previous Year Rs. 1.53 Crore) due to related parties. 5.2 There are no amounts due for payment to the Investor Education and Protection Fund under Sectio 205C of the Companies Act, 1956 as at the year end. 5.3 Includes Rs.0.01 Crore (Previous Year Nil) due to related parties. 5.4 Includes Rs. 0.41 Crore (Previous Year Rs. 0.25 Crore) due to related parties. 6. Fixed Assets 6.1 Buildings includes shares in Co-Operative Soceity of Rs. - * Crore (Previous Year Rs. - * Crore) 6.2 Deletions in intangible assets denotes softwares discarded during the year. * Figure less than Rs. 1,00,000 7. Cash & Bank Balances 7.1 Margin money against term loans. 7.2 Includes deposits pledged with bank as lien against bank guarantees Rs. 0.15 Crore (Previous Year: Rs. 0.17 Crore) 7.3 Includes deposits Rs. - * (Previous Year Rs. - *) pledged with Sales tax authorities. 8. Contigent Liabilities and Claims not provided for: Figures in Rs. Crore Particulars 31st March 2014 31st March 2013 (a) Counter guarantees given to banks 27.55 34.43 (b) Corporate guarantees given to bank on behalf of subsidiary company, to the extent borrowings outstanding 142.85 133.72 (c) Export bills discounted [Including factored debts with recourse option Rs. 47.18 Crore (Previous year Rs.50.25 Crore)] 56.65 64.28 (d) Letter of credit outstanding 41.75 14.49 (e) Claims against the Company not acknowledged as debts Excise duty 2.59 0.22 Income tax 6.31 6.15 Sales tax 0.51 - Cess on electricity 0.91 (f) Custom duty liability in case of non-fulfilment of export obligation 0.63 9 Derivative Instruments: The Company uses forward exchange contracts to hedge its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. 10 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements. 11 Disclosure as per Accounting Standard 15 (Revised) - Employee Benefits: The Company has adopted Revised Accounting Standard on Employee Benefits (AS-15) issued by the Institute of Chartered Accountants of India. The following disclosures are made as required under AS-15: (a) Defined Contribution Plan: The Company makes contributions towards provident fund and other retirement benefits to a defined contribution retirement benefit plan for qualifying employees. The Company has recognised Rs. 2.52 Crore (Previous Year Rs. 2.48 Crore) being Company''s contribution to Provident Fund and ESIC contribution, as an expense and included in Employee Benefit Expenses [Refer Note 25] in the Statement of Profit and Loss. (b) Defined Benefit Plans: General Description of Defined Benefit Plans Gratuity Plan Gratuity is payable to all eligible employees of the Company on separation from the service, in terms of the provisions of the "Gratuity Act, 1972” and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least 5 years of service gets a gratuity at 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy. Leave Plan Under the leave benefit plan, employees are entitled to 30 days of leave for every completed year of service, which they can avail during their service period. The plan is not funded by the Company. Eligible employees can carry forward and encash leave on separation from the service as per the Company''s rules The following tables summarize the funded status and amounts recognised in the Balance Sheet and the components of net benefit/ expense recognised in the Statement of Profit and Loss for the respective plans. 12 Segment Reporting (Accounting Standard 17): a. Primary Segment : Business Segment The Company is engaged in the manufacture of specialty chemicals which is considered as the only business segment. b. Secondary Segment : Geographical Segment 13 Disclosure as per Accounting Standard 18 - Related Parties: a] Names of the Related Parties and nature of relationship: Direct Subsidiaries: Galaxy Chemicals Inc. Galaxy Holdings (Mauritius) Ltd. Step down Subsidiaries Galaxy Chemicals (Egypt) S.A.E Rainbow Holdings GmbH TRI-K Industries Inc. Key management personnel and their relatives: Key Management Personnel Relative of Key Management Personnel [Whole-time Directors] Mr. U. Shekhar Mrs. Lakshmy Shekhar, Wife Mr. Karthik Shekhar, Son Ms. Nandini Shekhar, Daughter Mr. S. R. Shanbhag Mrs. Vandana Shanbhag, Wife Mrs. Sneha Salil Save, Daughter Mr. Pranav Shanbhag, Son Mr. G. Ramakrishnan Mrs. Jayashree Ramakrishnan, Wife Mr. Amit Ramakrishnan, Son Mr. Akaash Ramakrishnan, Son Mr. U. K. Kamat Mrs. Dhanvanti Kamat, Wife Mr. Paresh Kamat, Son Ms. Mallika Kamat, Daughter Entities over which key management personnel are able to exercise significant influence: Galaxy Emulsifiers Private Limited Galaxy Finsec Private Limited Osmania Traders Private Limited Galaxy Chemicals [Partnership Firm] Galaxy Estates & Holdings [Partnership Firm] Galaxy Investments [Partnership Firm] Shubh Estates & Properties [Partnership Firm] Galaxy Surfactants Limited - Employees'' Welfare Trust 14 Operating Lease: Assets taken on Operating Lease: The Company has entered into Operating Lease agreements towards use of godowns, offices and residential premises for its employees. Most of the lease agreements provide for cancellation by either party with a notice period of 30 days. Lease rental payments recognised in the Statement of Profit and Loss for the year are Rs. 1.14 Crore (Previous Year Rs. 1.80 Crore). 15 Previous Year Figures: The figures for the previous year have been regrouped wherever necessary to conform to current year''s classification. Mar 31, 2013 A Corporate Information Galaxy Surfactants Ltd ("the Company") is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in manufacturing and marketing surfactants and specialty chemicals for the Personal and Home Care Industry. The Company produces a range of vital cosmetic ingredients including active ingredients, UV protection and functional products. The Company''s products cater to some of the largest global brands in the FMCG sector and find applications in skin care, hair care, oral care, body wash, sun care, household cleaners and fabric care segments. The Company has manufacturing facilities located at Taloja, Tarapur (Maharashtra) and Jhagadia (Gujarat) and a depot outlet at Delhi. 1 Contingent Liabilities and Claims not provided for (a) Counter Guarantees given to Banks 34.43 7.48 (b) Corporate Guarantees given to bank on behalf of 171.36 139.89 subsidiary (c) Export Bills Discounted (Including factored debts with recourse option of 64.28 7.04 Rs. 50.25 Crores (Previous Year Rs. Nil)) (d) LC outstanding 14.49 27.54 (e) Claims against the Company not acknowledged as debts, but disputed in appeals -Excise Duty 0.22 0.01 -Income Tax 6.15 5.39 2 All pre-operative costs directly attributable to new projects undertaken are accumulated as expenditure during construction period and are capitalised in the year of completion of project. Capital work in progress as at the year end includes the following balance of expenditure during construction period as at the respective year end: 3 Derivative Instruments: The Company uses forward exchange contracts to hedge its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. The following are the outstanding exchange contracts entered into by the Company as at the year end: 4 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements. 5 Disclosure as per Accounting Standard 15 (Revised) - Employee Benefits: The Company has adopted Revised Accounting Standard on Employee Benefits (AS-15) issued by the Institute of Chartered Accountants of India. The following disclosures are made as required under AS-15: a) Defined Contribution Plan: The Company makes contributions towards provident fund and other retirement benefits to a defined contribution retirement benefit plan for qualifying employees. The Company has recognised Rs. 2.47 Crores (Previous year Rs. 2.12 Crores) being Company''s contribution to Provident Fund and ESIC contribution, as an expense and included in Personnel Costs [Refer note 25] in the Statement of Profit and Loss. b) Defined Benefit Plans: General Description of Defined Benefit Plans Gratuity Plan Gratuity is payable to all eligible employees of the Company on superannuation, death and resignation, in terms of the provisions of the "Gratuity Act, 1972" and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on resignation @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy. Leave Plan Under the leave benefit plan, employees are entitled to 30 days of leave for every completed year of service, which they can avail during their service period. The plan is not funded by the Company. Eligible employees can carry forward and encash leave on superannuation, death and resignation as per the Company''s rules. The following tables summarize the funded status and amounts recognized in the Balance Sheet and the components of net benefit/ expense recognized in the Statement of Profit and Loss for the respective plans. 6 Segment Reporting (Accounting Standard 17): a. Primary Segment: Business Segment The Company is engaged in the manufacture of speciality chemicals which is considered as the only business segment. b. Secondary Segment: Geographical Segment 7 Disclosure as per Accounting Standard 18 - Related Parties a. Names of the Related Parties and nature of relationship: Direct Subsidiaries Galaxy Chemicals Inc. Galaxy Holdings (Mauritius) Ltd. Step down Subsidiaries Galaxy Chemicals (Egypt) S.A.E Rainbow Holdings GmbH TRI-K Industries Inc. Maybrook Inc. (Merged with TRI-K Industries Inc. w.e.f 1st April, 2012) Entities over which Key Management Personnel [Whole-time Directors] are able to exercise significant influence: Galaxy Emulsifiers Private Limited Galaxy Finsec Private Limited Osmania Traders Private Limited Galaxy Chemicals [Partnership Firm] Galaxy Estates & Holdings [Partnership Firm] Galaxy Investments [Partnership Firm] Shubh Estates & Properties [Partnership Firm] Galaxy Surfactants Limited - Employees'' Welfare Trust 8. Operating Leases: Assets taken on Operating Lease: The Company has entered into Operating Lease agreements towards use of godowns, offices and residential premises for its employees. Most of the lease agreements provide for cancellation by either party with a notice period of 30 days. Lease rental payments recognised in the Statement of Profit and Loss for the year are Rs. 1.79 Crores (Previous Years Rs. 0.91 Crore). 9. Previous Year Figures: The figures for the previous year have been regrouped wherever necessary to conform to current year''s classification. Mar 31, 2012 A. Corporate Information Galaxy Surfactants Ltd ("the Company") is a Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in manufacturing and marketing surfactants and specialty chemicals for the Personal and Home Care Industry. The Company produces a range of vital cosmetic ingredients including active ingredients, UV protection and functional products. The Company's products cater to some of the largest global brands in the FMCG sector and find applications in skin care, hair care, oral care, body wash, sun care, household cleaners and fabric care segments. The Company has manufacturing facilities located at Taloja, Tarapur (Maharashtra) and Jhagadia (Gujarat) and a depot outlet at Delhi. a. Terms/Rights attached to Equity Shares: The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares & pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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. The distribution will be in proportion to the number of equity shares held by the shareholders. As per the records of the Company, including its register of shareholders/members and other declarations received from the shareholders regarding the beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. b. Secured loans include a term loan from a commercial bank, as per the terms of which, if the Company continues to be in default for a period of 30 days or more from the due date of instalment of principal amounts of the loan or interest thereon, the bank shall have the right to convert the outstanding loan amount into equity shares of the Company at par. 1.1 Term loans from banks are secured by first pari passu charge created / to be created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present & future movable assets, and by second pari passu charge created / to be created on current assets, both present and future. 1.2 Secured loans include a term loan from a commercial bank, as per the terms of which, if the Company continues to be in default for a period of 30 days or more from the due date of instalment of principal amounts of the loan or interest thereon, the bank shall have the right to convert the outstanding loan amount into equity shares of the Company at par. 1.3 Fixed deposits include cumulative and non cumulative fixed deposits from public with maturity periods ranging from 2 years to 3 years and carrying interest from 9% to 12% p.a. Interest on cumulative deposits is paid half yearly on compounding basis on maturity and interest in respect of non cumulative deposits is paid quarterly. 1.4 Sales Tax Deferral denotes interest free Sales Tax Deferral under the Package Schemes of Incentives of 1993 and 1998 formulated by the Government of Maharashtra. The same is repayable after 10 years from the year of deferral in 5 annual installments in case of deferral under the 1993 Scheme and after 12 years from the year of deferral in 6 annual installments in case of deferral under the 1998 Scheme. 2.1 Working Capital Loans from banks are secured by first pari passu charge created / to be created by hypothecation of current assets, both present & future, and second pari passu charge created / to be created by mortgage of immovable properties located at Taloja, Jhagadia and specified properties located at Tarapur and hypothecation of present and future movable assets. 3.1 Others includes: a. acceptances of Rs. 58,00,93,036/- (Previous year Rs.55,42,20,156/-) b. payable to subsidiaries Rs. 80,47,045/- ( Previous year: Rs. Nil) (Refer note 37) 3.2 The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act') based on available information with the Company. The disclosures pursuant to the said MSMED Act are as follows: Particulars 31st March 2012 31st March 2011 Rupees Rupees a) Principal amount due to - - suppliers registered under the MSMED Act and remaining unpaid as at year end b) Interest due to suppliers - - registered under the MSMED Act and remaining unpaid as at year end c) Principal amounts paid to - - suppliers registered under the MSMED Act, beyond the appointed day during the year d) Interest paid, other than - - under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year e) Interest paid, under Section 16 - - of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year f) Interest due and payable - - towards suppliers registered under MSMED Act, for payments already made g) Further interest remaining - - due and payable for earlier years 4.1 Includes Rs. 1,65,00,000/- (Previous Year Rs. 1,46,00,000/-) due to Directors 4.2 There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end. 4.3 Includes due to Micro, Small and Medium Enterprises Rs. 15,39,224/- (Refer note 8.2) 4.4 Includes statutory dues Rs. 3,04,91,011/- (Previous Year Rs. 2,91,81,175/-) 5.1 Deletion in Leasehold Land represents refund received from Gujarat Industrial Development Corporation upon finalisation of actual area of land at Jhagadia allotted to the Company. 5.2 Addition during the year includes (a) borrowing costs amounting to Rs. 4,29,23,346/- capitalised in accordance with with the requirements of Accounting Standard 16 (AS 16), "Borrowing Costs" and (b) pre-operative expenditure amounting to Rs. 3,13,18,896/- incurred during construction period for Jhagadia project. (Refer note 31) 2011-12 2010-11 Rupees Rupees 6 Contingent Liabilities and Claims not provided for: (a) Counter Guarantees given to Banks 7,48,07,012 4,38,10,000 (b) Corporate Guarantee given to bank on behalf of 139,89,25,000 61,08,83,000 subsidiary (c) Export Bills Discounted 7,04,40,765 5,50,52,141 (d) Claims against the Company not acknowledged as debts, but disputed in appeals -Excise Duty 1,17,516 1,17,516 -Income Tax 5,39,09,224 1,19,17,345 7 All pre-operative costs directly attributable to new projects undertaken are accumulated as expenditure during construction period and are capitalised in the year of completion of project. Capital work in progress as at the year end includes the following balance of expenditure during construction period as at the respective year end: 8. Derivative Instruments: The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. The following are the outstanding forward exchange contracts entered into by the Company as at the year end: 9 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements. 10 Disclosure as per Accounting Standard 15 (Revised) - Employee Benefits i. The Company has recognised Rs. 1,79,40,011/- (Previous year Rs. 1,50,59,050/-), being Company's contribution to Provident Fund, as an expense and included in Personnel Costs [Refer note 25] in the Statement of Profit and Loss. ii. Defined Benefit Plans General Description of Defined Benefit Plans Gratuity Plan Gratuity is payable to all eligible employees of the Company on superannuation, death and resignation, in terms of the provisions of the "Gratuity Act, 1972" and employment contracts entered into by the Company. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy. Leave Plan Under the leave salary benefit plan, employees are entitled to 30 days of leave for every completed year of service, which they can avail during their service period. The plan is not funded by the Company. Eligible employees can carry forward and encash leave on superannuation, death and resignation as per the Company's rules. The following tables summarize the funded status and amounts recognized in the balance sheet and the components of net benefit/ expense recognized in the statement of profit and loss for the respective plans. 11 Segment Reporting (Accounting Standard 17) a. Primary Segment : Business Segment The Company is engaged in the manufacture of specialty chemicals which is considered as the only business segment. b. Secondary Segment : Geographical Segment 12 Related Parties Disclosures: a) Names of the Related Parties and nature of relationship: Direct Subsidiaries: Galaxy Chemicals Inc. Galaxy Holdings (Mauritius) Ltd. Step down Subsidiaries Galaxy Chemicals (Egypt) S.A.E Rainbow Holdings GmbH TRI-K Industries Inc. Maybrook Inc. Key management personnel [Whole-time Directors] and their relatives: Key Management Personnel Relative of Key Management Personnel [Whole-time Directors] Mr. U. Shekhar Mrs. Lakshmy Shekhar, Wife Mr. Karthik Shekhar, Son Ms. Nandini Shekhar, Daughter Mr. S. R. Shanbhag Mrs. Vandana Shanbhag, Wife Ms. Sneha Shanbhag, Daughter Mr. Pranav Shanbhag, Son Mr. G. Ramakrishnan Mrs. Jayashree Ramakrishnan, Wife Mr. Amit Ramakrishnan, Son Mr. Akaash Ramakrishnan, Son Mr. U. K. Kamat Mrs. Dhanvanti Kamat, Wife Mr. Paresh Kamat, Son Ms. Mallika Kamat, Daughter Entities over which key management personnel [whole-time directors] are able to exercise significant influence: Galaxy Emulsifiers Private Limited Galaxy Finsec Private Limited Osmania Traders Private Limited Galaxy Chemicals [Partnership Firm] Galaxy Estates & Holdings [Partnership Firm] Galaxy Investments [Partnership Firm] Shubh Estates & Properties [Partnership Firm] Galaxy Surfactants Limited - Employees' Welfare Trust 13 Operating Leases: a) Assets taken on operating lease The Company has entered into Operating Lease agreements towards use of godowns, offices and residential premises for its employees. Most of the lease agreements provide for cancellation by either party with a notice period of 30 days. Lease rental payments recognised in the Statement of Profit and Loss for the year are Rs. 91,15,444/- (Previous Years Rs. 33,39,145/-). b) Assets given on operating lease The Company has operating lease agreements in respect of residential premises. These agreements provide for a cancellation by either party with a notice period of 30 days. Lease rental incomes recognised in the Statement of Profit and Loss for the year are Rs. NIL (Previous Year Rs. 54,000/-). 14. Presentation and Disclosures in Financial Statements During the year ended 31st March 2012, the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year. Mar 31, 2010 1. Secured Loans. a) The term loans amounting to Rs 94,76,10,000/- (Previous Year Rs.47,85,54,096/-) are secured by a first pari passu charge on specified assets and a second pari passu charge on inventories and book debts of the Company. b) The cash credit and working capital demand loans from banks amounting to Rs. 37,37,17,034/- (Previous Year Rs.62,59,58,340/-) are secured by a first pari passu charge on inventories and book debts and a second charge on the specified assets of the Company. 2. Contingent Liabilities & Claims not provided for : 2009-2010 2008-2009 Rupees Rupees (a) Counter Guarantees given to Banks 1,62,50,000 1,50,00,000 (b) Corporate Guarantee given to bank on behalf of subsidiary. 2,24,45,000 - (c) Claims against the Company not acknowledged as debts, but disputed in appeals -Excise Duty 1,17,516 1,17,516 -Income Tax - 4,05,16,928 Notes: The installed capacities are based on existing product-mix and are as per the certificate given by a Director on which the Auditors have relied, being a technical matter. #Includes(i) 3403 MT (Previous Year 3109 MT) used for captive consumption (ii) 196 MT (Previous Year 216 MT) processed from third parties. ## Includes 47 MT used for captive consumption. (Previous Year: 38 MT) 3. Excise Duty: The Company has made a provision for excise duty of Rs. 76,65,118/-(Previous Year Rs. 71,96,274/-) on stocks lying in bond at the year end and the same is also included in the valuation of inventories. This method of accounting has no effect on the profit for the year. 4. Micro and Small Scale Business Entities: There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This Information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. 5. There are no amounts due and outstanding in respect of unpaid dividend, unpaid matured deposits & interest accrued thereon to be credited to Investors Education & Protection Fund. 6. Disclosure as per Accounting Standard 15 (Revised) - Employee Benefits: i. The Company has recognised Rs.1,20,94,582/- (Previous year Rs 93,90,136/-), being Companys contribution to Government Provident Fund, as an expense and included in Personnel Costs [Schedule-Q] in the Profit and Loss Account. ii. Defined Benefit Plans General Description of Defined Benefit Plans Gratuity Plan Gratuity is payable to all eligible employees of the Company on superannuation, death and resignation, in terms of the provisions of the Payment of Gratuity Act, 1972 and employment contracts entered into by the Company. Leave Plan Eligible employees can carry forward and encash leave on superannuation, death and resignation as per Companys rules. 15. Segment Reporting (Accounting Standard 17): a. Primary Segment: Business Segment The Company is engaged in the manufacture of speciality chemicals which is considered as the only business segment. 7. Related Parties Disclosures: a] Names of the Related Parties and nature of relationship: Direct Subsidiaries: Galaxy Chemicals Inc. Galaxy Holdings (Mauritius) Ltd. Step down Subsidiaries Galaxy Chemicals (Egypt) S.A.E (w.e.f. 14th July, 2009) Rainbow Holdings GmbH (w.e.f. 19th June, 2009) Tri-K Industries Inc. (w.e.f. 1st July, 2009) Maybrook Inc. (w.e.f. 1st July, 2009) OTC GmbH (from 24th June, 2009 to 25* March, 2010) Key management personnel [Whole-time Directors] and their relatives: Key Management Personnel Relative of Key Management Personnel [Whole-time Directors] Mr. U. Shekhar Mrs. Lakshmy Shekhar, Wife Mr. Karthik Shekhar, Son Ms. Nandini Shekhar, Daughter Mr. S. R. Shanbhag Mrs. Vandana Shanbhag, Wife Ms. Sneha Shanbhag, Daughter Mr. Pranav Shanbhag, Son Mr. G. Ramakrishnan Mrs. Jayashree Ramakrishnan, Wife Mr. Amit Ramakrishnan, Son Mr. Akaash Ramakrishnan, Son Mr. U. K. Kamat Mrs. Dhanvanti Kamat, Wife Mr. Paresh Kamat, Son Ms. Mallika Kamat, Daughter Entities over which key management personnel [whole-time directors] are able to exercise significant influence: Galaxy Emulsifiers Private Limited Galaxy Finsec Private Limited Osmania Traders Private Limited Galaxy Chemicals [Partnership Firm] Galaxy Estates & Holdings [Partnership Firm] Galaxy Investments [Partnership Firm] Shubh Estates & Properties [Partnership Firm] Galaxy Surfactants Limited - Employees Welfare Trust 8. Operating Leases: a)Assets taken operating lease: The Company has operating lease agreements, primarily for leasing office space and residential premises for its employees. Most of the lease agreements provide for cancellation by either party with a notice period of 30 days. Lease payments recognised in the Profit & Loss Account for the year are Rs. 29,41,522/- (Previous Year Rs.22,02,320/-). b) Assets given on operating lease: The Company has operating lease agreements in respect of residential premises. These agreements provide for a cancellation by either party with a notice period of 30 days. Lease Rental Incomes recognised in the Profit & Loss Account for the year are Rs. 1,91,250/- (Previous Year Rs.1,81,250/-). 9. During the year ended 31 st March, 2009, the Company exercised the option provided by newly inserted paragraph 46 in AS-11, The Effect of Changes in Foreign Exchange Rates. Accordingly, in respect of accounting periods commencing on or after 1 st April, 2007, exchange difference in respect of long term foreign currency liability to the extent relatable to acquisition of depreciable capital assets was adjusted to the cost of the assets and the balance exchange difference in respect of long term foreign currency monetary items was accumulated in Foreign Currency Monetary Items Translation Difference Account. The amount adjusted on this account to the cost of fixed assets is being depreciated over the balance life of the assets and the amount in Foreign Currency Monetary Items Translation Difference Account is being amortised over the balance period of the long term foreign currency liability; but not beyond 31 st March 2011. During the year, the Company accumulated Rs. 18,20,000/- in respect of foreign exchange fluctuations (gain) in Foreign Currency Monetary Items Translation Difference Account and amortised Rs. 48,750/- out of the said account and the balance is carried forward to the next year. 10. During the year, the Company, through its step-down subsidiary, entered into a joint venture, viz., OTC GmbH, Germany [OTC] with a JV partner from Germany. In the course of the business, the Company entered into agreements with OTC for acquisition of technology for a speciality product and purchase of customised machinery to manufacture the same. Under these agreements, advances aggregating to Euro 6,00,000 (Equivalent to Rs. 407.55 lakhs) were paid to OTC. As there was inability on the part of OTC to demonstrate the technology for manufacture of the product as well as to deliver the machinery within the stipulated time lines, the Company was forced to cancel the contracts and ask for refund of the advances made. OTC, due to its substantial operational losses was not in a position to refund the advances and hence the same had to be written off to Profit & Loss Account as not recoverable. OTC ceased to be a step down subsidiary of the Company with effect from March 25, 2010. 11. Previous years figures are regrouped and rearranged wherever necessary, to conform to this years classification. 12. Additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956. Note : Classification of products/services under ITC code being of a technical nature is not verified by the Auditors. Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article IFSC Code Currency Select Bank Select State Select City Select Branch From INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc To INR - Indian Rupee USD - United States Dollar EUR - Euro GBP - British Pound Sterling AED - United Arab Emirates Dirham SAR - Saudi Riyal AUD - Australian Dollar OMR - Omani Rial MYR - Malaysian Ringgit CAD - Canadian Dollar CHF - Swiss Franc ZAR - South African Rand SGD - Singapore Dollar JPY - Japanese Yen BHD - Bahraini Dinar KWD - Kuwaiti Dinar QAR - Qatari Riyal BMD - Bermudian Dollar ARS - Argentine Peso AWG - Aruban Florin BAM - Bosnia and Herzegovina convertible mark BBD - Barbadian Dollar BDT - Bangladeshi Taka BGN - Bulgarian Lev BOB - Bolivian Boliviano BRL - Brazilian Real BSD - Bahamian Dollar BWP - Botswana Pula CLP - Chilean Peso CNY - Chinese Yuan COP - Colombian Peso CZK - Czech Koruna DKK - Danish Krone DOP - Dominican Peso EGP - Egyptian Pound FJD - Fijian Dollar GHS - Ghana Cedi GMD - Gambian Dalasi GTQ - Guatemalan Quetzal HKD - Hong Kong Dollar HRK - Croatian Kuna HUF - Hungarian Forint IDR - Indonesian Rupiah ILS - Israeli Sheqel IRR - Iranian Rial ISK - Icelandic Krona JMD - Jamaican Dollar JOD - Jordanian Dinar KES - Kenyan Shilling KHR - Cambodian Riel KRW - South Korean Won LAK - Lao Kip LBP - Lebanese Pound LKR - Sri Lankan Rupee MAD - Moroccan Dirham MDL - Moldovan Leu MGA - Malagasy Ariary MKD - Macedonian Denar MUR - Mauritian Rupee MVR - Maldivian Rufiyaa MXN - Mexican Peso NAD - Namibian Dollar NGN - Nigerian Naira NOK - Norwegian Krone NPR - Nepalese Rupee NZD - New Zealand Dollar PAB - Panamanian Balboa PEN - Peruvian Sol PHP - Philippine Peso PKR - Pakistani Rupee PLN - Polish Zloty PYG - Paraguayan Guaraní RON - Romanian Leu RSD - Serbian Dinar RUB - Russian Rouble SCR - Seychellois Rupee SEK - Swedish Krona SYP - Syrian Pound THB - Thai Baht TND - Tunisian Dinar TRY - Turkish Lira TTD - Trinidad and Tobago Dollar TWD - Taiwanese Dollar UAH - Ukraine Hryvnia UGX - Ugandan Shilling UYU - Uruguayan Peso VES - Venezuelan Bolívar VND - Vietnamese Dong XAF - Central African Franc XCD - East Caribbean Dollar XOF - West African Franc XPF - CFP Franc 1 USD = 89.577 (USD to INR) 1 EUR = 104.886 (EUR to INR) 1 GBP = 119.845 (GBP to INR) More Period 7-14 Days 15-30 Days 31-45 Days 46-90 Days 4-6 Months 7-12 Months 1-2 Years 2-5 Years 5-10 Years >10 Years More Information on Galaxy Surfactants Ltd. Galaxy Surfactants Ltd. Tools Bulk Deals Galaxy Surfactants Ltd. Company Details Company Profile Company History Management Team Capital Structure Product Mix Banker/Auditor/Registrar Company History BSE Price History NSE Price History Galaxy Surfactants Ltd. Key Financial Ratios Ratios Galaxy Surfactants Ltd. Results Quarterly Results Half Yearly Results Nine Months Results Annual Results Galaxy Surfactants Ltd. Financial Data Audited Results Cash Flow Balance Sheet Galaxy Surfactants Ltd. Reports Accounting Policies Auditors Report Directors Report Notes To Account Galaxy Surfactants Ltd. 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