Notes to Accounts of National Oxygen Ltd.

Mar 31, 2024

The Investments include investment in Equity Shares of other entities. Investment in Pondicherry Agro Foods Pvt. Ltd. are classified in Level 3 of the Fair Value Hierarchy. The Fair Value of this investment have been computed based on the Book Value of the shares as per the most recent Standalone Financial Statements available.

In regard to investment in the remaining companies, the company has entered into agreements where it has purchases equity shares from these companies as part of an electricity supply arrangement. These shares are bought at face value and are to be transferred back at face value at the end of the contract. Since the shares will be transferred at their original purchase cost, there is no gain or loss on them, and their fair value remains in parity with the acquisition cost throughout the duration of the arrangement

b) i) The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

ii) During the year the company issued 2,40,114 Equity Shares on preferential basis of face value Rs. 10/- each at a premium of Rs. 120/-.Pursuant to such fresh issue the company has increased its authorised share capital from Rs. 500 lakhs to Rs. 1,710 lakhs.

e) The Company has neither bought back any shares nor issued any bonus shares during five years immediately preceding the Balance Sheet date._

(i) Capital reserve

Capital Reserve represents amount set aside for specific purpose of capital nature and is not a free reserve available for distribution.

(ii) General reserve

Represents accumulated profits set apart by way of transfer from current year Profits or/and Retained Earnings. General reserve is free reserve available for distribution as recommended by Board in accordance with requirements of the Companies Act, 2013.

(iii) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(iv) Retained Earnings

Retained Earnings represents the accumulated available profit / (Loss) of the Company including the amounts carried forward from earlier years . These reserve are free reserves which can be utilised for any purpose as may be required.

(v) Other Comprehensive Income

Other Comprehensive Income is created in compliance with Ind AS notified under the Companies (Indian Accounting __Standard) Rules, 2015, as amended.__

* During the year the company redeemed 3,09,072 of Rs. 100.3 each preference shares at par amounting to Rs. 310 Lakhs (a) Nature of security for secured borrowings are given below:

(i) The Term Loan 0f Rs. 1100 Lakhs from Bank is secured by first and exclusive Equitable Mortgage of Freehold Land 8 Building situated at Trichy and Puducherry and Leasehold land and building situated at Erode, and further secured by way of second charge on all existing and future receivables, current assets, inventories and moveable assets of the Company , present and future, and guaranteed by the Chairman and the Managing Director of the Company.

The Term Loan is repayable in 96 equated monthly instalments of Rs. 1100 Lakhs each and the rate of interest is floating in the range of 7.5% to 8.08% p.a.

(ii) The Working Capital Term Loan (WCTL) under Guaranteed Emergency Credit Line (GECL) is secured by way of extension of charge on entire present and future current assets of the Company and second charge on Fixed Assets of the Company and guaranteed by the Chairman and Managing Director of the Company

(iii) The WCTL under ECLGS Scheme is repayable in 28 monthly instalments of Rs.2.46 Crores starting from June 2022 and the rate of interest is @ 9.25% p.a.

(iv) Vehicle Loans availed are secured by hypothecation of the respective vehicles

(a) Nature of security for secured borrowings are given below:

i) Cash Credit Loan from Bank is secured by way of first and exclusive hypothecation charge on all existing and future receivables, current assets, inventories and moveable assets of the Company and second charge on Fixed Assets of the Company and guaranteed by the Chairman and Managing Director of the Company

The information as required under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) has been determined to the extent such parties have been identified on the basis of information received from suppliers regarding their status under the said act as available with the Company.

A) Nature of goods and services

The following is a description of principal activities separated by reportable segments from which the Company generates its revenue

a) The Company is engaged in the manufacturing and trading of Industrial Gases and primarily generates revenue from the sale of I ndustrial Gases and the same is only the reportable segment of the Company.

B) Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical market, major products lines and timing of revenue recognition

36 Financial risk management objectives and policies

The Company’s financial liabilities comprise loans and borrowings, security deposits, and trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade and other receivables, cash and cash equivalents.

The Company is exposed to market risk, interest rate risk, credit risk and liquidity risk. The Company’s management ensures that the Company’s risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. Managing Director, Chief Financial Officer and Business Heads reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk include trade payables, trade receivables, borrowings, etc.

i) Foreign Currency Risk : Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate

ii) Interest rate risk : The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade receivables

Customer credit risk is managed by the respective department subject to Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the company. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date and write off/provision is made. The calculation is based on losses as per historical data.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by Senior Management. Management monitors the Company''s net liquidity position on the basis of expected cash flows.

Maturity profile of Financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

37 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and retaining healthy debt equity ratio.

		As at 31st	As at 31st
		March, 2024	March, 2023
39	Contingent Liabilities and Commitments :	Rs. in Lakhs	Rs. in Lakhs
A.	Contingent Liabilities (a). Claims against the company not acknowledged as debt:
	Excise Duty / Service Tax	31.56	35.42
	Customs Duty	88.24	88.24
	Income Tax	148.52	148.52
	(b). Outstanding Letters of Credit and Bank Guarantees	466.51	41 3.04
B.	Capital Commitments (a). Estimated amount of contracts remaining to be executed on capital account and not provided for	Nil	Nil

40 Segment Reporting

Primary Segment Reporting (by Business Segment):

Segments have been identified in line with the Indian Accounting standard on "Operating Segments" (Ind AS-108), taking into account the organisational structure, risk-return profile of individual business and internal reporting system of the Company. Based on this assessment the company has identified a single reportable primary business segment i.e.., Industrial Gases. Hence no additional disclosures are required to be given other than those already given in these financial statements.

43 Additional Regulatory Information as per the requirements of Revised Schedule III of the Companies Act, 2013

To the best of information of management of the Company, Additional regulatory information required to be given pursuant to Gazette notification for Amendments in Schedule III to Companies Act, 2013 dated 24 March 2021 effective from 01 April 2021 is disclosed wherever applicable. Further, the following disclosures are not applicable to the Company :

i) Disclosure on Revaluation of property, plant and equipment and intangible assets from Registered Valuers is not applicable to company.

ii) No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act,1988 (us of 1988) an rules made thereunder.

iii) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender.

iv) Transactions with Struck off Companies*

During the year, the Company has not entered into any transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

* based on information available as on the date of reporting.

v) The Company does not have any subsidiary, Joint Venture or associate, hence compliance with clause (87) of section 2 and section 186 (1) of the Companies Act, 2013 and Rules made thereunder regarding the number of layers. is not applicable to the company.

vi) The Company has not carried out any scheme of arrangement which is approved by regulatory authorities during the year.

vii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

viii) There are no transactions recorded in books of account reflecting surrender/ disclosure of income in the assessment under Income Tax Act, 1961.

ix) During the year no loans / advances in the nature of Loans have been given to Promoters, Directors, KMP and Related Parties.

x) In the opinion of the Management, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xi) In the opinion of the Management, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entity ("funding parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xii) Charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period are NIL.

44 The Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31 March 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendments Rules, 2023, applicable from 1 April 2023.

47 The previous figure has been reclassified- rearranged - regrouped wherever necessary

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Mar 31, 2015

A. The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

B. The Board of Directors of the Company have not recommended any dividend for the year ended 31st March, 2015 and for the corresponding previous year.

(a) Nature of security for secured borrowings are given below:

Term Loans and Overdraft from Bank against Tangible Collateral Security (OD TCS) are Secured by Equitable Mortgage of Leasehold Land & Building and hypothecation of the assets acquired for the new Project and further secured by way of first charge on the block of other movable Assets and future receivables of the company, present and future, and guaranteed by the Managing and Joint Managing Director of the Company

(a). Nature of security for secured borrowings are given below:

i) Cash Credit Loan from Bank is secured by hypothecation of Finished Goods, Raw Materials, Work in Process, Stores & Spares and Book Debts of the Company and second charge on Fixed Assets of the Company and guaranteed by the Managing Director and Joint Managing Director of the Company

ii) Loan against Fixed Deposits are secured by way of Lien on the respective Fixed Deposits

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Mar 31, 2014

Nature of Operations:

National Oxygen Limited was incorporated on 23rd December 1974 and is engaged in manufacturing of Industrial Gases and Wind Energy generation

Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the accounting principles generally accepted in India, including mandatory Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) under the historical cost convention and on an accrual basis. The accounting policies, in all material respects, have been consistently applied by the Company and are consistent with those used in the previous year .

All Assets and Liabilities have been classified as current or non current as per the company''s normal operating cycle and other criteria specified in the Revised Schedule VI to the Companies Act, 1956. The company has presently determined 12 months as the normal Operating cycle for the purpose of classification of current and non current Assets and Liabilities.

As at

1 Contingent Liabilities and Commitments Year ended

A. Contingent Liabilities 31/03/2014 31/03/2013

(a) Claims against the company not acknowledged as debt:

Excise Duty / Service Tax 5,903,781 5,903,781

Customs Duty 8,823,578 8,823,578

(b) Outstanding Letters of Credit and Bank Guarantees 25,678,576 19,322,154

B. Commitments

(a). Estimated amount of contracts remaining to be executed on capital account and not provided for - 112,982,500

2 Segment Reporting

A. Primary Segment Reporting (by Business Segment):

(a).Segments have been identified in line with the Accounting standard on Segment Reporting (AS-17), taking into account the organisational structure, risk return profile of individual business and internal reporting system of the Company. Details of the businesses included in each of the segments are as under:

Industrial Gases - Manufacture of Industrial Gases

Windmill - Generation of Windmill energy.

3 The company has not been informed by any supplier of being covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors, if any, and no disclosures are made in these accounts.

4 Related Party Disclosures:

A. Disclosure on Related Parties as required by AS-18 "Related Party Disclosures" are given below:

a) Key Management Personnel of the Company :-

i) Shri. G.N. Saraf Managing Director

ii) Shri. Rajesh Kumar Saraf Joint Managing Director

iii) Smt. Veenadevi Saraf

b) Enterprises over which certain Key Management Personnel (K.M.P) exercise significant influence :-

i) Pondicherry Agro Foods Pvt. Ltd. (PAF)

ii) ECA Gases Pvt. Ltd. (ECA)

iii) Approach Marketing Pvt. Ltd. (AMP)

c) Relatives of Key Management Personnel of the Company

5 The company had commissioned its new Plant at Perundurai during the year. The Trial run expenses (net of sales revenue) incurred upto the date of commencement of commercial production has been capitalised by the company .

6 Foreign Currency exposure in respect of Sundry Creditors amounting to Rs.116.94 Lacs (Previous Year Rs.Nil) are not hedged as on the Balance Sheet date.

7 Detail of Sales, Raw Material Consumption, Inventories, etc. under broad heads are given below:

C. Value of Raw Materials and Stores and Spares consumed during the year :

8 The previous year figures have been reclassified/ rearranged / regrouped wherever necessary

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Mar 31, 2013

Nature of Operations:

National Oxygen Limited was incorporated on 23rd December 1974 and is engaged in manufacturing of Industrial Gases and Wind Energy generation.

Basis of Preparation : ,

The financial statements have been prepared to comply in all material respects with the accounting principles generally accepted in India, including mandatory Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) under the historical cost '' convention and on an accrual basis. The accounting policies, in all material respects, have been consistently applied by the Company and are consistent with those used in the previous year.

AH Assets and Liabilities have been classified as current or non current as per the company''s normal operating cycle and other criteria specified in the Revised Schedule VI to the Companies Act, 1956. The company has presently determined 12 months as the normal Operating cycle for. the purpose of classification of current and non current Assets and Liabilities.

1 Disclosure required by Accounting Standard (AS) 15 (Revised) on "Employee Benefits": The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions ofThe Payment of Gratuity Act, 1972.

As at

2 Contingent Liabilities and Commitments Year ended

A. Contingent Liabilities 31/03/2013 31/03/2012

(a). Claims against the company not acknowledged as debt:

Excise Duty / Service Tax 5,903,781 5,903,781

Customs Duty 8,823,578 8,823,578

Others (specify nature) 72,100

(b) Outstanding Letters of Credit and Bank Guarantees 19,322,154 26,011,183

B. Commitments

(a). Estimated amount of contracts remaining to be executed on capital account and not provided for - 112,982,500 35 Segment Reporting

A. Primary Segment Reporting (by Business Segment):

(a).Segments have been identified in line with the Accounting standard on Segment Reporting (AS-17), taking into account the organisational structure, risk-return profile of individual business and internal reporting system of the Company. Details of the businesses included in each of the segments are as under:

Industrial Gases - Manufacture of Industrial Gases

Windmill - Generation of Windmill energy.

3 The company has not been informed by any supplier of being covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest rovision/payments have been made by the Company to such creditors, if any, and no disclosures are made in these accounts.

4 Related Party Disclosures:

A. .Disclosure on Related Parties as required by AS-18 "Related Party Disclosures" are given below:

a) Key Management Personnel of the Company :-

i) Shri. G.N. Saraf Managing Director

li) Shri. Rajesh Kumar Saraf Joint Managing Director

iii) Smt. Veenadevi Saraf

b) Enterprises over which certain Key Management Personnel (K.M.P) exercise significant influence :-

i) Pondicherry Agro Foods Pvt. Ltd. (PAF) ii) East Coast Acetylene Pvt. Ltd. (ECA)

c) Relatives of Key Management Personnel of the Company

5 Foreign currency exposure in respect of Sundiy Creditors amounting to Rs. 116.94 Lacs (Previous Year Rs. Nil) are not hedged as on the Balance Sheet date..

6 The previous figure has been reclassified / rearranged / regrouped wherever necessary

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Mar 31, 2012

(a) Nature of security for secured borrowings are given below: .

Term Loans are Secured by Equitable Mortgage of Land & Building and hypothecation of the assets acquired for the new Project and further secured by way of first charge on the block of other Assets of the company, present and future, and guaranteed by the Managing . and Joint Managing Director of the Company.

Vehicle Loans are secured by hypothecation of the specific Vehicles.

(a) Nature of security for secured borrowings are given below:

Cash Credit Loans from Bank are Secured by hypothecation of Finished Goods, Raw Materials, Work in Process, Stores & Spares and Book Debts of the Company and second charge on Fixed Assets of the Company and guaranteed by the Managing and Joint Managing Director of the Company

1 Disclosure required by Accounting Standard (AS) 15 (Revised) on "Employee Benefits":

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions . of The Payment of Gratuity Act, 1972.

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

* The Management has relied on the overall actuarial valuation conducted by the actuary

2 Contingent Liabilities and Commitments Year ended

A. Contingent Liabilities 31/03/2012 31/03/2011

(a)Claims against the company not acknowledged as debt:

Excise Duty / Service Tax 5,903,781 5,903,781

Customs Duty 8,823,578 8,823,578

Others (specify nature) 72,100 72,100

(b) Outstanding Letters of Credit cind Bank Guarantees 26,011,183 13,283,063

B. Commitments

(a). Estimated amount of contracts remaining to be executed on capital account and not provided for 112,982,500

3 Segment Reporting *

A. Primary Segment Reporting (by Business Segment):

(a). Segments have been identified in line with the Accounting standard on Segment Reporting (AS-17), taking into account the organisational structure, risk-return profile of individual business and internal reporting system of the Company. Details of the ' businesses included in each of the segments are as under:

Industrial Gases - Manufacture of Industrial Gases

Windmill - Generation of Windmill energy.

4 The company has not been informed by any supplier of being covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors, if any, and no disclosures are made in these accounts.

5 Related Party Disclosures:

A. Disclosure on Related Parties as required by AS-18 "Related Party Disclosures" are given below: '

a) Key Management Personnel of the Company

i) Shri. G.N. Saraf Managing Director

li) Shri. Rajesh Kumar Saraf Joint Managing Director

iii) Smt. Veenadevi Saraf

b) Enterprises over which certain Key Management Personnel (K.M.P) exercise significant influence :-

i) Pondicherry Agro Foods Pvt. Ltd. (PAF)

ii) East Coast Acetylene Pvt. Ltd. (ECA)

c) Relatives of .Key Management Personnel of the Company

6 For the year ended 31st March; 2012, the Board of Directors of the Company have recommended interim dividend of Rs. Re.1 per share (Previous year Rs. Re.1 per share) to equity shareholders aggregating to Rs.31,16,550 (Previous year 31,16,550). Together with the Corporate Dividend Distribution Tax of Rs.505582 (Previous year 505582 ), the total payout will be Rs. Rs.3622132 (Previous year Rs.3622132) .

7 Additional information pursuant to paragraphs 5 (viii) of Part II of Schedule VI to the Companies Act, 1956 are follows:

8 The previous figure has been reclassified/ rearranged / regrouped in compliance of Revised Schedule VI to correspond with current year figures

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Mar 31, 2010

1 Revision of Financial Statements:

The Board of Directors, at its meeting held on 30th July 2010 have recommended a Dividend of 10% for the F.Y. 2009-10 which has been incorporated in these revised accounts together with the Dividend tax thereon . Except for this change, no other changes have been made to the Original Financial statements approved by the Board of Directors at its meeting held on 28th May 2010.

2 Contingent Liabilities not provided for:

i) Outstanding Bank Guarantees -Rs. 1,23,66,709/- (Previous Year-Rs.34,62,101/-).

ii) Demands raised by Central Excise, Customs .Sales Tax & other Departments to the tune of Rs.1,90,46,901/- (Previous Year Rs.2,53,37,466/-) which are being contested by the company. Advance Paid Rs.2,72,250/-( Previous Year Rs.70,21,972/-)

3 RELATED PARTY DISCLOSURES :

Disclosure on Related Parties as required by AS-18 "Related Party Disclosures" are given below:

a) Key Management Personnel of the Company :-

i) Shri. G.N. Saraf - Managing Director

ii) Shri. Rajesh Kumar Saraf - Joint Managing Director iii) Smt. Veenadevi Saraf

b) Enterprises over which certain Key Management Personnel (K.M.P) exercise significant influence :-

i) Pondicherry Agro Foods Pvt. Ltd.

ii) East Coast Acetylene Pvt. Ltd.

c) Relatives of Key Management Personnel of the Company :-

The particulars given above have been identified on the basis of information available with the company.

4. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972.

(i) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. * The Management has relied on the overall actuarial valuation conducted by the actuary.

5 The company has not been informed by any supplier of being covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors, if any, and no disclosures are made in these accounts.

6 Segment Reporting

a) Primary segment reporting (by Business Segment)

1 Segment have been identified in line with the Accounting standard on Segment Reporting (AS-17), taking into account the organisational structure, risk-return profile of individual business and internal reporting system of the Company. Details of the businesses included in each of the segments are as under:

Industrial Gases - Manufacture of Industrial Gases

Windmill - Generation of Windmill Energy.

Note: All Income, Revenue, Assets and Liabilities pertain to a single geographical segment within India. Hence no separate Geographical segment disclosures are required.

7. Previous years figures have been regrouped /rearranged wherever found necessary.